[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1214 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1214

 To help children by reforming the Nation's welfare system to promote 
              work, marriage, and personal responsibility.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 1995

Mr. Archer (for himself, Mr. Goodling, and Mr. Roberts) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
     and in addition to the Committees on Economic and Educational 
Opportunities, Agriculture, Commerce, the Judiciary, National Security, 
 and Government Reform and Oversight, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To help children by reforming the Nation's welfare system to promote 
              work, marriage, and personal responsibility.

    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 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. Block grants to States.
Sec. 102. Report on data processing.
Sec. 103. Transfers.
Sec. 104. Conforming amendments to the Social Security Act.
Sec. 105. Conforming amendments to other laws.
Sec. 106. Continued application of current standards under medicaid 
                            program.
Sec. 107. Effective date.
             TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM

Sec. 201. Establishment of program.
Sec. 202. Conforming amendments.
Sec. 203. Continued application of current standards under medicaid 
                            program.
Sec. 204. Effective date.
  TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE

                  Subtitle A--Child Care Block Grants

Sec. 301. Amendments to the Child Care and Development Block Grant Act 
                            of 1990.
Sec. 302. Repeal of child care assistance authorized by Acts other than 
                            the Social Security Act.
       Subtitle B--Family and School-Based Nutrition Block Grants

            Chapter 1--Family Nutrition Block Grant Program

Sec. 321. Amendment to Child Nutrition Act of 1966.
         Chapter 2--School-based Nutrition Block Grant Program

Sec. 341. Amendment to National School Lunch Act.
                  Chapter 3--Miscellaneous Provisions

Sec. 361. Repealers.
         Subtitle C--Other Repealers and Conforming Amendments

Sec. 371. Amendments to laws relating to child protection block grant.
                     Subtitle D--Related Provisions

Sec. 381. Requirement that data relating to the incidence of poverty in 
                            the United States be published at least 
                            every 2 years.
Sec. 382. Data on program participation and outcomes.
     Subtitle E--General Effective Date; Preservation of Actions, 
                        Obligations, and Rights

Sec. 391. Effective date.
Sec. 392. Application of amendments and repealers.
      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 Programs

Sec. 401. Ineligibility of illegal aliens for certain public benefits 
                            programs.
Sec. 402. Ineligibility of nonimmigrants for certain public benefits 
                            programs.
Sec. 403. Limited eligibility of immigrants for 5 specified Federal 
                            public benefits programs.
Sec. 404. Notification.
  Subtitle B--Eligibility for State and Local Public Benefits Programs

Sec. 411. Ineligibility of illegal aliens for State and local public 
                            benefits programs.
Sec. 412. Ineligibility of nonimmigrants for State and local public 
                            benefits programs.
Sec. 413. State authority to limit eligibility of immigrants for State 
                            and local means-tested public benefits 
                            programs.
      Subtitle C--Attribution of Income and Affidavits of Support

Sec. 421. Attribution of sponsor's income and resources to family-
                            sponsored immigrants.
Sec. 422. Requirements for sponsor's affidavit of support.
                     Subtitle D--General Provisions

Sec. 431. Definitions.
Sec. 432. Construction.
                   Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.
         TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION

Sec. 501. Short title.
             Subtitle A--Commodity Distribution Provisions

Sec. 511. Short title.
Sec. 512. Availability of commodities.
Sec. 513. State, local and private supplementation of commodities.
Sec. 514. State plan.
Sec. 515. Allocation of commodities to States.
Sec. 516. Priority system for State distribution of commodities.
Sec. 517. Initial processing costs.
Sec. 518. Assurances; anticipated use.
Sec. 519. Authorization of appropriations.
Sec. 520. Commodity supplemental food program.
Sec. 521. Commodities not income.
Sec. 522. Prohibition against certain State charges.
Sec. 523. Definitions.
Sec. 524. Regulations.
Sec. 525. Finality of determinations.
Sec. 526. Sale of commodities prohibited.
Sec. 527. Settlement and adjustment of claims.
Sec. 528. Repealers; amendments.
      Subtitle B--Simplification and Reform of Food Stamp Program

Sec. 531. Short title.
Chapter 1--Simplified Food Stamp Program and State Assistance for Needy 
                                Families

Sec. 541. Establishment of simplified food stamp program.
Sec. 542. Simplified food stamp program.
Sec. 543. Conforming amendments.
                     Chapter 2--Food Stamp Program

Sec. 551. Thrifty food plan.
Sec. 552. Income deductions and energy assistance.
Sec. 553. Vehicle allowance.
Sec. 554. Work requirements.
Sec. 555. Comparable treatment of disqualified individuals.
Sec. 556. Encourage electronic benefit transfer systems.
Sec. 557. Value of minimum allotment.
Sec. 558. Initial month benefit determination.
Sec. 559. Improving food stamp program management.
Sec. 560. Work supplementation or support program.
Sec. 561. Obligations and allotments.
                      Chapter 3--Program Integrity

Sec. 571. Authority to establish authorization periods.
Sec. 572. Condition precedent for approval of retail food stores and 
                            wholesale food concerns.
Sec. 573. Waiting period for retailers that are denied approval to 
                            accept coupons.
Sec. 574. Disqualification of retail food stores and wholesale food 
                            concerns.
Sec. 575. Authority to suspend stores violating program requirements 
                            pending administrative and judicial review.
Sec. 576. Criminal forfeiture.
Sec. 577. Expanded definition of ``coupon''.
Sec. 578. Doubled penalties for violating food stamp program 
                            requirements.
Sec. 579. Disqualification of convicted individuals.
Sec. 580. Claims collection.
        Subtitle C--Effective Dates and Miscellaneous Provisions

Sec. 591. Effective dates.
Sec. 592. Sense of the congress.
Sec. 593. Deficit reduction.
                 TITLE VI--SUPPLEMENTAL SECURITY INCOME

Sec. 601. Denial of supplemental security income benefits by reason of 
                            disability to drug addicts and alcoholics.
Sec. 602. Supplemental security income benefits for disabled children.
Sec. 603. Examination of mental listings used to determine eligibility 
                            of children for SSI benefits by reason of 
                            disability.
Sec. 604. Limitation on payments to Puerto Rico, the Virgin Islands, 
                            and Guam under programs of aid to the aged, 
                            blind, or disabled.
Sec. 605. Repeal of maintenance of effort requirements applicable to 
                            optional State programs for supplementation 
                            of SSI benefits.
                        TITLE VII--CHILD SUPPORT

Sec. 700. References.
     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 701. State obligation to provide child support enforcement 
                            services.
Sec. 702. Distribution of child support collections.
Sec. 703. Privacy safeguards.
                  Subtitle B--Locate and Case Tracking

Sec. 711. State case registry.
Sec. 712. Collection and disbursement of support payments.
Sec. 713. State directory of new hires.
Sec. 714. Amendments concerning income withholding.
Sec. 715. Locator information from interstate networks.
Sec. 716. Expansion of the Federal Parent Locator Service.
Sec. 717. Collection and use of social security numbers for use in 
                            child support enforcement.
         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 721. Adoption of uniform State laws.
Sec. 722. Improvements to full faith and credit for child support 
                            orders.
Sec. 723. Administrative enforcement in interstate cases.
Sec. 724. Use of forms in interstate enforcement.
Sec. 725. State laws providing expedited procedures.
                  Subtitle D--Paternity Establishment

Sec. 731. State laws concerning paternity establishment.
Sec. 732. Outreach for voluntary paternity establishment.
Sec. 733. Cooperation by applicants for and recipients of temporary 
                            family assistance.
             Subtitle E--Program Administration and Funding

Sec. 741. Federal matching payments.
Sec. 742. Performance-based incentives and penalties.
Sec. 743. Federal and State reviews and audits.
Sec. 744. Required reporting procedures.
Sec. 745. Automated data processing requirements.
Sec. 746. Technical assistance.
Sec. 747. Reports and data collection by the Secretary.
      Subtitle F--Establishment and Modification of Support Orders

Sec. 751. Simplified process for review and adjustment of child support 
                            orders.
Sec. 752. Furnishing consumer reports for certain purposes relating to 
                            child support.
               Subtitle G--Enforcement of Support Orders

Sec. 761. Federal income tax refund offset.
Sec. 762. Authority to collect support from Federal employees.
Sec. 763. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 764. Voiding of fraudulent transfers.
Sec. 765. Sense of the Congress that States should suspend drivers', 
                            business, and occupational licenses of 
                            persons owing past-due child support.
Sec. 766. Work requirement for persons owing past-due child support.
Sec. 767. Definition of support order.
                      Subtitle H--Medical Support

Sec. 771. Technical correction to ERISA definition of medical child 
                            support order.
Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

Sec. 781. Grants to States for access and visitation programs.
                    Subtitle J--Effect of Enactment

Sec. 791. Effective dates.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Scoring.
Sec. 802. Provisions to encourage electronic benefit transfer systems.

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

SEC. 101. BLOCK GRANTS TO STATES.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by striking part A, except sections 403(h) and 417, and 
inserting the following:

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

``SEC. 401. PURPOSE.

    ``The purpose of this part is to increase the flexibility of States 
in operating a program designed to--
            ``(1) provide assistance to needy families so that the 
        children in such families may be cared for in their homes or in 
        the homes of relatives;
            ``(2) end the dependence of needy parents on government 
        benefits by promoting work and marriage; and
            ``(3) discourage out-of-wedlock births.

``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 3-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 written 
        document that outlines how the State intends to do the 
        following:
                    ``(A) Conduct a program designed to--
                            ``(i) provide cash benefits to needy 
                        families with children; and
                            ``(ii) provide parents of children in such 
                        families with work experience, assistance in 
                        finding employment, and other work preparation 
                        activities and support services that the State 
                        considers appropriate to enable such families 
                        to leave the program and become self-
                        sufficient.
                    ``(B) Require at least 1 parent of a child in any 
                family which has received benefits for more than 24 
                months (whether or not consecutive) under the program 
                to engage in work activities (as defined by the State).
                    ``(C) Ensure that parents receiving assistance 
                under the program engage in work activities in 
                accordance with section 404.
                    ``(D) Treat interstate immigrants, if families 
                including such immigrants are to be treated differently 
                than other families.
                    ``(E) Take such reasonable steps as the State deems 
                necessary to restrict the use and disclosure of 
                information about individuals and families receiving 
                benefits under the program.
                    ``(F) Take actions to reduce the incidence of out-
                of-wedlock births, which may include providing 
                unmarried mothers and unmarried fathers with services 
                which will help them--
                            ``(i) avoid subsequent pregnancies; and
                            ``(ii) provide adequate care to their 
                        children.
                    ``(G) Reduce teenage pregnancy, including (at the 
                option of the State) through the provision of 
                education, counseling, and health services to male and 
                female teenagers.
            ``(2) Certification that the state will operate a child 
        support enforcement program.--A certification by the Governor 
        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, in a manner that complies with the 
        requirements of such part.
            ``(3) Certification that the state will operate a child 
        protection program.--A certification by the Governor of the 
        State that, during the fiscal year, the State will operate a 
        child protection program in accordance with part B, which 
        includes a foster care program and an adoption assistance 
        program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a).

``SEC. 403. PAYMENTS TO STATES.

    ``(a) Entitlements.--
            ``(1) Grants for family assistance.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary for each of 
                fiscal years 1996, 1997, 1998, 1999, and 2000 a grant 
                in an amount equal to the State family assistance grant 
                for the fiscal year.
                    ``(B) Grant increased to reward states that reduce 
                out-of-wedlock births.--The amount of the grant payable 
                to a State under subparagraph (A) for fiscal year 1998 
                or any succeeding fiscal year shall be increased by--
                            ``(i) 5 percent if 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; or
                            ``(ii) 10 percent if 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.
            ``(2) Supplemental grants to adjust for population 
        increases.--In addition to any grant under paragraph (1), each 
        eligible State shall be entitled to receive from the Secretary 
        for each of fiscal years 1997, 1998, 1999, and 2000, a grant in 
        an amount equal to the State proportion of $100,000,000.
    ``(b) Definitions.--As used in this section:
            ``(1) State family assistance grant.--
                    ``(A) In general.--The term `State family 
                assistance grant' means, with respect to a fiscal year, 
                the provisional State family assistance grant adjusted 
                in accordance with subparagraph (C).
                    ``(B) Provisional state family assistance grant.--
                The term `provisional State family assistance grant' 
                means--
                            ``(i) the greater of--
                                    ``(I) \1/3\ of the total amount of 
                                obligations to the State under section 
                                403 of this title (as in effect before 
                                October 1, 1995) for fiscal years 1992, 
                                1993, and 1994 (other than with respect 
                                to amounts expended for child care 
                                under subsection (g) or (i) of such 
                                section); or
                                    ``(II) the total amount of 
                                obligations to the State under such 
                                section 403 for fiscal year 1994 (other 
                                than with respect to amounts expended 
                                for child care under subsection (g) or 
                                (i) of such section); multiplied by
                            ``(ii)(I) the total amount of outlays to 
                        all of the States under such section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended for child care under 
                        subsection (g) or (i) of such section); divided 
                        by
                            ``(II) the total amount of obligations to 
                        all of the States under such section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended for child care under 
                        subsection (g) or (i) of such section).
                    ``(C) Proportional adjustment.--The Secretary shall 
                determine the percentage (if any) by which each 
                provisional State family assistance grant must be 
                reduced or increased to ensure that the sum of such 
                grants equals $15,390,296,000, and shall adjust each 
                provisional State family assistance grant by the 
                percentage so determined.
            ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' 
        means, with respect to a State and a fiscal year--
                    ``(A) the sum of--
                            ``(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; and
                            ``(ii) the amount (if any) by which the 
                        number of abortions performed in the State 
                        during the most recent fiscal year for which 
                        such information is available exceeds the 
                        number of abortions performed in the State 
                        during the fiscal year that immediately 
                        precedes such most recent fiscal year; divided 
                        by
                    ``(B) the number of births that occurred in the 
                State during the most recent fiscal year for which such 
                information is available.
            ``(3) State proportion.--The term `State proportion' means, 
        with respect to a fiscal year, the amount that bears the same 
        ratio to the amount specified in subsection (a)(2) as the 
        increase (if any) in the population of the State for the most 
        recent fiscal year for which such information is available over 
        the population of the State for the fiscal year that 
        immediately precedes such most recent fiscal year bears to the 
        total increase in the population of all States which have such 
        an increase in population, as determined by the Secretary using 
        data from the Bureau of the Census.
            ``(4) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(5) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) 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 is reasonably 
        calculated to accomplish the purpose of this part, subject to 
        this part, including to provide noncash assistance to mothers 
        who have not attained 18 years of age and their children and to 
        provide low income households with assistance in meeting home 
        heating and cooling costs.
            ``(2) Authority to treat interstate immigrants under rules 
        of former state.--A State to which a grant is made under this 
        section may apply to a family the rules of the program operated 
        under this part of another State if the family has moved to the 
        State from the other State and has resided in the State for 
        less than 12 months.
            ``(3) Authority to use portion of grant for other 
        purposes.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the amount of the grant made to the State 
                under this section for a fiscal year to carry out a 
                State program pursuant to any or all of the following 
                provisions of law:
                            ``(i) Part B of this title.
                            ``(ii) Title XX of this Act.
                            ``(iii) Any provision of law, enacted into 
                        law during the 104th Congress, under which 
                        grants are made to States for food and 
                        nutrition.
                            ``(iv) The Child Care and Development Block 
                        Grant Act of 1990.
                    ``(B) 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 in 
                subparagraph (A) 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.
            ``(4) Authority to reserve certain amounts for emergency 
        benefits.--
                    ``(A) In general.--A State may reserve amounts paid 
                to the State under this section for any fiscal year for 
                the purpose of providing emergency assistance under the 
                State program operated under this part.
                    ``(B) Authority to use excess reserves for any 
                purpose.--During a fiscal year, a State may use for any 
                purpose deemed appropriate by the State amounts held in 
                reserve under subparagraph (A) to the extent exceeding 
                120 percent of the amount of the grant payable to the 
                State under this section for the fiscal year.
            ``(5) Implementation of electronic benefit transfer 
        system.--A State to which a grant is made under this section 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.
    ``(d) Timing of Payments.--The Secretary shall pay each grant 
payable to a State under this section in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--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 
                otherwise payable to the State under this section for 
                the immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation on amount of penalty.--In carrying 
                out subparagraph (A), the Secretary shall not reduce 
                any quarterly payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 6 months after the end of a 
                fiscal year, submitted the report required by section 
                406 for the fiscal year, the Secretary shall reduce by 
                3 percent the amount of the grant that would (in the 
                absence of this subsection, subsection (a)(1)(B) of 
                this section, and section 404(c)(2)) be payable to the 
                State under subsection (a)(1)(A) for the immediately 
                succeeding 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.
                    ``(C) For 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 by 1 percent the 
                amount of the grant that would (in the absence of this 
                subsection, subsection (a)(1)(B) of this section, and 
                section 404(c)(2)) be payable to the State under 
                subsection (a)(1)(A) for the fiscal year.
    ``(f) Limitation on Federal Authority.--The Secretary may not 
regulate the conduct of States under this part or enforce any provision 
of this part, except to the extent expressly provided in this part.
    ``(g) Federal Rainy Day Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a revolving loan fund which shall 
        be known as the `Federal Rainy Day Fund'.
            ``(2) Deposits into fund.--
                    ``(A) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, $1,000,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the Federal Rainy 
                Day Fund.
                    ``(B) Loan repayments.--The Secretary shall deposit 
                into the fund any principal or interest payment 
                received with respect to a loan made under this 
                subsection.
            ``(3) Availability.--Amounts in the fund are authorized to 
        remain available without fiscal year limitation for the purpose 
        of making loans and receiving payments of principal and 
        interest on such loans, in accordance with this subsection.
            ``(4) Use of fund.--
                    ``(A) Loans to qualified states.--
                            ``(i) In general.--The Secretary shall make 
                        loans from the fund to any qualified State for 
                        a period to maturity of not more than 3 years.
                            ``(ii) Rate of interest.--The Secretary 
                        shall charge and collect interest on any loan 
                        made under clause (i) 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.
                            ``(iii) Maximum loan.--The amount of any 
                        loan made to a State under clause (i) during a 
                        fiscal year shall not exceed the lesser of--
                                    ``(I) 50 percent of the amount of 
                                the grant payable to the State under 
                                this section for the fiscal year; or
                                    ``(II) $100,000,000.
                    ``(B) Qualified state defined.--A State is a 
                qualified State for purposes of subparagraph (A) if the 
                unemployment rate of the State (as determined by the 
                Bureau of Labor Statistics) for the most recent 3-month 
                period for which such information is available is--
                            ``(i) more than 6.5 percent; and
                            ``(ii) at least 110 percent of such rate 
                        for the corresponding 3-month period in either 
                        of the 2 immediately preceding calendar years.

``SEC. 404. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--
            ``(1) Requirement applicable to all families receiving 
        assistance.--
                    ``(A) In general.--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.................................               4  
                1997.................................               4  
                1998.................................               8  
                1999.................................              12  
                2000.................................              17  
                2001.................................              29  
                2002.................................              40  
                2003 or thereafter...................             50.  
                    ``(B) Pro rata reduction of participation rate due 
                to caseload reductions not required by federal law.--
                The minimum participation rate otherwise required by 
                subparagraph (A) for a fiscal year shall be reduced by 
                a percentage equal to the percentage (if any) by which 
                the number of families receiving assistance during the 
                fiscal year under the State program funded under this 
                part is less than the number of families that received 
                aid under the State plan approved under part A of this 
                title (as in effect before October 1, 1995) during the 
                fiscal year immediately preceding such effective date, 
                except to the extent that the Secretary determines that 
                the reduction in the number of families receiving such 
                assistance is required by Federal law.
                    ``(C) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of families 
                                receiving cash assistance under the 
                                State program funded under this part 
                                which include an individual who is 
                                engaged in work activities for the 
                                month; divided by
                                    ``(II) the total number of families 
                                receiving cash assistance under the 
                                State program funded under this part 
                                during the month which include an 
                                individual who has attained 18 years of 
                                age.
                            ``(iii) Engaged.--A recipient is engaged in 
                        work activities for a month in a fiscal year if 
                        the recipient is making progress 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 
subparagraph (A), (B), (C), or (D) of subsection (b)(1) (or, in the 
case of the first 4 weeks for which the recipient is required under 
this section to participate in work activities, an activity described 
in subsection (b)(1)(E)):

                    
                                                            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) Requirement applicable to 2-parent families.--
                    ``(A) In general.--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.......................              50  
                          1998 or thereafter.........             90.  
                    ``(B) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of 2-parent 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part which include at least 1 
                                adult who is engaged in work activities 
                                for the month; divided by
                                    ``(II) the total number of 2-parent 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part during the month.
                            ``(iii) Engaged.--An adult is engaged in 
                        work activities 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 subparagraph (A), (B), (C), or (D) of 
                        subsection (b)(1) (or, in the case of the first 
                        4 weeks for which the recipient is required 
                        under this section to participate in work 
                        activities, an activity described in subsection 
                        (b)(1)(E)).
    ``(b) Definitions.--As used in this section:
            ``(1) Work activities.--The term `work activities' means--
                    ``(A) unsubsidized employment;
                    ``(B) subsidized private sector employment;
                    ``(C) subsidized public sector employment or work 
                experience (including work associated with the 
                refurbishing of publicly assisted housing) only if 
                sufficient private sector employment is not available;
                    ``(D) on-the-job training;
                    ``(E) job search and job readiness assistance;
                    ``(F) 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;
                    ``(G) job skills training directly related to 
                employment; or
                    ``(H) at the option of the State, satisfactory 
                attendance at secondary school, in the case of a 
                recipient who--
                            ``(i) has not completed secondary school; 
                        and
                            ``(ii) is a dependent child, or a head of 
                        household who has not attained 20 years of age.
            ``(2) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
    ``(c) Penalties.--
            ``(1) Against individuals.--
                    ``(A) Applicable to all families.--A State to which 
                a grant is made under section 403 shall ensure that the 
                amount of cash assistance paid under the State program 
                funded under this part to a recipient of assistance 
                under the program who refuses to engage (within the 
                meaning of subsection (a)(1)(C)(iii)) in work 
                activities required under this section shall
                be less than the amount of cash assistance that would 
                otherwise be paid to the recipient under the program, 
                subject to such good cause and other exceptions as the 
                State may establish.
                    ``(B) Applicable to 2-parent families.--A State to 
                which a grant is made under section 403 shall reduce 
                the amount of cash assistance otherwise payable to a 2-
                parent family for a month under the State program 
                funded under this part with respect to an adult in the 
                family who is not engaged (within the meaning of 
                subsection (a)(2)(B)(iii)) in work activities for at 
                least 35 hours per week during the month, pro rata (or 
                more, at the option of the State) with respect to any 
                period during the month for which the adult is not so 
                engaged.
                    ``(C) Limitation on federal authority.--No officer 
                or employee of the Federal Government may regulate the 
                conduct of States under this paragraph or enforce this 
                paragraph against any State.
            ``(2) Against states.--
                    ``(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 subsection (a) 
                for the fiscal year, the Secretary shall reduce by not 
                more than 5 percent the amount of the grant that would 
                (in the absence of this paragraph and subsections 
                (a)(1)(B) and (e) of section 403) be payable to the 
                State under section 403(a)(1)(A) for the immediately 
                succeeding fiscal year.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) based on the degree of noncompliance.
    ``(d) Rule of Interpretation.--This section shall not be construed 
to prohibit a State from offering recipients of assistance under the 
State program funded under this part an opportunity to participate in 
an education or training program, consistent with the requirements of 
this section.
    ``(e) Research.--The Secretary shall conduct research on the costs 
and benefits of State activities under this section.
    ``(f) Evaluation of Innovative Approaches to Employing Recipients 
of Assistance.--The Secretary shall evaluate innovative approaches to 
employing recipients of assistance under State programs funded under 
this part.
    ``(g) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        the States to which grants are paid under section 403 in the 
        order of their success in moving recipients of assistance under 
        the State program funded under this part into long-term private 
        sector jobs.
            ``(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.
    ``(h) Sense of the Congress.--In complying with this section, each 
State that operates a program funded under this part is encouraged to 
assign the highest priority to requiring families that include older 
preschool or school-age children to be engaged in work activities.
    ``(i) 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. 405. PROHIBITIONS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor child.--A 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family, unless 
        the family includes a minor child.
            ``(2) Certain payments not to be disregarded in determining 
        the amount of assistance to be provided to a family.--
                    ``(A) Income security payments.--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 (other than service benefits 
provided through the use of a grant made under part C of such title), 
then the State may not disregard the payment in determining the amount 
of assistance to be provided to the family of which the individual is a 
member under the State program funded under this part.
                    ``(B) Certain support payments.--A State to which a 
                grant is made under section 403 may not disregard an 
                amount distributed to a family under section 
                457(a)(1)(A) in determining the income of the family 
                for purposes of eligibility for assistance under the 
                State program funded under this part.
            ``(3) No assistance for certain aliens.--Notwithstanding 
        subsection (c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance for an individual who is not a citizen or national 
        of the United States, unless--
                    ``(A)(i) the individual is admitted to the United 
                States as a refugee under section 207 of the 
                Immigration and Nationality Act; and
                    ``(ii) 5 years has elapsed since the date the 
                individual arrived in the United States;
                    ``(B) the individual--
                            ``(i) is lawfully admitted to the United 
                        States for permanent residence;
                            ``(ii) has attained 75 years of age; and
                            ``(iii) has resided in the United States 
                        for at least 5 years; or
                    ``(C) the individual is honorably discharged from 
                the Armed Forces of the United States.
            ``(4) No assistance for out-of-wedlock births to minors.--
                    ``(A) General rule.--a State to which a grant is 
                made under section 403 may not use any part of the 
                grant to provide cash benefits for a child born out-of-
                wedlock to an individual who has not attained 18 years 
                of age, or for the individual, until the individual 
                attains such age.
                    ``(B) 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.
            ``(5) No additional assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 may not use any part of the 
                grant to provide cash benefits for a minor child who is 
                born to--
                            ``(i) a recipient of benefits under the 
                        program operated under this part; or
                            ``(ii) a person who received such benefits 
                        at any time during the 10-month period ending 
                        with the birth of the child.
                    ``(B) 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.
            ``(6) No assistance for more than 5 years.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not use any part of the grant to 
                provide cash benefits for the family of an individual 
                who, after attaining 18 years of age, has received 
                benefits under the program operated under this part for 
                60 months (whether or not consecutive) after the 
                effective date of this part, except as provided under 
                subparagraph (B).
                    ``(B) Hardship exception.--
                            ``(i) In general.--The State may exempt a 
                        family from the application of subparagraph (A) 
                        by reason of hardship.
                            ``(ii) Limitation.--The number of families 
                        with respect to which an exemption made by a 
                        State under clause (i) is in effect shall not 
                        exceed 10 percent of the number of families to 
                        which the State is providing assistance under 
                        the program operated under this part.
            ``(7) No assistance for families not cooperating in 
        paternity establishment or child support.--Notwithstanding 
        subsection (c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance to a family that includes an individual whom the 
        agency responsible for administering the State plan approved 
        under part D determines is not cooperating with the State in 
        establishing the paternity of any child of the individual, or 
        in establishing, modifying, or enforcing a support order with 
        respect to such a child.
            ``(8) No assistance for families not assigning support 
        rights to the state.--Notwithstanding subsection (c)(1), a 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family that 
        includes an individual who has not assigned to the State any 
        rights the individual may have (on behalf of the individual or 
        of any other person for whom the individual has applied for or 
        is receiving such assistance) to support from any other person 
        for any period for which the individual receives such 
        assistance.
            ``(9) Withholding of portion of assistance for families 
        which include a child whose paternity is not established.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not fail to--
                            ``(i) withhold assistance under the State 
                        program funded under this part from a family 
                        which includes a child whose paternity is not 
                        established, in an amount equal to $50 or 15 
                        percent of the amount of the amount of the 
                        assistance that would (in the absence of this 
                        paragraph) be provided to the family with 
                        respect to the child, whichever the State 
                        elects; or
                            ``(ii) provide to the family the total 
                        amount of assistance so withheld once the 
                        paternity of the child is established, if the 
                        family is then eligible for such assistance.
            ``(B) 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.
            ``(10) Denial of assistance for 10 years to a person 
        convicted of fraudulently misrepresenting residence to a 
        welfare program.--A State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance to an individual during the 10-year period that 
        begins with the date the individual is convicted in Federal or 
        State court of making a fraudulent statement or representation 
        with respect to the place of residence of the person in order 
        to receive benefits or services under 2 or more programs that 
        are funded under this part.
    ``(b) Minor Child Defined.--As used in subsection (a), the term 
`minor child' means an individual--
            ``(1) who has not attained 18 years of age; or
            ``(2) who--
                    ``(A) has not attained 19 years of age; and
                    ``(B) is a full-time student in a secondary school 
                (or in the equivalent level of vocational or technical 
                training).

``SEC. 406. DATA COLLECTION AND REPORTING.

    ``(a) In General.--Each State to which a grant is made under 
section 403 for a fiscal year shall, not later than 6 months after the 
end of the fiscal year, transmit to the Secretary the following 
aggregate information on families to which assistance was provided 
during the fiscal year under the State program operated under this part 
or an equivalent State program:
            ``(1) The number of adults receiving such assistance.
            ``(2) The number of children receiving such assistance and 
        the average age of the children.
            ``(3) The employment status of such adults, and the average 
        earnings of employed adults receiving such assistance.
            ``(4) The number of 1-parent families in which the parent 
        is a widow or widower, is divorced, is separated, or has never 
        married.
            ``(5) The age, race, and educational attainment of the 
        adults receiving such assistance.
            ``(6) The average assistance provided to the families under 
        the program.
            ``(7) Whether, at the time of application for assistance 
        under the program, the families or any member of the families 
        receives benefits under any of the following:
                    ``(A) Any housing program.
                    ``(B) The food stamp program under the Food Stamp 
                Act of 1977.
                    ``(C) The Head Start programs carried out under the 
                Head Start Act.
                    ``(D) Any job training program.
            ``(8) The number of months, since the most recent 
        application for assistance under the program, for which such 
        assistance has been provided to the families.
            ``(9) The total number of months for which assistance has 
        been provided to the families under the program.
            ``(10) Any other data necessary to indicate whether the 
        State is in compliance with the plan most recently submitted by 
        the State pursuant to section 402.
            ``(11) The components of any program carried out by the 
        State to provide employment and training activities in order to 
        comply with section 404, and the average monthly number of 
        adults in each such component.
            ``(12) The number of part-time job placements and the 
        number of full-time job placements made through the program 
        referred to in paragraph (11), the number of cases with reduced 
        assistance, and the number of cases closed due to employment.
    ``(b) Authority of States to Use Estimates.--A State may comply 
with the requirement to provide precise numerical information described 
in subsection (a) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(c) Report on Use of Federal Funds to Cover Administrative Costs 
and Overhead.--The report required by subsection (a) for a fiscal year 
shall include a statement of the percentage of the funds paid to the 
State under this part for the fiscal year that are used to cover 
administrative costs or overhead.
    ``(d) Report on State Expenditures on Programs for Needy 
Families.--The report required by subsection (a) for a fiscal year 
shall include a statement of the total amount expended by the State 
during the fiscal year on programs for needy families.
    ``(e) Report on Noncustodial Parents Participating in Work 
Activities.--The report required by subsection (a) for a fiscal year 
shall include the number of noncustodial parents in the State who 
participated in work activities (as defined in section 404(b)(1)) 
during the fiscal year.

``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary may conduct research on the effects, 
costs, and benefits of State programs funded under this part.
    ``(b) Development and Evaluation of Innovative Approaches to 
Employing Welfare Recipients.--The Secretary may assist States in 
developing, and shall evaluate, innovative approaches to employing 
recipients of cash assistance under programs funded under this part. In 
performing such evaluations, the Secretary shall, to the maximum extent 
feasible, use random assignment to experimental and control groups.
    ``(c) Studies of Welfare Caseloads.--The Secretary may conduct 
studies of the caseloads of States operating programs funded under this 
part.
    ``(d) 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.

``SEC. 408. 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 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, the Secretary of the Treasury 
shall pay to the Bureau of the Census $10,000,000 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''.

SEC. 102. 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. 103. TRANSFERS.

    (a) Child Support Review Penalties.--
            (1) Transfer of provision.--Section 403 of the Social 
        Security Act, as added by the amendment made by section 101 of 
        this Act, is amended by adding at the end subsection (h) of 
        section 403, as in effect immediately before the effective date 
        of this title.
            (2) Conforming amendment.--Section 403(h)(3) of such Act, 
        as in effect pursuant to paragraph (1) of this subsection, is 
        amended by striking ``, section 402(a)(27),''.
    (b) Assistant Secretary for Family Support.--
            (1) Redesignation of provision.--Section 417 of such Act 
        (42 U.S.C. 617), as in effect immediately before the effective 
        date of this title, is amended by striking the following:

               ``assistant secretary for family support''

    ``Sec. 417.''
                and inserting the following:

``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''.

            (2) Transfer of provision.--Part A of title IV of such Act, 
        as added by the amendment made by section 101 of this Act, is 
        amended by adding at the end the section amended by paragraph 
        (1) of this subsection.
            (3) Conforming amendment.--Section 408 of such Act, as 
        added by paragraph (2) of this subsection is amended by 
        striking ``, part D, and part F'' and inserting ``and part D''.

SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) of the Social Security Act (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) of such Act (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 of such Act (42 U.S.C. 651) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (2) Section 452(a)(10)(C) of such Act (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''; and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''.
            (3) Section 452(a)(10)(F) of such Act (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) of such Act (42 U.S.C. 652(b)) is 
        amended in the last sentence by striking ``plan approved under 
        part A'' and inserting ``program funded under part A''.
            (5) Section 452(d)(3)(B)(i) of such Act (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) of such Act (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved'' and inserting ``assistance is 
        being provided under the State program funded under''.
            (7) Section 452(g)(2)(A) of such Act (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'' and inserting ``assistance was being provided under 
        the State program funded''.
            (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is 
        amended in the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child by 
                reason of the death of a parent'' and inserting ``with 
                respect to whom assistance is being provided under the 
                State program funded under part A''; and
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found'';
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''; and
                    (D) by striking ``administering the plan under part 
                E determines (as provided in section 454(4)(B))'' and 
                inserting ``determines''.
            (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is 
        amended by striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 405(a)(8)''.
            (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is 
        amended--
                    (A) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''; 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;''.
            (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is 
        amended by striking ``aid under a State plan approved'' and 
        inserting ``assistance under a State progrm funded''.
            (12) Section 456 of such Act (42 U.S.C. 656) is amended by 
        striking ``under section 402(a)(26)'' each place such term 
        appears and inserting ``pursuant to section 405(a)(8)''.
            (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)) is amended by striking ``402(a)(26)'' and 
        inserting ``405(a)(8)''.
            (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is 
        amended by striking ``aid'' and inserting ``assistance under a 
        State program funded''.
    (c) Repeal of Part F of Title IV.--Part F of title IV of such Act 
(42 U.S.C. 681-687) is hereby repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) of such Act (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 of such Act (42 U.S.C. 1308) is amended--
                    (A) by striking subsections (a), (b), (d), and (e); 
                and
                    (B) by striking ``(c)''.
            (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by 
        striking ``or part A of title IV,''.
            (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``A or'';
                    (B) in paragraph (1), by striking ``402,''; and
                    (C) in paragraph (2), by striking ``403,''.
            (4) Section 1116 of such Act (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 of such Act (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 of such Act (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) of such Act (42 U.S.C. 1320b-3(a)) is 
        amended by striking ``or part A of title IV,''.
            (8) Section 1136 of such Act (42 U.S.C. 1320b-6) is hereby 
        repealed.
            (9) Section 1137 of such Act (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''; and
                            (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) of such Act (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) of such Act, 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) of such Act (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,''.

SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a) 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)),
            ``(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) Paragraph (9) of section 51(d) of the Internal Revenue Code of 
1986 is amended 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.''
    (c) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (d) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (e) 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 hereby repealed.
    (f) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is hereby repealed.
    (g) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is hereby repealed.
    (h) Section 233 of the Social Security Act Amendments of 1994 (42 
U.S.C. 602 note) is hereby repealed.
    (i) 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--
            (A) 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
            (B) 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''.

SEC. 106. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    (a) In General.--Title XIX of the Social Security Act is amended--
            (1) in section 1931, by inserting ``subject to section 
        1931(a),'' after ``under this title,'' and by redesignating 
        such section as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

               ``continued application of afdc standards

    ``Sec. 1931. (a) For purposes of applying this title on and after 
October 1, 1995, with respect to a State--
            ``(1) except as provided in paragraph (2), any reference in 
        this title (or other provision of law in relation to the 
        operation of this title) to a provision of part A of title IV 
        of this Act, or a State plan under such part, shall be 
        considered a reference to such provision or plan as in effect 
        as of March 7, 1995, with respect to the State and eligibility 
        for medical assistance under this title shall be determined as 
        if such provision or plan (as in effect as of such date) had 
        remained in effect on and after October 1, 1995; and
            ``(2) any reference in section 1902(a)(5) or 1902(a)(55) to 
        a State plan approved under part A of title IV shall be deemed 
        a reference to a State program funded under such part (as in 
        effect on and after October 1, 1995).
    ``(b) In the case of a waiver of a provision of part A of title IV 
in effect with respect to a State as of March 7, 1995, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may continue to be applied, at the option of the 
State, in relation to this title after the date the waiver would 
otherwise expire.''
    (b) Plan Amendment.--Section 1902(a) of such Act (42 U.S.C. 
1396a(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (61),
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (62) the following new 
        paragraph:
            ``(63) provide for continuing to administer eligibility 
        standards with respect to individuals who are (or seek to be) 
        eligible for medical assistance based on the application of 
        section 1931.''.
    (c) Conforming Amendments.--(1) Section 1902(c) of such Act (42 
U.S.C. 1396a(c)) is amended by striking ``if--'' and all that follows 
and inserting the following: ``if the State requires individuals 
described in subsection (l)(1) to apply for assistance under the State 
program funded under part A of title IV as a condition of applying for 
or receiving medical assistance under this title.''.
    (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is amended by 
striking paragraph (9).
    (d) Effective Date.--The amendments made by this section shall 
apply to medical assistance furnished for calendar quarters beginning 
on or after October 1, 1995.

SEC. 107. EFFECTIVE DATE.

    (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, 1995.
    (b) Delayed Applicability of Authority To Temporarily Reduce 
Assistance for Certain Families Which Include a Child Whose Paternity 
Is Not Established.--Section 405(a)(9) of the Social Security Act, as 
added by the amendment made by section 101 of this Act, shall not apply 
to individuals who, immediately before the effective date of this 
title, are recipients of aid under a State plan approved under part A 
of title IV of the Social Security Act, until the end of the 1-year 
(or, at the option of the State, 2-year) period that begins with such 
effective date.
    (c) Transition Rule.--The amendments made by this title shall not 
apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this title under the provisions amended; 
        and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.

             TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM

SEC. 201. ESTABLISHMENT OF PROGRAM.

    Part B of title IV of the Social Security Act (42 U.S.C. 620-635) 
is amended to read as follows:

    ``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN

``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) investigate families reported to abuse or neglect 
        their children;
            ``(4) provide support, treatment, and family preservation 
        services to families which are, or are at risk of, abusing or 
        neglecting their children;
            ``(5) support children who must be removed from or who 
        cannot live with their families;
            ``(6) make timely decisions about permanent living 
        arrangements for children who must be removed from or who 
        cannot live with their families; and
            ``(7) provide for continuing evaluation and improvement of 
        child protection laws, regulations, and services.

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 3-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan 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 reports of child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) protecting children in families in which 
                child abuse or neglect is found to have occurred;
                    ``(D) removing children from dangerous settings;
                    ``(E) protecting children in foster care;
                    ``(F) promoting timely adoptions;
                    ``(G) protecting the rights of families;
                    ``(H) preventing child abuse and neglect; and
                    ``(I) establishing and responding to citizen review 
                panels under section 425.
            ``(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 actual or suspected instances of child 
        abuse or neglect.
            ``(3) Certification of state program to investigate child 
        abuse and neglect cases.--A certification that the State has in 
        effect a program to investigate child abuse and neglect cases.
            ``(4) Certification of state procedures for removal and 
        placement of abused or neglected children.--A certification 
        that the State has in effect procedures for removal from 
        families and placement of abused or neglected children.
            ``(5) 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, which 
        specifies the goal for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the written plan 
        is reviewed every 6 months, and for ensuring that information 
        about such children is collected regularly and recorded in case 
        records, and a description of such procedures.
            ``(6) Certification that the state will continue to honor 
        adoption assistance agreements.--A certification that the State 
        will honor any adoption assistance agreement (as defined in 
        section 475(3), as in effect immediately before the effective 
        date of this part) entered into by an agency of the State, that 
        is in effect as of such effective date.
            ``(7) Certification of state program to provide independent 
        living services.--A certification that the State has in effect 
        a program to provide independent living services to individuals 
        in the child protection program of the State who have attained 
        16 years of age but have not attained 20 (or, at the option of 
        the State, 22) years of age, and who do not have a family to 
        which to be returned for assistance in making the transition to 
        self-sufficient adulthood.
            ``(8) 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.
            ``(9) Identification of child protection goals.--The 
        quantitative goals of the State child protection program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a). The Secretary may not require a State to include in 
such a plan any material not described in subsection (a), and may not 
review the adequacy of State procedures.

``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

    ``(a) Entitlement.--
            ``(1) In general.--Each eligible State shall be entitled to 
        receive from the Secretary for each fiscal year specified in 
        subsection (b)(1) a grant in an amount equal to the State share 
        of the child protection amount for the fiscal year.
            ``(2) Additional grant.--
                    ``(A) In general.--In addition to a grant under 
                paragraph (1) of this subsection, the Secretary shall 
                pay to each eligible State for each fiscal year 
                specified in subsection (b)(1) 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 $486,000,000 for each 
                fiscal year specified in subsection (b)(1).
    ``(b) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child protection 
        amount' means--
                    ``(A) $3,930,000,000 for fiscal year 1996;
                    ``(B) $4,195,000,000 for fiscal year 1997;
                    ``(C) $4,507,000,000 for fiscal year 1998;
                    ``(D) $4,767,000,000 for fiscal year 1999; and
                    ``(E) $5,071,000,000 for fiscal year 2000.
            ``(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) \1/3\ of the total amount of 
                        obligations to the State under the provisions 
                        of law specified in subparagraph (B) for fiscal 
                        years 1992, 1993, and 1994; or
                            ``(ii) the total amount of obligations to 
                        the State under such provisions of law for 
                        fiscal year 1994.
                    ``(C) Provisions of law.--The provisions of law 
                specified in this subparagraph are the following (as in 
                effect immediately before the effective date of this 
                part):
                            ``(i) Section 474(a) (other than 
                        subparagraphs (C) and (D) of paragraph (3)) of 
                        this Act.
                            ``(ii) Section 304 of the Family Violence 
                        Prevention and Services Act.
                            ``(iii) Section 107(a) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(iv) Section 201(d) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(v) Section 423 of this Act.
            ``(3) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) 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, 
        including setting up abuse and neglect reporting systems, abuse 
        and neglect prevention, family preservation, foster care, 
        adoption, program administration, and training.
            ``(2) Authority to use portion of grant for other 
        purposes.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the amount of the grant made to the State 
                under this section for fiscal year 1998 or a succeeding 
                fiscal year to carry out a State program pursuant to 
                any or all of the following provisions of law:
                            ``(i) Part A of this title.
                            ``(ii) Title XX of this Act.
                            ``(iii) The Child Care and Development 
                        Block Grant Act of 1990.
                            ``(iv) Any provision of law, enacted into 
                        law during the 104th Congress, under which 
                        grants are made to States for food and 
                        nutrition or employment and training.
                    ``(B) 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 in 
                subparagraph (A) 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.
            ``(3) 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.
            ``(4) 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.
    ``(d) 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.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--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 subsection) be 
                payable to the State under this section for the 
                immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation.--In carrying out subparagraph 
                (A), the Secretary shall not reduce any quarterly 
                payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalty.--To the 
                extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to maintain effort.--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 fiscal 
        year 1996 or 1997 to carry out the State program funded under 
        this part is less than the total amount expended by the State 
        (other than from amounts provided by the Federal Government) 
        during fiscal year 1995 under parts B and E of this title, then 
        the Secretary shall reduce the amount of the grant that would 
        (in the absence of this subsection) be payable to the State 
        under this section for the immediately succeeding fiscal year 
        by the amount of the difference.
            ``(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 subsection) 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.
    ``(f) Limitation on Federal Authority.--Except as expressly 
provided in this part, the Secretary may not regulate the conduct of 
States under this part or enforce any provision of this part.

``SEC. 424. CHILD PROTECTION STANDARDS.

    ``Each State to which a grant is made under section 423 shall 
operate a child protection program in accorance with the following 
standards in order to assure the protection of children:
            ``(1) The primary standard by which a State child welfare 
        system shall be judged is the protection of children.
            ``(2) Each State shall investigate reports of abuse and 
        neglect promptly.
            ``(3) Children removed from their homes shall have a 
        permanency plan and a dispositional hearing by a court or a 
        court-appointed body within 3 months after a fact-finding 
        hearing.
            ``(4) All child protection cases in which the child is 
        placed outside the home shall be reviewed every 6 months unless 
        the child is in a long-term placement.

``SEC. 425. 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 424, 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. 426. CLEARINGHOUSE AND HOTLINE ON MISSING AND RUNAWAY CHILDREN.

    ``(a) In General.--The Secretary shall establish and operate a 
clearinghouse of information on children who are missing or have run 
away from home, including a 24-hour toll-free telephone hotline which 
may be contacted for information on such children.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary not to exceed $7,000,000 for each fiscal year.

``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) Annual State Data Reports.--Each State to which a grant is 
made under section 423 shall annually submit to the Secretary of Health 
and Human Services a report that includes the following:
            ``(1) The number of children who were reported to the State 
        during the year as abused or neglected.
            ``(2) Of the number of children described in paragraph (1), 
        the number with respect to whom such reports were 
        substantiated.
            ``(3) Of the number of children described in paragraph 
        (2)--
                    ``(A) the number that did not receive services 
                during the year under the State program funded under 
                this part;
                    ``(B) the number that received services during the 
                year under the State program funded under this part or 
                an equivalent State program; and
                    ``(C) the number that were removed from their 
                families during the year.
            ``(4) The number of families that received preventive 
        services from the State during the year.
            ``(5) The number of children who entered foster care under 
        the responsibility of the State during the year.
            ``(6) The number of children in foster care under the 
        responsibility of the State who exited from foster care during 
        the year.
            ``(7) The types of foster care placements made by the State 
        during the year, and the average monthly number of children in 
        each type of placement.
            ``(8) The average length of the foster care placements made 
        by the State during the year.
            ``(9) The age, ethnicity, gender, and family income of the 
        children placed in foster care under the responsibility of the 
        State during the year.
            ``(10) The number of children in foster care under the 
        responsibility of the State with respect to whom the State has 
        the goal of adoption.
            ``(11) The number of children in foster care under the 
        responsibility of the State who were freed for adoption during 
        the year.
            ``(12) The number of children in foster care under the 
        responsibility of the State whose adoptions were finalized 
        during the year.
            ``(13) The number of disrupted adoptions in the State 
        during the year.
            ``(14) Quantitative measurements showing whether the State 
        is making progress toward the child protection goals identified 
        by the State under section 422(a)(9).
            ``(15) The number of infants abandoned in the State during 
        the year, and the number of such infants who were legally 
        adopted during the year and the length of time between the 
        discovery of the abandonment and such adoption.
            ``(16) The number of children who died during the year 
        while in foster care under the responsibility of the State.
            ``(17) The number of deaths in the State during the year 
        resulting from child abuse or neglect.
            ``(18) The number of children served by the independent 
        living program of the State.
            ``(19) Any other information which the Secretary and a 
        majority of the States agree is appropriate to collect for 
        purposes of this part.
            ``(20) The response of the State to the findings and 
        recommendations of the citizen review panels established by the 
        State pursuant to section 425.
    ``(c) Authority of States to Use Estimates.--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.
    ``(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. RESEARCH AND TRAINING.

    ``(a) In General.--The Secretary shall conduct research and 
training in child welfare.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary not to exceed $10,000,000 for each fiscal year.

``SEC. 429. 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.
    ``(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), and should include in such reports a 
        comparison of the results of the study with the information 
        reported by States under section 427.
            ``(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).
    ``(e) Funding.--Out of any money in the Treasury of the United 
States not otherwise appropriated, the Secretary of the Treasury shall 
pay to the Secretary of Health and Human Services $6,000,000 for each 
of fiscal years 1996 through 2000 to carry out this section.

``SEC. 430. 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.--A State that violates 
                paragraph (1) during a period shall remit to the 
                Secretary all funds that were paid to the State under 
                this part during the period.
                    ``(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. 202. CONFORMING AMENDMENTS.

    (a) 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 104(b)(2)(C) of 
        this Act, is amended--
                    (A) by striking ``(or foster care maintenance 
                payments under part E)'' and inserting ``or cash 
                payments under a State program funded under part B''; 
                and
                    (B) by striking ``or 471(a)(17)''.
            (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended--
                    (A) by striking ``or E'' the 1st place such term 
                appears and inserting ``or benefits or services are 
                being provided under the State program funded under 
                part B''; and
                    (B) by striking ``or E'' the 2nd place such term 
                appears and inserting ``or benefits or services were 
                being provided under the State program funded under 
                part B''.
            (3) Section 456(a)(1) of such Act (42 U.S.C. 656(a)(1)) is 
        amended by striking ``foster care maintenance payments'' and 
        inserting ``benefits or services under a State program funded 
        under part B''.
            (4) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)), as amended by section 104(b)(13) of this Act, is 
        amended by striking ``or 471(a)(17)''.
    (b) Repeal of Part E of Title IV of the Social Security Act.--Part 
E of title IV of such Act (42 U.S.C. 671-679) is hereby repealed.
    (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) the State 
program funded under part B of title IV,''.
    (d) Repeal of Section 13712 of the Omnibus Budget Reconciliation 
Act of 1993.--Section 13712 of the Omnibus Budget Reconciliation Act of 
1993 (42 U.S.C. 670 note) 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) Repeal of Section 553 of the Howard M. Metzenbaum Multiethnic 
Placement Act of 1994.--Section 553 of the Howard M. Metzenbaum 
Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108 Stat. 4056) is 
hereby repealed.
    (g) Repeal of Subtitle C of Title XVII of the Violent Crime Control 
and Law Enforcement Act of 1994.--Subtitle C of title XVII of the 
Violent Crime Control and Law Enforcement Act of 1994 is hereby 
repealed.
    (h) Repeal of Subtitle A of Title II of the Crime Control Act of 
1990.--Subtitle A of title II of the Crime Control Act of 1990 is 
hereby repealed.

SEC. 203. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    Section 1931 of the Social Security Act, as inserted by section 
106(a)(2) of this Act, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``part A of'', and
                    (B) by striking ``under such part'' and inserting 
                ``under a part of such title''; and
            (2) in subsection (b), by striking ``part A of''.

SEC. 204. EFFECTIVE DATE.

    (a) In General.--This title and the amendments made by this title 
shall take effect on October 1, 1995.
    (b) Transition Rule.--The amendments made by this title shall not 
apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this title under the provisions amended; 
        and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.

  TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION ASSISTANCE

                  Subtitle A--Child Care Block Grants

SEC. 301. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
              OF 1990.

    (a) Goals.--Section 658A of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9801 note) is amended--
            (1) in the heading of such section 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.''.
    (b) Authorization of Appropriations.--Section 658B of the Child 
Care and Development Block Grant Act of 1990 (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 $1,943,000,000 for each of the fiscal years 1996, 1997, 
1998, 1999, and 2000.''.
    (c) Lead Entity.--Section 658D of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858b) is amended--
            (1) in the heading of such section by striking ``agency'' 
        inserting ``entity'',
            (2) in subsection (a) by inserting ``or other entity'' 
        after ``State agency'', and
            (3) by striking ``lead agency'' each place it appears and 
        inserting ``lead entity''.
    (d) Application and Plan.--Section 658E of the Child Care and 
Development Block Grant Act of 1990 (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 (1)--
                            (i) in the heading of such paragraph by 
                        striking ``agency'' and inserting ``entity'', 
                        and
                            (ii) by striking ``agency'' and inserting 
                        ``entity'',
                    (B) 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.--Provide 
                assurances 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)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'',
                                    (II) in clause (i) by inserting 
                                ``health, safety, and'' after ``comply 
                                with all'',
                                    (III) in clause (i) by striking ``; 
                                and'' at the end,
                                    (IV) by striking ``that--'' and all 
                                that follows through ``(i)'', and 
                                inserting ``that'', and
                                    (V) by striking ``(ii)'' and all 
                                that follows through the end of such 
                                subparagraph, and inserting ``and 
                                provide a detailed description of such 
                                requirements and of how such 
                                requirements are effectively 
                                enforced.'', and
                            (vi) by striking subparagraphs (F), (G), 
                        (H), (I), and (J),
                    (C) in paragraph (3)--
                            (i) in subparagraph (A) by inserting ``or 
                        as authorized by section 658T'' before the 
                        period at the end,
                            (ii) in subparagraph (B)--
                                    (I) by striking ``.--Subject to the 
                                reservation contained in subparagraph 
                                (C), the'' and inserting ``and related 
                                activities.--The'',
                                    (II) by inserting ``, other than 
                                amounts transferred under section 
                                658T,'' after ``subchapter'',
                                    (III) in clause (i) by striking ``; 
                                and'' at the end and inserting a 
                                period,
                                    (IV) by striking ``for--'' and all 
                                that follows through ``section 
                                658E(c)(2)(A)'' and inserting ``for 
                                child care services, 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
                                    (V) by striking clause (ii), and
                            (iii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) Limitation on administrative costs.--Not more 
                than 5 percent of the aggregate amount of payments 
                received under this subchapter by a State in each 
                fiscal year may be expended for administrative costs 
                incurred by such State to carry out all its functions 
                and duties under this subchapter.'',
                    (D) 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, and
                    (E) by striking paragraph (5).
    (e) Limitations on State Allotments--Section 658F(b)(2) of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858d(b)(2)) is amended by striking ``referred to in section 
658E(c)(2)(F)''.
    (f) Repeal of Earmarked Required Expenditures.--The Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is amended by 
striking sections 658G and 658H.
    (g) Administration and Enforcement.--Section 658I(a) of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(a)) is 
amended--
            (1) in paragraph (1) by inserting ``and'' at the end,
            (2) by striking paragraph (2), and
            (3) by redesignating paragraph (3) as paragraph (2).
    (h) Payments.--Section 658J(c) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858h(c)) is amended--
            (1) by striking ``expended'' and inserting ``obligated'', 
        and
            (2) by striking ``3 fiscal years'' and inserting ``fiscal 
        year''.
    (i) Annual Report and Audits.--Section 658K of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended--
            (1) in the heading of such section by inserting ``, 
        evaluation plans,'' after ``report'',
            (2) in subsection (a)--
                    (A) by striking ``, 1992'' and inserting 
                ``following the end of the first fiscal year with 
                respect to which the amendments made by the Personal 
                Responsibility Act of 1995 apply'',
                    (B) by amending paragraph (2) to read as follows:
            ``(2) containing data on the manner in which the child care 
        needs of families in the State are being fulfilled, including 
        information concerning--
                    ``(A) the number and ages of children being 
                assisted with funds provided under this subchapter;
                    ``(B) with respect to the families of such 
                children--
                            ``(i) the number of other children in such 
                        families;
                            ``(ii) the number of such families that 
                        include only 1 parent;
                            ``(iii) the number of such families that 
                        include both parents;
                            ``(iv) the ages of the mothers of such 
                        children;
                            ``(v) the ages of the fathers of such 
                        children;
                            ``(vi) the sources of the economic 
                        resources of such families, including the 
                        amount of such resources obtained from (and 
                        separately identified as being from)--
                                    ``(I) employment, including self-
                                employment;
                                    ``(II) assistance received under 
                                part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et seq.);
                                    ``(III) part B of title IV of the 
                                Social Security Act (42 U.S.C. 620 et 
                                seq.);
                                    ``(IV) the Child Nutrition Act of 
                                1966 (42 U.S.C. 1771 et seq.);
                                    ``(V) the National School Lunch Act 
                                (42 U.S.C. 1751 et seq.);
                                    ``(VI) assistance received under 
                                title XVI of the Social Security Act 
                                (42 U.S.C. 1381 et seq.);
                                    ``(VII) assistance received under 
                                title XIV of the Social Security Act 
                                (42 U.S.C. 1351 et seq.);
                                    ``(VIII) assistance received under 
                                title XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.);
                                    ``(IX) assistance received under 
                                title XX of the Social Security Act (42 
                                U.S.C. 1397 et seq.); and
                                    ``(X) any other source of economic 
                                resources the Secretary determines to 
                                be appropriate;
                    ``(C) the number of such providers separately 
                identified with respect to each type of child care 
                provider specified in section 658P(5) that provided 
                child care services obtained with assistance provided 
                under this subchapter;
                    ``(D) with respect to cost of such services--
                            ``(i) the cost imposed by such providers to 
                        provide such services; and
                            ``(ii) the portion of such cost paid with 
                        assistance provided under this subchapter;
                    ``(E) with respect to consumer education 
                information described in section 658E(c)(2)(D) provided 
                by such State--
                            ``(i) the manner in which such information 
                        was provided; and
                            ``(ii) the number of parents to whom such 
                        information was provided; and
                    ``(F) with respect to complaints received by such 
                State regarding child care services obtained with 
                assistance provided under this subchapter--
                            ``(i) the number of such complaints that 
                        were found to have merit; and
                            ``(ii) a description of the actions taken 
                        by the State to correct the circumstances on 
                        which such complaints were based.'',
                    (C) by striking paragraphs (3), (4), (5), and (6) 
                and inserting the following:
            ``(3) containing evidence demonstrating that the State 
        satisfied the requirements of section 658E(c)(2)(F); and
            ``(4) identifying each State program operated under a 
        provision of law specified in section 658T to which the State 
        transferred funds under the authority of such section, 
        specifying the amount of funds so transferred to such program, 
        and containing a justification for so transferring such 
        amount;'', and
            (3) 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'', and
            (4) by redesignating subsection (b) as subsection (c), and
            (5) by inserting after subsection (a) the following:
    ``(b) State Evaluation Plan and Evaluation Results.--
            ``(1) Evaluation plan.--In the first report submitted under 
        subsection (a) after the date of the enactment of the Personal 
        Responsibility Act of 1995, and in the report for each 
        alternating 1-year period thereafter, the State shall include a 
        plan the State intends to carry out in the 1-year period 
        subsequent to the period for which such report is submitted, to 
        evaluate the extent to which the State has realized each of the 
        goals specified in paragraphs (2) through (5) of section 
        658A(b). The State shall include in such plan a description of 
        the types of data and other information the State will collect 
        to determine whether the State has realized such goals.
            ``(2) Evaluation results.--In the second report submitted 
        under subsection (a) after the date of the enactment of the 
        Personal Responsibility Act of 1995, and in the report for each 
        alternating 1-year period thereafter, the State shall include a 
        summary of the results of an evaluation carried out under the 
        evaluation plan contained in the report submitted under 
        subsection (a) for the preceding 1-year period.''.
    (j) Report by Secretary.--Section 658L of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858j) is amended--
            (1) by striking ``, 1993, and annually'' and inserting 
        ``following the end of the second fiscal year with respect to 
        which the amendments made by the Personal Responsibility Act of 
        1995 apply, and biennially'',
            (2) by striking ``Committee on Education and Labor'' and 
        inserting ``Speaker'',
            (3) by striking ``Committee on Labor and Human Resources'' 
        and inserting ``President pro tempore'', and
            (4) by striking the last sentence.
    (k) Reallotments.--Section 658O of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``Possessions'' and inserting 
                ``possessions'',
                    (B) by inserting ``and'' after ``States,'', and
                    (C) by striking ``, and the Trust Territory of the 
                Pacific Islands'',
            (2) by amending subsection (b) to read as follows:
    ``(b) State Allotment.--From the amount appropriated under section 
658B for each fiscal year remaining after reservations under subsection 
(a), the Secretary shall allot to each State (excluding Guam, American 
Samoa, the Virgin Islands of the United States, and the Commonwealth of 
the Northern Mariana Islands) an amount that bears the same ratio to 
the amount so appropriated for such fiscal year as the aggregate of the 
amounts received by the State under--
            ``(1) this subchapter for fiscal year 1994;
            ``(2) section 403 of the Social Security Act, with respect 
        to expenditures by the State for child care under section 
        402(g)(1) of such Act during fiscal year 1994; and
            ``(3) section 403(n) of the Social Security Act for fiscal 
        year 1994;
bears to the aggregate of the amounts received by all the States 
(excluding Guam, American Samoa, the Virgin Islands of the United 
States, and the Commonwealth of the Northern Mariana Islands) under 
paragraphs (1), (2), and (3).'',
            (3) in subsection (c)--
                    (A) in paragraph (2)(A) by striking ``agency'' and 
                inserting ``entity'', and
                    (B) in paragraph (5) by striking ``our'' and 
                inserting ``out'',
            (4) by striking subsection (e), and
            (5) by redesignating subsection (f) as subsection (e).
    (l) Definitions.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) in paragraph (5)(A)--
                    (A) in clause (i) by striking ``and'' at the end 
                and inserting ``or'',
                    (B) by striking ``that--'' and all that follows 
                through ``(i)'', and inserting ``that'', and
                    (C) by striking clause (ii),
            (2) by amending paragraph (8) to read as follows:
            ``(8) Lead entity.--The term `lead entity' means the State 
        agency or other entity designated under section 658B(a).'',
            (3) by striking paragraphs (3), (10), and (12),
            (4) by inserting after paragraph (2) the following:
            ``(3) Child care services.--The term `child care services' 
        means services that constitute physical care of a child and may 
        include services that are designed to enhance the educational, 
        social, cultural, emotional, and recreational development of a 
        child but that are not intended to serve as a substitute for 
        compulsory educational services.'',
            (5) in paragraph (13)--
                    (A) by inserting ``or'' after ``Samoa,'', and
                    (B) by striking ``, and the Trust Territory of the 
                Pacific Islands'', and
            (6) by redesignating paragraphs (11), (13), and (14) as 
        paragraphs (10), (11), and (12), respectively.
    (m) Authority to Transfer Funds.--The Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by 
inserting after section 658S the following:

``SEC. 658T. TRANSFER OF FUNDS.

    ``(a) Authority.--Of the aggregate amount of payments received 
under this subchapter by a State in each fiscal year, the State may 
transfer not more than 20 percent for use by the State to carry out 
State programs under 1 or more of the following provisions of law:
            ``(1) Part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.).
            ``(2) Part B of title IV of the Social Security Act (42 
        U.S.C. 620 et seq.).
            ``(3) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).
            ``(4) The National School Lunch Act (42 U.S.C. 1751 et 
        seq.).
            ``(5) Title XX of the Social Security Act (42 U.S.C. 1397 
        et seq.).
    ``(b) Requirements Applicable to Funds Transferred.--Funds 
transferred under subsection (a) to carry out a State program operated 
under a provision of law specified in such subsection shall not be 
subject to the requirements of this subchapter, but shall be subject to 
the same requirements that apply to Federal funds provided directly 
under such provision of law to carry out such program.''.

SEC. 302. REPEAL OF CHILD CARE ASSISTANCE AUTHORIZED BY ACTS OTHER THAN 
              THE SOCIAL SECURITY ACT.

    (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.

       Subtitle B--Family and School-Based Nutrition Block Grants

            CHAPTER 1--FAMILY NUTRITION BLOCK GRANT PROGRAM

SEC. 321. AMENDMENT TO CHILD NUTRITION ACT OF 1966.

    The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is amended 
to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Child Nutrition 
Act of 1966'.
    ``(b) Table of Contents.--The table of contents is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Authorization.
``Sec. 3. Allotment.
``Sec. 4. Application.
``Sec. 5. Use of amounts.
``Sec. 6. Reports.
``Sec. 7. Penalties.
``Sec. 8. Model nutrition standards for food assistance for pregnant, 
                            postpartum, and breastfeeding women, 
                            infants and children.
``Sec. 9. Authorization of appropriations.
``Sec. 10. Definitions.

``SEC. 2. AUTHORIZATION.

    ``(a) In General.--In the case of each State that in accordance 
with section 4 submits to the Secretary of Agriculture an application 
for a fiscal year, the Secretary shall provide a grant for the year to 
the State for the purpose of achieving the goals described in 
subsection (b). The grant shall consist of the allotment determined for 
the State under section 3.
    ``(b) Goals.--The goals of this Act are--
            ``(1) to provide nutritional risk assessment, food 
        assistance based on such risk assessment, and nutrition 
        education and counseling to economically disadvantaged pregnant 
        women, postpartum women, breastfeeding women, infants, and 
        young children who are determined to be at nutritional risk;
            ``(2) to provide nutritional risk assessments of such women 
        in order to provide food assistance and nutrition education 
        which meets their specific needs;
            ``(3) to provide nutrition education to such women in order 
        to increase their awareness of the types of foods which should 
        be consumed to maintain good health;
            ``(4) to provide food assistance, including nutritious meal 
        supplements, to such women in order to reduce incidences of 
        low-birthweight babies and babies born with birth defects as a 
        result of nutritional deficiencies;
            ``(5) to provide food assistance, including nutritious meal 
        supplements, to such women, infants, and young children in 
        order to ensure their future good health;
            ``(6) to ensure that such women, infants, and children are 
        referred to other health services, including routine pediatric 
        and obstetric care, when necessary;
            ``(7) to ensure that children from economically 
        disadvantaged families in day care facilities, family day care 
        homes, homeless shelters, settlement houses, recreational 
        centers, Head Start centers, Even Start programs and child care 
        facilities for children with disabilities receive nutritious 
        meals, supplements, and low-cost milk; and
            ``(8) to provide summer food service programs to meet the 
        nutritional needs of children from economically disadvantaged 
        families during months when school is not in session.
    ``(c) Timing of Payments.--The Secretary shall provide payments 
under a grant under this Act to States on a quarterly basis.

``SEC. 3. ALLOTMENT.

    The Secretary shall allot the amount appropriated to carry out this 
Act for a fiscal year among the States as follows:
            ``(1) First fiscal year.--
                    ``(A) In general.--With respect to the first fiscal 
                year for which the Secretary provides grants to States 
                under this Act, the amount allotted to each State shall 
                bear the same proportion to such amount appropriated as 
                the aggregate of the amounts described in subparagraph 
                (B) that were received by each such State under the 
                provisions of law described in such subparagraph (as 
                such provisions of law were in effect on the day before 
                the date of the enactment of the Personal 
                Responsibility Act of 1995) for the preceding fiscal 
                year bears to the aggregate of the amounts described in 
                subparagraph (B) that were received by all such States 
                under such provisions of law for such preceding fiscal 
                year.
                    ``(B) Amounts described.--The amounts described in 
                this subparagraph are the following:
                            ``(i) The amount received under the special 
                        supplemental nutrition program for women, 
                        infants, and children under section 17 of this 
                        Act (42 U.S.C. 1786).
                            ``(ii) The amount received under the 
                        homeless children nutrition program established 
                        under section 17B of the National School Lunch 
                        Act (42 U.S.C. 1766b).
                            ``(iii) 87.5 percent of the sum of the 
                        amounts received under the following programs:
                                    ``(I) The child and adult care food 
                                program under section 17 of the 
                                National School Lunch Act (42 U.S.C. 
                                1766), except for subsection (o) of 
                                such section.
                                    ``(II) The summer food service 
                                program for children established under 
                                section 13 of the National School Lunch 
                                Act (42 U.S.C. 1761).
                                    ``(III) The special milk program 
                                established under section 3 of this Act 
                                (42 U.S.C. 1772).
            ``(2) Second fiscal year.--With respect to the second 
        fiscal year for which the Secretary provides grants to States 
        under this Act--
                    ``(A) 95 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the amount allotted to each such State 
                from a grant under this Act for the preceding fiscal 
                year bears to the aggregate of the amounts allotted to 
                all such States from grants under this Act for such 
                preceding fiscal year; and
                    ``(B) 5 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the relative number of individuals 
                receiving assistance during the 1-year period ending on 
                June 30 of the preceding fiscal year in such State from 
                amounts received from a grant under this Act for such 
                preceding fiscal year bears to the total number of 
                individuals receiving assistance in all States from 
                amounts received from grants under this Act for the 
                preceding fiscal year.
            ``(3) Third and fourth fiscal years.--With respect to each 
        of the third and fourth fiscal years for which the Secretary 
        provides grants to States under this Act--
                    ``(A) 90 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 10 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).
            ``(4) Fifth fiscal year.--With respect to the fifth fiscal 
        year for which the Secretary provides grants to States under 
        this Act--
                    ``(A) 85 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 15 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).

``SEC. 4. APPLICATION.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State submits to the Secretary an application 
containing only--
            ``(1) an agreement that the State will use amounts received 
        from such grant in accordance with section 5;
            ``(2) except as provided in paragraph (3), an agreement 
        that the State will set minimum nutritional requirements for 
        food assistance provided under this Act based on the most 
        recent tested nutritional research available, except that--
                    ``(A) such requirements shall not be construed to 
                prohibit the substitution of foods to accommodate the 
                medical or other special dietary needs of individual 
                students; and
                    ``(B) such requirements shall, at a minimum, be 
                based on--
                            ``(i) the weekly average of the nutrient 
                        content of school lunches; or
                            ``(ii) such other standards as the State 
                        may prescribe;
            ``(3) an agreement that the State, with respect to the 
        provision of food assistance to economically disadvantaged 
        pregnant women, postpartum women, breastfeeding women, infants, 
        and young children, shall--
                    ``(A) implement the minimum nutritional 
                requirements described in paragraph (2) for such food 
                assistance; or
                    ``(B) implement the model nutrition standards 
                developed under section 8 for such food assistance;
            ``(4) an agreement that the State will take such reasonable 
        steps as the State deems necessary to restrict the use and 
        disclosure of information about individuals and families 
        receiving assistance under this Act;
            ``(5) an agreement that the State will use not more than 5 
        percent of the amount of such grant for administrative costs 
        incurred to provide assistance under this Act, except that 
        costs associated with the nutritional risk assessment of 
        individuals described in section 5(a)(1) and costs associated 
        with nutrition education and counseling provided to such 
        individuals shall not be considered to be administrative costs; 
        and
            ``(6) an agreement that the State will submit to the 
        Secretary a report in accordance with section 6.

``SEC. 5. USE OF AMOUNTS.

    ``(a) In General.--The Secretary may provide a grant under this Act 
to a State only if the State agrees that it will use all amounts 
received from such grant--
            ``(1) subject to subsection (b), to provide nutritional 
        risk assessment, food assistance based on such risk assessment, 
        and nutrition education and counseling to economically 
        disadvantaged pregnant women, postpartum women, breastfeeding 
        women, infants, and young children who are determined to be at 
        nutritional risk;
            ``(2) to provide milk in nonprofit nursery schools, child 
        care centers, settlement houses, summer camps, and similar 
        institutions devoted to the care and training of children, to 
        children from economically disadvantaged families;
            ``(3) to provide food service programs in institutions and 
        family day care homes providing child care to children from 
        economically disadvantaged families;
            ``(4) to provide summer food service programs carried out 
        by nonprofit food authorities, local governments, nonprofit 
        higher education institutions participating in the National 
        Youth Sports Program, and residential nonprofit summer camps to 
        children from economically disadvantaged families; and
            ``(5) to provide nutritious meals to pre-school age 
        homeless children in shelters and other facilities serving the 
        homeless population.
    ``(b) Additional Requirement.--The State shall ensure that not less 
than 80 percent of the amount of the grant is used to provide 
nutritional risk assessment, food assistance based on such nutritional 
risk assessment, and nutrition education and counseling to economically 
disadvantaged pregnant women, postpartum women, breastfeeding women, 
infants, and young children under subsection (a)(1).
    ``(c) Authority To Use Amounts for Other Purposes.--
            ``(1) In general.--Subject to paragraphs (2) and (3), a 
        State may use not more than 20 percent of amounts received from 
        a grant under this Act for a fiscal year to carry out a State 
        program pursuant to any or all of the following provisions of 
        law:
                    ``(A) Part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.).
                    ``(B) Part B of title IV of the Social Security Act 
                (42 U.S.C. 620 et seq.).
                    ``(C) Title XX of the Social Security Act (42 
                U.S.C. 1397 et seq.).
                    ``(D) The National School Lunch Act (42 U.S.C. 1751 
                et seq.).
                    ``(E) The Child Care and Development Block Grant 
                Act of 1990 (42 U.S.C. 9858 et seq.).
            ``(2) Sufficient funding determination.--Prior to using any 
        amounts received from a grant under this Act for a fiscal year 
        to carry out a State program pursuant to any or all of the 
        provisions of law described in paragraph (1), the appropriate 
        State agency shall make a determination that sufficient amounts 
        will remain available for such fiscal year to carry out this 
        Act.
            ``(3) Rules governing use of amounts for other purposes.--
        Amounts paid to the State under a grant under this Act that are 
        used to carry out a State program pursuant to a provision of 
        law specified in paragraph (1) shall not be subject to the 
        requirements of this Act, but shall be subject to the same 
        requirements that apply to Federal funds provided directly 
        under the provision of law to carry out the program.

``SEC. 6. REPORTS.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State agrees that it will submit, for such 
fiscal year, a report to the Secretary describing--
            ``(1) the number of individuals receiving assistance under 
        the grant in accordance with each of paragraphs (1) through (5) 
        of section 5(a);
            ``(2) the different types of assistance provided to such 
        individuals in accordance with such paragraphs;
            ``(3) the extent to which such assistance was effective in 
        achieving the goals described in section 2(b);
            ``(4) the standards and methods the State is using to 
        ensure the nutritional quality of such assistance, including 
        meals and supplements;
            ``(5) the number of low birthweight births in the State in 
        such fiscal year compared to the number of such births in the 
        State in the previous fiscal year; and
            ``(6) any other information the Secretary determines to be 
        appropriate.

``SEC. 7. PENALTIES.

    ``(a) Penalty for Use of Amounts in Violation of This Act.--
            ``(1) In general.--The Secretary shall reduce the amounts 
        otherwise payable to a State under a grant under this Act by 
any amount paid to the State under this Act which an audit conducted 
pursuant to chapter 75 of title 31, United States Code, finds has been 
used in violation of this Act.
            ``(2) Limitation.--In carrying out paragraph (1), the 
        Secretary shall not reduce any quarterly payment by more than 
        25 percent.
    ``(b) Penalty for Failure To Submit Required Report.--The Secretary 
shall reduce by 3 percent the amount otherwise payable to a State under 
a grant under this Act for a fiscal year if the Secretary determines 
that the State has not submitted the report required by section 6 for 
the immediately preceding fiscal year, within 6 months after the end of 
the immediately preceding fiscal year.

``SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSISTANCE FOR PREGNANT, 
              POSTPARTUM, AND BREASTFEEDING WOMEN, INFANTS AND 
              CHILDREN.

    ``(a) In General.--Not later than April 1, 1996, the Food and 
Nutrition Board of the Institute of Medicine of the National Academy of 
Sciences, in cooperation with pediatricians, obstetricians, 
nutritionists, and directors of programs providing nutritional risk 
assessment, food assistance, and nutrition education and counseling to 
economically disadvantaged pregnant women, postpartum women, 
breastfeeding women, infants, and young children, shall develop model 
nutrition standards for food assistance provided to such women, 
infants, and children under this Act.
    ``(b) Requirement.--Such model nutrition standards shall require 
that food assistance provided to such women, infants, and children 
contain nutrients that are lacking in the diets of such women, infants, 
and children, as determined by nutritional research.
    ``(c) Report to Congress.--Not later than 1 year after the date on 
which the model nutrition standards are developed under subsection (a), 
the Food and Nutrition Board of the Institute of Medicine of the 
National Academy of Sciences shall prepare and submit to the Congress a 
report regarding the efforts of States to implement such model 
nutrition standards.

``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this Act $4,606,000,000 for fiscal year 1996, $4,777,000,000 for 
fiscal year 1997, $4,936,000,000 for fiscal year 1998, $5,120,000,000 
for fiscal year 1999, and $5,308,000,000 for fiscal year 2000.
    ``(b) Availability.--Amounts authorized to be appropriated under 
subsection (a) are authorized to remain available until the end of the 
fiscal year subsequent to the fiscal year for which such amounts are 
appropriated.

``SEC. 10. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) Breastfeeding women.--The term `breastfeeding women' 
        means women up to 1 year postpartum who are breastfeeding their 
        infants.
            ``(2) Economically disadvantaged.--The term `economically 
        disadvantaged' means an individual or a family, as the case may 
        be, whose annual income does not exceed 185 percent of the 
        applicable family size income levels contained in the most 
        recent income poverty guidelines prescribed by the Office of 
        Management and Budget and based on data from the Bureau of the 
        Census.
            ``(3) Infants.--The term `infants' means individuals under 
        1 year of age.
            ``(4) Postpartum women.--The term `postpartum women' means 
        women who are in the 180-day period beginning on the 
        termination of pregnancy.
            ``(5) Pregnant women.--The term `pregnant women' means 
        women who have 1 or more fetuses in utero.
            ``(6) School.--The term `school' means a public or private 
        nonprofit elementary, intermediate, or secondary school.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(8) State.--The term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the Virgin Islands, or a tribal 
        organization (as defined in section 4(l) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b(l))).
            ``(9) Young children.--The term `young children' means 
        individuals who have attained the age of 1 but have not 
        attained the age of 5.''.

         CHAPTER 2--SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM

SEC. 341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.

    The National School Lunch Act (42 U.S.C. 1751 et seq.) is amended 
to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `National School 
Lunch Act'.
    ``(b) Table of Contents.--The table of contents is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Authorization.
``Sec. 3. Allotment.
``Sec. 4. Application.
``Sec. 5. Use of amounts.
``Sec. 6. Reports.
``Sec. 7. Penalties.
``Sec. 8. Assistance to children enrolled in private nonprofit schools 
                            and Department of Defense domestic 
                            dependents' schools in case of restrictions 
                            on State or failure by State to provide 
                            assistance.
``Sec. 9. Food service programs for department of defense overseas 
                            dependents' schools.
``Sec. 10. Model nutrition standards for meals for students.
``Sec. 11. Definitions.

``SEC. 2. AUTHORIZATION.

    ``(a) Entitlement.--
            ``(1) In general.--In the case of each State that in 
        accordance with section 4 submits to the Secretary of 
        Agriculture an application for a fiscal year, each such State 
        shall be entitled to receive from the Secretary for such fiscal 
        year a grant for the purpose of achieving the goals described 
        in subsection (b). Subject to paragraph (2), the grant shall 
        consist of the allotment for such State determined under 
        section 3 of the school-based nutrition amount for the fiscal 
        year.
            ``(2) Requirement to provide commodities.--9 percent of the 
        amount of the assistance available under this Act for each 
        State shall be in the form of commodities.
            ``(3) School-based nutrition amount.--
                    ``(A) In general.--For purposes of this Act, the 
                term `school-based nutrition amount' means, subject to 
                the reservation contained in subparagraph (B), 
                $6,681,000,000 for fiscal year 1996, $6,956,000,000 for 
                fiscal year 1997, $7,237,000,000 for fiscal year 1998, 
                $7,538,000,000 for fiscal year 1999, and $7,849,000,000 
                for fiscal year 2000.
                    ``(B) Reservation.--For each fiscal year described 
                in subparagraph (A), the Secretary shall reserve an 
                amount equal to the amount determined under subsection 
                (c) of section 9 for such fiscal year from the school-
                based nutrition amount for the purpose of establishing 
                and carrying out nutritious food service programs at 
                Department of Defense overseas dependents' schools in 
                accordance with such section.
            ``(4) Availability.--Payments under a grant to a State from 
        the allotment determined under section 3 for any fiscal year 
        may be obligated by the State in that fiscal year or in the 
        succeeding fiscal year.
    ``(b) Goals.--The goals of this Act are--
            ``(1) to safeguard the health and well-being of children 
        through the provision of nutritious, well-balanced meals and 
        food supplements;
            ``(2) to provide economically disadvantaged children access 
        to nutritious free or low cost meals, food supplements, and 
        low-cost milk;
            ``(3) to ensure that children served under this Act are 
        receiving the nutrition they require to take advantage of the 
        educational opportunities provided to them;
            ``(4) to emphasize foods which are naturally good sources 
        of vitamins and minerals over foods which have been enriched 
        with vitamins and minerals and are high in fat or sodium 
        content;
            ``(5) to provide a comprehensive school nutrition program 
        for children; and
            ``(6) to minimize paperwork burdens and administrative 
        expenses for participating schools.
    ``(c) Timing of Payments.--The Secretary shall provide payments 
under a grant under this Act to States on a quarterly basis.

``SEC. 3. ALLOTMENT.

    ``The Secretary shall allot the amount appropriated to carry out 
this Act for a fiscal year among the States as follows:
            ``(1) First fiscal year.--
                    ``(A) In general.--With respect to the first fiscal 
                year for which the Secretary provides grants to States 
                under this Act, the amount allotted to each State shall 
                bear the same proportion to such amount appropriated as 
                the aggregate of the amounts described in subparagraph 
                (B) that were received by each such State under the 
                provisions of law described in such subparagraph (as 
                such provisions of law were in effect on the day before 
                the date of the enactment of the Personal 
                Responsibility Act of 1995) for the preceding fiscal 
                year bears to the aggregate of the amounts described in 
                subparagraph (B) that were received by all such States 
                under such provisions of law for such preceding fiscal 
                year.
                    ``(B) Amounts described.--The amounts described in 
                this subparagraph are the following:
                            ``(i) The amount received under the school 
                        breakfast program established under section 4 
                        of the Child Nutrition Act of 1966 (42 U.S.C. 
                        1773).
                            ``(ii) The amount received under the school 
                        lunch program established under this Act (42 
                        U.S.C. 1751 et seq.).
                            ``(iii) 12.5 percent of the sum of the 
                        amounts received under the following programs:
                                    ``(I) The child and adult care food 
                                program under section 17 of this Act 
                                (42 U.S.C. 1766), except for subsection 
                                (o) of such section.
                                    ``(II) The summer food service 
                                program for children established under 
                                section 13 of this Act (42 U.S.C. 
                                1761).
                                    ``(III) The special milk program 
                                established under section 3 of the 
                                Child Nutrition Act of 1966 (42 U.S.C. 
                                1772).
            ``(2) Second fiscal year.--With respect to the second 
        fiscal year for which the Secretary provides grants to States 
        under this Act--
                    ``(A) 95 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the amount allotted to each such State 
                from a grant under this Act for the preceding fiscal 
                year bears to the aggregate of the amounts allotted to 
                all such States from grants under this Act for such 
                preceding fiscal year; and
                    ``(B) 5 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the relative number of meals served 
                during the 1-year period ending on June 30 of the 
                preceding fiscal year in a State from amounts received 
                from a grant under this Act for such preceding fiscal 
                year bears to the total number of meals served in all 
                States from amounts received from grants under this Act 
                for the preceding fiscal year.
            ``(3) Third and fourth fiscal years.--With respect to each 
        of the third and fourth fiscal years for which the Secretary 
        provides grants to States under this Act--
                    ``(A) 90 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 10 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).
            ``(4) Fifth fiscal year.--With respect to the fifth fiscal 
        year for which the Secretary provides grants to States under 
        this Act--
                    ``(A) 85 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 15 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).

``SEC. 4. APPLICATION.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State submits to the Secretary an application 
containing only--
            ``(1) an agreement that the State will use amounts received 
        from such grant in accordance with section 5;
            ``(2) except as provided in paragraph (3), an agreement 
        that the State will set minimum nutritional requirements for 
        meals provided under this Act based on the most recent tested 
        nutritional research available, except that--
                    ``(A) such requirements shall not be construed to 
                prohibit the substitution of foods to accommodate the 
                medical or other special dietary needs of individual 
                students; and
                    ``(B) such requirements shall, at a minimum, be 
                based on--
                            ``(i) the weekly average of the nutrient 
                        content of school lunches; or
                            ``(ii) such other standards as the State 
                        may prescribe;
            ``(3) an agreement that the State, with respect to the 
        provision of meals to students, shall--
                    ``(A) implement the minimum nutritional 
                requirements described in paragraph (2) for such meals; 
                or
                    ``(B) implement the model nutrition standards 
                developed under section 10 for such meals;
            ``(4) an agreement that the State will take such reasonable 
        steps as the State deems necessary to restrict the use and 
        disclosure of information about individuals and families 
        receiving assistance under this Act;
            ``(5) an agreement that the State will use not more than 2 
        percent of the amount of such grant for administrative costs 
        incurred to provide assistance under this Act; and
            ``(6) an agreement that the State will submit to the 
        Secretary a report in accordance with section 6.

``SEC. 5. USE OF AMOUNTS.

    ``(a) In General.--The Secretary may provide a grant under this Act 
to a State only if the State agrees that it will use all amounts 
received from such grant to provide assistance to schools to establish 
and carry out nutritious food service programs that provide affordable 
meals and supplements to students, which may include--
            ``(1) nonprofit school breakfast programs;
            ``(2) nonprofit school lunch programs;
            ``(3) nonprofit before and after school supplement 
        programs;
            ``(4) nonprofit low-cost milk services; and
            ``(5) nonprofit summer meals programs.
    ``(b) Additional Requirements.--
            ``(1) Minimum amount of grant for free or low cost meals or 
        supplements.--In providing assistance to schools to establish 
        and carry out nutritious food service programs in accordance 
        with subsection (a), the State shall ensure that not less than 
        80 percent of the amount of the grant is used to provide free 
        or low cost meals or supplements to economically disadvantaged 
        children.
            ``(2) Provision of food service programs in private 
        nonprofit schools and department of defense domestic 
        dependents' schools.--To the extent consistent with the number 
        of children in the State who are enrolled in private nonprofit 
        schools and Department of Defense domestic dependents' schools, 
        the State, after timely and appropriate consultation with 
        representatives of such schools, as the case may be, shall 
        ensure that nutritious food service programs are established 
        and carried out in such schools in accordance with subsection 
        (a) on an equitable basis with nutritious food service programs 
        established and carried out in public nonprofit schools in the 
        State.
    ``(c) Authority To Use Amounts for Other Purposes.--
            ``(1) In general.--Subject to paragraphs (2) and (3), a 
        State may use not more than 20 percent of amounts received from 
        a grant under this Act for a fiscal year to carry out a State 
        program pursuant to any or all of the following provisions of 
        law:
                    ``(A) Part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.).
                    ``(B) Part B of title IV of the Social Security Act 
                (42 U.S.C. 620 et seq).
                    ``(C) Title XX of the Social Security Act (42 
                U.S.C. 1397 et seq.).
                    ``(D) The Child Nutrition Act of 1966 (42 U.S.C. 
                1771 et seq.).
                    ``(E) The Child Care and Development Block Grant 
                Act of 1990 (42 U.S.C. 9858 et seq.).
            ``(2) Sufficient funding determination.--Prior to using any 
        amounts received from a grant under this Act for a fiscal year 
        to carry out a State program pursuant to any or all of the 
        provisions of law described in paragraph (1), the appropriate 
        State agency shall make a determination that sufficient amounts 
        will remain available for such fiscal year to carry out this 
        Act.
            ``(3) Rules governing use of amounts for other purposes.--
        Amounts paid to the State under a grant under this Act that are 
        used to carry out a State program pursuant to a provision of 
        law specified in paragraph (1) shall not be subject to the 
        requirements of this Act, but shall be subject to the same 
        requirements that apply to Federal funds provided directly 
        under the provision of law to carry out the program.
    ``(d) Limitation on Provision of Commodities to Certain School 
Districts, Private Nonprofit Schools, and Department of Defense 
Domestic Dependents' Schools.--
            ``(1) In general.--A State may not require a school 
        district, private nonprofit school, or Department of Defense 
        domestic dependents' school described in paragraph (2), except 
        upon the request of such school district, private school, or 
        domestic dependents' school, as the case may be, to accept 
        commodities for use in the food service program of such school 
        district, private school, or domestic dependents' school in 
        accordance with this section. Such school district, private 
        school, or domestic dependents' school may continue to receive 
        commodity assistance in the form that it received such 
        assistance as of January 1, 1987.
            ``(2) School district, private nonprofit school, and 
        department of defense domestic dependents' school described.--A 
        school district, private nonprofit school, or Department of 
        Defense domestic dependents' school described in this paragraph 
        is a school district, private nonprofit 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 such school 
        district, private school, or domestic dependents' school under 
        section 18(b) of the National School Lunch Act (42 U.S.C. 1751 
        et seq.), as such section was in effect on the day before the 
        date of the enactment of the Personal Responsibility Act of 
        1995.
    ``(e) Prohibition on Physical Segregation, Overt Identification, or 
Other Discrimination With Respect to Children Eligible for Free or Low 
Cost Meals or Supplements.--In providing assistance to schools to 
establish and carry out nutritious food service programs in accordance 
with subsection (a), the State shall ensure that such schools do not--
            ``(1) physically segregate children eligible to receive 
        free or low cost meals or supplements on the basis of such 
        eligibility;
            ``(2) provide for the overt identification of such children 
        by special tokens or tickets, announced or published list of 
        names, or other means; or
            ``(3) otherwise discriminate against such children.

``SEC. 6. REPORTS.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State agrees that it will submit, for such 
fiscal year, a report to the Secretary describing--
            ``(1) the number of individuals receiving assistance under 
        the grant;
            ``(2) the different types of assistance provided to such 
        individuals;
            ``(3) the total number of meals served to students under 
        the grant, including the percentage of such meals served to 
        economically disadvantaged students;
            ``(4) the extent to which such assistance was effective in 
        achieving the goals described in section 2(b);
            ``(5) the standards and methods the State is using to 
        ensure the nutritional quality of such assistance, including 
        meals and supplements; and
            ``(6) any other information the Secretary determines to be 
        appropriate.

``SEC. 7. PENALTIES.

    ``(a) Penalty for Use of Amounts in Violation of This Act.--
            ``(1) In general.--The Secretary shall reduce the amounts 
        otherwise payable to a State under a grant under this Act by 
        any amount paid to the State under this Act which an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds has been used in violation of this Act.
            ``(2) Limitation.--In carrying out paragraph (1), the 
        Secretary shall not reduce any quarterly payment by more than 
        25 percent.
    ``(b) Penalty for Failure To Submit Required Report.--The Secretary 
shall reduce by 3 percent the amount otherwise payable to a State under 
a grant under this Act for a fiscal year if the Secretary determines 
that the State has not submitted the report required by section 6 for 
the immediately preceding fiscal year, within 6 months after the end of 
the immediately preceding fiscal year.

``SEC. 8. ASSISTANCE TO CHILDREN ENROLLED IN PRIVATE NONPROFIT SCHOOLS 
              AND DEPARTMENT OF DEFENSE DOMESTIC DEPENDENTS' SCHOOLS IN 
              CASE OF RESTRICTIONS ON STATE OR FAILURE BY STATE TO 
              PROVIDE ASSISTANCE.

    ``(a) In General.--If, by reason of any other provision of law, a 
State is prohibited from providing assistance from amounts received 
from a grant under this Act to private nonprofit schools or Department 
of Defense domestic dependents' schools for a fiscal year to establish 
and carry out nutritious food service programs in such schools in 
accordance with section 5(a), or the Secretary determines that a State 
has substantially failed or is unwilling to provide such assistance to 
such private nonprofit schools or domestic dependents' schools for such 
fiscal year, the Secretary shall, after consultation with appropriate 
representatives of the State and private nonprofit schools or domestic 
dependents' schools, as the case may be, arrange for the provision of 
such assistance to private nonprofit schools or domestic dependents' 
schools in the State for such fiscal year in accordance with the 
requirements this Act.
    ``(b) Reduction in Amount of State Grant.--If the Secretary 
arranges for the provision of assistance to private nonprofit schools 
or Department of Defense domestic dependents' schools in a State for a 
fiscal year under subsection (a), the amount of the grant for such 
State for such fiscal year shall be reduced by the amount of such 
assistance provided to such private nonprofit schools or domestic 
dependents' schools, as the case may be.

``SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF DEFENSE OVERSEAS 
              DEPENDENTS' SCHOOLS.

    ``(a) In General.--The Secretary shall make available to the 
Secretary of Defense for each fiscal year funds and commodities in an 
amount determined in accordance with subsection (c) for the purpose of 
establishing and carrying out nutritious food service programs that 
provide affordable meals and supplements to students attending 
Department of Defense overseas dependents' schools.
    ``(b) Requirements.--In carrying out nutritious food service 
programs under subsection (a), the Secretary of Defense--
            ``(1) shall ensure that not less than 80 percent of the 
        amount of assistance provided to each school for a fiscal year 
        is used to provide free or low cost meals or supplements to 
        economically disadvantaged children; and
            ``(2) shall ensure that, with respect to the provision of 
        meals to students, each such school will--
                    ``(A) implement minimum nutritional requirements 
                for meals provided under this section based on the most 
                recent tested nutritional research available, except 
                that--
                            ``(i) such requirements shall not be 
                        construed to prohibit the substitution of foods 
                        to accommodate the medical or other special 
                        dietary needs of individual students; and
                            ``(ii) such requirements shall, at a 
                        minimum, be based on--
                                    ``(I) the weekly average of the 
                                nutrient content of school lunches; or
                                    ``(II) such other standards as the 
                                Secretary of Agriculture may prescribe; 
                                or
                    ``(B) implement the model nutrition standards 
                developed under section 10 for such meals.
    ``(c) Amount and Source of Funds and Commodities.--
            ``(1) Amount.--The Secretary, in consultation with the 
        Secretary of Defense, shall determine the amount of funds and 
        commodities necessary for each fiscal year to establish and 
        carry out nutritious food service programs described in 
        subsection (a).
            ``(2) Source.--Such amount of funds and commodities shall 
        consist of the reservation of the school-based nutrition amount 
        in accordance with section 2(a)(3)(B).

``SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR STUDENTS.

    ``(a) Model Nutrition Standards.--Not later than April 1, 1996, the 
Food and Nutrition Board of the Institute of Medicine of the National 
Academy of Sciences, in cooperation with nutritionists and directors of 
programs providing meals to students under this Act, shall develop 
model nutrition standards for meals provided to such students under 
this Act.
    ``(b) Report to Congress.--Not later than 1 year after the date on 
which the model nutrition standards are developed under subsection (a), 
the Food and Nutrition Board of the Institute of Medicine of the 
National Academy of Sciences shall prepare and submit to the Congress a 
report regarding the efforts of States to implement such model 
nutrition standards.

``SEC. 11. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) Department of defense domestic dependents' school.--
        The term `Department of Defense domestic dependents' school' 
        means an elementary or secondary school established pursuant to 
        section 2164 of title 10, United States Code.
            ``(2) Department of defense overseas dependents' school.--
        The term `Department of Defense overseas dependents' school' 
        means a Department of Defense dependents' school which is 
        located outside the United States and the territories or 
        possessions of the United States.
            ``(3) Economically disadvantaged.--The term `economically 
        disadvantaged' means an individual or a family, as the case may 
        be, whose annual income does not exceed 185 percent of the 
        applicable family size income levels contained in the most 
        recent income poverty guidelines prescribed by the Office of 
        Management and Budget and based on data from the Bureau of the 
        Census.
            ``(4) School.--The term `school' means a public or private 
        nonprofit elementary, intermediate, or secondary school.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) State.--The term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the Virgin Islands, or a tribal 
        organization (as defined in section 4(l) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b(l))).''.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 361. REPEALERS.

    The following Acts are repealed:
            (1) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (Public Law 100-237; 101 Stat. 1733).
            (2) The Child Nutrition and WIC Reauthorization Act of 1989 
        (Public Law 101-147; 103 Stat. 877).

         Subtitle C--Other Repealers and Conforming Amendments

SEC. 371. AMENDMENTS TO LAWS RELATING TO CHILD PROTECTION BLOCK GRANT.

    (a) Abandoned Infants Assistance.--
            (1) Repealer.--The Abandoned Infants Assistance Act of 1988 
        (42 U.S.C. 670 note) is repealed.
            (2) Conforming amendment.--Section 421(7) of the Domestic 
        Volunteer Service Act of 1973 (42 U.S.C. 5061(7)) is amended to 
        read as follows:
            ``(7) the term `boarder baby' means an infant who is 
        medically cleared for discharge from an acute-care hospital 
        setting, but remains hospitalized because of a lack of 
        appropriate out-of-hospital placement alternatives;''.
    (b) Child Abuse Prevention and Treatment.--
            (1) Repealer.--The Child Abuse Prevention and Treatment Act 
        (42 U.S.C. 5101 et seq.) is repealed.
            (2) Conforming amendments.--The Victims of Crime Act of 
        1984 (42 U.S.C. 10601 et seq.) is amended--
                    (A) in section 1402--
                            (i) in subsection (d)--
                                    (I) by striking paragraph (2); and
                                    (II) by redesignating paragraphs 
                                (3) and (4) as paragraphs (2) and (3), 
                                respectively; and
                            (ii) by striking subsection (g); and
                    (B) by striking section 1404.
    (c) Adoption Opportunities.--The Child Abuse Prevention and 
Treatment and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.) is 
repealed.
    (d) Crisis Nurseries.--The Temporary Child Care for Children with 
Disabilities and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.) 
is amended--
            (1) in the title heading by striking ``AND CRISIS 
        NURSERIES'';
            (2) in section 201 by striking ``and Crisis Nurseries'';
            (3) in section 202--
                    (A) by striking ``provide: (A) temporary'' and 
                inserting ``to provide temporary''; and
                    (B) by striking ``children, and (B)'' and all that 
                follows through the period and inserting ``children.'';
            (4) by striking section 204; and
            (5) in section 205--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(A) by striking ``or 
                        204''; and
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraph (D); 
                                and
                                    (II) by redesignating subparagraph 
                                (E) as subparagraph (D);
                    (B) by striking subsection (b)(3); and
                    (C) in subsection (d)--
                            (i) by striking paragraph (3); and
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraph (3) and (4), respectively.
    (e) Missing Children's Assistance Act.--The Missing Children's 
Assistance Act (42 U.S.C. 5771-5779) is repealed.
    (f) Family Support Centers.--Subtitle F of title VII of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11481-11489) is 
repealed.
    (g) Investigation and Prosecution of Child Abuse Cases.--Subtitle A 
of title II of the Victims of Child Abuse Act of 1990 (42 U.S.C. 13001-
13004) is repealed.
    (h) Repeal of Family Unification Program.--Subsection (x) of 
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f(x)) 
is repealed.

                     Subtitle D--Related Provisions

SEC. 381. REQUIREMENT THAT DATA RELATING TO THE INCIDENCE OF POVERTY IN 
              THE UNITED STATES BE PUBLISHED AT LEAST EVERY 2 YEARS.

    (a) In General.--The Secretary shall, to the extent feasible, 
produce and publish for each State, county, and local unit of general 
purpose government for which data have been compiled in the then most 
recent census of population under section 141(a) of title 13, United 
States Code, and for each school district, data relating to the 
incidence of poverty. Such data may be produced by means of sampling, 
estimation, or any other method that the Secretary determines will 
produce current, comprehensive, and reliable data.
    (b) Content; Frequency.--Data under this section--
            (1) shall include--
                    (A) for each school district, the number of 
                children age 5 to 17, inclusive, in families below the 
                poverty level; and
                    (B) for each State and county referred to in 
                subsection (a), the number of individuals age 65 or 
                older below the poverty level; and
            (2) shall be published--
                    (A) for each State, county, and local unit of 
                general purpose government referred to in subsection 
                (a), in 1996 and at least every second year thereafter; 
                and
                    (B) for each school district, in 1998 and at least 
                every second year thereafter.
    (c) Authority To Aggregate.--
            (1) In general.--If reliable data could not otherwise be 
        produced, the Secretary may, for purposes of subsection 
        (b)(1)(A), aggregate school districts, but only to the extent 
        necessary to achieve reliability.
            (2) Information relating to use of authority.--Any data 
        produced under this subsection shall be appropriately 
        identified and shall be accompanied by a detailed explanation 
        as to how and why aggregation was used (including the measures 
        taken to minimize any such aggregation).
    (d) Report To Be Submitted Whenever Data Is Not Timely Published.--
If the Secretary is unable to produce and publish the data required 
under this section for any State, county, local unit of general purpose 
government, or school district in any year specified in subsection 
(b)(2), a report shall be submitted by the Secretary to the President 
of the Senate and the Speaker of the House of Representatives, not 
later than 90 days before the start of the following year, enumerating 
each government or school district excluded and giving the reasons for 
the exclusion.
    (e) Criteria Relating to Poverty.--In carrying out this section, 
the Secretary shall use the same criteria relating to poverty as were 
used in the then most recent census of population under section 141(a) 
of title 13, United States Code (subject to such periodic adjustments 
as may be necessary to compensate for inflation and other similar 
factors).
    (f) Consultation.--The Secretary shall consult with the Secretary 
of Education in carrying out the requirements of this section relating 
to school districts.
    (g) Definition.--For the purpose of this section, the term 
``Secretary'' means the Secretary of Health and Human Services.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $1,500,000 for each of fiscal 
years 1996 through 2000.

SEC. 382. DATA ON PROGRAM PARTICIPATION AND OUTCOMES.

    (a) In General.--The Secretary shall produce data relating to 
participation in programs authorized by this Act by families and 
children. Such data may be produced by means of sampling, estimation, 
or any other method that the Secretary determines will produce 
comprehensive and reliable data.
    (b) Content.--Data under this section shall include, but not be 
limited to--
            (1) changes in participation in welfare, health, education, 
        and employment and training programs, for families and 
        children, the duration of such participation, and the causes 
        and consequences of any changes in program participation;
            (2) changes in employment status, income and poverty 
        status, family structure and process, and children's well-
        being, over time, for families and children participating in 
        Federal programs and, if appropriate, other low-income families 
        and children, and the causes and consequences of such changes; 
        and
            (3) demographic data, including household composition, 
        marital status, relationship of householders, racial and ethnic 
        designation, age, and educational attainment.
    (c) Frequency.--Data under this section shall reflect the period 
1993 through 2002, and shall be published as often as practicable 
during that time, but in any event no later than December 31, 2003.
    (d) Definition.--For the purpose of this section, the term 
``Secretary'' means the Secretary of Health and Human Services.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,500,000 in fiscal year 1996, 
$10,000,000 for each of fiscal years 1997 through 2002, and $2,000,000 
for fiscal year 2003.

     Subtitle E--General Effective Date; Preservation of Actions, 
                        Obligations, and Rights

SEC. 391. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall take effect on October 1, 1995.

SEC. 392. APPLICATION OF AMENDMENTS AND REPEALERS.

    An amendment or repeal made by this title shall not apply with 
respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to financial assistance provided 
        before the effective date of amendment or repeal, as the case 
        may be, under the Act so amended or so repealed; and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such 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.

         Subtitle A--Eligibility for Federal Benefits Programs

SEC. 401. INELIGIBILITY OF ILLEGAL ALIENS FOR CERTAIN PUBLIC BENEFITS 
              PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), any alien who is not 
lawfully present in the United States shall not be eligible for any 
Federal means-tested public benefits program (as defined in section 
431(d)(2)).
    (b) Exception for Emergency Assistance.--Subsection (a) shall not 
apply to the provision of non-cash, in-kind emergency assistance 
(including emergency medical services).
    (c) Treatment of Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
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, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).

SEC. 402. INELIGIBILITY OF NONIMMIGRANTS FOR CERTAIN PUBLIC BENEFITS 
              PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), any alien who is 
lawfully present in the United States as a nonimmigrant shall not be 
eligible for any Federal means-tested public benefits program.
    (b) Exceptions.--
            (1) Emergency assistance.--Subsection (a) shall not apply 
        to the provision of non-cash, in-kind emergency assistance 
        (including emergency medical services).
            (2) Aliens granted asylum.--Subsection (a) shall not apply 
        to an alien who is granted asylum under section 208 of the 
        Immigration and Nationality Act or whose deportation has been 
        withheld under section 243(h) of such Act.
            (3) Current legal resident exception.--Subsection (a) shall 
        not apply to the eligibility of an alien for a program until 1 
        year after the date of the enactment of this Act if, on such 
        date of enactment, the alien is lawfully residing in any State 
        or any territory or possession of the United States and is 
        eligible for the program.
            (4) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.
    (c) Treatment of Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
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, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).
    (d) Treatment of Aliens Paroled into the United States.--An alien 
who is paroled into the United States under section 212(d)(5) of the 
Immigration and Nationality Act for a period of less than 1 year shall 
be considered, for purposes of this subtitle, to be lawfully present in 
the United States as a nonimmigrant.

SEC. 403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5 SPECIFIED FEDERAL 
              PUBLIC BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), any alien who is 
lawfully present in the United States (other than as a nonimmigrant to 
which section 402(a) or 402(c) applies) shall not be eligible for any 
of the following Federal means-tested public benefits programs:
            (1) SSI.--The supplemental security income program under 
        title XVI of the Social Security Act.
            (2) 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.
            (3) Social services block grant.--The program of block 
        grants to States for social services under title XX of the 
        Social Security Act.
            (4) Medicaid.--The program of medical assistance under 
        title XIX of the Social Security Act.
            (5) Food stamps.--The program under the Food Stamp Act of 
        1977.
    (b) Exceptions.--
            (1) Time-limited exception for refugees.--Subsection (a) 
        shall not apply to an alien admitted to the United States as a 
        refugee under section 207 of the Immigration and Nationality 
        Act until 5 years after the date of such alien's arrival into 
        the United States.
            (2) Certain long-term, permanent resident, aged aliens.--
        Subsection (a) shall not apply to an alien who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Veteran and active duty exception.--Subsection (a) 
        shall not apply to an alien who is lawfully residing in any 
        State (or any territory or possession of the United States) and 
        is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge,
                    (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).
        Subparagraph (A) shall not apply in the case of a veteran who 
        has been separated from military service on account of 
        alienage.
            (4) Emergency assistance.--Subsection (a) shall not apply 
        to the provision of non-cash, in-kind emergency assistance 
        (including emergency medical services).
            (5) Transition for current beneficiaries.--Subsection (a) 
        shall not apply to the eligibility of an alien for a program 
        until 1 year after the date of the enactment of this Act if, on 
        such date of enactment, the alien is lawfully residing in any 
        State or any territory or possession of the United States and 
        is eligible for the program.

SEC. 404. 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 subtitle.

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

SEC. 411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUBLIC 
              BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, no alien who is not 
lawfully present in the United States (as determined in accordance with 
regulations of the Attorney General) shall be eligible for any State 
means-tested public benefits program (as defined in section 431(d)(3)).
    (b) Exception for Emergency Assistance.--Subsection (a) shall not 
apply to the provision of non-cash, in-kind emergency assistance 
(including emergency medical services).

SEC. 412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE AND LOCAL PUBLIC 
              BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, no alien who is lawfully 
present in the United States as a nonimmigrant shall be eligible for 
any State means-tested public benefits program (as defined in section 
431(d)(3)).
    (b) Exceptions.--
            (1) Emergency assistance.--The limitations under subsection 
        (a) shall not apply to the provision of non-cash, in-kind 
        emergency assistance (including emergency medical services).
            (2) Aliens granted asylum.--Subsection (a) shall not apply 
        to an alien who is granted asylum under section 208 of the 
        Immigration and Nationality Act or whose deportation has been 
        withheld under section 243(h) of such Act.
            (3) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.
    (c) Treatment of Aliens Paroled into the United States.--An alien 
who is paroled into the United States under section 212(d)(5) of the 
Immigration and Nationality Act for a period of less than 1 year shall 
be considered, for purposes of this subtitle, to be lawfully present in 
the United States as a nonimmigrant.

SEC. 413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF IMMIGRANTS FOR STATE 
              AND LOCAL MEANS-TESTED PUBLIC BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, a State is authorized to 
determine eligibility requirements for aliens who are lawfully present 
in the United States (other than as a nonimmigrant to which section 
412(a) or 412(c) applies) for any State means-tested public benefits 
program.
    (b) Exceptions.--
            (1) Time-limited exception for refugees.--The authority 
        under subsection (a) shall not apply to an alien admitted to 
        the United States as a refugee under section 207 of the 
        Immigration and Nationality Act until 5 years after the date of 
        such alien's arrival into the United States.
            (2) Certain long-term, permanent resident, aged aliens.--
        The authority under subsection (a) shall not apply to an alien 
        who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Veteran and active duty exception.--The authority under 
        subsection (a) shall not apply to an alien who is lawfully 
        residing in any State (or any territory or possession of the 
        United States) and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge,
                    (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).
        Subparagraph (A) shall not apply in the case of a veteran who 
        has been separated from military service on account of 
        alienage.
            (4) Emergency assistance.--The authority under subsection 
        (a) shall not apply to the provision of non-cash, in-kind 
        emergency assistance (including emergency medical services).
            (5) Transition.--The authority under subsection (a) shall 
        not apply to eligibility of an alien for a State means-tested 
        public benefits program until 1 year after the date of the 
        enactment of this Act if, on such date of enactment, the alien 
        is lawfully present in the United States and is eligible for 
        benefits under the program. Nothing in the previous sentence is 
        intended to address alien eligibility for such a program before 
        the date of the enactment of this Act.

      Subtitle C--Attribution of Income and Affidavits of Support

SEC. 421. ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO FAMILY-
              SPONSORED IMMIGRANTS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (c), in determining the eligibility 
and the amount of benefits of an alien for any means-tested public 
benefits program (as defined in section 431(d)) the income and 
resources of the alien shall be deemed to include--
            (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 422) in 
        behalf of such alien, and
            (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 achieves United States citizenship 
through naturalization pursuant to chapter 2 of title III of the 
Immigration and Nationality Act.
    (c) Exception for Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
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.

SEC. 422. 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.--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--
            ``(1) which is legally enforceable against the sponsor by 
        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; and
            ``(2) 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).
Such contract 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) Statutory Construction.--Nothing in this section shall be 
construed to grant third party beneficiary rights to any sponsored 
alien under an affidavit of support.
    ``(d) Notification of Change of Address.--(1) The sponsor shall 
notify the Federal Government 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)(1).
    ``(2) 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 
        sponsored alien has received any benefit under any means-tested 
        public benefits program, 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.
    ``(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; and
                    ``(C) is domiciled in any State.
            ``(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 a 
date 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.

                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this section, the 
terms used in this title have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) Lawful Presence.--For purposes of this title, the determination 
of whether an alien is lawfully present in the United States shall be 
made in accordance with regulations of the Attorney General. An 
individual shall not be considered to be lawfully present in the United 
States for purposes of this title merely because the alien may be 
considered to be permanently residing in the United States under color 
of law for purposes of any particular program.
    (c) State.--As used in this title, the term ``State'' includes the 
District of Columbia, Puerto Rico, the Virgin Islands, Guam, the 
Northern Mariana Islands, and American Samoa.
    (d) Public Benefits Programs.--As used in this title--
            (1) Means-tested 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.
            (2) Federal means-tested public benefits program.--The term 
        ``Federal means-tested public benefits program'' means a means-
        tested public benefits program of (or contributed to by) the 
        Federal Government and under which the Federal Government has 
        specified standards for eligibility and includes the programs 
        specified in section 403(a).
            (3) State means-tested public benefits program.--The term 
        ``State means-tested public benefits program'' means a means-
        tested public benefits program 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 means-tested public benefits program.

SEC. 432. CONSTRUCTION.

    Nothing in this title shall be construed as addressing alien 
eligibility for governmental programs that are not means-tested public 
benefits programs.

                   Subtitle E--Conforming Amendments

SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

    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.''.

         TITLE V--FOOD STAMP REFORM AND COMMODITY DISTRIBUTION

SEC. 501. SHORT TITLE.

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

             Subtitle A--Commodity Distribution Provisions

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ``Commodity Distribution Act of 
1995''.

SEC. 512. AVAILABILITY OF COMMODITIES.

    (a) Notwithstanding any other provision of law, the Secretary of 
Agriculture (hereinafter in this subtitle referred to as the 
``Secretary'') is authorized during fiscal years 1996 through 2000 to 
purchase a variety of nutritious and useful commodities and distribute 
such commodities to the States for distribution in accordance with this 
subtitle.
    (b) In addition to the commodities described in subsection (a), the 
Secretary may expend funds made available to carry out section 32 of 
the Act of August 24, 1935 (7 U.S.C. 612c), which are not expended or 
needed to carry out such sections, to purchase, process, and distribute 
commodities of the types customarily purchased under such section to 
the States for distribution in accordance with this subtitle.
    (c) In addition to the commodities described in subsections (a) and 
(b), agricultural commodities and the products thereof made available 
under clause (2) of the second sentence of section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c), may be made available by the Secretary 
to the States for distribution in accordance with this subtitle.
    (d) In addition to the commodities described in subsections (a), 
(b), and (c), commodities acquired by the Commodity Credit Corporation 
that the Secretary determines, in the discretion of the Secretary, are 
in excess of quantities need to--
            (1) carry out other domestic donation programs;
            (2) meet other domestic obligations;
            (3) meet international market development and food aid 
        commitments; and
            (4) carry out the farm price and income stabilization 
        purposes of the Agricultural Adjustment Act of 1938, the 
        Agricultural Act of 1949, and the Commodity Credit Corporation 
        Charter Act;
shall be made available by the Secretary, without charge or credit for 
such commodities, to the States for distribution in accordance with 
this subtitle.
    (e) During each fiscal year, the types, varieties, and amounts of 
commodities to be purchased under this subtitle shall be determined by 
the Secretary. In purchasing such commodities, except those commodities 
purchased pursuant to section 520, the Secretary shall, to the extent 
practicable and appropriate, make purchases based on--
            (1) agricultural market conditions;
            (2) the preferences and needs of States and distributing 
        agencies; and
            (3) the preferences of the recipients.

SEC. 513. STATE, LOCAL AND PRIVATE SUPPLEMENTATION OF COMMODITIES.

    (a) The Secretary shall establish procedures under which State and 
local agencies, recipient agencies, or any other entity or person may 
supplement the commodities distributed under this subtitle for use by 
recipient agencies with nutritious and wholesome commodities that such 
entities or persons donate for distribution, in all or part of the 
State, in addition to the commodities otherwise made available under 
this subtitle.
    (b) States and eligible recipient agencies may use--
            (1) the funds appropriated for administrative cost under 
        section 519(b);
            (2) equipment, structures, vehicles, and all other 
        facilities involved in the storage, handling, or distribution 
        of commodities made available under this subtitle; and
            (3) the personnel, both paid or volunteer, involved in such 
        storage, handling, or distribution;
to store, handle or distribute commodities donated for use under 
subsection (a).
    (c) States and recipient agencies shall continue, to the maximum 
extent practical, to use volunteer workers, and commodities and other 
foodstuffs donated by charitable and other organizations, in the 
distribution of commodities under this subtitle.

SEC. 514. STATE PLAN.

    (a) A State seeking to receive commodities under this subtitle 
shall submit a plan of operation and administration every four years to 
the Secretary for approval. The plan may be amended at any time, with 
the approval of the Secretary.
    (b) The State plan, at a minimum, shall--
            (1) designate the State agency responsible for distributing 
        the commodities received under this subtitle;
            (2) set forth a plan of operation and administration to 
        expeditiously distribute commodities under this subtitle in 
        quantities requested to eligible recipient agencies in 
        accordance with sections 516 and 520;
            (3) set forth the standards of eligibility for recipient 
        agencies; and
            (4) set forth the standards of eligibility for individual 
        or household recipients of commodities, which at minimum shall 
        require--
                    (A) individuals or households to be comprised of 
                needy persons; and
                    (B) individual or household members to be residing 
                in the geographic location served by the distributing 
                agency at the time of application for assistance.
    (c) The Secretary shall encourage each State receiving commodities 
under this subtitle to establish a State advisory board consisting of 
representatives of all interested entities, both public and private, in 
the distribution of commodities received under this subtitle in the 
State.
    (d) A State agency receiving commodities under this subtitle may--
            (1)(A) enter into cooperative agreements with State 
        agencies of other States to jointly provide commodities 
        received under this subtitle to eligible recipient agencies 
        that serve needy persons in a single geographical area which 
        includes such States; or
            (B) transfer commodities received under this subtitle to 
        any such eligible recipient agency in the other State under 
        such agreement; and
            (2) advise the Secretary of an agreement entered into under 
        this subsection and the transfer of commodities made pursuant 
        to such agreement.

SEC. 515. ALLOCATION OF COMMODITIES TO STATES.

    (a) In each fiscal year, except for those commodities purchased 
under section 520, the Secretary shall allocate the commodities 
distributed under this subtitle as follows:
            (1) 60 percent of the such total value of commodities shall 
        be allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 60 percent of 
        such total value as the number of persons in households within 
        the State having incomes below the poverty line bears to the 
        total number of persons in households within all States having 
        incomes below such poverty line. Each State shall receive the 
        value of commodities allocated under this paragraph.
            (2) 40 percent of such total value of commodities shall be 
        allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 40 percent of 
        such total value as the average monthly number of unemployed 
        persons within the State bears to the average monthly number of 
        unemployed persons within all States during the same fiscal 
        year. Each State shall receive the value of commodities 
        allocated to the State under this paragraph.
    (b)(1) The Secretary shall notify each State of the amount of 
commodities that such State is allotted to receive under subsection (a) 
or this subsection, if applicable. Each State shall promptly notify the 
Secretary if such State determines that it will not accept any or all 
of the commodities made available under such allocation. On such a 
notification by a State, the Secretary shall reallocate and distribute 
such commodities as the Secretary deems appropriate and equitable. The 
Secretary shall further establish procedures to permit States to 
decline to receive portions of such allocation during each fiscal year 
as the State determines is appropriate and the Secretary shall 
reallocate and distribute such allocation as the Secretary deems 
appropriate and equitable.
    (2) In the event of any drought, flood, hurricane, or other natural 
disaster affecting substantial numbers of persons in a State, county, 
or parish, the Secretary may request that States unaffected by such a 
disaster consider assisting affected States by allowing the Secretary 
to reallocate commodities from such unaffected State to States 
containing areas adversely affected by the disaster.
    (c) Purchases of commodities under this subtitle shall be made by 
the Secretary at such times and under such conditions as the Secretary 
determines appropriate within each fiscal year. All commodities so 
purchased for each such fiscal year shall be delivered at reasonable 
intervals to States based on the allocations and reallocations made 
under subsections (a) and (b), and or carry out section 520, not later 
than December 31 of the following fiscal year.

SEC. 516. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF COMMODITIES.

    (a) In distributing the commodities allocated under subsections (a) 
and (b) of section 515, the State agency, under procedures determined 
by the State agency, shall offer, or otherwise make available, its full 
allocation of commodities for distribution to emergency feeding 
organizations.
    (b) If the State agency determines that the State will not exhaust 
the commodities allocated under subsections (a) and (b) of section 515 
through distribution to organizations referred to in subsection (a), 
its remaining allocation of commodities shall be distributed to 
charitable institutions described in section 523(3) not receiving 
commodities under subsection (a).
    (c) If the State agency determines that the State will not exhaust 
the commodities allocated under subsections (a) and (b) of section 515 
through distribution to organizations referred to in subsections (a) 
and (b), its remaining allocation of commodities shall be distributed 
to any eligible recipient agency not receiving commodities under 
subsections (a) and (b).

SEC. 517. INITIAL PROCESSING COSTS.

    The Secretary may use funds of the Commodity Credit Corporation to 
pay the costs of initial processing and packaging of commodities to be 
distributed under this subtitle into forms and in quantities suitable, 
as determined by the Secretary, for use by the individual households or 
eligible recipient agencies, as applicable. The Secretary may pay such 
costs in the form of Corporation-owned commodities equal in value to 
such costs. The Secretary shall ensure that any such payments in kind 
will not displace commercial sales of such commodities.

SEC. 518. ASSURANCES; ANTICIPATED USE.

    (a) The Secretary shall take such precautions as the Secretary 
deems necessary to ensure that commodities made available under this 
subtitle will not displace commercial sales of such commodities or the 
products thereof. The Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate by December 31, 
1997, and not less than every two years thereafter, a report as to 
whether and to what extent such displacements or substitutions are 
occurring.
    (b) The Secretary shall determine that commodities provided under 
this subtitle shall be purchased and distributed only in quantities 
that can be consumed without waste. No eligible recipient agency may 
receive commodities under this subtitle in excess of anticipated use, 
based on inventory records and controls, or in excess of its ability to 
accept and store such commodities.

SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

    (a) Purchase of Commodities.--To carry out this subtitle, there are 
authorized to be appropriated $260,000,000 for each of the fiscal years 
1996 through 2000 to purchase, process, and distribute commodities to 
the States in accordance with this subtitle.
    (b) Administrative Funds.--
            (1) There are authorized to be appropriated $40,000,000 for 
        each of the fiscal years 1996 through 2000 for the Secretary to 
        make available to the States for State and local payments for 
        costs associated with the distribution of commodities by 
        eligible recipient agencies under this subtitle, excluding 
        costs associated with the distribution of those commodities 
        distributed under section 520. Funds appropriated under this 
        paragraph for any fiscal year shall be allocated to the States 
        on an advance basis dividing such funds among the States in the 
        same proportions as the commodities distributed under this 
        subtitle for such fiscal year are allocated among the States. 
        If a State agency is unable to use all of the funds so 
        allocated to it, the Secretary shall reallocate such unused 
        funds among the other States in a manner the Secretary deems 
        appropriate and equitable.
            (2)(A) A State shall make available in each fiscal year to 
        eligible recipient agencies in the State not less than 40 
        percent of the funds received by the State under paragraph (1) 
        for such fiscal year, as necessary to pay for, or provide 
        advance payments to cover, the allowable expenses of eligible 
        recipient agencies for distributing commodities to needy 
        persons, but only to the extent such expenses are actually so 
        incurred by such recipient agencies.
            (B) As used in this paragraph, the term ``allowable 
        expenses'' includes--
                    (i) costs of transporting, storing, handling, 
                repackaging, processing, and distributing commodities 
                incurred after such commodities are received by 
                eligible recipient agencies;
                    (ii) costs associated with determinations of 
                eligibility, verification, and documentation;
                    (iii) costs of providing information to persons 
                receiving commodities under this subtitle concerning 
                the appropriate storage and preparation of such 
                commodities; and
                    (iv) costs of recordkeeping, auditing, and other 
                administrative procedures required for participation in 
                the program under this subtitle.
            (C) If a State makes a payment, using State funds, to cover 
        allowable expenses of eligible recipient agencies, the amount 
        of such payment shall be counted toward the amount a State must 
        make available for allowable expenses of recipient agencies 
        under this paragraph.
            (3) States to which funds are allocated for a fiscal year 
        under this subsection shall submit financial reports to the 
        Secretary, on a regular basis, as to the use of such funds. No 
        such funds may be used by States or eligible recipient agencies 
        for costs other than those involved in covering the expenses 
        related to the distribution of commodities by eligible 
        recipient agencies.
            (4)(A) Except as provided in subparagraph (B), to be 
        eligible to receive funds under this subsection, a State shall 
        provide in cash or in kind (according to procedures approved by 
        the Secretary for certifying these in-kind contributions) from 
        non-Federal sources a contribution equal to the difference 
        between--
                    (i) the amount of such funds so received; and
                    (ii) any part of the amount allocated to the State 
                and paid by the State--
                            (I) to eligible recipient agencies; or
                            (II) for the allowable expenses of such 
                        recipient agencies; for use in carrying out 
                        this subtitle.
            (B) Funds allocated to a State under this section may, upon 
        State request, be allocated before States satisfy the matching 
        requirement specified in subparagraph (A), based on the 
        estimated contribution required. The Secretary shall 
        periodically reconcile estimated and actual contributions and 
        adjust allocations to the State to correct for overpayments and 
        underpayments.
            (C) Any funds distributed for administrative costs under 
        section 520(b) shall not be covered by this paragraph.
            (5) States may not charge for commodities made available to 
        eligible recipient agencies, and may not pass on to such 
        recipient agencies the cost of any matching requirements, under 
        this subtitle.
    (c) The value of the commodities made available under subsections 
(c) and (d) of section 512, and the funds of the Commodity Credit 
Corporation used to pay the costs of initial processing, packaging 
(including forms suitable for home use), and delivering commodities to 
the States shall not be charged against appropriations authorized by 
this section.

SEC. 520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) From the funds appropriated under section 519(a), $94,500,000 
shall be used for each fiscal year to purchase and distribute 
commodities to supplemental feeding programs serving woman, infants, 
and children or elderly individuals (hereinafter in this section 
referred to as the ``commodity supplemental food program''), or serving 
both groups wherever located.
    (b) Not more than 20 percent of the funds made available under 
subsection (a) shall be made available to the States for State and 
local payments of administrative costs associated with the distribution 
of commodities by eligible recipient agencies under this section. 
Administrative costs for the purposes of the commodity supplemental 
food program shall include, but not be limited to, expenses for 
information and referral, operation, monitoring, nutrition education, 
start-up costs, and general administration, including staff, warehouse 
and transportation personnel, insurance, and administration of the 
State or local office.
    (c)(1) During each fiscal year the commodity supplemental food 
program is in operation, the types, varieties, and amounts of 
commodities to be purchased under this section shall be determined by 
the Secretary, but, if the Secretary proposes to make any significant 
changes in the types, varieties, or amounts from those that were 
available or were planned at the beginning of the fiscal year the 
Secretary shall report such changes before implementation to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation shall, to the extent that the Commodity Credit 
Corporation inventory levels permit, provide not less than 9,000,000 
pounds of cheese and not less than 4,000,000 pounds of nonfat dry milk 
in each of the fiscal years 1996 through 2000 to the Secretary. The 
Secretary shall use such amounts of cheese and nonfat dry milk to carry 
out the commodity supplemental food program before the end of each 
fiscal year.
    (d) The Secretary shall, in each fiscal year, approve applications 
of additional sites for the program, including sites that serve only 
elderly persons, in areas in which the program currently does not 
operate, to the full extent that applications can be approved within 
the appropriations available for the program for the fiscal year and 
without reducing actual participation levels (including participation 
of elderly persons under subsection (e)) in areas in which the program 
is in effect.
    (e) If a local agency that administers the commodity supplemental 
food program determines that the amount of funds made available to the 
agency to carry out this section exceeds the amount of funds necessary 
to provide assistance under such program to women, infants, and 
children, the agency, with the approval of the Secretary, may permit 
low-income elderly persons (as defined by the Secretary) to participate 
in and be served by such program.
    (f)(1) If it is necessary for the Secretary to pay a significantly 
higher than expected price for one or more types of commodities 
purchased under this section, the Secretary shall promptly determine 
whether the price is likely to cause the number of persons that can be 
served in the program in a fiscal year to decline.
    (2) If the Secretary determines that such a decline would occur, 
the Secretary shall promptly notify the State agencies charged with 
operating the program of the decline and shall ensure that a State 
agency notify all local agencies operating the program in the State of 
the decline.
    (g) Commodities distributed to States pursuant to this section 
shall not be considered in determining the commodity allocation to each 
State under section 515 or priority of distribution under section 516.

SEC. 521. COMMODITIES NOT INCOME.

    Notwithstanding any other provision of law, commodities distributed 
under this subtitle shall not be considered income or resources for 
purposes of determining recipient eligibility under any Federal, State, 
or local means-tested program.

SEC. 522. PROHIBITION AGAINST CERTAIN STATE CHARGES.

    Whenever a commodity is made available without charge or credit 
under this subtitle by the Secretary for distribution within the States 
to eligible recipient agencies, the State may not charge recipient 
agencies any amount that is in excess of the State's direct costs of 
storing, and transporting to recipient agencies the commodities minus 
any amount the Secretary provides the State for the costs of storing 
and transporting such commodities.

SEC. 523. DEFINITIONS.

    As used in this subtitle:
            (1) The term ``average monthly number of unemployed 
        persons'' means the average monthly number of unemployed 
        persons within a State in the most recent fiscal year for which 
        such information is available as determined by the Bureau of 
        Labor Statistics of the Department of Labor.
            (2) The term ``elderly persons'' means individuals 60 years 
        of age or older.
            (3) The term ``eligible recipient agency'' means a public 
        or nonprofit organization that administers--
                    (A) an institution providing commodities to 
                supplemental feeding programs serving women, infants, 
                and children or serving elderly persons, or serving 
                both groups;
                    (B) an emergency feeding organization;
                    (C) a charitable institution (including a hospital 
                and a retirement home, but excluding a penal 
                institution) to the extent that such institution serves 
                needy persons;
                    (D) a summer camp for children, or a child 
                nutrition program providing food service;
                    (E) a nutrition project operating under the Older 
                Americans Act of 1965, including such project that 
                operates a congregate nutrition site and a project that 
                provides home-delivered meals; or
                    (F) a disaster relief program;and that has been 
                designated by the appropriate State agency, or by the 
                Secretary, and approved by the Secretary for 
                participation in the program established under this 
                subtitle.
            (4) The term ``emergency feeding organization'' means a 
        public or nonprofit organization that administers activities 
        and projects (including the activities and projects of a 
        charitable institution, a food bank, a food pantry, a hunger 
        relief center, a soup kitchen, or a similar public or private 
        nonprofit eligible recipient agency) providing nutrition 
        assistance to relieve situations of emergency and distress 
        through the provision of food to needy persons, including low-
        income and unemployed persons.
            (5) The term ``food bank'' means a public and charitable 
        institution that maintains an established operation involving 
        the provision of food or edible commodities, or the products 
        thereof, to food pantries, soup kitchens, hunger relief 
        centers, or other food or feeding centers that, as an integral 
        part of their normal activities, provide meals or food to feed 
        needy persons on a regular basis.
            (6) The term ``food pantry'' means a public or private 
        nonprofit organization that distributes food to low-income and 
        unemployed households, including food from sources other than 
        the Department of Agriculture, to relieve situations of 
        emergency and distress.
            (7) The term ``needy persons'' means--
                    (A) individuals who have low incomes or who are 
                unemployed, as determined by the State (in no event 
                shall the income of such individual or household exceed 
                185% of the poverty line);
                    (B) households certified as eligible to participate 
                in the food stamp program under the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.); or
                    (C) individuals or households participating in any 
                other Federal, or Federally assisted, means-tested 
                program.
            (8) The term ``poverty line'' has the same meaning given 
        such term in section 673(2) of the Community Services Block 
        Grant Act (42 U.S.C. 9902(2)).
            (9) The term ``soup kitchen'' means a public and charitable 
        institution that, as integral part of its normal activities, 
        maintains an established feeding operation to provide food to 
        needy homeless persons on a regular basis.

SEC. 524. REGULATIONS.

    (a) The Secretary shall issue regulations within 120 days to 
implement this subtitle.
    (b) In administering this subtitle, the Secretary shall minimize, 
to the maximum extent practicable, the regulatory, recordkeeping, and 
paperwork requirements imposed on eligible recipient agencies.
    (c) The Secretary shall as early as feasible but not later than the 
beginning of each fiscal year, publish in the Federal Register a 
nonbinding estimate of the types and quantities of commodities that the 
Secretary anticipates are likely to be made available under the 
commodity distribution program under this subtitle during the fiscal 
year.
    (d) The regulations issued by the Secretary under this section 
shall include provisions that set standards with respect to liability 
for commodity losses for the commodities distributed under this 
subtitle in situations in which there is no evidence of negligence or 
fraud, and conditions for payment to cover such losses. Such provisions 
shall take into consideration the special needs and circumstances of 
eligible recipient agencies.

SEC. 525. FINALITY OF DETERMINATIONS.

    Determinations made by the Secretary under this subtitle and the 
facts constituting the basis for any donation of commodities under this 
subtitle, or the amount thereof, when officially determined in 
conformity with the applicable regulations prescribed by the Secretary, 
shall be final and conclusive and shall not be reviewable by any other 
officer or agency of the Government.

SEC. 526. SALE OF COMMODITIES PROHIBITED.

    Except as otherwise provided in section 517, none of the 
commodities distributed under this subtitle shall be sold or otherwise 
disposed of in commercial channels in any form.

SEC. 527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

    (a) The Secretary, or a designee of the Secretary, shall have the 
authority to--
            (1) determine the amount of, settle, and adjust any claim 
        arising under this subtitle; and
            (2) waive such a claim if the Secretary determines that to 
        do so will serve the purposes of this subtitle.
    (b) Nothing contained in this section shall be construed to 
diminish the authority of the Attorney General of the United States 
under section 516 of title 28, United States Code, to conduct 
litigation on behalf of the United States.

SEC. 528. REPEALERS; AMENDMENTS.

    (a) The Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note) 
is repealed.
    (b) Amendments.--
            (1) The Hunger Prevention Act of 1988 (7 U.S.C. 612c note) 
        is amended--
                    (A) by striking section 110;
                    (C) by striking subtitle C; and
                    (B) by striking section 502.
            (2) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (7 U.S.C. 612c note) is amended by striking 
        section 4.
            (3) The Charitable Assistance and Food Bank Act of 1987 (7 
        U.S.C. 612c note) is amended by striking section 3.
            (4) The Food Security Act of 1985 (7 U.S.C. 612c note) is 
        amended--
                    (A) by striking section 1571; and
                    (B) in section 1562(d), by striking ``section 4 of 
                the Agricultural and Consumer Protection Act of 1973'' 
                and inserting ``section 110 of the Commodity 
                Distribution Act of 1995''.
            (5) The Agricultural and Consumer Protection Act of 1973 (7 
        U.S.C. 612c note) is amended--
                    (A) in section 4(a), by striking ``institutions 
                (including hospitals and facilities caring for needy 
                infants and children), supplemental feeding programs 
                serving women, infants and children or elderly persons, 
                or both, wherever located, disaster areas, summer camps 
                for children'' and inserting ``disaster areas'';
                    (B) in subsection 4(c), by striking ``the Emergency 
                Food Assistance Act of 1983'' and inserting ``the 
                Commodity Distribution Act of 1995''; and
                    (C) by striking section 5.
            (6) The Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 612c note) is amended by striking section 
        1773(f).

      Subtitle B--Simplification and Reform of Food Stamp Program

SEC. 531. SHORT TITLE.

    This subtitle may be cited as the ``Food Stamp Simplification and 
Reform Act of 1995''.

CHAPTER 1--SIMPLIFIED FOOD STAMP PROGRAM AND STATE ASSISTANCE FOR NEEDY 
                                FAMILIES

SEC. 541. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP PROGRAM.

    Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C. 2013(a)) is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) At the request of the State agency, a State may operate a 
program, as provided in section 24, within the State or any political 
subdivisions within the State in which households with one or more 
members receiving regular cash benefits under the program established 
by the State under the Temporary Assistance for Needy Families Block 
Grant will be issued food stamp benefits in accordance with the rules 
and procedures established--
            ``(A) by the State under the Temporary Assistance for Needy 
        Families Block Grant or this Act; or
            ``(B) under the food stamp program.''.

SEC. 542. SIMPLIFIED FOOD STAMP PROGRAM.

    (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended 
by adding the following new section:

``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) If a State elects to operate a program under section 4(a)(2) 
within the State or any political subdivision within the State--
            ``(1) households in which all members receive regular cash 
        benefits under the program established by the State under the 
        Temporary Assistance for Needy Families Block Grant shall be 
        automatically eligible to participate in the food stamp 
        program;
            ``(2) benefits under such program shall be determined under 
        the rules and procedures established by the State or political 
        subdivision under the Temporary Assistance for Needy Families 
        Block Grant or under the food stamp program, subject to 
        subsection (g).
    ``(b) In approving a State plan to carry out a program under 
section 4(a)(2), the Secretary shall certify that the average level of 
food stamp benefits per household participating in the program under 
such section for the State or political subdivision in which such 
program is in operation is not expected to exceed the average level of 
food stamp benefits per household that received benefits under the 
program established by a State under part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) in such area in the preceding 
fiscal year, adjusted for any changes in the thrifty food plan under 
section 3(o). The Secretary shall compute the permissible average level 
of food stamp benefits per household each year for each State or 
political subdivision in which such program is in operation and may 
require a State to report any information necessary to make such 
computation.
    ``(c) When the Secretary determines that the average level of food 
stamp benefits per household provided by the State or political 
subdivision under such program has exceeded the permissible average 
level of food stamp benefits per household for the State or political 
subdivision in which the program was in operation, the State or 
political subdivision shall pay to the Treasury of the United States 
the value of the food stamp benefits in excess of the permissible 
average level of food stamp benefits per household in the State or 
political subdivision within 90 days after the notification of such 
excess payments.
    ``(d)(1) A household against which a penalty is imposed (including 
a reduction in benefits or disqualification) for noncompliance with the 
program established by the State under the Temporary Assistance for 
Needy Families Block Grant may have the same penalty imposed against it 
(including a reduction in benefits or disqualification) in the program 
administered under this section.
    ``(2) If the penalty for noncompliance with the program established 
by the State under the Temporary Assistance for Needy Families block 
grant is a reduction in benefits in such program, the household shall 
not receive an increased allotment under the program administered under 
this section as a result of a decrease in the household's income (as 
determined by the State under this section) caused by such penalty.
    ``(3) Any household disqualified from the program administered 
under this subsection may, after such disqualification period has 
expired, apply for food stamp benefits under this Act and shall be 
treated as a new applicant.
    ``(e) If a State or political subdivision, at its option, operates 
a program under section 4(a)(2) for households that include any member 
who does not receive regular cash benefits under the program 
established by the State under the Temporary Assistance for Needy 
Families Block Grant, the Secretary shall ensure that the State plan 
provides that household eligibility shall be determined under this Act, 
benefits may be determined under the rules and procedures established 
by the State under the Temporary Assistance for Needy Families Block 
Grant or this Act, and benefits provided under this section shall be 
equitably distributed among all household members.
    ``(f)(1) Under the program operated under section 4(a)(2), the 
State may elect to provide cash assistance in lieu of allotments to all 
households that include a member who is employed and whose employment 
produces for the benefit of the member's household income that 
satisfies the requirements of paragraph (2).
    ``(2) The State, in electing to provide cash assistance under 
paragraph (1), at a minimum shall require that such earned income is--
            ``(A) not less that $350 per month;
            ``(B) earned from employment provided by a nongovernmental 
        employer, as determined by the State; and
            ``(C) received from the same employer for a period of 
        employment of not less than 3 consecutive months.
    ``(3) If a State that makes the election described in paragraph (1) 
identifies each household that receives cash assistance under this 
subsection--
            ``(A) the Secretary shall pay to the State an amount equal 
        to the value of the allotment that such household would be 
        eligible to receive under this section but for the operation of 
        this subsection;
            ``(B) the State shall provide such amount to the household 
        as cash assistance in lieu of such allotment; and
            ``(C) for purposes of the food stamp program (other than 
        this section and section 4(a)(2))--
                    ``(i) such cash assistance shall be considered to 
                be an allotment; and
                    ``(ii) such household shall not receive any other 
                food stamp benefit for the period for which such cash 
                assistance is provided.
    ``(4) A State that makes the election in paragraph (1) shall--
            ``(A) increase the cash benefits provided to households 
        under this subsection to compensate for any State or local 
        sales tax that may be collected on purchases of food by any 
        household receiving cash benefits under this subsection, unless 
        the Secretary determines on the basis of information provided 
        by the State that the increase is unnecessary on the basis of 
        the limited nature of the items subject to the State or local 
        sales tax; and
            ``(B) pay the cost of any increase in cash benefits 
        required by paragraph (1).
    ``(5) After a State operates a program under this subsection for 2 
years, the State shall provide to the Secretary a written evaluation of 
the impact of cash assistance.
    ``(g) In operating a program under section 4(a)(2), the State or 
political subdivision may follow the rules and procedures established 
by the State or political subdivision under the Temporary Assistance 
for Needy Families Block Grant or under the food stamp program, except 
that the State or political subdivision shall comply with the 
requirements of--
            ``(1) subsections (a) through (g) of section 7 (relating to 
        the issuance and use of coupons);
            ``(2) section 8(a) (relating to the value of allotments, 
        except that a household's income may be determined under the 
        program established by the State under the Temporary Assistance 
        for Needy Families Block Grant);
            ``(3) section 8(b) (allotment not considered income or 
        resources);
            ``(4) subsections (a), (c), (d), and (n) of section 11 
        (relating to administration);
            ``(5) paragraphs (8), (12), (17), (19), (21), (26), and 
        (27) of section 11(e) (relating to the State plan);
            ``(6) section 11(e)(10) (relating to a fair hearing) or a 
        comparable requirement established by the State under the 
        Temporary Assistance for Needy Families Block Grant; and
            ``(7) section 16 (relating to administrative cost-sharing 
        and quality control).''.
    (b) Section 11(e) of the Food Stamp Act of 1977 (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 ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(26) the plans of the State agency for operating, at the 
        election of the State, a program under section 4(a)(2), 
        including--
                    ``(A) the rules and procedures to be followed by 
                the State to determine food stamp benefits;
                    ``(B) a statement specifying whether the program 
                operated by the State under section 4(a)(2) will 
                include households that include members who do not 
                receive regular cash benefits under the program 
                established by the State under the Temporary Assistance 
                for Needy Families Block Grant; and
                    ``(C) a description of the method by which the 
                State or political subdivision will carry out a quality 
                control system under section 16(c).''.

SEC. 543. CONFORMING AMENDMENTS.

    (a) Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is 
amended by striking subsection (e).
    (b) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsections (j), (k), and (l) as 
        subsections (i), (j), and (k), respectively.

                     CHAPTER 2--FOOD STAMP PROGRAM

SEC. 551. THRIFTY FOOD PLAN.

    Section (3)(o) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)) is 
amended by striking ``(4) through January 1, 1980, adjust the cost of 
such diet every January 1 and July 1'' and all that follows through the 
end of the subsection, and inserting the following: ``(4) on October 1, 
1995, adjust the cost of the thrifty food plan to reflect 103 percent 
of the cost of the thrifty food plan in June 1994 and increase such 
amount by 2 percent, rounding the result to the nearest lower dollar 
increment for each household size, and (5) on October 1, 1996, and each 
October 1 thereafter, increase the amount established for the preceding 
October 1, before such amount was rounded, by 2 percent, rounding the 
result to the nearest lower dollar increment for each household 
size.''.

SEC. 552. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.

    (a) Section 5(d)(11) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(d)(11)) is amended--
            (1) by striking ``(A)''; and
            (2) by striking ``or (B) under any State or local laws,'' 
        and all that follows through ``or impracticable to do so,''.
    (b) Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) 
is amended to read as follows:
    ``(e)(1) Deductions for Standard and Earned Income.--
            ``(A) In computing household income, the Secretary shall 
        allow a standard deduction of $134 a month for each household, 
        except that households in Alaska, Hawaii, Guam, and the Virgin 
        Islands of the United States shall be allowed a standard 
        deduction of $229, $189, $269, and $118, respectively.
            ``(B) All households with earned income shall also be 
        allowed an additional deduction of 20 percent of all earned 
        income (other than that excluded by subsection (d) of this 
        section and that earned under section 16(j)), to compensate for 
        taxes, other mandatory deductions from salary, and work 
        expenses, except that such additional deduction shall not be 
        allowed with respect to earned income that a household 
        willfully or fraudulently fails (as proven in a proceeding 
        provided for in section 6(b)) to report in a timely manner.
    ``(2) Dependent Care Deduction.--The Secretary shall allow 
households, a deduction with respect to expenses other than expenses 
paid on behalf of the household by a third party or amounts made 
available and excluded for the expenses under subsection (d)(3), the 
maximum allowable level of which shall be $200 a month for each 
dependent child under 2 years of age and $175 a month for each other 
dependent, for the actual cost of payments necessary for the care of a 
dependent when such care enables a household member to accept or 
continue employment, or training or education which is preparatory for 
employment.
    ``(3) Excess Shelter Expense Deduction.--
            ``(A) The Secretary shall allow households, other than 
        those households containing an elderly or disabled member, with 
        respect to expenses other than expenses paid on behalf of the 
        household by a third party, 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) Such excess shelter expense deduction shall not 
        exceed $231 a month in the 48 contiguous States and the 
        District of Columbia, and shall not exceed, in Alaska, Hawaii, 
        Guam, and the Virgin Islands of the United States, $402, $330, 
        $280, and $171 a month, respectively.
            ``(C)(i) Notwithstanding section 2605(f)) of the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)), a 
        household may not claim as a shelter expense any payment 
        received, or costs paid on its behalf, under the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).
            ``(ii) Notwithstanding section 2605(f)) of the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)), a State 
        agency may use a standard utility allowance as provided under 
        subparagraph (D) for heating and cooling expenses only if the 
        household incurs out-of-pocket heating or cooling expenses in 
        excess of any payment received, or costs paid on its behalf, 
        under the Low-Income Home Energy Assistance Act of 1981 (42 
        U.S.C. 8621 et seq.).
            ``(iii) For purposes of the food stamp program, assistance 
        provided under the Low-Income Home Energy Assistance Act of 
        1981 shall be considered to be prorated over the entire heating 
        or cooling season for which it was provided.
            ``(iv) At the end of any certification period and up to one 
        additional time during each twelve-month period, a State agency 
        shall allow a household to switch between any standard utility 
        allowance and a deduction based on its actual utility costs.
            ``(D)(i) 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 which does not 
        fluctuate within a year to reflect seasonal variations.
            ``(ii) An allowance for a heating or cooling expense may 
        not be used for a household that does not incur a heating or 
        cooling expense, as the case may be, or does incur a heating or 
        cooling expense but is located in a public housing unit which 
        has central utility meters and charges households, with regard 
        to such expense, only for excess utility costs.
            ``(iii) No such allowance may be used for a household that 
        shares such 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.
    ``(4) Homeless Shelter Deduction.--(A) A State shall develop a 
standard homeless shelter deduction, which shall not exceed $139 a 
month, for the expenses that may reasonably be expected to be incurred 
by households in which all members are homeless but are not receiving 
free shelter throughout the month. Subject to subparagraph (B), the 
State shall use such deduction in determining eligibility and 
allotments for such households.
    ``(B) The Secretary may prohibit the use of the standard homeless 
shelter deduction for households with extremely low shelter costs.
    ``(5) Elderly and Disabled Households.--
            ``(A) The Secretary shall allow households containing an 
        elderly or disabled member, with respect to expenses other than 
        expenses paid on behalf of the household by a third party--
                    ``(i) an excess medical expense deduction for that 
                portion of the actual cost of allowable medical 
                expenses, incurred by elderly or disabled members, 
                exclusive of special diets, that exceed $35 a month; 
                and
                    ``(ii) 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) State agencies shall offer eligible households a 
        method of claiming a deduction for recurring medical expenses 
        that are initially verified under the excess medical expense 
        deduction provided for in subparagraph (A), in lieu of 
        submitting information or verification on actual expenses on a 
        monthly basis. The method described in the preceding sentence 
        shall be designed to minimize the administrative burden for 
        eligible elderly and disabled household members choosing to 
        deduct their recurrent medical expenses pursuant to such 
        method, shall rely on reasonable estimates of the member's 
        expected medical expenses for the certification period 
        (including changes that can be reasonably anticipated based on 
        available information about the member's medical condition, 
        public or private medical insurance coverage, and the current 
        verified medical expenses incurred by the member), and shall 
        not require further reporting or verification of a change in 
        medical expenses if such a change has been anticipated for the 
        certification period.
    ``(6) Child Support Deduction.--Before determining the excess 
shelter expense deduction, the Secretary shall allow all households 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 such 
household member was legally obligated to make such payments, except 
that the Secretary is authorized to prescribe by regulation the 
methods, including calculation on a retrospective basis, that State 
agencies shall use to determine the amount of the deduction for child 
support payments.''.
    (c) Section 11(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(3)) is amended by striking ``Under the rules prescribed by the 
Secretary, a State agency shall develop standard estimates'' and all 
that follows through the end of the paragraph.

SEC. 553. VEHICLE ALLOWANCE.

    Section 5(g)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) 
is amended by striking ``a level set by the Secretary, which shall be 
$4,500 through August 31, 1994,'' and all that follows through the end 
of the paragraph, and inserting ``$4,550.''.

SEC. 554. WORK REQUIREMENTS.

    (a) Section 6(d) of the Food Stamp Act of 1977 (42 U.S.C. 2015(d)) 
is amended--
            (1) in paragraph (1)(A)(ii), by striking ``an employment 
        and training program under paragraph (4), to the extent 
        required under paragraph (4), including any reasonable 
        employment requirements as are prescribed by the State agency 
        in accordance with paragraph (4)'' and inserting ``a State job 
        search program'';
            (2) in paragraph (2)(A)--
                    (A) by striking ``title IV of the Social Security 
                Act (42 U.S.C. 602)'' and inserting ``the program 
                established by the State under the Temporary Assistance 
                for Needy Families Block Grant''; and
                    (B) by striking ``that is comparable to a 
                requirement of paragraph (1)''; and
            (3) by amending paragraph (4) to read as follows:
    ``(4)(A) Except as provided in subparagraphs (B), (C), and (D), an 
individual shall not be denied initial eligibility but shall be 
disqualified from the food stamp program if after 90 days from the 
certification of eligibility of such individual the individual was not 
employed a minimum of 20 hours per week, or does not participate in a 
program established under section 20 or a comparable program 
established by the State or local government.
    ``(B) Subparagraph (A) shall not apply in the case of an individual 
who--
            ``(i) is under eighteen or over fifty years of age;
            ``(ii) is certified by a physician as physically or 
        mentally unfit for employment;
            ``(iii) is a parent or other member of a household with 
        responsibility for the care of a dependent;
            ``(iv) is participating a minimum of 20 hours per week and 
        is in compliance with the requirements of--
                    ``(I) a program under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.);
                    ``(II) a program under section 236 of the Trade Act 
                of 1974 (19 U.S.C. 2296); or
                    ``(III) a program of employment or training 
                operated or supervised by an agency of State or local 
                government which meets standards deemed appropriate by 
                the Governor; or
            ``(v) would otherwise be exempt under subsection (d)(2).
            ``(C) Upon request of the State, the Secretary may waive 
        the requirements of subparagraph (A) in the case of some or all 
        individuals within all or part of the State if the Secretary 
        makes a determination that such area--
            ``(i) has an unemployment rate of over 10 percent; or
            ``(ii) does not have a sufficient number of jobs to provide 
        employment for individuals subject to this paragraph. The 
        Secretary shall report to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate on the basis on which the 
        Secretary made such a decision.
    ``(D) An individual who has been disqualified from the food stamp 
program under subparagraph (A) may reestablish eligibility for 
assistance if such person becomes exempt under subparagraph (B) or by--
            ``(i) becoming employed for a minimum of 20 hours per week 
        during any consecutive thirty-day period; or
            ``(ii) participating in a program established under section 
        20 or a comparable program established by the State or local 
        government.''.
    (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is 
amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) and (j) as subsections 
        (h) and (i), respectively.
    (c) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026), as 
amended by section 543(b), is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) through (k) as 
        subsections (d) through (j), respectively.
    (d) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 2029) is 
amended to read as follows:
    ``Sec. 20. (a)(1) The Secretary shall permit a State that applies 
and submits a plan in compliance with guidelines promulgated by the 
Secretary to operate a program within the State or any political 
subdivision within the State, under which persons who are required to 
work under section 6(d)(4) may accept an offer from the State or 
political subdivision to perform work on its behalf, or on behalf of a 
private nonprofit entity designated by the State or political 
subdivision, in order to continue to qualify for benefits after they 
have initially been judged eligible.
    ``(2) The Secretary shall promulgate guidelines pursuant to 
paragraph (1) which, to the maximum extent practicable, enable a State 
or political subdivision to design and operate a program that is 
compatible and consistent with similar programs operated by the State 
or political subdivision.
    ``(b) To be approved by the Secretary, a program shall provide that 
participants work, in return for compensation consisting of the 
allotment to which the household is entitled under section 8(a), with 
each hour of such work entitling that household to a portion of its 
allotment equal in value to 100 percent of the higher of the applicable 
State minimum wage or the Federal minimum hourly rate under the Fair 
Labor Standards Act of 1938.
    ``(c) No State or political subdivision that receives funds 
provided under this section shall replace any employed worker with an 
individual who is participating in a program under this section for the 
purposes of complying with section 6(d)(4). Such an individual may be 
placed in any position offered by the State or political subdivision 
that--
            ``(1) is a new position;
            ``(2) is a position that became available in the normal 
        course of conducting the business of the State or political 
        subdivision;
            ``(3) involves performing work that would otherwise be 
        performed on an overtime basis by a worker who is not an 
        individual participating in such program; or
            ``(4) that is a position which became available by shifting 
        a current employee to an alternate position.
    ``(d) The Secretary shall allocate among the States or political 
subdivisions in each fiscal year, from funds appropriated for the 
fiscal year under section 18(a)(1), the amount of $75,000,000 to assist 
in carrying out the program under this section during the fiscal year.
    ``(e)(1) In making the allocation required under subsection (d), 
the Secretary shall allocate to each State operating a program under 
this section that percentage of the total funds allocated under 
subsection (d) which equals the estimate of the Secretary of the 
percentage of participants who are required to work under section 
6(d)(4) that reside in such State.
    ``(2) The State shall promptly notify the Secretary if such State 
determines that it will not expend the funds allocated it under 
paragraph (1) and the Secretary shall reallocate such funds as the 
Secretary deems appropriate and equitable.
    ``(f) Notwithstanding subsection (d), the Secretary shall ensure 
that each State operating a program under this section is allocated at 
least $50,000 by reducing, to the extent necessary, the funds allocated 
to those States allocated more than $50,000.
    ``(g) If, in carrying out such program during such fiscal year, a 
State or political subdivision incurs costs that exceed the amount 
allocated to the State agency under subsection (d)--
            ``(1) the Secretary shall pay such State agency an amount 
        equal to 50 percent of such additional costs, subject to the 
        first limitation in paragraph (2); and
            ``(2) the Secretary shall also reimburse each State agency 
        in an amount equal to 50 percent of the total amount of 
        payments made or costs incurred by the State or political 
        subdivision in connection with transportation costs and other 
        expenses reasonably necessary and directly related to 
        participation in a program under this section, except that such 
        total amount shall not exceed an amount representing $25 per 
        participant per month for costs of transportation and other 
        actual costs and such reimbursement shall not be made out of 
        funds allocated under subsection (d).
    ``(h) The Secretary may suspend or cancel some or all of these 
payments, or may withdraw approval from a State or political 
subdivision to operate a program, upon a finding that the State or 
political subdivision has failed to comply with the requirements of 
this section.''.
    (e) Section 7(i)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(i)(6)) is amended by striking ``section 17(f)'' and inserting 
``17(e)''.

SEC. 555. COMPARABLE TREATMENT OF DISQUALIFIED INDIVIDUALS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is amended 
by adding at the end the following new subsection:
    ``(i) An individual who is a member of a household who would 
otherwise be eligible to participate in the food stamp program under 
this section and who has been disqualified for noncompliance with 
program requirements from the program established by the State under 
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
shall not be eligible to participate in the food stamp program during 
the period such disqualification is in effect.''.

SEC. 556. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)) 
is amended--
            (1) by amending paragraph (1) to read as follows:
    ``(1)(A) State agencies are encouraged to implement an on-line 
electronic benefit transfer system in which household benefits 
determined under section 8(a) or section 24 are issued from and stored 
in a central data bank and electronically accessed by household members 
at the point-of-sale.
    ``(B) Subject to paragraph (2), a State is authorized to procure 
and implement an on-line electronic benefit transfer system under the 
terms, conditions, and design that the State deems appropriate.
    ``(C) Upon request of a State, the Secretary may waive any 
provision of this Act prohibiting the effective implementation of an 
electronic benefit transfer system under this subsection.'';
            (2) in paragraph (2), by striking ``the approval of''; and
            (3) in paragraph (3), by striking ``the Secretary shall not 
        approve such a system unless--'' and inserting ``such system 
        shall provide that--''.
    (b) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended 
by section 542(a), is amended by adding at the end the following new 
section:

``SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    ``(a) Upon fully implementing an electronic benefit transfer system 
which operates in the entire State, a State may, subject to the 
provisions of this section, elect to receive a grant for any fiscal 
year to operate a low-income nutrition assistance program in such 
fiscal year in lieu of the food stamp program.
    ``(b)(1) A State that meets the requirements of this section and 
elects to operate such program, shall receive each fiscal year under 
this section the sum of--
            ``(A)(i) the total dollar value of all benefits issued 
        under the food stamp program by the State during fiscal year 
        1994; or
            ``(ii) the average per fiscal year of the total dollar 
        value of all benefits issued under the food stamp program by 
        the State during fiscal years 1992 through 1994; and
            ``(B)(i) the total amount received by the State for 
        administrative costs under section 16(a) for fiscal year 1994; 
        or
            ``(ii) the average per fiscal year of the total amount 
        received by the State for administrative costs under section 
        16(a) for fiscal years 1992 through 1994.
    ``(2) Upon approval by the Secretary of the plan submitted by a 
State under subsection (c), the Secretary shall pay to the State at 
such times and in such manner as the Secretary may determine, the 
amount to which the State is eligible under subsection (b)(1).
    ``(c) To be eligible to operate a low-income nutrition assistance 
program under this section, a State shall submit for approval each 
fiscal year a plan of operation specifying the manner in which such a 
program will be conducted by the State. Such plan shall--
            ``(1) certify that the State has implemented a state-wide 
        electronic benefit transfer system in accordance with section 
        7(i);
            ``(2) designate a single State agency responsible for the 
        administration of the low-income nutrition assistance program 
        under this section;
            ``(3) assess the food and nutrition needs of needy persons 
        residing in the State;
            ``(4) limit the assistance to be provided under this 
        section to the purchase of food;
            ``(5) describe the persons to whom such assistance will be 
        provided;
            ``(6) assure the Secretary that assistance will be provided 
        to the most needy persons in the State and that applicants for 
        assistance shall have adequate notice and fair hearings 
        comparable to those required under section 11;
            ``(7) provide that, in the operation of the low-income 
        nutrition assistance program, there shall be no discrimination 
        on the basis of race, sex, religion, national origin, or 
        political beliefs; and
            ``(8) include other information as may be required by the 
        Secretary.
    ``(d) Payments made under this section to the State may be expended 
only in the fiscal year for which such payments are distributed, except 
that the State may reserve up to 5 percent of the grant received for a 
fiscal year to provide assistance under this section in the subsequent 
fiscal year: Provided, That such reserved funds may not total more than 
20 percent of the total grant received under this section for a fiscal 
year.
    ``(e) The State agency shall keep records concerning the operation 
of the program carried out under this section and shall make such 
records available to the Secretary and the Comptroller General of the 
United States.
    ``(f) If the Secretary finds that there is substantial failure by a 
State to comply with the requirements of this section, regulations 
issued pursuant to this section, or the plan approved under subsection 
(c), then the Secretary shall take one or more of the following 
actions:
            ``(1) Suspend all or part of such payment authorized by 
        subsection (b)(2) to be made available to such State, until the 
        Secretary determines the State to be in substantial compliance 
        with such requirements.
            ``(2) Withhold all or part of such payments until the 
        Secretary determines that there is no longer failure to comply 
        with such requirements, at which time the withheld payment may 
        be paid.
            ``(3) Terminate the authority of the State to operate the 
        low-income nutrition assistance program.
    ``(g)(1) States which receive grants under this section shall 
provide for--
            ``(A) a biennial audit, conducted in accordance with the 
        standards of the Comptroller General, of expenditures for the 
        provision of nutrition assistance under this section; and
            ``(B) not later than 120 days after the end of each fiscal 
        year in which an audit is conducted, provide the Secretary with 
        such audit.
States shall make the report of such audit available for public 
inspection.
    ``(2) Not later than 120 days after the end of the fiscal year for 
which a State receives a grant under this section, such State shall 
prepare an activities report comparing actual expenditures for such 
fiscal year for nutrition assistance under this section with the 
expenditures for such fiscal year predicted in the plan submitted in 
accordance with subsection (c). Such State shall make the activities 
report available for public inspection.
    ``(h) Whoever knowingly and willfully embezzles, misapplies, 
steals, or obtains by fraud, false statement, or forgery, any funds, 
assets, or property provided or financed under this section shall be 
fined not more than $10,000 or imprisoned for not more than 5 years, or 
both.''.

SEC. 557. VALUE OF MINIMUM ALLOTMENT.

    Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is 
amended by striking ``, and shall be adjusted on each October 1'' and 
all that follows through the end of such subsection, and inserting a 
period.

SEC. 558. INITIAL MONTH BENEFIT DETERMINATION.

    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'' after 
``following any period''.

SEC. 559. IMPROVING FOOD STAMP PROGRAM MANAGEMENT.

    (a) Section 13(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2022(a)(1)) is amended--
            (1) in the fifth sentence, by inserting ``(after a 
        determination on any request for a waiver for good cause 
        related to the claim has been made by the Secretary)'' after 
        ``bill for collection''; and
            (2) in the sixth sentence, by striking ``1 year'' and 
        inserting ``2 years''.
    (b) Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) 
is amended--
            (1) in paragraph (1)(C)--
                    (A) by striking ``national performance measure'' 
                and inserting ``payment error tolerance level''; and
                    (B) by striking ``equal to--'' and all that follows 
                through the period at the end and inserting the 
                following:
        ``equal to its payment error rate less such tolerance level 
        times the total value of allotments issued in such a fiscal 
        year by such State agency. The amount of liability shall not be 
        affected by corrective action under subparagraph (B).'';
            (2) in paragraph (3)(A), by striking ``120 days'' and 
        inserting ``60 days (or 90 days at the discretion of the 
        Secretary)'';
            (3) in the last sentence of paragraph (6), by inserting 
        ``shall be used to establish a payment-error tolerance level. 
        Such tolerance level for any fiscal year will be one percentage 
        point added to the lowest national performance measure ever 
        announced up to and including such fiscal year under this 
        section. The payment-error tolerance level'' after ``The 
        announced national performance measure''; and
            (4) by striking paragraphs (8) and (9).

SEC. 560. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

    (a) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)), 
as amended by section 542(b), is amended--
            (1) in paragraph (25), by striking ``and'';
            (2) in paragraph (26), by striking the period and inserting 
        ``; and'' at the end; and
            (3) by adding at the end the following new paragraph:
            ``(27) the plans of the State agency for including eligible 
        food stamp recipients in a work supplementation or support 
        program under section 16(j).''.
    (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as 
amended by section 554(b), is amended by adding at the end the 
following new subsection:
    ``(j) Work Supplementation or Support Program.--
            ``(1) A State may elect to use the sums equal to the food 
        stamp benefits that would otherwise be allotted to participants 
        under the food stamp program but for the operation of this 
        subsection for the purposes of providing and subsidizing or 
        supporting jobs under a work supplementation or support program 
        established by the State.
            ``(2) If a State that makes the election described in 
        paragraph (1) identifies each household that participates in 
        the food stamp program which contains an individual who is 
        participating in such work supplementation or support program--
                    ``(A) the Secretary shall pay to the State 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 shall expend such amount in 
                accordance with its work supplementation or support 
                program in lieu of 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 as 
                        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 program.
            ``(3) No person shall be excused by reason of the fact that 
        such State has a work supplementation or support program from 
        any work requirement under section 6(d), except during the 
        periods in which such individual is employed under such work 
        supplementation or support program.
            ``(4) For purposes of this subsection, the term ``work 
        supplementation or support program'' shall mean a program in 
        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 a public assistance 
        recipient.''.

SEC. 561. OBLIGATIONS AND ALLOTMENTS.

    Section 18 of the Food Stamp Act of 1977 Act (7 U.S.C. 2027) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``are authorized to be 
                        appropriated such sums as are necessary for 
                        each of the fiscal years 1991 through 1995'' 
                        and inserting the following:
 ``is provided to be obligated, not in excess of the cost estimate made 
by the Congressional Budget Office for this Act, as amended by the Food 
Stamp Simplification and Reform Act of 1995, for the fiscal year ending 
September 30, 1996, with adjustments for any estimates of total 
obligations for additional fiscal years made by the Congressional 
Budget Office to reflect the provisions contained in the Food Stamp 
Simplification and Reform Act of 1995'';
                            (ii) by striking ``In each monthly report, 
                        the Secretary shall also state'' and inserting 
                        ``Also, the Secretary shall file a report every 
                        February 15, April 15, and July 15, stating''; 
                        and
                            (iii) by striking ``supplemental 
                        appropriations'' and inserting ``additional 
                        obligational authority''; and
                    (B) in paragraph (2), by striking ``authorized to 
                be appropriated'' and inserting ``obligated'';
            (2) in subsection (b)--
                    (A) in the first sentence, by striking 
                ``appropriation'' and inserting ``total obligations 
                limitation provided''; and
                    (B) in the second sentence, by striking 
                ``appropriation'' and inserting ``obligational amount 
                provided in subsection (a)(1)'';
            (3) in subsection (c)--
                    (A) by inserting ``or under section 24'' after 
                ``under sections 5(d) and 5(e)'';
                    (B) by inserting ``or under section 24'' after 
                ``under section 5(c)'';
                    (C) by striking ``and'' after ``or otherwise 
                disabled''; and
                    (D) by inserting before the period at the end ``, 
                and (3) adequate and appropriate recommendations on how 
                to equitably achieve such reductions''; and
            (4) in subsection (f), by striking ``No funds 
        appropriated'' and inserting ``None of the funds obligated''.

                      CHAPTER 3--PROGRAM INTEGRITY

SEC. 571. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    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 new sentence:
``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, under the food stamp 
program shall be valid.''.

SEC. 572. 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)), as previously amended by this title, is amended by adding 
at the end the following new sentence:
``No retail food store or wholesale food concern shall be approved for 
participation in the food stamp program unless, wherever possible, an 
authorized employee of the Department of Agriculture, or an official of 
the State or local government designated by the Department of 
Agriculture, has visited such retail food store or wholesale food 
concern for the purpose of determining whether such retail food store 
or wholesale food concern should be so approved.''.

SEC. 573. WAITING PERIOD FOR RETAIL FOOD STORES AND WHOLESALE FOOD 
              CONCERNS THAT ARE DENIED APPROVAL TO ACCEPT COUPONS.

    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 new sentence:
``Such retail food store or wholesale food concern shall not submit an 
application under subsection (a)(1) for six months from the date of 
receipt of the notice of denial.''.

SEC. 574. DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD 
              CONCERNS.

    Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is 
amended--
            (1) by inserting ``(1)'' after ``(a); and
            (2) by inserting the following new paragraph:
    ``(2) A retail food store or wholesale food concern that is 
disqualified from participating in the program under section 17 of the 
Child Nutrition Act of 1966 shall for such period of disqualification 
also be disqualified from participating in the food stamp program.''.

SEC. 575. 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 by adding at the end the following new sentence:
``Notwithstanding any other provision of law, the permanent 
disqualification of a retail food store or wholesale food concern under 
section 12(b)(3) shall be effective from the date of receipt of the 
notice of disqualification.''.

SEC. 576. CRIMINAL FORFEITURE.

    Section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is 
amended to read as follows:
    ``(g)(1) The court, in imposing sentence on a person convicted of 
an offense in violation of subsection (b) or (c), shall order, in 
addition to any other sentence imposed pursuant to this subsection, 
that the person forfeit to the United States all property described in 
paragraph (2).
    ``(2) 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), is subject 
to forfeiture to the United States.
    ``(3) No property shall be forfeited under this subsection to the 
extent of an interest of an owner, by reason of any act or omission 
established by that owner to have been committed or omitted without the 
knowledge or consent of that owner.
    ``(4) The proceeds from any sale of forfeited property and any 
monies forfeited under this subsection shall be used--
            ``(A) to reimburse the Department of Justice for the costs 
        incurred by the Department to initiate and complete the 
        forfeiture proceeding that caused the sale that produced such 
        proceeds;
            ``(B) to reimburse the Department of Agriculture Office of 
        Inspector General for any costs it incurred in the law 
        enforcement effort resulting in the forfeiture;
            ``(C) to reimburse any Federal or State law enforcement 
        agencies for any costs incurred in the law enforcement effort 
        resulting in the forfeiture; and
            ``(D) by the Secretary to carry out the approval, 
        reauthorization, and compliance investigations of retail stores 
        under section 9.''.

SEC. 577. EXPANDED 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 cards, cash or checks issued in lieu of 
coupons, or access devices, including, but not limited to, electronic 
benefit transfer cards or personal identification numbers''.

SEC. 578. 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. 579. 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 adding at the end the following new subclause:
                    ``(IV) a conviction of an offense under subsection 
                (a) or (b) of section 15 involving items referred to in 
                such subsection having a value of $500 or more.''.

SEC. 580. CLAIMS COLLECTION.

    (a) Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(8)) is amended by inserting before the semicolon at the end 
``or refunds of Federal taxes as authorized pursuant to section 3720A 
of title 31 of the United States Code''.
    (b) Section 13(d) of the Act (7 U.S.C. 2022(d)) is amended--
            (1) by striking ``may'' and inserting ``shall''; and
            (2) by inserting before the period at the end ``or refunds 
        of Federal taxes as authorized pursuant to section 3720A of 
        title 31 of the United States Code''.

        Subtitle C--Effective Dates and Miscellaneous Provisions

SEC. 591. EFFECTIVE DATES.

    (a) Except as provided in subsection (b) and (c), this title and 
amendments made by this title shall take effect on October 1, 1995.
    (b) The amendments made by section 554 shall take effect on October 
1, 1996.
    (c) The amendments made by section 560 shall take effect on October 
1, 1994.

SEC. 592. SENSE OF THE CONGRESS.

    It is the sense of the Congress that States that operate electronic 
benefit systems to transfer benefits provided under the Food Stamp Act 
of 1977 should operate electronic benefit systems that are compatible 
with each other.

SEC. 593. DEFICIT REDUCTION.

    It is the sense of the Committee on Agriculture of the House of 
Representatives that reductions in outlays resulting from subtitle B 
shall not be taken into account for purposes of section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

                 TITLE VI--SUPPLEMENTAL SECURITY INCOME

SEC. 601. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY REASON OF 
              DISABILITY TO DRUG ADDICTS AND ALCOHOLICS.

    (a) In General.--Section 1614(a)(3) of the Social Security Act (42 
U.S.C. 1382c(a)(3)) is amended by adding at the end the following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
    (b) Conforming Amendments.--
            (1) Section 1611(e) of such Act (42 U.S.C. 1382(e)) is 
        amended by striking paragraph (3).
            (2) Section 1631(a)(2)(A)(ii) of such Act (42 U.S.C. 
        1383(a)(2)(A)(ii)) is amended--
                    (A) by striking ``(I)''; and
                    (B) by striking subclause (II).
            (3) Section 1631(a)(2)(B) of such Act (42 U.S.C. 
        1383(a)(2)(B)) is amended--
                    (A) by striking clause (vii);
                    (B) in clause (viii), by striking ``(ix)'' and 
                inserting ``(viii)'';
                    (C) in clause (ix)--
                            (i) by striking ``(viii)'' and inserting 
                        ``(vii)''; and
                            (ii) in subclause (II), by striking all 
                        that follows ``15 years'' and inserting a 
                        period;
                    (D) in clause (xiii)--
                            (i) by striking ``(xii)'' and inserting 
                        ``(xi)''; and
                            (ii) by striking ``(xi)'' and inserting 
                        ``(x)''; and
                    (E) by redesignating clauses (viii) through (xiii) 
                as clauses (vii) through (xii), respectively.
            (4) Section 1631(a)(2)(D)(i)(II) of such Act (42 U.S.C. 
        1383(a)(2)(D)(i)(II)) is amended by striking all that follows 
        ``$25.00 per month'' and inserting a period.
            (5) Section 1634 of such Act (42 U.S.C. 1383c) is amended 
        by striking subsection (e).
            (6) Section 201(c)(1) of the Social Security Independence 
        and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
        amended--
                    (A) by striking ``--'' and all that follows through 
                ``(A)'' the 1st place such term appears;
                    (B) by striking ``and'' the 3rd place such term 
                appears;
                    (C) by striking subparagraph (B);
                    (D) by striking ``either subparagraph (A) or 
                subparagraph (B)'' and inserting ``the preceding 
                sentence''; and
                    (E) by striking ``subparagraph (A) or (B)'' and 
                inserting ``the preceding sentence''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995, and shall apply with respect to months 
beginning on or after such date.
    (d) Funding of Certain Programs for Drug Addicts and Alcoholics.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated--
                    (A) for carrying out section 1971 of the Public 
                Health Service Act (as amended by paragraph (2) of this 
                subsection), $95,000,000 for each of the fiscal years 
                1997 through 2000; and
                    (B) for carrying out the medication development 
                project to improve drug abuse and drug treatment 
                research (administered through the National Institute 
                on Drug Abuse), $5,000,000 for each of the fiscal years 
                1997 through 2000.
            (2) Capacity expansion program regarding drug abuse 
        treatment.--Section 1971 of the Public Health Service Act (42 
        U.S.C. 300y) is amended--
                    (A) in subsection (a)(1), by adding at the end the 
                following sentence: ``This paragraph is subject to 
                subsection (j).'';
                    (B) by redesignating subsection (j) as subsection 
                (k);
                    (C) in subsection (j) (as so redesignated), by 
                inserting before the period the following: ``and for 
                each of the fiscal years 1995 through 2000''; and
                    (D) by inserting after subsection (i) the following 
                subsection:
    ``(j) Formula Grants for Certain Fiscal Years.--
            ``(1) In general.--For each of the fiscal years 1997 
        through 2000, the Director shall, for the purpose described in 
        subsection (a)(1), make a grant to each State that submits to 
the Director an application in accordance with paragraph (2). Such a 
grant for a State shall consist of the allotment determined for the 
State under paragraph (3). For each of the fiscal years 1997 through 
2000, grants under this paragraph shall be the exclusive grants under 
this section.
            ``(2) Requirements.--The Director may make a grant under 
        paragraph (1) only if, by the date specified by the Director, 
        the State submits to the Director an application for the grant 
        that is in such form, is made in such manner, and contain such 
        agreements, assurances, and information as the Director 
        determines to be necessary to carry out this subsection, and if 
        the application contains an agreement by the State in 
        accordance with the following:
                    ``(A) The State will expend the grant in accordance 
                with the priority described in subsection (b)(1).
                    ``(B) The State will comply with the conditions 
                described in each of subsections (c), (d), (g), and 
                (h).
            ``(3) Allotment.--
                    ``(A) For purposes of paragraph (1), the allotment 
                under this paragraph for a State for a fiscal year 
                shall, except as provided in subparagraph (B), be the 
                product of--
                            ``(i) the amount appropriated in section 
                        601(d)(1) of the Personal Responsibility Act of 
                        1995 for the fiscal year, together with any 
                        additional amounts appropriated to carry out 
                        this section for the fiscal year; and
                            ``(ii) the percentage determined for the 
                        State under the formula established in section 
                        1933(a).
                    ``(B) Subsections (b) through (d) of section 1933 
                apply to an allotment under subparagraph (A) to the 
                same extent and in the same manner as such subsections 
                apply to an allotment under subsection (a) of section 
                1933.''.

SEC. 602. SUPPLEMENTAL SECURITY INCOME BENEFITS FOR DISABLED CHILDREN.

    (a) Restrictions on Eligibility for Cash Benefits.--
            (1) In general.--Section 1614(a)(3)(A) of the Social 
        Security Act (42 U.S.C. 1382c(a)(3)(A)) is amended--
                    (A) by inserting ``(i)'' after ``(3)(A)'';
                    (B) by inserting ``who has attained 18 years of 
                age'' before ``shall be considered'';
                    (C) by striking ``he'' and inserting ``the 
                individual'';
                    (D) 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 impairment 
                of comparable severity)''; and
                    (E) by adding after and below the end the 
                following:
    ``(ii) An individual who has not attained 18 years of age shall be 
considered to be disabled for purposes of this title for a month if the 
individual--
            ``(I) meets all non-disability-related requirements for 
        eligibility for cash benefits under this title;
            ``(II) has any medically determinable physical or mental 
        impairment (or combination of impairments) that meets the 
        requirements, applicable to individuals who have not attained 
        18 years of age, of the Listings of Impairments set forth in 
        appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations (revised as of April 1, 1994), or that is 
        equivalent in severity to such an impairment (or such a 
        combination of impairments); and
            ``(III)(aa) for the month preceding the first month for 
        which this clause takes effect, was eligible for cash benefits 
        under this title by reason of disability; or
            ``(bb) as a result of the impairment (or combination of 
        impairments) involved--
                    ``(1) is in a hospital, skilled nursing facility, 
                nursing facility, residential treatment facility, 
                intermediate care facility for the mentally retarded, 
                or other medical institution; or
                    ``(2) would be required to be placed in such an 
                institution if the individual were not receiving 
                personal assistance necessitated by the impairment (or 
                impairments).
    ``(iii) As used in clause (ii)(III)(bb)(2), the term `personal 
assistance' includes at least hands-on or stand-by assistance, 
supervision, or cueing, with activities of daily living and the 
administration of medical treatment (where applicable). For purposes of 
the preceding sentence, the term `acitivities of daily living' means 
eating, toileting, dressing, bathing, and transferring.''.
            (2) Notice.--Within 1 month after the date of the enactment 
        of this Act, the Commissioner of Social Security shall notify 
        each individual whose eligibility for cash supplemental 
        security income benefits under title XVI of the Social Security 
Act will terminate by reason of the amendments made by paragraph (1) of 
such termination.
            (3) Annual reports on listings of impairments.--The 
        Commissioner of Social Security shall annually submit to the 
        Congress a report on the Listings of Impairments set forth in 
        appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations (revised as of April 1, 1994), that are 
        applicable to indivdiuals who have not attained 18 years of 
        age, and recommend any necessary revisions to the listings.
    (b) Establishment of Program of Block Grants Regarding Children 
With Disabilities.--
            (1) In general.--Title XVI of the Social Security Act (42 
        U.S.C. 1381 et seq.) is amended by adding at the end the 
        following:

    ``PART C--BLOCK GRANTS TO STATES FOR CHILDREN WITH DISABILITIES

``SEC. 1641. ENTITLEMENT TO GRANTS.

    ``Each State that meets the requirements of section 1642 for fiscal 
year 1997 or any subsequent fiscal year shall be entitled to receive 
from the Commissioner for the fiscal year a grant in an amount equal to 
the allotment (as defined in section 1646(1)) of the State for the 
fiscal year.

``SEC. 1642. REQUIREMENTS.

    ``(a) In General.--A State meets the requirements of this section 
for a grant under section 1641 for a fiscal year if by the date 
specified by the Commissioner, the State submits to the Commissioner an 
application for the grant that is in such form, is made in such manner, 
and contain such agreements, assurances, and information as the 
Commissioner determines to be necessary to carry out this part, and if 
the application contains an agreement by the State in accordance with 
the following:
            ``(1) The grant will not be expended for any purpose other 
        than providing authorized services (as defined in section 
        1646(2)) to qualifying children (as defined in section 
        1646(3)).
            ``(2)(A) In providing authorized services, the State will 
        make every reasonable effort to obtain payment for the services 
        from other Federal or State programs that provide payment for 
        such services and from private entities that are legally liable 
        to make the payments pursuant to insurance policies, prepaid 
        plans, or other arrangements.
            ``(B) The State will expend the grant only to the extent 
        that payments from the programs and entities described in 
        subparagraph (A) are not available for authorized services 
        provided by the State.
            ``(3) The State will comply with the condition described in 
        subsection (b).
            ``(4) The State will comply with the condition described in 
        subsection (c).
    ``(b) Maintenance of Effort.--
            ``(1) In general.--The condition referred to in subsection 
        (a)(3) for a State for a fiscal year is that, with respect to 
        the purposes described in paragraph (2), the State will 
        maintain expenditures of non-Federal amounts for such purposes 
        at a level that is not less than the following, as applicable:
                    ``(A) For the first fiscal year for which the State 
                receives a grant under section 1641, an amount equal to 
                the difference between--
                            ``(i) the average level of such 
                        expenditures maintained by the State for the 2-
                        year period preceding October 1, 1995 (except 
                        that, if such first fiscal year is other than 
                        fiscal year 1997, the amount of such average 
                        level shall be increased to the extent 
                        necessary to offset the effect of inflation 
                        occurring after October 1, 1995); and
                            ``(ii) the aggregate of non-Federal 
                        expenditures made by the State for such 2-year 
                        period pursuant to section 1618 (as such 
                        section was in effect for such period).
                    ``(B) For each subsequent fiscal year, the amount 
                applicable under subparagraph (A) increased to the 
                extent necessary to offset the effect of inflation 
                occurring after the beginning of the fiscal year to 
                which such subparagraph applies.
            ``(2) Relevant purposes.--The purposes described in this 
        paragraph are any purposes designed to meet (or assist in 
        meeting) the unique needs of qualifying children that arise 
        from physical and mental impairments, including such purposes 
        that are authorized to be carried out under title XIX.
            ``(3) Rule of construction.--With respect to compliance 
        with the agreement made by a State pursuant to paragraph (1), 
        the State has discretion to select, from among the purposes 
        described in paragraph (2), the purposes for which the State 
        expends the non-Federal amounts reserved by the State for such 
        compliance.
            ``(4) Use of consumer price index.--Determinations under 
        paragraph (1) of the extent of inflation shall be made through 
        use of the consumer price index for all urban consumers, U.S. 
        city average, published by the Bureau of Labor Statistics.
    ``(c) Assessment of Need for Services.--The condition referred to 
in subsection (a)(4) for a State for a fiscal year is that each 
qualifying child will be permitted to apply for authorized services, 
and will be provided with an opportunity to have an assessment 
conducted to determine the need of such child for authorized services.

``SEC. 1643. AUTHORITY OF STATE.

    ``The following decisions are in the discretion of a State with 
respect to compliance with an agreement made by the State under section 
1642(a)(1):
            ``(1) Decisions regarding which of the authorized services 
        are provided.
            ``(2) Decisions regarding who among qualifying children in 
        the State receives the services.
            ``(3) Decisions regarding the number of services provided 
        for the qualifying child involved and the duration of the 
        services.

``SEC. 1644. AUTHORIZED SERVICES.

    ``(a) Authority of Commissioner.--The Commissioner, subject to 
subsection (b), shall issue regulations designating the purposes for 
which grants under section 1641 are authorized to be expended by the 
States.
    ``(b) Requirements Regarding Services.--The Commissioner shall 
ensure that the purposes authorized under subsection (a)--
            ``(1) are designed to meet (or assist in meeting) the 
        unique needs of qualifying children that arise from physical 
        and mental impairments;
            ``(2) include medical and nonmedical services; and
            ``(3) do not include the provision of cash benefits.

``SEC. 1645. GENERAL PROVISIONS.

    ``(a) Issuance of Regulations.--Regulations under this part shall 
be issued in accordance with procedures established for the issuance of 
substantive rules under section 553 of title 5, United States Code. 
Payments under grants under section 1641 for fiscal year 1997 shall 
begin not later than January 1, 1997, without regard to whether final 
rules under this part have been issued and without regard to whether 
such rules have taken effect.
    ``(b) Provisions Regarding Other Programs.--
            ``(1) Inapplicability of value of services.--The value of 
        authorized services provided under this part shall not be taken 
        into account in determining eligibility for, or the amount of, 
        benefits or services under any Federal or federally-assisted 
        program.
            ``(2) Medicaid program.--For purposes of title XIX, each 
        qualifying child shall be considered to be a recipient of 
        supplemental security income benefits under this title (without 
        regard to whether the child has received authorized services 
        under this part and without regard to whether the State 
        involved is receiving a grant under section 1641). The 
        preceding sentence applies on and after the date of the 
        enactment of this part.
    ``(c) Use by States of Existing Delivery Systems.--With respect to 
the systems utilized by the States to deliver services to individuals 
with disabilities (including systems utilized before the date of the 
enactment of the Personal Responsibility Act of 1995), it is the sense 
of the Congress that the States should utilize such systems in 
providing authorized services under this part.
    ``(d) Required Participation of States.--Subparagraphs (C)(i) and 
(E)(i)(I) of section 205(c)(2) shall not apply to a State that does not 
participate in the program established in this part for fiscal year 
1997 or any succeeding fiscal year.

``SEC. 1646. DEFINITIONS.

    ``As used in this part:
            ``(1) Allotment.--The term `allotment' means, with respect 
        to a State and a fiscal year, the product of--
                    ``(A) an amount equal to the difference between--
                            ``(i) the number of qualifying children in 
                        the State (as determined for the most recent 
                        12-month period for which data are available to 
                        the Commissioner); and
                            ``(ii) the number of qualifying children in 
                        the State receiving cash benefits under this 
                        title by reason of disability (as so 
                        determined); and
                    ``(B) an amount equal to 75 percent of the mean 
                average of the respective annual totals of cash 
                benefits paid under this title to each qualifying child 
                described in subparagraph (A)(ii) (as so determined).
            ``(2) Authorized service.--The term `authorized service' 
        means each purpose authorized by the Commissioner under section 
        1644(a).
            ``(3) Qualifying child.--
                    ``(A) In general.--The term `qualifying child' 
                means an individual who--
                            ``(i) has not attained 18 years of age; and
                            ``(ii)(I) is eligible for cash benefits 
                        under this title by reason of disability; or
                            ``(II) meets the conditions described in 
                        subclauses (I) and (II) of section 
                        1614(a)(3)(A)(ii), but (by reason of subclause 
                        (III) of such section) is not eligible for such 
                        cash benefits.
                    ``(B) Responsibilities of commissioner.--The 
                Commissioner shall provide for determinations of 
                whether individuals meet the criteria established in 
                subparagraph (A) for status as qualifying children. 
                Such determinations shall be made in accordance with 
                the provisions otherwise applicable under this title 
                with respect to such criteria.''.
            (2) Rule regarding certain military parents; cash benefits 
        for qualifying children.--Section 1614(a)(1)(B)(ii) of the 
        Social Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended 
        by striking ``United States, and who, for the month'' and all 
        that follows and inserting the following: ``United States, 
        and--
            ``(I) who, for the month before the parent reported for 
        such assignment, received a cash benefit under this title by 
        reason of blindness, or
            ``(II) for whom, for such month, a determination was in 
        effect that the child is a qualifying child under section 
        1646(3).''.
    (c) Provisions Relating to SSI Cash Benefits and SSI Service 
Benefits.--
            (1) Continuing disability reviews for certain children.--
        Section 1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)) is 
        amended--
                    (A) by inserting ``(i)'' after ``(G)''; and
                    (B) by adding at the end the following:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall redetermine the eligibility for cash benefits under 
this title and for services under part C--
            ``(aa) of each individual who has not attained 18 years of 
        age and is eligible for such cash benefits by reason of 
        disability; and
            ``(bb) of each qualifying child (as defined in section 
        1646(3)).
    ``(II) Subclause (I) shall not apply to an individual if the 
individual has an impairment (or combination of impairments) which is 
(or are) not expected to improve.''.
            (2) Disability review required for ssi recipients who are 
        18 years of age.--
                    (A) In general.--Section 1614(a)(3)(G) of such Act 
                (42 U.S.C. 1382c(a)(3)(G)), as amended by paragraph (1) 
                of this subsection, is amended by adding at the end the 
                following:
    ``(iii)(I) The Commissioner shall redetermine the eligibility of a 
qualified individual for supplemental security income benefits under 
this title by reason of disability, by applying the criteria used in 
determining eligibility for such benefits of applicants who have 
attained 18 years of age.
    ``(II) The redetermination required by subclause (I) with respect 
to a qualified individual shall be conducted during the 1-year period 
that begins on the date the qualified individual attains 18 years of 
age.
    ``(III) As used in this clause, the term `qualified individual' 
means an individual who attains 18 years of age and is a recipient of 
cash benefits under this title by reason of disability or of services 
under part C.
    ``(IV) A redetermination under subclause (I) of this clause shall 
be considered a substitute for a review required under any other 
provision of this subparagraph.''.
                    (B) Report to the congress.--Not later than October 
                1, 1998, the Commissioner of Social Security shall 
                submit to the Committee on Ways and Means of the House 
                of Representatives and the Committee on Finance of the 
                Senate a report on the activities conducted under 
                section 1614(a)(3)(G)(iii) of the Social Security Act.
                    (C) 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.
            (3) Disability review required for low birth weight babies 
        who have received ssi benefits for 12 months.--Section 
        1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)), as 
        amended by paragraphs (1) and (2) of this subsection, is 
        amended by adding at the end the following:
    ``(iv)(I) The Commissioner shall redetermine the eligibility for--
            ``(aa) cash benefits under this title by reason of 
        disability of an individual whose low birth weight is a 
        contributing factor material to the Commissioner's 
        determination that the individual is disabled; and
            ``(bb) services under part C of an individual who is 
        eligible for such services by reason of low birth weight.
    ``(II) The redetermination required by subclause (I) shall be 
conducted once the individual has received such benefits for 12 months.
    ``(III) A redetermination under subclause (I) of this clause shall 
be considered a substitute for a review required under any other 
provision of this subparagraph.''.
            (4) Applicability of medicaid rules regarding counting of 
        certain assets and trusts of children.--Section 1613(c) of the 
        Social Security Act (42 U.S.C. 1382b(c)) is amended to read as 
        follows:

``treatment of certain assets and trusts in eligibility determinations 
                              for children

    ``(c) Subsections (c) and (d) of section 1917 shall apply to 
determinations of eligibility for benefits under this title in the case 
of an individual who has not attained 18 years of age in the same 
manner as such subsections apply to determinations of eligibility for 
medical assistance under a State plan under title XIX, except that--
            ``(1) the amount described in section 1917(c)(1)(E)(i)(II) 
        shall be the amount of cash benefits payable under this title 
        to an eligible individual who does not have an eligible spouse 
        and who has no income or resources;
            ``(2) the look-back date specified in section 1917(c)(1)(B) 
        shall be the date that is 36 months before the date the 
        individual has applied for benefits under this title; and
            ``(3) any assets in a trust over which the individual has 
        control shall be considered assets of the individual.''.
    (d) Conforming Amendments.--
            (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5), and 
        (e)(1)(B) of section 1611 of the Social Security Act (42 U.S.C. 
        1382 (b)(1), (b)(2), (c)(3), (c)(5), and (e)(1)(B)) are each 
        amended by inserting ``cash'' before ``benefit under this 
        title''.
            (2) Section 1611(c)(1) of such Act (42 U.S.C. 1382(c)(1)) 
        is amended--
                    (A) by striking ``a benefit'' and inserting 
                ``benefits'';
                    (B) by striking ``such benefit'' and inserting 
                ``the cash benefit under this title''; and
                    (C) by striking ``and the amount of such benefits'' 
                and inserting ``benefits under this title and the 
                amount of any cash benefit under this title''.
            (3) Section 1611(c)(2) of such Act (42 U.S.C. 1382(c)(2)) 
        is amended--
                    (A) by striking ``such benefit'' and inserting 
                ``the cash benefit'';
                    (B) by inserting ``cash'' before ``benefits'' each 
                place such term appears; and
                    (C) in subpargraph (B), by inserting ``cash'' 
                before ``benefit''.
            (4) Section 1611(c)(3) of such Act (42 U.S.C. 1382(c)(3)) 
        is amended by inserting ``cash'' before ``benefits under this 
        title''.
            (5) Section 1611(e)(1)(G) of such Act (42 U.S.C. 
        1382(e)(1)(G)) is amended by inserting ``cash'' before 
        ``benefit of''.
            (6) Section 1614(a)(4) of such Act (42 U.S.C. 1382c(a)(4)) 
        is amended by inserting ``or impairment'' after ``disability'' 
        each place such term appears.
            (7) Section 1614(f)(1) of such Act (42 U.S.C. 1382c(f)(1)) 
        is amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (8) Section 1614(f)(2)(A) of such Act (42 U.S.C. 
        1382c(f)(2)(A)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit''.
            (9) Section 1614(f)(3) of such Act (42 U.S.C. 1382c(f)(3)) 
        is amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (10) Section 1616(e)(1) of such Act (42 U.S.C. 1382e(e)(1)) 
        is amended by inserting ``cash'' before ``supplemental''.
            (11) Section 1621(a) of such Act (42 U.S.C. 1382j(a)) is 
        amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (12) Section 1631(a)(4) of such Act (42 U.S.C. 1383(a)(4)) 
        is amended by inserting ``cash'' before ``benefits'' the 1st 
        place such term appears in each of subparagraphs (A) and (B).
            (13) Section 1631(a)(7)(A) of such Act (42 U.S.C. 
        1383(a)(7)(A)) is amended by inserting ``cash'' before 
        ``benefits based''.
            (14) Section 1631(a)(8)(A) of such Act (42 U.S.C. 
        1383(a)(8)(A)) is amended by striking ``benefits based on 
        disability or blindness under this title'' and inserting 
        ``benefits under this title (other than by reason of age)''.
            (15) Section 1631(c) of such Act (42 U.S.C. 1383(c)) is 
        amended--
                    (A) by striking ``payment'' each place such term 
                appears and inserting ``benefits''; and
                    (B) by striking ``payments'' each place such term 
                appears and inserting ``benefits''.
            (17) Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
        amended--
                    (A) in paragraph (1)(B), by striking ``amounts of 
                such benefits'' and inserting ``amounts of cash 
                benefits under this title'';
                    (B) in paragraph (2), by inserting ``cash'' before 
                ``benefits'' each place such term appears;
                    (C) by redesignating the 2nd paragraph (6) and 
                paragraph (7) as paragraphs (7) and (8), respectively; 
                and
                    (D) in paragraph (7) (as so redesignated), by 
                inserting ``cash'' before ``benefits'' each place such 
                term appears.
            (18) Section 1631(g)(2) of such Act (42 U.S.C. 1383(g)(2)) 
        is amended by striking ``supplemental security income'' and 
        inserting ``cash''.
            (19) Section 1635(a) of such Act (42 U.S.C. 1383d(a)) is 
        amended by striking ``by reason of disability or blindness''.
    (e) Temporary Eligibility for Cash Benefits for Poor Disabled 
Children Residing in States Applying Alternative Income Eligibility 
Standards Under Medicaid.--
            (1) In general.--For the period beginning upon the 1st day 
        of the 1st month that begins 90 or more days after the date of 
        the enactment of this Act and ending upon the close of fiscal 
        year 1996, an individual described in paragraph (2) shall be 
        considered to be eligible for cash benefits under title XVI of 
        the Social Security Act, notwithstanding that the individual 
        does not meet any of the conditions described in section 
        1614(a)(3)(A)(ii)(III) of such Act.
            (2) Requirements.--For purposes of paragraph (1), an 
        individual described in this paragraph is an individual who--
                    (A) has not attained 18 years of age;
                    (B) meets the conditions described in subclauses 
                (I) and (II) of section 1614(a)(3)(A)(ii) of the Social 
                Security Act;
                    (C) resides in a State that, pursuant to section 
                1902(f) of such Act, restricts eligibility for medical 
                assistance under title XIX of such Act with respect to 
                aged, blind, and disabled individuals; and
                    (D) is not eligible for medical assistance under 
                the State plan under such title XIX.
    (f) Reduction in Cash Benefits Payable to Institutionalized 
Children Whose Medical Costs are Covered by Private Insurance.--Section 
1611(e)(1)(B) of the Social Security Act (42 U.S.C. 1382(e)(1)(B)) is 
amended by inserting ``or under any health insurance policy issued by a 
private provider of such insurance'' after ``title XIX''.
    (g) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsections (a)(1), (c), (d) and (f) and 
        section 1645(b)(2) of the Social Security Act (as added by the 
        amendment made by subsection (b) of 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.
            (2) Delayed applicability to current ssi recipients of 
        eligibility restrictions.--The amendments made by subsection 
        (a)(1) shall not apply, during the first 6 months that begin 
        after the month in which this Act becomes law, to an individual 
        who is a recipient of cash supplemental security income 
        benefits under title XVI of the Social Security Act for the 
        month in which this Act becomes law.
    (h) Regulations.--Within 3 months after the date of the enactment 
of this Act--
            (1) the Commissioner of Social Security shall prescribe 
        such regulations as may be necessary to implement the 
        amendments made by subsections (a)(1), (c), (d), and (f) and to 
        implement subsection (e); and
            (2) the Secretary of Health and Human Services shall 
        prescribe such regulations as may be necessary to implement 
        section 1645(b)(2) of the Social Security Act, as added by the 
        amendment made by subsection (b) of this section.

SEC. 603. EXAMINATION OF MENTAL LISTINGS USED TO DETERMINE ELIGIBILITY 
              OF CHILDREN FOR SSI BENEFITS BY REASON OF DISABILITY.

    Section 202(e)(2) of the Social Security Independence and Program 
Improvements Act of 1994 (42 U.S.C. 1382 note) is amended--
            (1) by striking ``and'' at the end of subparagraph (F); and
            (2) by redesignating subparagraph (G) as subparagraph (H) 
        and inserting after subparagraph (F) the following:
            ``(G) whether the criteria in the mental disorders listings 
        in the Listings of Impairments set forth in appendix 1 of 
        subpart P of part 404 of title 20, Code of Federal Regulations, 
        are appropriate to ensure that eligibility of individuals who 
        have not attained 18 years of age for cash benefits under the 
        supplemental security income program by reason of disability is 
        limited to those who have serious disabilities and for whom 
        such benefits are necessary to improve their condition or 
        quality of life; and''.

SEC. 604. LIMITATION ON PAYMENTS TO PUERTO RICO, THE VIRGIN ISLANDS, 
              AND GUAM UNDER PROGRAMS OF AID TO THE AGED, BLIND, OR 
              DISABLED.

    Section 1108 of the Social Security Act (42 U.S.C. 1308), as 
amended by section 104(e)(1) of this Act, is amended by inserting 
before ``The total'' the following:
    ``(a) Programs of Aid to the Aged, Blind, or Disabled.--The total 
amount certified by the Secretary of Health and Human Services under 
titles I, X, XIV, and XVI (as in effect without regard to the amendment 
made by section 301 of the Social Security Amendments of 1972)--
            ``(1) for payment to Puerto Rico shall not exceed 
        $18,053,940;
            ``(2) for payment to the Virgin Islands shall not exceed 
        $473,659; and
            ``(3) for payment to Guam shall not exceed $900,718.
    ``(b) Medicaid Programs.--''.

SEC. 605. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    Section 1618 of the Social Security Act (42 U.S.C. 1382g) is hereby 
repealed.

                        TITLE VII--CHILD SUPPORT

SEC. 700. REFERENCES.

    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 for Services; Distribution of Payments

SEC. 701. 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:
            ``(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 cash assistance 
                        is provided under the State program funded 
                        under part A of this title, benefits or 
                        services are provided under the State program 
                        funded under part B of this title, or medical 
                        assistance is provided under the State plan 
                        approved under title XIX, unless the State 
                        agency administering the plan determines (in 
                        accordance with paragraph (28)) 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:
                    ``(A) services under the plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (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) 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. 702. 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 cash assistance.--In the case of a 
        family receiving cash assistance from the State, the State 
        shall--
                    ``(A) retain, or distribute to the family, the 
                State share of the amount so collected; and
                    ``(B) pay to the Federal Government the Federal 
                share of the amount so collected.
            ``(2) Families that formerly received cash assistance.--In 
        the case of a family that formerly received cash 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 to the family to satisfy 
                        arrearages that accrued before or after the 
                        family received cash assistance.--The State 
                        shall distribute the amount so collected to the 
                        family to the extent necessary to satisfy any 
                        support arrears with respect to the family that 
                        accrued before or after the family received 
                        cash assistance from the State.
                            ``(ii) Reimbursement of governments for 
                        assistance provided to the family.--To the 
                        extent that clause (i) does not apply to the 
                        amount, the State shall retain the State share 
                        of the amount so collected, and pay to the 
                        Federal Government the Federal share of the 
                        amount so collected, to the extent necessary to 
                        reimburse amounts paid to the family as cash 
                        assistance from the State.
                            ``(iii) Distribution of the remainder to 
                        the family.--To the extent that neither clause 
                        (i) nor clause (ii) applies to the amount so 
                        collected, the State shall distribute the 
                        amount to the family.
            ``(3) Families that never received cash assistance.--In the 
        case of any other family, the State shall distribute the amount 
        so collected to the family.
    ``(b) Definitions.--As used in subsection (a):
            ``(1) Cash assistance.--The term `cash assistance from the 
        State' means--
                    ``(A) cash assistance under the State program 
                funded under part A or under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1996); or
                    ``(B) cash benefits under the State program funded 
                under part B or under the State plan approved under 
                part B or E of this title (as in effect before October 
                1, 1996).
            ``(2) Federal share.--The term `Federal share' means, with 
        respect to an amount collected by the State to satisfy a 
        support obligation owed to a family for a time period--
                    ``(A) the greatest Federal medical assistance 
                percentage in effect for the State for fiscal year 1995 
                or any succeeding fiscal year; or
                    ``(B) if support is not owed to the family for any 
                month for which the family received aid to families 
                with dependent children under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1996), the Federal reimbursement percentage for the 
                fiscal year in which the time period occurs.
            ``(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) Federal reimbursement percentage.--The term `Federal 
        assistance percentage' means, with respect to a fiscal year--
                    ``(A) the total amount paid to the State under 
                section 403 for the fiscal year; divided by
                    ``(B) the total amount expended by the State to 
                carry out the State program under part A during the 
                fiscal year.
            ``(5) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(c) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--When a family 
with respect to which services are provided under a State plan approved 
under this part 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 individuals to whom 
services are furnished under section 454, except that an application or 
other request to continue services shall not be required of such a 
family and section 454(6)(B) shall not apply to the family.''.
    (b) Effective Date.--
            (1) General rule.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall become effective on 
        October 1, 1999.
            (2) Earlier effective date for rules relating to 
        distribution of support collected for families receiving 
        temporary family assistance.--Section 457(a)(1) of the Social 
        Security Act, as added by the amendment made by subsection (a), 
        shall become effective on October 1, 1995.

SEC. 703. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--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:
            ``(25) 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 one 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 one 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.

                  Subtitle B--Locate and Case Tracking

SEC. 711. STATE CASE REGISTRY.

    Section 454A, as added by section 745(a)(2) of this Act, is amended 
by adding at the end the following:
    ``(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 arrears, 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 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) Intra- 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. 712. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 703(a) 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:
            ``(26) 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 (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 745(a)(2) of this Act, is 
amended by inserting after section 454A the following:

``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 in all cases being enforced by 
        the State pursuant to section 454(4).
            ``(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) 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.
    ``(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.--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.
    ``(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 
745(a)(2) of this Act and as amended by section 711 of this Act, is 
amended by adding at the end the following:
    ``(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)) where 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. 713. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 703(a) and 712(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:
            ``(27) 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:

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

    ``(a) Establishment.--
            ``(1) In general.--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 and labor organizations on each newly hired employee.
            ``(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 of the 
                        employee or compromise an ongoing investigation 
                        or intelligence mission.
                    ``(B) Governmental employers.--The term `employer' 
                includes any governmental entity.
                    ``(C) 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 
                subparagraph (B), 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 of, and identifying number assigned under 
                section 6109 of the Internal Revenue Code of 1986 to, 
                the employer.
                    ``(B) Multistate employers.--An employer who has 
                employees who are employed in 2 or more States may 
                comply with subparagraph (A) by transmitting the report 
                described in subparagraph (A) magnetically or 
                electronically to the State in which the greatest 
                number of employees of the employer are employed.
            ``(2) Timing of report.--The report required by paragraph 
        (1) with respect to an employee shall be made not later than 
        the later of--
                    ``(A) 15 days after the date the employer hires the 
                employee; or
                    ``(B) the date the employee first receives wages or 
                other compensation from the employer.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or the equivalent, and may 
be transmitted by first class mail, magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--
            ``(1) In general.--An employer that fails to comply with 
        subsection (b) with respect to an employee shall be subject to 
        a civil money penalty of--
                    ``(A) $25; or
                    ``(B) $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.
            ``(2) Applicability of section 1128.--Section 1128 (other 
        than subsections (a) and (b) of such section) shall apply to a 
        civil money penalty under paragraph (1) of this subsection in 
        the same manner as such section applies to a civil money 
        penalty or proceeding under section 1128A(a).
    ``(e) Information Comparisons.--
            ``(1) In general.--Not later than October 1, 1997, 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.
    ``(f) 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 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 4 business days 
                after the State Directory of New Hires receives 
                information from employers pursuant to this section, 
                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 
                section 303(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.
    ``(g) 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 (e)(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.''.

SEC. 714. 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) Income withholding.--
                    ``(A) Under orders enforced under the state plan.--
                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) Under certain orders predating change in 
                requirement.--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(a)(8)(B)(iii) (42 U.S.C. 
                666(a)(8)(B)(iii)) is amended--
                            (i) by striking ``(5)''; and
                            (ii) by inserting ``, and, at the option of 
                        the State, the requirements of subsection 
                        (b)(5)'' before the period.
                    (B) 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)''.
                    (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.'';
                            (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:
            ``(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 the following:
        ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which is 
                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:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order through electronic means and without advance notice to 
        the obligor.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 715. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at the end 
the following:
            ``(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. 716. 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--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(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; and
            ``(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
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``social security'' and all that follows 
        through ``absent parent'' and inserting ``information described 
        in subsection (a)''.
    (b) 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.
    (c) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following:
    ``(g) 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).''.
    (d) Technical 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''.
    (e) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c) of this section, is amended by adding at the end the 
following:
    ``(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(f)(2).
            ``(2) Administration of federal tax laws.--The Secretary of 
        the Treasury shall have access to the information in the 
        Federal 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.
    ``(j) Information Comparisons and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) 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) 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 order 
                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.''.
    (f) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        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;''.
            (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.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking ``and'' at the end of paragraph 
                (9);
                    (C) by striking the period at the end of paragraph 
                (10) and inserting ``; and''; and
                    (D) by adding after paragraph (10) the following:
            ``(11) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 717. 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 715 of this Act, is amended by adding at the end the 
following:
            ``(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; and
                    ``(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.''.
    (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 
        furnish to 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 (vi), by striking ``may'' and inserting 
        ``shall''; and
            (4) by adding at the end the following:
                            ``(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 acknowledgement in the records relating to 
                        the matter.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 721. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following:
    ``(f) Uniform Interstate Family Support Act.--
            ``(1) Enactment and use.--In order to satisfy section 
        454(20)(A) on or after January 1, 1997, each State must have in 
        effect the Uniform Interstate Family Support Act, as approved 
        by the National Conference of Commissioners on Uniform State 
        Laws in August 1992 (with the modifications and additions 
        specified in this subsection), and the procedures required to 
        implement such Act.
            ``(2) Expanded application.--The State law enacted pursuant 
        to paragraph (1) shall be applied to any case involving an 
        order which is established or modified in a State and which is 
        sought to be modified or enforced in another State.
            ``(3) Jurisdiction to modify orders.--The State law enacted 
        pursuant to paragraph (1) of this subsection shall contain the 
        following provision in lieu of section 611(a)(1) of the Uniform 
        Interstate Family Support Act:
            ```(1) the following requirements are met:
                    ```(i) the child, the individual obligee, and the 
                obligor--
                            ```(I) do not reside in the issuing State; 
                        and
                            ```(II) either reside in this State or are 
                        subject to the jurisdiction of this State 
                        pursuant to section 201; and
                    ```(ii) (in any case where another State is 
                exercising or seeks to exercise jurisdiction to modify 
                the order) the conditions of section 204 are met to the 
                same extent as required for proceedings to establish 
                orders; or'.
            ``(4) Service of process.--The State law enacted pursuant 
        to paragraph (1) shall provide that, in any proceeding subject 
        to the law, process may be served (and proved) upon persons in 
        the State by any means acceptable in any State which is the 
        initiating or responding State in the proceeding.''.

SEC. 722. 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 
        six consecutive months immediately preceding the time of filing 
        of a petition or comparable pleading for support and, if a 
        child is less than six 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 six-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:
    ``(f) Recognition of Child Support Orders.--If one 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 one court has issued a child support order, 
        the order of that court must be recognized.
            ``(2) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, the order of that court must be recognized.
            ``(3) If two or more courts have issued child support 
        orders for the same obligor and child, and only one 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 two 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:
    ``(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. 723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 715 and 
717(a) of this Act, is amended by adding at the end the following:
            ``(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;
                            ``(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. 724. 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 parargraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) not later than June 30, 1996, 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:
                    ``(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. 725. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 714 of this Act, is amended--
            (1) in subsection (a)(2), by strking the 1st 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:
    ``(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 (but 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), 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) Default orders.--To enter a default order, 
                upon a showing of service of process and any additional 
                showing required by State law--
                            ``(i) establishing paternity, in the case 
                        of a putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) Subpoenas.--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.
                    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the records of 
                all other State and local government agencies 
                (including law enforcement and corrections records), 
                including automated access to records maintained in 
                automated data bases.
                    ``(E) Change in payee.--In cases where 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; and
                            ``(iii) attaching public and private 
                        retirement funds.
                    ``(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).
            ``(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 
                        residential or 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 administrative 
                        areas 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.''.
    (b) Exceptions from State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting the following:
    ``(d) Exemptions From Requirements.--
            ``(1) In general.--Subject to paragraph (2), if''; and
            (2) by adding at the end the following:
            ``(2) Non-exempt requirements.--The Secretary shall not 
        grant an exemption from the requirements of--
                    ``(A) subsection (a)(5) (concerning procedures for 
                paternity establishment);
                    ``(B) subsection (a)(10) (concerning modification 
                of orders);
                    ``(C) section 454A (concerning recording of orders 
                in the State case registry);
                    ``(D) subsection (a)(13) (concerning recording of 
                social security numbers);
                    ``(E) subsection (a)(14) (concerning interstate 
                enforcement); or
                    ``(F) subsection (c) (concerning expedited 
                procedures), other than paragraph (1)(A) thereof 
                (concerning establishment or modification of support 
                amount).''.
    (c) Automation of State Agency Functions.--Section 454A, as added 
by section 745(a)(2) of this Act and as amended by sections 711 and 
712(c) of this Act, is amended by adding at the end the following:
    ``(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. 731. 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 
                        becasue 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, to require the child and all other 
                        parties (other than individuals found under 
                        section 454(28) 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 (where the State 
                                so elects) from the alleged father if 
                                paternity is established; and
                                    ``(II) to obtain additional testing 
                                in any case where 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, in writing, and 
                        in a language that each can understand, 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.
                            ``(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 federal paternity 
                        acknowledgment affidavit.--Such procedures must 
                        require the State and those required to 
                        establish paternity to use only the affidavit 
                        developed 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.
                    ``(D) Status of signed paternity acknowledgment.--
                            ``(i) Legal finding of paternity.--
                        Procedures under which a signed acknowledgment 
                        of paternity is considered a legal finding of 
                        paternity, subject to the right of any 
                        signatory to rescind the acknowledgment within 
                        60 days.
                            ``(ii) Contest.--Procedures under which, 
                        after the 60-day period referred to in clause 
                        (i), a signed 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.
                            ``(iii) Rescission.--Procedures under 
                        which, after the 60-day period referred to in 
                        clause (i), a minor who has signed an 
                        acknowledgment of paternity other than in the 
                        presence of a parent or court-appointed 
                        guardian ad litem may rescind the 
                        acknowledgment in a judicial or administrative 
                        proceeding, until the earlier of--
                                    ``(I) attaining the age of 
                                majority; or
                                    ``(II) the date of the first 
                                judicial or administrative proceeding 
                                brought (after the signing) to 
                                establish a child support obligation, 
                                visitation rights, or custody rights 
                                with respect to the child whose 
                                paternity is the subject of the 
                                acknowledgment, and at which the minor 
                                is represented by a parent or guardian 
                                ad litem, or an attorney.
                    ``(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, where 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'' before 
the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 732. 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. 733. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 703(a), 712(a), 
and 713(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 inserting after paragraph (27) the following:
            ``(28) provide that the State agency responsible for 
        administering the State plan--
                    ``(A) shall require each individual who has applied 
                for or is receiving assistance under the State program 
                funded under part A to cooperate with the State in 
                establishing the paternity of, and 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 may require with respect to, the father of the child, subject to 
such good cause and other exceptions as the State may establish; and
                    ``(B) may require the individual and the child to 
                submit to genetic tests.''.

             Subtitle E--Program Administration and Funding

SEC. 741. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
    ``(2) The percent specified in this paragraph for any quarter is 66 
percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following:
    ``(c) Maintenance of Effort.--Notwithstanding subsection (a), the 
total expenditures under the State plan approved under this part for 
fiscal year 1997 and each succeeding fiscal year, reduced by the 
percentage specified in paragraph (2) for the fiscal year shall not be 
less than such total expenditures for fiscal year 1996, reduced by 66 
percent.''.

SEC. 742. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Adjustments to Federal Matching Rate.--Section 458 
(42 U.S.C. 658) is amended to read as follows:

``SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

    ``(a) Incentive Adjustments.--
            ``(1) In general.--Beginning with fiscal year 1999, the 
        Secretary shall increase the percent specified in section 
        455(a)(2) that applies to payments to a State under section 
        455(a)(1)(A) for each quarter in a fiscal year by a factor 
        reflecting the sum of the applicable incentive adjustments (if 
        any) determined in accordance with regulations under this 
        section with respect to the paternity establishment percentage 
        of the State for the immediately preceding fiscal year and with 
        respect to overall performance of the State in child support 
        enforcement during such preceding fiscal year.
            ``(2) Standards.--
                    ``(A) In general.--The Secretary shall specify in 
                regulations--
                            ``(i) the levels of accomplishment, and 
                        rates of improvement as alternatives to such 
                        levels, which a State must attain to qualify 
                        for an incentive adjustment under this section; 
                        and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to a State that achieves 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 12 percentage points, in 
                                connection with paternity 
                                establishment; and
                                    ``(II) 12 percentage points, in 
                                connection with overall performance in 
                                child support enforcement.
                    ``(B) Limitation.--In setting performance standards 
                pursuant to subparagraph (A)(i) and adjustment amounts 
                pursuant to subparagraph (A)(ii), the Secretary shall 
                ensure that the aggregate number of percentage point 
                increases as incentive adjustments to all States do not 
                exceed such aggregate increases as assumed by the 
                Secretary in estimates of the cost of this section as 
                of June 1994, unless the aggregate performance of all 
                States exceeds the projected aggregate performance of 
                all States in such cost estimates.
            ``(3) Determination of incentive adjustment.--The Secretary 
        shall determine the amount (if any) of the incentive adjustment 
        due each State on the basis of the data submitted by the State 
        pursuant to section 454(15)(B) concerning the levels of 
        accomplishment (and rates of improvement) with respect to 
        performance indicators specified by the Secretary pursuant to 
        this section.
            ``(4) Recycling of incentive adjustment.--A State to which 
        funds are paid by the Federal Government as a result of an 
        incentive adjustment under this section shall expend the funds 
        in the State program under this part within 2 years after the 
        date of the payment.
    ``(b) Definitions.--As used in this section:
            ``(1) Paternity establishment percentage.--The term 
        `paternity establishment percentage' means, with respect to a 
        State and a fiscal year--
                    ``(A) the total number of children in the State who 
                were born out of wedlock, who have not attained 1 year 
                of age and for whom paternity is established or 
                acknowledged during the fiscal year; divided by
                    ``(B) the total number of children born out of 
                wedlock in the State during the fiscal year.
            ``(2) Overall performance in child support enforcement.--
        The term `overall performance in child support enforcement' 
        means a measure or measures of the effectiveness of the State 
        agency in a fiscal year which takes into account factors 
        including--
                    ``(A) the percentage of cases requiring a support 
                order in which such an order was established;
                    ``(B) the percentage of cases in which child 
                support is being paid;
                    ``(C) the ratio of child support collected to child 
                support due; and
                    ``(D) the cost-effectiveness of the State program, 
                as determined in accordance with standards established 
                by the Secretary in regulations (after consultation 
                with the States).''.
    (b) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the 1st place such 
        term appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (c) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``its overall performance in child support 
                enforcement is satisfactory (as defined in section 
                458(b) and regulations of the Secretary), and'' after 
                ``1994,''; and
                    (B) in each of subparagraphs (A) and (B), by 
                striking ``75'' and inserting ``90''.
            (2) 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)''.
            (3) 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)--
                            (i) by inserting ``and overall performance 
                        in child support enforcement'' after 
                        ``paternity establishment percentages''; and
                            (ii) by inserting ``and securing support'' 
                        before the period.
    (d) Effective Dates.--
            (1) Incentive adjustments.--(A) The amendments made by 
        subsections (a) and (b) shall become effective on October 1, 
        1997, except to the extent provided in subparagraph (B).
            (B) Section 458 of the Social Security Act, as in effect 
        prior to 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 and after the date of the enactment of this Act.

SEC. 743. 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:
            ``(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, which shall 
                include such information as may be necessary to measure 
                State compliance with Federal requirements for 
                expedited procedures and timely case processing, 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 and overall performance in child support 
                enforcement) 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 section.

SEC. 744. 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 and timely 
case processing) 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 703(a), 712(a), 713(a), and 733 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 adding after paragraph (28) the following:
            ``(29) 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. 745. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) 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) Part D of title IV (42 U.S.C. 651-669) is amended by 
        inserting after section 454 the following:

``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 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 and overall performance in child support 
                enforcement 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 sections 703(a)(2) and 712(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, 1995, 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 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 745(a)(3) of 
                the Personal Responsibility 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:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 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).
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 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 the greater of--
            ``(I) 80 percent; or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
            (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 $260,000,000 in the 
                aggregate under section 455(a)(3) of the Social 
                Security Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000.
                    (B) Allocation of limitation among states.--The 
                total amount payable to a State under section 455(a)(3) 
                of such Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000 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. 746. 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:
    ``(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.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 716(e) of this Act, is amended by 
adding at the end the following:
    ``(n) 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. 747. 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:
                            ``(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);
                    (E) by redesignating clause (v) as clause (vii), 
                and inserting after clause (iii) the following:
                            ``(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 by 
        striking all that follows subparagraph (I).
    (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. 751. 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.--Procedures 
        under which the State shall review and adjust each support 
        order being enforced under this part. Such procedures shall 
        provide the following:
                    ``(A) The State shall review and, as appropriate, 
                adjust the support order every 3 years, taking into 
                account the best interests of the child involved.
                    ``(B)(i) The State may elect to review and, if 
                appropriate, adjust an order pursuant to subparagraph 
                (A) 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).
                    ``(ii) Any adjustment under clause (i) shall be 
                made without a requirement for proof or showing of a 
                change in circumstances.
                    ``(C) 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, apply the appropriate adjustment to the 
                orders eligible for adjustment under the threshold 
                established by the State.
                    ``(D) 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.
                    ``(E) The State shall provide notice 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 subparagraph (D). The 
                notice may be included in the order.''.

SEC. 752. 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:
            ``(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 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
                    ``(C) 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.''.

               Subtitle G--Enforcement of Support Orders

SEC. 761. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) Subsection (c) of section 6402 of the Internal Revenue 
        Code of 1986 is amended by striking the third sentence and 
        inserting the following new sentences: ``A reduction under this 
        subsection shall be after any other reduction allowed by 
        subsection (d) with respect to the Department of Health and 
Human Services and the Department of Education with respect to a 
student loan and before any other reduction allowed by law and before 
such overpayment is credited to the future liability for tax of such 
person pursuant to subsection (b). A reduction under this subsection 
shall be assigned to the State with respect to past-due support owed to 
individuals for periods such individuals were receiving assistance 
under part A or B of title IV of the Social Security Act only after 
satisfying all other past-due support.''.
            (2) Paragraph (2) of section 6402(d) of such Code is 
        amended--
                    (A) by striking ``Any overpayment'' and inserting 
                ``Except in the case of past-due legally enforceable 
                debts owed to the Department of Health and Human 
                Services or to the Department of Education with respect 
                to a student loan, any overpayment''; and
                    (B) by striking ``with respect to past-due support 
                collected pursuant to an assignment under section 
                402(a)(26) of the Social Security Act''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--
            (1) Section 464(a) (42 U.S.C. 664(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Offset 
                Authorized.--'';
                    (B) in paragraph (1)--
                            (i) in the 1st sentence, by striking 
                        ``which has been assigned to such State 
                        pursuant to section 402(a)(26) or section 
                        471(a)(17)''; and
                            (ii) in the 2nd sentence, by striking ``in 
                        accordance with section 457(b)(4) or (d)(3)'' 
                        and inserting ``as provided in paragraph (2)'';
                    (C) by striking paragraph (2) and inserting the 
                following:
    ``(2) The State agency shall distribute amounts paid by the 
Secretary of the Treasury pursuant to paragraph (1)--
            ``(A) in accordance with section 457(a), in the case of 
        past-due support assigned to a State pursuant to requirements 
        imposed pursuant to section 405(a)(8); and
            ``(B) to or on behalf of the child to whom the support was 
        owed, in the case of past-due support not so assigned.''; and
                    (D) in paragraph (3)--
                            (i) by striking ``or (2)'' each place such 
                        term appears; and
                            (ii) in subparagraph (B), by striking 
                        ``under paragraph (2)'' and inserting ``on 
                        account of past-due support described in 
                        paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting the following:
    ``(c) Definition.--As''; and
                    (B) by striking paragraphs (2) and (3).

SEC. 762. 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 
        subparagraphs (A) and (B) 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 pension, or as compensation 
                                for a service-connected disability or 
                                death (except any compensation paid by 
                                the Secretary to a member of the Armed 
                                Forces who is in receipt of retired or 
                                retainer pay if the member has waived a 
                                portion of the retired pay of the 
                                member in order to receive the 
                                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.--As used in 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 periodic payments of funds for the 
        support and maintenance of a child or children with respect to 
        which the individual has such an obligation, and (subject to 
        and in accordance with State law) includes payments to provide 
        for health care, education, recreation, clothing, or to meet 
        other specific needs of such a child or children, 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.
            ``(3) Alimony.--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. Such term does not include 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 of competent jurisdiction in 
                        any State, territory, or possession of the 
                        United States;
                            ``(ii) a court 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 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 to satisfy 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:
                    ``(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 by inserting ``or a court order for the 
        payment of child support not included in or accompanied by such 
        a decree or settlement,'' before ``which--''.
            (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 first 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:
    ``(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. 763. 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 762(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:
    ``(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: ``In the case 
        of a spouse or former spouse who, pursuant to section 405(a)(8) 
        of the Social Security Act (42 U.S.C. 605(a)(8)), 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:
    ``(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 satisy 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 satisy 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 first pay period that begins after 
        such 30-day period.

SEC. 764. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 721 of this Act, 
is amended by adding at the end the following:
    ``(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. 765. SENSE OF THE CONGRESS THAT STATES SHOULD SUSPEND DRIVERS', 
              BUSINESS, AND OCCUPATIONAL LICENSES OF PERSONS OWING 
              PAST-DUE CHILD SUPPORT.

    It is the sense of the Congress that each State should suspend any 
driver's license, business license, or occupational license issued to 
any person who owes past-due child support.

SEC. 766. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 701(a), 715, 717(a), and 723 of this Act, is 
amended by adding at the end the following:
            ``(16) Procedures to ensure that persons owing past-due 
        support work or have a plan for payment of such support.--
                    ``(A) Procedures requiring the State, 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
                            ``(ii) if the individual is subject to such 
                        a plan and is not incapacitated, participate in 
                        such work activities (as defined in section 
                        404(b)(1)) as the court deems appropriate.
                    ``(B) As used in 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.''.

SEC. 767. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 716 and 746(b) 
of this Act, is amended by adding at the end the following:
    ``(o) Support Order Defined.--As used in this part, the term 
`support order' means an order issued by a court or an administrative 
process established under State law that requires support and 
maintenance of a child or of a child and the parent with whom the child 
is living.''.

                      Subtitle H--Medical Support

SEC. 771. TECHNICAL 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 by an 
                administrative adjudicator 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 first 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 first 
                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 first 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.

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

SEC. 781. 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 absent 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. 791. 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 enactment.
    (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 first day of the first calendar quarter 
beginning after the close of the first 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 title.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. SCORING.

    (a) In General.--None of the changes in direct spending resulting 
from this Act shall be reflected in estimates under section 252(d) of 
the Balanced Budget and Emergency Deficit Control Act of 1985.
    (b) Technical Amendment.--Section 251(b)(2) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by adding at the 
end the following new subparagraph:
            ``(H) Special allowance for welfare reform.--For any fiscal 
        year, the adjustments shall be appropriations for discretionary 
        programs resulting from the Personal Responsibility Act of 1995 
        (as described in the joint explanatory statement accompanying a 
        conference report on that Act) in discretionary accounts and 
        the outlays flowing in all years from such appropriations (but 
        not to exceed amounts authorized for those programs by that Act 
        for that fiscal year) minus appropriations for comparable 
        discretionary programs for fiscal year 1995 (as described in 
        the joint explanatory statement accompanying a conference 
        report on that Act.''.

SEC. 802. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) State and local government electronic benefit 
        transfer programs.--
                    ``(A) Exemption generally.--The disclosures, 
                protections, responsibilities, and remedies established 
                under this title, and any regulation prescribed or 
                order issued by the Board in accordance with this 
                title, shall not apply to any electronic benefit 
                transfer program established under State or local law 
                or administered by a State or local government.
                    ``(B) Exception for direct deposit into recipient's 
                account.--Subparagraph (A) shall not apply with respect 
                to any electronic funds transfer under an electronic 
                benefit transfer program for deposits directly into a 
                consumer account held by the recipient of the benefit.
                    ``(C) Rule of construction.--No provision of this 
                paragraph may be construed as--
                            ``(i) affecting or altering the protections 
                        otherwise applicable with respect to benefits 
                        established by Federal, State, or local law; or
                            ``(ii) otherwise superseding the 
                        application of any State or local law.
                    ``(D) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the term 
                `electronic benefit transfer program'--
                            ``(i) means a program under which a 
                        government agency distributes needs-tested 
                        benefits by establishing accounts to be 
                        accessed by recipients electronically, such as 
                        through automated teller machines, or point-of-
                        sale terminals; and
                            ``(ii) does not include employment-related 
                        payments, including salaries and pension, 
                        retirement, or unemployment benefits 
                        established by Federal, State, or local 
                        governments.''.
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