[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2915 Introduced in House (IH)]

  2d Session
                                H. R. 2915

 To enhance support and work opportunities for families with children, 
        reduce welfare dependence, and control welfare spending.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 1996

  Mr. Hayes introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
   Agriculture, Economic and Educational Opportunities, Banking and 
  Financial Services, Government Reform and Oversight, Commerce, the 
Judiciary, and International Relations, 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 enhance support and work opportunities for families with children, 
        reduce welfare dependence, and control welfare spending.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Work Opportunity 
Act of 1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Sec. 100. References to Social Security Act.
Sec. 101. Block grants to States.
Sec. 102. Services provided by charitable, religious, or private 
                            organizations.
Sec. 103. Limitations on use of funds for certain purposes.
Sec. 104. Continued application of current standards under medicaid 
                            program.
Sec. 105. Census data on grandparents as primary caregivers for their 
                            grandchildren.
Sec. 105A. Development of prototype of counterfeit-resistant social 
                            security card required.
Sec. 106. Conforming amendments to the Social Security Act.
Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and 
                            related provisions.
Sec. 108. Conforming amendments to other laws.
Sec. 109. Study of effect of welfare reform on grandparents as primary 
                            caregivers.
Sec. 110. Disclosure of receipt of Federal funds.
Sec. 110A. Modifications to the job opportunities for certain low-
                            income individuals program.
Sec. 110B. Demonstration projects for school utilization.
Sec. 110C. Corrective compliance plan.
Sec. 110D. Parental responsibility contracts.
Sec. 110E. Corrective action plan.
Sec. 111. Secretarial submission of legislative proposal for technical 
                            and conforming amendments.
Sec. 112. Effective date; transition rule.
                 TITLE II--SUPPLEMENTAL SECURITY INCOME

                  Subtitle A--Eligibility Restrictions

Sec. 201. Denial of supplemental security income benefits by reason of 
                            disability to drug addicts and alcoholics.
Sec. 202. Limited eligibility of noncitizens for SSI benefits.
Sec. 203. Denial of SSI benefits for 10 years to individuals found to 
                            have fraudulently misrepresented residence 
                            in order to obtain benefits simultaneously 
                            in 2 or more States.
Sec. 204. Denial of SSI benefits for fugitive felons and probation and 
                            parole violators.
Sec. 205. Effective dates; application to current recipients.
               Subtitle B--Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability 
                            reviews.
Sec. 213. Additional accountability requirements.
   Subtitle C--Studies Regarding Supplemental Security Income Program

Sec. 221. Annual report on the supplemental security income program.
Sec. 222. Improvements to disability evaluation.
Sec. 223. Study of disability determination process.
Sec. 224. Study by General Accounting Office.
      Subtitle D--National Commission on the Future of Disability

Sec. 231. Establishment.
Sec. 232. Duties of the Commission.
Sec. 233. Membership.
Sec. 234. Staff and support services.
Sec. 235. Powers of Commission.
Sec. 236. Reports.
Sec. 237. Termination.
               Subtitle E--State Supplementation Programs

Sec. 241. Repeal of maintenance of effort requirements applicable to 
                            optional State programs for supplementation 
                            of SSI benefits.
                 Subtitle F--Retirement Age Eligibility

Sec. 251. Eligibility for supplemental security income benefits based 
                            on social security retirement age.
                     TITLE III--FOOD STAMP PROGRAM

                     Subtitle A--Food Stamp Reform

Sec. 301. Declaration of policy.
Sec. 301A. Certification period.
Sec. 302. Treatment of children living at home.
Sec. 303. Optional additional criteria for separate household 
                            determinations.
Sec. 304. Adjustment of thrifty food plan.
Sec. 305. Definition of homeless individual.
Sec. 306. State options in regulations.
Sec. 307. Earnings of students.
Sec. 308. Energy assistance.
Sec. 309. Deductions from income.
Sec. 310. Amount of vehicle asset limitation.
Sec. 311. Benefits for aliens.
Sec. 312. Disqualification.
Sec. 313. Caretaker exemption.
Sec. 314. Employment and training.
Sec. 315. Comparable treatment for disqualification.
Sec. 316. Cooperation with child support agencies.
Sec. 317. Disqualification for child support arrears.
Sec. 318. Permanent disqualification for participating in 2 or more 
                            States.
Sec. 319. Work requirement.
Sec. 319A. Disqualification of fleeing felons.
Sec. 320. Electronic benefit transfers.
Sec. 321. Minimum benefit.
Sec. 322. Benefits on recertification.
Sec. 323. Optional combined allotment for expedited households.
Sec. 324. Failure to comply with other welfare and public assistance 
                            programs.
Sec. 325. Allotments for households residing in institutions.
Sec. 326. Operation of food stamp offices.
Sec. 327. State employee and training standards.
Sec. 328. Exchange of law enforcement information.
Sec. 329. Expedited coupon service.
Sec. 330. Fair hearings.
Sec. 331. Income and eligibility verification system.
Sec. 332. Collection of overissuances.
Sec. 333. Termination of Federal match for optional information 
                            activities.
Sec. 334. Standards for administration.
Sec. 335. Work supplementation or support program.
Sec. 336. Waiver authority.
Sec. 337. Authorization of pilot projects.
Sec. 338. Response to waivers.
Sec. 339. Private sector employment initiatives.
Sec. 340. Reauthorization of appropriations.
Sec. 341. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 342. Simplified food stamp program.
Sec. 343. Optional State food assistance block grant.
Sec. 344. Effective date.
                 Subtitle B--Anti-Fraud and Trafficking

Sec. 351. Expanded definition of coupon.
Sec. 352. Doubled penalties for violating food stamp program 
                            requirements.
Sec. 353. Authority to establish authorization periods.
Sec. 354. Specific period for prohibiting participation of stores based 
                            on lack of business integrity.
Sec. 355. Information for verifying eligibility for authorization.
Sec. 356. Waiting period for stores that initially fail to meet 
                            authorization criteria.
Sec. 357. Bases for suspensions and disqualifications.
Sec. 358. Disqualification of stores pending judicial and 
                            administrative review.
Sec. 359. Disqualification of retailers who are disqualified under the 
                            WIC program.
Sec. 360. Permanent debarment of retailers who intentionally submit 
                            falsified applications.
Sec. 361. Expanded criminal forfeiture for violations.
Sec. 362. Effective date.
                   TITLE IV--CHILD NUTRITION PROGRAMS

                    Subtitle A--Reimbursement Rates

Sec. 401. Termination of additional payment for lunches served in high 
                            free and reduced price participation 
                            schools.
Sec. 402. Value of food assistance.
Sec. 403. Lunches, breakfasts, and supplements.
Sec. 404. Summer food service program for children.
Sec. 405. Special milk program.
Sec. 406. Free and reduced price breakfasts.
Sec. 407. Conforming reimbursement for paid breakfasts and lunches.
                       Subtitle B--Grant Programs

Sec. 411. School breakfast startup grants.
Sec. 412. Nutrition education and training programs.
Sec. 413. Effective date.
                      Subtitle C--Other Amendments

Sec. 421. Free and reduced price policy statement.
Sec. 422. Summer food service program for children.
Sec. 423. Child and adult care food program.
Sec. 424. Reducing required reports to State agencies and schools.
                      Subtitle D--Reauthorization

Sec. 431. Commodity distribution program; commodity supplemental food 
                            program.
Sec. 432. Emergency food assistance program.
Sec. 433. Soup kitchens program.
Sec. 434. National commodity processing.
Sec. 435. Commodity supplemental food program.
                          TITLE V--NONCITIZENS

Sec. 501. State option to prohibit assistance for certain aliens.
Sec. 502. Deemed income requirement for Federal and federally funded 
                            programs.
Sec. 503. Requirements for sponsor's affidavit of support.
Sec. 504. Limited eligibility of noncitizens for SSI benefits.
Sec. 505. Treatment of noncitizens.
Sec. 506. Information reporting.
Sec. 507. Prohibition on payment of Federal benefits to certain 
                            persons.
                          TITLE VI--CHILD CARE

Sec. 601. Short title.
Sec. 602. Amendments to the Child Care and Development Block Grant Act 
                            of 1990.
Sec. 603. Repeals and technical and conforming amendments.
             TITLE VII--PROTECTION OF BATTERED INDIVIDUALS

Sec. 701. Exemption of battered individuals from certain requirements.
                     TITLE VIII--ADOPTION EXPENSES

Sec. 801. Refundable credit for adoption expenses.
Sec. 802. Exclusion of adoption assistance.
Sec. 803. Withdrawal from IRA for adoption expenses.
                        TITLE IX--CHILD SUPPORT

Sec. 900. Reference to Social Security Act.
     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 901. State obligation to provide child support enforcement 
                            services.
Sec. 902. Distribution of child support collections.
Sec. 903. Rights to notification and hearings.
Sec. 904. Privacy safeguards.
                  Subtitle B--Locate and Case Tracking

Sec. 911. State case registry.
Sec. 912. Collection and disbursement of support payments.
Sec. 913. State directory of new hires.
Sec. 914. Amendments concerning income withholding.
Sec. 915. Locator information from interstate networks.
Sec. 916. Expansion of the Federal parent locator service.
Sec. 917. Collection and use of social security numbers for use in 
                            child support enforcement.
         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 921. Adoption of uniform State laws.
Sec. 922. Improvements to full faith and credit for child support 
                            orders.
Sec. 923. Administrative enforcement in interstate cases.
Sec. 924. Use of forms in interstate enforcement.
Sec. 925. State laws providing expedited procedures.
                  Subtitle D--Paternity Establishment

Sec. 931. State laws concerning paternity establishment.
Sec. 932. Outreach for voluntary paternity establishment.
Sec. 933. Cooperation by applicants for and recipients of temporary 
                            family assistance.
             Subtitle E--Program Administration and Funding

Sec. 941. Performance-based incentives and penalties.
Sec. 942. Federal and State reviews and audits.
Sec. 943. Required reporting procedures.
Sec. 944. Automated data processing requirements.
Sec. 945. Technical assistance.
Sec. 946. Reports and data collection by the Secretary.
      Subtitle F--Establishment and Modification of Support Orders

Sec. 951. National Child Support Guidelines Commission.
Sec. 952. Simplified process for review and adjustment of child support 
                            orders.
Sec. 953. Furnishing consumer reports for certain purposes relating to 
                            child support.
Sec. 954. Nonliability for depository institutions providing financial 
                            records to State child support enforcement 
                            agencies in child support cases.
               Subtitle G--Enforcement of Support Orders

Sec. 961. Internal Revenue Service collection of arrearages.
Sec. 962. Authority to collect support from Federal employees.
Sec. 963. Enforcement of child support obligations of members of the 
                            armed forces.
Sec. 964. Voiding of fraudulent transfers.
Sec. 965. Work requirement for persons owing child support.
Sec. 966. Definition of support order.
Sec. 967. Reporting arrearages to credit bureaus.
Sec. 968. Liens.
Sec. 969. State law authorizing suspension of licenses.
Sec. 970. Denial of passports for nonpayment of child support.
Sec. 971. International child support enforcement.
Sec. 972. Denial of means-tested Federal benefits to noncustodial 
                            parents who are delinquent in paying child 
                            support.
Sec. 973. Child support enforcement for Indian tribes.
Sec. 974. Financial institution data matches.
                      Subtitle H--Medical Support

Sec. 975. Technical correction to ERISA definition of medical child 
                            support order.
Sec. 976. Enforcement of orders for health care coverage.
Sec. 977. Enforcement of orders against paternal grandparents in cases 
                            of minor parents.
Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

Sec. 981. Grants to States for access and visitation programs.
                    Subtitle J--Effect of Enactment

Sec. 991. Effective dates.
                   TITLE X--REFORM OF PUBLIC HOUSING

Sec. 1001. Ceiling rents.
Sec. 1002. Definition of adjusted income for public housing.
Sec. 1003. Failure to comply with other welfare and public assistance 
                            programs.
Sec. 1004. Applicability to Indian housing.
Sec. 1005. Implementation.
Sec. 1006. Demonstration project for elimination of take-one-take-all 
                            requirement.
Sec. 1007. Fraud under means-tested welfare and public assistance 
                            programs.
Sec. 1008. Effective date.
             TITLE XI--CHILD ABUSE PREVENTION AND TREATMENT

Sec. 1101. Short title.
                      Subtitle A--General Program

Sec. 1111. Reference.
Sec. 1112. Findings.
Sec. 1113. Office of Child Abuse and Neglect.
Sec. 1114. Advisory Board on Child Abuse and Neglect.
Sec. 1115. Repeal of interagency task force.
Sec. 1116. National Clearinghouse for Information Relating to Child 
                            Abuse.
Sec. 1117. Research, evaluation and assistance activities.
Sec. 1118. Grants for demonstration programs.
Sec. 1119. State grants for prevention and treatment programs.
Sec. 1120. Repeal.
Sec. 1121. Miscellaneous requirements.
Sec. 1122. Definitions.
Sec. 1123. Authorization of appropriations.
Sec. 1124. Rule of construction.
Sec. 1125. Technical amendment.
 Subtitle B--Community-Based Child Abuse and Neglect Prevention Grants

Sec. 1131. Establishment of program.
Sec. 1132. Repeals.
          Subtitle C--Family Violence Prevention and Services

Sec. 1141. Reference.
Sec. 1142. State demonstration grants.
Sec. 1143. Allotments.
Sec. 1144. Authorization of appropriations.
                   Subtitle D--Adoption Opportunities

Sec. 1151. Reference.
Sec. 1152. Findings and purpose.
Sec. 1153. Information and services.
Sec. 1154. Authorization of appropriations.
          Subtitle E--Abandoned Infants Assistance Act of 1986

Sec. 1161. Reauthorization.
            Subtitle F--Reauthorization of Various Programs

Sec. 1171. Missing Children's Assistance Act.
Sec. 1172. Victims of Child Abuse Act of 1990.
         TITLE XII--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 1201. Reductions.
Sec. 1202. Reductions in Federal bureaucracy.
Sec. 1203. Reducing personnel in Washington, DC, area.
                  TITLE XIII--MISCELLANEOUS PROVISIONS

Sec. 1301. Expenditure of Federal funds in accordance with laws and 
                            procedures applicable to expenditure of 
                            State funds.
Sec. 1302. Elimination of housing assistance with respect to fugitive 
                            felons and probation and parole violators.
Sec. 1303. Sense of the Senate regarding Enterprise Zones.
Sec. 1304. Sense of the Senate regarding the inability of the non-
                            custodial parent to pay child support.
Sec. 1305. Food stamp eligibility.
Sec. 1306. Sense of the Senate on legislative accountability for 
                            unfunded mandates in welfare reform 
                            legislation.
Sec. 1307. Sense of the Senate regarding competitive bidding for infant 
                            formula.
Sec. 1308. Establishing national goals to prevent teenage pregnancies.
Sec. 1309. Sense of the Senate regarding enforcement of statutory rape 
                            laws.
Sec. 1310. Sanctioning for testing positive for controlled substances.
Sec. 1311. Abstinence education.

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

SEC. 100. REFERENCES TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this title 
an amendment is expressed in terms of an amendment to or repeal of a 
section or other provision, the reference shall be considered to be 
made to that section or other provision of the Social Security Act.

SEC. 101. BLOCK GRANTS TO STATES.

    (a) Repeals.--
            (1) In general.--Parts A and F of title IV (42 U.S.C. 601 
        et seq. and 682 et seq.) are hereby repealed.
            (2) Rules and regulations.--The Secretary of Health and 
        Human Services shall ensure that any rules and regulations 
        relating to the provisions of law repealed in paragraph (1) 
        shall cease to have effect on and after the date of the repeal 
        of such provisions.
    (b) Block Grants to States for Temporary Assistance for Needy 
Families With Minor Children.--Title IV (42 U.S.C. 601 et seq.) is 
amended by inserting before part B the following:

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

``SEC. 400. NO INDIVIDUAL ENTITLEMENT.

    ``Notwithstanding any other provision of law, no individual is 
entitled to any assistance under this part.

``SEC. 401. PURPOSE.

    ``The purpose of this part is to increase the flexibility of States 
in operating a program designed to--
            ``(1) provide assistance to needy families with minor 
        children;
            ``(2) provide job preparation and opportunities for such 
        families; and
            ``(3) prevent and reduce the incidence of out-of-wedlock 
        pregnancies, with a special emphasis on teenage pregnancies, 
        and establish annual goals for preventing and reducing such 
        pregnancies with respect to fiscal years 1996 through 2000.

``SEC. 402. ELIGIBLE STATES; STATE PLAN.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of family assistance program.--A written 
        document that outlines how the State intends to do the 
        following:
                    ``(A) Conduct a program designed to serve all 
                political subdivisions in the State to--
                            ``(i) provide assistance to needy families 
                        with not less than 1 minor child (or any 
                        expectant family); and
                            ``(ii) provide a parent or caretaker 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 a parent or caretaker receiving 
                assistance under the program to engage in work (as 
                defined by the State) when the State determines the 
                parent or caretaker is ready to engage in work, or 
                after 24 months (whether or not consecutive) of 
                receiving assistance under the program, whichever is 
                earlier.
                    ``(C) Satisfy the minimum participation rates 
                specified in section 404.
                    ``(D) Treat--
                            ``(i) families with minor children moving 
                        into the State from another State; and
                            ``(ii) noncitizens of the United States.
                    ``(E) Safeguard and restrict the use and disclosure 
                of information about individuals and families receiving 
                assistance under the program.
                    ``(F) Establish goals and take action to prevent 
                and reduce the incidence of out-of-wedlock pregnancies, 
                with special emphasis on teenage pregnancies.
                    ``(G) Community service.--Not later than 2 years 
                after the date of the enactment of this Act, consistent 
                with the exception provided in section 404(d), require 
                participation by, and offer to, unless the State opts 
                out of this provision by notifying the Secretary, a 
                parent or caretaker receiving assistance under the 
                program, after receiving such assistance for 3 months--
                            ``(i) is not exempt from work requirements; 
                        and
                            ``(ii) is not engaged in work as determined 
                        under section 404(c),
                in community service employment, with minimum hours per 
                week and tasks to be determined by the State.
            ``(2) Family assistance program strategic plan.--
                    ``(A) In general.--A single comprehensive State 
                Family Assistance Program Strategic Plan (hereafter 
                referred to in this section as the `State Plan') 
                describing a 3-year strategic plan for the statewide 
                program designed to meet the State goals and reach the 
                State benchmarks for program activities of the family 
                assistance program.
                    ``(B) Contents of the state plan.--The State plan 
                shall include:
                            ``(i) State goals.--A description of the 
                        goals of the 3-year plan, including outcome 
                        related goals of and benchmarks for program 
                        activities of the family assistance program.
                            ``(ii) Current year plan.--A description of 
                        how the goals and benchmarks described in 
                        clause (i) will be achieved, or how progress 
                        toward the goals and benchmarks will be 
                        achieved, during the fiscal year in which the 
                        plan has been submitted.
                            ``(iii) Performance indicators.--A 
                        description of performance indicators to be 
                        used in measuring or assessing the relevant 
                        output service levels and outcomes of relevant 
                        program activities.
                            ``(iv) External factors.--Information on 
                        those key factors external to the program and 
                        beyond the control of the State that could 
                        significantly affect the attainment of the 
                        goals and benchmarks.
                            ``(v) Evaluation mechanisms.--Information 
                        on a mechanism for conducting program 
                        evaluation, to be used to compare actual 
                        results with the goals and benchmarks and 
                        designate the results on a scale ranging from 
                        highly successful to failing to reach the goals 
                        and benchmarks of the program.
                            ``(vi) Minimum participation rates.--
                        Information on how the minimum participation 
                        rates specified in section 404 will be 
                        satisfied.
                            ``(vii) Estimate of expenditures.--An 
                        estimate of the total amount of State or local 
                        expenditures under the program for the fiscal 
                        year in which the plan is submitted.
            ``(3) Certification that the state will operate a child 
        support enforcement program.--A certification by the chief 
        executive officer of the State that, during the fiscal year, 
        the State will operate a child support enforcement program 
        under the State plan approved under part D.
            ``(4) Certification that the state will operate a child 
        protection program.--A certification by the chief executive 
        officer of the State that, during the fiscal year, the State 
        will operate a child protection program under the State plan 
        approved under part B.
            ``(5) Certification that the state will operate a foster 
        care and adoption assistance program.--A certification by the 
        chief executive officer of the State that, during the fiscal 
        year, the State will operate a foster care and adoption 
        assistance program under the State plan approved under part E.
            ``(6) Certification that the state will participate in the 
        income and eligibility verification system.--A certification by 
        the chief executive officer of the State that, during the 
        fiscal year, the State will participate in the income and 
        eligibility verification system required by section 1137.
            ``(7) Certification of the administration of the program.--
        A certification by the chief executive officer of the State 
        specifying which State agency or agencies are responsible for 
        the administration and supervision of the State program for the 
        fiscal year and ensuring that local governments and private 
        sector organizations have been consulted regarding the plan and 
        design of welfare services in the State so that services are 
        provided in a manner appropriate to local populations.
            ``(8) Certification that required reports will be 
        submitted.--A certification by the chief executive officer of 
        the State that the State shall provide the Secretary with any 
        reports required under this part.
            ``(9) Estimate of fiscal year state and local 
        expenditures.--An estimate of the total amount of State and 
        local expenditures under the State program for the fiscal year.
    ``(b) Certification That the State Will Provide Access to 
Indians.--
            ``(1) In general.--In recognition of the Federal 
        Government's trust responsibility to, and government-to-
        government relationship with, Indian tribes, the Secretary 
        shall ensure that Indians receive at least their equitable 
        share of services under the State program, by requiring a 
        certification by the chief executive officer of each State 
        described in paragraph (2) that, during the fiscal year, the 
        State shall provide Indians in each Indian tribe that does not 
        have a tribal family assistance plan approved under section 414 
        for a fiscal year with equitable access to assistance under the 
        State program funded under this part.
            ``(2) State described.--For purposes of paragraph (1), a 
        State described in this paragraph is a State in which there is 
        an Indian tribe that does not have a tribal family assistance 
        plan approved under section 414 for a fiscal year.
    ``(c) Distribution of State Plan.--
            ``(1) Public availability of summary.--The State shall make 
        available to the public a summary of the State plan submitted 
        under this section.
            ``(2) Copy to auditor.--The State shall provide the 
        approved entity conducting the audit under section 408 with a 
        copy of the State plan submitted under this section.
    ``(d) Definitions.--For purposes of this part, the following 
definitions shall apply:
            ``(1) Adult.--The term `adult' means an individual who is 
        not a minor child.
            ``(2) Minor child.--The term `minor child' means an 
        individual--
                    ``(A) who--
                            ``(i) has not attained 18 years of age; or
                            ``(ii) has not attained 19 years of age and 
                        is a full-time student in a secondary school 
                        (or in the equivalent level of vocational or 
                        technical training); and
                    ``(B) who resides with such individual's custodial 
                parent or other caretaker relative.
            ``(3) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(4) Indian, indian tribe, and tribal organization.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the terms `Indian', `Indian tribe', 
                and `tribal organization' have the meaning given such 
                terms by section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b).
                    ``(B) In alaska.--For purposes of making tribal 
                family assistance grants under section 414 on behalf of 
                Indians in Alaska, the term `Indian tribe' shall mean 
                only the following Alaska Native regional nonprofit 
                corporations:
                            ``(i) Arctic Slope Native Association.
                            ``(ii) Kawerak, Inc.
                            ``(iii) Maniilaq Association.
                            ``(iv) Association of Village Council 
                        Presidents.
                            ``(v) Tanana Chiefs Conference.
                            ``(vi) Cook Inlet Tribal Council.
                            ``(vii) Bristol Bay Native Association.
                            ``(viii) Aleutian and Pribilof Island 
                        Association.
                            ``(ix) Chugachmuit.
                            ``(x) Tlingit Haida Central Council.
                            ``(xi) Kodiak Area Native Association.
                            ``(xii) Copper River Native Association.
            ``(5) State.--Except as otherwise specifically provided, 
        the term `State' includes the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, and American Samoa.

``SEC. 403. PAYMENTS TO STATES AND INDIAN TRIBES.

    ``(a) Grant Amount.--
            ``(1) In general.--Subject to the provisions of paragraphs 
        (3) and (5), section 407 (relating to penalties), and section 
        414(g), for each of fiscal years 1996, 1997, 1998, 1999, and 
        2000, the Secretary shall pay--
                    ``(A) each eligible State a grant in an amount 
                equal to the State family assistance grant for the 
                fiscal year, for each of fiscal years 1998 and 1999, 
                the amount of the State's job placement performance 
                bonus determined under subsection (f)(1) for the fiscal 
                year, and for fiscal year 2000, the amount of the 
                State's share of the performance bonus and high 
                performance bonus determined under section 418 for such 
                fiscal year; and
                    ``(B) each Indian tribe with an approved tribal 
                family assistance plan a tribal family assistance grant 
                in accordance with section 414.
            ``(2) State family assistance grant.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(A), a State family assistance grant for any State 
                for a fiscal year is an amount equal to the sum of--
                            ``(i) the total amount of the Federal 
                        payments to the State under section 403 (other 
                        than Federal payments to the State described in 
                        subparagraphs (A), (B) and (C) of section 
                        419(a)(2)) for fiscal year 1994 (as such 
                        section 403 was in effect during such fiscal 
                        year), plus
                            ``(ii) the total amount of the Federal 
                        payments to the State under subparagraphs (A), 
                        (B) and (C) of section 419(a)(2),
                as such payments were reported by the State on February 
                14, 1995, reduced by the amount, if any, determined 
                under subparagraph (B), and for fiscal year 2000, 
                reduced by the percent specified under section 
                418(a)(3), and increased by an amount, if any, 
                determined under paragraph (2)(D).
                    ``(B) Amount attributable to certain indian 
                families served by indian tribes.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the amount determined under 
                        this subparagraph is an amount equal to the 
                        Federal payments to the State under section 403 
                        for fiscal year 1994 (as in effect during such 
                        fiscal year) attributable to expenditures by 
                        the State under parts A and F of this title (as 
                        so in effect) for Indian families described in 
                        clause (ii).
                            ``(ii) Indian families described.--For 
                        purposes of clause (i), Indian families 
                        described in this clause are Indian families 
                        who reside in a service area or areas of an 
                        Indian tribe receiving a tribal family 
                        assistance grant under section 414.
                    ``(C) Notification.--Not later than 3 months prior 
                to the payment of each quarterly installment of a State 
                grant under subsection (a)(1), the Secretary shall 
                notify the State of the amount of the reduction 
                determined under subparagraph (B) with respect to the 
                State.
                    ``(D) Amount attributable to state plan 
                amendments.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A) and subject to the limitation 
                        in clause (ii), the amount determined under 
                        this subparagraph is an amount equal to the 
                        Federal payment under section 403(a)(5) to the 
                        State for emergency assistance in fiscal year 
                        1995 under any State plan amendment made under 
                        section 402 during fiscal year 1994 (as such 
                        sections were in effect before the date of the 
                        enactment of the Work Opportunity Act of 1995).
                            ``(ii) Limitation.--Amounts made available 
                        under clause (i) to all States shall not exceed 
$800,000,000 for the 5-fiscal year period beginning in fiscal year 
1996. If amounts available under this subparagraph are less than the 
total amount of emergency assistance payments referred to in clause 
(i), the amount payable to a State shall be equal to an amount which 
bears the same relationship to the total amount available under this 
clause as the State emergency assistance payment bears to the total 
amount of such payments.
                            ``(iii) Budget scoring.--Notwithstanding 
                        section 257(b)(2) of the Balanced Budget and 
                        Emergency Deficit Control Act of 1985, the 
                        baseline shall assume that no grant shall be 
                        made under this subparagraph after fiscal year 
                        2000.
            ``(3) Supplemental grant amount for population increases in 
        certain states.--
                    ``(A) In general.--The amount of the grant payable 
                under paragraph (1) to a qualifying State for each of 
                fiscal years 1997, 1998, 1999, and 2000 shall be 
                increased by an amount equal to 2.5 percent of the 
                amount that the State received under this section in 
                the preceding fiscal year.
                    ``(B) Increase to remain in effect even if state 
                fails to qualify in later years.--Subject to section 
                407, in no event shall the amount of a grant payable 
                under paragraph (1) to a State for any fiscal year be 
                less than the amount the State received under this 
                section for the preceding fiscal year.
                    ``(C) Qualifying state.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `qualifying State', with 
                        respect to any fiscal year, means a State 
                        that--
                                    ``(I) had an average level of State 
                                welfare spending per poor person in the 
                                preceding fiscal year that was less 
                                than the national average level of 
                                State welfare spending per poor person 
                                in the preceding fiscal year; and
                                    ``(II) had an estimated rate of 
                                State population growth as determined 
                                by the Bureau of the Census for the 
                                most recent fiscal year for which 
                                information is available that was 
                                greater than the average rate of 
                                population growth for all States as 
                                determined by the Bureau of the Census 
                                for such fiscal year.
                            ``(ii) Certain States Deemed Qualifying 
                        States.--For purposes of this paragraph, a 
                        State shall be deemed to be a qualifying State 
                        for fiscal years 1997, 1998, 1999, and 2000 
                        if--
                                    ``(I) the level of State welfare 
                                spending per poor person in fiscal year 
                                1996 was less than 35 percent of the 
                                national average level of State welfare 
                                spending per poor person in fiscal year 
                                1996; or
                                    ``(II) a State has extremely high 
                                population growth (which for purposes 
                                of this clause shall be defined as a 
                                greater than ten percent increase in 
                                population from April 1, 1990 to July 
                                1, 1994, as determined by the Bureau of 
                                the Census).
                            ``(iii) State must qualify in fiscal year 
                        1997.--A State shall not be eligible to be a 
                        qualifying State under clause (i) for fiscal 
                        years after 1997 if the State was not a 
                        qualifying State under clause (i) in fiscal 
                        year 1997.
                    ``(D) Definitions.--For purposes of this paragraph:
                            ``(i) Level of state welfare spending per 
                        poor person.--The term `level of State welfare 
                        spending per poor person' means, with respect 
                        to a State for any fiscal year--
                                    ``(I) the amount of the grant 
                                received by the State under this 
                                section (prior to the application of 
                                section 407); divided by
                                    ``(II) the number of the 
                                individuals in the State who had an 
                                income below the poverty line according 
                                to the 1990 decennial census.
                            ``(ii) National average level of state 
                        welfare spending per poor person.--The term 
                        `national average level of State welfare 
                        spending per poor person' means an amount equal 
                        to--
                                    ``(I) the amount paid in grants 
                                under this section (prior to the 
                                application of section 407); divided by
                                    ``(II) the number of individuals in 
                                all States with an income below the 
                                poverty line according to the 1990 
                                decennial census.
                            ``(iii) Poverty line.--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)).
                            ``(iv) State.--The term `State' means each 
                        of the 50 States of the United States.
            ``(4) Appropriation.--
                    ``(A) States.--There are authorized to be 
                appropriated and there are appropriated $16,803,769,000 
                for each fiscal year described in paragraph (1) for the 
                purpose of paying--
                            ``(i) grants to States under paragraph 
                        (1)(A); and
                            ``(ii) tribal family assistance grants 
                        under paragraph (1)(B).
                    ``(B) Adjustment for qualifying states.--For the 
                purpose of increasing the amount of the grant payable 
                to a State under paragraph (1) in accordance with 
                paragraph (3), there are authorized to be appropriated 
                and there are appropriated--
                            ``(i) for fiscal year 1997, $85,860,000;
                            ``(ii) for fiscal year 1998, $173,276,000;
                            ``(iii) for fiscal year 1999, $263,468,000; 
                        and
                            ``(iv) for fiscal year 2000, $355,310,000.
            ``(5) Welfare partnership.--
                    ``(A) In general.--The amount of the grant 
                otherwise determined under paragraph (1) for fiscal 
                year 1997, 1998, 1999, or 2000 shall be reduced by the 
                amount by which State expenditures under the State 
                program funded under this part for the preceding fiscal 
                year is less than 80 percent of historic State 
                expenditures.
                    ``(B) Historic state expenditures.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `historic State 
                        expenditures' means expenditures by a State 
                        under parts A and F of title IV for fiscal year 
                        1994, as in effect during such fiscal year.
                            ``(ii) Hold harmless.--In no event shall 
                        the historic State expenditures applicable to 
                        any fiscal year exceed the amount which bears 
                        the same ratio to the amount determined under 
                        clause (i) as--
                                    ``(I) the grant amount otherwise 
                                determined under paragraph (1) for the 
                                preceding fiscal year (without regard 
                                to section 407), bears to
                                    ``(II) the total amount of Federal 
                                payments to the State under section 403 
                                for fiscal year 1994 (as in effect 
                                during such fiscal year).
                    ``(C) Determination of state expenditures for 
                preceding fiscal year.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the expenditures of a State under 
                        the State program funded under this part for a 
                        preceding fiscal year shall be equal to the sum 
                        of the State's expenditures under the program 
                        in the preceding fiscal year for--
                                    ``(I) cash assistance;
                                    ``(II) child care assistance;
                                    ``(III) education, job training, 
                                and work;
                                    ``(IV) administrative costs; and
                                    ``(V) any other use of funds 
                                allowable under section 403(b)(1).
                            ``(ii) Transfers from other state and local 
                        programs.--In determining State expenditures 
                        under clause (i), such expenditures shall not 
                        include funding supplanted by transfers from 
                        other State and local programs.
                    ``(D) Exclusion of federal amounts.--For purposes 
                of this paragraph, State expenditures shall not include 
                any expenditures from amounts made available by the 
                Federal Government, State funds expended for the 
                medicaid program under title XIX of this Act or any 
                successor to such program, and any State funds which 
                are used to match Federal funds or are expended as a 
                condition of receiving Federal funds under Federal 
programs other than under title I of this Act.
    ``(b) Use of Grant.--
            ``(1) In general.--Subject to this part, a State to which a 
        grant is made under this section may use the grant--
                    ``(A) in any manner that is reasonably calculated 
                to accomplish the purpose of this part; or
                    ``(B) in any manner that such State used amounts 
                received under part A or F of this title, as such parts 
                were in effect before October 1, 1995;
        except that not more than 15 percent of the grant may be used 
        for administrative purposes.
            ``(2) Authority to treat interstate immigrants under rules 
        of former state.--A State to which a grant is made under this 
        section may apply to a family some or all of the rules 
        (including benefit amounts) of the program operated under this 
        part of another State if the family has moved to the State from 
        the other State and has resided in the State for less than 12 
        months.
            ``(3) Authority to reserve certain amounts for 
        assistance.--A State may reserve amounts paid to the State 
        under this part for any fiscal year for the purpose of 
        providing, without fiscal year limitation, assistance under the 
        State program operated under this part. In the case of amounts 
        paid to the State that are set aside in accordance with section 
        419(a), the State may reserve such amounts for any fiscal year 
        only for the purpose of providing without fiscal year 
        limitation child care assistance under this part.
            ``(4) Authority to operate employment placement program.--A 
        State to which a grant is made under this section may use a 
        portion of the grant to make payments (or provide job placement 
        vouchers) to State-approved public and private job placement 
        agencies that provide employment placement services to 
        individuals who receive assistance under the State program 
        funded under this part.
            ``(5) Transferability of grant amounts.--A State may use up 
        to 30 percent of amounts received from a grant under this part 
        for a fiscal year to carry out State activities under the Child 
        Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
        seq.) (relating to child care block grants).
    ``(c) Timing of Payments.--The Secretary shall pay each grant 
payable to a State under this section in quarterly installments.
    ``(d) Federal Loan Fund for State Welfare Programs.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a revolving loan fund which shall 
        be known as the `Federal Loan Fund for State Welfare Programs' 
        (hereafter for purposes of this section referred to as the 
        `fund').
            ``(2) Deposits into fund.--
                    ``(A) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, $1,700,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the fund.
                    ``(B) Loan repayments.--The Secretary shall deposit 
                into the fund any principal or 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 states.--The Secretary shall make 
                loans from the fund to any loan-eligible State, as 
                defined in subparagraph (D), for a period to maturity 
                of not more than 3 years.
                    ``(B) Rate of interest.--The Secretary shall charge 
                and collect interest on any loan made under 
                subparagraph (A) at a rate equal to the current average 
                market yield on outstanding marketable obligations of 
                the United States with remaining periods to maturity 
                comparable to the period to maturity of the loan.
                    ``(C) Maximum loan.--The cumulative amount of any 
                loans made to a State under subparagraph (A) during 
                fiscal years 1996 through 2000 shall not exceed 10 
                percent of the State family assistance grant under 
                subsection (a)(2) for a fiscal year.
                    ``(D) Loan-eligible state.--For purposes of 
                subparagraph (A), a loan-eligible State is a State 
                which has not had a penalty described in section 
                407(a)(1) imposed against it at any time prior to the 
                loan being made.
            ``(5) Limitation on use of loan.--A State shall use a loan 
        received under this subsection only for any purpose for which 
        grant amounts received by the State under subsection (a) may be 
        used including--
                    ``(A) welfare anti-fraud activities; and
                    ``(B) the provision of assistance under the State 
                program to Indian families that have moved from the 
                service area of an Indian tribe with a tribal family 
                assistance plan approved under section 414.
    ``(e) Special Rule for Indian Tribes That Received JOBS Funds.--
            ``(1) In general.--The Secretary shall pay to each eligible 
        Indian tribe for each of fiscal years 1996, 1997, 1998, 1999, 
        and 2000 a grant in an amount equal to the amount received by 
        such Indian tribe in fiscal year 1995 under section 482(i) (as 
        in effect during such fiscal year) for the purpose of operating 
        a program to make work activities available to members of the 
        Indian tribe.
            ``(2) Eligible indian tribe.--For purposes of paragraph 
        (1), the term `eligible Indian tribe' means an Indian tribe or 
        Alaska Native organization that conducted a job opportunities 
        and basic skills training program in fiscal year 1995 under 
        section 482(i) (as in effect during such fiscal year).
            ``(3) Appropriation.--There are authorized to be 
        appropriated and there are hereby appropriated $7,638,474 for 
        each fiscal year described in paragraph (1) for the purpose of 
        paying grants in accordance with such paragraph.
    ``(f) Job Placement Performance Bonus.--
            ``(1) In general.--The job placement performance bonus 
        determined with respect to a State and a fiscal year is an 
        amount equal to the amount of the State's allocation of the job 
        placement performance fund determined in accordance with the 
        formula developed under paragraph (2).
            ``(2) Allocation formula; bonus fund.--
                    ``(A) Allocation formula.--
                            ``(i) In general.--Not later than September 
                        30, 1996, the Secretary of Health and Human 
                        Services shall develop and publish in the 
                        Federal Register a formula for allocating 
                        amounts in the job placement performance bonus 
                        fund to States based on the number of families 
                        that received assistance under a State program 
                        funded under this part in the preceding fiscal 
                        year that became ineligible for assistance 
                        under the State program as a result of 
                        unsubsidized employment during such year.
                            ``(ii) Factors to consider.--In developing 
                        the allocation formula under clause (i), the 
                        Secretary shall--
                                    ``(I) provide a greater financial 
                                bonus for individuals in families 
                                described in clause (i) who remain 
                                employed for greater periods of time or 
                                are at greater risk of long-term 
                                welfare dependency; and
                                    ``(II) take into account the 
                                unemployment conditions of each State 
                                or geographic area.
                    ``(B) Job placement performance bonus fund.--
                            ``(i) In general.--The amount in the job 
                        placement performance bonus fund for a fiscal 
                        year shall be an amount equal to the applicable 
                        percentage of the amount appropriated under 
                        section 403(a)(2)(A) for such fiscal year.
                            ``(ii) Applicable percentage.--For purposes 
                        of clause (i)(I), the applicable percentage 
                        shall be determined in accordance with the 
                        following table:

                                                         The applicable
``For fiscal year:                                       percentage is:
    1998..........................................                   3 
    1999..........................................                  4 .
    ``(g) Additional Amount for Studies and Demonstrations.--
            ``(1) In general.--There are authorized to be appropriated 
        and there are appropriated for each fiscal year described in 
        subsection (a)(1) an additional $20,000,000 for the purpose of 
        paying--
                    ``(A) the Federal share of any State-initiated 
                study approved under section 410(g);
                    ``(B) an amount determined by the Secretary to be 
                necessary to operate and evaluate demonstration 
                projects, relating to part A of title IV of this Act, 
                that are in effect or approved under section 1115 as of 
                October 1, 1995, and are continued after such date;
                    ``(C) the cost of conducting the research described 
                in section 410(a); and
                    ``(D) the cost of developing and evaluating 
                innovative approaches for reducing welfare dependency 
                and increasing the well-being of minor children under 
                section 410(b).
            ``(2) Allocation.--Of the amount appropriated under 
        paragraph (1) for a fiscal year--
                    ``(A) 50 percent shall be allocated for the 
                purposes described in subparagraphs (A) and (B) of 
                paragraph (1), and
                    ``(B) 50 percent shall be allocated for the 
                purposes described in subparagraphs (C) and (D) of 
                paragraph (1).
    ``(h) Secretary.--For purposes of this section, the term 
`Secretary' means the Secretary of the Treasury.
    ``(i) Contingency Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a fund which shall be known as 
        the `Contingency Fund for State Welfare Programs' (hereafter in 
        this section referred to as the `Fund').
            ``(2) Deposits into fund.--Out of any money in the Treasury 
        of the United States not otherwise appropriated, there are 
        hereby appropriated for fiscal years 1996, 1997, 1998, 1999, 
        2000, 2001, and 2002 such sums as are necessary for payment to 
        the Fund in a total amount not to exceed $1,000,000,000.
            ``(3) Computation of grant.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary of the Treasury shall pay to each eligible 
                State in a fiscal year an amount equal to the Federal 
                medical assistance percentage for such State for such 
                fiscal year (as defined in section 1905(b)) of so much 
                of the expenditures by the State in such year under the 
                State program funded under this part as exceed the 
                historic State expenditures for such State.
                    ``(B) Limitation.--The total amount paid to a State 
                under subparagraph (A) for any fiscal year shall not 
                exceed an amount equal to 20 percent of the annual 
                amount determined for such State under the State 
                program funded under this part (without regard to this 
                subsection) for such fiscal year.
                    ``(C) Method of computation, payment, and 
                reconciliation.--
                            ``(i) Method of computation.--The method of 
                        computing and paying such amounts shall be as 
                        follows:
                                    ``(I) The Secretary of Health and 
                                Human Services shall estimate 
the amount to be paid to the State for each quarter under the 
provisions of subparagraph (A), such estimate to be based on a report 
filed by the State containing its estimate of the total sum to be 
expended in such quarter and such other information as the Secretary 
may find necessary.
                                    ``(II) The Secretary of Health and 
                                Human Services shall then certify to 
                                the Secretary of the Treasury the 
                                amount so estimated by the Secretary of 
                                Health and Human Services.
                            ``(ii) Method of payment.--The Secretary of 
                        the Treasury shall thereupon, through the 
                        Fiscal Service of the Department of the 
                        Treasury and prior to audit or settlement by 
                        the General Accounting Office, pay to the 
                        State, at the time or times fixed by the 
                        Secretary of Health and Human Services, the 
                        amount so certified.
                            ``(iii) Method of reconciliation.--If at 
                        the end of each fiscal year, the Secretary of 
                        Health and Human Services finds that a State 
                        which received amounts from the Fund in such 
                        fiscal year did not meet the maintenance of 
                        effort requirement under paragraph (5)(B) for 
                        such fiscal year, the Secretary shall reduce 
                        the State family assistance grant for such 
                        State for the succeeding fiscal year by such 
                        amounts.
            ``(4) Use of grant.--
                    ``(A) In general.--An eligible State may use the 
                grant--
                            ``(i) in any manner that is reasonably 
                        calculated to accomplish the purpose of this 
                        part; or
                            ``(ii) in any manner that such State used 
                        amounts received under part A or F of this 
                        title, as such parts were in effect before 
                        October 1, 1995.
                    ``(B) Refund of unused portion.--Any amount of a 
                grant under this subsection not used during the fiscal 
                year shall be returned to the Fund.
            ``(5) Eligible state.--
                    ``(A) In general.--For purposes of this subsection, 
                a State is an eligible State with respect to a fiscal 
                year, if--
                            ``(i)(I) the average rate of total 
                        unemployment in such State (seasonally 
                        adjusted) for the period consisting of the most 
                        recent 3 months for which data for all States 
                        are published equals or exceeds 6.5 percent, 
                        and
                            ``(II) the average rate of total 
                        unemployment in such State (seasonally 
                        adjusted) for the 3-month period equals or 
                        exceeds 110 percent of such average rate for 
                        either (or both) of the corresponding 3-month 
                        periods ending in the 2 preceding calendar 
                        years; and
                            ``(ii) has met the maintenance of effort 
                        requirement under subparagraph (B) for the 
                        State program funded under this part for the 
                        fiscal year.
                    ``(B) Maintenance of effort.--The maintenance of 
                effort requirement for any State under this 
                subparagraph for any fiscal year is the expenditure of 
                an amount at least equal to 100 percent of the level of 
                historic State expenditures for such State (as 
                determined under subsection (a)(5)).
            ``(6) Annual reports.--The Secretary of the Treasury shall 
        annually report to the Congress on the status of the Fund.

``SEC. 404. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--A State to which a grant is 
made under section 403 for a fiscal year shall achieve the minimum 
participation rate specified in the following tables for the fiscal 
year with respect to--
            ``(1) all families receiving assistance under the State 
        program funded under this part:

                    
                                                            The minimum
                    
                                                          participation
                    ``If the fiscal year is:
                                              rate for all families is:
                          1996.......................             25   
                          1997.......................             30   
                          1998.......................             35   
                          1999.......................             40   
                          2000 or thereafter.........           50; and

            ``(2) with respect to 2-parent families receiving such 
        assistance:
                    
                                                            The minimum
                    
                                                          participation
                    ``If the fiscal year is:
                                                               rate is:
                          1996.......................             60   
                          1997 or 1998...............             75   
                          1999 or thereafter.........             90.  

    ``(b) Calculation of Participation Rates.--
            ``(1) For all families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(1), the participation rate for all 
                families of a State for a fiscal year is the average of 
                the participation rates for all families of the State 
                for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for all families of the 
                State for a month, expressed as a percentage, is--
                            ``(i) the sum of--
                                    ``(I) the number of all families 
                                receiving assistance under the State 
                                program funded under this part that 
                                include an adult who is engaged in work 
                                for the month;
                                    ``(II) the number of all families 
                                receiving assistance under the State 
                                program funded under this part that are 
                                subject in such month to a penalty 
                                described in paragraph (1)(A) or (2)(A) 
                                of subsection (d) but have not been 
                                subject to such penalty for more than 3 
                                months within the preceding 12-month 
                                period (whether or not consecutive); 
                                and
                                    ``(III) the number of all families 
                                that received assistance under the 
                                State program under this part during 
                                the previous 6-month period that have 
                                become ineligible to receive assistance 
                                during such period because of 
                                employment and which include an adult 
                                who is employed for the month; divided 
                                by
                            ``(ii) the total number of all families 
                        receiving assistance under the State program 
                        funded under this part during the month that 
                        include an adult receiving assistance.
            ``(2) 2-parent families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(2), the participation rate for 2-parent 
                families of a State for a fiscal year is the average of 
                the participation rates for 2-parent families of the 
                State for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for 2-parent families of 
                the State for a month, expressed as a percentage, is--
                            ``(i) the total number of 2-parent families 
                        described in paragraph (1)(B)(i); divided by
                            ``(ii) the total number of 2-parent 
                        families receiving assistance under the State 
                        program funded under this part during the month 
                        that include an adult.
            ``(3) Pro Rata Reduction of Participation Rate Due to 
        Caseload Reductions Not Required By Federal Law.--
                    ``(A) In general.--The Secretary shall prescribe 
                regulations for reducing the minimum participation rate 
                otherwise required by this section for a fiscal year by 
                the number of percentage points equal to the number of 
                percentage points (if any) by which--
                            ``(i) the number of families receiving 
                        assistance during the fiscal year under the 
                        State program funded under this part is less 
                        than
                            ``(ii) the number of families that received 
                        aid under the State plan approved under part A 
                        of this title (as in effect before October 1, 
                        1995) during the fiscal year immediately 
                        preceding such effective date.
                The minimum participation rate shall not be reduced to 
                the extent that the Secretary determines that the 
                reduction in the number of families receiving such 
                assistance is required by Federal law.
                    ``(B) Eligibility changes not counted.--The 
                regulations described in subparagraph (A) shall not 
                take into account families that are diverted from a 
                State program funded under this part as a result of 
                differences in eligibility criteria under a State 
                program funded under this part and eligibility criteria 
                under such State's plan under the aid to families with 
                dependent children program, as such plan was in effect 
                on the day before the date of the enactment of the Work 
                Opportunity Act of 1995.
            ``(4) State option to include individuals receiving 
        assistance under a tribal family assistance plan.--For purposes 
        of paragraphs (1)(B) and (2)(B), a State may, at its option, 
        include families receiving assistance under a tribal family 
        assistance plan approved under section 414. For purposes of the 
        previous sentence, an individual who receives assistance under 
        a tribal family assistance plan approved under section 414 
        shall be treated as being engaged in work if the individual is 
        participating in work under standards that are comparable to 
        State standards for being engaged in work.
            ``(5) State option for participation requirement 
        exemptions.--For any fiscal year, a State may, at its option, 
        not require an individual who is the parent or caretaker 
        relative of a minor child who is less than 12 months of age to 
        engage in work and may exclude such an individual from the 
        determination of the minimum participation rate specified for 
        such fiscal year in subsection (a).
    ``(c) Engaged in Work.--
            ``(1) All families.--For purposes of subsection 
        (b)(1)(B)(i)(I), an adult is engaged in work for a month in a 
        fiscal year if the adult is participating in work 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 a work activity:

                         
                                                            The minimum
                         ``If the month is
                                                      average number of
                           in fiscal year:
                                                     hours per week is:
                               1996..................             20   
                               1997..................             20   
                               1998..................             20   
                               1999..................             25   
                               2000..................             30   
                               2001..................             30   
                               2002..................             35   
                               2003 or thereafter....             35.  

            ``(2) 2-parent families.--For purposes of subsection 
        (b)(2)(A), an adult is engaged in work for a month in a fiscal 
year if the adult is participating in work for at least 35 hours per 
week during the month, not fewer than 30 hours per week of which are 
attributable to work activities described in paragraph (3).
            ``(3) Definition of work activities.--For purposes of this 
        subsection, the term `work activities' means--
                    ``(A) unsubsidized employment;
                    ``(B) subsidized employment;
                    ``(C) on-the-job training;
                    ``(D) community service programs;
                    ``(E) job search (only for the first 4 weeks in 
                which an individual is required to participate in work 
                activities under this section); and
                    ``(F) vocational educational training (not to 
                exceed 12 months with respect to any individual).
            ``(4) Limitation on vocational education activities counted 
        as work.--For purposes of determining monthly participation 
        rates under paragraphs (1)(B)(i)(I) and (2)(B)(i) of subsection 
        (b), not more than 25 percent of adults in all families and in 
        2-parent families determined to be engaged in work in the State 
        for a month may meet the work activity requirement through 
        participation in vocational educational training.
    ``(d) Penalties Against Individuals.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        an adult in a family receiving assistance under the State 
        program funded under this part refuses to engage in work 
        required under subsection (c)(1) or (c)(2), a State to which a 
        grant is made under section 403 shall--
                    ``(A) reduce the amount of assistance otherwise 
                payable to the family pro rata (or more, at the option 
                of the State) with respect to any period during a month 
                in which the adult so refuses; or
                    ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State 
        may establish.
            ``(2) Exception.--Notwithstanding paragraph (1), a State 
        may not reduce or terminate assistance under the State program 
        based on a refusal of an adult to work if such adult is a 
        single custodial parent caring for a child age 5 or under and 
        has a demonstrated inability (as determined by the State) to 
        obtain needed child care, for one or more of the following 
        reasons:
                    ``(A) Unavailability of appropriate child care 
                within a reasonable distance of the individual's home 
                or work site.
                    ``(B) Unavailability or unsuitability of informal 
                child care by a relative or under other arrangements.
                    ``(C) Unavailability of appropriate and affordable 
                formal child care arrangements.
    ``(e) Nondisplacement in Work Activities.--
            ``(1) In general.--Subject to paragraph (2), an adult in a 
        family receiving assistance under this part may fill a vacant 
        employment position in order to engage in a work activity 
        described in subsection (c)(3).
            ``(2) No filling of certain vacancies.--No adult in a work 
        activity described in subsection (c)(3) shall be employed or 
        assigned--
                    ``(A) when any other individual is on layoff from 
                the same or any substantially equivalent job; or
                    ``(B) when the employer has terminated the 
                employment of any regular employee or otherwise caused 
                an involuntary reduction of its workforce in order to 
                fill the vacancy so created with an adult described in 
                paragraph (1).
            ``(3) No preemption.--Nothing in this subsection shall 
        preempt or supersede any provision of State or local law that 
        provides greater protection for employees from displacement.
    ``(f) Sense of the Congress.--It is the sense of the Congress that 
in complying with this section, each State that operates a program 
funded under this part is encouraged to assign the highest priority to 
requiring adults in 2-parent families and adults in single-parent 
families that include older preschool or school-age children to be 
engaged in work activities.
    ``(g) Delivery Through Statewide System.--
            ``(1) In general.--Each work program carried out by the 
        State to provide work activities in order to comply with this 
        section shall be delivered through the statewide workforce 
        development system established in section 711 of the Work 
        Opportunity Act of 1995 unless a required work activity is not 
        available locally through the statewide workforce development 
        system.
            ``(2) Effective date.--The provisions of paragraph (1) 
        shall take effect--
                    ``(A) in a State described in section 815(b)(1) of 
                the Work Opportunity Act of 1995; and
                    ``(B) in any other State, on July 1, 1998.
    ``(h) Encouragement To Provide Child Care Services.--An individual 
participating in a State community service program may be treated as 
being engaged in work under subsection (c) if such individual provides 
child care services to other individuals participating in the community 
service program in the manner, and for the period of time each week, 
determined appropriate by the State.

``SEC. 405. REQUIREMENTS AND LIMITATIONS.

    ``(a) State Required To Enter Into a Personal Responsibility 
Contract With Each Family Receiving Assistance.--
            ``(1) In general.--Each State to which a grant is made 
        under section 403 shall require each family receiving 
        assistance under the State program funded under this part to 
        enter into--
                    ``(A) a personal responsibility contract (as 
                developed by the State) with the State; or
                    ``(B) a limited benefit plan.
            ``(2) Personal responsibility contract.--For purposes of 
        this subsection, the term `personal responsibility contract' 
        means a binding contract between the State and each family 
        receiving assistance under the State program funded under this 
        part that--
                    ``(A) outlines the steps each family and the State 
                will take to get the family off of welfare and to 
                become self-sufficient;
                    ``(B) specifies a negotiated time-limited period of 
                eligibility for receipt of assistance that is 
                consistent with unique family circumstances and is 
                based on a reasonable plan to facilitate the transition 
                of the family to self-sufficiency;
                    ``(C) provides that the family will automatically 
                enter into a limited benefit plan if the family is out 
                of compliance with the personal responsibility 
                contract; and
                    ``(D) provides that the contract shall be invalid 
                if the State agency fails to comply with the contract.
            ``(3) Limited benefit plan.--For purposes of this 
        subsection, the term `limited benefit plan' means a plan which 
        provides for a reduced level of assistance and later 
        termination of assistance to a family that has entered into the 
        plan in accordance with a schedule to be determined by the 
        State.
            ``(4) Assessment.--The State agency shall provide, through 
        a case manager, an initial and thorough assessment of the 
        skills, prior work experience, and employability of each parent 
        for use in developing and negotiating a personal responsibility 
        contract.
            ``(5) Dispute resolution.--The State agency described in 
        section 402(a)(6) shall establish a dispute resolution 
        procedure for disputes related to participation in the personal 
        responsibility contract that provides the opportunity for a 
        hearing.
    ``(b) No Assistance for More Than 5 Years.--
            ``(1) In general.--Except as provided under paragraphs (2) 
        and (3), a State to which a grant is made under section 403 may 
        not use any part of the grant to provide assistance to a family 
        that includes an adult who has received assistance under the 
        program operated under this part for the lesser of--
                    ``(A) the period of time established at the option 
                of the State; or
                    ``(B) 60 months (whether or not consecutive) after 
                September 30, 1995.
            ``(2) Minor child exception.--If an individual received 
        assistance under the State program operated under this part as 
        a minor child in a needy family, any period during which such 
        individual's family received assistance shall not be counted 
        for purposes of applying the limitation described in paragraph 
(1) to an application for assistance under such program by such 
individual as the head of a household of a needy family with minor 
children.
            ``(3) Hardship exception.--
                    ``(A) In general.--The State may exempt a family 
                from the application of paragraph (1) by reason of 
                hardship.
                    ``(B) Limitation.--The number of families with 
                respect to which an exemption made by a State under 
                subparagraph (A) is in effect for a fiscal year shall 
                not exceed 20 percent of the average monthly number of 
                families to which the State is providing assistance 
                under the program operated under this part.
    ``(c) Denial of Assistance for 10 Years to a Person Found To Have 
Fraudulently Misrepresented Residence In Order To Obtain Assistance in 
2 or More States.--An individual shall not be considered an eligible 
individual for the purposes of this part during the 10-year period that 
begins on the date the individual is convicted in Federal or State 
court of having made a fraudulent statement or representation with 
respect to the place of residence of the individual in order to receive 
assistance simultaneously from 2 or more States under programs that are 
funded under this title, title XIX, or the Food Stamp Act of 1977, or 
benefits in 2 or more States under the supplemental security income 
program under title XVI.
    ``(d) Denial of Assistance for Fugitive Felons and Probation and 
Parole Violators.--
            ``(1) In general.--An individual shall not be considered an 
        eligible individual for the purposes of this part if such 
        individual is--
                    ``(A) fleeing to avoid prosecution, or custody or 
                confinement after conviction, under the laws of the 
                place from which the individual flees, for a crime, or 
                an attempt to commit a crime, which is a felony under 
                the laws of the place from which the individual flees, 
or which, in the case of the State of New Jersey, is a high misdemeanor 
under the laws of such State; or
                    ``(B) violating a condition of probation or parole 
                imposed under Federal or State law.
            ``(2) Exchange of information with law enforcement 
        agencies.--Notwithstanding any other provision of law, a State 
        shall furnish any Federal, State, or local law enforcement 
        officer, upon the request of the officer, with the current 
        address, Social Security number, and photograph (if applicable) 
        of any recipient of assistance under this part, if the officer 
        furnishes the agency with the name of the recipient and 
        notifies the agency that--
                    ``(A) such recipient--
                            ``(i) is described in subparagraph (A) or 
                        (B) of paragraph (1); or
                            ``(ii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties; and
                    ``(B) the location or apprehension of the recipient 
                is within such officer's official duties.
    ``(e) State Option to Require Assignment of Support.--At the option 
of the State, a State to which a grant is made under section 403 may 
provide that an individual applying for or receiving assistance under 
the State program funded under this part shall be required to assign to 
the State any rights to support from any other person the individual 
may have in such individual's own behalf or in behalf of any other 
family member for whom the individual is applying for or receiving 
assistance.
    ``(f) Denial of Assistance for Absent Child.--Each State to which a 
grant is made under section 403--
            ``(1) may not use any part of the grant to provide 
        assistance to a family with respect to any minor child who has 
        been, or is expected by the caretaker relative in the family to 
        be, absent from the home for a period of 45 consecutive days 
        or, at the option of the State, such period of not less than 30 
        and not more than 90 consecutive days as the State may provide 
        for in the State plan;
            ``(2) at the option of the State, may establish such good 
        cause exceptions to paragraph (1) as the State considers 
        appropriate if such exceptions are provided for in the State 
        plan; and
            ``(3) shall provide that a caretaker relative shall not be 
        considered an eligible individual for purposes of this part if 
        the caretaker relative fails to notify the State agency of an 
        absence of a minor child from the home for the period specified 
        in or provided for under paragraph (1), by the end of the 5-day 
        period that begins on the date that it becomes clear to the 
        caretaker relative that the minor child will be absent for the 
        period so specified or provided for in paragraph (1).

``SEC. 406. PROMOTING RESPONSIBLE PARENTING.

    ``(a) Findings.--The Congress makes the following findings:
            ``(1) Marriage is the foundation of a successful society.
            ``(2) Marriage is an essential institution of a successful 
        society which promotes the interests of children.
            ``(3) Promotion of responsible fatherhood and motherhood is 
        integral to successful child rearing and the wellbeing of 
        children.
            ``(4) In 1992, only 54 percent of single-parent families 
        with children had a child support order established and, of 
        that 54 percent, only about one half received the full amount 
        due. Of the cases enforced through the public child support 
        enforcement system, only 18 percent of the caseload has a 
        collection.
            ``(5) The number of individuals receiving aid to families 
        with dependent children (hereafter in this subsection referred 
        to as `AFDC') has more than tripled since 1965. More than two-
        thirds of these recipients are children. Eighty-nine percent of 
        children receiving AFDC benefits now live in homes in which no 
        father is present.
                    ``(A)(i) The average monthly number of children 
                receiving AFDC benefits--
                            ``(I) was 3,300,000 in 1965;
                            ``(II) was 6,200,000 in 1970;
                            ``(III) was 7,400,000 in 1980; and
                            ``(IV) was 9,300,000 in 1992.
                    ``(ii) While the number of children receiving AFDC 
                benefits increased nearly threefold between 1965 and 
                1992, the total number of children in the United States 
                aged 0 to 18 has declined by 5.5 percent.
                    ``(B) The Department of Health and Human Services 
                has estimated that 12,000,000 children will receive 
                AFDC benefits within 10 years.
                    ``(C) The increase in the number of children 
                receiving public assistance is closely related to the 
                increase in births to unmarried women. Between 1970 and 
                1991, the percentage of live births to unmarried women 
                increased nearly threefold, from 10.7 percent to 29.5 
                percent.
            ``(6) The increase of out-of-wedlock pregnancies and births 
        is well documented as follows:
                    ``(A) It is estimated that the rate of nonmarital 
                teen pregnancy rose 23 percent from 54 pregnancies per 
                1,000 unmarried teenagers in 1976 to 66.7 pregnancies 
                in 1991. The overall rate of nonmarital pregnancy rose 
                14 percent from 90.8 pregnancies per 1,000 unmarried 
                women in 1980 to 103 in both 1991 and 1992. In 
                contrast, the overall pregnancy rate for married 
                couples decreased 7.3 percent between 1980 and 1991, 
                from 126.9 pregnancies per 1,000 married women in 1980 
                to 117.6 pregnancies in 1991.
                    ``(B) The total of all out-of-wedlock births 
                between 1970 and 1991 has risen from 10.7 percent to 
                29.5 percent and if the current trend continues, 50 
                percent of all births by the year 2015 will be out-of-
                wedlock.
            ``(7) The negative consequences of an out-of-wedlock birth 
        on the mother, the child, the family, and society are well 
        documented as follows:
                    ``(A) Young women 17 and under who give birth 
                outside of marriage are more likely to go on public 
                assistance and to spend more years on welfare once 
                enrolled. These combined effects of `younger and 
                longer' increase total AFDC costs per household by 25 
                percent to 30 percent for 17-year olds.
                    ``(B) Children born out-of-wedlock have a 
                substantially higher risk of being born at a very low 
                or moderately low birth weight.
                    ``(C) Children born out-of-wedlock are more likely 
                to experience low verbal cognitive attainment, as well 
                as more child abuse, and neglect.
                    ``(D) Children born out-of-wedlock were more likely 
                to have lower cognitive scores, lower educational 
                aspirations, and a greater likelihood of becoming 
                teenage parents themselves.
                    ``(E) Being born out-of-wedlock significantly 
                reduces the chances of the child growing up to have an 
                intact marriage.
                    ``(F) Children born out-of-wedlock are 3 more times 
                likely to be on welfare when they grow up.
            ``(8) Currently 35 percent of children in single-parent 
        homes were born out-of-wedlock, nearly the same percentage as 
        that of children in single-parent homes whose parents are 
        divorced (37 percent). While many parents find themselves, 
        through divorce or tragic circumstances beyond their control, 
        facing the difficult task of raising children alone, 
        nevertheless, the negative consequences of raising children in 
        single-parent homes are well documented as follows:
                    ``(A) Only 9 percent of married-couple families 
                with children under 18 years of age have income below 
                the national poverty level. In contrast, 46 percent of 
                female-headed households with children under 18 years 
                of age are below the national poverty level.
                    ``(B) Among single-parent families, nearly \1/2\ of 
                the mothers who never married received AFDC while only 
                \1/5\ of divorced mothers received AFDC.
                    ``(C) Children born into families receiving welfare 
                assistance are 3 times more likely to be on welfare 
                when they reach adulthood than children not born into 
                families receiving welfare.
                    ``(D) Mothers under 20 years of age are at the 
                greatest risk of bearing low birth-weight babies.
                    ``(E) The younger the single parent mother, the 
                less likely she is to finish high school.
                    ``(F) Young women who have children before 
                finishing high school are more likely to receive 
                welfare assistance for a longer period of time.
                    ``(G) Between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120,000,000,000.
                    ``(H) The absence of a father in the life of a 
                child has a negative effect on school performance and 
                peer adjustment.
                    ``(I) Children of teenage single parents have lower 
                cognitive scores, lower educational aspirations, and a 
                greater likelihood of becoming teenage parents 
                themselves.
                    ``(J) Children of single-parent homes are 3 times 
                more likely to fail and repeat a year in grade school 
                than are children from intact two-parent families.
                    ``(K) Children from single-parent homes are almost 
                4 times more likely to be expelled or suspended from 
                school.
                    ``(L) Neighborhoods with larger percentages of 
                youth aged 12 through 20 and areas with higher 
                percentages of single-parent households have higher 
                rates of violent crime.
                    ``(M) Of those youth held for criminal offenses 
                within the State juvenile justice system, only 29.8 
                percent lived primarily in a home with both parents. In 
                contrast to these incarcerated youth, 73.9 percent of 
                the 62,800,000 children in the Nation's resident 
                population were living with both parents.
            ``(9) Therefore, in light of this demonstration of the 
        crisis in our Nation, it is the sense of the Congress that 
        prevention of out-of-wedlock pregnancy and reduction in out-of-
        wedlock birth are very important Government interests and the 
        policy contained in provisions of this title is intended to 
        address the crisis.
    ``(b) State Option To Deny Assistance For Out-of-Wedlock Births to 
Minors.--At the option of the State, a State to which a grant is made 
under section 403 may provide that the grant shall not be used to 
provide assistance 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.
    ``(c) State Option To Deny Assistance for Children Born to Families 
Receiving Assistance.--At the option of the State, a State to which a 
grant is made under section 403 may provide that the grant shall not be 
used to provide assistance for a minor child who is born to--
            ``(1) a recipient of assistance under the program funded 
        under this part; or
            ``(2) an individual who received such benefits at any time 
        during the 10-month period ending with the birth of the child.
    ``(d) Requirement That Teenage Parents Live in Adult-Supervised 
Settings.--
            ``(1) In general.--
                    ``(A) Requirement.--Except as provided in paragraph 
                (2), if a State provides assistance under the State 
                program funded under this part to an individual 
                described in subparagraph (B), such individual may only 
                receive assistance under the program if such individual 
                and the child of the individual reside in a place of 
                residence maintained by a parent, legal guardian, or 
                other adult relative of such individual as such 
                parent's, guardian's, or adult relative's own home.
                    ``(B) Individual described.-- For purposes of 
                subparagraph (A), an individual described in this 
                subparagraph is an individual who is--
                            ``(i) under the age of 18; and
                            ``(ii) not married and has a minor child in 
                        his or her care.
            ``(2) Exception.--
                    ``(A) Provision of, or assistance in locating, 
                adult-supervised living arrangement.--In the case of an 
                individual who is described in subparagraph (B), the 
                State agency shall provide, or assist such individual 
                in locating, a second chance home, maternity home, or 
                other appropriate adult-supervised supportive living 
                arrangement, taking into consideration the needs and 
                concerns of the such individual, unless the State 
                agency determines that the individual's current living 
                arrangement is appropriate, and thereafter shall 
                require that such parent and the child of such parent 
                reside in such living arrangement as a condition of the 
                continued receipt of assistance under the plan (or in 
                an alternative appropriate arrangement, should 
                circumstances change and the current arrangement cease 
                to be appropriate).
                    ``(B) Individual described.--For purposes of 
                subparagraph (A), an individual is described in this 
                subparagraph if the individual is described in 
                paragraph (1)(B) and--
                            ``(ii) such individual has no parent, legal 
                        guardian or other appropriate adult relative as 
                        described in (iii) of his or her own who is 
                        living or whose whereabouts are known;
                            ``(iii) no living parent, legal guardian, 
                        or other appropriate adult relative who would 
                        otherwise meet applicable State criteria to act 
                        as such individual's legal guardian, of such 
                        individual allows the individual to live in the 
                        home of such parent, guardian, or relative;
                            ``(iv) the State agency determines that--
                                    ``(I) the individual or the 
                                individual's custodial minor child is 
                                being or has been subjected to serious 
                                physical or emotional harm, sexual 
                                abuse, or exploitation in the residence 
                                of such individual's own parent or 
                                legal guardian; or
                                    ``(II) substantial evidence exists 
                                of an act or failure to act that 
                                presents an imminent or serious harm if 
                                such individual and such individual's 
                                minor child lived in the same residence 
                                with such individual's own parent or 
                                legal guardian; or
                            ``(v) the State agency otherwise determines 
                        that it is in the best interest of the minor 
                        child to waive the requirement of paragraph (1) 
                        with respect to such individual or minor child.
                    ``(C) Second-chance home.--For purposes of this 
                paragraph, the term `second-chance home' means an 
                entity that provides individuals described in 
                subparagraph (B) with a supportive and supervised 
                living arrangement in which such individuals are 
                required to learn parenting skills, including child 
                development, family budgeting, health and nutrition, 
                and other skills to promote their long-term economic 
                independence and the well-being of their children.
            ``(3) Assistance to states in providing or locating adult-
        supervised supportive living arrangements for unmarried teenage 
        parents.--
                    ``(A) In general.--For each of fiscal years 1996 
                through 2002, each State that provides assistance under 
                the State program to individuals described in paragraph 
                (1)(B) shall be entitled to receive a grant in an 
                amount determined under subparagraph (B) for the 
                purpose of providing or locating adult-supervised 
                supportive living arrangements for individuals 
                described in paragraph (1)(B) in accordance with this 
                subsection.
                    ``(B) Amount determined.--
                            ``(i) In general.--The amount determined 
                        under this subparagraph is an amount that bears 
                        the same ratio to the amount specified under 
                        clause (ii) as the amount of the State family 
                        assistance grant for the State for such fiscal 
                        year (described in section 403(a)(2)) bears to 
                        the amount appropriated for such fiscal year in 
                        accordance with section 403(a)(4)(A).
                            ``(ii) Amount specified.--The amount 
                        specified in this subparagraph is--
                                    ``(I) for fiscal year 1996, 
                                $25,000,000;
                                    ``(II) for fiscal year 1997, 
                                $25,000,000; and
                                    ``(III) for each of fiscal years 
                                1998, 1999, 2000, 2001, and 2002, 
                                $20,000,000.
                    ``(C) Assistance to states in providing or locating 
                adult-supervised supportive living arrangements for 
                unmarried teenage parents.--There are authorized to be 
                appropriated and there are appropriated for fiscal 
                years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 such 
                sums specified in subparagraph (B)(ii) for the purpose 
                of paying grants to States in accordance with the 
                provisions of this paragraph.
    ``(e) Requirement That Teenage Parents Attend High School or Other 
Equivalent Training Program.--If a State provides assistance under the 
State program funded under this part to an individual described in 
subsection (d)(1)(B) who has not successfully completed a high-school 
education (or its equivalent) and whose minor child is at least 12 
weeks of age, the State shall not provide such individual with 
assistance under the program (or, at the option of the State, shall 
provide a reduced level of such assistance) if the individual does not 
participate in--
            ``(1) educational activities directed toward the attainment 
        of a high school diploma or its equivalent; or
            ``(2) an alternative educational or training program that 
        has been approved by the State.
    ``(f) Grant Increased To Reward States That Reduce Out-of-Wedlock 
Births.--
            ``(1) In general.--The amount of the grant payable to a 
        State under section 403(a)(1)(A) for fiscal years 1998, 1999, 
        and 2000 shall be increased by--
                    ``(A) an amount equal the product of $25 multiplied 
                by the number of children in the State in families with 
                incomes below the poverty line, according to the most 
                recently available census data, if--
                            ``(i) the illegitimacy ratio of the State 
                        for the most recent fiscal year for which such 
                        information is available is at least 1 
                        percentage point lower than the illegitimacy 
                        ratio of the State for fiscal year 1995 (or, if 
                        such information is not available, the first 
                        available year after 1995 for which such data 
                        is available); and
                            ``(ii) the rate of induced pregnancy 
                        terminations for the same most recent fiscal 
                        year in the State is not higher than the rate 
                        of induced pregnancy terminations in the State 
                        for fiscal year 1995 (or, the same first 
                        available year); or
                    ``(B) an amount equal the product of $50 multiplied 
                by the number of children in the State in families with 
                incomes below the poverty line, according to the most 
                recently available census data, if--
                            ``(i) the illegitimacy ratio of the State 
                        for the most recent fiscal year for which 
                        information is available is at least 2 
                        percentage points lower than the illegitimacy 
                        ratio of the State for fiscal year 1995 (or, if 
                        such information is not available, the first 
                        available year after 1995 for which such data 
                        is available); and
                            ``(ii) the rate of induced pregnancy 
                        terminations in the State for the same most 
                        recent fiscal year is not higher than the rate 
                        of induced pregnancy terminations in the State 
                        for fiscal year 1995 (or, the same first 
                        available fiscal year).
            ``(2) Determination of the secretary.--The Secretary shall 
        not increase the grant amount under paragraph (1) if the 
        Secretary determines that the relevant difference between the 
        illegitimacy ratio of a State for an applicable fiscal year and 
        the illegitimacy ratio of such State for fiscal year 1995 or, 
        where appropriate, the first available year after 1995 for 
        which such data is available, is the result of a change in 
        State methods of reporting data used to calculate the 
        illegitimacy ratio or if the Secretary determines that the 
        relevant non-increase in the rate of induced pregnancy 
        terminations for an applicable fiscal year as compared to 
        fiscal year 1995 or, the appropriate fiscal year, is the result 
        of a change in State methods of reporting data used to 
        calculate the rate of induced pregnancy terminations.
            ``(3) Illegitimacy ratio.--For purposes of this subsection, 
        the term `illegitimacy ratio' means, with respect to a State 
        and a fiscal year--
                    ``(A) the number of out-of-wedlock births that 
                occurred in the State during the most recent fiscal 
                year for which such information is available; divided 
                by
                    ``(B) the number of births that occurred in the 
                State during the most recent fiscal year for which such 
                information is available.
            ``(4) Poverty line.--For purposes of this subsection, the 
        term `poverty line' has the meaning given such term in section 
        403(a)(3)(D)(iii).
            ``(5) Availability of amounts.--There are authorized to be 
        appropriated and there are appropriated such sums as may be 
        necessary for fiscal years 1998, 1999, and 2000 for the purpose 
        of increasing the amount of the grant payable to a State under 
        section 403(a)(1) in accordance with this subsection.
    ``(g) State Option To Deny Assistance in Certain Situations.--
Nothing in this subsection shall be construed to restrict the authority 
of a State to exercise its option to limit assistance under this part 
to individuals if such limitation is not inconsistent with the 
provisions of this part.

``SEC. 407. STATE PENALTIES.

    ``(a) In General.--Subject to the provisions of subsection (b), the 
Secretary shall deduct from the grant otherwise payable under section 
403 the following penalties:
            ``(1) For use of grant in violation of this part.--If an 
        audit conducted under section 408 finds that an amount paid to 
        a State under section 403 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 such 
        section for the immediately succeeding fiscal year quarter by 
        the amount so used. If the State does not prove to the 
        satisfaction of the Secretary that such unlawful expenditure 
        was not made by the State in intentional violation of the 
        requirements of this part, then the Secretary shall impose an 
        additional penalty of 5 percent of such grant (determined 
        without regard to this section).
            ``(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 
                409 for the fiscal year, the Secretary shall reduce by 
                5 percent the amount of the grant that would (in the 
                absence of this section) be payable to the State under 
                section 403 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.
            ``(3) For failure to satisfy minimum participation rates.--
                    ``(A) In general.--If the Secretary determines that 
                a State has failed to satisfy the minimum participation 
                rates specified in section 404(a) for a fiscal year, 
                the Secretary shall reduce the amount of the grant that 
                would (in the absence of this section) be payable to 
                the State under section 403 for the immediately 
                succeeding fiscal year by--
                            ``(i) in the first year in which the State 
                        fails to satisfy such rates, 5 percent; and
                            ``(ii) in subsequent years in which the 
                        State fails to satisfy such rates, the percent 
                        reduction determined under this subparagraph 
                        (if any) in the preceding year, increased by 5 
                        percent.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) on the basis of the degree of noncompliance.
            ``(4) 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 not more than 5 percent the amount of 
        the grant that would (in the absence of this section) be 
        payable to the State under section 403 for the immediately 
        succeeding fiscal year.
            ``(5) For failure to comply with paternity establishment 
        and child support enforcement requirements under part d.--
        Notwithstanding any other provision of this Act, if the 
        Secretary determines that the State agency that administers a 
        program funded under this part does not enforce the penalties 
        requested by the agency administering part D against recipients 
        of assistance under the State program who fail to cooperate in 
        establishing paternity in accordance with such part, the 
        Secretary shall reduce by not more than 5 percent the amount of 
        the grant that would (in the absence of this section) be 
        payable to the State under section 403 for the immediately 
        succeeding fiscal year.
            ``(6) For failure to timely repay a federal loan fund for 
        state welfare programs.--If the Secretary determines that a 
        State has failed to repay any amount borrowed from the Federal 
        Loan Fund for State Welfare Programs established under section 
        403(d) within the period of maturity applicable to such loan, 
        plus any interest owed on such loan, then the Secretary shall 
        reduce the amount of the grant otherwise payable to the State 
        under section 403 for the immediately succeeding fiscal year 
        quarter by the outstanding loan amount, plus the interest owed 
        on such outstanding amount. The Secretary may not forgive any 
        outstanding loan amount nor interest owed thereon.
    ``(b) Requirements.--
            ``(1) Limitation on amount of penalty.--
                    ``(A) In general.--In imposing the penalties 
                described in subsection (a), the Secretary shall not 
                reduce any quarterly payment to a State by more than 25 
                percent.
                    ``(B) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (A) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                all penalties imposed on a State under subsection (a) 
                for a prior fiscal year, the Secretary shall apply any 
                remaining amount of such penalties to the grant 
                otherwise payable to the State under section 403 for 
                the immediately succeeding fiscal year.
            ``(2) State funds to replace reductions in grant.--A State 
        which has a penalty imposed against it under subsection (a) 
        shall expend additional State funds in an amount equal to the 
        amount of the penalty for the purpose of providing assistance 
        under the State program under this part.
            ``(3) Reasonable cause for noncompliance.--The Secretary 
        may not impose a penalty on a State under subsection (a) if the 
        Secretary determines that the State has reasonable cause for 
        failing to comply with a requirement for which a penalty is 
        imposed under such subsection.
    ``(c) Certification of Amount of Penalties.--If the Secretary is 
required to reduce the amount of any grant under this section, the 
Secretary shall certify the amount of such reduction to the Secretary 
of the Treasury and the Secretary of the Treasury shall reduce the 
amount paid to the State under section 403 by such amount.
    ``(d) Effective Dates.--
            ``(1) In general.--The penalties described in paragraphs 
        (2) through (6) of subsection (a) shall apply--
                    ``(A) with respect to periods beginning 6 months 
                after the Secretary issues final rules with respect to 
                such penalties; or
                    ``(B) with respect to fiscal years beginning on or 
                after October 1, 1996;
        whichever is later.
            ``(2) Misuse of funds.--The penalties described in 
        subsection (a)(1) shall apply with respect to fiscal years 
        beginning on or after October 1, 1995.

``SEC. 408. AUDITS.

    ``(a) In General.--Each State shall, not less than annually, audit 
the State expenditures from amounts received under this part. Such 
audit shall--
            ``(1) determine the extent to which such expenditures were 
        or were not expended in accordance with this part; and
            ``(2) be conducted by an approved entity (as defined in 
        subsection (b)) in accordance with generally accepted auditing 
        principles.
    ``(b) Approved Entity.--For purposes of subsection (a), the term 
`approved entity' means an entity that--
            ``(1) is approved by the Secretary of the Treasury;
            ``(2) is approved by the chief executive officer of the 
        State; and
            ``(3) is independent of any agency administering activities 
        funded under this part.
    ``(c) Audit Report.--Not later than 30 days following the 
completion of an audit under this subsection, a State shall submit a 
copy of the audit to the State legislature, the Secretary of the 
Treasury, and the Secretary of Health and Human Services.
    ``(d) Additional Accounting Requirements.--The provisions of 
chapter 75 of title 31, United States Code, shall apply to the audit 
requirements of this section.

``SEC. 409. DATA COLLECTION AND REPORTING.

    ``(a) In General.--The Secretary, in consultation with State and 
local government officials and other interested persons, shall develop 
a quality assurance system of data collection and reporting that 
promotes accountability and ensures the improvement and integrity of 
programs funded under this part.
    ``(b) State Submissions.--
            ``(1) In general.--Not later than the 15th day of the first 
        month of each calendar quarter, each State to which a grant is 
        made under section 403(f) shall submit to the Secretary the 
        data described in paragraphs (2) and (3) with respect to 
        families described in paragraph (4).
            ``(2) Disaggregated data described.--The data described in 
        this paragraph with respect to families described in paragraph 
        (4) is a sample of monthly disaggregated case record data 
        containing the following:
                    ``(A) The age of the adults and children (including 
                pregnant women) in each family.
                    ``(B) The marital and familial status of each 
                member of the family (including whether the family is a 
                2-parent family and whether a child is living with an 
                adult relative other than a parent).
                    ``(C) The gender, educational level, work 
                experience, and race of the head of each family.
                    ``(D) The health status of each member of the 
                family (including whether any member of the family is 
                seriously ill, disabled, or incapacitated and is being 
                cared for by another member of the family).
                    ``(E) The type and amount of any benefit or 
                assistance received by the family, including--
                            ``(i) the amount of and reason for any 
                        reduction in assistance, and
                            ``(ii) if assistance is terminated, whether 
                        termination is due to employment, sanction, or 
                        time limit.
                    ``(F) Any benefit or assistance received by a 
                member of the family with respect to housing, food 
                stamps, job training, or the Head Start program.
                    ``(G) The number of months since the family filed 
                the most recent application for assistance under the 
                program and if assistance was denied, the reason for 
                the denial.
                    ``(H) The number of times a family has applied for 
                and received assistance under the State program and the 
                number of months assistance has been received each time 
                assistance has been provided to the family.
                    ``(I) The employment status of the adults in the 
                family (including the number of hours worked and the 
                amount earned).
                    ``(J) The date on which an adult in the family 
                began to engage in work, the number of hours the adult 
                engaged in work, the work activity in which the adult 
                participated, and the amount of child care assistance 
                provided to the adult (if any).
                    ``(K) The number of individuals in each family 
                receiving assistance and the number of individuals in 
                each family not receiving assistance, and the 
                relationship of each individual to the youngest child 
                in the family.
                    ``(L) The citizenship status of each member of the 
                family.
                    ``(M) The housing arrangement of each member of the 
                family.
                    ``(N) The amount of unearned income, child support, 
                assets, and other financial factors considered in 
                determining eligibility for assistance under the State 
                program.
                    ``(O) The location in the State of each family 
                receiving assistance.
                    ``(P) Any other data that the Secretary determines 
                is necessary to ensure efficient and effective program 
                administration.
            ``(3) Aggregated monthly data.--The data described in this 
        paragraph is the following aggregated monthly data with respect 
        to the families described in paragraph (4):
                    ``(A) The number of families.
                    ``(B) The number of adults in each family.
                    ``(C) The number of children in each family.
                    ``(D) The number of families for which assistance 
                has been terminated because of employment, sanctions, 
                or time limits.
            ``(4) Families described.--The families described in this 
        paragraph are--
                    ``(A) families receiving assistance under a State 
                program funded under this part for each month in the 
                calendar quarter preceding the calendar quarter in 
                which the data is submitted;
                    ``(B) families applying for such assistance during 
                such preceding calendar quarter; and
                    ``(C) families that became ineligible to receive 
                such assistance during such preceding calendar quarter.
            ``(5) Appropriate subsets of data collected.--The Secretary 
        shall determine appropriate subsets of the data described in 
        paragraphs (2) and (3) that a State is required to submit under 
        paragraph (1) with respect to families described in 
        subparagraphs (B) and (C) of paragraph (4).
            ``(6) Sampling and other methods.--The Secretary shall 
        provide the States with such case sampling plans and data 
        collection procedures as the Secretary deems necessary to 
        produce statistically valid estimates of each State's program 
        performance. The Secretary is authorized to develop and 
        implement procedures for verifying the quality of data 
        submitted by the States.
    ``(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--
            ``(1) the total amount and percentage of the Federal funds 
        paid to the State under this part for the fiscal year that are 
        used to cover administrative costs or overhead; and
            ``(2) the total amount of State funds that are used to 
        cover such 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 the program under this part and the purposes 
for which such amount was spent.
    ``(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 during the fiscal year.
    ``(f) Report on Child Support Collected.--The report required by 
subsection (a) for a fiscal year shall include the total amount of 
child support collected by the State agency administering the State 
program under part D on behalf of a family receiving assistance under 
this part.
    ``(g) Report on Child Care.--The report required by subsection (a) 
for a fiscal year shall include the total amount expended by the State 
for child care under the program under this part, along with a 
description of the types of child care provided, including child care 
provided in the case of a family that--
            ``(1) has ceased to receive assistance under this part 
        because of employment; or
            ``(2) is not receiving assistance under this part but would 
        be at risk of becoming eligible for such assistance if child 
        care was not provided.
    ``(h) Report on Transitional Services.--The report required by 
subsection (a) for a fiscal year shall include the total amount 
expended by the State for providing transitional services to a family 
that has ceased to receive assistance under this part because of 
employment, along with a description of such services.
    ``(i) Secretary's Report on Data Processing.--
            ``(1) In general.--Not later than 6 months after the date 
        of the enactment of the Work Opportunity Act of 1995, the 
        Secretary shall prepare and submit to the Congress a report 
        on--
                    ``(A) the status of the automated data processing 
                systems operated by the States to assist management in 
                the administration of State programs under this part 
                (whether in effect before or after October 1, 1995); 
                and
                    ``(B) what would be required to establish a system 
                capable of--
                            ``(i) tracking participants in public 
                        programs over time; and
                            ``(ii) checking case records of the States 
                        to determine whether individuals are 
                        participating in public programs in 2 or more 
                        States.
            ``(2) Preferred contents.--The report required by paragraph 
        (1) should include--
                    ``(A) a plan for building on the automated data 
                processing systems of the States to establish a system 
                with the capabilities described in paragraph (1)(B); 
                and
                    ``(B) an estimate of the amount of time required to 
                establish such a system and of the cost of establishing 
                such a system.
    ``(j) Report to Congress.--Not later than 6 months after the end of 
fiscal year 1997, and each fiscal year thereafter, the Secretary shall 
transmit to the Congress a report describing--
            ``(1) whether the States are meeting--
                    ``(A) the participation rates described in section 
                404(a); and
                    ``(B) the objectives of--
                            ``(i) increasing employment and earnings of 
                        needy families, and child support collections; 
                        and
                            ``(ii) decreasing out-of-wedlock 
                        pregnancies and child poverty;
            ``(3) the demographic and financial characteristics of 
        families applying for assistance, families receiving 
        assistance, and families that become ineligible to receive 
        assistance;
            ``(4) the characteristics of each State program funded 
        under this part; and
            ``(5) the trends in employment and earnings of needy 
        families with minor children.

``SEC. 410. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary shall conduct research on the 
benefits, effects, and costs of operating different State programs 
funded under this part, including time limits relating to eligibility 
for assistance. The research shall include studies on the effects of 
different programs and the operation of such programs on welfare 
dependency, illegitimacy, teen pregnancy, employment rates, child well-
being, and any other area the Secretary deems appropriate.
    ``(b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
            ``(1) In general.--The Secretary may assist States in 
        developing, and shall evaluate, innovative approaches for 
        reducing welfare dependency and increasing the well-being of 
        minor children with respect to recipients of assistance under 
        programs funded under this part. The Secretary may provide 
        funds for training and technical assistance to carry out the 
        approaches developed pursuant to this paragraph.
            ``(2) Evaluations.--In performing the evaluations under 
        paragraph (1), the Secretary shall, to the maximum extent 
feasible, use random assignment as an evaluation methodology.
    ``(c) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted under this section, including the 
facilitation of the sharing of information and best practices among 
States and localities through the use of computers and other 
technologies.
    ``(d) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        annually the States to which grants are paid under section 403 
        in the order of their success in placing recipients of 
        assistance under the State program funded under this part into 
        long-term private sector jobs, reducing the overall welfare 
        caseload, and, when a practicable method for calculating this 
        information becomes available, diverting individuals from 
        formally applying to the State program and receiving 
        assistance. In ranking States under this subsection, the 
        Secretary shall take into account the average number of minor 
        children in families in the State that have incomes below the 
        poverty line and the amount of funding provided each State for 
        such families.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.
    ``(e) Annual Ranking of States and Review of Issues Relating to 
Out-of-Wedlock Births.--
            ``(1) Annual ranking of states.--
                    ``(A) In general.--The Secretary shall annually 
                rank States to which grants are paid under section 403 
                based on the following ranking factors (developed with 
                information reported by the State under section 
                409(a)(13)):
                            ``(i) Absolute out-of-wedlock ratios.--The 
                        ratio represented by--
                                    ``(I) the total number of out-of-
                                wedlock births in families receiving 
                                assistance under the State program 
                                under this part in the State for the 
                                most recent fiscal year for which 
                                information is available; over
                                    ``(II) the total number of births 
                                in families receiving assistance under 
                                the State program under this part in 
                                the State for such year.
                            ``(ii) Net changes in the out-of-wedlock 
                        ratio.--The difference between the ratio 
                        described in subparagraph (A)(i) for the most 
                        recent fiscal year for which information is 
                        available and such State's ratio determined for 
                        the preceding year.
            ``(2) Annual review.--The Secretary shall review the 
        programs of the 5 States most recently ranked highest under 
        paragraph (1) and the 5 States most recently ranked the lowest 
        under paragraph (1).
    ``(f) Study on Alternative Outcomes Measures.--
            ``(1) Study.--The Secretary shall, in cooperation with the 
        States, study and analyze outcomes measures for evaluating the 
        success of a State in moving individuals out of the welfare 
        system through employment as an alternative to the minimum 
        participation rates described in section 404. The study shall 
        include a determination as to whether such alternative outcomes 
        measures should be applied on a national or a State-by-State 
        basis and a preliminary assessment of the job placement 
        performance bonus established under section 403(f).
            ``(2) Report.--Not later than September 30, 1998, the 
        Secretary shall submit to the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives a report containing the findings of the study 
        described in paragraph (1).
    ``(g) State-Initiated Studies.--A State shall be eligible to 
receive funding to evaluate the State's family assistance program 
funded under this part if--
            ``(1) the State submits a proposal to the Secretary for 
        such evaluation,
            ``(2) the Secretary determines that the design and approach 
        of the evaluation is rigorous and is likely to yield 
        information that is credible and will be useful to other 
        States, and
            ``(3) unless otherwise waived by the Secretary, the State 
        provides a non-Federal share of at least 10 percent of the cost 
        of such study.

``SEC. 411. 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 Work Opportunity Act of 1995 on a 
random national sample of recipients of assistance under State programs 
funded under this part and (as appropriate) other low-income families, 
and in doing so, shall pay particular attention to the issues of out-
of-wedlock births, 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. 412. WAIVERS.

    ``(a) Continuation of Waivers.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        any waiver granted to a State under section 1115 or otherwise 
        which relates to the provision of assistance under a State plan 
        under this part is in effect or approved by the Secretary as of 
        October 1, 1995, the amendments made by the Work Opportunity 
        Act of 1995 shall not apply with respect to the State before 
        the expiration (determined without regard to any extensions) of 
        the waiver to the extent such amendments are inconsistent with 
        the terms of the waiver.
            ``(2) Financing limitation.--Notwithstanding any other 
        provision of law, beginning with fiscal year 1996, a State 
        operating under a waiver described in paragraph (1) shall 
        receive the payment described for such State for such fiscal 
        year under section 403, in lieu of any other payment provided 
        for in the waiver.
    ``(b) State Option To Terminate Waiver.--
            ``(1) In general.--A State may terminate a waiver described 
        in subsection (a) before the expiration of the waiver.
            ``(2) Report.--A State which terminates a waiver under 
        paragraph (1) shall submit a report to the Secretary 
        summarizing the waiver and any available information concerning 
        the result or effect of such waiver.
            ``(3) Hold harmless provision.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, a State that, not later than the date 
                described in subparagraph (B), submits a written 
                request to terminate a waiver described in subsection 
                (a) shall be held harmless for accrued cost neutrality 
                liabilities incurred under the terms and conditions of 
                such waiver.
                    ``(B) Date described.--The date described in this 
                subparagraph is the later of--
                            ``(i) January 1, 1996; or
                            ``(ii) 90 days following the adjournment of 
                        the first regular session of the State 
                        legislature that begins after the date of the 
                        enactment of the Work Opportunity Act of 1995.
    ``(c) Secretarial Encouragement of Current Waivers.--The Secretary 
shall encourage any State operating a waiver described in subsection 
(a) to continue such waiver and to evaluate, using random sampling and 
other characteristics of accepted scientific evaluations, the result or 
effect of such waiver.
    ``(d) Continuation of Individual Waivers.--A State may elect to 
continue one or more individual waivers described in subsection (a)(1).

``SEC. 413. STATE AND COUNTY DEMONSTRATION PROGRAMS.

    ``(a) No Limitation of State Demonstration Projects.--Nothing in 
this part shall be construed as limiting a State's ability to conduct 
demonstration projects for the purpose of identifying innovative or 
effective program designs in 1 or more political subdivisions of the 
State: Provided, That such State contains more than one county with a 
population of greater than 500,000.
    ``(b) County Welfare Demonstration Project.--
            ``(1) In general.--The Secretary of Health and Human 
        Services and the Secretary of Agriculture shall jointly enter 
        into negotiations with all counties having a population greater 
        than 500,000 desiring to conduct a demonstration project 
        described in paragraph (2) for the purpose of establishing 
        appropriate rules to govern the establishment and operation of 
        such project.
            ``(2) Demonstration project described.--The demonstration 
        project described in this paragraph shall provide that--
                    ``(A) a county participating in the demonstration 
                project shall have the authority and duty to administer 
                the operation of the program described under this part 
                as if the county were considered a State for the 
                purpose of this part;
                    ``(B) the State in which the county participating 
                in the demonstration project is located shall pass 
                through directly to the county the portion of the grant 
                received by the State under section 403 which the State 
                determines is attributable to the residents of such 
                county; and
                    ``(C) the duration of the project shall be for 5 
                years.
            ``(3) Commencement of project.--After the conclusion of the 
        negotiations described in paragraph (2), the Secretary of 
        Health and Human Services and the Secretary of Agriculture may 
        authorize a county to conduct the demonstration project 
        described in paragraph (2) in accordance with the rules 
        established during the negotiations.
            ``(4) Report.--Not later then 6 months after the 
        termination of a demonstration project operated under this 
        subsection, the Secretary of Health and Human Services and the 
        Secretary of Agriculture shall submit to the Congress a report 
        that includes--
                    ``(A) a description of the demonstration project;
                    ``(B) the rules negotiated with respect to the 
                project; and
                    ``(C) the innovations (if any) that the county was 
                able to initiate under the project.
            ``(5) Eligible county.--A county may participate in a 
        demonstration project under this subsection if the county is--
                    ``(A) a county that is already administering the 
                welfare program under this part;
                    ``(B) represents less than 25 percent of the 
                State's total welfare caseload.

``SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    ``(a) Purpose.--The purpose of this section is--
            ``(1) to strengthen and enhance the control and flexibility 
        of local governments over local programs; and
            ``(2) in recognition of the principles contained in the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.)--
                    ``(A) to provide direct Federal funding to Indian 
                tribes for the tribal administration of the program 
                funded under this part; or
                    ``(B) to enable Indian tribes to enter into 
                agreements, contracts, or compacts with intertribal 
                consortia, States, or other entities for the 
                administration of such program on behalf of the Indian 
                tribe.
    ``(b) Grant Amounts for Indian Tribes.--
            ``(1) In general.--For each of fiscal years 1996, 1997, 
        1998, 1999, and 2000, the Secretary shall pay to each Indian 
        tribe that has an approved tribal family assistance plan a 
        tribal family assistance grant for the fiscal year in an amount 
        equal to the amount determined under paragraph (2).
            ``(2) Amount determined.--
                    ``(A) In general.--The amount determined under this 
                paragraph is an amount equal to the total amount of the 
                Federal payments to a State or States under section 403 
                for fiscal year 1994 (as in effect during such fiscal 
                year) attributable to expenditures by the State or 
                States under part A and part F of this title (as so in 
                effect) in such year for Indian families residing in 
                the service area or areas identified by the Indian 
                tribe in subsection (c)(1)(C).
                    ``(B) Use of state submitted data.--
                            ``(i) In general.--The Secretary shall use 
                        State submitted data to make each determination 
                        under subparagraph (A).
                            ``(ii) Disagreement with determination.--If 
                        an Indian tribe or tribal organization 
                        disagrees with State submitted data described 
                        under clause (i), the Indian tribe or tribal 
                        organization may submit to the Secretary such 
                        additional information as may be relevant to 
                        making the determination under subparagraph (A) 
                        and the Secretary may consider such information 
                        before making such determination.
    ``(c) 3-Year Tribal Family Assistance Plan.--
            ``(1) In general.--Any Indian tribe that desires to receive 
        a tribal family assistance grant shall submit to the Secretary 
        a 3-year tribal family assistance plan that--
                    ``(A) outlines the Indian tribe's approach to 
                providing welfare-related services for the 3-year 
                period, consistent with the purposes of this section;
                    ``(B) specifies whether the welfare-related 
                services provided under the plan will be provided by 
                the Indian tribe or through agreements, contracts, or 
                compacts with intertribal consortia, States, or other 
                entities;
                    ``(C) identifies the population and service area or 
                areas to be served by such plan;
                    ``(D) provides that a family receiving assistance 
                under the plan may not receive duplicative assistance 
                from other State or tribal programs funded under this 
                part;
                    ``(E) identifies the employment opportunities in or 
                near the service area or areas of the Indian tribe and 
                the manner in which the Indian tribe will cooperate and 
                participate in enhancing such opportunities for 
                recipients of assistance under the plan consistent with 
                any applicable State standards; and
                    ``(F) applies the fiscal accountability provisions 
                of section 5(f)(1) of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450c(f)(1)), 
                relating to the submission of a single-agency audit 
                report required by chapter 75 of title 31, United 
                States Code.
            ``(2) Approval.--The Secretary shall approve each tribal 
        family assistance plan submitted in accordance with paragraph 
        (1).
            ``(3) Consortium of tribes.--Nothing in this section shall 
        preclude the development and submission of a single plan by the 
        participating Indian tribes of an intertribal consortium.
    ``(d) Minimum Work Participation Requirements and Time Limits.--The 
Secretary, with the participation of Indian tribes, shall establish for 
each Indian tribe receiving a grant under this section minimum work 
participation requirements, appropriate time limits for receipt of 
welfare-related services under such grant, and penalties against 
individuals--
            ``(1) consistent with the purposes of this section;
            ``(2) consistent with the economic conditions and resources 
        available to each tribe; and
            ``(3) similar to comparable provisions in section 404(d).
    ``(e) Emergency Assistance.--Nothing in this section shall preclude 
an Indian tribe from seeking emergency assistance from any Federal loan 
program or emergency fund.
    ``(f) Accountability.--Nothing in this section shall be construed 
to limit the ability of the Secretary to maintain program funding 
accountability consistent with--
            ``(1) generally accepted accounting principles; and
            ``(2) the requirements of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450 et seq.).
    ``(g) Tribal Penalties.--For the purpose of ensuring the proper use 
of tribal family assistance grants, the following provisions shall 
apply to an Indian tribe with an approved tribal assistance plan:
            ``(1) The provisions of subsections (a)(1), (a)(6), and (b) 
        of section 407, in the same manner as such subsections apply to 
        a State.
            ``(2) The provisions of section 407(a)(3), except that such 
        subsection shall be applied by substituting `the minimum 
        requirements established under subsection (d) of section 414' 
        for `the minimum participation rates specified in section 404'.
    ``(h) Data Collection and Reporting.--For the purpose of ensuring 
uniformity in data collection, section 409 shall apply to an Indian 
tribe with an approved tribal family assistance plan.
    ``(i) Special Rule for Indian Tribes in Alaska.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, and except as provided in paragraph (2), an 
        Indian tribe in the State of Alaska that receives a tribal 
        family assistance grant under this section shall use such grant 
        to operate a program in accordance with the requirements 
        applicable to the program of the State of Alaska funded under 
        this part.
            ``(2) Waiver.--An Indian tribe described in paragraph (1) 
        may apply to the appropriate State authority to receive a 
        waiver of the requirement of paragraph (1).

``SEC. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

    ``The programs under this part and part D of this title shall be 
administered by an Assistant Secretary for Family Support within the 
Department of Health and Human Services, who shall be appointed by the 
President, by and with the advice and consent of the Senate, and who 
shall be in addition to any other Assistant Secretary of Health and 
Human Services provided for by law.

``SEC. 416. LIMITATION ON FEDERAL AUTHORITY.

    ``The Secretary of Health and Human Services and the Secretary of 
the Treasury 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.

``SEC. 417. APPEAL OF ADVERSE DECISION.

    ``(a) In General.--The Secretary shall notify the chief executive 
officer of a State of any adverse decision or action under this part, 
including any decision with respect to the State's plan or the 
imposition of a penalty under section 407.
    ``(b) Administrative Review of Adverse Decision.--
            ``(1) In general.--Within 60 days after the date a State 
        receives notice of an adverse decision under this section, the 
        State may appeal the decision, in whole or in part, to the 
        Departmental Appeals Board established in the Department of 
        Health and Human Services (hereafter referred to in this 
        section as the `Board') by filing an appeal with the Board.
            ``(2) Procedural rules.--The Board shall consider a State's 
        appeal on the basis of such documentation as the State may 
        submit and as the Board may require to support the final 
        decision of the Board. In deciding whether to uphold an adverse 
        decision or any portion thereof, the Board shall conduct a 
        thorough review of the issues and take into account all 
        relevant evidence. The Board shall make a final determination 
        with respect to an appeal filed under this paragraph not less 
        than 60 days after the date the appeal is filed.
    ``(c) Judicial Review of Adverse Decision.--
            ``(1) In general.--Within 90 days after the date of a final 
        decision by the Board with respect to an adverse decision 
        regarding a State under this section, the State may obtain 
        judicial review of the final decision (and the findings 
        incorporated into the final decision) by filing an action in--
                    ``(A) the district court of the United States for 
                the judicial district in which the principal or 
                headquarters office of the State agency is located; or
                    ``(B) the United States District Court for the 
                District of Columbia.
            ``(2) Procedural rules.--The district court in which an 
        action is filed shall review the final decision of the Board on 
        the record established in the administrative proceeding, in 
        accordance with the standards of review prescribed by 
        subparagraphs (A) through (E) of section 706(2) of title 5, 
        United States Code. The review shall be on the basis of the 
        documents and supporting data submitted to the Board.

``SEC. 418. PERFORMANCE BONUS AND HIGH PERFORMANCE BONUS.

    ``(a) In General.--
            ``(1) Performance bonus.--In addition to the State family 
        assistance grant, for fiscal year 2000, the Secretary shall pay 
        to each qualified State an amount equal to the State's share of 
        the performance bonus fund described in paragraph (3).
            ``(2) Qualified state.--For purposes of this subsection, 
        the term `qualified State' means a State that during the 
        measurement period--
                    ``(A) exceeds the overall average performance 
                achieved by all States with respect to a measurement 
                category, or
                    ``(B) improves the State's performance in a 
                measurement category by at least 15 percent over the 
                State's baseline period.
            ``(3) Bonus fund.--The amount of the bonus fund for fiscal 
        year 2000 shall be an amount equal to 5 percent of the amount 
        appropriated under section 403(a)(2)(A) for such fiscal year.
    ``(b) High Performance Bonus.--
            ``(1) In general.--In addition to the amount provided under 
        subsection (a), each of the 10 high performance States in each 
        measurement category shall be entitled to receive a share of 
        the high performance bonus fund described in paragraph (3).
            ``(2) High performance states.--For purposes of this 
        subsection, the term `high performance States' means with 
        respect to each measurement category during the measurement 
        period--
                    ``(A) the 5 States that have the highest percentage 
                of improvement with respect to the State's performance 
                in the measurement category over the State's baseline 
                period; and
                    ``(B) the 5 States that have the highest overall 
                average performance with respect to the measurement 
                category.
            ``(3) High performance bonus fund.--There are authorized to 
        be appropriated and there are appropriated the amount of the 
        high performance bonus fund for fiscal year 2000 equal to the 
        amount of the reduction in State family assistance grants for 
        all States for fiscal years 1996, 1997, 1998, and 1999 
        resulting from the application of section 407.
    ``(c) Definitions and Special Rules.-- For purposes of this 
section:
            ``(1) Measurement category.--A measurement category means 
        any of the following categories:
                    ``(A) A reduction in the average length of time 
                families in the State receive assistance during a 
                fiscal year under the State program funded under this 
                part.
                    ``(B) An increase in the percentage of families 
                receiving such assistance under this part that receive 
                child support payments under part D.
                    ``(C) An increase in the number of families that 
                received assistance under a State program funded under 
                this part in the preceding fiscal year that became 
                ineligible for assistance under the State program as a 
                result of unsubsidized employment during such year.
                    ``(D) An increase in the amount earned by families 
                that receive assistance under this part.
                    ``(E) A reduction in the percentage of families 
                that become eligible for assistance under this part 
                within 18 months after becoming ineligible for such 
                assistance.
            ``(2) Measurement Period; Baseline Period.--
                    ``(A) Measurement period.--The term `measurement 
                period' means the period beginning not later than 6 
                months after the date of the enactment of the Work 
                Opportunity Act of 1995 and ending on September 30, 
                1999.
                    ``(B) Baseline period.--The term `baseline period' 
                means fiscal year 1994.
            ``(3) Allocation formula.--For purposes of determining a 
        State's share of the performance bonus fund under subsection 
        (a)(1), and the State's share of the high performance bonus 
        fund under subsection (b)(1), the Secretary shall, not later 
        than June 30, 1999, develop and publish in the Federal Register 
        a formula for allocating amounts in the performance bonus fund 
        to qualified States and a formula for allocating amounts in the 
        high performance bonus fund to high performance States. Such 
        formulas shall be based on each State's proportional share of 
        the total amount appropriated under section 403(a)(2)(A) for 
        fiscal year 2000.

``SEC. 419. AMOUNTS FOR CHILD CARE.

    ``(a) Child Care Allocation.--
            ``(1) In general.--From the amount appropriated under 
        section 403(a)(4)(A) for a fiscal year, the Secretary shall set 
        aside an amount equal to the total amount of the Federal 
        payments for fiscal year 1994 to States under section--
                    ``(A) 402(g)(3)(A) of this Act (as such section was 
                in effect before October 1, 1995) for amounts expended 
                for child care pursuant to paragraph (1) of such 
                section;
                    ``(B) 403(l)(1)(A) of this Act (as so in effect) 
                for amounts expended for child care pursuant to section 
                402(g)(1)(A) of this Act, in the case of a State with 
                respect to which section 1108 of this Act applies; and
                    ``(C) 403(n) of this Act (as so in effect) for 
                child care services pursuant to section 402(i) of this 
                Act.
            ``(2) Distribution.--From amounts set aside for a fiscal 
        year under paragraph (1), the Secretary shall pay to a State an 
        amount equal to the total amounts of Federal payments for 
        fiscal year 1994 to the State under section--
                    ``(A) 402(g)(3)(A) of this Act (as such section was 
                in effect before October 1, 1995) for amounts expended 
                for child care pursuant to paragraph (1) of such 
                section;
                    ``(B) 403(l)(1)(A) of this Act (as so in effect) 
                for amounts expended for child care pursuant to section 
                402(g)(1)(A) of this Act, in the case of a State with 
                respect to which section 1108 of this Act applies; and
                    ``(C) 403(n) of this Act (as so in effect) for 
                child care services pursuant to section 402(i) of this 
                Act.
            ``(3) Use of funds.--Amounts received by a State under 
        paragraph (2) shall only be used to provide child care 
        assistance under this part.
            ``(4) Federal payments.--For purposes of paragraphs (1) and 
        (2), Federal payments for fiscal year 1994 means such payments 
        as reported by the State on February 14, 1995.
    ``(b) Additional Appropriation.--
            ``(1) In general.--There are authorized to be appropriated 
        and there are appropriated, $3,000,000,000 to be distributed to 
        the States during the 5-fiscal year period beginning in fiscal 
        year 1996 for the provision of child care assistance.
            ``(2) Distribution.--
                    ``(A) In general.--The Secretary shall use amounts 
                made available under paragraph (1) to make grants to 
                States. The total amount of grants awarded to a State 
                under this paragraph shall be based on the formula used 
                for determining the amount of Federal payments to the 
                State for fiscal year 1994 under section 403(n) (as 
                such section was in effect before October 1, 1995) for 
                child care services pursuant to section 402(i) as such 
                amount relates to the total amount of such Federal 
                payments to all States for such fiscal year.
                    ``(B) Fiscal year 2000.--With respect to the last 
                quarter of fiscal year 2000, if the Secretary 
                determines that any allotment to a State under this 
                subsection will not be used by such State for carrying 
                out the purpose for which the allotment is available, 
                the Secretary shall make such allotment available for 
                carrying out such purpose to 1 or more other States 
                which apply for such funds to the extent the Secretary 
                determines that such other States will be able to use 
                such additional allotments for carrying out such 
                purpose. Such available allotments shall be reallocated 
                to a State pursuant to section 402(i) (as such section 
                was in effect before October 1, 1995) by substituting 
                `the number of children residing in all States applying 
                for such funds' for `the number of children residing in 
                the United States in the second preceding fiscal year'. 
                Any amount made available to a State from an 
                appropriation for a fiscal year in accordance with the 
                preceding sentence shall, for purposes of this part, be 
regarded as part of such State's payment (as determined under this 
subsection) for such year.
            ``(3) Amount of funds.--The Secretary shall pay to each 
        eligible State in a fiscal year an amount equal to the Federal 
        medical assistance percentage for such State for such fiscal 
        year (as defined in section 1905(b)) of so much of the 
        expenditures by the State for child care in such year as exceed 
        the State set-aside for such State under subsection (a) for 
        such year and the amount of State expenditures in fiscal year 
        1994 that equal the non-Federal share for the programs 
        described in subparagraphs (A), (B) and (C) of subsection 
        (a)(1).
            ``(4) Budget scoring.--Notwithstanding section 257(b)(2) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985, 
        the baseline shall assume that no grant shall be made under 
        this subsection after fiscal year 2000.
    ``(c) Administrative Provisions.--
            ``(1) State option.--For purposes of section 402(a)(1)(B), 
        a State may, at its option, not require a single parent with a 
        child under the age of 6 to participate in work for more than 
        an average of 20 hours per week during a month and may count 
        such parent as being engaged in work for a month for purposes, 
        of section 404(c)(1) if such parent participates in work for an 
        average of 20 hours per week during such month.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed to provide an entitlement to child care services 
        to any child.

``SEC. 420. ELIGIBILITY FOR CHILD CARE ASSISTANCE.

    Notwithstanding section 658T of the Child Care and Development 
Block Grant Act of 1990, the State agency specified in section 
402(a)(6) shall determine eligibility for child care assistance 
provided under this part in accordance with criteria determined by the 
State.

``SEC. 421. COLLECTION OF OVERPAYMENTS FROM FEDERAL TAX REFUNDS.

    ``(a) In General.--Upon receiving notice from the Secretary of 
Health and Human Services that a State agency administering a plan 
approved under this part has notified the Secretary that a named 
individual has been overpaid under the State plan approved under this 
part, the Secretary of the Treasury shall determine whether any amounts 
as refunds of Federal taxes paid are payable to such individual, 
regardless of whether such individual filed a tax return as a married 
or unmarried individual. If the Secretary of the Treasury finds that 
any such amount is payable, the Secretary shall withhold from such 
refunds an amount equal to the overpayment sought to be collected by 
the State and pay such amount to the State agency.
    ``(b) Regulations.--The Secretary of the Treasury shall issue 
regulations, after review by the Secretary of Health and Human 
Services, that provide--
            ``(1) that a State may only submit under subsection (a) 
        requests for collection of overpayments with respect to 
        individuals--
                    ``(A) who are no longer receiving assistance under 
                the State plan approved under this part,
                    ``(B) with respect to whom the State has already 
                taken appropriate action under State law against the 
                income or resources of the individuals or families 
                involved to collect the past-due legally enforceable 
                debt; and
                    ``(C) to whom the State agency has given notice of 
                its intent to request withholding by the Secretary of 
                the Treasury from the income tax refunds of such 
                individuals;
            ``(2) that the Secretary of the Treasury will give a timely 
        and appropriate notice to any other person filing a joint 
        return with the individual whose refund is subject to 
withholding under subsection (a); and
            ``(3) the procedures that the State and the Secretary of 
        the Treasury will follow in carrying out this section which, to 
        the maximum extent feasible and consistent with the specific 
        provisions of this section, will be the same as those issued 
        pursuant to section 464(b) applicable to collection of past-due 
        child support.''.
    (c) Conforming Amendments Relating To Collection of Overpayments.--
            (1) Section 6402 of the Internal Revenue Code of 1986 
        (relating to authority to make credits or refunds) is amended--
                    (A) in subsection (a), by striking ``(c) and (d)'' 
                and inserting ``(c), (d), and (e)'';
                    (B) by redesignating subsections (e) through (i) as 
                subsections (f) through (j), respectively; and
                    (C) by inserting after subsection (d) the 
                following:
    ``(e) Collection of Overpayments Under Title IV-A of the Social 
Security Act.--The amount of any overpayment to be refunded to the 
person making the overpayment shall be reduced (after reductions 
pursuant to subsections (c) and (d), but before a credit against future 
liability for an internal revenue tax) in accordance with section 421 
of the Social Security Act (concerning recovery of overpayments to 
individuals under State plans approved under part A of title IV of such 
Act).''.
            (2) Paragraph (10) of section 6103(l) of such Code is 
        amended--
                    (A) by striking ``(c) or (d)'' each place it 
                appears and inserting ``(c), (d), or (e)''; and
                    (B) by adding at the end of subparagraph (B) the 
                following new sentence: ``Any return information 
                disclosed with respect to section 6402(e) shall only be 
                disclosed to officers and employees of the State agency 
                requesting such information.''.
            (3) The matter preceding subparagraph (A) of section 
        6103(p)(4) of such Code is amended--
                    (A) by striking ``(5), (10)'' and inserting 
                ``(5)''; and
                    (B) by striking ``(9), or (12)'' and inserting 
                ``(9), (10), or (12)''.
            (4) Section 552a(a)(8)(B)(iv)(III) of title 5, United 
        States Code, is amended by striking ``section 464 or 1137 of 
        the Social Security Act'' and inserting ``section 421, 464, or 
        1137 of the Social Security Act.''.

SEC. 102. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE 
              ORGANIZATIONS.

    (a) In General.--
            (1) State options.--Notwithstanding any other provision of 
        law, a State may--
                    (A) administer and provide services under the 
                programs described in subparagraphs (A) and (B)(i) of 
                paragraph (2) through contracts with charitable, 
                religious, or private organizations; and
                    (B) provide beneficiaries of assistance under the 
                programs described in subparagraphs (A) and (B)(ii) of 
                paragraph (2) with certificates, vouchers, or other 
                forms of disbursement which are redeemable with such 
                organizations.
            (2) Programs described.--The programs described in this 
        paragraph are the following programs:
                    (A) A State program funded under part A of title IV 
                of the Social Security Act (as amended by section 101).
                    (B) Any other program that is established or 
                modified under titles I, II, or X that--
                            (i) permits contracts with organizations; 
                        or
                            (ii) permits certificates, vouchers, or 
                        other forms of disbursement to be provided to 
                        beneficiaries, as a means of providing 
                        assistance.
    (b) Religious Organizations.--The purpose of this section is to 
allow religious organizations to contract, or to accept certificates, 
vouchers, or other forms of disbursement under any program described in 
subsection (a)(2), on the same basis as any other provider without 
impairing the religious character of such organizations, and without 
diminishing the religious freedom of beneficiaries of assistance funded 
under such program.
    (c) Nondiscrimination Against Religious Organizations.--Religious 
organizations are eligible, on the same basis as any other private 
organization, as contractors to provide assistance, or to accept 
certificates, vouchers, or other forms of disbursement, under any 
program described in subsection (a)(2) so long as the programs are 
implemented consistent with the Establishment Clause of the United 
States Constitution. Neither the Federal Government nor a State 
receiving funds under such programs shall discriminate against an 
organization which is or applies to be a contractor to provide 
assistance, or which accepts certificates, vouchers, or other forms of 
disbursement, on the basis that the organization has a religious 
character.
    (d) Religious Character and Freedom.--
            (1) Religious organizations.--Notwithstanding any other 
        provision of law, any religious organization with a contract 
        described in subsection (a)(1)(A), or which accepts 
        certificates, vouchers, or other forms of disbursement under 
        subsection (a)(1)(B), shall retain its independence from 
        Federal, State, and local governments, including such 
        organization's control over the definition, development, 
        practice, and expression of its religious beliefs.
            (2) Additional safeguards.--Neither the Federal Government 
        nor a State shall require a religious organization to--
                    (A) alter its form of internal governance; or
                    (B) remove religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to contract to provide assistance, or 
        to accept certificates, vouchers, or other forms of 
        disbursement, funded under a program described in subsection 
        (a)(2).
    (e) Rights of Beneficiaries of Assistance.--
            (1) In general.--If an individual described in paragraph 
        (2) has an objection to the religious character of the 
        organization or institution from which the individual receives, 
        or would receive, assistance funded under any program described 
        in subsection (a)(2), the State in which the individual resides 
        shall provide such individual (if otherwise eligible for such 
        assistance) with assistance from an alternative provider the 
        value of which is not less than the value of the assistance 
        which the individual would have received from such 
        organization.
            (2) Individual described.--An individual described in this 
        paragraph is an individual who receives, applies for, or 
        requests to apply for, assistance under a program described in 
        subsection (a)(2).
    (f) Nondiscrimination in Employment.--
            (1) In general.--Except as provided in paragraph (2), 
        nothing in this section shall be construed to modify or affect 
        the provisions of any other Federal or State law or regulation 
        that relates to discrimination in employment on the basis of 
        religion.
            (2) Exception.--A religious organization with a contract 
        described in subsection (a)(1)(A), or which accepts 
        certificates, vouchers, or other forms of disbursement under 
        subsection (a)(1)(B), may require that an employee rendering 
        service pursuant to such contract, or pursuant to the 
        organization's acceptance of certificates, vouchers, or other 
        forms of disbursement adhere to--
                    (A) the religious tenets and teachings of such 
                organization; and
                    (B) any rules of the organization regarding the use 
                of drugs or alcohol.
    (g) Nondiscrimination Against Beneficiaries.--Except as otherwise 
provided in law, a religious organization shall not discriminate 
against an individual in regard to rendering assistance funded under 
any program described in subsection (a)(2) on the basis of religion, a 
religious belief, or refusal to actively participate in a religious 
practice.
    (h) Fiscal Accountability.--
            (1) In general.--Except as provided in paragraph (2), any 
        religious organization contracting to provide assistance funded 
        under any program described in subsection (a)(2) shall be 
        subject to the same regulations as other contractors to account 
        in accord with generally accepted auditing principles for the 
        use of such funds provided under such programs.
            (2) Limited audit.--If such organization segregates Federal 
        funds provided under such programs into separate accounts, then 
        only the financial assistance provided with such funds shall be 
        subject to audit.
    (i) Compliance.--A religious organization which has its rights 
under this section violated may enforce its claim exclusively by 
asserting a civil action for such relief as may be appropriate, 
including injunctive relief or damages, in an appropriate State court 
against the entity or agency that allegedly commits such violation.

SEC. 103. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

    No funds provided directly to institutions or organizations to 
provide services and administer programs described in section 102(a)(2) 
and programs established or modified under this Act shall be expended 
for sectarian worship or instruction. This section shall not apply to 
financial assistance provided to or on behalf of beneficiaries of 
assistance in the form of certificates, vouchers, or other forms of 
disbursement, if such beneficiary may choose where such assistance 
shall be redeemed.

SEC. 104. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    (a) In General.--Title XIX (42 U.S.C. 1396 et seq.) 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 June 1, 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 June 1, 1995, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may, at the option of the State, continue to be 
applied in relation to this title after the date the waiver would 
otherwise expire.''.
    (b) Plan Amendment.--Section 1902(a) (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) (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) (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. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR THEIR 
              GRANDCHILDREN.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Commerce (hereafter in this 
section referred to as the ``Secretary''), in carrying out the 
provisions of section 141 of title 13, United States Code, shall expand 
the data collection efforts of the Bureau of the Census (hereafter in 
this section referred to as the ``Bureau'') to enable the Bureau to 
collect statistically significant data, in connection with its 
decennial census and its mid-decade census, concerning the growing 
trend of grandparents who are the primary caregivers for their 
grandchildren.
    (b) Expanded Census Question.--In carrying out the provisions of 
subsection (a), the Secretary shall expand the Bureau's census question 
that details households which include both grandparents and their 
grandchildren. The expanded question shall be formulated to distinguish 
between the following households:
            (1) A household in which a grandparent temporarily provides 
        a home for a grandchild for a period of weeks or months during 
        periods of parental distress.
            (2) A household in which a grandparent provides a home for 
        a grandchild and serves as the primary caregiver for the 
        grandchild.

SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL 
              SECURITY CARD REQUIRED.

    (a) Development.--
            (1) In general.--The Commissioner of Social Security 
        (hereafter in this section referred to as the ``Commissioner'') 
        shall in accordance with the provisions of this section develop 
        a prototype of a counterfeit-resistant social security card. 
        Such prototype card shall--
                    (A) be made of a durable, tamper-resistant material 
                such as plastic or polyester,
                    (B) employ technologies that provide security 
                features, such as magnetic stripes, holograms, and 
                integrated circuits, and
                    (C) be developed so as to provide individuals with 
                reliable proof of citizenship or legal resident alien 
                status.
            (2) Assistance by attorney general.--The Attorney General 
        of the United States shall provide such information and 
        assistance as the Commissioner deems necessary to achieve the 
        purposes of this section.
    (b) Study and Report.--
            (1) In general.--The Commissioner shall conduct a study and 
        issue a report to Congress which examines different methods of 
        improving the social security card application process.
            (2) Elements of study.--The study shall include an 
        evaluation of the cost and work load implications of issuing a 
        counterfeit-resistant social security card for all individuals 
        over a 3, 5, and 10 year period. The study shall also evaluate 
        the feasibility and cost implications of imposing a user fee 
        for replacement cards and cards issued to individuals who apply 
        for such a card prior to the scheduled 3, 5, and 10 year phase-
        in options.
            (3) Distribution of report.--Copies of the report described 
        in this subsection along with a facsimile of the prototype card 
        as described in subsection (a) shall be submitted to the 
        Committees on Ways and Means and Judiciary of the House of 
        Representatives and the Committees on Finance and Judiciary of 
        the Senate within l year of the date of the enactment of this 
        Act.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated and are appropriated from the Federal Old-Age and 
Survivors Insurance Trust Fund such sums as may be necessary to carry 
out the purposes of this section.

SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
        as so redesignated by section 321(a)(9)(B) of the Social 
        Security Independence and Program Improvements Act of 1994, is 
        amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
        inserting ``under a State program funded under'' before ``part 
        A of title IV''.
    (b) Amendment to Part B of Title IV.--Section 422(b)(2) (42 U.S.C. 
622(b)(2)) is amended by striking ``under the State plan approved'' and 
inserting ``under the State program funded.''.
    (c) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by striking 
        ``aid'' and inserting ``assistance under a State program 
        funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``assistance under a State 
                program funded under part A'';
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``402(a)(26) or''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
        amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
        first sentence by striking ``aid under the State plan approved 
        under part A'' and inserting ``assistance under a State program 
        funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
        amended by striking ``1115(c)'' and inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved under part A or E'' and 
        inserting ``assistance is being provided under the State 
        program funded under part A or aid is being paid under the 
        State's plan approved under part E''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter following clause (iii) by striking ``aid 
        was being paid under the State's plan approved under part A or 
        E'' and inserting ``assistance was being provided under the 
        State program funded under part A or aid was being paid under 
        the State's plan approved under part E''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
        the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child'' and 
                inserting ``with respect to whom assistance is being 
                provided under the State program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``with the State in establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (11) Section 454 (42 U.S.C. 654)) is amended--
                    (A) in paragraph (5)(A)--
                            (i) by striking ``under section 
                        402(a)(26)''; and
                            (ii) by striking ``except that this 
                        paragraph shall not apply to such payments for 
                        any month following the first month in which 
                        the amount collected is sufficient to make such 
                        family ineligible for assistance under the 
                        State plan approved under part A;''; and
                    (B) in paragraph (6)(D), by striking ``aid under a 
                State plan approved'' and inserting ``assistance under 
                a State program funded''.
            (12) Section 456 (42 U.S.C. 656) is amended--
                    (A) in subsection (a)(1), by striking ``under 
                section 402(a)(26)''; and
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) A debt which is a support obligation enforceable under this 
title is not released by a discharge in bankruptcy under title 11, 
United States Code.''.
            (13) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``402(a)(26) or''.
            (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (15) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans approved'' and 
                inserting ``assistance under State programs funded''; 
                and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''.
    (d) Amendments to Part E of Title IV.--
            (1) Section 470 (42 U.S.C. 670) is amended--
                    (A) by striking ``would be'' and inserting ``would 
                have been''; and
                    (B) by inserting ``(as such plan was in effect on 
                June 1, 1995)'' after ``part A''.
            (2) Section 471(17) (42 U.S.C. 671(17)) is amended by 
        striking ``plans approved under parts A and D'' and inserting 
        ``program funded under part A and plan approved under part D''.
            (3) Section 472(a) (42 U.S.C. 672(a)) is amended--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``would meet'' and 
                        inserting ``would have met'';
                            (ii) by inserting ``(as such sections were 
                        in effect on June 1, 1995)'' after ``407''; and
                            (iii) by inserting ``(as so in effect)'' 
                        after ``406(a)''; and
                    (B) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``would have'' 
                                after ``(A)''; and
                                    (II) by inserting ``(as in effect 
                                on June 1, 1995)'' after ``section 
                                402''; and
                            (ii) in subparagraph (B)(ii), by inserting 
                        ``(as in effect on June 1, 1995)'' after 
                        ``406(a)''.
            (4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as 
        follows:
    ``(h)(1) For purposes of title XIX, any child with respect to whom 
foster care maintenance payments are made under this section shall be 
deemed to be a dependent child as defined in section 406 (as in effect 
as of June 1, 1995) and shall be deemed to be a recipient of aid to 
families with dependent children under part A of this title (as so in 
effect). For purposes of title XX, any child with respect to whom 
foster care maintenance payments are made under this section shall be 
deemed to be a minor child in a needy family under a State program 
funded under part A and shall be deemed to be a recipient of assistance 
under such part.
    ``(2) For purposes of paragraph (1), a child whose costs in a 
foster family home or child care institution are covered by the foster 
care maintenance payments being made with respect to the child's minor 
parent, as provided in section 475(4)(B), shall be considered a child 
with respect to whom foster care maintenance payments are made under 
this section.''.
            (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
                    (A) in subparagraph (A)(i)--
                            (i) by inserting ``(as such sections were 
                        in effect on June 1, 1995)'' after ``407'';
                            (ii) by inserting ``(as so in effect)'' 
                        after ``specified in section 406(a)''; and
                            (iii) by inserting ``(as such section was 
                        in effect on June 1, 1995)'' after ``403'';
                    (B) in subparagraph (B)(i)--
                            (i) by inserting ``would have'' after 
                        ``(B)(i)''; and
                            (ii) by inserting ``(as in effect on June 
                        1, 1995)'' after ``section 402''; and
                    (C) in subparagraph (B)(ii)(II), by inserting ``(as 
                in effect on June 1, 1995)'' after ``406(a)''.
            (6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as 
        follows:
    ``(b)(1) For purposes of title XIX, any child who is described in 
paragraph (3) shall be deemed to be a dependent child as defined in 
section 406 (as in effect as of June 1, 1995) and shall be deemed to be 
a recipient of aid to families with dependent children under part A of 
this title (as so in effect) in the State where such child resides.
    ``(2) For purposes of title XX, any child who is described in 
paragraph (3) shall be deemed to be a minor child in a needy family 
under a State program funded under part A and shall be deemed to be a 
recipient of assistance under such part.
    ``(3) A child described in this paragraph is any child--
            ``(A)(i) who is a child described in subsection (a)(2), and
            ``(ii) with respect to whom an adoption assistance 
        agreement is in effect under this section (whether or not 
        adoption assistance payments are provided under the agreement 
        or are being made under this section), including any such child 
        who has been placed for adoption in accordance with applicable 
        State and local law (whether or not an interlocutory or other 
        judicial decree of adoption has been issued), or
            ``(B) with respect to whom foster care maintenance payments 
        are being made under section 472.
    ``(4) For purposes of paragraphs (1) and (2), a child whose costs 
in a foster family home or child-care institution are covered by the 
foster care maintenance payments being made with respect to the child's 
minor parent, as provided in section 475(4)(B), shall be considered a 
child with respect to whom foster care maintenance payments are being 
made under section 472.''.
    (e) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (f) Amendments to Title XI.--
            (1) Section 1109 (42 U.S.C. 1309) is amended by striking 
        ``or part A of title IV,''.
            (2) Section 1115 (42 U.S.C. 1315) is amended--
                    (A) in subsection (a)(2)--
                            (i) by inserting ``(A)'' after ``(2)'';
                            (ii) by striking ``403,'';
                            (iii) by striking the period at the end and 
                        inserting ``, and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(B) costs of such project which would not otherwise be a 
        permissible use of funds under part A of title IV and which are 
        not included as part of the costs of projects under section 
        1110, shall to the extent and for the period prescribed by the 
        Secretary, be regarded as a permissible use of funds under such 
        part.''; and
                    (B) in subsection (c)(3), by striking ``under the 
                program of aid to families with dependent children'' 
                and inserting ``part A of such title''.
            (3) Section 1116 (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,''.
            (4) Section 1118 (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``, and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (5) Section 1119 (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a),''.
            (6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
        striking ``or part A of title IV,''.
            (7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (8) Section 1137 (42 U.S.C. 1320b-7) is amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
            (9) Section 1108 (42 U.S.C. 1308) is amended--
                    (A) in subsection (a)--
                            (i) in the matter preceding paragraph (1)--
                                    (I) by inserting ``(or paid, in the 
                                case of part A of title IV)'' after 
                                ``certified''; and
                                    (II) by striking ``or, in the case 
                                of'' and all that follows through 
                                ``section 403(k)'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (F), by 
                                striking ``or'';
                                    (II) in subparagraph (G), by 
                                striking ``the fiscal year 1989 and 
                                each fiscal year thereafter;'' and 
                                inserting ``each of the fiscal years 
                                1989 through 1995, or''; and
                                    (III) by inserting after 
                                subparagraph (G), the following new 
                                subparagraph:
                    ``(H) $100,039,000 with respect to fiscal year 1996 
                and each fiscal year thereafter;'';
                            (iii) in paragraph (2)--
                                    (I) in subparagraph (F), by 
                                striking ``or'';
                                    (II) in subparagraph (G), by 
                                striking ``the fiscal year 1989 and 
                                each fiscal year thereafter;'' and 
                                inserting ``each of the fiscal years 
                                1989 through 1995, or''; and
                                    (III) by inserting after 
                                subparagraph (G), the following new 
                                subparagraph:
                    ``(H) $3,489,000 with respect to fiscal year 1996 
                and each fiscal year thereafter;''; and
                            (iv) in paragraph (3)--
                                    (I) in subparagraph (F), by 
                                striking ``or'';
                                    (II) in subparagraph (G), by 
                                striking ``the fiscal year 1989 and 
                                each fiscal year thereafter.'' and 
                                inserting ``each of the fiscal years 
                                1989 through 1995, or''; and
                                    (III) by inserting after 
                                subparagraph (G), the following new 
                                subparagraph:
                    ``(H) $4,593,000 with respect to fiscal year 1996 
                and each fiscal year thereafter.''; and
                    (B) in subsection (d), by striking ``(exclusive of 
                any amounts'' and all that follows through ``section 
                403(k) applies)''.
    (g) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11), as in effect without regard to the 
amendment made by section 301 of the Social Security Amendments of 1972 
(42 U.S.C. 1382 note), is amended by striking ``aid under the State 
plan approved'' and inserting ``assistance under a State program 
funded''.
    (i) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to 
read as follows: ``(A) a State program funded under part A of title 
IV,''.

SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
              RELATED PROVISIONS.

    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is 
amended--
            (1) in the second sentence of subsection (a), by striking 
        ``plan approved'' and all that follows through ``title IV of 
        the Social Security Act'' and inserting ``program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) that the Secretary determines complies with standards 
        established by the Secretary that ensure that the standards 
        under the State program are comparable to or more restrictive 
        than those in effect on June 1, 1995'';
            (2) in subsection (d)(5)--
                    (A) by striking ``assistance to families with 
                dependent children'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking paragraph (13) and redesignating 
                paragraphs (14), (15), and (16) as paragraphs (13), 
                (14), and (15), respectively;
            (3) in subsection (j), by striking ``plan approved under 
        part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``program funded under part A of title IV of the Act 
        (42 U.S.C. 601 et seq.) that the Secretary determines complies 
        with standards established by the Secretary that ensure that 
        the standards under the State program are comparable to or more 
        restrictive than those in effect on June 1, 1995''.
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State plan 
        approved'' and inserting ``the State program funded'';
            (2) in subsection (e)--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``benefits under a State 
                program funded''; and
                    (B) by inserting before the semicolon the 
                following: ``that the Secretary determines complies 
                with standards established by the Secretary that ensure 
                that the standards under the State program are 
                comparable to or more restrictive than those in effect 
                on June 1, 1995''; and
            (3) by adding at the end the following new subsection:
    ``(i) Notwithstanding any other provision of this Act, a household 
may not receive benefits under this Act as a result of the household's 
eligibility under a State program funded under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.), unless the Secretary 
determines that any household with income above 130 percent of the 
poverty guidelines is not eligible for the program.''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended 
by striking ``State plans under the Aid to Families with Dependent 
Children Program under'' and inserting ``State programs funded under 
part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), by 
        striking ``to aid to families with dependent children under 
        part A of title IV of the Social Security Act'' and inserting 
        ``or are receiving assistance under a State program funded 
        under part A of title IV of the Social Security Act (42 U.S.C. 
        601 et seq.)''; and
            (2) in subsection (b)(3), by adding at the end the 
        following new subparagraph:
             ``(I) The Secretary may not grant a waiver under this 
        paragraph on or after October 1, 1995. Any reference in this 
        paragraph to a provision of title IV of the Social Security Act 
        shall be deemed to be a reference to such provision as in 
        effect on September 30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking ``operating--'' and 
        all that follows through ``(ii) any other'' and inserting 
        ``operating any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1) A household'' and 
                        inserting ``(b) A household''; and
                            (ii) in subparagraph (B), by striking 
                        ``training program'' and inserting 
                        ``activity'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) through (F) 
                as paragraphs (1) through (6), respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act 
of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking 
``the program for aid to families with dependent children'' and 
inserting ``the State program funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C)(ii)(II)--
                            (i) by striking ``program for aid to 
                        families with dependent children'' and 
                        inserting ``State program funded''; and
                            (ii) by inserting before the period at the 
                        end the following: ``that the Secretary 
                        determines complies with standards established 
                        by the Secretary that ensure that the standards 
                        under the State program are comparable to or 
                        more restrictive than those in effect on June 
                        1, 1995''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``an AFDC 
                                assistance unit (under the aid to 
                                families with dependent children 
                                program authorized'' and inserting ``a 
                                family (under the State program 
                                funded''; and
                                    (II) by striking ``, in a State'' 
                                and all that follows through 
                                ``9902(2)))'' and inserting ``that the 
                                Secretary determines complies with 
                                standards established by the Secretary 
                                that ensure that the standards under 
                                the State program are comparable to or 
                                more restrictive than those in effect 
                                on June 1, 1995''; and
                            (ii) in subparagraph (B), by striking ``aid 
                        to families with dependent children'' and 
                        inserting ``assistance under the State program 
funded under part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) that the Secretary determines complies with standards 
established by the Secretary that ensure that the standards under the 
State program are comparable to or more restrictive than those in 
effect on June 1, 1995''; and
            (2) in subsection (d)(2)(C)--
                    (A) by striking ``program for aid to families with 
                dependent children'' and inserting ``State program 
                funded''; and
                    (B) by inserting before the period at the end the 
                following: ``that the Secretary determines complies 
                with standards established by the Secretary that ensure 
                that the standards under the State program are 
                comparable to or more restrictive than those in effect 
                on June 1, 1995''.
    (h) Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) 
is amended--
            (1) in subsection (d)(2)(A)(ii)(II)--
                    (A) by striking ``program for aid to families with 
                dependent children established'' and inserting ``State 
                program funded''; and
                    (B) by inserting before the semicolon the 
                following: ``that the Secretary determines complies 
                with standards established by the Secretary that ensure 
                that the standards under the State program are 
                comparable to or more restrictive than those in effect 
                on June 1, 1995'';
            (2) in subsection (e)(4)(A), by striking ``program for aid 
        to families with dependent children'' and inserting ``State 
        program funded''; and
            (3) in subsection (f)(1)(C)(iii), by striking ``aid to 
        families with dependent children,'' and inserting ``State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) and with the''.

SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (Public Law 94-566; 90 Stat. 2689) is amended to 
read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)), or
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is repealed.
    (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is repealed.
    (f) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is repealed.
    (g) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved'' and inserting 
        ``assistance under a State program funded''; and
            (2) in subsection (c), by striking ``aid to families with 
        dependent children in the State under a State plan approved'' 
        and inserting ``assistance in the State under a State program 
        funded''.
    (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
        striking ``(Aid to Families with Dependent Children)''; and
            (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by 
        striking ``aid to families with dependent children under a 
        State plan approved'' and inserting ``assistance under a State 
        program funded''.
    (i) The Carl D. Perkins Vocational and Applied Technology Education 
Act (20 U.S.C. 2301 et seq.) is amended--
            (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 
        2341(d)(3)(A)(ii)), by striking ``the program for aid to 
        dependent children'' and inserting ``the State program 
        funded'';
            (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
        striking ``the program for aid to families with dependent 
        children'' and inserting ``the State program funded''; and
            (3) in section 521(14)(B)(iii) (20 U.S.C. 
        2471(14)(B)(iii)), by striking ``the program for aid to 
        families with dependent children'' and inserting ``the State 
        program funded''.
    (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2701 et seq.) is amended--
            (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
        striking ``Aid to Families with Dependent Children Program'' 
        and inserting ``State program funded under part A of title IV 
        of the Social Security Act'';
            (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
        striking ``the program of aid to families with dependent 
        children under a State plan approved under'' and inserting ``a 
        State program funded under part A of''; and
            (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
                    (A) in subparagraph (A)(xi), by striking ``Aid to 
                Families with Dependent Children benefits'' and 
                inserting ``assistance under a State program funded 
                under part A of title IV of the Social Security Act''; 
                and
                    (B) in subparagraph (B)(viii), by striking ``Aid to 
                Families with Dependent Children'' and inserting 
                ``assistance under the State program funded under part 
                A of title IV of the Social Security Act''.
    (k) Chapter VII of title I of Public Law 99-88 (25 U.S.C. 13d-1) is 
amended to read as follows: ``Provided further, That general assistance 
payments made by the Bureau of Indian Affairs shall be made--
            ``(1) after April 29, 1985, and before October 1, 1995, on 
        the basis of Aid to Families with Dependent Children (AFDC) 
        standards of need; and
            ``(2) on and after October 1, 1995, on the basis of 
        standards of need established under the State program funded 
        under part A of title IV of the Social Security Act,
except that where a State ratably reduces its AFDC or State program 
payments, the Bureau shall reduce general assistance payments in such 
State by the same percentage as the State has reduced the AFDC or State 
program payment.''.
    (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is 
amended--
            (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking 
        all that follows ``agency as'' and inserting ``being eligible 
        for financial assistance under part A of title IV of the Social 
        Security Act and as having continually received such financial 
assistance during the 90-day period which immediately precedes the date 
on which such individual is hired by the employer.'';
            (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by 
        striking ``eligibility for aid or services,'' and all that 
        follows through ``children approved'' and inserting 
        ``eligibility for assistance, or the amount of such assistance, 
        under a State program funded'';
            (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 
        6103(l)(7)(D)(i)), by striking ``aid to families with dependent 
        children provided under a State plan approved'' and inserting 
        ``a State program funded'';
            (4) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
        by striking ``(relating to aid to families with dependent 
        children)''; and
            (5) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under a State program funded under part 
        A of title IV of the Social Security Act''.
    (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is 
amended by striking ``State plan approved under part A of title IV'' 
and inserting ``State program funded under part A of title IV''.
    (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
            (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by 
        striking ``(42 U.S.C. 601 et seq.)'';
            (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
        striking ``State aid to families with dependent children 
        records,'' and inserting ``records collected under the State 
        program funded under part A of title IV of the Social Security 
        Act,'';
            (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
                    (A) by striking ``the JOBS program'' and inserting 
                ``the work activities required under title IV of the 
                Social Security Act''; and
                    (B) by striking the second sentence;
            (4) in section 123(c) (29 U.S.C. 1533(c))--
                    (A) in paragraph (1)(E), by repealing clause (vi); 
                and
                    (B) in paragraph (2)(D), by repealing clause (v);
            (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by 
        striking ``, including recipients under the JOBS program'';
            (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
        U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the JOBS 
        program)'' each place it appears;
            (7) in section 205(a) (29 U.S.C. 1605(a)), by striking 
        paragraph (4) and inserting the following:
            ``(4) the portions of title IV of the Social Security Act 
        relating to work activities;'';
            (8) in section 253 (29 U.S.C. 1632)--
                    (A) in subsection (b)(2), by repealing subparagraph 
                (C); and
                    (B) in paragraphs (1)(B) and (2)(B) of subsection 
                (c), by striking ``the JOBS program or'' each place it 
                appears;
            (9) in section 264 (29 U.S.C. 1644)--
                    (A) in subparagraphs (A) and (B) of subsection 
                (b)(1), by striking ``(such as the JOBS program)'' each 
                place it appears; and
                    (B) in subparagraphs (A) and (B) of subsection 
                (d)(3), by striking ``and the JOBS program'' each place 
                it appears;
            (10) in section 265(b) (29 U.S.C. 1645(b)), by striking 
        paragraph (6) and inserting the following:
            ``(6) the portion of title IV of the Social Security Act 
        relating to work activities;'';
            (11) in the second sentence of section 429(e) (29 U.S.C. 
        1699(e)), by striking ``and shall be in an amount that does not 
        exceed the maximum amount that may be provided by the State 
        pursuant to section 402(g)(1)(C) of the Social Security Act (42 
        U.S.C. 602(g)(1)(C))'';
            (12) in section 454(c) (29 U.S.C. 1734(c)), by striking 
        ``JOBS and'';
            (13) in section 455(b) (29 U.S.C. 1735(b)), by striking 
        ``the JOBS program,'';
            (14) in section 501(1) (29 U.S.C. 1791(1)), by striking 
        ``aid to families with dependent children under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``assistance under the State program funded under 
        part A of title IV of the Social Security Act'';
            (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded'';
            (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded''; and
            (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
                    (A) in clause (v), by striking the semicolon and 
                inserting ``; and''; and
                    (B) by striking clause (vi).
    (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is 
amended to read as follows:
                            ``(iv) assistance under a State program 
                        funded under part A of title IV of the Social 
                        Security Act''.
    (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read 
as follows:
                            ``(i) assistance under the State program 
                        funded under part A of title IV of the Social 
                        Security Act;''.
    (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 
602 note) is amended--
            (1) by striking ``(A)''; and
            (2) by striking subparagraphs (B) and (C).
    (r) The Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900 et seq.)) is amended--
            (1) in section 255(h) (2 U.S.C. 905(h), by striking ``Aid 
        to families with dependent children (75-0412-0-1-609);'' and 
        inserting ``Block grants to States for temporary assistance for 
        needy families;''; and
            (2) in section 256 (2 U.S.C. 906)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsection (l) as subsection 
                (k).
    (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
amended--
            (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
        under a State plan approved under'' each place it appears and 
        inserting ``assistance under a State program funded under'';
            (2) in section 245A(h) (8 U.S.C. 1255a(h))--
                    (A) in paragraph (1)(A)(i), by striking ``program 
                of aid to families with dependent children'' and 
                inserting ``State program of assistance''; and
                    (B) in paragraph (2)(B), by striking ``aid to 
                families with dependent children'' and inserting 
                ``assistance under a State program funded under part A 
                of title IV of the Social Security Act''; and
            (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
        ``State plan approved'' and inserting ``State program funded''.
    (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 
9835(a)(4)(B)(i)) is amended by striking ``program of aid to families 
with dependent children under a State plan approved'' and inserting 
``State program of assistance funded''.
    (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed.
    (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work 
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as 
follows:
                    ``(E) part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.) relating to work activities;''.

SEC. 109. STUDY OF EFFECT OF WELFARE REFORM ON GRANDPARENTS AS PRIMARY 
              CAREGIVERS.

    (a) In General.--The Secretary of Health and Human Services 
(hereafter in this section referred to as the ``Secretary'') shall 
conduct a study evaluating the impact of amendments made by this Act on 
grandparents who have assumed the responsibility of providing care 
to their grandchildren. In such study, the Secretary shall identify 
barriers to participation in public programs including inconsistent 
policies, standards, and definitions used by programs and agencies in 
the administration of medicaid, assistance under a State program funded 
under part A of title IV of the Social Security Act, child support 
enforcement, and foster care programs on grandparents who have assumed 
the care-giving role for children whose natural parents are unable to 
provide care.
    (b) Report.--Not later than December 31, 1997, the Secretary shall 
submit a report setting forth the findings of the study described in 
subsection (a) to the Committee on Ways and Means and the Committee on 
Economic and Educational Opportunities of the House of Representatives 
and the Committee on Finance, the Committee on Labor and Human 
Resources, and the Special Committee on Aging of the Senate. The report 
shall include such recommendations for administrative or legislative 
changes as the Secretary considers appropriate.

SEC. 110. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

    (a) In General.--Whenever an organization that accepts Federal 
funds under this Act or the amendments made by this Act makes any 
communication that in any way intends to promote public support or 
opposition to any policy of a Federal, State, or local government 
through any broadcasting station, newspaper, magazine, outdoor 
advertising facility, direct mailing, or any other type of general 
public advertising, such communication shall state the following: 
``This was prepared and paid for by an organization that accepts 
taxpayer dollars.''.
    (b) Failure To Comply.--If an organization makes any communication 
described in subsection (a) and fails to provide the statement required 
by that subsection, such organization shall be ineligible to receive 
Federal funds under this Act or the amendments made by this Act.
    (c) Definition.--For purposes of this section, the term 
``organization'' means an organization described in section 501(c) of 
the Internal Revenue Code of 1986.
    (d) Effective Dates.--This section shall take effect--
            (1) with respect to printed communications 1 year after the 
        date of enactment of this Act; and
            (2) with respect to any other communication on the date of 
        enactment of this Act.

SEC. 110A. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-
              INCOME INDIVIDUALS PROGRAM.

    Section 505 of the Family Support Act of 1988 (42 U.S.C. 1315 note) 
is amended--
            (1) in the heading, by striking ``demonstration'';
            (2) by striking ``demonstration'' each place it appears;
            (3) in subsection (a), by striking ``in each of fiscal 
        years'' and all that follows through ``10'' and inserting 
        ``shall enter into agreements with'';
            (4) in subsection (b)(3), by striking ``aid to families 
        with dependent children under part A of title IV of the Social 
        Security Act'' and inserting ``assistance under the State 
        program funded part A of title IV of the Social Security Act in 
        the State in which the individual resides'';
            (5) in subsection (c)--
                    (A) in paragraph (1)(C), by striking ``aid to 
                families with dependent children under part A of title 
                IV of the Social Security Act'' and inserting 
                ``assistance under the State program funded part A of 
                title IV of the Social Security Act'';
                    (B) in paragraph (2), by striking ``aid to families 
                with dependent children under title IV of such Act'' 
                and inserting ``assistance under the State program 
                funded part A of title IV of the Social Security Act'';
            (6) in subsection (d), by striking ``job opportunities and 
        basic skills training program (as provided for under title IV 
        of the Social Security Act'' and inserting ``the State program 
        funded under part A of title IV of the Social Security Act''; 
        and
            (7) by striking subsections (e) through (g) and inserting 
        the following:
    ``(e) Authorization of Appropriations.--For the purpose of 
conducting projects under this section, there is authorized to be 
appropriated an amount not to exceed $25,000,000 for any fiscal 
year.''.

SEC. 110B. DEMONSTRATION PROJECTS FOR SCHOOL UTILIZATION.

    (a) Findings.--It is the goal of the United States that children 
grow to be self-sufficient citizens, that parents equip themselves to 
provide the best parental care and guidance to their children, and that 
welfare dependency, crime, and the deterioration of neighborhoods be 
eliminated. It will contribute to these goals to increase the level of 
parents' involvement in their children's school and other activities, 
to increase the amount of time parents spend with or in close proximity 
to their children, to increase the portion of the day and night when 
children are in a safe and healthy environment and not exposed to 
unfavorable influences, to increase the opportunities for children to 
participate in safe, healthy, and enjoyable extra-curricular and 
organized developmental and recreational activities, and to make more 
accessible the opportunities for parents, especially those dependent on 
public assistance, to increase and enhance their parenting and living 
skills. All of these contributions can be facilitated by establishing 
the neighborhood public school as a focal point for such activities and 
by extending the hours of the day in which its facilities are available 
for such activities.
    (b) Grants.--The Secretary of Education (hereafter in this section 
referred to as the ``Secretary'') shall make demonstration grants as 
provided in subsection (c) to States to enable them to increase the 
number of hours during each day when existing public school facilities 
are available for use for the purposes set forth in subsection (d).
    (c) Selection of States.--The Secretary shall make grants to not 
more than 5 States for demonstration projects in accordance with this 
section. Each State shall select the number and location of schools 
based on the amount of funds it deems necessary for a school properly 
to achieve the goals of this program. The schools selected must have a 
significant percentage of students receiving benefits under part A of 
title IV of the Social Security Act. No more than 2 percent of the 
grant to any State shall be used for administrative expenses of any 
kind by any entity (except that none of the activities set forth in 
paragraphs (1) and (2) of subsection (d) shall be considered an 
administrative activity the expenses for which are limited by this 
subsection).
    (d) Use of Funds.--The grants made under subsection (b), in order 
that school facilities can be more fully utilized, shall be used to 
provide funding for, among other things--
            (1) extending the length of the school day, expanding the 
        scope of student programs offered before and after pre-existing 
        school hours, enabling volunteers and parents or professionals 
        paid from other sources to teach, tutor, coach, organize, 
        advise, or monitor students before and after pre-existing 
        school hours, and providing security, supplies, utilities, and 
        janitorial services before and after pre-existing school hours 
        for these programs,
            (2) making the school facilities available for community 
        and neighborhood clubs, civic associations and organizations, 
        Boy and Girl Scouts and similar organizations, adult education 
        classes, organized sports, parental education classes, and 
        other educational, recreational, and social activities.
None of the funds provided under this section can be used to supplant 
funds already provided to a school facility for services, equipment, 
personnel, or utilities nor can funds be used to pay costs associated 
with operating school facilities during hours those facilities are 
already available for student or community use.
    (e) Applications.--
            (1) In general.--The Governor of each State desiring to 
        conduct a demonstration project under this section shall 
        prepare and submit to the Secretary an application in such 
        manner and containing such information as the Secretary may 
        require. The Secretary shall actively encourage States to 
        submit such applications.
            (2) Approval.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section and shall approve 
        such applications in a number of States to be determined by the 
        Secretary (not to exceed 5), taking into account the overall 
        funding levels available under this section.
    (f) Duration.--A demonstration project under this section shall be 
conducted for not more than 4 years plus an additional time period of 
up to 12 months for final evaluation and reporting. The Secretary may 
terminate a project if the Secretary determines that the State 
conducting the project is not in substantial compliance with the terms 
of the application approved by the Secretary under this section.
    (g) Evaluation Plan.--
            (1) Standards.--Not later than 3 months after the date of 
        the enactment of this section, the Secretary shall develop 
        standards for evaluating the effectiveness of each 
        demonstration project in contributing toward meeting the 
        objectives set forth in subsection (a), which shall include the 
        requirement that an independent expert entity selected by the 
        Secretary provide an evaluation of all demonstration projects, 
        which evaluations shall be included in the appropriate State's 
        annual and final reports to the Secretary under subsection 
        (h)(1).
            (2) Submission of plan.--Each State conducting a 
        demonstration project under this section shall submit an 
        evaluation plan (meeting the standards developed by the 
        Secretary under paragraph (1)) to the Secretary not later than 
        90 days after the State is notified of the Secretary's approval 
        for such project. A State shall not receive any Federal funds 
        for the operation of the demonstration project until the 
        Secretary approves such evaluation plan.
    (h) Reports.--
            (1) State.--A State that conducts a demonstration project 
        under this section shall prepare and submit to the Secretary 
        annual and final reports in accordance with the State's 
        evaluation plan under subsection (g)(2) for such demonstration 
        project.
            (2) Secretary.--The Secretary shall prepare and submit to 
        the Congress annual reports concerning each demonstration 
        project under this Act.
    (i) Authorizations.--
            (1) Grants.--There are authorized to be appropriated for 
        grants under subsection (b) for each of fiscal years 1996, 
        1997, 1998, 1999, and 2000, $10,000,000.
            (2) Administration.--There are authorized to be 
        appropriated $1,000,000 for each of fiscal years 1996, 1997, 
        1998, 1999, and 2000 for the administration of this section by 
        the Secretary, including development of standards and 
        evaluation of all demonstration projects by an independent 
        expert entity under subsection (g)(1).

SEC. 110C. CORRECTIVE COMPLIANCE PLAN.

    (a) In General.--
            (1) Notification of violation.--Notwithstanding any other 
        provision of law, the Federal Government shall, prior to 
        assessing a penalty against a State under any program 
        established or modified under this Act, notify the State of the 
        violation of law for which such penalty would be assessed and 
        allow the State the opportunity to enter into a corrective 
        compliance plan in accordance with this section which outlines 
        how the State will correct any violations for which such 
        penalty would be assessed and how the State will insure 
        continuing compliance with the requirements of such program.
            (2) 60-day period to propose a corrective compliance 
        plan.--Any State notified under paragraph (1) shall have 60 
        days in which to submit to the Federal Government a corrective 
        compliance plan to correct any violations described in such 
        paragraph.
            (3) Acceptance of plan.--The Federal Government shall have 
        60 days to accept or reject the State's corrective compliance 
        plan and may consult with the State during this period to 
        modify the plan. If the Federal Government does not accept or 
        reject the corrective compliance plan during the period, the 
        corrective compliance plan shall be deemed to be accepted.
    (b) Failure to Correct.--If a corrective compliance plan is 
accepted by the Federal Government, no penalty shall be imposed with 
respect to a violation described in subsection (a) if the State 
corrects the violation pursuant to the plan. If a State has not 
corrected the violation in a timely manner under the plan, some or all 
of the penalty shall be assessed.

SEC. 110D. PARENTAL RESPONSIBILITY CONTRACTS.

  (a) Assessment.--Notwithstanding any other provision of, or amendment 
made by, this title, each State to which a grant is made under section 
403 of the Social Security Act shall provide that the State agency, 
through a case manager, shall make an initial assessment of the 
education level, parenting skills, and history of parenting activities 
and involvement of each parent who is applying for financial assistance 
under the plan.
  (b) Parental Responsibility Contracts.--On the basis of the 
assessment made under subsection (a) with respect to each parent 
applicant, the case manager, in consultation with the parent applicant 
(hereafter in this subsection referred to as the ``client'') and, if 
possible, the client's spouse if one is present, shall develop a 
parental responsibility contract for the client, which meets the 
following requirements:
          (1) Sets forth the obligations of the client, including all 
        of the following the case manager believes are within the 
        ability and capacity of the client, are not incompatible with 
        the employment or school activities of the client, and are not 
        inconsistent with each other in the client's case or with the 
        well being of the client's children:
                  (A) Attend school, if necessary, and maintain certain 
                grades and attendance.
                  (B) Keep school-age children of the client in school.
                  (C) Immunize children of the client.
                  (D) Attend parenting and money management classes.
                  (E) Participate in parent and teacher associations 
                and other activities intended to involve parents in 
                their children's school activities and in the affairs 
                of their children's school.
                  (F) Attend school activities with their children 
                where attendance or participation by both children and 
                parents is appropriate.
                  (G) Undergo appropriate substance abuse treatment 
                counseling.
                  (H) Any other appropriate activity, at the option of 
                the State.
          (2) Provides that the client shall accept any bona fide offer 
        of unsubsidized full-time employment, unless the client has 
        good cause for not doing so.
  (c) Penalties for Noncompliance With Parental Responsibility 
Contract.--
          (1) In general.--Except as provided in paragraph (2), the 
        following penalties shall apply:
                  (A) Progressive reductions in assistance for 1st and 
                2nd acts of noncompliance.--The State plan shall 
                provide that the amount of assistance otherwise payable 
                under this part to a family that includes a client who, 
                with respect to a parental responsibility contract 
                signed by the client, commits an act of noncompliance 
                without good cause, shall be reduced by--
                          (i) 33 percent for the 1st such act of 
                        noncompliance; or
                          (ii) 66 percent for the 2nd such act of 
                        noncompliance.
                  (B) Denial of assistance for 3rd and subsequent acts 
                of noncompliance.--The State shall provide that in the 
                case of the 3rd or subsequent such act of 
                noncompliance, the family of which the client is a 
                member shall not thereafter be eligible for assistance 
                under this part.
                  (C) Length of penalties.--The penalty for an act of 
                noncompliance shall not exceed the greater of--
                          (i) in the case of--
                                  (I) the 1st act of noncompliance, 1 
                                month,
                                  (II) the 2nd act of noncompliance, 3 
                                months, or
                                  (III) the 3rd or subsequent act of 
                                noncompliance, 6 months; or
                          (ii) the period ending with the cessation of 
                        such act of noncompliance.
                  (D) Denial of assistance to adults refusing to accept 
                a bona fide offer of employment.--The State plan shall 
                provide that if an unemployed individual who has 
                attained 18 years of age refuses to accept a bona fide 
                offer of employment without good cause, such act of 
                noncompliance shall be considered a 3rd or subsequent 
                act of noncompliance.
          (2) State flexibility.--The State plan may provide for 
        different penalties than those specified in paragraph (1).

SEC. 110E. CORRECTIVE ACTION PLAN.

    (a) In General.--
            (1) Notification of violation.--Notwithstanding any other 
        provision of law, the Federal Government shall, prior to 
        assessing a penalty against a State under any program 
        established or modified under this Act, notify the State of the 
        violation of law for which such penalty would be assessed and 
        allow the State the opportunity to enter into a corrective 
        action plan in accordance with this section.
            (2) 60-day period to propose a corrective action plan.--Any 
        State notified under paragraph (1) shall have 60 days in which 
        to submit to the Federal Government a corrective action plan to 
        correct any violations described in such paragraph.
            (3) Acceptance of plan.--The Federal Government shall have 
        60 days to accept or reject the State's corrective action plan 
        and may consult with the State during this period to modify the 
        plan. If the Federal Government does not accept or reject the 
        corrective action plan during the period, the corrective action 
        plan shall be deemed to be accepted.
    (b) 90-Day Grace Period.--If a corrective action plan is accepted 
by the Federal Govenment, no penalty shall be imposed with respect to a 
violation described in subsection (a) if the State corrects the 
violation pursuant to the plan within 90 days after the date on which 
the plan is accepted (or within such other period specified in the 
plan).

SEC. 111. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Health and Human Services, in consultation, as 
appropriate, with the heads of other Federal agencies, shall submit to 
the appropriate committees of Congress a legislative proposal providing 
for such technical and conforming amendments in the law as are required 
by the provisions of this Act.

SEC. 112. EFFECTIVE DATE; TRANSITION RULE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 1995.
    (b) Transition Rule.--
            (1) State option to continue afdc program.--
                    (A) 9-month extension.--A State may continue a 
                State program under parts A and F of title IV of the 
                Social Security Act, as in effect on September 30, 1995 
                (for purposes of this paragraph, the ``State AFDC 
                program'') until June 30, 1996.
                    (B) Reduction of fiscal year 1996 grant.--In the 
                case of any State opting to continue the State AFDC 
                program pursuant to subparagraph (A), the State family 
                assistance grant paid to such State under section 
                403(a) of the Social Security Act (as added by section 
                101 and as in effect on and after October 1, 1995) for 
                fiscal year 1996 (after the termination of the State 
                AFDC program) shall be reduced by an amount equal to 
                the total Federal payment to such State under section 
                403 of the Social Security Act (as in effect on 
                September 30, 1995) for such fiscal year.
            (2) Claims, actions, and proceedings.--The amendments made 
        by this title shall not apply with respect to--
                    (A) powers, duties, functions, rights, claims, 
                penalties, or obligations applicable to aid, 
                assistance, or services provided before the effective 
                date of this title under the provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized before such 
                date to be commenced, under such provisions.
            (3) Closing out account for those programs terminated or 
        substantially modified by this title.--In closing out accounts, 
        Federal and State officials may use scientifically acceptable 
        statistical sampling techniques. Claims made under programs 
        which are repealed or substantially amended in this title and 
        which involve State expenditures in cases where assistance or 
        services were provided during a prior fiscal year, shall be 
        treated as expenditures during fiscal year 1995 for purposes of 
        reimbursement even if payment was made by a State on or after 
        October 1, 1995. States shall complete the filing of all claims 
        no later than September 30, 1997. Federal department heads 
        shall--
                    (A) use the single audit procedure to review and 
                resolve any claims in connection with the closeout of 
                programs, and
                    (B) reimburse States for any payments made for 
                assistance or services provided during a prior fiscal 
                year from funds for fiscal year 1995, rather than the 
                funds authorized by this title.
    (c) Sunset.--The amendment made by section 101(b) shall be 
effective only during the 5-year period beginning on October 1, 1995.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

                  Subtitle A--Eligibility Restrictions

SEC. 201. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY REASON OF 
              DISABILITY TO DRUG ADDICTS AND ALCOHOLICS.

    (a) In General.--Section 1614(a)(3) (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) Representative Payee Requirements.--
            (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C. 
        1383(a)(2)(A)(ii)(II)) is amended to read as follows:
    ``(II) In the case of an individual eligible for benefits under 
this title by reason of disability, if such individual also has an 
alcoholism or drug addiction condition (as determined by the 
Commissioner of Social Security), the payment of such benefits to a 
representative payee shall be deemed to serve the interest of the 
individual. In any case in which such payment is so deemed under this 
subclause to serve the interest of an individual, the Commissioner 
shall include, in the individual's notification of such eligibility, a 
notice that such alcoholism or drug addiction condition accompanies the 
disability upon which such eligibility is based and that the 
Commissioner is therefore required to pay the individual's benefits to 
a representative payee.''.
            (2) Section 1631(a)(2)(B)(vii) (42 U.S.C. 
        1383(a)(2)(B)(vii)) is amended by striking ``eligible for 
        benefits'' and all that follows through ``is disabled'' and 
        inserting ``described in subparagraph (A)(ii)(II)''.
            (3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C. 
        1383(a)(2)(B)(ix)(II)) is amended by striking all that follows 
        ``15 years, or'' and inserting ``described in subparagraph 
        (A)(ii)(II)''.
            (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C. 
        1383(a)(2)(D)(i)(II)) is amended by striking ``eligible for 
        benefits'' and all that follows through ``is disabled'' and 
        inserting ``described in subparagraph (A)(ii)(II)''.
    (c) Treatment Services for Individuals With a Substance Abuse 
Condition.--
            (1) In general.--Title XVI (42 U.S.C. 1381 et seq.) is 
        amended by adding at the end the following new section:

 ``treatment services for individuals with a substance abuse condition

    ``Sec. 1636. (a) In the case of any individual eligible for 
benefits under this title by reason of disability who is identified as 
having a substance abuse condition, the Commissioner of Social Security 
shall make provision for referral of such individual to the appropriate 
State agency administering the State plan for substance abuse treatment 
services approved under subpart II of part B of title XIX of the Public 
Health Service Act (42 U.S.C. 300x-21 et seq.).
    ``(b) No individual described in subsection (a) shall be an 
eligible individual or eligible spouse for purposes of this title if 
such individual refuses without good cause to accept the referred 
services described under subsection (a).
            (2) Conforming amendment.--Section 1614(a)(4) (42 U.S.C. 
        1382c(a)(4)) is amended by inserting after the second sentence 
        the following new sentence: ``For purposes of the preceding 
        sentence, any individual identified by the Commissioner 
as having a substance abuse condition shall seek and complete 
appropriate treatment as needed.''.
    (d) Conforming Amendments.--
            (1) Section 1611(e) (42 U.S.C. 1382(e)) is amended by 
        striking paragraph (3).
            (2) Section 1634 (42 U.S.C. 1383c) is amended by striking 
        subsection (e).
            (3) 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 it appears;
                    (B) by striking ``and'' the 3rd place it 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''.
    (e) Supplemental Funding for Alcohol and Substance Abuse Treatment 
Programs.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated to 
        supplement State and Tribal programs funded under section 1933 
        of the Public Health Service Act (42 U.S.C. 300x-33), 
        $50,000,000 for each of the fiscal years 1997 and 1998.
            (2) Additional funds.--Amounts appropriated under paragraph 
        (1) shall be in addition to any funds otherwise appropriated 
        for allotments under section 1933 of the Public Health Service 
        Act (42 U.S.C. 300x-33) and shall be allocated pursuant to such 
        section 1933.
            (3) Use of funds.--A State or Tribal government receiving 
        an allotment under this subsection shall consider as 
        priorities, for purposes of expending funds allotted under this 
        subsection, activities relating to the treatment of the abuse 
        of alcohol and other drugs.

SEC. 202. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI BENEFITS.

    Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a)) is amended--
            (1) in subparagraph (B)(i), by striking ``either'' and all 
        that follows through ``, or'' and inserting ``(I) a citizen; 
        (II) a noncitizen 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 for a period of 
        not more than 5 years after the date of arrival into the United 
        States; (III) a noncitizen who is admitted to the United States 
        as a refugee under section 207 of such Act for not more than 
        such 5-year period; (IV) a noncitizen, lawfully present in any 
        State (or any territory or possession of the United States), 
        who is a veteran (as defined in section 101 of title 38, United 
        States Code) with a discharge characterized as an honorable 
        discharge and not on account of alienage or who is the spouse 
        or unmarried dependent child of such veteran; or (V) a 
        noncitizen who has worked sufficient calendar quarters of 
        coverage to be a fully insured individual for benefits under 
        title II, or''; and
            (2) by adding at the end the following new flush sentence:
``For purposes of subparagraph (B)(i)(IV), the determination of whether 
a noncitizen is lawfully present in the United States shall be made in 
accordance with regulations of the Attorney General. A noncitizen shall 
not be considered to be lawfully present in the United States for 
purposes of this title merely because the noncitizen may be considered 
to be permanently residing in the United States under color of law for 
purposes of any particular program.''.

SEC. 203. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND TO 
              HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO 
              OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.

    Section 1614(a) (42 U.S.C. 1382c(a)) is amended by adding at the 
end the following new paragraph:
    ``(5) An individual shall not be considered an eligible individual 
for purposes of this title during the 10-year period beginning on the 
date the individual is convicted in Federal or State court of having 
made a fraudulent statement or representation with respect to the place 
of residence of the individual in order to receive assistance 
simultaneously from 2 or more States under programs that are funded 
under part A of title IV, title XIX, or the Food Stamp Act of 1977, or 
benefits in 2 or more States under the supplemental security income 
program under title XVI.''.

SEC. 204. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND 
              PAROLE VIOLATORS.

    (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by 
section 201(c)(1), is amended by inserting after paragraph (2) the 
following new paragraph:
    ``(3) A person shall not be an eligible individual or eligible 
spouse for purposes of this title with respect to any month if during 
such month the person is--
            ``(A) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which the person flees, for a crime, or an attempt to commit a 
        crime, which is a felony under the laws of the place from which 
        the person flees, or which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State; or
            ``(B) violating a condition of probation or parole imposed 
        under Federal or State law.''.
    (b) Exchange of Information With Law Enforcement Agencies.--Section 
1631(e) (42 U.S.C. 1383(e)) is amended by inserting after paragraph (3) 
the following new paragraph:
    ``(4) Notwithstanding any other provision of law, the Commissioner 
shall furnish any Federal, State, or local law enforcement officer, 
upon the request of the officer, with the current address, Social 
Security number, and photograph (if applicable) of any recipient of 
benefits under this title, if the officer furnishes the agency with the 
name of the recipient and notifies the agency that--
            ``(A) the recipient--
                    ``(i) is fleeing to avoid prosecution, or custody 
                or confinement after conviction, under the laws of the 
                place from which the person flees, for a crime, or an 
                attempt to commit a crime, which is a felony under the 
                laws of the place from which the person flees, or 
                which, in the case of the State of New Jersey, is a 
                high misdemeanor under the laws of such State;
                    ``(ii) is violating a condition of probation or 
                parole imposed under Federal or State law; or
                    ``(iii) has information that is necessary for the 
                officer to conduct the officer's official duties; and
            ``(B) the location or apprehension of the recipient is 
        within the officer's official duties.''.

SEC. 205. EFFECTIVE DATES; APPLICATION TO CURRENT RECIPIENTS.

    (a) Sections 201 and 202.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by sections 201 and 202 shall apply to 
        applicants for benefits for months beginning on or after the 
        date of the enactment of this Act, without regard to 
whether regulations have been issued to implement such amendments.
            (2) Application to current recipients.--
                    (A) Application and notice.--Notwithstanding any 
                other provision of law, in the case of an individual 
                who is receiving supplemental security income benefits 
                under title XVI of the Social Security Act as of the 
                date of the enactment of this Act and whose eligibility 
                for such benefits would terminate by reason of the 
                amendments made by section 201 or 202, such amendments 
                shall apply with respect to the benefits of such 
                individual, including such individual's treatment (if 
                any) provided pursuant to such title as in effect on 
                the day before the date of such enactment, for months 
                beginning on or after January 1, 1997, and the 
                Commissioner of Social Security shall so notify the 
                individual not later than 90 days after the date of the 
                enactment of this Act.
                    (B) Reapplication.--
                            (i) In general.--Not later than 120 days 
                        after the date of the enactment of this Act, 
                        each individual notified pursuant to 
                        subparagraph (A) who desires to reapply for 
                        benefits under title XVI of the Social Security 
                        Act, as amended by this title, shall reapply to 
                        the Commissioner of Social Security.
                            (ii) Determination of eligibility.--Not 
                        later than 1 year after the date of the 
                        enactment of this Act, the Commissioner of 
                        Social Security shall determine the eligibility 
                        of each individual who reapplies for benefits 
                        under clause (i) pursuant to the procedures of 
                        such title.
            (3) Additional application of payee representative 
        requirements.--The amendments made by section 201(b) shall also 
        apply--
                    (A) in the case of any individual who is receiving 
                supplemental security income benefits under title XVI 
                of the Social Security Act as of the date of the 
                enactment of this Act, on and after the date of such 
                individual's first continuing disability review 
                occurring after such date of enactment, and
                    (B) in the case of any individual who receives 
                supplemental security income benefits under title XVI 
                of the Social Security Act and has attained age 65, in 
                such manner as determined appropriate by the 
                Commissioner of Social Security.
    (b) Other Amendments.--The amendments made by sections 203 and 204 
shall take effect on the date of the enactment of this Act.

               Subtitle B--Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

    (a) Definition of Childhood Disability.--Section 1614(a)(3) (42 
U.S.C. 1382c(a)(3)), as amended by section 201(a), is amended--
            (1) in subparagraph (A), by striking ``An individual'' and 
        inserting ``Except as provided in subparagraph (C), an 
        individual'';
            (2) in subparagraph (A), by striking ``(or, in the case of 
        an individual under the age of 18, if he suffers from any 
        medically determinable physical or mental impairment of 
        comparable severity)'';
            (3) by redesignating subparagraphs (C) through (I) as 
        subparagraphs (D) through (J), respectively;
            (4) by inserting after subparagraph (B) the following new 
        subparagraph:
    ``(C) An individual under the age of 18 shall be considered 
disabled for the purposes of this title if that individual has a 
medically determinable physical or mental impairment, which results in 
marked and severe functional limitations, and which can be expected to 
result in death or which has lasted or can be expected to last for a 
continuous period of not less than 12 months.''; and
            (5) in subparagraph (F), as redesignated by paragraph (3), 
        by striking ``(D)'' and inserting ``(E)''.
    (b) Changes to Childhood SSI Regulations.--
            (1) Modification to medical criteria for evaluation of 
        mental and emotional disorders.--The Commissioner of Social 
        Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
        of appendix 1 to subpart P of part 404 of title 20, Code of 
        Federal Regulations, to eliminate references to maladaptive 
        behavior in the domain of personal/behavorial function.
            (2) Discontinuance of individualized functional 
        assessment.--The Commissioner of Social Security shall 
        discontinue the individualized functional assessment for 
        children set forth in sections 416.924d and 416.924e of title 
        20, Code of Federal Regulations.
    (c) Effective Date; Regulations; Application to Current 
Recipients.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to applicants for benefits for months beginning 
        on or after the date of the enactment of this Act, without 
        regard to whether regulations have been issued to implement 
        such amendments.
            (2) Regulations.--The Commissioner of Social Security shall 
        issue such regulations as the Commissioner determines to be 
        necessary to implement the amendments made by subsections (a) 
        and (b) not later than 60 days after the date of the enactment 
        of this Act.
            (3) Application to current recipients.--
                    (A) Eligibility determinations.--Not later than 1 
                year after the date of the enactment of this Act, the 
                Commissioner of Social Security shall redetermine the 
                eligibility of any individual under age 18 who is 
                receiving supplemental security income benefits based 
                on a disability under title XVI of the Social Security 
                Act as of the date of the enactment of this Act and 
                whose eligibility for such benefits may terminate by 
                reason of the amendments made by subsection (a) or (b). 
                With respect to any redetermination under this 
                subparagraph--
                            (i) section 1614(a)(4) of the Social 
                        Security Act (42 U.S.C. 1382c(a)(4)) shall not 
                        apply;
                            (ii) the Commissioner of Social Security 
                        shall apply the eligibility criteria for new 
                        applicants for benefits under title XVI of such 
                        Act;
                            (iii) the Commissioner shall give such 
                        redetermination priority over all continuing 
                        eligibility reviews and other reviews under 
                        such title; and
                            (iv) such redetermination shall be counted 
                        as a review or redetermination otherwise 
                        required to be made under section 208 of the 
                        Social Security Independence and Program 
                        Improvements Act of 1994 or any other provision 
                        of title XVI of the Social Security Act.
                    (B) Grandfather provision.--The amendments made by 
                subsections (a) and (b), and the redetermination under 
                subparagraph (A), shall only apply with respect to the 
                benefits of an individual described in subparagraph (A) 
                for months beginning on or after January 1, 1997.
                    (C) Notice.--Not later than 90 days after the date 
                of the enactment of this Act, the Commissioner of 
                Social Security shall notify an individual described in 
                subparagraph (A) of the provisions of this paragraph.

SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY 
              REVIEWS.

    (a) Continuing Disability Reviews Relating to Certain Children.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by 
section 211(a)(3), is amended--
            (1) by inserting ``(i)'' after ``(H)''; and
            (2) by adding at the end the following new clause:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall review in accordance with paragraph (4) the 
continued eligibility for benefits under this title of each individual 
who has not attained 18 years of age and is eligible for such benefits 
by reason of an impairment (or combination of impairments) which may 
improve (or, which is unlikely to improve, at the option of the 
Commissioner).
    ``(II) A parent or guardian of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this 
title.''.
    (b) Disability Eligibility Redeterminations Required for SSI 
Recipients Who Attain 18 Years of Age.--
            (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
        1382c(a)(3)(H)), as amended by subsection (a), is amended by 
        adding at the end the following new clause:
    ``(iii) If an individual is eligible for benefits under this title 
by reason of disability for the month preceding the month in which the 
individual attains the age of 18 years, the Commissioner shall 
redetermine such eligibility--
            ``(I) during the 1-year period beginning on the 
        individual's 18th birthday; and
            ``(II) by applying the criteria used in determining the 
        initial eligibility for applicants who have attained the age of 
        18 years.
With respect to a redetermination under this clause, paragraph (4) 
shall not apply and such redetermination shall be considered a 
substitute for a review or redetermination otherwise required under any 
other provision of this subparagraph during that 1-year period.''.
            (2) Conforming repeal.--Section 207 of the Social Security 
        Independence and Program Improvements Act of 1994 (42 U.S.C. 
        1382 note; 108 Stat. 1516) is hereby repealed.
    (c) Continuing Disability Review Required for Low Birth Weight 
Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended 
by subsections (a) and (b), is amended by adding at the end the 
following new clause:
    ``(iv)(I) Not later than 12 months after the birth of an 
individual, the Commissioner shall review in accordance with paragraph 
(4) the continuing eligibility for benefits under this title by reason 
of disability of such individual whose low birth weight is a 
contributing factor material to the Commissioner's determination that 
the individual is disabled.
    ``(II) A review under subclause (I) shall be considered a 
substitute for a review otherwise required under any other provision of 
this subparagraph during that 12-month period.
    ``(III) A parent or guardian of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this 
title.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits for months beginning on or after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

    (a) Tightening of Representative Payee Requirements.--
            (1) Clarification of role.--Section 1631(a)(2)(B)(ii) (42 
        U.S.C. 1383(a)(2)(B)(ii)) is amended by striking ``and'' at the 
        end of subclause (II), by striking the period at the end of 
        subclause (IV) and inserting ``; and'', and by adding after 
        subclause (IV) the following new subclause:
            ``(V) advise such person through the notice of award of 
        benefits, and at such other times as the Commissioner of Social 
        Security deems appropriate, of specific examples of appropriate 
        expenditures of benefits under this title and the proper role 
        of a representative payee.''.
            (2) Documentation of expenditures required.--
                    (A) In general.--Subparagraph (C)(i) of section 
                1631(a)(2) (42 U.S.C. 1383(a)(2)) is amended to read as 
                follows:
    ``(C)(i) In any case where payment is made to a representative 
payee of an individual or spouse, the Commissioner of Social Security 
shall--
            ``(I) require such representative payee to document 
        expenditures and keep contemporaneous records of transactions 
        made using such payment; and
            ``(II) implement statistically valid procedures for 
        reviewing a sample of such contemporaneous records in order to 
        identify instances in which such representative payee is not 
        properly using such payment.''.
                    (B) Conforming amendment with respect to parent 
                payees.--Clause (ii) of section 1631(a)(2)(C) (42 
                U.S.C. 1383(a)(2)(C)) is amended by striking ``Clause 
                (i)'' and inserting ``Subclauses (II) and (III) of 
                clause (i)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to benefits paid after the date of the enactment of 
        this Act.
    (b) Dedicated Savings Accounts.--
            (1) In general.--Section 1631(a)(2)(B) (42 U.S.C. 
        1383(a)(2)(B)) is amended by adding at the end the following 
        new clause:
    ``(xiv) Notwithstanding clause (x), the Commissioner of Social 
Security may, at the request of the representative payee, pay any lump 
sum payment for the benefit of a child into a dedicated savings account 
that could only be used to purchase for such child--
            ``(I) education and job skills training;
            ``(II) special equipment or housing modifications or both 
        specifically related to, and required by the nature of, the 
        child's disability; and
            ``(III) appropriate therapy and rehabilitation.''.
            (2) Disregard of trust funds.--Section 1613(a) (42 U.S.C. 
        1382b) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (9),
                    (B) by striking the period at the end of paragraph 
                (10) the first place it appears and inserting a 
                semicolon,
                    (C) by redesignating paragraph (10) the second 
                place it appears as paragraph (11) and striking the 
                period at the end of such paragraph and inserting ``; 
                and'', and
                    (D) by inserting after paragraph (11), as so 
                redesignated, the following new paragraph:
            ``(12) all amounts deposited in, or interest credited to, a 
        dedicated savings account described in section 
        1631(a)(2)(B)(xiv).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to payments made after the date of the enactment of 
        this Act.

   Subtitle C--Studies Regarding Supplemental Security Income Program

SEC. 221. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    Title XVI is amended by adding at the end the following new 
section:

``SEC. 1636. ANNUAL REPORT ON PROGRAM.

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

SEC. 222. IMPROVEMENTS TO DISABILITY EVALUATION.

    (a) Request for Comments.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall issue a request for comments in the Federal Register 
        regarding improvements to the disability evaluation and 
        determination procedures for individuals under age 18 to ensure 
        the comprehensive assessment of such individuals, including--
                    (A) additions to conditions which should be 
                presumptively disabling at birth or ages 0 through 3 
                years;
                    (B) specific changes in individual listings in the 
                Listing of Impairments set forth in appendix 1 of 
                subpart P of part 404 of title 20, Code of Federal 
                Regulations;
                    (C) improvements in regulations regarding 
                determinations based on regulations providing for 
                medical and functional equivalence to such Listing of 
                Impairments, and consideration of multiple impairments; 
                and
                    (D) any other changes to the disability 
                determination procedures.
            (2) Review and regulatory action.--The Commissioner of 
        Social Security shall promptly review such comments and issue 
        any regulations implementing any necessary changes not later 
        than 18 months after the date of the enactment of this Act.

SEC. 223. STUDY OF DISABILITY DETERMINATION PROCESS.

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

SEC. 224. STUDY BY GENERAL ACCOUNTING OFFICE.

    Not later than January 1, 1998, the Comptroller General of the 
United States shall study and report on the impact of the amendments 
made by, and the provisions of, this title on the supplemental security 
income program under title XVI of the Social Security Act.

      Subtitle D--National Commission on the Future of Disability

SEC. 231. ESTABLISHMENT.

    There is established a commission to be known as the National 
Commission on the Future of Disability (referred to in this subtitle as 
the ``Commission''), the expenses of which shall be paid from funds 
otherwise appropriated for the Social Security Administration.

SEC. 232. DUTIES OF THE COMMISSION.

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

SEC. 233. MEMBERSHIP.

    (a) Number and Appointment.--
            (1) In general.--The Commission shall be composed of 15 
        members, of whom--
                    (A) five shall be appointed by the President, of 
                whom not more than 3 shall be of the same major 
                political party;
                    (B) three shall be appointed by the Majority Leader 
                of the Senate;
                    (C) two shall be appointed by the Minority Leader 
                of the Senate;
                    (D) three shall be appointed by the Speaker of the 
                House of Representatives; and
                    (E) two shall be appointed by the Minority Leader 
                of the House of Representatives.
            (2) Representation.--The Commission members shall be chosen 
        based on their education, training, or experience. In 
        appointing individuals as members of the Commission, the 
        President and the Majority and Minority Leaders of the Senate 
        and the Speaker and Minority Leader of the House of 
        Representatives shall seek to ensure that the membership of the 
        Commission reflects the diversity of individuals with 
        disabilities in the United States.
    (b) Comptroller General.--The Comptroller General shall serve on 
the Commission as an ex officio member of the Commission to advise and 
oversee the methodology and approach of the study of the Commission.
    (c) Prohibition Against Officer or Employee.--No officer or 
employee of any government shall be appointed under subsection (a).
    (d) Deadline for Appointment; Term of Appointment.--Members of the 
Commission shall be appointed not later than 60 days after the date of 
the enactment of this Act. The members shall serve on the Commission 
for the life of the Commission.
    (e) Meetings.--The Commission shall locate its headquarters in the 
District of Columbia, and shall meet at the call of the Chairperson, 
but not less than 4 times each year during the life of the Commission.
    (f) Quorum.--Ten members of the Commission shall constitute a 
quorum, but a lesser number may hold hearings.
    (g) Chairperson and Vice Chairperson.--Not later than 15 days after 
the members of the Commission are appointed, such members shall 
designate a Chairperson and Vice Chairperson from among the members of 
the Commission.
    (h) Continuation of Membership.--If a member of the Commission 
becomes an officer or employee of any government after appointment to 
the Commission, the individual may continue as a member until a 
successor member is appointed.
    (i) Vacancies.--A vacancy on the Commission shall be filled in the 
manner in which the original appointment was made not later than 30 
days after the Commission is given notice of the vacancy.
    (j) Compensation.--Members of the Commission shall receive no 
additional pay, allowances, or benefits by reason of their service on 
the Commission.
    (k) Travel Expenses.--Each member of the Commission shall receive 
travel expenses, including per diem in lieu of subsistence, in 
accordance with sections 5702 and 5703 of title 5, United States Code.

SEC. 234. STAFF AND SUPPORT SERVICES.

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

SEC. 235. POWERS OF COMMISSION.

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

SEC. 236. REPORTS.

    (a) Interim Report.--Not later than 1 year prior to the date on 
which the Commission terminates pursuant to section 237, the Commission 
shall submit an interim report to the President and to the Congress. 
The interim report shall contain a detailed statement of the findings 
and conclusions of the Commission, together with the Commission's 
recommendations for legislative and administrative action, based on the 
activities of the Commission.
    (b) Final Report.--Not later than the date on which the Commission 
terminates, the Commission shall submit to the Congress and to the 
President a final report containing--
            (1) a detailed statement of final findings, conclusions, 
        and recommendations; and
            (2) an assessment of the extent to which recommendations of 
        the Commission included in the interim report under subsection 
        (a) have been implemented.
    (c) Printing and Public Distribution.--Upon receipt of each report 
of the Commission under this section, the President shall--
            (1) order the report to be printed; and
            (2) make the report available to the public upon request.

SEC. 237. TERMINATION.

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

               Subtitle E--State Supplementation Programs

SEC. 241. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    (a) In General.--Section 1618 (42 U.S.C. 1382g) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
with respect to calendar quarters beginning after September 30, 1995.

                 Subtitle F--Retirement Age Eligibility

SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME BENEFITS BASED 
              ON SOCIAL SECURITY RETIREMENT AGE.

    (a) In General.--Section 1614(a)(1)(A) (42 U.S.C. 1382C(a)(1)(A)) 
is amended by striking ``is 65 years of age or older,'' and inserting 
``has attained retirement age.''.
    (b) Retirement Age Defined.--Section 1614 (42 U.S.C. 1382c) is 
amended by adding at the end the following new subsection:

                            ``Retirement Age

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

                     TITLE III--FOOD STAMP PROGRAM

                     Subtitle A--Food Stamp Reform

SEC. 301. DECLARATION OF POLICY.

    Section 2 of the Food Stamp Act of 1977 (7 U.S.C. 2011) is amended 
by adding at the end the following: ``Congress intends that the food 
stamp program support the employment focus and family strengthening 
mission of public welfare and welfare replacement programs by--
            ``(1) facilitating the transition of low-income families 
        and households from economic dependency to economic self-
        sufficiency through work;
            ``(2) promoting employment as the primary means of income 
        support for economically dependent families and households and 
        reducing the barriers to employment of economically dependent 
        families and households; and
            ``(3) maintaining and strengthening healthy family 
        functioning and family life.''.

SEC. 301A. CERTIFICATION PERIOD.

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

SEC. 302. TREATMENT OF CHILDREN LIVING AT HOME.

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

SEC. 303. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD 
              DETERMINATIONS.

    (a) In General.--Section 3(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2012(i)) is amended by inserting after the third sentence the 
following: ``Notwithstanding the preceding sentences, a State may 
establish criteria that prescribe when individuals who live together, 
and who would be allowed to participate as separate households under 
the preceding sentences, shall be considered a single household, 
without regard to the common purchase of food and preparation of 
meals.''.
    (b) Conforming Amendment.--The second sentence of section 5(a) of 
the Act (7 U.S.C. 2014(a)) is amended by striking ``the third sentence 
of section 3(i)'' and inserting ``the fourth sentence of section 
3(i)''.

SEC. 304. ADJUSTMENT OF THRIFTY FOOD PLAN.

    The second sentence of section 3(o) of the Food Stamp Act of 1977 
(7 U.S.C. 2012(o)) is amended--
            (1) by striking ``shall (1) make'' and inserting the 
        following: ``shall--
            ``(1) make'';
            (2) by striking ``scale, (2) make'' and inserting ``scale;
            ``(2) make'';
            (3) by striking ``Alaska, (3) make'' and inserting the 
        following: ``Alaska;
            ``(3) make''; and
            (4) by striking ``Columbia, (4) through'' and all that 
        follows through the end of the subsection and inserting the 
        following: ``Columbia; and
            ``(4) on October 1, 1995, and each October 1 thereafter, 
        adjust the cost of the diet to reflect the cost of the diet, in 
        the preceding June, and round the result to the nearest lower 
        dollar increment for each household size, except that on 
        October 1, 1995, the Secretary may not reduce the cost of the 
        diet in effect on September 30, 1995.''.

SEC. 305. DEFINITION OF HOMELESS INDIVIDUAL.

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

SEC. 306. STATE OPTIONS IN REGULATIONS.

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

SEC. 307. EARNINGS OF STUDENTS.

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

SEC. 308. ENERGY ASSISTANCE.

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

SEC. 309. DEDUCTIONS FROM INCOME.

    (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 
2014) is amended by striking subsection (e) and inserting the 
following:
    ``(e) Deductions From Income.--
            ``(1) Standard deduction.--
                    ``(A) In general.--The Secretary shall allow a 
                standard deduction for each household in the 48 
                contiguous States and the District of Columbia, Alaska, 
                Hawaii, Guam, and the Virgin Islands of the United 
                States of--
                            ``(i) for fiscal year 1995, $134, $229, 
                        $189, $269, and $118, respectively;
                            ``(ii) for fiscal year 1996, $132, $225, 
                        $186, $265, and $116, respectively; and
                            ``(iii) for fiscal years 1997 through 2002, 
                        $124, $211, $174, $248 and $109, respectively.
                    ``(B) Adjustment for inflation.--On October 1, 
                2002, and each October 1 thereafter, the Secretary 
                shall adjust the standard deduction to the nearest 
                lower dollar increment to reflect changes in the 
                Consumer Price Index for all urban consumers published 
                by the Bureau of Labor Statistics, for items other than 
                food, for the 12-month period ending the preceding June 
                30.
            ``(2) Earned income deduction.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a household with earned income shall 
                be allowed a deduction of 20 percent of all earned 
                income (other than income excluded by subsection (d)), 
                to compensate for taxes, other mandatory deductions 
                from salary, and work expenses.
                    ``(B) Exception.--The deduction described in 
                subparagraph (A) shall not be allowed with respect to 
                determining an overissuance due to the failure of a 
                household to report earned income in a timely manner.
            ``(3) Dependent care deduction.--
                    ``(A) In general.--A household shall be entitled, 
                with respect to expenses (other than excluded expenses 
                described in subparagraph (B)) for dependent care, to a 
                dependent care deduction, the maximum allowable level 
of which shall be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent, for the actual cost 
of payments necessary for the care of a dependent if the care enables a 
household member to accept or continue employment, or training or 
education that is preparatory for employment.
                    ``(B) Excluded expenses.--The excluded expenses 
                referred to in subparagraph (A) are--
                            ``(i) expenses paid on behalf of the 
                        household by a third party;
                            ``(ii) amounts made available and excluded 
                        for the expenses referred to in subparagraph 
                        (A) under subsection (d)(3); and
                            ``(iii) expenses that are paid under 
                        section 6(d)(4).
            ``(4) Deduction for child support payments.--
                    ``(A) In general.--A household shall be entitled to 
                a deduction for child support payments made by a 
                household member to or for an individual who is not a 
                member of the household if the household member is 
                legally obligated to make the payments.
                    ``(B) Methods for determining amount.--The 
                Secretary may prescribe by regulation the methods, 
                including calculation on a retrospective basis, that a 
                State agency shall use to determine the amount of the 
                deduction for child support payments.
            ``(5) Homeless shelter deduction.--A State agency may 
        develop a standard homeless shelter deduction, which shall not 
        exceed $139 per month, for such expenses as may reasonably be 
        expected to be incurred by households in which all members are 
        homeless individuals but are not receiving free shelter 
        throughout the month. A State agency that develops the 
        deduction may use the deduction in determining eligibility and 
        allotments for the households, except that the State agency may 
        prohibit the use of the deduction for households with extremely 
        low shelter costs.
            ``(6) Excess medical expense deduction.--
                    ``(A) In general.--A household containing an 
                elderly or disabled member shall be entitled, with 
                respect to expenses other than expenses paid on behalf 
                of the household by a third party, to an excess medical 
                expense deduction for the portion of the actual costs 
                of allowable medical expenses, incurred by the elderly 
                or disabled member, exclusive of special diets, that 
                exceeds $35 per month.
                    ``(B) Method of claiming deduction.--
                            ``(i) In general.--A State agency shall 
                        offer an eligible household under subparagraph 
                        (A) a method of claiming a deduction for 
                        recurring medical expenses that are initially 
                        verified under the excess medical expense 
                        deduction in lieu of submitting information or 
                        verification on actual expenses on a monthly 
                        basis.
                            ``(ii) Method.--The method described in 
                        clause (i) shall--
                                    ``(I) be designed to minimize the 
                                burden for the eligible elderly or 
                                disabled household member choosing to 
                                deduct the recurrent medical expenses 
                                of the member pursuant to the method;
                                    ``(II) rely on reasonable estimates 
                                of the expected medical expenses of the 
                                member for the certification period 
                                (including changes that can be 
                                reasonably anticipated based on 
                                available information about the medical 
                                condition of the member, public or 
                                private medical insurance coverage, and 
                                the current verified medical expenses 
                                incurred by the member); and
                                    ``(III) not require further 
                                reporting or verification of a change 
                                in medical expenses if such a change 
                                has been anticipated for the 
                                certification period.
            ``(7) Excess shelter expense deduction.--
                    ``(A) In general.--A household shall be entitled, 
                with respect to expenses other than expenses paid on 
                behalf of the household by a third party, to an excess 
                shelter expense deduction to the extent that the 
                monthly amount expended by a household for shelter 
                exceeds an amount equal to 50 percent of monthly 
                household income after all other applicable deductions 
                have been allowed.
                    ``(B) Maximum amount of deduction.--
                            ``(i) Prior to september 30, 1995.--In the 
                        case of a household that does not contain an 
                        elderly or disabled individual, during the 15-
                        month period ending September 30, 1995, the 
                        excess shelter expense deduction shall not 
                        exceed--
                                    ``(I) in the 48 contiguous States 
                                and the District of Columbia, $231 per 
                                month; and
                                    ``(II) in Alaska, Hawaii, Guam, and 
                                the Virgin Islands of the United 
                                States, $402, $330, $280, and $171 per 
                                month, respectively.
                            ``(ii) After september 30, 1995.--In the 
                        case of a household that does not contain an 
                        elderly or disabled individual, during the 15-
                        month period ending December 31, 1996, the 
                        excess shelter expense deduction shall not 
                        exceed--
                                    ``(I) in the 48 contiguous States 
                                and the District of Columbia, $247 per 
                                month; and
                                    ``(II) in Alaska, Hawaii, Guam, and 
                                the Virgin Islands of the United 
                                States, $429, $353, $300, and $182 per 
                                month, respectively.
                    ``(C) Standard utility allowance.--
                            ``(i) In general.--In computing the excess 
                        shelter expense deduction, a State agency may 
                        use a standard utility allowance in accordance 
                        with regulations promulgated by the Secretary, 
                        except that a State agency may use an allowance 
                        that does not fluctuate within a year to 
                        reflect seasonal variations.
                            ``(ii) Restrictions on heating and cooling 
                        expenses.--An allowance for a heating or 
                        cooling expense may not be used in the case of 
                        a household that--
                                    ``(I) does not incur a heating or 
                                cooling expense, as the case may be;
                                    ``(II) does incur a heating or 
                                cooling expense but is located in a 
                                public housing unit that has central 
                                utility meters and charges households, 
                                with regard to the expense, only for 
                                excess utility costs; or
                                    ``(III) shares the expense with, 
                                and lives with, another individual not 
                                participating in the food stamp 
                                program, another household 
                                participating in the food stamp 
                                program, or both, unless the allowance 
                                is prorated between the household and 
                                the other individual, household, or 
                                both.
                            ``(iii) Mandatory allowance.--
                                    ``(I) In general.--A State agency 
                                may make the use of a standard utility 
                                allowance mandatory for all households 
                                with qualifying utility costs if--
                                            ``(aa) the State agency has 
                                        developed 1 or more standards 
                                        that include the cost of 
                                        heating and cooling and 1 or 
                                        more standards that do not 
                                        include the cost of heating and 
                                        cooling; and
                                            ``(bb) the Secretary finds 
                                        that the standards will not 
                                        result in an increased cost to 
the Secretary.
                                    ``(II) Household election.--A State 
                                agency that has not made the use of a 
                                standard utility allowance mandatory 
                                under subclause (I) shall allow a 
                                household to switch, at the end of a 
                                certification period, between the 
                                standard utility allowance and a 
                                deduction based on the actual utility 
                                costs of the household.
                            ``(iv) Availability of allowance to 
                        recipients of energy assistance.--
                                    ``(I) In general.--Subject to 
                                subclause (II), if a State agency 
                                elects to use a standard utility 
                                allowance that reflects heating or 
                                cooling costs, the standard utility 
                                allowance shall be made available to 
                                households receiving a payment, or on 
                                behalf of which a payment is made, 
                                under the Low-Income Home Energy 
                                Assistance Act of 1981 (42 U.S.C. 8621 
                                et seq.) or other similar energy 
                                assistance program, if the household 
                                still incurs out-of-pocket heating or 
                                cooling expenses in excess of any 
                                assistance paid on behalf of the 
                                household to an energy provider.
                                    ``(II) Separate allowance.--A State 
                                agency may use a separate standard 
                                utility allowance for households on 
                                behalf of which a payment described in 
                                subclause (I) is made, but may not be 
                                required to do so.
                                    ``(III) States not electing to use 
                                separate allowance.--A State agency 
                                that does not elect to use a separate 
                                allowance but makes a single standard 
                                utility allowance available to 
                                households incurring heating or cooling 
                                expenses (other than a household 
                                described in subclause (I) or (II) of 
                                subparagraph (C)(ii)) may not be 
                                required to reduce the allowance due to 
                                the provision (directly or indirectly) 
                                of assistance under the Low-Income Home 
                                Energy Assistance Act of 1981 (42 
                                U.S.C. 8621 et seq.).
                                    ``(IV) Proration of assistance.--
                                For the purpose of the food stamp 
                                program, assistance provided under the 
                                Low-Income Home Energy Assistance Act 
                                of 1981 (42 U.S.C. 8621 et seq.) shall 
                                be considered to be prorated over the 
                                entire heating or cooling season for 
                                which the assistance was provided.''.
    (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 U.S.C. 
2020(e)(3)) is amended by striking ``. Under rules prescribed'' and all 
that follows through ``verifies higher expenses''.

SEC. 310. AMOUNT OF VEHICLE ASSET LIMITATION.

    The first sentence of section 5(g)(2) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(g)(2)) is amended by striking ``through September 30, 
1995'' and all that follows through ``such date and on'' and inserting 
``and shall be adjusted on October 1, 1996, and''.

SEC. 311. BENEFITS FOR ALIENS.

    Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C. 2014(i)) is 
amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by inserting ``or who executed such an 
                affidavit or similar agreement to enable the individual 
                to lawfully remain in the United States,'' after 
                ``respect to such individual,''; and
                    (B) by striking ``for a period'' and all that 
                follows through the period at the end and inserting 
                ``until the end of the period ending on the later of 
                the date agreed to in the affidavit or agreement or the 
                date that is 5 years after the date on which the 
                individual was first lawfully admitted into the United 
                States following the execution of the affidavit or 
                agreement.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (C)(i), by striking ``of three 
                years after entry into the United States'' and 
                inserting ``determined under paragraph (1)''; and
                    (B) in subparagraph (D), by striking ``of three 
                years after such alien's entry into the United States'' 
                and inserting ``determined under paragraph (1)''.

SEC. 312. DISQUALIFICATION.

    (a) In General.--Section 6(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless otherwise 
exempted by the provisions'' and all that follows through the end of 
paragraph (1) and inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No physically and mentally fit 
                individual over the age of 15 and under the age of 60 
                shall be eligible to participate in the food stamp 
                program if the individual--
                            ``(i) refuses, at the time of application 
                        and every 12 months thereafter, to register for 
                        employment in a manner prescribed by the 
                        Secretary;
                            ``(ii) refuses without good cause to 
                        participate in an employment and training 
                        program under paragraph (4), to the extent 
                        required by the State agency;
                            ``(iii) refuses without good cause to 
                        accept an offer of employment, at a site or 
                        plant not subject to a strike or lockout at the 
                        time of the refusal, at a wage not less than 
                        the higher of--
                                    ``(I) the applicable Federal or 
                                State minimum wage; or
                                    ``(II) 80 percent of the wage that 
                                would have governed had the minimum 
                                hourly rate under section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) been applicable 
                                to the offer of employment;
                            ``(iv) refuses without good cause to 
                        provide a State agency with sufficient 
                        information to allow the State agency to 
                        determine the employment status or the job 
                        availability of the individual;
                            ``(v) voluntarily and without good cause--
                                    ``(I) quits a job; or
                                    ``(II) reduces work effort and, 
                                after the reduction, the individual is 
                                working less than 30 hours per week; or
                            ``(vi) fails to comply with section 20.
                    ``(B) Household ineligibility.--If an individual 
                who is the head of a household becomes ineligible to 
                participate in the food stamp program under 
                subparagraph (A), the household shall, at the option of 
                the State agency, become ineligible to participate in 
                the food stamp program for a period, determined by the 
                State agency, that does not exceed the lesser of--
                            ``(i) the duration of the ineligibility of 
                        the individual determined under subparagraph 
                        (C); or
                            ``(ii) 180 days.
                    ``(C) Duration of ineligibility.--
                            ``(i) First violation.--The first time that 
                        an individual becomes ineligible to participate 
                        in the food stamp program under subparagraph 
                        (A), the individual shall remain ineligible 
                        until the later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 1 month 
                                after the date the individual became 
                                ineligible; or
                                    ``(III) a date determined by the 
                                State agency that is not later than 3 
                                months after the date the individual 
                                became ineligible.
                            ``(ii) Second violation.--The second time 
                        that an individual becomes ineligible to 
                        participate in the food stamp program under 
                        subparagraph (A), the individual shall remain 
                        ineligible until the later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 3 months 
                                after the date the individual became 
                                ineligible; or
                                    ``(III) a date determined by the 
                                State agency that is not later than 6 
                                months after the date the individual 
                                became ineligible.
                            ``(iii) Third or subsequent violation.--The 
                        third or subsequent time that an individual 
                        becomes ineligible to participate in the food 
                        stamp program under subparagraph (A), the 
                        individual shall remain ineligible until the 
                        later of--
                                    ``(I) the date the individual 
                                becomes eligible under subparagraph 
                                (A);
                                    ``(II) the date that is 6 months 
                                after the date the individual became 
                                ineligible;
                                    ``(III) a date determined by the 
                                State agency; or
                                    ``(IV) at the option of the State 
                                agency, permanently.
                    ``(D) Administration.--
                            ``(i) Good cause.--The Secretary shall 
                        determine the meaning of good cause for the 
                        purpose of this paragraph.
                            ``(ii) Voluntary quit.--The Secretary shall 
                        determine the meaning of voluntarily quitting 
                        and reducing work effort for the purpose of 
                        this paragraph.
                            ``(iii) Determination by state agency.--
                                    ``(I) In general.--Subject to 
                                subclause (II) and clauses (i) and 
                                (ii), a State agency shall determine--
                                            ``(aa) the meaning of any 
                                        term in subparagraph (A);
                                            ``(bb) the procedures for 
                                        determining whether an 
                                        individual is in compliance 
                                        with a requirement under 
                                        subparagraph (A); and
                                            ``(cc) whether an 
                                        individual is in compliance 
                                        with a requirement under 
                                        subparagraph (A).
                                    ``(II) Not less restrictive.--A 
                                State agency may not determine a 
                                meaning, procedure, or determination 
                                under subclause (I) to be less 
                                restrictive than a comparable meaning, 
                                procedure, or determination under a 
                                State program funded under part A of 
                                title IV of the Social Security Act (42 
                                U.S.C. 601 et seq.).
                            ``(iv) Strike against the government.--For 
                        the purpose of subparagraph (A)(v), an employee 
                        of the Federal Government, a State, or a 
                        political subdivision of a State, who is 
                        dismissed for participating in a strike against 
                        the Federal Government, the State, or the 
                        political subdivision of the State shall be 
                        considered to have voluntarily quit without 
                        good cause.
                            ``(v) Selecting a head of household.--
                                    ``(I) In general.--For the purpose 
                                of this paragraph, the State agency 
                                shall allow the household to select any 
                                adult parent of a child in the 
                                household as the head of the household 
                                if all adult household members making 
                                application under the food stamp 
                                program agree to the selection.
                                    ``(II) Time for making 
                                designation.--A household may designate 
                                the head of the household under 
                                subclause (I) each time the household 
                                is certified for participation in the 
                                food stamp program, but may not change 
                                the designation during a certification 
                                period unless there is a change in the 
                                composition of the household.
                            ``(vi) Change in head of household.--If the 
                        head of a household leaves the household during 
                        a period in which the household is ineligible 
                        to participate in the food stamp program under 
                        subparagraph (B)--
                                    ``(I) the household shall, if 
                                otherwise eligible, become eligible to 
                                participate in the food stamp program; 
                                and
                                    ``(II) if the head of the household 
                                becomes the head of another household, 
                                the household that becomes headed by 
                                the individual shall become ineligible 
                                to participate in the food stamp 
                                program for the remaining period of 
                                ineligibility.''.
    (b) Conforming Amendment.--
            (1) The second sentence of section 17(b)(2) of the Act (7 
        U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
        inserting ``6(d)(1)(A)(i)''.
            (2) Section 20 of the Act (7 U.S.C. 2029) is amended by 
        striking subsection (f) and inserting the following:
    ``(f) Disqualification.--An individual or a household may become 
ineligible under section 6(d)(1) to participate in the food stamp 
program for failing to comply with this section.''.

SEC. 313. CARETAKER EXEMPTION.

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

SEC. 314. EMPLOYMENT AND TRAINING.

    (a) In General.--Section 6(d)(4) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(d)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Not later than April 1, 1987, 
                each'' and inserting ``Each'';
                    (B) by inserting ``work,'' after ``skills, 
                training,''; and
                    (C) by adding at the end the following: ``Each 
                component of an employment and training program carried 
                out under this paragraph shall be delivered through the 
                statewide workforce development system established in 
                section 711 of the Work Opportunity Act of 1995, unless 
                the component is not available locally through the 
                statewide workforce development system.'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking 
                the colon at the end and inserting the following: ``, 
                except that the State agency shall retain the option to 
                apply employment requirements prescribed under this 
                subparagraph to a program applicant at the time of 
                application:'';
                    (B) in clause (i), by striking ``with terms and 
                conditions'' and all that follows through ``time of 
                application''; and
                    (C) in clause (iv)--
                            (i) by striking subclauses (I) and (II); 
                        and
                            (ii) by redesignating subclauses (III) and 
                        (IV) as subclauses (I) and (II), respectively;
            (3) in subparagraph (D)--
                    (A) in clause (i), by striking ``to which the 
                application'' and all that follows through ``30 days or 
                less'';
                    (B) in clause (ii), by striking ``but with 
                respect'' and all that follows through ``child care''; 
                and
                    (C) in clause (iii), by striking ``, on the basis 
                of'' and all that follows through ``clause (ii)'' and 
                inserting ``the exemption continues to be valid'';
            (4) in subparagraph (E), by striking the third sentence;
            (5) in subparagraph (G)--
                    (A) by striking ``(G)(i) The State'' and inserting 
                ``(G) The State''; and
                    (B) by striking clause (ii);
            (6) in subparagraph (H), by striking ``(H)(i) The 
        Secretary'' and all that follows through ``(ii) Federal funds'' 
        and inserting ``(H) Federal funds'';
            (7) in subparagraph (I)(i)(II), by striking ``, or was in 
        operation,'' and all that follows through ``Social Security 
        Act'' and inserting the following: ``), except that no such 
        payment or reimbursement shall exceed the applicable local 
        market rate'';
            (8)(A) by striking subparagraphs (K) and (L) and inserting 
        the following:
                    ``(K) Limitation on funding.--Notwithstanding any 
                other provision of this paragraph, the amount of funds 
                a State agency uses to carry out this paragraph 
                (including under subparagraph (I)) for participants who 
                are receiving benefits under a State program funded 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.) shall not exceed the amount of 
                funds the State agency used in fiscal year 1995 to 
                carry out this paragraph for participants who were 
                receiving benefits in fiscal year 1995 under a State 
                program funded under part A of title IV of the Act (42 
                U.S.C. 601 et seq.).''; and
            (B) by redesignating subparagraphs (M) and (N) as 
        subparagraphs (L) and (M), respectively; and
            (9) in subparagraph (L) (as redesignated by paragraph 
        (8)(B))--
                    (A) by striking ``(L)(i) The Secretary'' and 
                inserting ``(L) The Secretary''; and
                    (B) by striking clause (ii).
    (b) Effective Date.--The amendment made by subsection (a)(1)(C) 
shall take effect--
            (1) in a State described in section 815(b)(1), on July 1, 
        1997; and
            (2) in any other State, on July 1, 1998.
    (c) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended by striking ``(h)(1)(A) The Secretary'' and all that follows 
through the end of paragraph (1) and inserting the following:
    ``(h) Funding of Employment and Training Programs.--
            ``(1) In general.--
                    ``(A) Amounts.--To carry out employment and 
                training programs, the Secretary shall reserve for 
                allocation to State agencies from funds made available 
                for each fiscal year under section 18(a)(1) the amount 
                of--
                            ``(i) for fiscal year 1996, $77,000,000;
                            ``(ii) for fiscal year 1997, $80,000,000;
                            ``(iii) for fiscal year 1998, $83,000,000;
                            ``(iv) for fiscal year 1999, $86,000,000;
                            ``(v) for fiscal year 2000, $89,000,000;
                            ``(vi) for fiscal year 2001, $92,000,000; 
                        and
                            ``(vii) for fiscal year 2002, $95,000,000.
                    ``(B) Allocation.--The Secretary shall allocate the 
                amounts reserved under subparagraph (A) among the State 
                agencies using a reasonable formula (as determined by 
                the Secretary) that gives consideration to the 
                population in each State affected by section 6(n).
                    ``(C) Reallocation.--
                            ``(i) Notification.--A State agency shall 
                        promptly notify the Secretary if the State 
                        agency determines that the State agency will 
                        not expend all of the funds allocated to the 
                        State agency under subparagraph (B).
                            ``(ii) Reallocation.--On notification under 
                        clause (i), the Secretary shall reallocate the 
                        funds that the State agency will not expend as 
                        the Secretary considers appropriate and 
                        equitable.
                    ``(D) Minimum allocation.--Notwithstanding 
                subparagraphs (A) through (C), the Secretary shall 
                ensure that each State agency operating an employment 
                and training program shall receive not less than 
                $50,000 in each fiscal year.''.
    (d) Additional Matching Funds.--Section 16(h)(2) of the Act (7 
U.S.C. 2025(h)(2)) is amended by inserting before the period at the end 
the following: ``, including the costs for case management and casework 
to facilitate the transition from economic dependency to self-
sufficiency through work''.
    (e) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h)) is 
amended--
            (1) in paragraph (5)--
                    (A) by striking ``(5)(A) The Secretary'' and 
                inserting ``(5) The Secretary''; and
                    (B) by striking subparagraph (B); and
            (2) by striking paragraph (6).

SEC. 315. COMPARABLE TREATMENT FOR DISQUALIFICATION.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended--
            (1) by redesignating subsection (i) (as added by section 
        106) as subsection (o); and
            (2) by inserting after subsection (h) the following:
    ``(i) Comparable Treatment for Disqualification.--
            ``(1) In general.--If a disqualification is imposed on a 
        member of a household for a failure of the member to perform an 
        action required under a Federal, State, or local law relating 
        to a welfare or public assistance program, the State agency may 
        impose the same disqualification on the member of the household 
        under the food stamp program.
            ``(2) Rules and procedures.--If a disqualification is 
        imposed under paragraph (1) for a failure of an individual to 
        perform an action required under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), the State agency 
        may use the rules and procedures that apply under part A of 
        title IV of the Act to impose the same disqualification under 
        the food stamp program.
            ``(3) Application after disqualification period.--A member 
        of a household disqualified under paragraph (1) may, after the 
        disqualification period has expired, apply for benefits under 
        this Act and shall be treated as a new applicant, except that a 
        prior disqualification under subsection (d) shall be considered 
        in determining eligibility.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end; and
            (2) by adding at the end the following:
            ``(26) the guidelines the State agency uses in carrying out 
        section 6(i);''.
    (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 U.S.C. 
2015(d)(2)(A)) is amended by striking ``that is comparable to a 
requirement of paragraph (1)''.

SEC. 316. COOPERATION WITH CHILD SUPPORT AGENCIES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 315) is further amended by inserting after subsection (i) 
the following:
    ``(j) Custodial Parent's Cooperation With Child Support Agencies.--
            ``(1) In general.--At the option of a State agency, subject 
        to paragraphs (2) and (3), no natural or adoptive parent or 
        other individual (collectively referred to in this subsection 
        as `the individual') who is living with and exercising parental 
        control over a child under the age of 18 who has an absent 
        parent shall be eligible to participate in the food stamp 
        program unless the individual cooperates with the State agency 
        administering the program established under part D of title IV 
        of the Social Security Act (42 U.S.C. 651 et seq.)--
                    ``(A) in establishing the paternity of the child 
                (if the child is born out of wedlock); and
                    ``(B) in obtaining support for--
                            ``(i) the child; or
                            ``(ii) the individual and the child.
            ``(2) Good cause for noncooperation.--Paragraph (1) shall 
        not apply to the individual if good cause is found for refusing 
        to cooperate, as determined by the State agency in accordance 
        with standards prescribed by the Secretary in consultation with 
        the Secretary of Health and Human Services. The standards shall 
        take into consideration circumstances under which cooperation 
        may be against the best interests of the child.
            ``(3) Fees.--Paragraph (1) shall not require the payment of 
        a fee or other cost for services provided under part D of title 
        IV of the Social Security Act (42 U.S.C. 651 et seq.).
    ``(k) Noncustodial Parent's Cooperation With Child Support 
Agencies.--
            ``(1) In general.--At the option of a State agency, subject 
        to paragraphs (2) and (3), a putative or identified 
        noncustodial parent of a child under the age of 18 (referred to 
        in this subsection as `the individual') shall not be eligible 
        to participate in the food stamp program if the individual 
        refuses to cooperate with the State agency administering the 
        program established under part D of title IV of the Social 
        Security Act (42 U.S.C. 651 et seq.)--
                    ``(A) in establishing the paternity of the child 
                (if the child is born out of wedlock); and
                    ``(B) in providing support for the child.
            ``(2) Refusal to cooperate.--
                    ``(A) Guidelines.--The Secretary, in consultation 
                with the Secretary of Health and Human Services, shall 
                develop guidelines on what constitutes a refusal to 
                cooperate under paragraph (1).
                    ``(B) Procedures.--The State agency shall develop 
                procedures, using guidelines developed under 
                subparagraph (A), for determining whether an individual 
                is refusing to cooperate under paragraph (1).
            ``(3) Fees.--Paragraph (1) shall not require the payment of 
        a fee or other cost for services provided under part D of title 
        IV of the Social Security Act (42 U.S.C. 651 et seq.).
            ``(4) Privacy.--The State agency shall provide safeguards 
        to restrict the use of information collected by a State agency 
        administering the program established under part D of title IV 
        of the Social Security Act (42 U.S.C. 651 et seq.) to purposes 
        for which the information is collected.''.

SEC. 317. DISQUALIFICATION FOR CHILD SUPPORT ARREARS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 316) is further amended by inserting after subsection (k) 
the following:
    ``(l) Disqualification for Child Support Arrears.--
            ``(1) In general.--At the option of a State agency, except 
        as provided in paragraph (2), no individual shall be eligible 
        to participate in the food stamp program as a member of any 
        household during any month that the individual is delinquent in 
        any payment due under a court order for the support of a child 
        of the individual.
            ``(2) Exceptions.--Paragraph (1) shall not apply if--
                    ``(A) a court is allowing the individual to delay 
                payment; or
                    ``(B) the individual is complying with a payment 
                plan approved by a court or the State agency designated 
                under part D of title IV of the Social Security Act (42 
                U.S.C. 651 et seq.) to provide support for the child of 
                the individual.''.

SEC. 318. PERMANENT DISQUALIFICATION FOR PARTICIPATING IN 2 OR MORE 
              STATES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 317) is further amended by inserting after subsection (l) 
the following:
    ``(m) Permanent Disqualification for Participating in 2 or More 
States.--An individual shall be permanently ineligible to participate 
in the food stamp program as a member of any household if the 
individual is found by a State agency to have made, or is convicted in 
Federal or State court of having made, a fraudulent statement or 
representation with respect to the place of residence of the individual 
in order to receive benefits simultaneously from 2 or more States under 
the food stamp program.''.

SEC. 319. WORK REQUIREMENT.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) (as amended by section 318) is further amended by inserting after 
subsection (m) the following:
    ``(n) Work Requirement.--
            ``(1) Definition of work program.--In this subsection, the 
        term `work program' means--
                    ``(A) a program under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.);
                    ``(B) a program under section 236 of the Trade Act 
                of 1974 (19 U.S.C. 2296); or
                    ``(C) a program of employment or training operated 
                or supervised by a State or political subdivision of a 
                State that meets standards approved by the Governor of 
                the State, including a program under section 6(d)(4) 
                other than a job search program or a job search 
                training program under clause (i) or (ii) of section 
                6(d)(4)(B).
            ``(2) Work requirement.--No individual shall be eligible to 
        participate in the food stamp program as a member of any 
        household if, during the preceding 12-month period, the 
        individual received food stamp benefits for not less than 6 
        months during which the individual did not--
                    ``(A) work 20 hours or more per week, averaged 
                monthly; or
                    ``(B) participate in and comply with the 
                requirements of a work program for 20 hours or more per 
                week, as determined by the State agency.
            ``(3) Exception.--Paragraph (2) shall not apply to an 
        individual if the individual is--
                    ``(A) under 18 or over 50 years of age;
                    ``(B) medically certified as physically or mentally 
                unfit for employment;
                    ``(C) a parent or other member of a household with 
                responsibility for a dependent child; or
                    ``(D) otherwise exempt under section 6(d)(2).
            ``(4) Waiver.--
                    ``(A) In general.--On the request of a State 
                agency, the Secretary may waive the applicability of 
                paragraph (2) to any group of individuals in the State 
                if the Secretary makes a determination that the area in 
                which the individuals reside--
                            ``(i) has an unemployment rate of over 8 
                        percent; or
                            ``(ii) does not have a sufficient number of 
                        jobs to provide employment for the individuals.
                    ``(B) Report.--The Secretary shall report the basis 
                for a waiver under subparagraph (A) to the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.''.
    (b) Transition Provision.--Prior to October 1, 1996, the term 
``preceding 12-month period'' in section 6(n)(2) of the Food Stamp Act 
of 1977 (as amended by subsection (a)) means the preceding period that 
begins on October 1, 1995.

SEC. 319A. DISQUALIFICATION OF FLEEING FELONS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 319(a), is further amended by adding at the end the 
following new subsection:
    ``(o) No member of a household who is otherwise eligible to 
participate in the food stamp program shall be eligible to participate 
in the program as a member of that or any other household during any 
period during which the individual is--
            ``(1) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which the individual flees, for a crime, or attempt to commit a 
        crime, which is a felony under the laws of the place from which 
        the individual flees, or which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State; or
            ``(2) violating a condition of probation or parole imposed 
        under Federal or State law.''.

SEC. 320. ELECTRONIC BENEFIT TRANSFERS.

    (a) In General.--Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 
2016) is amended by adding at the end the following:
    ``(j) Electronic Benefit Transfers.--
            ``(1) Applicable law.--
                    ``(A) In general.--Disclosures, protections, 
                responsibilities, and remedies established by the 
                Federal Reserve Board under section 904 of the 
                Electronic Fund Transfer Act (15 U.S.C. 1693b) shall 
                not apply to benefits under this Act delivered through 
                any electronic benefit transfer system.
                    ``(B) Definition of electronic benefit transfer 
                system.--In this paragraph, the term `electronic 
                benefit transfer system' means a system under which a 
                governmental entity distributes benefits under this Act 
                or other benefits or payments by establishing accounts 
                to be accessed by recipients of the benefits 
                electronically, including through the use of an 
                automated teller machine, a point-of-sale terminal, or 
                an intelligent benefit card.
            ``(2) Charging for electronic benefit transfer card 
        replacement.--
                    ``(A) In general.--A State agency may charge an 
                individual for the cost of replacing a lost or stolen 
                electronic benefit transfer card.
                    ``(B) Reducing allotment.--A State agency may 
                collect a charge imposed under subparagraph (A) by 
                reducing the monthly allotment of the household of 
                which the individual is a member.
            ``(3) Optional photographic identification.--
                    ``(A) In general.--A State agency may require that 
                an electronic benefit card contain a photograph of 1 or 
                more members of a household.
                    ``(B) Other authorized users.--If a State agency 
                requires a photograph on an electronic benefit card 
                under subparagraph (A), the State agency shall 
                establish procedures to ensure that any other 
                appropriate member of the household or any authorized 
                representative of the household may utilize the card.
            ``(4) State electronic benefits transfer options in 
        general.--States may implement electronic benefit transfer 
        systems under the authorities and conditions set forth in 
        section 7(i) and related provisions, or the authorities and 
        conditions set forth in paragraph (5).
            ``(5) Electronic benefits transfer card systems assistance 
        option.--If a State notifies the Secretary of its intention to 
        convert to a state-wide electronic benefits transfer card 
        system, or a multiple-State regional electronic benefits 
        transfer card system with other state-wide systems, within 
        three years of the date of enactment of this paragraph, the 
        Secretary shall allow the establishment of an electronic 
        benefits transfer card system within the State under the 
        following terms--
                    ``(A) Coordination and law enforcement.--
                            ``(i) Conversion.--The Secretary shall 
                        coordinate with, and assist, the State or 
                        States in a regional system in eliminating the 
                        use of food stamp coupons and the full 
                        conversion to an electronic benefits transfer 
                        card system within three years after the 
                        decision of the State to convert to the system 
                        set forth in this paragraph.
                            ``(ii) Operations.--States shall take into 
                        account generally accepted standard operating 
                        rules for carrying out this paragraph, based 
                        on--
                                    ``(I) commercial electronic funds 
                                transfer technology;
                                    ``(II) the need to permit 
                                interstate operation and law 
                                enforcement monitoring; and
                                    ``(III) the need to permit 
                                monitoring and investigations by 
                                authorized law enforcement agencies.
                            ``(iii) Law enforcement.--The Secretary, in 
                        consultation with the Inspector General of the 
                        United States Department of Agriculture and the 
                        United States Secret Service, shall inform the 
                        State of proper security features, good 
                        management techniques, and methods of deterring 
                        counterfeiting.
                    ``(B) Paper and other alternative benefit transfer 
                systems.--Beginning on the date of the implementation 
                of the electronic benefits transfer card system in a 
                State under authority of this paragraph, the Secretary 
                shall also permit the use of paper-based and other 
                benefit transfer approaches for providing benefits to 
                food stamp households in the case of special-need 
                retail food stores.
                    ``(C) State-provided equipment.--
                            ``(i) Electronic benefits transfer card 
                        system.--
                                    ``(I) In general.--A retail food 
                                store that does not have point-of-sale 
                                electronic benefits transfer equipment, 
                                and does not intend to obtain point-of-
                                sale electronic benefits transfer 
                                equipment in the near future, shall be 
                                provided by a State agency with, or 
                                reimbursed for, the costs of purchasing 
                                and installing single-function, point-
                                of-sale equipment, and related 
                                telephone equipment, which shall be 
                                used only for Federal and State 
                                assistance programs.
                                    ``(II) Equipment requirements.--
                                Equipment provided under this 
                                subparagraph shall be capable of 
                                interstate operations and based on 
                                generally accepted commercial 
                                electronic benefits transfer operating 
                                principles that permit interstate law 
                                enforcement monitoring and shall be 
                                capable of providing a recipient with 
                                access to multiple Federal and State 
                                benefit programs.
                            ``(ii) Paper and other alternative benefit 
                        systems.--A special-need retail store that does 
                        not obtain, and does not intend to obtain in 
                        the near future, point-of-sale paper-based or 
                        other alternative benefits transfer equipment 
                        shall be provided by the State agency or 
                        compensated for the costs of purchasing such 
                        equipment which shall be used only for Federal 
                        and State assistance programs. Such paper 
                        systems includes using the electronic benefit 
                        transfer card to make an impression on a point-
                        of-sale paper document.
                            ``(iii) Return of electronic benefits 
                        transfer equipment.--A retail food store may at 
                        any time return the equipment to the State and 
                        obtain equipment with funds of the store.
                            ``(iv) Cost to stores.--The cost of 
                        documents or systems that may be required 
                        pursuant to this paragraph may not be imposed 
                        upon a retail food store participating in the 
                        program.
                    ``(D) Charging for electronic benefits transfer 
                card replacement.--
                            ``(i) In general.--Under this paragraph, 
                        the Secretary shall reimburse State agencies 
                        for the costs of purchasing and issuing 
                        electronic benefits transfer cards; and
                            ``(ii) Replacement cards.--Under this 
                        paragraph, the Secretary may charge a household 
                        through allotment reduction or otherwise for 
                        the cost of replacing a lost or stolen 
                        electronic benefit transfer card, unless the 
                        card was stolen by force or threat of force.
                    ``(E) Transition fund.--At the beginning of each 
                fiscal year during the 10-year period beginning with 
                the first full fiscal year following the date of 
                enactment of this paragraph, the Secretary shall place 
                the amount of the funds generated by the transaction 
                fees provided in subparagraph (F) into an account, to 
                be known as the Transition Conversion Account, to 
                remain available until expended.
                    ``(F) Transaction fee.--
                            (i) During the 10-year period beginning on 
                        the date of enactment of this paragraph, the 
                        Secretary shall, to the extent necessary to not 
                        increase costs to the Secretary under this 
                        paragraph, impose a transaction fee of not more 
than 2 cents for each transaction made at a retail food store using an 
electronic benefits transfer card authorized by this paragraph, to be 
taken from the benefits of the household using the card, except that no 
household shall be assessed more than 16 cents under this paragraph per 
month. The Secretary may reduce the fee on a household receiving the 
maximum benefits available under the program.
                            ``(ii) Fees limited to uses.--A fee imposed 
                        under clause (i) shall be in an amount not 
                        greater than is necessary to carry out the uses 
                        of the Transition Conversion Account in 
                        subparagraph (G).
                    ``(G)(i) Duty of secretary.--Out of funds in the 
                Transition Conversion Account, and, only to the extent 
                necessary, out of funds provided to carry out this Act, 
                the Secretary shall provide funds to provide transition 
                assistance and funds to States participating under this 
                paragraph for--
                            ``(I) the reasonable cost of purchasing and 
                        installing, or for the cost of reimbursing a 
                        retail food store for the cost of purchasing 
                        and installing single-function, point-of-sale 
                        equipment described in subparagraph (C), to be 
                        used only for Federal and State assistance 
                        programs;
                            ``(II) the reasonable start-up cost of 
                        purchasing and installing telephone equipment 
                        or connections for single-function, point-of-
                        sale equipment, to be used only for Federal and 
                        State assistance programs; and
                            ``(III) assistance to modify an electronic 
                        benefits transfer system implemented by a State 
                        prior to the date of enactment of this 
                        paragraph to the extent necessary to operate 
                        statewide or multi-statewide under this 
                        paragraph.
                    ``(ii) Use of account.--The Secretary shall use 
                funds in the Transition Conversion Account in 
                implementing this paragraph and to--
                            ``(I) provide start-up training for State 
                        agencies, employees and recipients based on a 
                        plan approved by Secretary;
                            ``(II) pay for other one-time reasonable 
                        costs of converting to an electronic benefits 
                        transfer system that is capable of interstate 
                        functions and is capable of being monitored by 
                        law enforcement agencies;
                            ``(III) pay for liabilities assumed by the 
                        Secretary under subparagraph (I);
                            ``(IV) pay other liabilities related to the 
                        electronic benefits transfer system established 
                        under this paragraph that are incurred by the 
                        Secretary; and
                            ``(V) expand and implement a nationwide 
                        program to monitor compliance with program 
                        rules related to retail food stores and the 
                        electronic delivery of benefits under this Act.
                    ``(H) Competitive bidding.--In purchasing point-of-
                sale equipment described in subparagraph (C), 
                electronic benefits transfer cards, and telephone 
                equipment or connections referred to in subparagraph 
                (G), States shall use competitive bidding systems to 
                ensure that they obtain the lowest prices for the 
                equipment and cards that meet specifications. States 
                shall not enter into purchase agreements which 
                condition the purchase of additional services or 
                equipment from suppliers of equipment or cards under 
                this paragraph. The Secretary shall monitor the sale 
                prices for such equipment and cards and the Inspector 
                General shall investigate possible wrongdoing or fraud 
                as appropriate.
                    ``(I) Liability or replacement benefits for 
                unauthorized use of ebt cards.--
                            ``(i) In general.--The Secretary shall 
                        require State agencies that choose to implement 
                        an electronic benefits transfer system under 
                        this paragraph to advise any household 
                        participating in the food stamp program how to 
                        promptly report a lost, destroyed, damaged, 
                        improperly manufactured, dysfunctional, or 
                        stolen electronic benefits transfer card.
                            ``(ii) Regulations.--Under this paragraph, 
                        the Secretary shall issue regulations providing 
                        that--
                                    ``(I) a household shall not receive 
                                any replacement for benefits lost 
due to the unauthorized use of an electronic benefits transfer card; 
and
                                    ``(II) a household shall not be 
                                liable for any amounts in excess of the 
                                benefits available to the household at 
                                the time of the unauthorized use.
                            ``(iii) Special losses.--Notwithstanding 
                        clause (ii), under this paragraph a household 
                        shall receive a replacement for any benefits 
                        lost if the loss was caused by--
                                    ``(I) force or the threat of force;
                                    ``(II) unauthorized use of the card 
                                after the State agency receives notice 
                                that the card was lost or stolen; or
                                    ``(III) a system error or 
                                malfunction, fraud, abuse, negligence, 
                                or mistake by the service provider, the 
                                card issuing agency, or the State 
                                agency, or an inaccurate execution of a 
                                transaction by the service provider:
        Provided, That with respect to losses described in subclause 
        (II) and (III), the State shall reimburse the Secretary. 
        Nothing in subclause (III) shall prevent a State from obtaining 
        reimbursement from the service provider or the card issuing 
        agency for system error or malfunction, fraud, abuse, 
        negligence, or mistake by such service provider or card issuing 
        agency.
                    ``(J) Elimination of food stamp coupons.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii) and notwithstanding any 
                        other provision of this Act, effective 
                        beginning on the date 3 years after the date a 
                        chief executive officer of a State informs the 
                        Secretary that the State intends to implement 
                        an electronic benefits transfer system 
                        authorized by this paragraph, the Secretary 
                        shall not provide any food stamp coupons to the 
                        State.
                            ``(ii) Exceptions.--
                                    ``(I) Extension.--Clause (i) shall 
                                not apply to the extent that the chief 
                                executive officer of a State determines 
                                that an extension is necessary and so 
                                notifies the Secretary in writing, 
                                except that the extension shall not 
                                extend beyond 5 years after the date 
                                that a chief executive officer of a 
                                State informs the secretary of the 
                                decision to implement an electronic 
                                benefits transfer system under this 
                                paragraph.
                                    ``(II) Waiver.--In addition to any 
                                extension under subclause (I), the 
                                Secretary may grant a waiver to a State 
                                to phase-in or delay, implementation of 
                                electronic benefits transfer for good 
                                cause shown by the State, except that 
                                the waiver shall not extend for more 
                                than 6 months.
                            ``(iii) Disaster relief.--The Secretary may 
                        provide food stamp coupons for disaster relief 
                        under section 5(h).
                    ``(K) Special rule.--A State agency may require a 
                household to explain the circumstances regarding each 
                occasion that--
                            ``(i) the household reports a lost or 
                        stolen electronic benefits transfer card; and
                            ``(ii) the card was used for an 
                        unauthorized transaction.
                In the appropriate circumstances, the State agency 
                shall investigate and ensure that appropriate cases are 
                acted upon either through administrative 
                disqualification or referral to courts of appropriate 
                jurisdiction, or referral for prosecution.
                    ``(L) Establishment.--In carrying out this 
                paragraph, the States shall--
                            ``(i) take into account the needs of law 
                        enforcement personnel and the need to permit 
                        and encourage further technological 
                        developments and scientific advances;
                            ``(ii) ensure that security is protected by 
                        appropriate means such as requiring that a 
                        personal identification number be issued with 
                        each electronic benefits transfer card to help 
                        protect the integrity of the program;
                            ``(iii) provide for--
                                    ``(I) recipient protection 
                                regarding privacy, ease of use, and 
                                access to and service in retail food 
                                stores;
                                    ``(II) financial accountability and 
                                the capability of the system to handle 
                                interstate operations and interstate 
                                monitoring by law enforcement agencies 
                                including the Inspector General of the 
                                Department of Agriculture;
                                    ``(III) rules prohibiting store 
                                participation unless any appropriate 
                                equipment necessary to permit 
                                households to purchase food with the 
                                benefits issued under the Food Stamp 
                                Act of 1977 is operational and 
                                reasonably available; and
                                    ``(IV) rules providing for 
                                monitoring and investigation by an 
                                authorized law enforcement agency 
                                including the Inspector General of the 
                                Department of Agriculture.
                    ``(M) Additional employees.--The Secretary shall 
                assign additional employees to investigate and 
                adequately monitor compliance with program rules 
                related to electronic benefits transfer systems and 
                retail food store participation.
                    ``(N) Request for statements.--Under this paragraph 
                on the request of a household, the State, through a 
                person issuing benefits to the household, shall provide 
                once per month a statement of benefit transfers and 
                balances for such household for the month preceding the 
request.
                    ``(O) Errors.--Under this paragraph:
                            ``(i) In general.--States shall design 
                        systems to timely resolve disputes over alleged 
                        errors.
                            ``(ii) Corrected errors.--Households able 
                        to obtain corrections of errors under this 
                        subparagraph shall not be entitled to a fair 
                        hearing regarding the resolved dispute.
                    ``(P) Applicable law.--For purposes of this Act, 
                fraud and related activities related to electronic 
                benefits transfer shall be governed by section 15 of 
                this Act (U.S.C. 2024) and section 1029 of title 18, 
                United States Code, in addition to any other applicable 
                law.
                    ``(Q) Definitions.--For the purpose of this 
                paragraph:
                            ``(i) Electronic benefits transfer card 
                        system.--The term `electronic benefits transfer 
                        card system' means a system to support 
                        transactions conducted with electronic benefits 
                        transfer cards, paper, or other alternative 
                        benefits transfer systems approved by the 
                        Secretary for the provision of program benefits 
                        in accordance with this paragraph.
                            ``(ii) Retail food store.--The term `retail 
                        food store' means a retail food store, a 
                        farmer's market, or a house-to-house trade 
                        route authorized to participate in the food 
                        stamp program.
                            ``(iii) Special-need retail food store.--
                        The term `special-need retail food store' 
                        means--
                                    ``(I) a retail food store located 
                                in a very rural area;
                                    ``(II) a retail food store without 
                                access to dependable electricity or 
                                regular telephone service; or
                                    ``(III) a farmers' market or house-
                                to-house trade route that is authorized 
                                to participate in the food stamp 
                                program.
                    ``(R) Lead role of industry and states.--The 
                Secretary shall consult with the Secretary of the 
                Treasury, the Secretary of Health and Human Services, 
                the Inspector General of the United States Department 
                of Agriculture, the United States Secret Service, the 
                National Governor's Association, the Food Marketing 
                Institute, the National Association of Convenience 
                Stores, the American Public Welfare Association, the 
                National Conference of State Legislatures, the American 
                Bankers Association, the financial services community, 
                State agencies, and food advocates to obtain 
                information helpful to retail stores, the financial 
                services industry, and States in the conversion to 
                electronic benefits transfer, including information 
                regarding--
                            ``(i) the degree to which an electronic 
                        benefits transfer system could be easily 
                        integrated with commercial networks;
                            ``(ii) the usefulness of appropriate 
                        electronic benefits transfer security features 
                        and local management controls, including 
                        features in an electronic benefits transfer 
                        card to deter counterfeiting of the card;
                            ``(iii) the use of laser scanner technology 
                        with electronic benefits transfer technology so 
                        that only eligible food items can be purchased 
                        by food stamp participants in stores that use 
                        scanners;
                            ``(iv) how to maximize technology that uses 
                        data available from an electronic benefits 
                        transfer system to identify fraud and allow law 
                        enforcement personnel to quickly identify or 
                        target a suspected or actual program violator;
                            ``(v) means of ensuring the confidentiality 
                        of personal information in electronic benefits 
                        transfer systems and the applicability of 
                        section 552a of title 5, United States Code, to 
                        electronic benefits transfer systems;
                            ``(vi) the best approaches for maximizing 
                        the use of then current point-of-sale terminals 
                        and systems to reduce costs; and
                            ``(vii) the best approaches for maximizing 
                        the use of electronic benefits transfer systems 
                        for multiple Federal and State benefit programs 
                        so as to achieve the highest cost savings 
                        possible through the implementation of 
                        electronic benefits transfer systems.''.
    (b) Conforming Amendments.--
            (1) Section 3 of the Food Stamp Act of 1977 (42 U.S.C. 
        2012) is amended--
                    (A) in subsection (a), by striking ``coupons'' and 
                inserting ``benefits'';
                    (B) in the first sentence of subsection (c), by 
                striking ``authorization cards'' and inserting 
                ``allotments'';
                    (C) in subsection (d), by striking ``the provisions 
                of this Act'' and inserting ``sections 5(h) and 7'';
                    (D) in subsection (e)--
                            (i) by striking ``Coupon issuer'' and 
                        inserting ``Benefit issuer''; and
                            (ii) by striking ``coupons'' and inserting 
                        ``benefits'';
                    (E) in the last sentence of subsection (i), by 
                striking ``coupons'' and inserting ``allotments''; and
                    (F) by adding at the end the following new 
                subsection:
                            ``(v) `Electronic benefits transfer card' 
                        means a card issued to a household 
                        participating in the program that is used to 
                        purchase food.
            (2) Section 4(a) of such Act (7 U.S.C. 2013(a)) is 
        amended--
                    (A) in the first sentence by inserting ``and to 
                funds made available under section 7'' after ``this 
                Act''.
                    (B) in the first and second sentences, by striking 
                ``coupons'' each place it appears and inserting 
                ``electronic benefits transfer cards or coupons''; and
                    (C) by striking the third sentence and inserting 
                the following new sentence: ``The Secretary, through 
                the facilities of the Treasury of the United States, 
                shall reimburse the stores for food purchases made with 
                electronic benefits transfer cards or coupons provided 
                under this Act.''.
            (3) The first sentence of section 6(b)(1) of such Act (7 
        U.S.C. 2015(b)(1)) is amended--
                    (A) by striking ``coupons or authorization cards'' 
                and inserting ``electronic benefits transfer cards, 
                coupons, or authorization cards''; and
                    (B) in clauses (ii) and (iii), by inserting ``or 
                electronic benefits transfer cards'' after ``coupons'' 
                each place it appears.
            (4) Section 7 of such Act (7 U.S.C. 2016) is amended--
                    (A) by striking the section heading and inserting 
                the following new section heading: ``issuance and use 
                of electronic benefits transfer cards or coupons'';
                    (B) in subsection (a), by striking ``Coupons'' and 
                all that follows through ``necessary, and'' and 
                inserting ``Electronic benefits transfer cards or 
                coupons'';
                    (C) in subsection (b), by striking ``Coupons'' and 
                inserting ``Electronic benefits transfer cards or 
                coupons'';
                    (D) in subsection (e), by striking ``coupons to 
                coupon issuers'' and replace with ``benefits to 
                benefits issuers''; and by striking ``by coupon 
                issuers'' and inserting ``by benefits issuers''.
                    (E) in subsection (f)--
                            (i) by striking ``issuance of coupons'' and 
                        inserting ``issuance of electronic benefits 
                        transfer cards or coupons'';
                            (ii) by striking ``coupon issuer'' and 
                        inserting ``electronic benefits transfer or 
                        coupon issuer''; and
                            (iii) by striking ``coupons and 
                        allotments'' and inserting ``electronic 
                        benefits transfer cards, coupons, and 
                        allotments'';
                    (F) by deleting ``(1) The'' in subsections (g) and 
                (h) and inserting the following: ``(1) Except with 
                respect to electronic benefit transfer care systems 
                operated under section 7(j)(5), the''; and
                    (G) by striking subparagraph (i)(2)(A); and by 
                relettering (B) through (H) as (A) through (G).
            (5) Section 8(b) of such Act (7 U.S.C. 2017(b)) is amended 
        by striking ``coupons'' and inserting ``electronic benefits 
        transfer cards or coupons''.
            (6) Section 9 of such Act (7 U.S.C. 2018) is amended--
                    (A) in subsections (a) and (b), by striking 
                ``coupons'' each place it appears and inserting 
                ``coupons, or accept electronic benefits transfer 
                cards,''; and
                    (B) in subsection (a)(1)(B), by striking ``coupon 
                business'' and inserting ``electronic benefits transfer 
                cards and coupon business''.
            (7) Section 10 of such Act (7 U.S.C. 2019) is amended--
                    (A) by striking the section heading and inserting 
                the following: ``redemption of coupons or electronic 
                benefits transfer cards''; and
                    (B) in the first sentence--
                            (i) by inserting after ``provide for'' the 
                        following: ``reimbursing stores for program 
                        benefits provided and for'';
                            (ii) by inserting after ``food coupons'' 
                        the following: ``or use their members' 
                        electronic benefits transfer cards''; and
                            (iii) by striking the period at the end and 
                        inserting the following: ``, unless the center, 
                        organization, institution, shelter, group 
                        living arrangement, or establishment is 
                        equipped with a point-of-sale device for the 
                        purpose of participating in the electronic 
                        benefits transfer system.''.
            (8) Section 11 of such Act (7 U.S.C. 2020) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``coupons'' and inserting ``electronic 
                benefits transfer cards or coupons,'';
                    (B) in subsection (e)--
                            (i) in paragraph (2)--
                                    (I) by striking ``a coupon 
                                allotment'' and inserting ``an 
                                allotment''; and
                                    (II) by striking ``issuing 
                                coupons'' and inserting ``issuing 
                                electronic benefits transfer cards or 
                                coupons'';
                            (ii) in paragraph (7), by striking ``coupon 
                        issuance'' and inserting ``electronic benefits 
                        transfer card or coupon issuance'';
                            (iii) in paragraph (8)(C), by striking 
                        ``coupons'' and inserting ``benefits'';
                            (iv) in paragraph (9), by striking 
                        ``coupons'' each place it appears and inserting 
                        ``electronic benefits transfer cards or 
                        coupons'';
                            (v) in paragraph (11), by striking ``in the 
                        form of coupons'';
                            (vi) in paragraph (16), by striking 
                        ``coupons'' and inserting ``electronic benefits 
                        transfer card or coupons'';
                            (vii) in paragraph (17), by striking ``food 
                        stamps'' and replacing with ``benefits'';
                            (viii) in paragraph (21), by striking 
                        ``coupons'' and inserting ``electronic benefits 
                        transfer cards or coupons'';
                            (ix) in paragraph (24), by striking 
                        ``coupons'' and inserting ``benefits''; and
                            (x) in paragraph (25), by striking 
                        ``coupons'' each place it appears and inserting 
                        ``electronic benefits transfer cards or 
                        coupons''; and
                    (C) in subsection (h), by striking ``face value of 
                any coupon or coupons'' and inserting ``value of any 
                benefits''; and
                    (D) in subsection (n)--
                            (i) by striking ``both coupons'' each place 
                        it appears and inserting ``benefits under this 
                        Act''; and
                            (ii) by striking ``of coupons'' and 
                        inserting ``of benefits''.
            (9) Section 12 of such Act (7 U.S.C. 2021) is amended--
                    (A) in subsection (b)(3), by striking ``coupons'' 
                each place it appears and inserting ``electronic 
                benefits transfer cards or coupons'';
                    (B) in subsection (d)--
                            (i) in the first sentence--
                                    (I) by inserting after ``redeem 
                                coupons'' the following: ``and to 
                                accept electronic benefits transfer 
                                cards''; and
                                    (II) by striking ``value of 
                                coupons'' and inserting ``value of 
                                benefits and coupons''; and
                            (ii) in the third sentence, by striking 
                        ``coupons'' each place it appears and inserting 
                        ``benefits''; and
                    (C) in the first sentence of subsection (f)--
                            (i) by inserting after ``to accept and 
                        redeem food coupons'' the following: 
                        ``electronic benefits transfer cards, or to 
                        accept and redeem food coupons,''; and
                            (ii) by inserting before the period at the 
                        end the following: ``or program benefits''.
            (10) Section 13 of such Act (7 U.S.C. 2022) is amended by 
        striking ``coupons'' each place it appears and inserting 
        ``benefits''.
            (11) Section 15 of such Act (7 U.S.C. 2024) is amended--
                    (A) in subsection (a), by striking ``issuance or 
                presentment for redemption'' and inserting ``issuance, 
                presentment for redemption, or use of electronic 
                benefits transfer cards or'';
                    (B) in the first sentence of subsection (b)(1)--
                            (i) by inserting after ``coupons, 
                        authorization cards,'' each place it appears 
                        the following: ``electronic benefits transfer 
                        cards,''; and
                            (ii) by striking ``coupons or authorization 
                        cards'' each place it appears and inserting the 
                        following: ``coupons, authorization cards, or 
                        electronic benefits transfer cards'';
                    (C) in the first sentence of subsection (c)--
                            (i) by striking ``coupons'' and inserting 
                        ``a coupon or electronic benefits transfer 
                        card''; and
                            (ii) strike ``such coupons are'' and 
                        inserting ``the payment or redemption is'';
                    (D) in subsection (d) striking ``coupons'' and 
                replacing with ``Benefits'';
                    (E) in subsection (e) after ``coupons'' inserting 
                ``or electronic benefits transfer cards'';
                    (F) in subsection (f) after ``coupon'' inserting 
                ``or electronic benefits transfer card''; and
                    (G) in the first sentence of subsection (g), by 
                inserting after ``coupons, authorization cards,'' the 
                following: ``electronic benefits transfer cards,''.
            (12) Section 16 (7 U.S.C. 2025) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (2) after ``coupons'' by 
                        inserting ``electronic benefits transfer 
                        cards'';
                            (ii) in paragraph (3) by inserting after 
                        ``households'' the following: ``, including the 
                        cost of providing equipment necessary for 
                        retail food stores to participate in an 
                        electronic benefits transfer system'';
                    (B) by deleting subsection (d);
                    (C) by redesignating subsections (e) through (j) as 
                subsections (d) through (i), respectively;
                    (D) in subsection (g)(5) (as redesignated by 
                paragraph (3))--
                            (i) in subparagraph (A), by striking 
                        ``(A)''; and
                            (ii) by striking subparagraph (B);
                    (E) in subsection (h) (as redesignated by paragraph 
                (3)), by striking paragraph (3); and
                    (F) by striking subsection (i) (as redesignated by 
                paragraph (3)).
            (13) Section 17 of such Act (7 U.S.C. 2026) is amended--
                    (A) in the last sentence of subsection (a)(2), by 
                striking ``coupon'' and inserting ``benefit'';
                    (B) by deleting the last sentence of paragraph 
                (b)(2);
                    (C) by deleting the last sentence of subsection 
                (c);
                    (D) in subsection (d)(1)(B), by striking 
                ``coupons'' each place it appears and inserting 
                ``benefits'';
                    (E) by deleting the last sentence of subsection 
                (e);
                    (F) by striking subsection (f); and
                    (G) by redesignating subsections (g) through (k) as 
                subsections (f) through (j), respectively.
            (14) Section 21 of such Act (7 U.S.C. 2030) is amended--
                    (A) by striking ``coupons'' each place it appears 
                (other than in subsections (b)(2)(A)(ii) and (d)) and 
                inserting ``benefits'';
                    (B) in subsection (b)(2)(A)(ii), by striking 
                ``coupons'' and inserting ``electronic benefits 
                transfer cards or coupons''; and
                    (C) in subsection (d)--
                            (i) in paragraph (2), by striking 
                        ``Coupons'' and inserting ``Benefits''; and
                            (ii) in paragraph (3), by striking ``in 
                        food coupons''.
            (15) Section 22 of such Act (7 U.S.C. 2031) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (3)(D)--
                                    (I) in clause (ii), by striking 
                                ``coupons'' and inserting ``benefits''; 
                                and
                                    (II) in clause (iii), by striking 
                                ``coupons'' and inserting ``electronic 
                                benefits transfer benefits'';
                            (ii) in paragraph (9), by striking 
                        ``coupons'' and inserting ``benefits'';
                            (iii) in paragraph (10)(B)--
                                    (I) in the second sentence of 
                                clause (I), by striking ``Food 
                                coupons'' and inserting ``Program 
                                benefits''; and
                                    (II) in clause (ii)--
                                            (aa) in the second 
                                        sentence, by striking ``Food 
                                        coupons'' and inserting 
                                        ``Benefits''; and
                                            (bb) in the third sentence, 
                                        by striking ``food coupons'' 
                                        each place it appears and 
                                        inserting ``benefits'';
                    (B) in subsection (d), by striking ``coupons'' each 
                place it appears and inserting ``benefits'';
                    (C) in subsection (g)(l)(A), by striking 
                ``coupon''; and
                    (D) in subsection (h), by striking ``food coupons'' 
                and inserting ``benefits''.
            (16) Section 1956(c)(7)(D) of title 18, United States Code, 
        is amended by inserting ``electronic benefits transfer cards 
        or'' before ``coupons having''.

SEC. 321. MINIMUM BENEFIT.

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

SEC. 322. BENEFITS ON RECERTIFICATION.

    Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(c)(2)(B)) is amended by striking ``of more than one month''.

SEC. 323. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.

    Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Optional combined allotment for expedited 
        households.--A State agency may provide to an eligible 
        household applying after the 15th day of a month, in lieu of 
        the initial allotment of the household and the regular 
        allotment of the household for the following month, an 
        allotment that is the aggregate of the initial allotment and 
        the first regular allotment, which shall be provided in 
        accordance with section 11(e)(3) in the case of a household 
        that is not entitled to expedited service or in accordance with 
        paragraphs (3) and (9) of section 11(e) in the case of a 
        household that is entitled to expedited service.''.

SEC. 324. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by striking subsection (d) and inserting the following:
    ``(d) Reduction of Public Assistance Benefits.--
            ``(1) In general.--If the benefits of a household are 
        reduced under a Federal, State, or local law relating to a 
        welfare or public assistance program for the failure to perform 
        an action required under the law or program, for the duration 
        of the reduction--
                    ``(A) the household may not receive an increased 
                allotment as the result of a decrease in the income of 
                the household to the extent that the decrease is the 
                result of the reduction; and
                    ``(B) the State agency may reduce the allotment of 
                the household by not more than 25 percent.
            ``(2) Optional method.--In carrying out paragraph (1), a 
        State agency may consider, for the duration of a reduction 
        referred to under paragraph (1), the benefits of the household 
        under a welfare or public assistance program before the 
        reduction as income of the household after the reduction.
            ``(3) Rules and procedures.--If the allotment of a 
        household is reduced under this subsection for a failure to 
        perform an action required under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), the State agency 
        may use the rules and procedures that apply under part A of 
        title IV of the Act to reduce the allotment under the food 
        stamp program.''.

SEC. 325. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN INSTITUTIONS.

    Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended 
by adding at the end the following:
    ``(f) Allotments for Households Residing in Institutions.--
            ``(1) In general.--In the case of an individual who resides 
        in a homeless shelter, or in an institution or center for the 
        purpose of a drug or alcoholic treatment program, described in 
        the last sentence of section 3(i), a State agency may provide 
        an allotment for the individual to--
                    ``(A) the institution as an authorized 
                representative for the individual for a period that is 
                less than 1 month; and
                    ``(B) the individual, if the individual leaves the 
                institution.
            ``(2) Direct payment.--A State agency may require an 
        individual referred to in paragraph (1) to designate the 
        shelter, institution, or center in which the individual resides 
        as the authorized representative of the individual for the 
        purpose of receiving an allotment.''.

SEC. 326. OPERATION OF FOOD STAMP OFFICES.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2)(A) that the State agency shall establish procedures 
        governing the operation of food stamp offices that the State 
        agency determines best serve households in the State, including 
        households with special needs, such as households with elderly 
        or disabled members, households in rural areas with low-income 
        members, homeless individuals, households residing on 
        reservations, and households in which a substantial number of 
        members speak a language other than English.
            ``(B) In carrying out subparagraph (A), a State agency--
                    ``(i) shall provide timely, accurate, and fair 
                service to applicants for, and participants in, the 
                food stamp program;
                    ``(ii) shall permit an applicant household to apply 
                to participate in the program on the same day that the 
                household first contacts a food stamp office in person 
                during office hours;
                    ``(iii) shall consider an application filed on the 
                date the applicant submits an application that contains 
                the name, address, and signature of the applicant; and
                    ``(iv) may establish operating procedures that vary 
                for local food stamp offices to reflect regional and 
                local differences within the State;'';
                    (B) in paragraph (3) (as amended by section 
                309(b))--
                            (i) by striking ``shall--'' and all that 
                        follows through ``provide each'' and inserting 
                        ``shall provide each''; and
                            (ii) by striking ``(B) assist'' and all 
                        that follows through ``representative of the 
                        State agency;'';
                    (C) by striking paragraph (14) and inserting the 
                following:
            ``(14) the standards and procedures used by the State 
        agency under section 6(d)(1)(D) to determine whether an 
        individual is eligible to participate under section 
        6(d)(1)(A);''; and
                    (D) by striking paragraph (25) and inserting the 
                following:
            ``(25) a description of the work supplementation or support 
        program, if any, carried out by the State agency under section 
        16(b);''; and
            (2) in subsection (i)--
                    (A) by striking ``(i) Notwithstanding'' and all 
                that follows through ``(2)'' and inserting the 
                following:
    ``(i) Application and Denial Procedures.--
            ``(1) Application procedures.--Notwithstanding any other 
        provision of law,''; and
                    (B) by striking ``; (3) households'' and all that 
                follows through ``title IV of the Social Security Act. 
                No'' and inserting a period and the following:
            ``(2) Denial and termination.--Other than in a case of 
        disqualification as a penalty for failure to comply with a 
        public assistance program rule or regulation, no''.

SEC. 327. STATE EMPLOYEE AND TRAINING STANDARDS.

    Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(6)) is amended--
            (1) by striking ``(A)''; and
            (2) by striking subparagraphs (B) through (E).

SEC. 328. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

    Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) (as 
amended by section 315(b)) is further amended--
            (1) in paragraph (8)--
                    (A) by striking ``that (A) such'' and inserting the 
                following: ``that--
                    ``(A) the'';
                    (B) by striking ``law, (B) notwithstanding'' and 
                inserting the following: ``law;
                    ``(B) notwithstanding'';
                    (C) by striking ``Act, and (C) such'' and inserting 
                the following: ``Act;
                    ``(C) the''; and
                    (D) by adding at the end the following:
                    ``(D) notwithstanding any other provision of law, 
                the address, social security number, and, when 
                available, photograph of any member of a household 
                shall be made available, on request, to any Federal, 
                State, or local law enforcement officer if the officer 
                furnishes the State agency with the name of the member 
                and notifies the agency that--
                            ``(i) the member--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, for a crime (or 
                                attempt to commit a crime) that, under 
                                the law of the place the member is 
                                fleeing, is a felony (or, in the case 
                                of New Jersey, a high misdemeanor), or 
                                is violating a condition of probation 
                                or parole imposed under Federal or 
                                State law; or
                                    ``(II) has information that is 
                                necessary for the officer to conduct 
                                the official duties of the officer;
                            ``(ii) the location or apprehension of the 
                        member is an official duty of the officer; and
                            ``(iii) the request is being made in the 
                        proper exercise of the official duties of the 
                        officer; and
                    ``(E) the safeguards shall not prevent compliance 
                with paragraph (27);''; and
            (3) by adding at the end the following:
            ``(27) that the State agency shall furnish the Immigration 
        and Naturalization Service with the name of, address of, and 
        identifying information on any individual the State agency 
        knows is unlawfully in the United States; and''.

SEC. 329. EXPEDITED COUPON SERVICE.

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

SEC. 330. FAIR HEARINGS.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended 
by adding at the end the following:
    ``(p) Withdrawing Fair Hearing Requests.--A household may withdraw, 
orally or in writing, a request by the household for a fair hearing 
under subsection (e)(10). If the withdrawal request is an oral request, 
the State agency shall provide a written notice to the household 
confirming the request and providing the household with an opportunity 
to request a hearing.''.

SEC. 331. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) (as 
amended by section 330) is further amended by adding at the end the 
following:
    ``(q) State Verification Option.--Notwithstanding any other 
provision of law, a State agency shall not be required to use an income 
and eligibility verification system established under section 1137 of 
the Social Security Act (42 U.S.C. 1320b-7).''.

SEC. 332. COLLECTION OF OVERISSUANCES.

    (a) In General.--Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 
2022) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Collection of Overissuances.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, a State agency shall collect any overissuance of 
        coupons issued to a household by--
                    ``(A) reducing the allotment of the household;
                    ``(B) withholding unemployment compensation from a 
                member of the household under subsection (c);
                    ``(C) recovering from Federal pay or a Federal 
                income tax refund under subsection (d); or
                    ``(D) any other means.
            ``(2) Cost effectiveness.--Paragraph (1) shall not apply if 
        the State agency demonstrates to the satisfaction of the 
        Secretary that all of the means referred to in paragraph (1) 
        are not cost effective.
            ``(3) Hardships.--A State agency may not use an allotment 
        reduction under paragraph (1)(A) as a means of collecting an 
        overissuance from a household if the allotment reduction would 
        cause a hardship on the household, as determined by the State 
        agency.
            ``(4) Maximum reduction absent fraud.--If a household 
        received an overissuance of coupons without any member of the 
        household being found ineligible to participate in the program 
        under section 6(b)(1) and a State agency elects to reduce the 
        allotment of the household under paragraph (1)(A), the State 
        agency shall reduce the monthly allotment of the household 
        under paragraph (1)(A) by the greater of--
                    ``(A) 10 percent of the monthly allotment of the 
                household; or
                    ``(B) $10.
            ``(5) Procedures.--A State agency shall collect an 
        overissuance of coupons issued to a household under paragraph 
        (1) in accordance with requirements established by the State 
        agency for providing notice, electing a means of payment, and 
        establishing a time schedule for payment.''; and
            (2) in subsection (d)--
                    (A) by striking ``as determined under subsection 
                (b) and except for claims arising from an error of the 
                State agency,'' and inserting ``, as determined under 
                subsection (b)(1),''; and
                    (B) by inserting before the period at the end the 
                following: ``or a Federal income tax refund as 
                authorized by section 3720A of title 31, United States 
                Code''.
    (b) Conforming Amendment.--Section 11(e)(8) of the Act (7 U.S.C. 
2020(e)(8)) is amended--
            (1) by striking ``and excluding claims'' and all that 
        follows through ``such section''; and
            (2) by inserting before the semicolon at the end the 
        following: ``or a Federal income tax refund as authorized by 
        section 3720A of title 31, United States Code''.

SEC. 333. TERMINATION OF FEDERAL MATCH FOR OPTIONAL INFORMATION 
              ACTIVITIES.

    (a) In General.--Section 16(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(a)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) through (8) as 
        paragraphs (4) through (7), respectively.
    (b) Conforming Amendment.--Section 16(g) of the Act (7 U.S.C. 
2025(g)) is amended by striking ``an amount equal to'' and all that 
follows through ``1991, of'' and inserting ``the amount provided under 
subsection (a)(5) for''.

SEC. 334. STANDARDS FOR ADMINISTRATION.

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

SEC. 335. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) (as 
amended by section 334(a)) is further amended by inserting after 
subsection (a) the following:
    ``(b) Work Supplementation or Support Program.--
            ``(1) Definition.--In this subsection, the term `work 
        supplementation or support program' means 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 and employing a new employee who is a public 
        assistance recipient.
            ``(2) Program.--A State agency may elect to use amounts 
        equal to the allotment that would otherwise be allotted to a 
        household under the food stamp program, but for the operation 
        of this subsection, for the purpose of subsidizing or 
        supporting jobs under a work supplementation or support program 
established by the State.
            ``(3) Procedure.--If a State agency makes an election under 
        paragraph (2) and identifies each household that participates 
        in the food stamp program that contains an individual who is 
        participating in the work supplementation or support program--
                    ``(A) the Secretary shall pay to the State agency 
                an amount equal to the value of the allotment that the 
                household would be eligible to receive but for the 
                operation of this subsection;
                    ``(B) the State agency shall expend the amount paid 
                under subparagraph (A) in accordance with the work 
                supplementation or support program in lieu of providing 
                the allotment that the household would receive but for 
                the operation of this subsection;
                    ``(C) for purposes of--
                            ``(i) sections 5 and 8(a), the amount 
                        received under this subsection shall be 
                        excluded from household income and resources; 
                        and
                            ``(ii) section 8(b), the amount received 
                        under this subsection shall be considered to be 
                        the value of an allotment provided to the 
                        household; and
                    ``(D) the household shall not receive an allotment 
                from the State agency for the period during which the 
                member continues to participate in the work 
                supplementation or support program.
            ``(4) Other work requirements.--No individual shall be 
        excused, by reason of the fact that a State has a work 
        supplementation or support program, from any work requirement 
        under section 6(d), except during the periods in which the 
        individual is employed under the work supplementation or 
        support program.
            ``(5) Maximum length of participation.--A work 
        supplementation or support program may not allow the 
        participation of any individual for longer than 1 year, unless 
        the Secretary approves a longer period.''.

SEC. 336. WAIVER AUTHORITY.

    Section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(A)) is amended--
            (1) by striking ``benefits to eligible households, 
        including'' and inserting the following: ``benefits to eligible 
        households. The Secretary may waive the requirements of this 
        Act to the extent necessary to conduct a pilot or experimental 
        project, including a project designed to test innovative 
        welfare reform, promote work, and allow conformity with other 
        Federal, State, and local government assistance programs, 
        except that a project involving the payment of benefits in the 
        form of cash shall maintain the average value of allotments for 
        affected households as a group. Pilot or experimental projects 
        may include''; and
            (2) by striking ``The Secretary may waive'' and all that 
        follows through ``sections 5 and 8 of this Act.''.

SEC. 337. AUTHORIZATION OF PILOT PROJECTS.

    The last sentence of section 17(b)(1)(A) of the Food Stamp Act of 
1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 338. RESPONSE TO WAIVERS.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended by adding at the end the following:
                    ``(C) Response to waivers.--
                            ``(i) Response.--Not later than 60 days 
                        after the date of receiving a request for a 
                        waiver under subparagraph (A), the Secretary 
                        shall provide a response that--
                                    ``(I) approves the waiver request;
                                    ``(II) denies the waiver request 
                                and explains any modification needed 
                                for approval of the waiver request;
                                    ``(III) denies the waiver request 
                                and explains the grounds for the 
                                denial; or
                                    ``(IV) requests clarification of 
                                the waiver request.
                            ``(ii) Failure to respond.--If the 
                        Secretary does not provide a response under 
                        clause (i) not later than 60 days after 
                        receiving a request for a waiver, the waiver 
                        shall be considered approved.
                            ``(iii) Notice of denial.--On denial of a 
                        waiver request under clause (i)(III), the 
                        Secretary shall provide a copy of the waiver 
                        request and the grounds for the denial to the 
                        Committee on Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate.''.

SEC. 339. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by adding at the end the following:
    ``(m) Private Sector Employment Initiatives.--
            ``(1) Election to participate.--
                    ``(A) In general.--Subject to the other provisions 
                of this subsection, a State may elect to carry out a 
                private sector employment initiative program under this 
                subsection.
                    ``(B) Requirement.--A State shall be eligible to 
                carry out a private sector employment initiative under 
                this subsection only if not less than 50 percent of the 
                households that received food stamp benefits during the 
                summer of 1993 also received benefits under a State 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.) during the summer 
                of 1993.
            ``(2) Procedure.--A State that has elected to carry out a 
        private sector employment initiative under paragraph (1) may 
        use amounts equal to the food stamp allotments that would 
        otherwise be allotted to a household under the food stamp 
        program, but for the operation of this subsection, to provide 
        cash benefits in lieu of the food stamp allotments to the 
        household if the household is eligible under paragraph (3).
            ``(3) Eligibility.--A household shall be eligible to 
        receive cash benefits under paragraph (2) if an adult member of 
        the household--
                    ``(A) has worked in unsubsidized employment in the 
                private sector for not less than the preceding 90 days;
                    ``(B) has earned not less than $350 per month from 
                the employment referred to in subparagraph (A) for not 
                less than the preceding 90 days;
                    ``(C)(i) is eligible to receive benefits under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.); or
                    ``(ii) was eligible to receive benefits under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) at the time 
                the member first received cash benefits under this 
                subsection and is no longer eligible for the State 
                program because of earned income;
                    ``(D) is continuing to earn not less than $350 per 
                month from the employment referred to in subparagraph 
                (A); and
                    ``(E) elects to receive cash benefits in lieu of 
                food stamp benefits under this subsection.
            ``(4) Evaluation.--A State that operates a program under 
        this subsection for 2 years shall provide to the Secretary a 
        written evaluation of the impact of cash assistance under this 
        subsection. The State agency shall determine the content of the 
        evaluation.''.

SEC. 340. REAUTHORIZATION OF APPROPRIATIONS.

    The first sentence of section 18(a)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 341. REAUTHORIZATION OF PUERTO RICO NUTRITION ASSISTANCE PROGRAM.

    The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 
1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' 
and all that follows through ``fiscal year 1995'' and inserting the 
following: ``$1,143,000,000 for each of fiscal years 1995 and 1996, 
$1,182,000,000 for fiscal year 1997, $1,223,000,000 for fiscal year 
1998, $1,266,000,000 for fiscal year 1999, $1,310,000,000 for fiscal 
year 2000, $1,343,000,000 for fiscal year 2001, and $1,376,000,000 for 
fiscal year 2002''

SEC. 342. SIMPLIFIED FOOD STAMP PROGRAM.

    (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 
is amended by adding at the end the following:

``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) Election.--Subject to subsection (c), a State agency may 
elect to carry out a Simplified Food Stamp Program (referred to in this 
section as a `Program') under this section.
    ``(b) Operation of Program.--
            ``(1) In general.--If a State agency elects to carry out a 
        Program, within the State or a political subdivision of the 
        State--
                    ``(A) a household in which all members receive 
                assistance under a State program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 601 et 
                seq.) shall automatically be eligible to participate in 
                the Program; and
                    ``(B) subject to subsection (e), benefits under the 
                Program shall be determined under rules and procedures 
                established by the State under--
                            ``(i) a State program funded under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.);
                            ``(ii) the food stamp program (other than 
                        section 25); or
                            ``(iii) a combination of a State program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.) and the 
                        food stamp program.
            ``(2) Shelter standard.--The State agency may elect to 
        apply 1 shelter standard to a household that receives a housing 
        subsidy and another shelter standard to a household that does 
        not receive the subsidy.
    ``(c) Approval of Program.--
            ``(1) State plan.--A State agency may not operate a Program 
        unless the Secretary approves a State plan for the operation of 
        the Program under paragraph (2).
            ``(2) Approval of plan.--
                    ``(A) In general.--The Secretary shall approve any 
                State plan to carry out a Program if the Secretary 
                determines that the plan--
                            ``(i) complies with this section; and
                            ``(ii) would not increase Federal costs 
                        incurred under this Act.
                    ``(B) Definition of federal costs.--In this 
                section, the term `Federal costs' does not include any 
                Federal costs incurred under section 17.
    ``(d) Increased Federal Costs.--
            ``(1) Determination.--
                    ``(A) In general.--The Secretary shall determine 
                whether a Program being carried out by a State agency 
                is increasing Federal costs under this Act.
                    ``(B) No excluded households.--In making a 
                determination under subparagraph (A), the Secretary 
                shall not require the State agency to collect or report 
                any information on households not included in the 
                Program.
                    ``(C) Alternative accounting periods.--The 
                Secretary may approve the request of a State agency to 
                apply alternative accounting periods to determine if 
                Federal costs do not exceed the Federal costs had the 
                State agency not elected to carry out the Program.
            ``(2) Notification.--If the Secretary determines that the 
        Program has increased Federal costs under this Act for any 
        fiscal year, the Secretary shall notify the State agency not 
        later than January 1 of the immediately succeeding fiscal year.
            ``(3) Return of funds.--
                    ``(A) In general.--If the Secretary determines that 
                the Program has increased Federal costs under this Act 
                for a 2-year period, including a fiscal year for which 
                notice was given under paragraph (2) and an immediately 
                succeeding fiscal year, the State agency shall pay to 
                the Treasury of the United States the amount of the 
                increased costs.
                    ``(B) Enforcement.--If the State agency does not 
                pay an amount due under subparagraph (A) on a date that 
                is not later than 90 days after the date of the 
                determination, the Secretary shall reduce amounts 
                otherwise due to the State agency for administrative 
                costs under section 16(a).
    ``(e) Rules and Procedures.--
            ``(1) In general.--Except as provided by paragraph (2), a 
        State may apply--
                    ``(A) the rules and procedures established by the 
                State under--
                            ``(i) the State program funded under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.); or
                            ``(ii) the food stamp program; or
                    ``(B) the rules and procedures of 1 of the programs 
                to certain matters and the rules and procedures of the 
                other program to all remaining matters.
            ``(2) Standardized deductions.--The State may standardize 
        the deductions provided under section 5(e). In developing the 
        standardized deduction, the State shall give consideration to 
        the work expenses, dependent care costs, and shelter costs of 
        participating households.
            ``(3) Requirements.--In operating a Program, the State 
        shall comply with--
                    ``(A) subsections (a) through (g) of section 7;
                    ``(B) section 8(a), except that the income of a 
                household may be determined under a State program 
                funded under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.);
                    ``(C) subsections (b) and (d) of section 8;
                    ``(D) subsections (a), (c), (d), and (n) of section 
                11;
                    ``(E) paragraph (3) of section 11(e), to the extent 
                that the paragraph requires that an eligible household 
                be certified and receive an allotment for the period of 
                application not later than 30 days after filing an 
                application;
                    ``(F) paragraphs (8), (9), (12), (17), (19), (21), 
                and (27) of section 11(e);
                    ``(G) section 11(e)(10) or a comparable requirement 
                established by the State under a State program funded 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.); and
                    ``(H) section 16.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)) (as amended by sections 315(b) and 328) is further amended by 
adding at the end the following:
            ``(28) the plans of the State agency for operating, at the 
        election of the State, a program under section 24, including--
                    ``(A) the rules and procedures to be followed by 
                the State to determine food stamp benefits;
                    ``(B) how the State will address the needs of 
                households that experience high shelter costs in 
                relation to the incomes of the households; and
                    ``(C) a description of the method by which the 
                State will carry out a quality control system under 
                section 16(c).''.
    (c) Conforming Amendments.--
            (1) Section 8 of the Act (7 U.S.C. 2017) (as amended by 
        section 325) is further amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e).
            (2) Section 17 of the Act (7 U.S.C. 2026) (as amended by 
        section 339) is further amended--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsections (j) through (m) as 
                subsections (i) through (l), respectively.

SEC. 343. OPTIONAL STATE FOOD ASSISTANCE BLOCK GRANT.

    (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 
(as amended by section 342) is further amended by adding at the end the 
following:

``SEC. 25. OPTIONAL STATE FOOD ASSISTANCE BLOCK GRANT.

    ``(a) Establishment.--The Secretary shall establish a program to 
make grants to States in accordance with this section to provide--
            ``(1) food assistance to needy individuals and families 
        residing in the State;
            ``(2) at the option of a State, wage subsidies and payments 
        in return for work for needy individuals under the program;
            ``(3) funds to operate an employment and training program 
        under section (g)(2) for needy individuals under the program; 
        and
            ``(4) funds for administrative costs incurred in providing 
        the assistance.
    ``(b) Election.--
            ``(1) In general.--A State may elect to participate in the 
        program established under subsection (a).
            ``(2) Election revocable.--A State that elects to 
        participate in the program established under subsection (a) may 
        subsequently reverse its election only once thereafter. 
        Following such reversal, the State shall only be eligible to 
        participate in the food stamp program in accordance with the 
        other sections of this Act and shall not receive a block grant 
        under this section.
            ``(3) Program exclusive.--A State that is participating in 
        the program established under subsection (a) shall not be 
        subject to, or receive any benefit under, this Act except as 
        provided in this section.
            ``(4) Sunset of election upon increase in number of hungry 
        children.--
                    ``(A) Findings.--The Congress finds that--
                            ``(i) on March 29, 1995 the Senate adopted 
                        a resolution stating that Congress should not 
                        enact or adopt any legislation that will 
                        increase the number of children who are hungry;
                            ``(ii) it is not the intent of this bill to 
                        cause more children to be hungry;
                            ``(iii) the Food Stamp Program serves to 
                        prevent child hunger; and
                            ``(iv) a State's election to participate in 
                        the optional State food assistance block grant 
                        program should not serve to increase the number 
                        of hungry children in that State.
                    ``(B) Sunset.--If the Secretary of Health and Human 
                Services makes two successive findings that the hunger 
                rate among children in a State is significantly higher 
                in a State that has elected to participate in a program 
                established under subsection (a) than it would have 
                been had there been no such election, 180 days after 
                the second such finding such election shall be 
                permanently and irreversibly revoked and the provisions 
                of paragraphs (1) and (2) shall not be applicable to 
                that State.
                    ``(C) Procedure for finding by secretary.--In 
                making the finding described in subparagraph (B), the 
                Secretary shall adhere to the following procedure:
                            ``(i) Every three years, the Secretary 
                        shall develop data and report to Congress with 
                        respect to each State that has elected to 
                        participate in a program established under 
                        subsection (a) whether the child hunger rate in 
                        such State is significantly higher than it 
                        would have been had the State not made such 
                        election.
                            ``(ii) The Secretary shall provide the 
                        report required under clause (i) to all States 
                        that have elected to participate in a program 
                        established under subsection (a), and the 
                        Secretary shall provide each State for which 
                        the Secretary determined that the child hunger 
                        rate is significantly higher than it would have 
                        been had the State not made such election with 
                        an opportunity to respond to such 
                        determination.
                            ``(iii) If the response by a State under 
                        clause (ii) does not result in the Secretary 
                        reversing the determination that the child 
                        hunger rate in that State is significantly 
                        higher than it would have been had the State 
                        not made such election, then the Secretary 
                        shall publish a finding as described in 
                        subparagraph (B).
    ``(c) Lead Agency.--
            ``(1) Designation.--A State desiring to receive a grant 
        under this section shall designate, in an application submitted 
        to the Secretary under subsection (d)(1), an appropriate State 
        agency that complies with paragraph (2) to act as the lead 
        agency for the State.
            ``(2) Duties.--
                    ``(A) In general.--The lead agency shall--
                            ``(i) administer, either directly, through 
                        other State agencies, or through local 
                        agencies, the assistance received under this 
                        section by the State;
                            ``(ii) develop the State plan to be 
                        submitted to the Secretary under subsection 
                        (d)(1);
                            ``(iii) in conjunction with the development 
                        of the State plan, hold at least 1 hearing in 
                        the State to provide to the public an 
                        opportunity to comment on the program under the 
                        State plan; and
                            ``(iv) coordinate the provision of food 
                        assistance under this section with other 
                        Federal, State, and local programs.
                    ``(B) Development of plan.--In the development of 
                the State plan described in subparagraph (A)(ii), the 
                lead agency shall consult with local governments and 
                private sector organizations regarding the plan and 
                design of the State plan so that services are provided 
                in a manner appropriate to local populations.
    ``(d) Application and Plan.--
            ``(1) Application.--To be eligible to receive assistance 
        under this section, a State shall prepare and submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary shall by 
        regulation require, including--
                    ``(A) an assurance that the State will comply with 
                the requirements of this section;
                    ``(B) a State plan that meets the requirements of 
                paragraph (3); and
                    ``(C) an assurance that the State will comply with 
                the requirements of the State plan under paragraph (3).
            ``(2) Annual plan.--The State plan contained in the 
        application under paragraph (1) shall be submitted for approval 
        annually.
            ``(3) Requirements of plan.--
                    ``(A) Lead agency.--The State plan shall identify 
                the lead agency.
                    ``(B) Use of block grant funds.--The State plan 
                shall provide that the State shall use the amounts 
                provided to the State for each fiscal year under this 
                section--
                            ``(i) to provide food assistance to needy 
                        individuals and families residing in the State, 
                        other than residents of institutions who are 
                        ineligible for food stamps under section 3(i);
                            ``(ii) at the option of a State, to provide 
                        wage subsidies and workfare under section 20(a) 
                        (except that any reference in section 20(a) to 
                        an allotment shall be considered a reference to 
                        the food assistance or benefits in lieu of food 
                        assistance received by an individual or family 
                        during a month under this section) for needy 
                        individuals and families participating in the 
                        program;
                            ``(iii) to administer an employment and 
                        training program under section (g)(2) for needy 
                        individuals under the program and to provide 
                        reimbursements to needy individuals and 
                        families as would be allowed under section 
                        16(h)(3); and
                            ``(iv) to pay administrative costs incurred 
                        in providing the assistance.
                    ``(C) Groups served.--The State plan shall describe 
                how the program will serve specific groups of 
                individuals and families and how the treatment will 
                differ from treatment under the food stamp program 
                under the other sections of this Act of the individuals 
                and families, including--
                            ``(i) elderly individuals and families;
                            ``(ii) migrants or seasonal farmworkers;
                            ``(iii) homeless individuals and families;
                            ``(iv) individuals and families who live 
                        under the supervision of institutions (other 
                        than incarcerated individuals);
                            ``(v) individuals and families with 
                        earnings; and
                            ``(vi) members of Indian tribes or tribal 
                        organizations.
                    ``(D) Assistance for entire state.--The State plan 
                shall provide that benefits under this section shall be 
                available throughout the entire State.
                    ``(E) Notice and hearings.--The State plan shall 
                provide that an individual or family who applies for, 
                or receives, assistance under this section shall be 
                provided with notice of, and an opportunity for a 
                hearing on, any action under this section that 
                adversely affects the individual or family.
                    ``(F) Other assistance.--
                            ``(i) Coordination.--The State plan may 
                        coordinate assistance received under this 
                        section with assistance provided under the 
                        State program funded under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.).
                            ``(ii) Penalties.--If an individual or 
                        family is penalized for violating part A of 
                        title IV of the Act, the State plan may reduce 
                        the amount of assistance provided under this 
                        section or otherwise penalize the individual or 
                        family.
                    ``(G) Assessment of needs.--The State plan shall 
                assess the food and nutrition needs of needy persons 
                residing in the State.
                    ``(H) Eligibility limitations.--The State plan 
                shall describe the income and resource eligibility 
                limitations that are established for the receipt of 
                assistance under this section.
                    ``(I) Receiving benefits in more than 1 
                jurisdiction.--The State plan shall establish a system 
                to verify and otherwise ensure that no individual or 
family shall receive benefits under this section in more than 1 
jurisdiction within the State.
                    ``(J) Privacy.--The State plan shall provide for 
                safeguarding and restricting the use and disclosure of 
                information about any individual or family receiving 
                assistance under this section.
                    ``(K) Other information.--The State plan shall 
                contain such other information as may be required by 
                the Secretary.
            ``(4) Approval of application and plan.--The Secretary 
        shall approve an application and State plan that satisfies the 
        requirements of this section.
    ``(e) Limitations on State Allotments.--
            ``(1) No individual or family entitlement to assistance.--
        Nothing in this section--
                    ``(A) entitles any individual or family to 
                assistance under this section; or
                    ``(B) limits the right of a State to impose 
                additional limitations or conditions on assistance 
                under this section.
            ``(2) Construction of facilities.--No funds made available 
        under this section shall be expended for the purchase or 
        improvement of land, or for the purchase, construction, or 
        permanent improvement of any building or facility.
    ``(f) Benefits for Aliens.--
            ``(1) Eligibility.--No individual shall be eligible to 
        receive benefits under a State plan approved under subsection 
        (d)(4) if the individual is not eligible to participate in the 
        food stamp program under section 6(f).
            ``(2) Income.--The State plan shall provide that the income 
        of an alien shall be determined in accordance with section 
        5(i).
    ``(g) Employment and Training.--
            ``(1) Work requirements.--No individual or member of a 
        family shall be eligible to receive benefits under a State plan 
        funded under this section if the individual is not eligible to 
        participate in the food stamp program under subsection (d) or 
        (n) of section 6.
            ``(2) Work programs.--Each State shall implement an 
        employment and training program under section 6(d)(4) for needy 
        individuals under the program.
    ``(h) Enforcement.--
            ``(1) Review of compliance with state plan.--The Secretary 
        shall review and monitor State compliance with this section and 
        the State plan approved under subsection (d)(4).
            ``(2) Noncompliance.--
                    ``(A) In general.--If the Secretary, after 
                reasonable notice to a State and opportunity for a 
                hearing, finds that--
                            ``(i) there has been a failure by the State 
                        to comply substantially with any provision or 
                        requirement set forth in the State plan 
                        approved under subsection (d)(4); or
                            ``(ii) in the operation of any program or 
                        activity for which assistance is provided under 
                        this section, there is a failure by the State 
                        to comply substantially with any provision of 
                        this section;
                the Secretary shall notify the State of the finding and 
                that no further payments will be made to the State 
                under this section (or, in the case of noncompliance in 
                the operation of a program or activity, that no further 
                payments to the State will be made with respect to the 
                program or activity) until the Secretary is satisfied 
                that there is no longer any failure to comply or that 
                the noncompliance will be promptly corrected.
                    ``(B) Other sanctions.--In the case of a finding of 
                noncompliance made pursuant to subparagraph (A), the 
                Secretary may, in addition to, or in lieu of, imposing 
                the sanctions described in subparagraph (A), impose 
                other appropriate sanctions, including recoupment of 
                money improperly expended for purposes prohibited or 
                not authorized by this section and disqualification 
                from the receipt of financial assistance under this 
                section.
                    ``(C) Notice.--The notice required under 
                subparagraph (A) shall include a specific 
                identification of any additional sanction being imposed 
                under subparagraph (B).
            ``(3) Issuance of regulations.--The Secretary shall 
        establish by regulation procedures for--
                    ``(A) receiving, processing, and determining the 
                validity of complaints concerning any failure of a 
                State to comply with the State plan or any requirement 
                of this section; and
                    ``(B) imposing sanctions under this section.
            ``(4) Income and eligibility verification system.--The 
        Secretary may withhold not more than 5 percent of the amount 
        allotted to a State under subsection (l)(2) if the State does 
        not use an income and eligibility verification system 
        established under section 1137 of the Social Security Act (42 
        U.S.C. 1320b-7).
    ``(i) Payments.--
            ``(1) In general.--For each fiscal year, the Secretary 
        shall pay to a State that has an application approved by the 
        Secretary under subsection (d)(4) an amount that is equal to 
        the allotment of the State under subsection (l)(2) for the 
        fiscal year.
            ``(2) Method of payment.--The Secretary shall make payments 
        to a State for a fiscal year under this section by issuing 1 or 
        more letters of credit for the fiscal year, with necessary 
        adjustments on account of overpayments or underpayments, as 
        determined by the Secretary.
            ``(3) Spending of funds by state.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), payments to a State from an allotment 
                under subsection (l)(2) for a fiscal year may be 
                expended by the State only in the fiscal year.
                    ``(B) Carryover.--The State may reserve up to 10 
                percent of an allotment under subsection (l)(2) for a 
                fiscal year to provide assistance under this section in 
                subsequent fiscal years, except that the reserved funds 
                may not exceed 30 percent of the total allotment 
                received under this section for a fiscal year.
            ``(4) Food assistance and administrative expenditures.--In 
        each fiscal year, of the Federal funds expended by a State 
        under this section--
                    ``(A) not less than 80 percent shall be for food 
                assistance; and
                    ``(B) not more than 6 percent shall be for 
                administrative expenses.
            ``(5) Provision of food assistance.--A State may provide 
        food assistance under this section in any manner determined 
        appropriate by the State to provide food assistance to needy 
        individuals and families in the State, such as electronic 
        benefits transfer limited to food purchases, coupons limited to 
        food purchases, or direct provision of commodities.
            ``(6) Definition of food assistance.--In this section, the 
        term `food assistance' means assistance that may be used only 
        to obtain food, as defined in section 3(g).
    ``(j) Audits.--
            ``(1) Requirement.--After the close of each fiscal year, a 
        State shall arrange for an audit of the expenditures of the 
        State during the program period from amounts received under 
        this section.
            ``(2) Independent auditor.--An audit under this section 
        shall be conducted by an entity that is independent of any 
        agency administering activities that receive assistance under 
        this section and be in accordance with generally accepted 
        auditing principles.
            ``(3) Payment accuracy.--Each annual audit under this 
        section shall include an audit of payment accuracy under this 
        section that shall be based on a statistically valid sample of 
        the caseload in the State.
            ``(4) Submission.--Not later than 30 days after the 
        completion of an audit under this section, the State shall 
        submit a copy of the audit to the legislature of the State and 
        to the Secretary.
            ``(5) Repayment of amounts.--Each State shall repay to the 
        United States any amounts determined through an audit under 
        this section to have not been expended in accordance with this 
        section or to have not been expended in accordance with the 
        State plan, or the Secretary may offset the amounts against any 
        other amount paid to the State under this section.
    ``(k) Nondiscrimination.--
            ``(1) In general.--The Secretary shall not provide 
        financial assistance for any program, project, or activity 
        under this section if any person with responsibilities for the 
        operation of the program, project, or activity discriminates 
        with respect to the program, project, or activity because of 
        race, religion, color, national origin, sex, or disability.
            ``(2) Enforcement.--The powers, remedies, and procedures 
        set forth in title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.) may be used by the Secretary to enforce 
        paragraph (1).
    ``(l) Allotments.--
            ``(1) Definition of state.--In this section, the term 
        `State' means each of the 50 States, the District of Columbia, 
        Guam, and the Virgin Islands of the United States.
            ``(2) State allotment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amounts made available under 
                section 18 of this Act for each fiscal year, the 
                Secretary shall allot to each State participating in 
                the program established under this section an amount 
                that is equal to the sum of--
                            ``(i) the greater of, as determined by the 
                        Secretary--
                                    ``(I) the total dollar value of all 
                                benefits issued under the food stamp 
                                program established under this Act 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 each of 
                                fiscal years 1992 through 1994; and
                            ``(ii) the greater of, as determined by the 
                        Secretary--
                                    ``(I) the total amount received by 
                                the State for administrative costs and 
                                the employment and training program 
                                under subsections (a) and (h), 
                                respectively, of section 16 of this Act 
                                for fiscal year 1994; or
                                    ``(II) the average per fiscal year 
                                of the total amount received by the 
                                State for administrative costs and the 
                                employment and training program under 
                                subsections (a) and (h), respectively, 
                                of section 16 of this Act for each of 
                                fiscal years 1992 through 1994.
                    ``(B) Insufficient funds.--If the Secretary finds 
                that the total amount of allotments to which States 
                would otherwise be entitled for a fiscal year under 
                subparagraph (A) will exceed the amount of funds that 
                will be made available to provide the allotments for 
                the fiscal year, the Secretary shall reduce the 
                allotments made to States under this subsection, on a 
                pro rata basis, to the extent necessary to allot under 
                this subsection a total amount that is equal to the 
                funds that will be made available.''.
    (b) Research On Optional State Food Assistance Block Grant.--
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) (as amended by 
section 339 and 342(c)(2)) is further amended by adding at the end the 
following:
    ``(m) Research On Optional State Food Assistance Block Grant.--The 
Secretary may conduct research on the effects and costs of a State 
program carried out under section 25.''.

SEC. 344. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, this subtitle and 
the amendments made by this subtitle shall become effective on October 
1, 1995.

                 Subtitle B--Anti-Fraud and Trafficking

SEC. 351. 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 card, cash or check issued as a coupon, or 
access device, including an electronic benefits transfer card or a 
personal identification number,''.

SEC. 352. 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 upon'' and 
        inserting ``1 year on''; and
            (2) in clause (ii), by striking ``1 year upon'' and 
        inserting ``2 years on''.

SEC. 353. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is 
amended by adding at the end the following:
            ``(3) Authorization periods.--The Secretary is authorized 
        to issue regulations establishing specific time periods during 
        which authorization to accept and redeem coupons under the food 
        stamp program shall be valid.''.

SEC. 354. SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF STORES BASED 
              ON LACK OF BUSINESS INTEGRITY.

    Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) (as 
amended by section 353) is further amended by adding at the end the 
following:
            ``(4) Periods for participation of stores and concerns.--
        The Secretary may issue regulations establishing specific time 
        periods during which a retail food store or wholesale food 
        concern that has an application for approval to accept and 
        redeem coupons denied, or that has an approval withdrawn, on 
        the basis of business integrity and reputation cannot submit a 
        new application for approval. The periods shall reflect the 
        severity of business integrity infractions that are the basis 
        of the denials or withdrawals.''.

SEC. 355. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.

    Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is 
amended--
            (1) in the first sentence, by inserting ``, which may 
        include relevant income and sales tax filing documents,'' after 
        ``submit information'' ; and
            (2) by inserting after the first sentence the following: 
        ``The regulations may require retail food stores and wholesale 
        food concerns to provide written authorization for the 
        Secretary to verify all relevant tax filings with appropriate 
        agencies and to obtain corroborating documentation from other 
        sources so that the accuracy of information provided by the 
        stores and concerns may be verified.''.

SEC. 356. WAITING PERIOD FOR STORES THAT INITIALLY FAIL TO MEET 
              AUTHORIZATION CRITERIA.

    Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is 
amended by adding at the end the following: ``A retail food store or 
wholesale food concern that has an application for approval to accept 
and redeem coupons denied because the store or concern does not meet 
criteria for approval established by the Secretary by regulation may 
not submit a new application for 6 months after the date of the 
denial.''.

SEC. 357. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.

    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is 
amended--
            (1) by striking the section heading;
            (2) by striking ``Sec. 12 (a) Any'' and inserting the 
        following:

``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
              STORES AND WHOLESALE FOOD CONCERNS.

    ``(a) Disqualification.--
            ``(1) In general.--Any''; and
            (3) in subsection (a), by adding at the end the following:
            ``(2) Basis.--Regulations issued pursuant to this Act shall 
        provide criteria for the finding of a violation, and the 
        suspension or disqualification of a retail food store or 
        wholesale food concern, on the basis of evidence that may 
        include facts established through on-site investigations, 
        inconsistent redemption data, or evidence obtained through 
        transaction reports under electronic benefits transfer 
        systems.''.

SEC. 358. DISQUALIFICATION OF STORES PENDING JUDICIAL AND 
              ADMINISTRATIVE REVIEW.

    (a) Authority.--Section 12(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2021(a)) (as amended by section 357) is further amended by 
adding at the end the following:
            ``(3) Disqualification pending review.--The regulations may 
        establish criteria under which the authorization of a retail 
        food store or wholesale food concern to accept and redeem 
        coupons may be suspended at the time the store or concern is 
        initially found to have committed a violation of a requirement 
        of the food stamp program that would result in a permanent 
        disqualification. The suspension may coincide with the period 
        of a review under section 14. The Secretary shall not be liable 
        for the value of any sales lost during a suspension or 
        disqualification period.''.
    (b) Review.--Section 14(a) of the Act (7 U.S.C. 2023(a)) is 
amended--
            (1) in the first sentence, by striking ``disqualified or 
        subjected'' and inserting ``suspended, disqualified, or 
        subjected'';
            (2) in the fifth sentence, by inserting before the period 
        at the end the following: ``, except that, in the case of the 
        suspension of a retail food store or wholesale food concern 
        under section 12(a)(3), the suspension shall remain in effect 
        pending any judicial or administrative review of the proposed 
        disqualification action, and the period of suspension shall be 
        considered a part of any period of disqualification that is 
        imposed''; and
            (3) by striking the last sentence.

SEC. 359. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE 
              WIC PROGRAM.

    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended 
by adding at the end the following:
    ``(g) Disqualification of Retailers Who Are Disqualified Under the 
WIC Program.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing criteria for the disqualification of an approved 
        retail food store and a wholesale food concern that is 
        disqualified from accepting benefits under the special 
        supplemental nutrition program for women, infants, and children 
        established under section 17 of the Child Nutrition Act of 1966 
        (7 U.S.C. 1786).
            ``(2) Terms.--A disqualification under paragraph (1)--
                    ``(A) shall be for the same period as the 
                disqualification from the program referred to in 
                paragraph (1);
                    ``(B) may begin at a later date than the 
                disqualification from the program referred to in 
                paragraph (1); and
                    ``(C) notwithstanding section 14, shall not be 
                subject to judicial or administrative review.''.

SEC. 360. PERMANENT DEBARMENT OF RETAILERS WHO INTENTIONALLY SUBMIT 
              FALSIFIED APPLICATIONS.

    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) (as 
amended by section 359) is further amended by adding at the end the 
following:
    ``(h) Falsified Applications.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing for the permanent disqualification of a retail food 
        store, or wholesale food concern, that knowingly submits an 
        application for approval to accept and redeem coupons that 
        contains false information about a substantive matter that was, 
        or could have been, a basis for approving the application.
            ``(2) Review.--A disqualification under paragraph (1) shall 
        be subject to judicial and administrative review under section 
        14, except that the disqualification shall remain in effect 
        pending the review.''.

SEC. 361. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

    (a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--The 
first sentence of section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 
2024(g)) is amended by striking ``or intended to be furnished''.
    (b) Criminal Forfeiture.--Section 15 of the Act (7 U.S.C. 2024)) is 
amended by adding at the end the following:
    ``(h) Criminal Forfeiture.--
                    ``(A) In general.--Any person convicted of 
                violating subsection (b) or (c) involving food stamp 
                benefits having an aggregate value of not less than 
                $5,000, shall forfeit to the United States--
                            ``(i) any food stamp benefits and any 
                        property constituting, or derived from, or 
                        traceable to any proceeds the person obtained 
                        directly or indirectly as a result of the 
                        violation; and
                            ``(ii) any food stamp benefits and any 
                        property of the person used, or intended to be 
                        used, in any manner or part, to commit, or to 
                        facilitate the commission of the violation.
                    ``(B) Sentence.--In imposing a sentence on a person 
                under subparagraph (A), a court shall order that the 
                person forfeit to the United States all property 
                described in this subsection.
                    ``(C) Procedures.--Any food stamp benefits or 
                property subject to forfeiture under this subsection, 
                any seizure or disposition of the benefits or property, 
                and any administrative or judicial proceeding relating 
                to the benefits or property, shall be governed by 
                subsections (b), (c), (e), and (g) through (p) of 
                section 413 of the Comprehensive Drug Abuse Prevention 
                and Control Act of 1970 (21 U.S.C. 853), if not 
                inconsistent with this subsection.
            ``(3) Excluded property.--This subsection shall not apply 
        to property referred to in subsection (g).''.

SEC. 362. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall become 
effective on October 1, 1995.

                   TITLE IV--CHILD NUTRITION PROGRAMS

                    Subtitle A--Reimbursement Rates

SEC. 401. TERMINATION OF ADDITIONAL PAYMENT FOR LUNCHES SERVED IN HIGH 
              FREE AND REDUCED PRICE PARTICIPATION SCHOOLS.

    (a) In General.--Section 4(b)(2) of the National School Lunch Act 
(42 U.S.C. 1753(b)(2)) is amended by striking ``except that'' and all 
that follows through ``2 cents more''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 402. VALUE OF FOOD ASSISTANCE.

    (a) In General.--Section 6(e)(1) of the National School Lunch Act 
(42 U.S.C. 1755(e)(1)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) Adjustments.--
                            ``(i) In general.--The value of food 
                        assistance for each meal shall be adjusted each 
                        July 1 by the annual percentage change in a 3-
                        month average value of the Price Index for 
                        Foods Used in Schools and Institutions for 
                        March, April, and May each year.
                            ``(ii) Adjustments.--Except as otherwise 
                        provided in this subparagraph, in the case of 
                        each school year, the Secretary shall--
                                    ``(I) base the adjustment made 
                                under clause (i) on the amount of the 
                                unrounded adjustment for the preceding 
                                school year;
                                    ``(II) adjust the resulting amount 
                                in accordance with clause (i); and
                                    ``(III) round the result to the 
                                nearest lower cent increment.
                            ``(iii) Adjustment on january 1, 1996.--On 
                        January 1, 1996, the Secretary shall adjust the 
                        value of food assistance for the remainder of 
                        the school year by rounding the previously 
                        established value of food assistance to the 
                        nearest lower cent increment.
                            ``(iv) Adjustment for 1996-97 school 
                        year.--In the case of the school year beginning 
                        July 1, 1996, the value of food assistance 
                        shall be the same as the value of food 
                        assistance in effect on June 30, 1996.
                            ``(v) Adjustment for 1997-98 school year.--
                        In the case of the school year beginning July 
                        1, 1997, the Secretary shall--
                                    ``(I) base the adjustment made 
                                under clause (i) on the amount of the 
                                unrounded adjustment for the value of 
                                food assistance for the school year 
                                beginning July 1, 1995;
                                    ``(II) adjust the resulting amount 
                                to reflect the annual percentage change 
                                in a 3-month average value of the Price 
                                Index for Foods Used in Schools and 
                                Institutions for March, April, and May 
                                for the most recent 12-month period for 
                                which the data are available; and
                                    ``(III) round the result to the 
                                nearest lower cent increment.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 403. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

    (a) In General.--Section 11(a)(3)(B) of the National School Lunch 
Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
            (1) by designating the second and third sentences as 
        subparagraphs (C) and (D), respectively; and
            (2) by striking subparagraph (D) (as so designated) and 
        inserting the following:
                    ``(D) Rounding.--Except as otherwise provided in 
                this paragraph, in the case of each school year, the 
                Secretary shall--
                            ``(i) base the adjustment made under this 
                        paragraph on the amount of the unrounded 
                        adjustment for the preceding school year;
                            ``(ii) adjust the resulting amount in 
                        accordance with subparagraphs (B) and (C); and
                            ``(iii) round the result to the nearest 
                        lower cent increment.
                    ``(E) Adjustment on january 1, 1996.--On January 1, 
                1996, the Secretary shall adjust the rates and factor 
                for the remainder of the school year by rounding the 
                previously established rates and factor to the nearest 
                lower cent increment.
                    ``(F) Adjustment for 24-month period beginning july 
                1, 1996.--In the case of the 24-month period beginning 
                July 1, 1996, the national average payment rates for 
                paid lunches, paid breakfasts, and paid supplements 
                shall be the same as the national average payment rate 
                for paid lunches, paid breakfasts, and paid 
                supplements, respectively, for the school year 
                beginning July 1, 1995, rounded to the nearest lower 
                cent increment.
                    ``(G) Adjustment for school year beginning july 1, 
                1998.--In the case of the school year beginning July 1, 
                1998, the Secretary shall--
                            ``(i) base the adjustments made under this 
                        paragraph for--
                                    ``(I) paid lunches and paid 
                                breakfasts on the amount of the 
                                unrounded adjustment for paid lunches 
                                for the school year beginning July 1, 
                                1995; and
                                    ``(II) paid supplements on the 
                                amount of the unrounded adjustment for 
                                paid supplements for the school year 
                                beginning July 1, 1995;
                            ``(ii) adjust each resulting amount in 
                        accordance with subparagraph (C); and
                            ``(iii) round each result to the nearest 
                        lower cent increment.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 404. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) In General.--Section 13(b) of the National School Lunch Act (42 
U.S.C. 1761(b)) is amended--
            (1) by striking ``(b)(1)'' and all that follows through the 
        end of paragraph (1) and inserting the following:
    ``(b) Service Institutions.--
            ``(1) Payments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, payments to service institutions shall 
                equal the full cost of food service operations (which 
                cost shall include the costs of obtaining, preparing, 
                and serving food, but shall not include administrative 
                costs).
                    ``(B) Maximum amounts.--Subject to subparagraph 
                (C), payments to any institution under subparagraph (A) 
                shall not exceed--
                            ``(i) $2 for each lunch and supper served;
                            ``(ii) $1.20 for each breakfast served; and
                            ``(iii) 50 cents for each meal supplement 
                        served.
                    ``(C) Adjustments.--Amounts specified in 
                subparagraph (B) shall be adjusted each January 1 to 
                the nearest lower cent increment in accordance with the 
                changes for the 12-month period ending the preceding 
                November 30 in the series for food away from home of 
                the Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics of the 
                Department of Labor. Each adjustment shall be based on 
                the unrounded adjustment for the prior 12-month 
                period.'';
            (2) in the second sentence of paragraph (3), by striking 
        ``levels determined'' and all that follows through ``this 
        subsection'' and inserting ``level determined by the 
        Secretary''; and
            (3) by striking paragraph (4).
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 405. SPECIAL MILK PROGRAM.

    (a) In General.--Section 3(a) of the Child Nutrition Act of 1966 
(42 U.S.C. 1772(a)) is amended by striking paragraph (8) and inserting 
the following:
            ``(8) Adjustments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, in the case of each school year, the 
                Secretary shall--
                            ``(i) base the adjustment made under 
                        paragraph (7) on the amount of the unrounded 
                        adjustment for the preceding school year;
                            ``(ii) adjust the resulting amount in 
                        accordance with paragraph (7); and
                            ``(iii) round the result to the nearest 
                        lower cent increment.
                    ``(B) Adjustment on january 1, 1996.--On January 1, 
                1996, the Secretary shall adjust the minimum rate for 
                the remainder of the school year by rounding the 
                previously established minimum rate to the nearest 
                lower cent increment.
                    ``(C) Adjustment for 1996-97 school year.--In the 
                case of the school year beginning July 1, 1996, the 
                minimum rate shall be the same as the minimum rate in 
                effect on June 30, 1996.
                    ``(D) Adjustment for 1997-98 school year.--In the 
                case of the school year beginning July 1, 1997, the 
                Secretary shall--
                            ``(i) base the adjustment made under 
                        paragraph (7) on the amount of the unrounded 
                        adjustment for the minimum rate for the school 
                        year beginning July 1, 1995;
                            ``(ii) adjust the resulting amount to 
                        reflect changes in the Producer Price Index for 
                        Fresh Processed Milk published by the Bureau of 
                        Labor Statistics of the Department of Labor for 
                        the most recent 12-month period for which the 
                        data are available; and
                            ``(iii) round the result to the nearest 
                        lower cent increment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 406. FREE AND REDUCED PRICE BREAKFASTS.

    (a) In General.--Section 4(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1773(b)) is amended--
            (1) in the second sentence of paragraph (1)(B), by striking 
        ``, adjusted to the nearest one-fourth cent'' and inserting 
        ``(as adjusted pursuant to section 11(a) of the National School 
        Lunch Act (42 U.S.C. 1759a(a))''; and
            (2) in paragraph (2)(B)(ii)--
                    (A) by striking ``nearest one-fourth cent'' and 
                inserting ``nearest lower cent increment for the 
                applicable school year''; and
                    (B) by inserting before the period at the end the 
                following: ``, and the adjustment required by this 
                clause shall be based on the unrounded adjustment for 
                the preceding school year''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 407. CONFORMING REIMBURSEMENT FOR PAID BREAKFASTS AND LUNCHES.

    (a) In General.--The last sentence of section 4(b)(1)(B) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is amended by 
striking ``8.25 cents'' and all that follows through ``Act)'' and 
inserting ``the same as the national average lunch payment for paid 
meals established under section 4(b) of the National School Lunch Act 
(42 U.S.C. 1753(b))''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on January 1, 1996.

                       Subtitle B--Grant Programs

SEC. 411. SCHOOL BREAKFAST STARTUP GRANTS.

    Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is 
amended by striking subsection (g).

SEC. 412. NUTRITION EDUCATION AND TRAINING PROGRAMS.

    Section 19(i)(2)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)(2)(A)) is amended by striking ``$10,000,000'' and inserting 
``$7,000,000''.

SEC. 413. EFFECTIVE DATE.

    The amendments made by this subtitle shall become effective on 
October 1, 1996.

                      Subtitle C--Other Amendments

SEC. 421. FREE AND REDUCED PRICE POLICY STATEMENT.

    (a) School Lunch Program.--Section 9(b)(2) of the National School 
Lunch Act (42 U.S.C. 1758(b)(2)) is amended by adding at the end the 
following:
                    ``(D) Free and reduced price policy statement.--
                After the initial submission, a school shall not be 
                required to submit a free and reduced price policy 
                statement to a State educational agency under this Act 
                unless there is a substantive change in the free and 
                reduced price policy of the school. A routine change in 
                the policy of a school, such as an annual adjustment of 
                the income eligibility guidelines for free and reduced 
                price meals, shall not be sufficient cause for 
                requiring the school to submit a policy statement.''.
    (b) School Breakfast Program.--Section 4(b)(1) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)) is amended by adding at 
the end the following:
                    ``(E) Free and reduced price policy statement.--
                After the initial submission, a school shall not be 
                required to submit a free and reduced price policy 
                statement to a State educational agency under this Act 
                unless there is a substantive change in the free and 
                reduced price policy of the school. A routine change in 
                the policy of a school, such as an annual adjustment of 
                the income eligibility guidelines for free and reduced 
                price meals, shall not be sufficient cause for 
                requiring the school to submit a policy statement.''.

SEC. 422. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Permitting Offer Versus Serve.--Section 13(f) of the National 
School Lunch Act (42 U.S.C. 1761(f)) is amended--
            (1) by striking ``(f) Service'' and inserting the 
        following:
    ``(f) Nutritional Standards.--
            ``(1) In general.--Service''; and
            (2) by adding at the end the following:
            ``(2) Offer versus serve.--A school food authority 
        participating as a service institution may permit a child 
        attending a site on school premises operated directly by the 
        authority to refuse not more than 1 item of a meal that the 
        child does not intend to consume. A refusal of an offered food 
        item shall not affect the amount of payments made under this 
        section to a school for the meal.''.
    (b) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of 
the Act is amended by striking ``and its plans and schedule'' and 
inserting ``except that the Secretary may not require a State to submit 
a plan or schedule''.

SEC. 423. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the National School Lunch Act (42 U.S.C. 
1766(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day care 
                home sponsoring organization that employs more than 1 
                employee, the organization does not base payments to an 
                employee of the organization on the number of family or 
                group day care homes recruited, managed, or 
                monitored.''.
    (b) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--Section 
        17(f)(3) of the Act is amended by striking ``(3)(A) 
        Institutions'' and all that follows through the end of 
        subparagraph (A) and inserting the following:
            ``(3) Reimbursement of family or group day care home 
        sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution that 
                        participates in the program under this section 
                        as a family or group day care home sponsoring 
                        organization shall be provided, for payment to 
                        a home sponsored by the organization, 
                        reimbursement factors in accordance with this 
                        subparagraph for the cost of obtaining and 
                        preparing food and prescribed labor costs 
                        involved in providing meals under this section.
                            ``(ii) Tier i family or group day care 
                        homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I family or 
                                group day care home' means--
                                            ``(aa) a family or group 
                                        day care home that is located 
                                        in a geographic area, as 
                                        defined by the Secretary based 
                                        on census data, in which at 
                                        least 50 percent of the 
                                        children residing in the area 
                                        are members of households whose 
                                        incomes meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9;
                                            ``(bb) a family or group 
                                        day care home that is located 
                                        in an area served by a school 
                                        enrolling elementary students 
                                        in which at least 50 percent of 
                                        the total number of children 
                                        enrolled are certified eligible 
                                        to receive free or reduced 
                                        price school meals under this 
                                        Act or the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or group 
                                        day care home that is operated 
                                        by a provider whose household 
                                        meets the income eligibility 
                                        guidelines for free or reduced 
                                        price meals under section 9 and 
                                        whose income is verified by the 
                                        sponsoring organization of the 
                                        home under regulations 
                                        established by the Secretary.
                                    ``(II) Reimbursement.--Except as 
                                provided in subclause (III), a tier I 
                                family or group day care home shall be 
                                provided reimbursement factors under 
                                this clause without a requirement for 
                                documentation of the costs described in 
                                clause (i), except that reimbursement 
                                shall not be provided under this 
                                subclause for meals or supplements 
                                served to the children of a person 
                                acting as a family or group day care 
                                home provider unless the children meet 
                                the income eligibility guidelines for 
                                free or reduced price meals under 
                                section 9.
                                    ``(III) Factors.--Except as 
                                provided in subclause (IV), the 
                                reimbursement factors applied to a home 
                                referred to in subclause (II) shall be 
                                the factors in effect on the date of 
                                enactment of this subclause.
                                    ``(IV) Adjustments.--The 
                                reimbursement factors under this 
                                subparagraph shall be adjusted on 
                                August 1, 1996, July 1, 1997, and each 
                                July 1 thereafter, to reflect changes 
                                in the Consumer Price Index for food at 
                                home for the most recent 12-month 
                                period for which the data are 
                                available. The reimbursement factors 
                                under this subparagraph shall be 
                                rounded to the nearest lower cent 
                                increment and based on the unrounded 
                                adjustment in effect on June 30 of the 
                                preceding school year.
                            ``(iii) Tier ii family or group day care 
                        homes.--
                                    ``(I) In general.--
                                            ``(aa) Factors.--Except as 
                                        provided in subclause (II), 
                                        with respect to meals or 
                                        supplements served under this 
                                        clause by a family or group day 
                                        care home that does not meet 
                                        the criteria set forth in 
                                        clause (ii)(I), the 
                                        reimbursement factors shall be 
                                        $1 for lunches and suppers, 30 
                                        cents for breakfasts, and 15 
                                        cents for supplements.
                                            ``(bb) Adjustments.--The 
                                        factors shall be adjusted on 
                                        July 1, 1997, and each July 1 
                                        thereafter, to reflect changes 
                                        in the Consumer Price Index for 
                                        food at home for the most 
                                        recent 12-month period for 
                                        which the data are available. 
                                        The reimbursement factors under 
                                        this item shall be rounded down 
                                        to the nearest lower cent 
                                        increment and based on the 
                                        unrounded adjustment for the 
                                        preceding 12-month period.
                                            ``(cc) Reimbursement.--A 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors under this subclause 
                                        without a requirement for 
                                        documentation of the costs 
                                        described in clause (i), except 
                                        that reimbursement shall not be 
                                        provided under this subclause 
                                        for meals or supplements served 
                                        to the children of a person 
                                        acting as a family or group day 
                                        care home provider unless the 
                                        children meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9.
                                    ``(II) Other factors.--A family or 
                                group day care home that does not meet 
                                the criteria set forth in clause 
                                (ii)(I) may elect to be provided 
                                reimbursement factors determined in 
                                accordance with the following 
                                requirements:
                                            ``(aa) Children eligible 
                                        for free or reduced price 
                                        meals.--In the case of meals or 
                                        supplements served under this 
                                        subsection to children who are 
                                        members of households whose 
                                        incomes meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9, the family or group 
                                        day care home shall be provided 
                                        reimbursement factors set by 
                                        the Secretary in accordance 
                                        with clause (ii)(III).
                                            ``(bb) Ineligible 
                                        children.--In the case of meals 
                                        or supplements served under 
                                        this subsection to children who 
                                        are members of households whose 
                                        incomes do not meet the income 
                                        eligibility guidelines, the 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors in accordance with 
                                        subclause (I).
                                    ``(III) Information and 
                                determinations.--
                                            ``(aa) In general.--If a 
                                        family or group day care home 
                                        elects to claim the factors 
                                        described in subclause (II), 
                                        the family or group day care 
                                        home sponsoring organization 
                                        serving the home shall collect 
                                        the necessary income 
                                        information, as determined by 
                                        the Secretary, from any parent 
                                        or other caretaker to make the 
                                        determinations specified in 
                                        subclause (II) and shall make 
                                        the determinations in 
                                        accordance with rules 
                                        prescribed by the Secretary.
                                            ``(bb) Categorical 
                                        eligibility.--In making a 
                                        determination under item (aa), 
                                        a family or group day care home 
                                        sponsoring organization may 
                                        consider a child participating 
                                        in or subsidized under, or a 
                                        child with a parent 
                                        participating in or subsidized 
                                        under, a federally or State 
                                        supported child care or other 
                                        benefit program with an income 
                                        eligibility limit that does not 
                                        exceed the eligibility standard 
                                        for free or reduced price meals 
                                        under section 9 to be a child 
                                        who is a member of a household 
                                        whose income meets the income 
                                        eligibility guidelines under 
                                        section 9.
                                            ``(cc) Factors for children 
                                        only.--A family or group day 
                                        care home may elect to receive 
                                        the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) solely for the 
                                        children participating in a 
                                        program referred to in item 
                                        (bb) if the home elects not to 
                                        have income statements 
                                        collected from parents or other 
                                        caretakers.
                                    ``(IV) Simplified meal counting and 
                                reporting procedures.--The Secretary 
                                shall prescribe simplified meal 
                                counting and reporting procedures for 
                                use by a family or group day care home 
                                that elects to claim the factors under 
                                subclause (II) and by a family or group 
                                day care home sponsoring organization 
                                that sponsors the home. The procedures 
                                the Secretary prescribes may include 1 
                                or more of the following:
                                            ``(aa) Setting an annual 
                                        percentage for each home of the 
                                        number of meals served that are 
                                        to be reimbursed in accordance 
                                        with the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) and an annual 
                                        percentage of the number of 
                                        meals served that are to be 
                                        reimbursed in accordance with 
                                        the reimbursement factors 
                                        prescribed under subclause (I), 
                                        based on the family income of 
                                        children enrolled in the home 
                                        in a specified month or other 
                                        period.
                                            ``(bb) Placing a home into 
                                        1 of 2 or more reimbursement 
                                        categories annually based on 
                                        the percentage of children in 
                                        the home whose households have 
                                        incomes that meet the income 
                                        eligibility guidelines under 
                                        section 9, with each such 
                                        reimbursement category carrying 
                                        a set of reimbursement factors 
                                        such as the factors prescribed 
                                        under clause (ii)(III) or 
                                        subclause (I) or factors 
                                        established within the range of 
                                        factors prescribed under clause 
                                        (ii)(III) and subclause (I).
                                            ``(cc) Such other 
                                        simplified procedures as the 
                                        Secretary may prescribe.
                                    ``(V) Minimum verification 
                                requirements.--The Secretary may 
                                establish any necessary minimum 
                                verification requirements.''.
            (2) Grants to states to provide assistance to family or 
        group day care homes.--Section 17(f)(3) of the Act is amended 
        by adding at the end the following:
                    ``(D) Grants to states to provide assistance to 
                family or group day care homes.--
                            ``(i) In general.--
                                    ``(I) Reservation.--From amounts 
                                made available to carry out this 
                                section, the Secretary shall reserve 
                                $5,000,000 of the amount made available 
                                for fiscal year 1996.
                                    ``(II) Purpose.--The Secretary 
                                shall use the funds made available 
                                under subclause (I) to provide grants 
                                to States for the purpose of 
                                providing--
                                            ``(aa) assistance, 
                                        including grants, to family and 
                                        day care home sponsoring 
                                        organizations and other 
                                        appropriate organizations, in 
                                        securing and providing 
                                        training, materials, automated 
                                        data processing assistance, and 
                                        other assistance for the staff 
                                        of the sponsoring 
                                        organizations; and
                                            ``(bb) training and other 
                                        assistance to family and group 
                                        day care homes in the 
                                        implementation of the 
                                        amendments to subparagraph (A) 
                                        made by section 423(b)(1) of 
                                        the Work Opportunity Act of 
                                        1995.
                            ``(ii) Allocation.--The Secretary shall 
                        allocate from the funds reserved under clause 
                        (i)(I)--
                                    ``(I) $30,000 in base funding to 
                                each State; and
                                    ``(II) any remaining amount among 
                                the States, based on the number of 
                                family day care homes participating in 
                                the program in a State during fiscal 
                                year 1994 as a percentage of the number 
                                of all family day care homes 
                                participating in the program during 
                                fiscal year 1994.
                            ``(iii) Retention of funds.--Of the amount 
                        of funds made available to a State for fiscal 
                        year 1996 under clause (i), the State may 
                        retain not to exceed 30 percent of the amount 
                        to carry out this subparagraph.
                            ``(iv) Additional payments.--Any payments 
                        received under this subparagraph shall be in 
                        addition to payments that a State receives 
                        under subparagraph (A) (as amended by section 
                        423(b)(1) of the Work Opportunity Act of 
                        1995).''.
            (3) Provision of data.--Section 17(f)(3) of the Act (as 
        amended by paragraph (2)) is further amended by adding at the 
        end the following:
                    ``(E) Provision of data to family or group day care 
                home sponsoring organizations.--
                            ``(i) Census data.--The Secretary shall 
                        provide to each State agency administering a 
                        child and adult care food program under this 
                        section data from the most recent decennial 
                        census survey or other appropriate census 
                        survey for which the data are available showing 
                        which areas in the State meet the requirements 
                        of subparagraph (A)(ii)(I)(aa). The State 
                        agency shall provide the data to family or 
                        group day care home sponsoring organizations 
                        located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State agency 
                                administering the school lunch program 
                                under this Act or the school breakfast 
                                program under the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et seq.) shall 
                                provide to approved family or group day 
                                care home sponsoring organizations a 
                                list of schools serving elementary 
                                school children in the State in which 
                                not less than \1/2\ of the children 
                                enrolled are certified to receive free 
                                or reduced price meals. The State 
                                agency shall collect the data necessary 
                                to create the list annually and provide 
                                the list on a timely basis to any 
                                approved family or group day care home 
                                sponsoring organization that requests 
                                the list.
                                    ``(II) Use of data from preceding 
                                school year.--In determining for a 
                                fiscal year or other annual period 
                                whether a home qualifies as a tier I 
                                family or group day care home under 
                                subparagraph (A)(ii)(I), the State 
                                agency administering the program under 
                                this section, and a family or group day 
                                care home sponsoring organization, 
                                shall use the most current available 
                                data at the time of the determination.
                            ``(iii) Duration of determination.--For 
                        purposes of this section, a determination that 
                        a family or group day care home is located in 
                        an area that qualifies the home as a tier I 
                        family or group day care home (as the term is 
                        defined in subparagraph (A)(ii)(I)), shall be 
                        in effect for 3 years (unless the determination 
                        is made on the basis of census data, in which 
                        case the determination shall remain in effect 
                        until more recent census data are available) 
                        unless the State agency determines that the 
                        area in which the home is located no longer 
                        qualifies the home as a tier I family or group 
                        day care home.''.
            (4) Conforming amendments.--Section 17(c) of the Act is 
        amended by inserting ``except as provided in subsection 
        (f)(3),'' after ``For purposes of this section,'' each place it 
        appears in paragraphs (1), (2), and (3).
    (c) Disallowing Meal Claims.--The fourth sentence of section 
17(f)(4) of the Act is amended by inserting ``(including institutions 
that are not family or group day care home sponsoring organizations)'' 
after ``institutions''.
    (d) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this section shall provide sufficient 
training, technical assistance, and monitoring to facilitate effective 
operation of the program. The Secretary shall assist the State in 
developing plans to fulfill the requirements of this subsection.''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on the 
        date of enactment of this Act.
            (2) Improved targeting of day care home reimbursements.--
        The amendments made by paragraphs (1), (3), and (4) of 
        subsection (b) shall become effective on August 1, 1996.
            (3) Regulations.--
                    (A) Interim regulations.--Not later than February 
                1, 1996, the Secretary shall issue interim regulations 
                to implement--
                            (i) the amendments made by paragraphs (1), 
                        (3), and (4) of subsection (b); and
                            (ii) section 17(f)(3)(C) of the National 
                        School Lunch Act (42 U.S.C. 1766(f)(3)(C)).
                    (B) Final regulations.--Not later than August 1, 
                1996, the Secretary shall issue final regulations to 
                implement the provisions of law referred to in 
                subparagraph (A).
    (f) Study of Impact of Amendments on Program Participation and 
Family Day Care Licensing.--
            (1) In general.--The Secretary of Agriculture, in 
        conjunction with the Secretary of Health and Human Services, 
        shall study the impact of the amendments made by this section 
        on--
                    (A) the number of family day care homes 
                participating in the child and adult care food program 
                established under section 17 of the National School 
                Lunch Act (42 U.S.C. 1766);
                    (B) the number of day care home sponsoring 
                organizations participating in the program;
                    (C) the number of day care homes that are licensed, 
                certified, registered, or approved by each State in 
                accordance with regulations issued by the Secretary;
                    (D) the rate of growth of the numbers referred to 
                in subparagraphs (A) through (C);
                    (E) the nutritional adequacy and quality of meals 
                served in family day care homes that--
                            (i) received reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive reimbursement after 
                        the amendments made by this section; or
                            (ii) received full reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive full reimbursement 
                        after the amendments made by this section; and
                    (F) the proportion of low-income children 
                participating in the program prior to the amendments 
                made by this section and the proportion of low-income 
                children participating in the program after the 
                amendments made by this section.
            (2) Required data.--Each State agency participating in the 
        child and adult care food program under section 17 of the 
        National School Lunch Act (42 U.S.C. 1766) shall submit to the 
        Secretary data on--
                    (A) the number of family day care homes 
                participating in the program on July 31, 1996, and July 
                31, 1997;
                    (B) the number of family day care homes licensed, 
                certified, registered, or approved for service on July 
                31, 1996, and July 31, 1997; and
                    (C) such other data as the Secretary may require to 
                carry out this subsection.
            (3) Submission of report.--Not later than 2 years after the 
        effective date of section 423 of this Act, the Secretary shall 
        submit the study required under this subsection to the 
        Committee on Economic and Educational Opportunities of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate.

SEC. 424. REDUCING REQUIRED REPORTS TO STATE AGENCIES AND SCHOOLS.

    Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Work Opportunity Act of 1995, the Secretary shall--
            ``(1) review all reporting requirements under this Act and 
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) that 
        are in effect, as of the date of enactment of the Work 
        Opportunity Act of 1995, for agencies and schools referred to 
        in subsection (a); and
            ``(2) provide a report to the Committee on Economic and 
        Educational Opportunities of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate that--
                    ``(A) describes the reporting requirements 
                described in paragraph (1) that are required by law;
                    ``(B) makes recommendations concerning the 
                elimination of any requirement described in 
                subparagraph (A) because the contribution of the 
                requirement to program effectiveness is not sufficient 
                to warrant the paperwork burden that is placed on 
                agencies and schools referred to in subsection (a); and
                    ``(C) provides a justification for reporting 
                requirements described in paragraph (1) that are 
                required solely by regulation.''.

                      Subtitle D--Reauthorization

SEC. 431. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD 
              PROGRAM.

    (a) Reauthorization.--The first sentence of section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 
U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2002''.
    (b) Administrative Funding.--Section 5(a)(2) of the Act (Public Law 
93-86; 7 U.S.C. 612c note) is amended by striking ``1995'' and 
inserting ``2002''.

SEC. 432. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Reauthorization.--The first sentence of section 204(a)(1) of 
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 
612c note) is amended by striking ``1995'' and inserting ``2002''.
    (b) Program Termination.--Section 212 of the Act (Public Law 98-8; 
7 U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2002''.
    (c) Required Purchases of Commodities.--Section 214 of the Act 
(Public Law 98-8; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (e), by striking ``1995'' each place it 
        appears and inserting ``2002''.
    (d) Extension.--Section 13962 of the Omnibus Budget Reconciliation 
Act of 1993 (Public Law 103-66; 107 Stat. 680) is amended by striking 
``1994, 1995, and 1996'' each place it appears and inserting ``1994 
through 2002''.

SEC. 433. SOUP KITCHENS PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2002''; and
            (2) in subsection (c)(2)--
                    (A) in the paragraph heading, by striking ``1995'' 
                and inserting ``2002''; and
                    (B) by striking ``1995'' each place it appears and 
                inserting ``2002''.

SEC. 434. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1114(a)(2)(A) of the Agriculture and 
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995'' 
and inserting ``2002''.

SEC. 435. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

            Section 5(d)(2) of the Agriculture and Consumer Protection 
        Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended 
        by striking ``1995'' and inserting ``2002''.

                          TITLE V--NONCITIZENS

SEC. 501. STATE OPTION TO PROHIBIT ASSISTANCE FOR CERTAIN ALIENS.

    (a) In General.--A State may, at its option, prohibit the use of 
any Federal funds received for the provision of assistance under any 
means-tested public assistance program for any individual who is a 
noncitizen of the United States.
    (b) Exceptions.--Subsection (a) shall not apply to--
            (1) any individual who is described in subclause (II), 
        (III), or (IV) of section 1614(a)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1382c(a)(1)(B)(i)); and
            (2) any program described in section 502(f)(2).

SEC. 502. DEEMED INCOME REQUIREMENT FOR FEDERAL AND FEDERALLY FUNDED 
              PROGRAMS.

    (a) Deeming Requirement for Federal and Federally Funded 
Programs.--Subject to subsection (d), for purposes of determining the 
eligibility of an individual (whether a citizen or national of the 
United States or an alien) for assistance and the amount of assistance, 
under any Federal program of assistance provided or funded, in whole or 
in part, by the Federal Government for which eligibility is based on 
need, the income and resources described in subsection (b) shall, 
notwithstanding any other provision of law, be deemed to be the income 
and resources of such individual.
    (b) Deemed Income and Resources.--The income and resources 
described in this subsection include the following:
            (1) The income and resources of any person who, as a 
        sponsor of such individual's entry into the United States, or 
        in order to enable such individual lawfully to remain in the 
        United States, executed an affidavit of support or similar 
        agreement with respect to such individual.
            (2) The income and resources of the sponsor's spouse.
    (c) Length of Deeming Period.--The requirement of subsection (a) 
shall apply for the period for which the sponsor has agreed, in such 
affidavit or agreement, to provide support for such individual, or for 
a period of 5 years beginning on the date such individual was first 
lawfully in the United States after the execution of such affidavit or 
agreement, whichever period is longer.
    (d) Limitation on Measurement of Deemed Income and Resources.--
            (1) In general.--If a determination described in paragraph 
        (2) is made, the amount of income and resources of the sponsor 
        or the sponsor's spouse which shall be attributed to the 
        sponsored individual shall not exceed the amount actually 
        provided, for a period beginning on the date of such 
        determination and lasting 12 months or, if the address of the 
        sponsor is unknown to the sponsored individual on the date of 
        such determination, for 12 months after the address becomes 
        known to the sponsored individual or to the agency (which shall 
        inform such individual within 7 days).
            (2) Determination.--The determination described in this 
        paragraph is a determination by an agency that a sponsored 
        individual would, in the absence of the assistance provided by 
        the agency, be unable to obtain food and shelter, taking into 
        account the individual's own income, plus any cash, food, 
        housing, or other assistance provided by other individuals, 
        including the sponsor.
    (e) Deeming Authority to State and Local Agencies.--
            (1) In general.--Notwithstanding any other provision of 
        law, but subject to an exception equivalent to that in 
        subsection (d), the State or local government may, for purposes 
        of determining the eligibility of an individual (whether a 
        citizen or national of the United States or an alien) for 
        assistance, and the amount of assistance, under any State or 
        local program of assistance for which eligibility is based on 
        need, or any need-based program of assistance administered by a 
        State or local government other than a program described in 
        subsection (a), require that the income and resources described 
        in paragraph (2) be deemed to be the income and resources of 
        such individual.
            (2) Deemed income and resources.--The income and resources 
        described in this paragraph include the following:
                    (A) The income and resources of any person who, as 
                a sponsor of such individual's entry into the United 
                States, or in order to enable such individual lawfully 
                to remain in the United States, executed an affidavit 
                of support or similar agreement with respect to such 
                individual.
                    (B) The income and resources of the sponsor's 
                spouse.
            (3) Length of deemed income period.--Subject to an 
        exception equivalent to subsection (d), a State or local 
        government may impose a requirement described in paragraph (1) 
        for the period for which the sponsor has agreed, in such 
        affidavit or agreement, to provide support for such individual, 
        or for a period of 5 years beginning on the date such 
        individual was first lawfully in the United States after the 
        execution of such affidavit or agreement, whichever period is 
        longer.
    (f) Applicability of Section.--
            (1) Individuals.--The provisions of this section shall not 
        apply to the eligibility of any individual who is described in 
        subclause (II), (III), or (IV) of section 1614(a)(1)(B)(i) of 
        the Social Security Act (42 U.S.C. 1382c(a)(1)(B)(i)).
            (2) Programs.--The provisions of this section shall not 
        apply to eligibility for--
                    (A) emergency medical services under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.);
                    (B) short-term emergency disaster relief;
                    (C) assistance or benefits under the National 
                School Lunch Act;
                    (D) assistance or benefits under the Child 
                Nutrition Act of 1966;
                    (E) public health assistance for immunizations with 
                respect to immunizable diseases and for testing and 
                treatment for communicable diseases if the Secretary of 
                Health and Human Services determines that such testing 
                and treatment is necessary;
                    (F) the Head Start program (42 U.S.C. 9801); and
                    (G) programs specified by the Attorney General, in 
                the Attorney General's sole and unreviewable discretion 
                after consultation with appropriate Federal agencies 
                and departments, which (i) deliver services at the 
                community level, including through public or private 
                nonprofit agencies; (ii) do not condition the provision 
                of assistance, the amount of assistance provided, or 
                the cost of assistance provided on the individual 
                recipient's income or resources; and (iii) are 
                necessary for the protection of life, safety, or public 
                health.
    (g) Conforming Amendments.--
            (1) Section 1621 of the Social Security Act (42 U.S.C. 
        1382j) is repealed.
            (2) Section 1614(f)(3) of such Act (42 U.S.C. 1382c(f)(3)) 
        is amended by striking ``section 1621'' and inserting ``section 
        502 of the Work Opportunity Act of 1995''.

SEC. 503. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

    (a) Enforceability.--No affidavit of support may be relied upon 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) of 
the Immigration and Nationality Act unless such affidavit is executed 
as a contract--
            (1) which is legally enforceable against the sponsor by the 
        sponsored individual, by the Federal Government, and by any 
        State, district, territory, or possession of the United States 
        (or any subdivision of such State, district, territory, or 
        possession of the United States) which provides any benefit 
        under a program described in subsection (d)(2), but not later 
        than 10 years after the sponsored individual last receives any 
        such benefit;
            (2) in which the sponsor agrees to financially support the 
        sponsored individual, so that he or she will not become a 
        public charge, until the sponsored individual has worked in the 
        United States for 40 qualifying quarters; and
            (3) in which the sponsor agrees to submit to the 
        jurisdiction of any Federal or State court for the purpose of 
        actions brought under subsection (d)(4).
    (b) Forms.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of State, the Attorney General, and the 
Secretary of Health and Human Services shall jointly formulate the 
affidavit of support described in this section.
    (c) Notification of Change of Address.--
            (1) In general.--The sponsor shall notify the Attorney 
        General and the State, district, territory, or possession in 
        which the sponsored individual is currently resident within 30 
        days of any change of address of the sponsor during the period 
        specified in subsection (a)(1).
            (2) Penalty.--Any person subject to the requirement of 
        paragraph (1) who fails to satisfy such requirement shall be 
        subject to a civil penalty of--
                    (A) not less than $250 or more than $2,000, or
                    (B) if such failure occurs with knowledge that the 
                sponsored individual has received any benefit described 
                in section 241(a)(5)(C) of the Immigration and 
                Nationality Act, not less than $2,000 or more than 
                $5,000.
    (d) Reimbursement of Government Expenses.--
            (1) In general.--Upon notification that a sponsored 
        individual has received any benefit under a program described 
        in paragraph (2), the appropriate Federal, State, or local 
        official shall request reimbursement by the sponsor in the 
        amount of such assistance.
            (2) Programs described.--The programs described in this 
        paragraph include the following:
                    (A) Assistance under a State program funded under 
                part A of title IV of the Social Security Act.
                    (B) The medicaid program under title XIX of the 
                Social Security Act.
                    (C) The food stamp program under the Food Stamp Act 
                of 1977.
                    (D) The supplemental security income program under 
                title XVI of the Social Security Act.
                    (E) Any State general assistance program.
                    (F) Any other program of assistance funded, in 
                whole or in part, by the Federal Government or any 
                State or local government entity, for which eligibility 
                for benefits is based on need, except the programs 
                specified in section 502(f)(2).
            (3) Regulations.--The Commissioner of Social Security shall 
        prescribe such regulations as may be necessary to carry out 
        paragraph (1). Such regulations shall provide for notification 
        to the sponsor by certified mail to the sponsor's last known 
        address.
            (4) Reimbursement.--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.
            (5) Action in case of failure.--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.
            (6) Statute of limitations.--No cause of action may be 
        brought under this subsection later than 10 years after the 
        sponsored individual last received any benefit under a program 
        described in paragraph (2).
    (e) Jurisdiction.--For purposes of this section, no State court 
shall decline for lack of jurisdiction to hear any action brought 
against a sponsor for reimbursement of the cost of any benefit under a 
program described in subsection (d)(2) if the sponsored individual 
received public assistance while residing in the State.
    (f) Definitions.--For the purposes of this section--
            (1) the term ``sponsor'' means an individual who--
                    (A) is a United States citizen or national or an 
                alien who is lawfully admitted to the United States for 
                permanent residence;
                    (B) is 18 years of age or over;
                    (C) is domiciled in any of the several States of 
                the United States, the District of Columbia, or any 
                territory or possession of the United States; and
                    (D) demonstrates the means to maintain an annual 
                income equal to at least 200 percent of the poverty 
                line for the individual and the individual's family 
                (including the sponsored individual), through evidence 
                that shall include a copy of the individual's Federal 
                income tax returns for his or her most recent two 
                taxable years and a written statement, executed under 
                oath or as permitted under penalty of perjury under 
                section 1746 of title 28, United States Code, that the 
                copies are true copies of such returns;
            (2) 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)); and
            (3) the term ``qualifying quarter'' means a three-month 
        period in which the sponsored individual has--
                    (A) earned at least the minimum necessary for the 
                period to count as one of the 40 calendar quarters 
                required to qualify for social security retirement 
                benefits;
                    (B) not received need-based public assistance; and
                    (C) had income tax liability for the tax year of 
                which the period was part.

SEC. 504. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI BENEFITS.

    (a) In General.--Paragraph (1) of section 1614(a) of the Social 
Security Act (42 U.S.C. 1382c(a)) is amended--
            (1) in subparagraph (B)(i), by striking ``either'' and all 
        that follows through ``, or'' and inserting ``(I) a citizen; 
        (II) a noncitizen 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 for a period of 
        not more than 5 years after the date of arrival into the United 
        States; (III) a noncitizen who is admitted to the United States 
        as a refugee under section 207 of such Act for not more than 
        such 5-year period; (IV) a noncitizen, lawfully present in any 
        State (or any territory or possession of the United States), 
        who is a veteran (as defined in section 101 of title 38, United 
        States Code) with a discharge characterized as an honorable 
        discharge and not on account of alienage or who is the spouse 
        or unmarried dependent child of such veteran; or (V) a 
        noncitizen who has worked sufficient calendar quarters of 
        coverage to be a fully insured individual for benefits under 
        title II, or''; and
            (2) by adding at the end the following new flush sentence:
``For purposes of subparagraph (B)(i)(IV), the determination of whether 
a noncitizen is lawfully present in the United States shall be made in 
accordance with regulations of the Attorney General. A noncitizen shall 
not be considered to be lawfully present in the United States for 
purposes of this title merely because the noncitizen may be considered 
to be permanently residing in the United States under color of law for 
purposes of any particular program.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsection (a) shall apply to applicants for 
        benefits for months beginning on or after the date of the 
        enactment of this Act, without regard to whether regulations 
        have been issued to implement such amendments.
            (2) Application to current recipients.--
                    (A) Application and notice.--Notwithstanding any 
                other provision of law, in the case of an individual 
                who is receiving supplemental security income benefits 
                under title XVI of the Social Security Act as of the 
                date of the enactment of this Act and whose eligibility 
                for such benefits would terminate by reason of the 
                amendments made by subsection (a), such amendments 
                shall apply with respect to the benefits of such 
                individual for months beginning on or after January 1, 
                1997, and the Commissioner of Social Security shall so 
                notify the individual not later than 90 days after the 
                date of the enactment of this Act.
                    (B) Reapplication.--
                            (i) In general.--Not later than 120 days 
                        after the date of the enactment of this Act, 
                        each individual notified pursuant to 
                        subparagraph (A) who desires to reapply for 
                        benefits under title XVI of the Social Security 
                        Act shall reapply to the Commissioner of Social 
                        Security.
                            (ii) Determination of eligibility.--Not 
                        later than 1 year after the date of the 
                        enactment of this Act, the Commissioner of 
                        Social Security shall determine the eligibility 
                        of each individual who reapplies for benefits 
                        under clause (i) pursuant to the procedures of 
                        such title XVI.

SEC. 505. TREATMENT OF NONCITIZENS.

    (a) In General.--Notwithstanding any other provision of law, a 
noncitizen who has entered into the United States on or after the date 
of the enactment of this Act shall not, during the 5-year period 
beginning on the date of such noncitizen's entry into the United 
States, be eligible to receive any benefits under any program of 
assistance provided, or funded, in whole or in part, by the Federal 
Government, for which eligibility for benefits is based on need.
    (b) Exceptions.--Subsection (a) shall not apply to--
            (1) any individual who is described in subclause (II), 
        (III), (IV), or (V) of section 1614(a)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1382c(a)(1)(B)(i)); and
            (2) any program described in section 502(f)(2); and
            (3) payments for foster care and adoption assistance under 
        part E of title IV of the Social Security Act for a child who 
        would, in the absence of this section, be eligible to have such 
        payments made on the child's behalf under such part, but only 
        if the foster or adoptive parent or parents of such child are 
        not noncitizens described in subsection (a).

SEC. 506. INFORMATION REPORTING.

    (a) Title IV of the Social Security Act.--Section 405 of the Social 
Security Act, as added by section 101(b), is amended by adding at the 
end the following new subsection:
    ``(g) State Required To Provide Certain Information.--Each State to 
which a grant is made under section 403 shall, at least 4 times 
annually and upon request of the Immigration and Naturalization 
Service, furnish the Immigration and Naturalization Service with the 
name and address of, and other identifying information on, any 
individual who the State knows is unlawfully in the United States.''.
    (b) SSI.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
amended--
            (1) by redesignating the paragraphs (6) and (7) inserted by 
        sections 206(d)(2) and 206(f)(1) of the Social Security 
        Independence and Programs Improvement Act of 1994 (Public Law 
        103-296; 108 Stat. 1514, 1515) as paragraphs (7) and (8), 
        respectively; and
            (2) by adding at the end the following new paragraph:
            ``(9) Notwithstanding any other provision of law, the 
        Commissioner shall, at least 4 times annually and upon request 
        of the Immigration and Naturalization Service (hereafter in 
        this paragraph referred to as the `Service'), furnish the 
        Service with the name and address of, and other identifying 
        information on, any individual who the Commissioner knows is 
        unlawfully in the United States, and shall ensure that each 
        agreement entered into under section 1616(a) with a State 
        provides that the State shall furnish such information at such 
        times with respect to any individual who the State knows is 
        unlawfully in the United States.''.
    (c) Housing Programs.--Title I of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.), as amended by section 1003, is further 
amended by adding at the end the following new section:

``SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND OTHER 
              AGENCIES.

    ``(a) Notice to Immigration and Naturalization Service of Illegal 
Aliens.--Notwithstanding any other provision of law, the Secretary 
shall, at least 4 times annually and upon request of the Immigration 
and Naturalization Service (hereafter in this subsection referred to as 
the `Service'), furnish the Service with the name and address of, and 
other identifying information on, any individual who the Secretary 
knows is unlawfully in the United States, and shall ensure that each 
contract for assistance entered into under section 6 or 8 of this Act 
with a public housing agency provides that the public housing agency 
shall furnish such information at such times with respect to any 
individual who the public housing agency knows is unlawfully in the 
United States.''.

SEC. 507. PROHIBITION ON PAYMENT OF FEDERAL BENEFITS TO CERTAIN 
              PERSONS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), Federal benefits shall not be 
paid or provided to any person who is not a person lawfully present 
within the United States.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following benefits:
            (1) Emergency medical services under title XIX of the 
        Social Security Act.
            (2) Short-term emergency disaster relief.
            (3) Assistance or benefits under the National School Lunch 
        Act.
            (4) Assistance or benefits under the Child Nutrition Act of 
        1966.
            (5) Public health assistance for immunizations and, if the 
        Secretary of Health and Human Services determines that it is 
        necessary to prevent the spread of a serious communicable 
        disease, for testing and treatment of such disease.
    (c) Definitions.--For purposes of this section:
            (1) Federal benefit.--The term ``Federal benefit'' means--
                    (A) the issuance of any grant, contract, loan, 
                professional license, or commercial license provided by 
                an agency of the United States or by appropriated funds 
                of the United States; and
                    (B) any retirement, welfare, Social Security, 
                health, disability, public housing, post-secondary 
                education, food stamps, unemployment benefit, or any 
                other similar benefit for which payments or assistance 
                are provided by an agency of the United States or by 
                appropriated funds of the United States.
            (2) Person lawfully present within the united states.--The 
        term ``person lawfully present within the United States'' means 
        a person who, at the time the person applies for, receives, or 
        attempts to receive a Federal benefit, is a United States 
        citizen, a permanent resident alien, an alien whose deportation 
        has been withheld under section 243(h) of the Immigration and 
        Nationality Act (8 U.S.C. 1253(h)), an asylee, a refugee, a 
        parolee who has been paroled for a period of at least 1 year, a 
national, or a national of the United States for purposes of the 
immigration laws of the United States (as defined in section 101(a)(17) 
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17)).
    (d) State Obligation.--Notwithstanding any other provision of law, 
a State that administers a program that provides a Federal benefit 
(described in section 507(c)(1)) or provides State benefits pursuant to 
such a program shall not be required to provide such benefit to a 
person who is not a person lawfully present within the United States 
(as defined in section 507(c)(2)) through a State agency or with 
appropriated funds of such State.
    (e) Verification of Eligibility.--(1) In General.--Not later than 
18 months after the date of the enactment of this Act, the Attorney 
General of the United States, after consultation with the Secretary of 
Health and Human Services, shall promulgate regulations requiring 
verification that a person applying for a Federal benefit, including a 
benefit described in section 507(b), is a person lawfully present 
within the United States and is eligible to receive such benefit. Such 
regulations shall, to the extent feasible, require that information 
requested and exchanged be similar in form and manner to information 
requested and exchanged under section 1137 of the Social Security Act.
    (2) State Compliance.--Not later than 24 months after the date the 
regulations described in paragraph (1) are adopted, a State that 
administers a program that provides a Federal benefit described in such 
paragraph shall have in effect a verification system that complies with 
the regulations.
    (3) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purpose of 
this section.
    (f) Severability.--If any provision of this title or the 
application of such provision to any person or circumstance is held to 
be unconstitutional, the remainder of this title and the application of 
the provisions of such to any person or circumstance shall not be 
affected thereby.

                          TITLE VI--CHILD CARE

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Child Care and Development Block 
Grant Amendments Act of 1995''.

SEC. 602. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
              OF 1990.

    (a) 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 are authorized to be appropriated to carry out this 
subchapter $1,000,000,000 for fiscal year 1996, and such sums as may be 
necessary for each of the fiscal years 1997 through 2000.''.
    (b) Lead Agency.--Section 658D(b) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858b(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``State'' and 
                inserting ``governmental or nongovernmental''; and
                    (B) in subparagraph (C), by inserting ``with 
                sufficient time and Statewide distribution of the 
                notice of such hearing,'' after ``hearing in the 
                State''; and
            (2) in paragraph (2), by striking the second sentence.
    (c) 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), by striking ``implemented--'' and 
        all that follows through ``plans.'' and inserting ``implemented 
        during a 2-year period.''; and
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iii) by striking the 
                                semicolon and inserting a period; and
                                    (II) by striking ``except'' and all 
                                that follows through ``1992.''; and
                            (ii) in subparagraph (E)--
                                    (I) by striking clause (ii) and 
                                inserting the following new clause:
                            ``(ii) the State will implement mechanisms 
                        to ensure that appropriate payment mechanisms 
                        exist so that proper payments under this 
                        subchapter will be made to providers within the 
                        State and to permit the State to furnish 
                        information to such providers.''; and
                                    (II) by adding at the end thereof 
                                the following new sentence: ``In lieu 
                                of any licensing and regulatory 
                                requirements applicable under State and 
                                local law, the Secretary, in 
                                consultation with Indian tribes and 
                                tribal organizations, shall develop 
                                minimum child care standards (that 
                                appropriately reflect tribal needs and 
                                available resources) that shall be 
                                applicable to Indian tribes and tribal 
                                organization receiving assistance under 
                                this subchapter.''; and
                            (iii) by striking subparagraphs (H) and 
                        (I);
                    (B) in paragraph (3)--
                            (i) in subparagraph (C)--
                                    (I) in the subparagraph heading, by 
                                striking ``and to increase'' and all 
                                that follows through ``care services'';
                                    (II) by striking ``25 percent'' and 
                                inserting ``15 percent''; and
                                    (III) by striking ``and to provide 
                                before-'' and all that follows through 
                                ``658H)''; and
                            (ii) by adding at the end thereof the 
                        following new subparagraph:
                    ``(D) 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, 
                not including direct service costs, incurred by such 
                State to carry out all its functions and duties under 
                this subchapter.''; and
                    (C) by adding at the end thereof the following new 
                paragraph:
            ``(6) Services for the working poor.--The State plan shall 
        described the manner in which services will be provided to the 
        working poor.''.
    (d) Clarification of Eligible Child.--Section 658P(4)(B) of the 
Child care and Development Block Grant Act of 1990 (42 U.S.C. 
9858n(4)(B)) is amended by striking ``75 percent'' and inserting ``100 
percent''.
    (e) Quality.--Section 658G of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858e) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``A State'' and inserting ``(a) In 
                General.--A State'';
                    (B) by striking ``not less than 20 percent of''; 
                and
                    (C) by striking ``one or more of the following'' 
                and inserting ``carrying out the resource and referral 
                activities described in subsection (b), and for one or 
                more of the activities described in subsection (c).'';
            (2) in paragraph (1), by inserting before the period the 
        following: ``, including providing comprehensive consumer 
        education to parents and the public, referrals that honor 
        parental choice, and activities designed to improve the quality 
        and availability of child care'';
            (3) by striking ``(1) Resource and Referral Programs.--
        Operating'' and inserting the following:
    ``(b) Resource and Referral Programs.--The activities described in 
this subsection are operating'';
            (4) by redesignating paragraphs (2) through (5) as 
        paragraphs (1) through (4), respectively;
            (5) by inserting before paragraph (1) (as so redesignated) 
        the following:
    ``(c) Other Activities.--The activities described in this section 
are the following:''; and
            (6) by adding at the end thereof the following:
            ``(5) Before- and after-school activities.--Increasing the 
        availability of before- and after-school care.
            ``(6) Infant care.--Increasing the availability of child 
        care for infants under the age of 18 months.
            ``(7) Nontraditional work hours.--Increasing the 
        availability of child care between the hours of 5:00 p.m. and 
        8:00 a.m.
    ``(d) Nondiscrimination.--With respect to child care providers that 
comply with applicable State law but which are otherwise not required 
to be licensed by the State, the State, in carrying out this section, 
may not discriminate against such a provider if such provider desires 
to participate in resource and referral activities carried out under 
subsection (b).''.
    (f) Repeal.--Section 658H of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858f) is repealed.
    (g) Enforcement.--Section 658I(b)(2) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)(2)) is 
amended--
            (1) in the matter following clause (ii) of subparagraph 
        (A), by striking ``finding and that'' and all that follows 
        through the period and inserting ``finding and may impose 
        additional program requirements on the State, including a 
        requirement that the State reimburse the Secretary for any 
        funds that were improperly expended for purposes prohibited or 
        not authorized by this subchapter, that the Secretary deduct 
        from the administrative portion of the State allotment for the 
        following fiscal year an amount that is less than or equal to 
        any improperly expended funds, or a combination of such 
        options.''; and
            (2) by striking subparagraphs (B) and (C).
    (h) Reports.--Section 658K of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858i) is amended--
            (1) in the section heading, by striking ``ANNUAL REPORT'' 
        and inserting ``REPORTS''; and
            (2) in subsection (a)--
                    (A) in the subsection heading, by striking ``Annual 
                Report'' and inserting ``Reports'';
                    (B) by striking ``December 31, 1992, and annually 
                thereafter'' and inserting ``December 31, 1996, and 
                every 2 years thereafter'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (A), by inserting 
                        before the semicolon ``and the types of child 
                        care programs under which such assistance is 
                        provided'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (D) by striking paragraph (4);
                    (E) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively;
                    (F) in paragraph (4), as so redesignated, by 
                striking ``and'' at the end thereof;
                    (G) in paragraph (5), as so redesignated, by adding 
                ``and'' at the end thereof; and
                    (H) by inserting after paragraph (5), as so 
                redesignated, the following new paragraph:
            ``(6) describing the extent and manner to which the 
        resource and referral activities are being carried out by the 
        State;''.
    (i) 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 inserting ``1997'';
            (2) by striking ``annually'' and inserting ``bi-annually''; 
        and
            (3) by striking ``Education and Labor'' and inserting 
        ``Economic and Educational Opportunities''.
    (j) Allotments.--Section 658O of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
            (1) in subsection (c), by adding at the end thereof the 
        following new paragraph:
            ``(6) Construction or renovation of facilities.--
                    ``(A) Request for use of funds.--An Indian tribe or 
                tribal organization may submit to the Secretary a 
                request to use amounts provided under this subsection 
                for construction or renovation purposes.
                    ``(B) Determination.--With respect to a request 
                submitted under subparagraph (A), and except as 
                provided in subparagraph (C), upon a determination by 
                the Secretary that adequate facilities are not 
                otherwise available to an Indian tribe or tribal 
                organization to enable such tribe or organization to 
                carry out child care programs in accordance with this 
                subchapter, and that the lack of such facilities will 
                inhibit the operation of such programs in the future, 
                the Secretary may permit the tribe or organization to 
                use assistance provided under this subsection to make 
                payments for the construction or renovation of 
                facilities that will be used to carry out such 
                programs.
                    ``(C) Limitation.--The Secretary may not permit an 
                Indian tribe or tribal organization to use amounts 
                provided under this subsection for construction or 
                renovation if such use will result in a decrease in the 
                level of child care services provided by the tribe or 
                organization as compared to the level of such services 
                provided by the tribe or organization in the fiscal 
                year preceding the year for which the determination 
                under subparagraph (A) is being made.
                    ``(D) Uniform procedures.--The Secretary shall 
                develop and implement uniform procedures for the 
                solicitation and consideration of requests under this 
                paragraph.''; and
            (2) in subsection (e)--
                    (A) in paragraph (1), by striking ``Any'' and 
                inserting ``Except as provided in paragraph (4), any''; 
                and
                    (B) by adding at the end thereof the following new 
                paragraph:
            ``(4) Indian tribes or tribal organizations.--Any portion 
        of a grant or contract made to an Indian tribe or tribal 
        organization under subsection (c) that the Secretary determines 
        is not being used in a manner consistent with the provision of 
        this subchapter in the period for which the grant or contract 
        is made available, shall be reallocated by the Secretary to 
        other tribes or organization that have submitted applications 
        under subsection (c) in proportion to the original allocations 
        to such tribes or organization.''.
    (k) Definitions.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) in paragraph (2), in the first sentence by inserting 
        ``or as a deposit for child care services if such a deposit is 
        required of other children being cared for by the provider'' 
        after ``child care services''; and
            (2) in paragraph (5)(B)--
                    (A) by inserting ``great grandchild, sibling (if 
                the provider lives in a separate residence),'' after 
                ``grandchild,'';
                    (B) by striking ``is registered and''; and
                    (C) by striking ``State'' and inserting 
                ``applicable''.
    (l) Application of Subchapter.--The Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by adding 
at the end thereof the following new section:

``SEC. 658T. APPLICATION TO OTHER PROGRAMS.

    ``Notwithstanding any other provision of law, a State that uses 
funding for child care services under any Federal program shall ensure 
that activities carried out using such funds meet the requirements, 
standards, and criteria of this subchapter, except for the quality set-
aside provisions of section 658G, and the regulations promulgated under 
this subchapter. Such sums shall be administered through a uniform 
State plan. To the maximum extent practicable, amounts provided to a 
State under such programs shall be transferred to the lead agency and 
integrated into the program established under this subchapter by the 
State.''.

SEC. 603. REPEALS AND TECHNICAL AND CONFORMING AMENDMENTS.

    (a) State Dependent Care Development Grants Act.--The State 
Dependent Care Development Grants Act (42 U.S.C. 9871 et seq.) is 
repealed.
    (b) Child Development Associate Scholarship Assistance Act of 
1985.--The Child Development Associate Scholarship Assistance Act of 
1985 (42 U.S.C. 10901 et seq.) is repealed.
    (c) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of the Congress and the Director of the 
        Office of Management and Budget, the Secretary of Health and 
        Human Services shall prepare and submit to the Congress a 
        legislative proposal in the form of an implementing bill 
        containing technical and conforming amendments to reflect the 
        amendments and repeals made by this title.
            (2) Submission to congress.--Not later than 6 months after 
        the date of enactment of this title, the Secretary of Health 
        and Human Services shall submit the implementing bill referred 
        to under paragraph (1).

             TITLE VII--PROTECTION OF BATTERED INDIVIDUALS

SEC. 701. EXEMPTION OF BATTERED INDIVIDUALS FROM CERTAIN REQUIREMENTS.

    (a) In General.--Notwithstanding any other provision of, or 
amendment made by, this Act, the applicable administering authority of 
any specified provision may exempt from (or modify) the application of 
such provision to any individual who was battered or subjected to 
extreme cruelty if the physical, mental, or emotional well-being of the 
individual would be endangered by the application of such provision to 
such individual. The applicable administering authority may take into 
consideration the family circumstances and the counseling and other 
supportive service needs of the individual.
    (b) Specified Provisions.--For purposes of this section, the term 
``specified provision'' means any requirement, limitation, or penalty 
under any of the following:
            (1) Sections 404, 405 (a) and (b), 406 (b), (c), and (d), 
        414(d), 453(c), 469A, and 1614(a)(1) of the Social Security 
        Act.
            (2) Sections 5(i) and 6 (d), (j), and (n) of the Food Stamp 
        Act of 1977.
            (3) Sections 501(a) and 502 of this Act.
    (c) Definitions and Special Rules.--For purposes of this section--
            (1) Battered or subjected to extreme cruelty.--The term 
        ``battered or subjected to extreme cruelty'' includes, but is 
        not limited to--
                    (A) physical acts resulting in, or threatening to 
                result in, physical injury;
                    (B) sexual abuse, sexual activity involving a 
                dependent child, forcing the caretaker relative of a 
                dependent child to engage in nonconsensual sexual acts 
                or activities, or threats of or attempts at physical or 
                sexual abuse;
                    (C) mental abuse; and
                    (D) neglect or deprivation of medical care.
            (2) Calculation of participation rates.--An individual 
        exempted from the work requirements under section 404 of the 
        Social Security Act by reason of subsection (a) shall not be 
        included for purposes of calculating the State's participation 
        rate under such section.

                     TITLE VIII--ADOPTION EXPENSES

SEC. 801. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. ADOPTION EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year the amount of the qualified adoption expenses paid 
or incurred by the taxpayer during such taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The aggregate amount of qualified 
        adoption expenses which may be taken into account under 
        subsection (a) with respect to the adoption of a child shall 
        not exceed $5,000.
            ``(2) Income limitation.--The amount allowable as a credit 
        under subsection (a) for any taxable year shall be reduced (but 
        not below zero) by an amount which bears the same ratio to the 
        amount so allowable (determined without regard to this 
        paragraph but with regard to paragraph (1)) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $60,000, bears to
                    ``(B) $40,000.
            ``(3) Denial of double benefit.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any expense for which a deduction or 
                credit is allowable under any other provision of this 
                chapter.
                    ``(B) Grants.--No credit shall be allowed under 
                subsection (a) for any expense to the extent that funds 
                for such expense are received under any Federal, State, 
                or local program.
    ``(c) Qualified Adoption Expenses.--For purposes of this section, 
the term `qualified adoption expenses' means reasonable and necessary 
adoption fees, court costs, attorney fees, and other expenses which are 
directly related to the legal and finalized adoption of a child by the 
taxpayer and which are not incurred in violation of State or Federal 
law or in carrying out any surrogate parenting arrangement. The term 
`qualified adoption expenses' shall not include any expenses in 
connection with the adoption by an individual of a child who is the 
child of such individual's spouse.
    ``(d) Married Couples Must File Joint Returns.--Rules similar to 
the rules of paragraphs (2), (3), and (4) of section 21(e) shall apply 
for purposes of this section.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the last item and inserting the 
        following:

                              ``Sec. 35. Adoption expenses.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 802. EXCLUSION OF ADOPTION ASSISTANCE.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 137 
as section 138 and by inserting after section 136 the following new 
section:

``SEC. 137. ADOPTION ASSISTANCE.

    ``(a) In General.--Gross income of an employee does not include 
employee adoption assistance benefits, or military adoption assistance 
benefits, received by the employee with respect to the employee's 
adoption of a child.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Employee adoption assistance benefits.--The term 
        `employee adoption assistance benefits' means payment by an 
        employer of qualified adoption expenses with respect to an 
        employee's adoption of a child, or reimbursement by the 
        employer of such qualified adoption expenses paid or incurred 
        by the employee in the taxable year.
            ``(2) Employer and employee.--The terms `employer' and 
        `employee' have the respective meanings given such terms by 
        section 127(c).
            ``(3) Military adoption assistance benefits.--The term 
        `military adoption assistance benefits' means benefits provided 
        under section 1052 of title 10, United States Code, or section 
        514 of title 14, United States Code.
            ``(4) Qualified adoption expenses.--
                    ``(A) In general.--The term `qualified adoption 
                expenses' means reasonable and necessary adoption fees, 
                court costs, attorney fees, and other expenses--
                            ``(i) which are directly related to, and 
                        the principal purpose of which is for, the 
                        legal and finalized adoption of an eligible 
                        child by the taxpayer, and
                            ``(ii) which are not incurred in violation 
                        of State or Federal law or in carrying out any 
                        surrogate parenting arrangement.
                    ``(B) Eligible child.--The term `eligible child' 
                means any individual--
                            ``(i) who has not attained age 18 as of the 
                        time of the adoption, or
                            ``(ii) who is physically or mentally 
                        incapable of caring for himself.
    ``(c) Coordination With Other Provisions.--The Secretary shall 
issue regulations to coordinate the application of this section with 
the application of any other provision of this title which allows a 
credit or deduction with respect to qualified adoption expenses.''
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 137 and inserting the following new items:

                              ``Sec. 137. Adoption assistance.
                              ``Sec. 138. Cross references to other 
                                        Acts.''
    (c) Effective Date.--The amendments made this section shall apply 
to taxable years beginning after December 31, 1995.

SEC. 803. WITHDRAWAL FROM IRA FOR ADOPTION EXPENSES.

  (a) In General.--Subsection (d) of section 408 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Qualified adoption expenses.--
                    ``(A) In general.--Any amount which is paid or 
                distributed out of an individual retirement plan of the 
                taxpayer, and which would (but for this paragraph) be 
                includible in gross income, shall be excluded from 
                gross income to the extent that--
                            ``(i) such amount exceeds the sum of--
                                    ``(I) the amount excludable under 
                                section 137, and
                                    ``(II) any amount allowable as a 
                                credit under this title with respect to 
                                qualified adoption expenses; and
                            ``(ii) such amount does not exceed the 
                        qualified adoption expenses paid or incurred by 
                        the taxpayer during the taxable year.
                    ``(B) Qualified adoption expenses.--For purposes of 
                this paragraph, the term `qualified adoption expenses' 
                has the meaning given such term by section 137, except 
                that such term shall not include any expense in 
                connection with the adoption by an individual of a 
                child who is the child of such individual's spouse.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1995.

                        TITLE IX--CHILD SUPPORT

SEC. 900. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, whenever 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. 901. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
              SERVICES.

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

SEC. 902. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) 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 assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support payments.--The State shall, 
                with regard to amounts collected which represent 
                amounts owed for the current month, distribute the 
                amounts so collected to the family.
                    ``(B) Payment of arrearages.--The State shall, with 
                regard to amounts collected which exceed amounts owed 
                for the current month, distribute the amounts so 
                collected as follows:
                            ``(i) Distribution to the family to satisfy 
                        arrearages that accrued after the family 
                        received assistance.--The State shall 
                        distribute the amount so collected to the 
                        family to the extent necessary to satisfy any 
                        support arrearages with respect to the family 
                        that accrued after the family stopped receiving 
                        assistance from the State.
                            ``(ii) Distribution to the family to 
                        satisfy arrearages that accrued before or while 
                        the family received assistance to the extent 
                        payments exceed assistance received.--In the 
                        case of arrearages of support obligations with 
                        respect to the family that were assigned to the 
                        State making or receiving the collection, as a 
                        condition of receiving assistance from the 
                        State, and which accrued before or while the 
                        family received such assistance, the State may 
                        retain all or a part of the State share and if 
                        the State does so retain, shall retain and pay 
                        to the Federal Government the Federal share of 
                        amounts so collected, to the extent the amount 
                        so retained does not exceed the amount of 
                        assistance provided to the family by 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 assistance.--In the case 
        of any other family, the State shall distribute the amount so 
        collected to the family.
            ``(4) Families under certain agreements.--In the case of a 
        family receiving assistance from an Indian tribe, distribute 
        the amount so collected pursuant to an agreement entered into 
        pursuant to a State plan under section 454(32).
    ``(b) Transition Rule.--Any rights to support obligations which 
were assigned to a State as a condition of receiving assistance from 
the State under part A before the effective date of the Work 
Opportunity Act of 1995 shall remain assigned after such date.
    ``(c) Definitions.--As used in subsection (a):
            ``(1) Assistance.--The term `assistance from the State' 
        means--
                    ``(A) assistance under the State program funded 
                under part A or under the State plan approved under 
                part A of this title (as in effect before October 1, 
                1995); or
                    ``(B) benefits under the State plan approved under 
                part E of this title.
            ``(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, 1995), 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 1905(b)) in the case of any State 
                for which subparagraph (B) does not apply; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.
            ``(4) Federal reimbursement percentage.--The term `Federal 
        reimbursement 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.''.
    (b) Conforming Amendment.--Section 464(a)(1) (42 U.S.C. 664(a)(1)) 
is amended by striking ``section 457(b)(4) or (d)(3)'' and inserting 
``section 457''.
    (c) Clerical Amendments.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11)--
                    (A) by striking ``(11)'' and inserting ``(11)(A)''; 
                and
                    (B) by inserting after the semicolon ``and''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (d) Effective Date.--
            (1) General rule.--Except as provided in paragraphs (2) and 
        (3), 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 
        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.
            (3) Special rule.--A State may elect to have the amendment 
        made by subsection (a) become effective on a date earlier than 
        October 1, 1999, which date shall coincide with the operation 
        of the single statewide automated data processing and 
        information retrieval system required by section 454A of the 
        Social Security Act (as added by section 944(a)(2)) and the 
        State disbursement unit required by section 454B of the Social 
        Security Act (as added by section 912(b)), and the existence of 
        State requirements for assignment of support as a condition of 
        eligibility for assistance under part A of the Social Security 
        Act (as added by title I).
            (4) Clerical amendments.--The amendments made by subsection 
        (b) shall become effective on October 1, 1995.

SEC. 903. RIGHTS TO NOTIFICATION AND HEARINGS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
902(b), is amended by inserting after paragraph (11) the following new 
paragraph:
            ``(12) establish procedures to provide that--
                    ``(A) individuals who are applying for or receiving 
                services under this part, or are parties to cases in 
                which services are being provided under this part--
                            ``(i) receive notice of all proceedings in 
                        which support obligations might be established 
                        or modified; and
                            ``(ii) receive a copy of any order 
                        establishing or modifying a child support 
                        obligation, or (in the case of a petition for 
                        modification) a notice of determination that 
                        there should be no change in the amount of the 
                        child support award, within 14 days after 
                        issuance of such order or determination; and
                    ``(B) individuals applying for or receiving 
                services under this part have access to a fair hearing 
                or other formal complaint procedure that meets 
                standards established by the Secretary and ensures 
                prompt consideration and resolution of complaints (but 
                the resort to such procedure shall not stay the 
                enforcement of any support order);''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 904. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 901(b), is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following new 
        paragraph:
            ``(26) will have in effect safeguards, applicable to all 
        confidential information handled by the State agency, that are 
        designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party against whom a protective order with respect to 
                the former party has been entered; and
                    ``(C) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party if the State has reason to believe that the 
                release of the information may result in physical or 
                emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  Subtitle B--Locate and Case Tracking

SEC. 911. STATE CASE REGISTRY.

    Section 454A, as added by section 944(a)(2), is amended by adding 
at the end the following new subsections:
    ``(e) State Case Registry.--
            ``(1) Contents.--The automated system required by this 
        section shall include a registry (which shall be known as the 
        `State case registry') that contains records with respect to--
                    ``(A) each case in which services are being 
                provided by the State agency under the State plan 
                approved under this part; and
                    ``(B) each support order established or modified in 
                the State on or after October 1, 1998.
            ``(2) Linking of local registries.--The State case registry 
        may be established by linking local case registries of support 
        orders through an automated information network, subject to 
        this section.
            ``(3) Use of standardized data elements.--Such records 
        shall use standardized data elements for both parents (such as 
        names, social security numbers and other uniform identification 
        numbers, dates of birth, and case identification numbers), and 
        contain such other information (such as on-case status) as the 
        Secretary may require.
            ``(4) Payment records.--Each case record in the State case 
        registry with respect to which services are being provided 
        under the State plan approved under this part and with respect 
        to which a support order has been established shall include a 
        record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the order, and other amounts 
                (including arrearages, interest or late payment 
                penalties, and fees) due or overdue under the order;
                    ``(B) any amount described in subparagraph (A) that 
                has been collected;
                    ``(C) the distribution of such collected amounts;
                    ``(D) the birth date of any child for whom the 
                order requires the provision of support; and
                    ``(E) the amount of any lien imposed with respect 
                to the order pursuant to section 466(a)(4).
            ``(5) Updating and monitoring.--The State agency operating 
        the automated system required by this section shall promptly 
        establish and maintain, and regularly monitor, case records in 
        the State case registry with respect to which services are 
        being provided under the State plan approved under this part, 
        on the basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from comparison with 
                Federal, State, or local sources of information;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required by this 
section to extract information from (at such times, and in such 
standardized format or formats, as may be required by the Secretary), 
to share and compare information with, and to receive information from, 
other data bases and information comparison services, in order to 
obtain (or provide) information necessary to enable the State agency 
(or the Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 1986. 
Such information comparison activities shall include the following:
            ``(1) Federal case registry of child support orders.--
        Furnishing to the Federal Case Registry of Child Support Orders 
        established under section 453(h) (and update as necessary, with 
        information including notice of expiration of orders) the 
        minimum amount of information on child support cases recorded 
        in the State case registry that is necessary to operate the 
        registry (as specified by the Secretary in regulations).
            ``(2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for the 
        purposes specified in section 453.
            ``(3) Temporary family assistance and medicaid agencies.--
        Exchanging information with State agencies (of the State and of 
        other States) administering programs funded under part A, 
        programs operated under State plans under title XIX, and other 
        programs designated by the Secretary, as necessary to perform 
        State agency responsibilities under this part and under such 
        programs.
            ``(4) Intrastate and interstate information comparisons.--
        Exchanging information with other agencies of the State, 
        agencies of other States, and interstate information networks, 
        as necessary and appropriate to carry out (or assist other 
        States to carry out) the purposes of this part.''.

SEC. 912. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 901(b) and 904(a), is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and
                    ``(B) have sufficient State staff (consisting of 
                State employees), and (at State option) private or 
                governmental contractors reporting directly to the 
                State agency, to--
                            ``(i) provide automated monitoring and 
                        enforcement of 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 944(a)(2), is amended by 
inserting after section 454A the following new section:

``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    ``(a) State Disbursement Unit.--
            ``(1) In general.--In order for a State to meet the 
        requirements of this section, the State agency must establish 
        and operate a unit (which shall be known as the `State 
        disbursement unit') for the collection and disbursement of 
        payments under support orders 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. The Secretary must agree that the 
        system will not cost more nor take more time to establish or 
        operate than a centralized system. In addition, employers shall 
        be given 1 location to which income withholding is sent.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the agencies of other 
        States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to any parent, upon request, timely 
        information on the current status of support payments under an 
        order requiring payments to be made by or to the parent.
    ``(c) Timing of Disbursements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        State disbursement unit shall distribute all amounts payable 
        under section 457(a) within 2 business days after receipt from 
        the employer or other source of periodic income, if sufficient 
        information identifying the payee is provided.
            ``(2) Permissive retention of arrearages.--The State 
        disbursement unit may delay the distribution of collections 
        toward arrearages until the resolution of any timely appeal 
        with respect to such arrearages.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
944(a)(2) and as amended by section 911, is amended by adding at the 
end the following new subsection:
    ``(g) Collection and Distribution of Support Payments.--
            ``(1) In general.--The State shall use the automated system 
        required by this section, to the maximum extent feasible, to 
assist and facilitate the collection and disbursement of support 
payments through the State disbursement unit operated under section 
454B, through the performance of functions, including, at a minimum--
                    ``(A) transmission of orders and notices to 
                employers (and other debtors) for the withholding of 
                wages and other income--
                            ``(i) within 2 business days after receipt 
                        from a court, another State, an employer, the 
                        Federal Parent Locator Service, or another 
                        source recognized by the State of notice of, 
                        and the income source subject to, such 
                        withholding; and
                            ``(ii) using uniform formats prescribed by 
                        the Secretary;
                    ``(B) ongoing monitoring to promptly identify 
                failures to make timely payment of support; and
                    ``(C) automatic use of enforcement procedures 
                (including procedures authorized pursuant to section 
                466(c)) 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. 913. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 901(b), 904(a) and 912(a), is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding after paragraph (27) the following new 
        paragraph:
            ``(28) provide that, on and after October 1, 1997, the 
        State will operate a State Directory of New Hires in accordance 
        with section 453A.''.
    (b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 
651-669) is amended by inserting after section 453 the following new 
section:

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

    ``(a) Establishment.--
            ``(1) In general.--Not later than October 1, 1997, each 
        State shall establish an automated directory (to be known as 
        the `State Directory of New Hires') which shall contain 
        information supplied in accordance with subsection (b) by 
        employers on each newly hired employee.
            ``(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) Employer.--The term `employer' includes--
                            ``(i) any governmental entity, and
                            ``(ii) any labor organization.
                    ``(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 
                subparagraphs (B) and (C), each employer shall furnish 
                to the Directory of New Hires of the State in which a 
                newly hired employee works, a report that contains the 
                name, address, and social security number of the 
                employee, and the name of, and identifying number 
                assigned under section 6109 of the Internal Revenue 
                Code of 1986 to, the employer.
                    ``(B) Multistate employers.--An employer that has 
                employees who are employed in 2 or more States and that 
                transmits reports magnetically or electronically may 
                comply with subparagraph (A) by designating 1 State in 
                which such employer has employees to which it will 
                transmit the report described in subparagraph (A), and 
                transmitting such report to such State. Any employer 
                that transmits reports pursuant to this subparagraph 
                shall notify the Secretary in writing as to which State 
                such employer designates for the purpose of sending 
                reports.
                    ``(C) Federal government employers.--Any 
                department, agency, or instrumentality of the United 
                States shall comply with subparagraph (A) by 
                transmitting the report described in subparagraph (A) 
                to the National Directory of New Hires established 
                pursuant to section 453.
            ``(2) Timing of report.--The report required by paragraph 
        (1) with respect to an employee shall be made not later than 
        the later of--
                    ``(A) 30 days after the date the employer hires the 
                employee; or
                    ``(B) in the case of an employer that reports by 
                magnetic or electronic means, the 1st business day of 
                the week following the date on which the employee 1st 
                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 and may be transmitted by 
1st class mail, magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--The State 
shall have the option to set a State civil money penalty which shall be 
less than--
            ``(1) $25; or
            ``(2) $500 if, under State law, the failure is the result 
        of a conspiracy between the employer and the employee to not 
        supply the required report or to supply a false or incomplete 
        report.
    ``(e) Entry of Employer Information.--Information shall be entered 
into the data base maintained by the State Directory of New Hires 
within 5 business days of receipt from an employer pursuant to 
subsection (b).
    ``(f) Information Comparisons.--
            ``(1) In general.--Not later than October 1, 1998, an 
        agency designated by the State shall, directly or by contract, 
        conduct automated comparisons of the social security numbers 
        reported by employers pursuant to subsection (b) and the social 
        security numbers appearing in the records of the State case 
        registry for cases being enforced under the State plan.
            ``(2) Notice of match.--When an information comparison 
        conducted under paragraph (1) reveals a match with respect to 
        the social security number of an individual required to provide 
        support under a support order, the State Directory of New Hires 
        shall provide the agency administering the State plan approved 
        under this part of the appropriate State with the name, 
        address, and social security number of the employee to whom the 
        social security number is assigned, and the name of, and 
        identifying number assigned under section 6109 of the Internal 
        Revenue Code of 1986 to, the employer.
    ``(g) Transmission of Information.--
            ``(1) Transmission of wage withholding notices to 
        employers.--Within 2 business days after the date information 
        regarding a newly hired employee is entered into the State 
        Directory of New Hires, the State agency enforcing the 
        employee's child support obligation shall transmit a notice to 
        the employer of the employee directing the employer to withhold 
        from the wages of the employee an amount equal to the monthly 
        (or other periodic) child support obligation 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 2 business days 
                after the date information regarding a newly hired 
                employee is entered into the State Directory of New 
                Hires, the State Directory of New Hires shall furnish 
                the information to the National Directory of New Hires.
                    ``(B) Wage and unemployment compensation 
                information.--The State Directory of New Hires shall, 
                on a quarterly basis, furnish to the National Directory 
                of New Hires extracts of the reports required under 
                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.
    ``(h) Other Uses of New Hire Information.--
            ``(1) Location of child support obligors.--The agency 
        administering the State plan approved under this part shall use 
        information received pursuant to subsection (f)(2) to locate 
        individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations.
            ``(2) Verification of eligibility for certain programs.--A 
        State agency responsible for administering a program specified 
        in section 1137(b) shall have access to information reported by 
        employers pursuant to subsection (b) of this section for 
        purposes of verifying eligibility for the program.
            ``(3) Administration of employment security and workers' 
        compensation.--State agencies operating employment security and 
        workers' compensation programs shall have access to information 
        reported by employers pursuant to subsection (b) for the 
        purposes of administering such programs.''.
    (c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-
7(a)(3)) is amended--
            (1) by inserting ``(including State and local governmental 
        entities)'' after ``employers''; and
            (2) by inserting ``, and except that no report shall be 
        filed with respect to an employee of a State agency performing 
        intelligence or counterintelligence functions, if the head of 
        such agency has determined that filing such a report could 
        endanger the safety of the employee or compromise an ongoing 
        investigation or intelligence mission'' after ``paragraph 
        (2)''.

SEC. 914. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1)(A) Procedures described in subsection (b) for the 
        withholding from income of amounts payable as support in cases 
        subject to enforcement under the State plan.
            ``(B) Procedures under which the wages of a person with a 
        support obligation imposed by a support order issued (or 
        modified) in the State before October 1, 1996, if not otherwise 
        subject to withholding under subsection (b), shall become 
        subject to withholding as provided in subsection (b) if 
        arrearages occur, without the need for a judicial or 
        administrative hearing.''.
            (2) Conforming amendments.--
                    (A) Section 466(b) (42 U.S.C. 666(b)) is amended in 
                the matter preceding paragraph (1), by striking 
                ``subsection (a)(1)'' and inserting ``subsection 
                (a)(1)(A)''.
                    (B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is 
                amended to read as follows:
            ``(4)(A) Such withholding must be carried out in full 
        compliance with all procedural due process requirements of the 
        State, and the State must send notice to each absent parent to 
        whom paragraph (1) applies--
                    ``(i) that the withholding has commenced; and
                    ``(ii) of the procedures to follow if the absent 
                parent desires to contest such withholding on the 
                grounds that the withholding or the amount withheld is 
                improper due to a mistake of fact.
            ``(B) The notice under subparagraph (A) shall include the 
        information provided to the employer under paragraph (6)(A).''.
                    (C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is 
                amended by striking all that follows ``administered 
                by'' and inserting ``the State through the State 
                disbursement unit established pursuant to section 454B, 
                in accordance with the requirements of section 454B.''.
                    (D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) 
                is amended--
                            (i) in clause (i), by striking ``to the 
                        appropriate agency'' and all that follows and 
                        inserting ``to the State disbursement unit 
                        within 2 business days after the date the 
                        amount would (but for this subsection) have 
                        been paid or credited to the employee, for 
                        distribution in accordance with this part.'';
                            (ii) in clause (ii), by inserting ``be in a 
                        standard format prescribed by the Secretary, 
                        and'' after ``shall''; and
                            (iii) by adding at the end the following 
                        new clause:
            ``(iii) As used in this subparagraph, the term `business 
        day' means a day on which State offices are open for regular 
        business.''.
                    (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) 
                is amended by striking ``any employer'' and all that 
                follows and inserting ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which it 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State disbursement unit in 
                accordance with this subsection.''.
                    (F) Section 466(b) (42 U.S.C. 666(b)) is amended by 
                adding at the end the following new paragraph:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order 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. 915. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at the end 
the following new paragraph:
            ``(12) 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. 916. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting ``, for the purpose of 
        establishing parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations, or enforcing 
        child visitation orders--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support or provide child visitation rights;
                    ``(B) against whom such an obligation is sought;
                    ``(C) to whom such an obligation is owed,
        including the individual's social security number (or numbers), 
        most recent address, and the name, address, and employer 
        identification number of the individual's employer;
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.''; and
            (2) in subsection (b), 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) Authorized Person for Information Regarding Visitation 
Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
            (1) in paragraph (1), by striking ``support'' and inserting 
        ``support or to seek to enforce orders providing child 
        visitation rights'';
            (2) in paragraph (2), by striking ``, or any agent of such 
        court; and'' and inserting ``or to issue an order against a 
        resident parent for visitation rights, or any agent of such 
        court;'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) the absent parent, only with regard to a court order 
        against a resident parent for child visitation rights.''.
    (c) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (d) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following new 
subsection:
    ``(g) The Secretary may reimburse Federal and State agencies for 
the costs incurred by such entities in furnishing information requested 
by the Secretary under this section in an amount which the Secretary 
determines to be reasonable payment for the information exchange (which 
amount shall not include payment for the costs of obtaining, compiling, 
or maintaining the information).''.
    (e) 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''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (d) of this section, is amended by adding at the end the 
following new subsection:
    ``(h)(1) 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) 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)(1) In order to assist States in administering programs under 
State plans approved under this part and programs funded under part A, 
and for the other purposes specified in this section, the Secretary 
shall, not later than October 1, 1996, establish and maintain in the 
Federal Parent Locator Service an automated directory to be known as 
the National Directory of New Hires, which shall contain the 
information supplied pursuant to section 453A(g)(2).
    ``(2) Information shall be entered into the data base maintained by 
the National Directory of New Hires within 2 business days of receipt 
pursuant to section 453A(g)(2).
    ``(3) The Secretary of the Treasury shall have access to the 
information in the National Directory of New Hires for purposes of 
administering section 32 of the Internal Revenue Code of 1986, or the 
advance payment of the earned income tax credit under section 3507 of 
such Code, and verifying a claim with respect to employment in a tax 
return.
    ``(4) The Secretary shall maintain within the National Directory of 
New Hires a list of multistate employers that report information 
regarding newly hired employees pursuant to section 453A(b)(1)(B), and 
the State which each such employer has designated to receive such 
information.
    ``(j)(1)(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) For the purpose of locating individuals in a paternity 
establishment case or a case involving the establishment, modification, 
or enforcement of a support order, the Secretary shall--
            ``(A) compare information in the National Directory of New 
        Hires against information in the support case abstracts in the 
        Federal Case Registry of Child Support Orders not less often 
than every 2 business days; and
            ``(B) within 2 such days after such a comparison reveals a 
        match with respect to an individual, report the information to 
        the State agency responsible for the case.
    ``(3) 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) 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) 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)(1) 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) 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) 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) 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) The Secretary shall establish and implement safeguards with 
respect to the entities established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(n) Each department, agency, and instrumentality of the United 
States shall on a quarterly basis report to the Federal Parent Locator 
Service the name and social security number of each employee and the 
wages paid to the employee during the previous quarter, except that no 
report shall be filed with respect to an employee of a department, 
agency, or instrumentality performing intelligence or 
counterintelligence functions, if the head of such department, agency, 
or instrumentality has determined that filing such a report could 
endanger the safety of the employee or compromise an ongoing 
investigation or intelligence mission.''.
    (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.--Subsection (h) of section 303 (42 U.S.C. 503) is 
        amended to read as follows:
    ``(h)(1) The State agency charged with the administration of the 
State law shall, on a reimbursable basis--
            ``(A) disclose quarterly, to the Secretary of Health and 
        Human Services wage and claim information, as required pursuant 
        to section 453(i)(1), contained in the records of such agency;
            ``(B) ensure that information provided pursuant to 
        subparagraph (A) meets such standards relating to correctness 
        and verification as the Secretary of Health and Human Services, 
        with the concurrence of the Secretary of Labor, may find 
        necessary; and
            ``(C) establish such safeguards as the Secretary of Labor 
        determines are necessary to insure that information disclosed 
        under subparagraph (A) is used only for purposes of section 
        453(i)(1) in carrying out the child support enforcement program 
        under title IV.
    ``(2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the 
administration of the State law, finds that there is a failure to 
comply substantially with the requirements of paragraph (1), the 
Secretary of Labor shall notify such State agency that further payments 
will not be made to the State until the Secretary of Labor is satisfied 
that there is no longer any such failure. Until the Secretary of Labor 
is so satisfied, the Secretary shall make no future certification to 
the Secretary of the Treasury with respect to the State.
    ``(3) For purposes of this subsection--
            ``(A) the term `wage information' means information 
        regarding wages paid to an individual, the social security 
        account number of such individual, and the name, address, 
        State, and the Federal employer identification number of the 
        employer paying such wages to such individual; and
            ``(B) the term `claim information' means information 
        regarding whether an individual is receiving, has received, or 
        has made application for, unemployment compensation, the amount 
        of any such compensation being received (or to be received by 
        such individual), and the individual's current (or most recent) 
        home address.''.

SEC. 917. 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 915, is amended by adding at the end the following 
new paragraph:
            ``(13) Procedures requiring that the social security number 
        of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application;
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter; and
                    ``(C) any individual who has died be placed in the 
                records relating to the death and be recorded on the 
                death certificate.
        For purposes of subparagraph (A), if a State allows the use of 
        a number other than the social security number, the State shall 
        so advise any applicants.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        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 (ii), by inserting ``or marriage 
        certificate'' after ``Such numbers shall not be recorded on the 
        birth certificate''.
            (4) in clause (vi), by striking ``may'' and inserting 
        ``shall''; and
            (5) by adding at the end the following new clauses:
                            ``(x) An agency of a State (or a political 
                        subdivision thereof) charged with the 
                        administration of any law concerning the 
                        issuance or renewal of a license, certificate, 
                        permit, or other authorization to engage in a 
                        profession, an occupation, or a commercial 
                        activity shall require all applicants for 
                        issuance or renewal of the license, 
                        certificate, permit, or other authorization to 
                        provide the applicant's social security number 
                        to the agency for the purpose of administering 
                        such laws, and for the purpose of responding to 
                        requests for information from an agency 
                        operating pursuant to part D of title IV.
                            ``(xi) All divorce decrees, support orders, 
                        and paternity determinations issued, and all 
                        paternity acknowledgments made, in each State 
                        shall include the social security number of 
                        each party to the decree, order, determination, 
                        or acknowledgement in the records relating to 
                        the matter, for the purpose of responding to 
                        requests for information from an agency 
                        operating pursuant to part D of title IV.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 921. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following new subsection:
    ``(f)(1) 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) The State law enacted pursuant to paragraph (1) may 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) 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) 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. 922. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
            ```child's home State' means the State in which a child 
        lived with a parent or a person acting as parent for at least 6 
        consecutive months immediately preceding the time of filing of 
        a petition or comparable pleading for support and, if a child 
        is less than 6 months old, the State in which the child lived 
        from birth with any of them. A period of temporary absence of 
        any of them is counted as part of the 6-month period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Recognition of Child Support Orders.--If 1 or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
            ``(1) If only 1 court has issued a child support order, the 
        order of that court must be recognized.
            ``(2) If 2 or more courts have issued child support orders 
        for the same obligor and child, and only 1 of the courts would 
        have continuing, exclusive jurisdiction under this section, the 
        order of that court must be recognized.
            ``(3) If 2 or more courts have issued child support orders 
        for the same obligor and child, and more than 1 of the courts 
        would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If 2 or more courts have issued child support orders 
        for the same obligor and child, and none of the courts would 
        have continuing, exclusive jurisdiction under this section, a 
        court may issue a child support order, which must be 
        recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following new subsection:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 923. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 915 and 
917(a), is amended by adding at the end the following new paragraph:
            ``(14) Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State; and
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case;
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
                            ``(i) the number of such requests for 
                        assistance received by the State;
                            ``(ii) the number of cases for which the 
                        State collected support in response to such a 
                        request; and
                            ``(iii) the amount of such collected 
                        support.''.

SEC. 924. USE OF FORMS IN INTERSTATE ENFORCEMENT.

    (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(11) not later than 60 days after the date of the 
        enactment of the Work Opportunity Act of 1995, establish an 
        advisory committee, which shall include State directors of 
        programs under this part, and not later than June 30, 1996, 
        after consultation with the advisory committee, promulgate 
        forms to be used by States in interstate cases for--
                    ``(A) collection of child support through income 
                withholding;
                    ``(B) imposition of liens; and
                    ``(C) administrative subpoenas.''.
    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by inserting ``and'' at the end of subparagraph (D); 
        and
            (3) by adding at the end the following new subparagraph:
                    ``(E) no later than October 1, 1996, in using the 
                forms promulgated pursuant to section 452(a)(11) for 
                income withholding, imposition of liens, and issuance 
                of administrative subpoenas in interstate child support 
                cases;''.

SEC. 925. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 914, is amended--
            (1) in subsection (a)(2), by striking 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 new 
        subsection:
    ``(c) The procedures specified in this subsection are the 
following:
            ``(1) Procedures which give the State agency the authority 
        to take the following actions relating to establishment or 
        enforcement of support orders, without the necessity of 
        obtaining an order from any other judicial or administrative 
        tribunal, and to recognize and enforce the authority of State 
        agencies of other States) to take the following actions:
                    ``(A) To order genetic testing for the purpose of 
                paternity establishment as provided in section 
                466(a)(5).
                    ``(B) To subpoena any financial or other 
                information needed to establish, modify, or enforce a 
                support order, and to impose penalties for failure to 
                respond to such a subpoena.
                    ``(C) To require all entities in the State 
                (including for-profit, nonprofit, and governmental 
                employers) to provide promptly, in response to a 
                request by the State agency of that or any other State 
                administering a program under this part, information on 
                the employment, compensation, and benefits of any 
                individual employed by such entity as an employee or 
                contractor, and to sanction failure to respond to any 
                such request.
                    ``(D) To obtain access, subject to safeguards on 
                privacy and information security, to the following 
                records (including automated access, in the case of 
                records maintained in automated data bases):
                            ``(i) Records of other State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records.
                            ``(ii) Certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access), as provided pursuant to 
                                agreements described in subsection 
                                (a)(18).
                    ``(E) 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) To order income withholding in accordance 
                with subsections (a)(1) and (b) of section 466.
                    ``(G) In cases in which there is a support 
                arrearage, to secure assets to satisfy the arrearage 
                by--
                            ``(i) intercepting or seizing periodic or 
                        lump-sum payments from--
                                    ``(I) a State or local agency, 
                                including unemployment compensation, 
                                workers' compensation, and other 
                                benefits; and
                                    ``(II) judgments, settlements, and 
                                lotteries;
                            ``(ii) attaching and seizing assets of the 
                        obligor held in financial institutions;
                            ``(iii) attaching public and private 
                        retirement funds; and
                            ``(iv) imposing liens in accordance with 
                        subsection (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) For the purpose of securing overdue support, 
                to increase the amount of monthly support payments to 
                include amounts for arrearages, subject to such 
                conditions or limitations as the State may provide.
        Such procedures shall be subject to due process safeguards, 
        including (as appropriate) requirements for notice, opportunity 
        to contest the action, and opportunity for an appeal on the 
        record to an independent administrative or judicial tribunal.
            ``(2) 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) 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) Procedures under which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between local 
                        jurisdictions in the State without need for any 
                        additional filing by the petitioner, or service 
of process upon the respondent, to retain jurisdiction over the 
parties.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 944(a)(2) and as amended by sections 911 and 912(c), is 
amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.

                  Subtitle D--Paternity Establishment

SEC. 931. 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)(A)(i) Procedures which permit the establishment of 
        the paternity of a child at any time before the child attains 
        21 years of age.
            ``(ii) As of August 16, 1984, clause (i) shall also apply 
        to a child for whom paternity has not been established or for 
        whom a paternity action was brought but dismissed because a 
        statute of limitations of less than 21 years was then in effect 
        in the State.
            ``(B)(i) Procedures under which the State is required, in a 
        contested paternity case, unless otherwise barred by State law, 
        to require the child and all other parties (other than 
        individuals found under section 454(29) to have good cause for 
        refusing to cooperate) to submit to genetic tests upon the 
        request of any such party if the request is supported by a 
        sworn statement by the party--
                    ``(I) alleging paternity, and setting forth facts 
                establishing a reasonable possibility of the requisite 
                sexual contact between the parties; or
                    ``(II) denying paternity, and setting forth facts 
                establishing a reasonable possibility of the 
                nonexistence of sexual contact between the parties.
            ``(ii) 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)(i) Procedures for a simple civil process for 
        voluntarily acknowledging paternity under which the State must 
        provide that, before a mother and a putative father can sign an 
        acknowledgment of paternity, the mother and the putative father 
        must be given notice, orally and in writing, of the 
        alternatives to, the legal consequences of, and the rights 
        (including, if 1 parent is a minor, any rights afforded due to 
        minority status) and responsibilities that arise from, signing 
        the acknowledgment.
            ``(ii) Such procedures must include a hospital-based 
        program for the voluntary acknowledgment of paternity focusing 
        on the period immediately before or after the birth of a child, 
        subject to such good cause and other exceptions as the State 
        shall establish and taking into account the best interests of 
        the child.
            ``(iii)(I) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(II)(aa) The Secretary shall prescribe regulations 
        governing voluntary paternity establishment services offered by 
        hospitals and birth record agencies.
            ``(bb) 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) Such procedures must require the State to develop 
        and use an affidavit for the voluntary acknowledgment of 
        paternity which includes the minimum requirements of the 
        affidavit developed by the Secretary under section 452(a)(7) 
        for the voluntary acknowledgment of paternity, and to give full 
        faith and credit to such an affidavit signed in any other State 
        according to its procedures.
            ``(D)(i) Procedures under which the name of the father 
        shall be included on the record of birth of the child only--
                    ``(I) if the father and mother have signed a 
                voluntary acknowledgment of paternity; or
                    ``(II) pursuant to an order issued in a judicial or 
                administrative proceeding.
        Nothing in this clause shall preclude a State agency from 
        obtaining an admission of paternity from the father for 
        submission in a judicial or administrative proceeding, or 
        prohibit an order issued in a judicial or administrative 
        proceeding which bases a legal finding of paternity on an 
        admission of paternity by the father and any other additional 
        showing required by State law.
            ``(ii) Procedures under which--
                    ``(I) a voluntary 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) after the 60-day period referred to in 
                subclause (I), a signed voluntary acknowledgment of 
                paternity may be challenged in court only on the basis 
                of fraud, duress, or material mistake of fact, with the 
                burden of proof upon the challenger, and under which 
                the legal responsibilities (including child support 
                obligations) of any signatory arising from the 
                acknowledgment may not be suspended during the 
                challenge, except for good cause shown; and
                    ``(III) judicial or administrative proceedings are 
                not required or permitted to ratify an unchallenged 
                acknowledgment of paternity.
            ``(E) Procedures under which judicial or administrative 
        proceedings are not required or permitted to ratify an 
        unchallenged acknowledgment of paternity.
            ``(F) 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) 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) 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) Procedures providing that the parties to an action to 
        establish paternity are not entitled to a trial by jury.
            ``(J) 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) 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) Procedures ensuring that the putative father has a 
        reasonable opportunity to initiate a paternity action.
            ``(M) 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. 932. 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. 933. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 901(b), 904(a), 
912(a), and 913(a), is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following new 
        paragraph:
            ``(29) provide that the State agency responsible for 
        administering the State plan--
                    ``(A) shall make the determination (and 
                redetermination at appropriate intervals) as to whether 
                an individual who has applied for or is receiving 
                assistance under the State program funded under part A 
                or the State program under title XIX is cooperating in 
                good faith with the State in establishing the paternity 
                of, or in establishing, modifying, or enforcing a 
                support order for, any child of the individual by 
                providing the State agency with the name of, and such 
                other information as the State agency may require with 
                respect to, the noncustodial parent of the child, 
                subject to such good cause and other exceptions as the 
                State shall establish and taking into account the best 
                interests of the child;
                    ``(B) shall require the individual to supply 
                additional necessary information and appear at 
                interviews, hearings, and legal proceedings;
                    ``(C) shall require the individual and the child to 
                submit to genetic tests pursuant to judicial or 
                administrative order; and
                    ``(D) shall promptly notify the individual and the 
                State agency administering the State program funded 
                under part A and the State agency administering the 
                State program under title XIX of each such 
                determination, and if noncooperation is determined, the 
                basis therefore.''.

             Subtitle E--Program Administration and Funding

SEC. 941. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Payments.--
            (1) In general.--Section 458 (42 U.S.C. 658) is amended--
                    (A) in subsection (a), by striking ``aid to 
                families'' and all through the end period, and 
                inserting ``assistance under a program funded under 
                part A, and regardless of the economic circumstances of 
                their parents, the Secretary shall, from the support 
                collected which would otherwise represent the 
                reimbursement to the Federal government under section 
                457, pay to each State for each fiscal year, on a 
                quarterly basis (as described in subsection (e)) 
                beginning with the quarter commencing October 1, 1999, 
                an incentive payment in an amount determined under 
                subsections (b) and (c).'';
                    (B) by striking subsections (b) and (c) and 
                inserting the following:
    ``(b)(1) Not later than 60 days after the date of the enactment of 
the Work Opportunity Act of 1995, the Secretary shall establish a 
committee which shall include State directors of programs under this 
part and which shall develop for the Secretary's approval a formula for 
the distribution of incentive payments to the States.
    ``(2) The formula developed and approved under paragraph (1)--
            ``(A) shall result in a percentage of the collections 
        described in subsection (a) being distributed to each State 
        based on the State's comparative performance in the following 
        areas and any other areas approved by the Secretary under this 
        subsection:
                    ``(i) The IV-D paternity establishment percentage, 
                as defined in section 452(g)(2).
                    ``(ii) The percentage of cases with a support order 
                with respect to which services are being provided under 
                the State plan approved under this part.
                    ``(iii) The percentage of cases with a support 
                order in which child support is paid with respect to 
                which services are being so provided.
                    ``(iv) In cases receiving services under the State 
                plan approved under this part, the amount of child 
                support collected compared to the amount of outstanding 
                child support owed.
                    ``(v) The cost-effectiveness of the State program;
            ``(B) shall take into consideration--
                    ``(i) the impact that incentives can have on 
                reducing the need to provide public assistance and on 
                permanently removing families from public assistance;
                    ``(ii) the need to balance accuracy and fairness 
                with simplicity of understanding and data gathering;
                    ``(iii) the need to reward performance which 
                improves short- and long-term program outcomes, 
                especially establishing paternity and support orders 
                and encouraging the timely payment of support;
                    ``(iv) the Statewide paternity establishment 
                percentage;
                    ``(v) baseline data on current performance and 
                projected costs of performance increases to assure that 
                top performing States can actually achieve the top 
                incentive levels with a reasonable resource investment;
                    ``(vi) performance outcomes which would warrant an 
                increase in the total incentive payments made to the 
                States; and
                    ``(vii) the use or distribution of any portion of 
                the total incentive payments in excess of the total of 
                the payments which may be distributed under subsection 
                (c);
            ``(C) shall be determined so as to distribute to the States 
        total incentive payments equal to the total incentive payments 
        for all States in fiscal year 1994, plus a portion of any 
        increase in the reimbursement to the Federal Government under 
        section 457 from fiscal year 1999 or any other increase based 
        on other performance outcomes approved by the Secretary under 
        this subsection;
            ``(D) shall use a definition of the term `State' which does 
        not include any area within the jurisdiction of an Indian 
        tribal government; and
            ``(E) shall use a definition of the term `Statewide 
        paternity establishment percentage' to mean with respect to a 
        State and a fiscal year--
                    ``(i) 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
                    ``(ii) the total number of children born out of 
                wedlock in the State during the fiscal year.
    ``(c) The total amount of the incentives payment made by the 
Secretary to a State in a fiscal year shall not exceed 90 percent of 
the total amounts expended by such State during such year for the 
operation of the plan approved under section 454, less payments to the 
State pursuant to section 455 for such year.'';
            (2) in subsection (d), by striking ``, and any amounts'' 
        through ``shall be excluded''.
    (b) Payments to Political Subdivisions.--Section 454(22) (42 U.S.C. 
654(22)) is amended by inserting before the semicolon the following: 
``, but a political subdivision shall not be entitled to receive, and 
the State may retain, any amount in excess of the amount the political 
subdivision expends on the State program under this part, less the 
amount equal to the percentage of that expenditure paid by the 
Secretary under section 455''.
    (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) In general.--The amendments made by subsections 
                (a) and (b) shall become effective on the date of the 
                enactment of this Act, except to the extent provided in 
                subparagraph (B).
                    (B) Exception.--Section 458 of the Social Security 
                Act, as in effect before the date of the enactment of 
                this section, shall be effective for purposes of 
                incentive payments to States for fiscal years before 
                fiscal year 2000.
            (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. 942. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and inserting 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program operated under 
                the State plan approved under this part, including such 
                information as may be necessary to measure State 
                compliance with Federal requirements for expedited 
                procedures, using such standards and procedures as are 
                required by the Secretary, under which the State agency 
                will determine the extent to which the program is 
                operated in compliance with this part; and
                    ``(B) a process of extracting from the automated 
                data processing system required by paragraph (16) and 
                transmitting to the Secretary data and calculations 
                concerning the levels of accomplishment (and rates of 
                improvement) with respect to applicable performance 
                indicators (including IV-D paternity establishment 
                percentages 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 Act.

SEC. 943. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes) to be 
applied in following such procedures'' before the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 901(b), 904(a), 912(a), 913(a), and 933, is 
amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding after paragraph (29) the following new 
        paragraph:
            ``(30) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 944. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

``SEC. 454A. AUTOMATED DATA PROCESSING.

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds in carrying out the program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive 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 904(a)(2) and 912(a)(1), is 
        amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1997, which meets all 
                requirements of this part which were enacted on or 
                before the date of enactment of the Family Support Act 
                of 1988; and
                    ``(B) by October 1, 1999, which meets all 
                requirements of this part enacted on or before the date 
                of the enactment of the Work Opportunity Act of 1995, 
                except that such deadline shall be extended by 1 day 
                for each day (if any) by which the Secretary fails to 
                meet the deadline imposed by section 944(a)(3) of the 
                Work Opportunity Act of 1995.''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
            (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
        amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``90 percent'' and 
                        inserting ``the percent specified in paragraph 
                        (3)'';
                            (ii) by striking ``so much of''; and
                            (iii) by striking ``which the Secretary'' 
                        and all that follows and inserting ``, and''; 
                        and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 and 1997, 90 percent of so much of the State 
expenditures described in paragraph (1)(B) as the Secretary finds are 
for a system meeting the requirements specified in section 454(16) (as 
in effect on the day before the date of the enactment of the Work 
Opportunity Act of 1995), but limited to the amount approved for States 
in the advance planning documents of such States submitted on or before 
May 1, 1995.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 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. 945. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following new subsection:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for--
            ``(1) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs under this 
        part (including technical assistance concerning State automated 
        systems required by this part); and
            ``(2) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 916(f), is amended by adding at the 
end the following new subsection:
    ``(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. 946. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
        amended--
                    (A) by striking ``this part;'' and inserting ``this 
                part, including--''; and
                    (B) by adding at the end the following new clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during the fiscal year to individuals 
                        receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of so furnishing the 
                        services; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for 
                                assistance under State programs funded 
                                under part A during a month in the 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                month;''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) in the matter preceding clause (i)--
                            (i) by striking ``with the data required 
                        under each clause being separately stated for 
                        cases'' and inserting ``separately stated for 
                        (1) cases'';
                            (ii) by striking ``cases where the child 
                        was formerly receiving'' and inserting ``or 
                        formerly received'';
                            (iii) by inserting ``or 1912'' after 
                        ``471(a)(17)''; and
                            (iv) by inserting ``(2)'' before ``all 
                        other'';
                    (B) in each of clauses (i) and (ii), by striking 
                ``, and the total amount of such obligations'';
                    (C) in clause (iii), by striking ``described in'' 
                and all that follows and inserting ``in which support 
                was collected during the fiscal year;'';
                    (D) by striking clause (iv); and
                    (E) by redesignating clause (v) as clause (vii), 
                and inserting after clause (iii) the following new 
                clauses:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
            (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
        amended by striking ``on the use of Federal courts and''.
            (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
                    (A) in subparagraph (H), by striking ``and'';
                    (B) in subparagraph (I), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after subparagraph (I) the 
                following new subparagraph:
                    ``(J) compliance, by State, with the standards 
                established pursuant to subsections (h) and (i).''.
            (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
        striking all that follows subparagraph (J), as added by 
        paragraph (4).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

      Subtitle F--Establishment and Modification of Support Orders

SEC. 951. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the National Child Support Guidelines Commission (in this 
section referred to as the ``Commission'').
    (b) General Duties.--
            (1) In general.--The Commission shall determine--
                    (A) whether it is appropriate to develop a national 
                child support guideline for consideration by the 
                Congress or for adoption by individual States; or
                    (B) based on a study of various guideline models, 
                the benefits and deficiencies of such models, and any 
                needed improvements.
            (2) Development of models.--If the Commission determines 
        under paragraph (1)(A) that a national child support guideline 
        is needed or under paragraph (1)(B) that improvements to 
        guideline models are needed, the Commission shall develop such 
        national guideline or improvements.
    (c) Matters for Consideration by the Commission.--In making the 
recommendations concerning guidelines required under subsection (b), 
the Commission shall consider--
            (1) the adequacy of State child support guidelines 
        established pursuant to section 467;
            (2) matters generally applicable to all support orders, 
        including--
                    (A) the feasibility of adopting uniform terms in 
                all child support orders;
                    (B) how to define income and under what 
                circumstances income should be imputed; and
                    (C) tax treatment of child support payments;
            (3) the appropriate treatment of cases in which either or 
        both parents have financial obligations to more than 1 family, 
        including the effect (if any) to be given to--
                    (A) the income of either parent's spouse; and
                    (B) the financial responsibilities of either parent 
                for other children or stepchildren;
            (4) the appropriate treatment of expenses for child care 
        (including care of the children of either parent, and work-
        related or job-training-related child care);
            (5) the appropriate treatment of expenses for health care 
        (including uninsured health care) and other extraordinary 
        expenses for children with special needs;
            (6) the appropriate duration of support by 1 or both 
        parents, including--
                    (A) support (including shared support) for 
                postsecondary or vocational education; and
                    (B) support for disabled adult children;
            (7) procedures to automatically adjust child support orders 
        periodically to address changed economic circumstances, 
        including changes in the Consumer Price Index or either 
        parent's income and expenses in particular cases;
            (8) procedures to help noncustodial parents address 
        grievances regarding visitation and custody orders to prevent 
        such parents from withholding child support payments until such 
        grievances are resolved; and
            (9) whether, or to what extent, support levels should be 
        adjusted in cases in which custody is shared or in which the 
        noncustodial parent has extended visitation rights.
    (d) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed not later than January 15, 
                1997, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of the Committee;
                            (ii) 2 shall be appointed by the Chairman 
                        of the Committee on Ways and Means of the House 
                        of Representatives, and 1 shall be appointed by 
                        the ranking minority member of the Committee; 
and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (e) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (f) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (g) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 952. 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) Procedures under which the State shall review and 
        adjust each support order being enforced under this part upon 
        the request of either parent or the State if there is an 
        assignment. Such procedures shall provide the following:
                    ``(A) 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, and apply the appropriate adjustment to 
                the orders eligible for adjustment under the threshold 
                established by the State.
                    ``(D)(i) 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.
                    ``(ii) 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 clause (i). 
                The notice may be included in the order.''.

SEC. 953. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO 
              CHILD SUPPORT.

    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
amended by adding at the end the following new paragraphs:
            ``(4) In response to a request by the head of a State or 
        local child support enforcement agency (or a State or local 
        government official authorized by the head of such an agency), 
        if the person making the request certifies to the consumer 
        reporting agency that--
                    ``(A) the consumer report is needed for the purpose 
                of establishing an individual's capacity to make child 
                support payments or determining the appropriate level 
                of such payments;
                    ``(B) the paternity of the consumer for the child 
                to which the obligation relates has been established or 
                acknowledged by the consumer in accordance with State 
                laws under which the obligation arises (if required by 
                those laws);
                    ``(C) the person has provided at least 10 days' 
                prior notice to the consumer whose report is requested, 
                by certified or registered mail to the last known 
address of the consumer, that the report will be requested; and
                    ``(D) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be used in 
                connection with any other civil, administrative, or 
                criminal proceeding, or for any other purpose.
            ``(5) To an agency administering a State plan under section 
        454 of the Social Security Act (42 U.S.C. 654) for use to set 
        an initial or modified child support award.''.

SEC. 954. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a depository institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
financial institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, and to the extent necessary 
in, establishing, modifying, or enforcing a child support obligation of 
such individual.
    (c) Civil Damages for Unauthorized Disclosure.--
            (1) Disclosure by state officer or employee.--If any person 
        knowingly, or by reason of negligence, discloses a financial 
        record of an individual in violation of subsection (b), such 
        individual may bring a civil action for damages against such 
        person in a district court of the United States.
            (2) No liability for good faith but erroneous 
        interpretation.--No liability shall arise under this subsection 
        with respect to any disclosure which results from a good faith, 
        but erroneous, interpretation of subsection (b).
            (3) Damages.--In any action brought under paragraph (1), 
        upon a finding of liability on the part of the defendant, the 
        defendant shall be liable to the plaintiff in an amount equal 
        to the sum of--
                    (A) the greater of--
                            (i) $1,000 for each act of unauthorized 
                        disclosure of a financial record with respect 
                        to which such defendant is found liable; or
                            (ii) the sum of--
                                    (I) the actual damages sustained by 
                                the plaintiff as a result of such 
                                unauthorized disclosure; plus
                                    (II) in the case of a willful 
                                disclosure or a disclosure which is the 
                                result of gross negligence, punitive 
                                damages; plus
                    (B) the costs (including attorney's fees) of the 
                action.
    (d) Definitions.--For purposes of this section:
            (1) The term ``depository institution'' means--
                    (A) a depository institution, as defined in section 
                3(c) of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c));
                    (B) an institution-affiliated party, as defined in 
                section 3(u) of such Act (12 U.S.C. 1813(v)); and
                    (C) any Federal credit union or State credit union, 
                as defined in section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752), including an institution-
                affiliated party of such a credit union, as defined in 
                section 206(r) of such Act (12 U.S.C. 1786(r)).
            (2) The term ``financial record'' has the meaning given 
        such term in section 1101 of the Right to Financial Privacy Act 
        of 1978 (12 U.S.C. 3401).
            (3) The term ``State child support enforcement agency'' 
        means a State agency which administers a State program for 
        establishing and enforcing child support obligations.

               Subtitle G--Enforcement of Support Orders

SEC. 961. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

SEC. 962. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

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

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

    ``(a) Consent To Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy any other 
        such processes on a 1st-come, 1st-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) workers' 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 
                new subparagraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                program under a State plan approved under part D of 
                title IV of the Social Security Act), and, for purposes 
                of this subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) of such 
        title is amended 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 1st sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following new 
        subsection:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 963. 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 962(c)(4), 
        is amended--
                    (A) by redesignating subsections (i) and (j) as 
                subsections (j) and (k), respectively; and
                    (B) by inserting after subsection (h) the following 
                new subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following: ``In the case 
        of a spouse or former spouse who assigns to a State the rights 
        of the spouse or former spouse to receive support, the 
        Secretary concerned may make the child support payments 
        referred to in the preceding sentence to that State in amounts 
        consistent with that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the 1st pay period that begins after 
        such 30-day period.

SEC. 964. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 921, is amended 
by adding at the end the following new subsection:
    ``(g) 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. 965. WORK REQUIREMENT FOR PERSONS OWING CHILD SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 901(a), 
915, 917(a), and 923, is amended by adding at the end the following new 
paragraph:
            ``(15) Procedures requiring the State, in any case in which 
        an individual owes support with respect to a child receiving 
        services under this part, to seek a court order or 
        administrative order that requires the individual to--
                    ``(A) pay such support in accordance with a plan 
                approved by the court; or
                    ``(B) if the individual is not working and is not 
                incapacitated, participate in work activities 
                (including, at State option, work activities as defined 
                in section 482) as the court deems appropriate.''.

SEC. 966. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 916 and 945(b), 
is amended by adding at the end the following new subsection:
    ``(o) As used in this part, the term `support order' means a 
judgment, decree, or order, whether temporary, final, or subject to 
modification, issued by a court or an administrative agency of 
competent jurisdiction, for the support and maintenance of a child, 
including a child who has attained the age of majority under the law of 
the issuing State, or a child and the parent with whom the child is 
living, which provides for monetary support, health care, arrearages, 
or reimbursement, and which may include related costs and fees, 
interest and penalties, income withholding, attorneys' fees, and other 
relief.''.

SEC. 967. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

SEC. 968. LIENS.

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

SEC. 969. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 915, 
917(a), 923, and 965, is amended by adding at the end the following new 
paragraph:
            ``(16) Procedures under which the State has (and uses in 
        appropriate cases) authority to withhold or suspend, or to 
        restrict the use of, driver's licenses, professional and 
        occupational licenses, and recreational licenses of individuals 
        owing overdue support or failing, after receiving appropriate 
        notice, to comply with subpoenas or warrants relating to 
        paternity or child support proceedings.''.

SEC. 970. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by section 945, is amended by adding at the 
        end the following new subsection:
    ``(k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, the Secretary shall transmit such certification to the 
Secretary of State for action (with respect to denial, revocation, or 
limitation of passports) pursuant to section 470(b) of the Work 
Opportunity Act of 1995.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 901(b), 904(a), 912(b), 
        913(a), 933, and 943(a), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (29);
                    (B) by striking the period at the end of paragraph 
                (30) and inserting ``; and''; and
                    (C) by adding after paragraph (30) the following 
                new paragraph:
            ``(31) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(k) 
        (concerning denial of passports), determinations that 
        individuals owe arrearages of child support in an amount 
        exceeding $5,000, under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State shall, upon 
        certification by the Secretary of Health and Human Services 
        transmitted under section 452(k) of the Social Security Act, 
        refuse to issue a passport to such individual, and may revoke, 
        restrict, or limit a passport issued previously to such 
        individual.
            (2) Limit on liability.--The Secretary of State shall not 
        be liable to an individual for any action with respect to a 
        certification by a State agency under this section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 971. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    The Secretary of State is authorized to negotiate reciprocal 
agreements with foreign nations on behalf of the States, territories, 
and possessions of the United States regarding the international 
enforcement of child support obligations and designating the Department 
of Health and Human Services as the central authority for such 
enforcement.

SEC. 972. DENIAL OF MEANS-TESTED FEDERAL BENEFITS TO NONCUSTODIAL 
              PARENTS WHO ARE DELINQUENT IN PAYING CHILD SUPPORT.

    (a) In General.--Notwithstanding any other provision of law, a non-
custodial parent who is more then 2 months delinquent in paying child 
support shall not be eligible to receive any means-tested Federal 
benefits.
    (b) Exception.--
            (1) In general.--Subsection (a) shall not apply to an 
        unemployed non-custodial parent who is more then 2 months 
        delinquent in paying child support if such parent--
                    (A) enters into a schedule of repayment for past 
                due child support with the entity that issued the 
                underlying child support order; and
                    (B) meets all of the terms of repayment specified 
                in the schedule of repayment as enforced by the 
                appropriate disbursing entity.
            (2) 2-year exclusion.--(A) A non-custodial parent who 
        becomes delinquent in child support a second time or any 
        subsequent time shall not be eligible to receive any means-
        tested Federal benefits for a 2-year period beginning on the 
        date that such parent failed to meet such terms.
            (B) At the end of that two-year period, paragraph (A) shall 
        once again apply to that individual.
    (c) Means-tested Federal Benefits.-- For purposes of this section, 
the term ``means-tested Federal benefits'' means benefits under any 
program of assistance, funded in whole or in part, by the Federal 
Government, for which eligibility for benefits is based on need.

SEC. 973. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.

    (a) Child Support Enforcement Agreements.--Section 454 (42 U.S.C. 
654), as amended by sections 901(b), 904(a), 912(b), 913(a), 933, 
943(a), and 970(a)(2) is amended--
            (1) by striking ``and'' at the end of paragraph (30);
            (2) by striking the period at the end of paragraph (31) and 
        inserting ``; and''; and
            (3) by adding after paragraph (31) the following new 
        paragraph:
            ``(32) provide that a State that receives funding pursuant 
        to section 429 and that has within its borders Indian country 
        (as defined in section 1151 of title 18, United States Code) 
        shall, through the State administering agency, make reasonable 
        efforts to enter into cooperative agreements with an Indian 
        tribe or tribal organization (as defined in paragraphs (1) and 
        (2) of section 428(c)), if the Indian tribe or tribal 
        organization demonstrates that such tribe or organization has 
        an established tribal court system or a Court of Indian 
        Offenses with the authority to establish paternity, establish 
        and enforce support orders, and to enter support orders in 
        accordance with child support guidelines established by such 
        tribe or organization, under which the State and tribe or 
        organization shall provide for the cooperative delivery of 
        child support enforcement services in Indian country and for 
        the forwarding of all funding collected pursuant to the 
        functions performed by the tribe or organization to the State 
        agency, or conversely, by the State agency to the tribe or 
        organization, which shall distribute such funding in accordance 
        with such agreement.''.
    (b) Direct Federal Funding to Indian Tribes and Tribal 
Organizations.--Section 455 (42 U.S.C. 655) is amended by adding at the 
end the following new subsection:
    ``(b) The Secretary may, in appropriate cases, make direct payments 
under this part to an Indian tribe or tribal organization which has an 
approved child support enforcement plan under this title. In 
determining whether such payments are appropriate, the Secretary shall, 
at a minimum, consider whether services are being provided to eligible 
Indian recipients by the State agency through an agreement entered into 
pursuant to section 454(32). The Secretary shall provide for an 
appropriate adjustment to the State allotment under this section to 
take into account any payments made under this subsection to Indian 
tribes or tribal organizations located within such State.
    (c) Cooperative Enforcement Agreements.--Paragraph (7) of section 
454 (42 U.S.C. 654) is amended by inserting ``and Indian tribes or 
tribal organizations (as defined in section 450(b) of title 25, United 
States Code)'' after ``law enforcement officials''.

SEC. 974. FINANCIAL INSTITUTION DATA MATCHES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 915, 
917(a), 923, 965, 969, and 976 is amended by adding at the end the 
following new paragraph:
            ``(18) Procedures under which the State agency shall enter 
        into agreements with financial institutions doing business 
        within the State to develop and operate a data match system, 
        using automated data exchanges to the maximum extent feasible, 
        in which such financial institutions are required to provide 
        for each calendar quarter the name, record address, social 
        security number, and other identifying information for each 
        absent parent identified by the State who maintains an account 
        at such institution and, in response to a notice of lien or 
        levy, to encumber or surrender, as the case may be, assets held 
        by such institution on behalf of any absent parent who is 
        subject to a child support lien pursuant to paragraph (4). For 
        purposes of this paragraph, the term `financial institution' 
        means Federal and State commercial savings banks, including 
        savings and loan associations and cooperative banks, Federal 
        and State chartered credit unions, benefit associations, 
        insurance companies, safe deposit companies, money-market 
        mutual funds, and any similar entity authorized to do business 
        in the State, and the term `account' means a demand deposit 
        account, checking or negotiable withdrawal order account, 
        savings account, time deposit account, or money-market mutual 
        fund account.

                      Subtitle H--Medical Support

SEC. 975. 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 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the 1st plan year beginning on or after January 1, 1996, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such 1st 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section; 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such 1st plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

SEC. 976. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 915, 
917(a), 923, 965, and 969, is amended by adding at the end the 
following new paragraph:
            ``(17) Procedures under which all child support orders 
        enforced under this part shall include a provision for the 
        health care coverage of the child, and in the case in which an 
        absent parent provides such coverage and changes employment, 
        and the new employer provides health care coverage, the State 
        agency shall transfer notice of the provision to the employer, 
        which notice shall operate to enroll the child in the absent 
        parent's health plan, unless the absent parent contests the 
        notice.''.

SEC. 977. ENFORCEMENT OF ORDERS AGAINST PATERNAL GRANDPARENTS IN CASES 
              OF MINOR PARENTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 915, 
917(a), 923, 965, 969, and 976, is amended by adding at the end the 
following new paragraph:
            ``(17) Procedures under which any child support order 
        enforced under this part with respect to a child of minor 
        parents, if the mother of such child is receiving assistance 
        under the State grant under part A, shall be enforceable, 
        jointly and severally, against the paternal grandparents of 
        such child.''.

Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

SEC. 981. 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 new section:

``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 nonprofit 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. 991. EFFECTIVE DATES.

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

                   TITLE X--REFORM OF PUBLIC HOUSING

SEC. 1001. CEILING RENTS.

    Section 3(a)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(a)(2)) is amended to read as follows:
    ``(2) Establishment of ceiling rents.--
            ``(A) In general.--A public housing agency may provide that 
        each family residing in a public housing project shall pay 
        monthly rent in an amount established by such agency in 
        accordance with this paragraph.
            ``(B) Limitations on amount.--The rental amount established 
        under subparagraph (A)--
                    ``(i) shall reflect the reasonable rental value of 
                the dwelling unit in which the family resides, as 
                compared with similar types and sizes of dwelling units 
                in the market area in which the public housing project 
                is located;
                    ``(ii) shall be greater than or equal to the 
                monthly cost to operate the housing (including any 
                replacement reserves at the discretion of the public 
                housing agency); and
                    ``(iii) shall not exceed the amount payable as rent 
                by such family under paragraph (1).''.

SEC. 1002. DEFINITION OF ADJUSTED INCOME FOR PUBLIC HOUSING.

    (a) Definition of Adjusted Income.--Section 3(b)(5) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended to read 
as follows:
            ``(5) The term `adjusted income' means the income that 
        remains after excluding--
                    ``(A) $480 for each member of the family residing 
                in the household (other than the head of the household 
                or spouse)--
                            ``(i) who is under 18 years of age; or
                            ``(ii) who is--
                                    ``(I) 18 years of age or older; and
                                    ``(II) a person with disabilities 
                                or a full-time student;
                    ``(B) $400 for an elderly or disabled family;
                    ``(C) the amount by which the aggregate of--
                            ``(i) medical expenses for an elderly or 
                        disabled family; and
                            ``(ii) reasonable attendant care and 
                        auxiliary apparatus expenses for each family 
                        member who is a person with disabilities, to 
                        the extent necessary to enable any member of 
                        the family (including a member who is a person 
                        with disabilities) to be employed;
                exceeds 3 percent of the annual income of the family;
                    ``(D) child care expenses, to the extent necessary 
                to enable another member of the family to be employed 
                or to further his or her education;
                    ``(E) excessive travel expenses, not to exceed $25 
                per family per week, for employment- or education-
                related travel, except that this subparagraph shall 
                apply only to a family assisted by an Indian housing 
                authority; and
                    ``(F) subject to the requirements of subsection 
                (e), for public housing, adjustments to earned income 
                established by the public housing agency, not to exceed 
                20 percent of the earned income of the family.''.
    (b) Adjustments to Definition of Earned Income.--Section 3 of the 
United States Housing Act of 1937 (42 U.S.C. 1437a) is amended--
            (1) in the first undesignated paragraph immediately 
        following subsection (c)(3) (as added by section 515(b) of the 
        Cranston-Gonzalez National Affordable Housing Act), by striking 
        ``The earnings of'' and inserting the following:
    ``(d) Exclusion of Certain Earnings.--The earnings of''; and
            (2) by adding at the end the following new subsection:
    ``(e) Adjustments to Earned Income.--If a public housing agency 
establishes any adjustment to income pursuant to subsection (b)(5)(F), 
the Secretary--
            ``(1) shall not take into account any reduction of the per 
        dwelling unit rental income of the public housing agency 
        resulting from that adjustment in calculating the contributions 
        under section 9 for the public housing agency for the operation 
        of the public housing; and
            ``(2) shall not reduce the level of operating subsidies 
        payable to the public housing agency due to an increase in per 
        dwelling unit rental income that results from a higher level of 
        income earned by any residents whose adjusted incomes are 
        calculated taking into account that adjustment to income, until 
        the public housing agency has recovered a sum equal to the 
        cumulative difference between--
                    ``(A) the operating subsidies actually received by 
                the agency; and
                    ``(B) the operating subsidies that the public 
                housing agency would have received if paragraph (1) was 
                not applied.''.
    (c) Report.--Not later than 3 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to the Congress describing the fiscal and societal impact of the 
amendment made by subsection (b)(2).
    (d) Repeal of Certain Provisions.--
            (1) Maximum annual limitation on rent increases resulting 
        from employment.--Section 957 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 12714) is repealed effective 
        November 28, 1990.
            (2) Economic independence.--Section 923 of the Housing and 
        Community Development Act of 1992 (42 U.S.C. 12714 note) is 
        repealed effective October 28, 1992.

SEC. 1003. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section:

``SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

    ``(a) In General.--If the benefits of a family are reduced under a 
Federal, State, or local law relating to welfare or a public assistance 
program for the failure of any member of the family to perform an 
action required under the law or program, the family may not, for the 
duration of the reduction, receive any increased assistance under this 
Act as the result of a decrease in the income of the family to the 
extent that the decrease in income is the result of the benefits 
reduction.
    ``(b) Exception.--Subsection (a) shall not apply in any case in 
which the benefits of a family are reduced because the welfare or 
public assistance program to which the Federal, State, or local law 
relates limits the period during which benefits may be provided under 
the program.''.

SEC. 1004. APPLICABILITY TO INDIAN HOUSING.

    (a) In General.--In accordance with section 201(b)(2) of the United 
States Housing Act of 1937, the amendments made by this title shall 
apply to public housing developed or operated pursuant to a contract 
between the Secretary and an Indian housing authority.
    (b) Definitions.--For purposes of this section--
            (1) the term ``Indian housing authority'' has the same 
        meaning as in section 3(b) of the United States Housing Act of 
        1937;
            (2) the term ``public housing'' has the same meaning as in 
        section 3(b) of the United States Housing Act of 1937; and
            (3) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 1005. IMPLEMENTATION.

    The Secretary shall issue such regulations as may be necessary to 
carry out this title and the amendments made by this title.

SEC. 1006. DEMONSTRATION PROJECT FOR ELIMINATION OF TAKE-ONE-TAKE-ALL 
              REQUIREMENT.

    In order to demonstrate the effects of eliminating the requirement 
under section 8(t) of the United States Housing Act of 1937, 
notwithstanding any other provision of law, beginning on the date of 
enactment of this Act, section 8(t) of the United States Housing Act of 
1937 shall not apply with respect to the multifamily housing project 
(as such term is defined in section 8(t)(2) of the United States 
Housing Act of 1937) consisting of the dwelling units located at 2401-
2479 Sommerset Circle, in Madison, Wisconsin.

SEC. 1007. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

    (a) In General.--If an individual's benefits under a Federal, 
State, or local law relating to a means-tested welfare or a public 
assistance program are reduced because of an act of fraud by the 
individual under the law or program, the individual may not, for the 
duration of the reduction, receive an increased benefit under any other 
means-tested welfare or public assistance program for which Federal 
funds are appropriated as a result of a decrease in the income of the 
individual (determined under the applicable program) attributable to 
such reduction.
    (b) Welfare or Public Assistance Programs For Which Federal Funds 
are Appropriated.--For purposes of subsection (a), the term ``means-
tested welfare or public assistance program for which Federal funds are 
appropriated'' shall include the food stamp program under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any program of public or 
assisted housing under title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.), and State programs funded under part A of 
title IV of the Social Security Act (42 U.S.C. 601 et seq.).

SEC. 1008. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on the date of enactment of this Act.

             TITLE XI--CHILD ABUSE PREVENTION AND TREATMENT

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``Child Abuse Prevention and 
Treatment Act Amendments of 1995''.

                      Subtitle A--General Program

SEC. 1111. REFERENCE.

    Except as otherwise expressly provided, whenever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Child 
Abuse Prevention and Treatment Act (42 U.S.C. 5101 et seq.).

SEC. 1112. FINDINGS.

    Section 2 (42 U.S.C. 5101 note) is amended--
            (1) in paragraph (1), the read as follows:
            ``(1) each year, close to 1,000,000 American children are 
        victims of abuse and neglect;'';
            (2) in paragraph (3)(C), by inserting ``assessment,'' after 
        ``prevention,'';
            (3) in paragraph (4)--
                    (A) by striking ``tens of''; and
                    (B) by striking ``direct'' and all that follows 
                through the semicolon and inserting ``tangible 
                expenditures, as well as significant intangible 
                costs;'';
            (4) in paragraph (7), by striking ``remedy the causes of'' 
        and inserting ``prevent'';
            (5) in paragraph (8), by inserting ``safety,'' after 
        ``fosters the health,'';
            (6) in paragraph (10)--
                    (A) by striking ``ensure that every community in 
                the United States has'' and inserting ``assist States 
                and communities with''; and
                    (B) by inserting ``and family'' after 
                ``comprehensive child''; and
            (7) in paragraph (11)--
                    (A) by striking ``child protection'' each place 
                that such appears and inserting ``child and family 
                protection''; and
                    (B) in subparagraph (D), by striking 
                ``sufficient''.

SEC. 1113. OFFICE OF CHILD ABUSE AND NEGLECT.

    Section 101 (42 U.S.C.5101) is amended to read as follows:

``SEC. 101. OFFICE OF CHILD ABUSE AND NEGLECT.

    ``(a) Establishment.--The Secretary of Health and Human Services 
may establish an office to be known as the Office of Child Abuse and 
Neglect.
    ``(b) Purpose.--The purpose of the Office established under 
subsection (a) shall be to execute and coordinate the functions and 
activities of this Act. In the event that such functions and activities 
are performed by another entity or entities within the Department of 
Health and Human Services, the Secretary shall ensure that such 
functions and activities are executed with the necessary expertise and 
in a fully coordinated manner involving regular intradepartmental and 
interdepartmental consultation with all agencies involved in child 
abuse and neglect activities.''.

SEC. 1114. ADVISORY BOARD ON CHILD ABUSE AND NEGLECT.

    Section 102 (42 U.S.C.5102) is amended to read as follows:

``SEC. 102. ADVISORY BOARD ON CHILD ABUSE AND NEGLECT.

    ``(a) Appointment.--The Secretary may appoint an advisory board to 
make recommendations to the Secretary and to the appropriate committees 
of Congress concerning specific issues relating to child abuse and 
neglect.
    ``(b) Solicitation of Nominations.--The Secretary shall publish a 
notice in the Federal Register soliciting nominations for the 
appointment of members of the advisory board under subsection (a).
    ``(c) Composition.--In establishing the board under subsection (a), 
the Secretary shall appoint members from the general public who are 
individuals knowledgeable in child abuse and neglect prevention, 
intervention, treatment, or research, and with due consideration to 
representation of ethnic or racial minorities and diverse geographic 
areas, and who represent--
            ``(1) law (including the judiciary);
            ``(2) psychology (including child development);
            ``(3) social services (including child protective 
        services);
            ``(4) medicine (including pediatrics);
            ``(5) State and local government;
            ``(6) organizations providing services to disabled persons;
            ``(7) organizations providing services to adolescents;
            ``(8) teachers;
            ``(9) parent self-help organizations;
            ``(10) parents' groups;
            ``(11) voluntary groups;
            ``(12) family rights groups; and
            ``(13) children's rights advocates.
    ``(d) Vacancies.--Any vacancy in the membership of the board shall 
be filled in the same manner in which the original appointment was 
made.
    ``(e) Election of Officers.--The board shall elect a chairperson 
and vice-chairperson at its first meeting from among the members of the 
board.
    ``(f) Duties.--Not later than 1 year after the establishment of the 
board under subsection (a), the board shall submit to the Secretary and 
the appropriate committees of Congress a report, or interim report, 
containing--
            ``(1) recommendations on coordinating Federal, State, and 
        local child abuse and neglect activities with similar 
        activities at the Federal, State, and local level pertaining to 
        family violence prevention;
            ``(2) specific modifications needed in Federal and State 
        laws and programs to reduce the number of unfounded or 
        unsubstantiated reports of child abuse or neglect while 
        enhancing the ability to identify and substantiate legitimate 
        cases of abuse or neglect which place a child in danger; and
            ``(3) recommendations for modifications needed to 
        facilitate coordinated national data collection with respect to 
        child protection and child welfare.''.

SEC. 1115. REPEAL OF INTERAGENCY TASK FORCE.

    Section 103 (42 U.S.C.5103) is repealed.

SEC. 1116. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING TO CHILD 
              ABUSE.

    Section 104 (42 U.S.C.5104) is amended--
            (1) in subsection (a), to read as follows:
    ``(a) Establishment.--The Secretary shall through the Department, 
or by one or more contracts of not less than 3 years duration let 
through a competition, establish a national clearinghouse for 
information relating to child abuse.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Director'' and inserting ``Secretary'';
                    (B) in paragraph (1)--
                            (i) by inserting ``assessment,'' after 
                        ``prevention,''; and
                            (ii) by striking ``, including'' and all 
                        that follows through ``105(b)'' and inserting 
                        ``and'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``general population'' and inserting ``United 
                        States'';
                            (ii) in subparagraph (B), by adding ``and'' 
                        at the end thereof;
                            (iii) in subparagraph (C), by striking ``; 
                        and'' at the end thereof and inserting a 
                        period; and
                            (iv) by striking subparagraph (D); and
                    (D) by striking paragraph (3); and
            (3) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Director'' and inserting ``Secretary'';
                    (B) in paragraph (2), by striking ``that is 
                represented on the task force'' and inserting 
                ``involved with child abuse and neglect and mechanisms 
                for the sharing of such information among other Federal 
                agencies and clearinghouses'';
                    (C) in paragraph (3), by striking ``State, 
                regional'' and all that follows and inserting the 
                following: ``Federal, State, regional, and local child 
                welfare data systems which shall include:
                    ``(A) standardized data on false, unfounded, 
                unsubstantiated, and substantiated reports; and
                    ``(B) information on the number of deaths due to 
                child abuse and neglect;'';
                    (D) by redesignating paragraph (4) as paragraph 
                (6); and
                    (E) by inserting after paragraph (3), the following 
                new paragraphs:
            ``(4) through a national data collection and analysis 
        program and in consultation with appropriate State and local 
        agencies and experts in the field, collect, compile, and make 
        available State child abuse and neglect reporting information 
        which, to the extent practical, shall be universal and case 
        specific, and integrated with other case-based foster care and 
        adoption data collected by the Secretary;
            ``(5) compile, analyze, and publish a summary of the 
        research conducted under section 105(a); and''.

SEC. 1117. RESEARCH, EVALUATION AND ASSISTANCE ACTIVITIES.

    (a) Research.--Section 105(a) (42 (42 U.S.C. 5105(a)) is amended--
            (1) in the section heading, by striking ``OF THE NATIONAL 
        CENTER ON CHILD ABUSE AND NEGLECT'';
            (2) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``, through the Center, conduct research on'' 
                and inserting ``, in consultation with other Federal 
                agencies and recognized experts in the field, carry out 
                a continuing interdisciplinary program of research that 
                is designed to provide information needed to better 
                protect children from abuse or neglect and to improve 
                the well-being of abused or neglected children, with at 
                least a portion of such research being field initiated. 
                Such research program may focus on'';
                    (B) by redesignating subparagraphs (A) through (C) 
                as subparagraph (B) through (D), respectively;
                    (C) by inserting before subparagraph (B) (as so 
                redesignated) the following new subparagraph:
                    ``(A) the nature and scope of child abuse and 
                neglect;'';
                    (D) in subparagraph (B) (as so redesignated), to 
                read as follows:
                    ``(B) causes, prevention, assessment, 
                identification, treatment, cultural and socio-economic 
                distinctions, and the consequences of child abuse and 
                neglect;'';
                    (E) in subparagraph (D) (as so redesignated)--
                            (i) by striking clause (ii); and
                            (ii) in clause (iii), to read as follows:
                            ``(ii) the incidence of substantiated and 
                        unsubstantiated reported child abuse cases;
                            ``(iii) the number of substantiated cases 
                        that result in a judicial finding of child 
                        abuse or neglect or related criminal court 
                        convictions;
                            ``(iv) the extent to which the number of 
                        unsubstantiated, unfounded and false reported 
                        cases of child abuse or neglect have 
                        contributed to the inability of a State to 
                        respond effectively to serious cases of child 
                        abuse or neglect;
                            ``(v) the extent to which the lack of 
                        adequate resources and the lack of adequate 
                        training of reporters have contributed to the 
                        inability of a State to respond effectively to 
                        serious cases of child abuse and neglect;
                            ``(vi) the number of unsubstantiated, 
                        false, or unfounded reports that have resulted 
                        in a child being placed in substitute care, and 
                        the duration of such placement;
                            ``(vii) the extent to which unsubstantiated 
                        reports return as more serious cases of child 
                        abuse or neglect;
                            ``(viii) the incidence and prevalence of 
                        physical, sexual, and emotional abuse and 
                        physical and emotional neglect in substitute 
                        care; and
                            ``(ix) the incidence and outcomes of abuse 
                        allegations reported within the context of 
                        divorce, custody, or other family court 
                        proceedings, and the interaction between this 
                        venue and the child protective services 
                        system.''; and
            (3) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and demonstrations''; and
                            (ii) by striking ``paragraph (1)(A) and 
                        activities under section 106'' and inserting 
                        ``paragraph (1)''; and
                    (B) in subparagraph (B), by striking ``and 
                demonstration''.
    (b) Repeal.--Subsection (b) of section 105 (42 U.S.C. 5105(b)) is 
repealed.
    (c) Technical Assistance.--Section 105(c) (42 U.S.C. 5105(c)) is 
amended--
            (1) by striking ``The Secretary'' and inserting:
            ``(1) In general.--The Secretary'';
            (2) by striking ``, through the Center,'';
            (3) by inserting ``State and local'' before ``public and 
        nonprofit'';
            (4) by inserting ``assessment,'' before ``identification''; 
        and
            (5) by adding at the end thereof the following new 
        paragraphs:
            ``(2) Evaluation.--Such technical assistance may include an 
        evaluation or identification of--
                    ``(A) various methods and procedures for the 
                investigation, assessment, and prosecution of child 
                physical and sexual abuse cases;
                    ``(B) ways to mitigate psychological trauma to the 
                child victim; and
                    ``(C) effective programs carried out by the States 
                under titles I and II.
            ``(3) Dissemination.--The Secretary may provide for and 
        disseminate information relating to various training resources 
        available at the State and local level to--
                    ``(A) individuals who are engaged, or who intend to 
                engage, in the prevention, identification, and 
                treatment of child abuse and neglect; and
                    ``(B) appropriate State and local officials to 
                assist in training law enforcement, legal, judicial, 
                medical, mental health, education, and child welfare 
                personnel in appropriate methods of interacting during 
                investigative, administrative, and judicial proceedings 
                with children who have been subjected to abuse.''.
    (d) Grants and Contracts.--Section 105(d)(2) (42 U.S.C. 5105(d)(2)) 
is amended by striking the second sentence.
    (e) Peer Review.--Section 105(e) (42 U.S.C. 5105(e)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``establish a formal'' and 
                        inserting ``, in consultation with experts in 
                        the field and other federal agencies, establish 
                        a formal, rigorous, and meritorious'';
                            (ii) by striking ``and contracts''; and
                            (iii) by adding at the end thereof the 
                        following new sentence: ``The purpose of this 
                        process is to enhance the quality and 
                        usefulness of research in the field of child 
                        abuse and neglect.''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``Office of Human 
                        Development'' and inserting ``Administration 
                        for Children and Families''; and
                            (ii) by adding at the end thereof the 
                        following new sentence: ``The Secretary shall 
                        ensure that the peer review panel utilizes 
                        scientifically valid review criteria and 
                        scoring guidelines for review committees.''; 
                        and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``, contract, or other financial assistance''; 
                and
                    (B) by adding at the end thereof the following 
                flush sentence:
        ``The Secretary shall award grants under this section on the 
        basis of competitive review.''.

SEC. 1118. GRANTS FOR DEMONSTRATION PROGRAMS.

    Section 106 (42 U.S.C. 5106) is amended--
            (1) in the section heading, by striking ``OR SERVICE'';
            (2) in subsection (a), to read as follows:
    ``(a) Demonstration Programs and Projects.--The Secretary may make 
grants to, and enter into contracts with, public agencies or nonprofit 
private agencies or organizations (or combinations of such agencies or 
organizations) for time limited, demonstration programs and projects 
for the following purposes:
            ``(1) Training programs.--The Secretary may award grants to 
        public or private non-profit organizations under this section--
                    ``(A) for the training of professional and 
                paraprofessional personnel in the fields of medicine, 
                law, education, social work, and other relevant fields 
                who are engaged in, or intend to work in, the field of 
                prevention, identification, and treatment of child 
                abuse and neglect, including the links between domestic 
                violence and child abuse;
                    ``(B) to provide culturally specific instruction in 
                methods of protecting children from child abuse and 
                neglect to children and to persons responsible for the 
                welfare of children, including parents of and persons 
                who work with children with disabilities;
                    ``(C) to improve the recruitment, selection, and 
                training of volunteers serving in private and public 
                nonprofit children, youth and family service 
                organizations in order to prevent child abuse and 
                neglect through collaborative analysis of current 
                recruitment, selection, and training programs and 
                development of model programs for dissemination and 
                replication nationally; and
                    ``(D) for the establishment of resource centers for 
                the purpose of providing information and training to 
                professionals working in the field of child abuse and 
                neglect.
            ``(2) Mutual support programs.--The Secretary may award 
        grants to private non-profit organizations (such as Parents 
        Anonymous) to establish or maintain a national network of 
        mutual support and self-help programs as a means of 
        strengthening families in partnership with their communities.
            ``(3) Other innovative programs and projects.--
                    ``(A) In general.--The Secretary may award grants 
                to public agencies that demonstrate innovation in 
                responding to reports of child abuse and neglect 
                including programs of collaborative partnerships 
                between the State child protective service agency, 
                community social service agencies and family support 
                programs, schools, churches and synagogues, and other 
                community agencies to allow for the establishment of a 
                triage system that--
                            ``(i) accepts, screens and assesses reports 
                        received to determine which such reports 
                        require an intensive intervention and which 
                        require voluntary referral to another agency, 
                        program or project;
                            ``(ii) provides, either directly or through 
                        referral, a variety of community-linked 
                        services to assist families in preventing child 
                        abuse and neglect; and
                            ``(iii) provides further investigation and 
                        intensive intervention where the child's safety 
                        is in jeopardy.
                    ``(B) Kinship care.--The Secretary may award grants 
                to public entities to assist such entities in 
                developing or implementing procedures using adult 
                relatives as the preferred placement for children 
                removed from their home, where such relatives are 
                determined to be capable of providing a safe nurturing 
                environment for the child or where such relatives 
                comply with the State child protection standards.
                    ``(C) Visitation centers.--The Secretary may award 
                grants to public or private nonprofit entities to 
                assist such entities in the establishment or operation 
                of supervised visitation centers where there is 
                documented, highly suspected, or elevated risk of child 
                sexual, physical, or emotional abuse where, due to 
                domestic violence, there is an ongoing risk of harm to 
                a parent or child.'';
            (3) in subsection (c), by striking paragraphs (1) and (2); 
        and
            (4) by adding at the end thereof the following new 
        subsection:
    ``(d) Evaluation.--In making grants for demonstration projects 
under this section, the Secretary shall require all such projects to be 
evaluated for their effectiveness. Funding for such evaluations shall 
be provided either as a stated percentage of a demonstration grant or 
as a separate grant entered into by the Secretary for the purpose of 
evaluating a particular demonstration project or group of projects.''.

SEC. 1119. STATE GRANTS FOR PREVENTION AND TREATMENT PROGRAMS.

    Section 107 (42 U.S.C. 5106a) is amended to read as follows:

``SEC. 107. GRANTS TO STATES FOR CHILD ABUSE AND NEGLECT PREVENTION AND 
              TREATMENT PROGRAMS.

    ``(a)  Development and Operation Grants.--The Secretary shall make 
grants to the States, based on the population of children under the age 
of 18 in each State that applies for a grant under this section, for 
purposes of assisting the States in improving the child protective 
service system of each such State in--
            ``(1) the intake, assessment, screening, and investigation 
        of reports of abuse and neglect;
            ``(2)(A) creating and improving the use of 
        multidisciplinary teams and interagency protocols to enhance 
        investigations; and
            ``(B) improving legal preparation and representation, 
        including--
                    ``(i) procedures for appealing and responding to 
                appeals of substantiated reports of abuse and neglect; 
                and
                    ``(ii) provisions for the appointment of a guardian 
                ad litem.
            ``(3) case management and delivery of services provided to 
        children and their families;
            ``(4) enhancing the general child protective system by 
        improving risk and safety assessment tools and protocols, 
        automation systems that support the program and track reports 
        of child abuse and neglect from intake through final 
        disposition and information referral systems;
            ``(5) developing, strengthening, and facilitating training 
        opportunities and requirements for individuals overseeing and 
        providing services to children and their families through the 
        child protection system;
            ``(6) developing and facilitating training protocols for 
        individuals mandated to report child abuse or neglect;
            ``(7) developing, strengthening, and supporting child abuse 
        and neglect prevention, treatment, and research programs in the 
        public and private sectors;
            ``(8) developing, implementing, or operating--
                    ``(A) information and education programs or 
                training programs designed to improve the provision of 
                services to disabled infants with life-threatening 
                conditions for--
                            ``(i) professional and paraprofessional 
                        personnel concerned with the welfare of 
                        disabled infants with life-threatening 
                        conditions, including personnel employed in 
                        child protective services programs and health-
                        care facilities; and
                            ``(ii) the parents of such infants; and
                    ``(B) programs to assist in obtaining or 
                coordinating necessary services for families of 
                disabled infants with life-threatening conditions, 
                including--
                            ``(i) existing social and health services;
                            ``(ii) financial assistance; and
                            ``(iii) services necessary to facilitate 
                        adoptive placement of any such infants who have 
                        been relinquished for adoption; or
            ``(9) developing and enhancing the capacity of community-
        based programs to integrate shared leadership strategies 
        between parents and professionals to prevent and treat child 
        abuse and neglect at the neighborhood level.
    ``(b) Eligibility Requirements.--In order for a State to qualify 
for a grant under subsection (a), such State shall provide an assurance 
or certification, signed by the chief executive officer of the State, 
that the State--
            ``(1) has in effect and operation a State law or Statewide 
        program relating to child abuse and neglect which ensures--
                    ``(A) provisions or procedures for the reporting of 
                known and suspected instances of child abuse and 
                neglect;
                    ``(B) procedures for the immediate screening, 
                safety assessment, and prompt investigation of such 
                reports;
                    ``(C) procedures for immediate steps to be taken to 
                ensure and protect the safety of the abused or 
                neglected child and of any other child under the same 
                care who may also be in danger of abuse or neglect;
                    ``(D) provisions for immunity from prosecution 
                under State and local laws and regulations for 
                individuals making good faith reports of suspected or 
                known instances of child abuse or neglect;
                    ``(E) methods to preserve the confidentiality of 
                all records in order to protect the rights of the child 
                and of the child's parents or guardians, including 
                methods to ensure that disclosure (and redisclosure) of 
                information concerning child abuse or neglect involving 
                specific individuals is made only to persons or 
                entities that the State determines have a need for such 
                information directly related to the purposes of this 
                Act;
                    ``(F) requirements for the prompt disclosure of all 
                relevant information to any Federal, State, or local 
                governmental entity, or any agent of such entity, with 
                a need for such information in order to carry out its 
                responsibilities under law to protect children from 
                abuse and neglect;
                    ``(G) the cooperation of State law enforcement 
                officials, court of competent jurisdiction, and 
                appropriate State agencies providing human services;
                    ``(H) provisions requiring, and procedures in place 
                that facilitate the prompt expungement of any records 
                that are accessible to the general public or are used 
                for purposes of employment or other background checks 
                in cases determined to be unsubstantiated or false, 
                except that nothing in this section shall prevent State 
                child protective service agencies from keeping 
                information on unsubstantiated reports in their 
                casework files to assist in future risk and safety 
                assessment; and
                    ``(I) provisions and procedures requiring that in 
                every case involving an abused or neglected child which 
                results in a judicial proceeding, a guardian ad litem 
                shall be appointed to represent the child in such 
                proceedings; and
            ``(2) has in place procedures for responding to the 
        reporting of medical neglect (including instances of 
        withholding of medically indicated treatment from disabled 
        infants with life-threatening conditions), procedures or 
        programs, or both (within the State child protective services 
        system), to provide for--
                    ``(A) coordination and consultation with 
                individuals designated by and within appropriate 
                health-care facilities;
                    ``(B) prompt notification by individuals designated 
                by and within appropriate health-care facilities of 
                cases of suspected medical neglect (including instances 
                of withholding of medically indicated treatment from 
                disabled infants with life-threatening conditions); and
                    ``(C) authority, under State law, for the State 
                child protective service system 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.
    ``(c) Additional Requirement.--Not later than 2 years after the 
date of enactment of this section, the State shall provide an assurance 
or certification that the State has in place provisions, procedures, 
and mechanisms by which individuals who disagree with an official 
finding of abuse or neglect can appeal such finding.
    ``(d) State Program Plan.--To be eligible to receive a grant under 
this section, a State shall submit every 5 years a plan to the 
Secretary that specifies the child protective service system area or 
areas described in subsection (a) that the State intends to address 
with funds received under the grant. Such plan shall, to the maximum 
extent practicable, be coordinated with the plan of the State for child 
welfare services and family preservation and family support services 
under part B of title IV of the Social Security Act and shall contain 
an outline of the activities that the State intends to carry out using 
amounts provided under the grant to achieve the purposes of this Act, 
including the procedures to be used for--
            ``(1) receiving and assessing reports of child abuse or 
        neglect;
            ``(2) investigating such reports;
            ``(3) protecting children by removing them from dangerous 
        settings and ensuring their placement in a safe environment;
            ``(4) providing services or referral for services for 
        families and children where the child is not in danger of harm;
            ``(5) providing services to individuals, families, or 
        communities, either directly or through referral, aimed at 
        preventing the occurrence of child abuse and neglect;
            ``(6) providing training to support direct line and 
        supervisory personnel in report-taking, screening, assessment, 
        decision-making, and referral for investigation; and
            ``(7) providing training for individuals mandated to report 
        suspected cases of child abuse or neglect.
    ``(e) Restrictions Relating to Child Welfare Services.--Programs or 
projects relating to child abuse and neglect assisted under part B of 
title IV of the Social Security Act shall comply with the requirements 
set forth in paragraphs (1) (A) and (B), and (2) of subsection (b).
    ``(f) Annual State Data Reports.--Each State to which a grant is 
made under this part shall annually work with the Secretary to provide, 
to the maximum extent practicable, 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--
                    ``(A) substantiated;
                    ``(B) unsubstantiated; and
                    ``(C) determined to be false.
            ``(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 or an equivalent State program;
                    ``(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 by disposition of the case.
            ``(4) The number of families that received preventive 
        services from the State during the year.
            ``(5) The number of deaths in the State during the year 
        resulting from child abuse or neglect.
            ``(6) Of the number of children described in paragraph (5), 
        the number of such children who were in foster care.
            ``(7) The number of child protective service workers 
        responsible for the intake and screening of reports filed in 
        the previous year.
            ``(8) The agency response time with respect to each such 
        report with respect to initial investigation of reports of 
        child abuse or neglect.
            ``(9) The response time with respect to the provision of 
        services to families and children where an allegation of abuse 
        or neglect has been made.
            ``(10) The number of child protective service workers 
        responsible for intake, assessment, and investigation of child 
        abuse and neglect reports relative to the number of reports 
        investigated in the previous year.
    ``(g) Annual Report by the Secretary.--Within 6 months after 
receiving the State reports under subsection (f), the Secretary shall 
prepare a report based on information provided by the States for the 
fiscal year under such subsection and shall make the report and such 
information available to the Congress and the national clearinghouse 
for information relating to child abuse.''.

SEC. 1120. REPEAL.

    Section 108 (42 U.S.C. 5106b) is repealed.

SEC. 1121. MISCELLANEOUS REQUIREMENTS.

    Section 110 (42 U.S.C. 5106d) is amended by striking subsection 
(c).

SEC. 1122. DEFINITIONS.

    Section 113 (42 U.S.C. 5106h) is amended--
            (1) by striking paragraphs (1) and (2);
            (2) by redesignating paragraphs (3) through (10) as 
        paragraphs (1) through (8), respectively; and
            (3) in paragraph (2) (as so redesignated), to read as 
        follows:
            ``(2) the term `child abuse and neglect' means, at a 
        minimum, any recent act or failure to act on the part of a 
        parent or caretaker, which results in death, serious physical 
        or emotional harm, sexual abuse or exploitation, or an act or 
        failure to act which presents an imminent risk of serious 
        harm;''.

SEC. 1123. AUTHORIZATION OF APPROPRIATIONS.

    Section 114(a) (42 U.S.C. 5106h(a)) is amended to read as follows:
    ``(a) In General.--
            ``(1) General authorization.--There are authorized to be 
        appropriated to carry out this title, $100,000,000 for fiscal 
        year 1996, and such sums as may be necessary for each of the 
        fiscal years 1997 through 2000.
            ``(2) Discretionary activities.--
                    ``(A) In general.--Of the amounts appropriated for 
                a fiscal year under paragraph (1), the Secretary shall 
                make available 33\1/3\ percent of such amounts to fund 
                discretionary activities under this title.
                    ``(B) Demonstration projects.--Of the amounts made 
                available for a fiscal year under subparagraph (A), the 
                Secretary make available not more than 40 percent of 
                such amounts to carry out section 106.''.

SEC. 1124. RULE OF CONSTRUCTION.

    Title I (42 U.S.C. 5101 et seq.) is amended by adding at the end 
thereof the following new section:

``SEC. 115. RULE OF CONSTRUCTION.

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

SEC. 1125. TECHNICAL AMENDMENT.

    Section 1404A of the Victims of Crime Act of 1984 (42 U.S.C. 
10603a) is amended--
            (1) by striking ``1402(d)(2)(D) and (d)(3)'' and inserting 
        ``1402(d)(2)''; and
            (2) by striking ``section 4(d)'' and inserting ``section 
        109''.

 Subtitle B--Community-Based Child Abuse and Neglect Prevention Grants

SEC. 1131. ESTABLISHMENT OF PROGRAM.

    Title II of the Child Abuse Prevention and Treatment Act (42 U.S.C. 
5116 et seq) is amended to read as follows:

     ``TITLE II--COMMUNITY-BASED FAMILY RESOURCE AND SUPPORT GRANTS

``SEC. 201. PURPOSE AND AUTHORITY.

    ``(a) Purpose.--It is the purpose of this Act to support State 
efforts to develop, operate, expand and enhance a network of community-
based, prevention-focused, family resource and support programs that 
are culturally competent and that coordinate resources among existing 
education, vocational rehabilitation, disability, respite, health, 
mental health, job readiness, self-sufficiency, child and family 
development, community action, Head Start, child care, child abuse and 
neglect prevention, juvenile justice, domestic violence prevention and 
intervention, housing, and other human service organizations within the 
State.
    ``(b) Authority.--The Secretary shall make grants under this title 
on a formula basis to the entity designated by the State as the lead 
entity (hereafter referred to in this title as the `lead entity') for 
the purpose of--
            ``(1) developing, operating, expanding and enhancing 
        Statewide networks of community-based, prevention-focused, 
        family resource and support programs that--
                    ``(A) offer sustained assistance to families;
                    ``(B) provide early, comprehensive, and holistic 
                support for all parents;
                    ``(C) promote the development of parental 
                competencies and capacities, especially in young 
                parents and parents with very young children;
                    ``(D) increase family stability;
                    ``(E) improve family access to other formal and 
                informal resources and opportunities for assistance 
                available within communities;
                    ``(F) support the additional needs of families with 
                children with disabilities; and
                    ``(G) decrease the risk of homelessness;
            ``(2) fostering the development of a continuum of 
        preventive services for children and families through State and 
community-based collaborations and partnerships both public and 
private;
            ``(3) financing the start-up, maintenance, expansion, or 
        redesign of specific family resource and support program 
        services (such as respite services, child abuse and neglect 
        prevention activities, disability services, mental health 
        services, housing services, transportation, adult education, 
        home visiting and other similar services) identified by the 
        inventory and description of current services required under 
        section 205(a)(3) as an unmet need, and integrated with the 
        network of community-based family resource and support program 
        to the extent practicable given funding levels and community 
        priorities;
            ``(4) maximizing funding for the financing, planning, 
        community mobilization, collaboration, assessment, information 
        and referral, startup, training and technical assistance, 
        information management, reporting and evaluation costs for 
        establishing, operating, or expanding a Statewide network of 
        community-based, prevention-focused, family resource and 
        support program; and
            ``(5) financing public information activities that focus on 
        the healthy and positive development of parents and children 
        and the promotion of child abuse and neglect prevention 
        activities.

``SEC. 202. ELIGIBILITY.

    ``A State shall be eligible for a grant under this title for a 
fiscal year if--
            ``(1)(A) the chief executive officer of the State has 
        designated an entity to administer funds under this title for 
        the purposes identified under the authority of this title, 
        including to develop, implement, operate, enhance or expand a 
        Statewide network of community-based, prevention-focused, 
        family resource and support programs, child abuse and neglect 
        prevention activities and access to respite services integrated 
        with the Statewide network;
            ``(B) in determining which entity to designate under 
        subparagraph (A), the chief executive officer should give 
        priority consideration to the trust fund advisory board of the 
        State or an existing entity that leverages Federal, State, and 
        private funds for a broad range of child abuse and neglect 
        prevention activities and family resource programs, and that is 
        directed by an interdisciplinary, public-private structure, 
        including participants from communities; and
            ``(C) such lead entity is an existing public, quasi-public, 
        or nonprofit private entity with a demonstrated ability to work 
        with other State and community-based agencies to provide 
        training and technical assistance, and that has the capacity 
        and commitment to ensure the meaningful involvement of parents 
        who are consumers and who can provide leadership in the 
        planning, implementation, and evaluation of programs and policy 
        decisions of the applicant agency in accomplishing the desired 
        outcomes for such efforts;
            ``(2) the chief executive officer of the State provides 
        assurances that the lead entity will provide or will be 
        responsible for providing--
                    ``(A) a network of community-based family resource 
                and support programs composed of local, collaborative, 
                public-private partnerships directed by 
                interdisciplinary structures with balanced 
                representation from private and public sector members, 
                parents, and public and private nonprofit service 
                providers and individuals and organizations experienced 
                in working in partnership with families with children 
                with disabilities;
                    ``(B) direction to the network through an 
                interdisciplinary, collaborative, public-private 
                structure with balanced representation from private and 
                public sector members, parents, and public sector and 
                private nonprofit sector service providers; and
                    ``(C) direction and oversight to the network 
                through identified goals and objectives, clear lines of 
                communication and accountability, the provision of 
                leveraged or combined funding from Federal, State and 
                private sources, centralized assessment and planning 
                activities, the provision of training and technical 
                assistance, and reporting and evaluation functions; and
            ``(3) the chief executive officer of the State provides 
        assurances that the lead entity--
                    ``(A) has a demonstrated commitment to parental 
                participation in the development, operation, and 
                oversight of the Statewide network of community-based, 
                prevention-focused, family resource and support 
                programs;
                    ``(B) has a demonstrated ability to work with State 
                and community-based public and private nonprofit 
                organizations to develop a continuum of preventive, 
                family centered, holistic services for children and 
                families through the Statewide network of community-
                based, prevention-focused, family resource and support 
                programs;
                    ``(C) has the capacity to provide operational 
                support (both financial and programmatic) and training 
                and technical assistance, to the Statewide network of 
                community-based, prevention-focused, family resource 
                and support programs, through innovative, interagency 
                funding and interdisciplinary service delivery 
                mechanisms; and
                    ``(D) will integrate its efforts with individuals 
                and organizations experienced in working in partnership 
                with families with children with disabilities and with 
                the child abuse and neglect prevention activities of 
                the State, and demonstrate a financial commitment to 
                those activities.

``SEC. 203. AMOUNT OF GRANT.

    ``(a) Reservation.--The Secretary shall reserve 1 percent of the 
amount appropriated under section 210 for a fiscal year to make 
allotments to Indian tribes and tribal organizations and migrant 
programs.
    ``(b) Allotment.--
            ``(1) In general.--Of the amounts appropriated for a fiscal 
        year under section 210 and remaining after the reservation 
        under subsection (a), the Secretary shall allot to each State 
        lead entity an amount equal to--
                    ``(A) the State minor child amount for such State 
                as determined under paragraph (2); and
                    ``(B) the State matchable amount for such State as 
                determined under paragraph (3).
            ``(2) State minor child amount.--The amount determined 
        under this paragraph for a fiscal year for a State shall be 
        equal to an amount that bears the same relationship to 50 
        percent of the amounts appropriated and remaining under 
        paragraph (1) for such fiscal year as the number of children 
        under 18 residing in the State bears to the total number of 
        children under 18 residing in all States, except that no State 
        shall receive less than $250,000.
            ``(3) State matchable amount.--The amount determined under 
        this paragraph for a fiscal year for a State shall be equal 
        to--
                    ``(A)(i) 50 percent of the amounts appropriated and 
                remaining under paragraph (1) for such fiscal year; 
                divided by
                    ``(ii) 50 percent of the total amount that all 
                States have directed through the respective lead 
                agencies to the purposes identified under the authority 
                of this title for the fiscal year, including 
                foundation, corporate, and other private funding, State 
                revenues, and Federal funds, as determined by the 
                Secretary; multiplied by
                    ``(B) 50 percent of the total amount that the State 
                has directed through the lead agency to the purposes 
                identified under the authority of this title for such 
                fiscal year, including foundation, corporate, and other 
                private funding, State revenues, and Federal funds.
    ``(c) Allocation.--Funds allotted to a State under this section 
shall be awarded on a formula basis for a 3-year period. Payment under 
such allotments shall be made by the Secretary annually on the basis 
described in subsection (a).

``SEC. 204. EXISTING AND CONTINUATION GRANTS.

    ``(a) Existing Grants.--Notwithstanding the enactment of this 
title, a State or entity that has a grant, contract, or cooperative 
agreement in effect, on the date of enactment of this title, under the 
Family Resource and Support Program, the Community-Based Family 
Resource Program, the Family Support Center Program, the Emergency 
Child Abuse Prevention Grant Program, or the Temporary Child Care for 
Children with Disabilities and Crisis Nurseries Programs shall continue 
to receive funds under such programs, subject to the original terms 
under which such funds were granted, through the end of the applicable 
grant cycle.
    ``(b) Continuation Grants.--The Secretary may continue grants for 
Family Resource and Support Program grantees, and those programs 
otherwise funded under this Act, on a noncompetitive basis, subject to 
the availability of appropriations, satisfactory performance by the 
grantee, and receipt of reports required under this Act, until such 
time as the grantee no longer meets the original purposes of this Act.

``SEC. 205. APPLICATION.

    ``(a) In General.--A grant may not be made to a State under this 
title unless an application therefore is submitted by the State to the 
Secretary and such application contains the types of information 
specified by the Secretary as essential to carrying out the provisions 
of section 202, including--
            ``(1) a description of the lead entity that will be 
        responsible for the administration of funds provided under this 
        title and the oversight of programs funded through the 
        Statewide network of community-based, prevention-focused, 
        family resource and support programs which meets the 
        requirements of section 202;
            ``(2) a description of how the network of community-based, 
        prevention-focused, family resource and support programs will 
        operate and how family resource and support services provided 
        by public and private, nonprofit organizations, including those 
        funded by programs consolidated under this Act, will be 
        integrated into a developing continuum of family centered, 
        holistic, preventive services for children and families;
            ``(3) an assurance that an inventory of current family 
        resource programs, respite, child abuse and neglect prevention 
        activities, and other family resource services operating in the 
        State, and a description of current unmet needs, will be 
        provided;
            ``(4) a budget for the development, operation and expansion 
        of the State's network of community-based, prevention-focused, 
        family resource and support programs that verifies that the 
        State will expend an amount equal to not less than 20 percent 
        of the amount received under this title (in cash, not in-kind) 
        for activities under this title;
            ``(5) an assurance that funds received under this title 
        will supplement, not supplant, other State and local public 
        funds designated for the Statewide network of community-based, 
        prevention-focused, family resource and support programs;
            ``(6) an assurance that the State network of community-
        based, prevention-focused, family resource and support programs 
        will maintain cultural diversity, and be culturally competent 
        and socially sensitive and responsive to the needs of families 
        with children with disabilities;
            ``(7) an assurance that the State has the capacity to 
        ensure the meaningful involvement of parents who are consumers 
        and who can provide leadership in the planning, implementation, 
        and evaluation of the programs and policy decisions of the 
        applicant agency in accomplishing the desired outcomes for such 
        efforts;
            ``(8) a description of the criteria that the entity will 
        use to develop, or select and fund, individual community-based, 
        prevention-focused, family resource and support programs as 
        part of network development, expansion or enhancement;
            ``(9) a description of outreach activities that the entity 
        and the community-based, prevention-focused, family resource 
        and support programs will undertake to maximize the 
        participation of racial and ethnic minorities, new immigrant 
        populations, children and adults with disabilities, homeless 
        families and those at risk of homelessness, and members of 
        other underserved or underrepresented groups;
            ``(10) a plan for providing operational support, training 
        and technical assistance to community-based, prevention-
        focused, family resource and support programs for development, 
        operation, expansion and enhancement activities;
            ``(11) a description of how the applicant entity's 
        activities and those of the network and its members will be 
        evaluated;
            ``(12) a description of that actions that the applicant 
        entity will take to advocate changes in State policies, 
        practices, procedures and regulations to improve the delivery 
        of prevention-focused, family resource and support program 
        services to all children and families; and
            ``(13) an assurance that the applicant entity will provide 
        the Secretary with reports at such time and containing such 
        information as the Secretary may require.

``SEC. 206. LOCAL PROGRAM REQUIREMENTS.

    ``(a) In General.--Grants made under this title shall be used to 
develop, implement, operate, expand and enhance community-based, 
prevention-focused, family resource and support programs that--
            ``(1) assess community assets and needs through a planning 
        process that involves parents and local public agencies, local 
        nonprofit organizations, and private sector representatives;
            ``(2) develop a strategy to provide, over time, a continuum 
        of preventive, holistic, family centered services to children 
        and families, especially to young parents and parents with 
        young children, through public-private partnerships;
            ``(3) provide--
                    ``(A) core family resource and support services 
                such as--
                            ``(i) parent education, mutual support and 
                        self help, and leadership services;
                            ``(ii) early developmental screening of 
                        children;
                            ``(iii) outreach services;
                            ``(iv) community and social service 
                        referrals; and
                            ``(v) follow-up services;
                    ``(B) other core services, which must be provided 
                or arranged for through contracts or agreements with 
                other local agencies, including all forms of respite 
                services to the extent practicable; and
                    ``(C) access to optional services, including--
                            ``(i) child care, early childhood 
                        development and intervention services;
                            ``(ii) services and supports to meet the 
                        additional needs of families with children with 
                        disabilities;
                            ``(iii) job readiness services;
                            ``(iv) educational services, such as 
                        scholastic tutoring, literacy training, and 
                        General Educational Degree services;
                            ``(v) self-sufficiency and life management 
                        skills training;
                            ``(vi) community referral services; and
                            ``(vii) peer counseling;
            ``(4) develop leadership roles for the meaningful 
        involvement of parents in the development, operation, 
        evaluation, and oversight of the programs and services;
            ``(5) provide leadership in mobilizing local public and 
        private resources to support the provision of needed family 
        resource and support program services; and
            ``(6) participate with other community-based, prevention-
        focused, family resource and support program grantees in the 
        development, operation and expansion of the Statewide network.
    ``(b) Priority.--In awarding local grants under this title, a lead 
entity shall give priority to community-based programs serving low 
income communities and those serving young parents or parents with 
young children, and to community-based family resource and support 
programs previously funded under the programs consolidated under the 
Child Abuse Prevention and Treatment Act Amendments of 1995, so long as 
such programs meet local program requirements.

``SEC. 207. PERFORMANCE MEASURES.

    ``A State receiving a grant under this title, through reports 
provided to the Secretary, shall--
            ``(1) demonstrate the effective development, operation and 
        expansion of a Statewide network of community-based, 
        prevention-focused, family resource and support programs that 
        meets the requirements of this title;
            ``(2) supply an inventory and description of the services 
        provided to families by local programs that meet identified 
        community needs, including core and optional services as 
        described in section 202;
            ``(3) demonstrate the establishment of new respite and 
        other specific new family resources services, and the expansion 
        of existing services, to address unmet needs identified by the 
        inventory and description of current services required under 
        section 205(a)(3);
            ``(4) describe the number of families served, including 
        families with children with disabilities, and the involvement 
        of a diverse representation of families in the design, 
        operation, and evaluation of the Statewide network of 
        community-based, prevention-focused, family resource and 
        support programs, and in the design, operation and evaluation 
        of the individual community-based family resource and support 
        programs that are part of the Statewide network funded under 
        this title;
            ``(5) demonstrate a high level of satisfaction among 
        families who have used the services of the community-based, 
        prevention-focused, family resource and support programs;
            ``(6) demonstrate the establishment or maintenance of 
        innovative funding mechanisms, at the State or community level, 
        that blend Federal, State, local and private funds, and 
        innovative, interdisciplinary service delivery mechanisms, for 
        the development, operation, expansion and enhancement of the 
        Statewide network of community-based, prevention-focused, 
        family resource and support programs;
            ``(7) describe the results of a peer review process 
        conducted under the State program; and
            ``(8) demonstrate an implementation plan to ensure the 
        continued leadership of parents in the on-going planning, 
        implementation, and evaluation of such community-based, 
        prevention-focused, family resource and support programs.

``SEC. 208. NATIONAL NETWORK FOR COMMUNITY-BASED FAMILY RESOURCE 
              PROGRAMS.

    ``The Secretary may allocate such sums as may be necessary from the 
amount provided under the State allotment to support the activities of 
the lead entity in the State--
            ``(1) to create, operate and maintain a peer review 
        process;
            ``(2) to create, operate and maintain an information 
        clearinghouse;
            ``(3) to fund a yearly symposium on State system change 
        efforts that result from the operation of the Statewide 
        networks of community-based, prevention-focused, family 
        resource and support programs;
            ``(4) to create, operate and maintain a computerized 
        communication system between lead entities; and
            ``(5) to fund State-to-State technical assistance through 
        bi-annual conferences.

``SEC. 209. DEFINITIONS.

          ``For purposes of this title:
            ``(1) Children with disabilities.--The term `children with 
        disabilities' has the same meaning given such term in section 
        602(a)(2) of the Individuals with Disabilities Education Act.
            ``(2) Community referral services.--The term `community 
        referral services' means services provided under contract or 
        through interagency agreements to assist families in obtaining 
        needed information, mutual support and community resources, 
        including respite services, health and mental health services, 
        employability development and job training, and other social 
        services through help lines or other methods.
            ``(3) Culturally competent.--The term `culturally 
        competent' means services, support, or other assistance that is 
        conducted or provided in a manner that--
                    ``(A) is responsive to the beliefs, interpersonal 
                styles, attitudes, languages, and behaviors of those 
                individuals and families receiving services; and
                    ``(B) has the greatest likelihood of ensuring 
                maximum participation of such individuals and families.
            ``(4) Family resource and support program.--The term 
        `family resource and support program' means a community-based, 
        prevention-focused entity that--
                    ``(A) provides, through direct service, the core 
                services required under this title, including--
                            ``(i) parent education, support and 
                        leadership services, together with services 
                        characterized by relationships between parents 
                        and professionals that are based on equality 
                        and respect, and designed to assist parents in 
                        acquiring parenting skills, learning about 
                        child development, and responding appropriately 
                        to the behavior of their children;
                            ``(ii) services to facilitate the ability 
                        of parents to serve as resources to one another 
                        (such as through mutual support and parent 
                        self-help groups);
                            ``(iii) early developmental screening of 
                        children to assess any needs of children, and 
                        to identify types of support that may be 
                        provided;
                            ``(iv) outreach services provided through 
                        voluntary home visits and other methods to 
                        assist parents in becoming aware of and able to 
                        participate in family resources and support 
                        program activities;
                            ``(v) community and social services to 
                        assist families in obtaining community 
                        resources; and
                            ``(vi) follow-up services;
                    ``(B) provides, or arranges for the provision of, 
                other core services through contracts or agreements 
                with other local agencies, including all forms of 
                respite services; and
                    ``(C) provides access to optional services, 
                directly or by contract, purchase of service, or 
                interagency agreement, including--
                            ``(i) child care, early childhood 
                        development and early intervention services;
                            ``(ii) self-sufficiency and life management 
                        skills training;
                            ``(iii) education services, such as 
                        scholastic tutoring, literacy training, and 
                        General Educational Degree services;
                            ``(iv) job readiness skills;
                            ``(v) child abuse and neglect prevention 
                        activities;
                            ``(vi) services that families with children 
                        with disabilities or special needs may require;
                            ``(vii) community and social service 
                        referral;
                            ``(viii) peer counseling;
                            ``(ix) referral for substance abuse 
                        counseling and treatment; and
                            ``(x) help line services.
            ``(5) National network for community-based family resource 
        programs.--The term `network for community-based family 
        resource program' means the organization of State designated 
        entities who receive grants under this title, and includes the 
        entire membership of the Children's Trust Fund Alliance and the 
        National Respite Network.
            ``(6) Outreach services.--The term `outreach services' 
        means services provided to assist consumers, through voluntary 
        home visits or other methods, in accessing and participating in 
        family resource and support program activities.
            ``(7) Respite services.--The term `respite services' means 
        short term care services provided in the temporary absence of 
        the regular caregiver (parent, other relative, foster parent, 
        adoptive parent, or guardian) to children who--
                    ``(A) are in danger of abuse or neglect;
                    ``(B) have experienced abuse or neglect; or
                    ``(C) have disabilities, chronic, or terminal 
                illnesses.
        Such services shall be provided within or outside the home of 
        the child, be short-term care (ranging from a few hours to a 
        few weeks of time, per year), and be intended to enable the 
        family to stay together and to keep the child living in the 
        home and community of the child.

``SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title, 
$108,000,000 for each of the fiscal years 1996 through 2000.''.

SEC. 1132. REPEALS.

    (a) Temporary Child Care for Children with Disabilities and Crisis 
Nurseries Act.--The Temporary Child Care for Children with Disabilities 
and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.) is repealed.
    (b) Family Support Centers.--Subtitle F of title VII of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11481 et seq.) is 
repealed.

          Subtitle C--Family Violence Prevention and Services

SEC. 1141. REFERENCE.

    Except as otherwise expressly provided, whenever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Family 
Violence Prevention and Services Act (42 U.S.C. 10401 et seq.).

SEC. 1142. STATE DEMONSTRATION GRANTS.

    Section 303(e) (42 U.S.C. 10420(e)) is amended--
            (1) by striking ``following local share'' and inserting 
        ``following non-Federal matching local share''; and
            (2) by striking ``20 percent'' and all that follows through 
        ``private sources.'' and inserting ``with respect to an entity 
        operating an existing program under this title, not less than 
        20 percent, and with respect to an entity intending to operate 
        a new program under this title, not less than 35 percent.''.

SEC. 1143. ALLOTMENTS.

    Section 304(a)(1) (42 U.S.C. 10403(a)(1)) is amended by striking 
``$200,000'' and inserting ``$400,000''.

SEC. 1144. AUTHORIZATION OF APPROPRIATIONS.

    Section 310 (42 U.S.C. 10409) is amended--
            (1) in subsection (b), by striking ``80'' and inserting 
        ``70''; and
            (2) by adding at the end thereof the following new 
        subsections:
    ``(d) Grants for State Coalitions.--Of the amounts appropriated 
under subsection (a) for each fiscal year, not less than 10 percent of 
such amounts shall be used by the Secretary for making grants under 
section 311.
    ``(e) Non-Supplanting Requirement.--Federal funds made available to 
a State under this title shall be used to supplement and not supplant 
other Federal, State, and local public funds expended to provide 
services and activities that promote the purposes of this title.''.

                   Subtitle D--Adoption Opportunities

SEC. 1151. REFERENCE.

    Except as otherwise expressly provided, whenever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Child 
Abuse Prevention and Treatment and Adoption Reform Act of 1978 (42 
U.S.C. 5111 et seq.).

SEC. 1152. FINDINGS AND PURPOSE.

    Section 201 (42 U.S.C. 5111) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``50 percent between 1985 
                        and 1990'' and inserting ``61 percent between 
                        1986 and 1994''; and
                            (ii) by striking ``400,000 children at the 
                        end of June, 1990'' and inserting ``452,000 as 
                        of June, 1994''; and
                    (B) in paragraph (5), by striking ``local'' and 
                inserting ``legal''; and
                    (C) in paragraph (7), to read as follows:
            ``(7)(A) currently, 40,000 children are free for adoption 
        and awaiting placement;
            ``(B) such children are typically school aged, in sibling 
        groups, have experienced neglect or abuse, or have a physical, 
        mental, or emotional disability; and
            ``(C) while the children are of all races, children of 
        color and older children (over the age of 10) are over 
        represented in such group;''; and
            (2) in subsection (b)--
                    (A) by striking ``conditions, by--'' and all that 
                follows through ``providing a mechanism'' and inserting 
                ``conditions, by providing a mechanism''; and
                    (B) by redesignating subparagraphs (A) through (C), 
                as paragraphs (1) through (3), respectively and by 
                realigning the margins of such paragraphs accordingly.

SEC. 1153. INFORMATION AND SERVICES.

    Section 203 (42 U.S.C. 5113) is amended--
            (1) in subsection (a), by striking the last sentence;
            (2) in subsection (b)--
                    (A) in paragraph (6), to read as follows:
            ``(6) study the nature, scope, and effects of the placement 
        of children in kinship care arrangements, pre-adoptive, or 
        adoptive homes;'';
                    (B) by redesignating paragraphs (7) through (9) as 
                paragraphs (8) through (10), respectively; and
                    (C) by inserting after paragraph (6), the following 
                new paragraph:
            ``(7) study the efficacy of States contracting with public 
        or private nonprofit agencies (including community-based and 
        other organizations), or sectarian institutions for the 
        recruitment of potential adoptive and foster families and to 
        provide assistance in the placement of children for 
        adoption;''; and
            (3) in subsection (d)--
                    (A) in paragraph (2)--
                            (i) by striking ``Each'' and inserting 
                        ``(A) Each'';
                            (ii) by striking ``for each fiscal year'' 
                        and inserting ``that describes the manner in 
                        which the State will use funds during the 3-
                        fiscal years subsequent to the date of the 
                        application to accomplish the purposes of this 
                        section. Such application shall be''; and
                            (iii) by adding at the end thereof the 
                        following new subparagraph:
    ``(B) The Secretary shall provide, directly or by grant to or 
contract with public or private nonprofit agencies or organizations--
            ``(i) technical assistance and resource and referral 
        information to assist State or local governments with 
        termination of parental rights issues, in recruiting and 
        retaining adoptive families, in the successful placement of 
        children with special needs, and in the provision of pre- and 
        post-placement services, including post-legal adoption 
        services; and
            ``(ii) other assistance to help State and local governments 
        replicate successful adoption-related projects from other areas 
        in the United States.''.

SEC. 1154. AUTHORIZATION OF APPROPRIATIONS.

    Section 205 (42 U.S.C. 5115) is amended--
            (1) in subsection (a), by striking ``$10,000,000,'' and all 
        that follows through ``203(c)(1)'' and inserting ``$20,000,000 
        for fiscal year 1996, and such sums as may be necessary for 
        each of the fiscal years 1997 through 2000 to carry out 
        programs and activities authorized'';
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection (b).

          Subtitle E--Abandoned Infants Assistance Act of 1986

SEC. 1161. REAUTHORIZATION.

    Section 104(a)(1) of the Abandoned Infants Assistance Act of 1988 
(42 U.S.C. 670 note) is amended by striking ``$20,000,000'' and all 
that follows through the end thereof and inserting ``$35,000,000 for 
each of the fiscal years 1995 and 1996, and such sums as may be 
necessary for each of the fiscal years 1997 through 2000''.

            Subtitle F--Reauthorization of Various Programs

SEC. 1171. MISSING CHILDREN'S ASSISTANCE ACT.

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

SEC. 1172. VICTIMS OF CHILD ABUSE ACT OF 1990.

    Section 214B of the Victims of Child Abuse Act of 1990 (42 U.S.C. 
13004) is amended--
            (1) in subsection (a)(2), by striking ``and 1996'' and 
        inserting ``1996, and 1997''; and
            (2) in subsection (b)(2), by striking ``and 1996'' and 
        inserting ``1996 and 1997''.

         TITLE XII--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

SEC. 1201. REDUCTIONS.

    (a) Definitions.--As used in this section:
            (1) Appropriate effective date.--The term ``appropriate 
        effective date'', used with respect to a Department referred to 
        in this section, means the date on which all provisions of this 
        Act that the Department is required to carry out, and 
        amendments and repeals made by this Act to provisions of 
        Federal law that the Department is required to carry out, are 
        effective.
            (2) Covered activity.--The term ``covered activity'', used 
        with respect to a Department referred to in this section, means 
        an activity that the Department is required to carry out 
        under--
                    (A) a provision of this Act; or
                    (B) a provision of Federal law that is amended or 
                repealed by this Act.
    (b) Reports.--
            (1) Contents.--Not later than December 31, 1995, each 
        Secretary referred to in paragraph (2) shall prepare and submit 
        to the relevant committees described in paragraph (3) a report 
        containing--
                    (A) the determinations described in subsection (c);
                    (B) appropriate documentation in support of such 
                determinations; and
                    (C) a description of the methodology used in making 
                such determinations.
            (2) Secretary.--The Secretaries referred to in this 
        paragraph are--
                    (A) the Secretary of Agriculture;
                    (B) the Secretary of Education;
                    (C) the Secretary of Labor;
                    (D) the Secretary of Housing and Urban Development; 
                and
                    (E) the Secretary of Health and Human Services.
            (3) Relevant committees.--The relevant Committees described 
        in this paragraph are the following:
                    (A) With respect to each Secretary described in 
                paragraph (2), the Committee on Government Reform and 
                Oversight of the House of Representatives and the 
                Committee on Governmental Affairs of the Senate.
                    (B) With respect to the Secretary of Agriculture, 
                the Committee on Agriculture and the Committee on 
                Economic and Educational Opportunities of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate.
                    (C) With respect to the Secretary of Education, the 
                Committee on Economic and Educational Opportunities of 
                the House of Representatives and the Committee on Labor 
                and Human Resources of the Senate.
                    (D) With respect to the Secretary of Labor, the 
                Committee on Economic and Educational Opportunities of 
                the House of Representatives and the Committee on Labor 
                and Human Resources of the Senate.
                    (E) With respect to the Secretary of Housing and 
                Urban Development, the Committee on Banking and 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate.
                    (F) With respect to the Secretary of Health and 
                Human Services, the Committee on Economic and 
                Educational Opportunities of the House of 
                Representatives, the Committee on Labor and Human 
                Resources of the Senate, the Committee on Ways and 
                Means of the House of Representatives, and the 
                Committee on Finance of the Senate.
            (4) Report on changes.--Not later than December 31, 1996, 
        and each December 31 thereafter, each Secretary referred to in 
        paragraph (2) shall prepare and submit to the relevant 
        Committees described in paragraph (3), a report concerning any 
        changes with respect to the determinations made under 
        subsection (c) for the year in which the report is being 
        submitted.
    (c) Determinations.--Not later than December 31, 1995, each 
Secretary referred to in subsection (b)(2) shall determine--
            (1) the number of full-time equivalent positions required 
        by the Department (or the Federal Partnership established under 
        section 771) headed by such Secretary to carry out the covered 
        activities of the Department (or Federal Partnership), as of 
        the day before the date of enactment of this Act;
            (2) the number of such positions required by the Department 
        (or Federal Partnership) to carry out the activities, as of the 
        appropriate effective date for the Department (or Federal 
        Partnership); and
            (3) the difference obtained by subtracting the number 
        referred to in paragraph (2) from the number referred to in 
        paragraph (1).
    (d) Actions.--Not later than 30 days after the appropriate 
effective date for the Department involved, each Secretary referred to 
in subsection (b)(2) shall take such actions as may be necessary, 
including reduction in force actions, consistent with sections 3502 and 
3595 of title 5, United States Code, to reduce the number of positions 
of personnel of the Department by at least the difference referred to 
in subsection (c)(3).
    (e) Consistency.--
            (1) Education.--The Secretary of Education shall carry out 
        this section in a manner that enables the Secretary to meet the 
        requirements of this section and section 776(i)(2).
            (2) Labor.--The Secretary of Labor shall carry out this 
        section in a manner that enables the Secretary to meet the 
        requirements of this section and section 776(i)(2).
            (3) Health and human services.--The Secretary of Health and 
        Human Services shall carry out this section in a manner that 
        enables the Secretary to meet the requirements of this section 
        and section 1202.
    (f) Calculation.--In determining, under subsection (c), the number 
of full-time equivalent positions required by a Department to carry out 
a covered activity, a Secretary referred to in subsection (b)(2), shall 
include the number of such positions occupied by personnel carrying out 
program functions or other functions (including budgetary, legislative, 
administrative, planning, evaluation, and legal functions) related to 
the activity.
    (g) General Accounting Office Report.--Not later than July 1, 1996, 
the Comptroller General of the United States shall prepare and submit 
to the committees described in subsection (b)(3), a report concerning 
the determinations made by each Secretary under subsection (c). Such 
report shall contain an analysis of the determinations made by each 
Secretary under subsection (c) and a determination as to whether 
further reductions in full-time equivalent positions are appropriate.

SEC. 1202. REDUCTIONS IN FEDERAL BUREAUCRACY.

    (a) In General.--The Secretary of Health and Human Services shall 
reduce the Federal workforce within the Department of Health and Human 
Services by an amount equal to the sum of--
            (1) 75 percent of the full-time equivalent positions at 
        each such Department that relate to any direct spending 
        program, or any program funded through discretionary spending, 
        that has been converted into a block grant program under this 
        Act and the amendments made by this Act; and
            (2) an amount equal to 75 percent of that portion of the 
        total full-time equivalent departmental management positions at 
        each such Department that bears the same relationship to the 
        amount appropriated for the programs referred to in paragraph 
        (1) as such amount relates to the total amount appropriated for 
        use by each such Department.
    (b) Reductions in the Department of Health and Human Services.--
Notwithstanding any other provision of this Act, the Secretary of 
Health and Human Services shall take such actions as may be necessary, 
including reductions in force actions, consistent with sections 3502 
and 3595 of title 5, United States Code, to reduce the full-time 
equivalent positions within the Department of Health and Human 
Services--
            (1) by 245 full-time equivalent positions related to the 
        program converted into a block grant under the amendment made 
        by section 101(b); and
            (2) by 60 full-time equivalent managerial positions in the 
        Department.

SEC. 1203. REDUCING PERSONNEL IN WASHINGTON, DC, AREA.

    In making reductions in full-time equivalent positions, the 
Secretary is encouraged to reduce personnel in the Washington, DC, area 
office (agency headquarters) before reducing field personnel.

                  TITLE XIII--MISCELLANEOUS PROVISIONS

SEC. 1301. EXPENDITURE OF FEDERAL FUNDS IN ACCORDANCE WITH LAWS AND 
              PROCEDURES APPLICABLE TO EXPENDITURE OF STATE FUNDS.

    (a) In General.--Notwithstanding any other provision of law, any 
funds received by a State under the provisions of law specified in 
subsection (b) shall be expended only in accordance with the laws and 
procedures applicable to expenditures of the State's own revenues, 
including appropriation by the State legislature, consistent with the 
terms and conditions required under such provisions of law.
    (b) Provisions of Law.--The provisions of law specified in this 
subsection are the following:
            (1) Part A of title IV of the Social Security Act (relating 
        to block grants for temporary assistance to needy families).
            (2) Section 25 of the Food Stamp Act of 1977 (relating to 
        the optional State food assistance block grant).
            (3) The Child Care and Development Block Grant Act of 1990 
        (relating to block grants for child care).

SEC. 1302. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO FUGITIVE 
              FELONS AND PROBATION AND PAROLE VIOLATORS.

    (a) Eligibility for Assistance.--The United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 6(l)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by inserting immediately after paragraph (6) 
                the following new paragraph:
            ``(7) provide that it shall be cause for immediate 
        termination of the tenancy of a public housing tenant if such 
        tenant--
                    ``(A) is fleeing to avoid prosecution, or custody 
                or confinement after conviction, under the laws of the 
                place from which the individual flees, for a crime, or 
                attempt to commit a crime, which is a felony under the 
                laws of the place from which the individual flees, or 
                which, in the case of the State of New Jersey, is a 
                high misdemeanor under the laws of such State; or
            ``(2) is violating a condition of probation or parole 
        imposed under Federal or State law.''; and
            (2) in section 8(d)(1)(B)--
                    (A) in clause (iii), by striking ``and'' at the 
                end;
                    (B) in clause (iv), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding after clause (iv) the following new 
                clause:
                            ``(v) it shall be cause for termination of 
                        the tenancy of a tenant if such tenant--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, under the laws of the 
place from which the individual flees, for a crime, or attempt to 
commit a crime, which is a felony under the laws of the place from 
which the individual flees, or which, in the case of the State of New 
Jersey, is a high misdemeanor under the laws of such State; or
                                    ``(II) is violating a condition of 
                                probation or parole imposed under 
                                Federal or State law;''.
    (b) Provision of Information to Law Enforcement Agencies.--Section 
28 of the United States Housing Act of 1937, as added by section 504(c) 
of this Act, is amended by adding at the end the following new 
subsection:
    ``(b) Exchange of Information With Law Enforcement Agencies.--
Notwithstanding any other provision of law, each public housing agency 
that enters into a contract for assistance under section 6 or 8 of this 
Act with the Secretary shall furnish any Federal, State, or local law 
enforcement officer, upon the request of the officer, with the current 
address, Social Security number, and photograph (if applicable) of any 
recipient of assistance under this Act, if the officer--
            ``(1) furnishes the public housing agency with the name of 
        the recipient; and
            ``(2) notifies the agency that--
                    ``(A) such recipient--
                            ``(i) is fleeing to avoid prosecution, or 
                        custody or confinement after conviction, under 
                        the laws of the place from which the individual 
                        flees, for a crime, or attempt to commit a 
                        crime, which is a felony under the laws of the 
                        place from which the individual flees, or 
                        which, in the case of the State of New Jersey, 
                        is a high misdemeanor under the laws of such 
                        State; or
                            ``(ii) is violating a condition of 
                        probation or parole imposed under Federal or 
                        State law; or
                            ``(iii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties;
                    ``(B) the location or apprehension of the recipient 
                is within such officer's official duties; and
                    ``(C) the request is made in the proper exercise of 
                the officer's official duties.''.

SEC. 1303. SENSE OF THE SENATE REGARDING ENTERPRISE ZONES.

    (a) Findings.--The Senate finds that--
            (1) many of the Nation's urban centers are places with high 
        levels of poverty, high rates of welfare dependency, high crime 
        rates, poor schools, and joblessness;
            (2) Federal tax incentives and regulatory reforms can 
        encourage economic growth, job creation and small business 
        formation in many urban centers;
            (3) encouraging private sector investment in America's 
        economically distressed urban and rural areas is essential to 
        breaking the cycle of poverty and the related ills of crime, 
        drug abuse, illiteracy, welfare dependency, and unemployment; 
        and
            (4) the empowerment zones enacted in 1993 should be 
        enhanced by providing incentives to increase entrepreneurial 
        growth, capital formation, job creation, educational 
        opportunities, and home ownership in the designated communities 
        and zones.
    (b) Sense of the Senate.--Therefore, it is the Sense of the Senate 
that the Congress should adopt enterprise zone legislation in the One 
Hundred Fourth Congress, and that such enterprise zone legislation 
provide the following incentives and provisions:
            (1) Federal tax incentives that expand access to capital, 
        increase the formation and expansion of small businesses, and 
        promote commercial revitalization.
            (2) Regulatory reforms that allow localities to petition 
        Federal agencies, subject to the relevant agencies' approval, 
        for waivers or modifications of regulations to improve job 
        creation, small business formation and expansion, community 
        development, or economic revitalization objectives of the 
        enterprise zones.
            (3) Home ownership incentives and grants to encourage 
        resident management of public housing and home ownership of 
        public housing.
            (4) School reform pilot projects in certain designated 
        enterprise zones to provide low-income parents with new and 
        expanded educational options for their children's elementary 
        and secondary schooling.

SEC. 1304. SENSE OF THE SENATE REGARDING THE INABILITY OF THE NON-
              CUSTODIAL PARENT TO PAY CHILD SUPPORT.

    It is the sense of the Senate that--
    (a) States should diligently continue their efforts to enforce 
child support payments by the non-custodial parent to the custodial 
parent, regardless of the employment status or location of the non-
custodial parent; and
    (b) States are encouraged to pursue pilot programs in which the 
parents of a non-adult, non-custodial parent who refuses to or is 
unable to pay child support must--
            (1) pay or contribute to the child support owed by the non-
        custodial parent; or
            (2) otherwise fulfill all financial obligations and meet 
        all conditions imposed on the non-custodial parent, such as 
        participation in a work program or other related activity.

SEC. 1305. FOOD STAMP ELIGIBILITY.

    Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 2015(f)) is 
amended by striking the third sentence and inserting the following:
    ``The State agency shall, at its option, consider either all income 
and financial resources of the individual rendered ineligible to 
participate in the food stamp program under this subsection, or such 
income, less a pro rata share, and the financial resources of the 
ineligible individual, to determine the eligibility and the value of 
the allotment of the household of which such individual is a member.''.

SEC. 1306. SENSE OF THE SENATE ON LEGISLATIVE ACCOUNTABILITY FOR 
              UNFUNDED MANDATES IN WELFARE REFORM LEGISLATION.

    (a) Findings.--The Senate finds that the purposes of the Unfunded 
Mandates Reform Act of 1995 are--
            (1) to strengthen the partnership between the Federal 
        Government and State, local and tribal governments;
            (2) to end the imposition, in the absence of full 
        consideration by Congress, of Federal mandates on State, local 
        and tribal governments without adequate Federal funding, in a 
        manner that may displace other essential State, local and 
        tribal governmental priorities;
            (3) to assist Congress in its consideration of proposed 
        legislation establishing or revising Federal programs 
        containing Federal mandates affecting State, local and tribal 
        governments, and the private sector by--
                    (A) providing for the development of information 
                about the nature and size of mandates in proposed 
                legislation; and
                    (B) establishing a mechanism to bring such 
                information to the attention of the Senate and the 
                House of Representatives before the Senate and the 
                House of Representatives vote on proposed legislation;
            (4) to promote informed and deliberate decisions by 
        Congress on the appropriateness of Federal mandates in any 
        particular instance; and
            (5) to require that Congress consider whether to provide 
        funding to assist State, local and tribal governments in 
        complying with Federal mandates.
    (b) Sense of the Senate.--It is the sense of the Senate that prior 
to the Senate acting on the conference report on either H.R. 4 or any 
other legislation including welfare reform provisions, the 
Congressional Budget Office shall prepare an analysis of the conference 
report to include--
            (1) estimates, over each of the next 7 fiscal years, by 
        State and in total, of--
                    (A) the costs to States of meeting all work 
                requirements in the conference report, including those 
                for single-parent families, two-parent families, and 
                those who have received cash assistance for 2 years;
                    (B) the resources available to the States to meet 
                these work requirements, defined as Federal 
                appropriations authorized in the conference report for 
                this purpose in addition to what States are projected 
                to spend under current welfare law;
                    (C) the amount of any additional revenue needed by 
                the States to meet the work requirements in the 
                conference report, beyond resources available as 
                defined under subparagraph (b)(1)(B);
            (2) an estimate, based on the analysis in paragraph (b)(1), 
        of how many States would opt to pay any penalty provided for by 
        the conference report rather than raise the additional revenue 
        needed to meet the work requirements in the conference report; 
        and
            (3) estimates, over each of the next 7 fiscal years, of the 
        costs to States of any other requirements imposed on them by 
        such legislation.

SEC. 1307. SENSE OF THE SENATE REGARDING COMPETITIVE BIDDING FOR INFANT 
              FORMULA.

    (a) In General.--The Senate finds that--
            (1) the Federal Supplemental Nutrition Program for Women, 
        Infants and Children (WIC) is a proven success story, providing 
        special nutrition and health assistance to at-risk pregnant 
        women, infants and children;
            (2) WIC has been shown to reduce the incidence of fetal 
        death, low birthweight, infant mortality and anemia, to 
        increase the nutritional and health status of pregnant women, 
        infants and children and to improve the cognitive development 
        of infants and children;
            (3) research has shown that each dollar spent on WIC for 
        pregnant women results in savings of $1.92 to $4.21 in medicaid 
        expenditures;
            (4) because of funding limitations not all individuals 
        eligible for WIC assistance are served by the program;
            (5) infant formula is a significant item in the cost of WIC 
        monthly food packages, amounting to approximately 26 percent of 
        WIC food costs after subtracting manufacturer's rebates, but 
        approximately 48 percent of food costs prior to applying 
        rebates;
            (6) rebates obtained through competitive bidding for infant 
        formula have reduced the cost of infant formula for WIC 
        participants by approximately $4,100,000,000 through the end of 
        fiscal year 1994, allowing millions of additional pregnant 
        women, infants and children to be served by WIC with the 
        limited funds available;
            (7) the Department of Agriculture has estimated that in 
        fiscal year 1995 rebates obtained through competitive bidding 
        for infant formula will total over $1,000,000,000, which will 
        enable WIC to serve approximately 1,600,000 additional women, 
        infants and children; and
            (8) because of the very substantial cost savings involved, 
        Congress enacted in 1989 legislation requiring that States 
        administering the WIC program conduct competitive bidding for 
        infant formula.
    (b) Sense of the Senate.--It is the sense of the Senate that any 
legislation enacted by Congress should not eliminate or in any way 
weaken the present competitive bidding requirements for the purchase of 
infant formula with respect to any program supported wholly or in part 
by Federal funds.

SEC. 1308. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE PREGNANCIES.

    (a) In General.--Not later than January 1, 1997, the Secretary of 
Health and Human Services shall establish and implement a strategy 
for--
            (1) preventing an additional 2 percent of out-of-wedlock 
        teenage pregnancies a year, and
            (2) assuring that at least 25 percent of the communities in 
        the United States have teenage pregnancy prevention programs in 
        place.
    (b) Report.--Not later than June 30, 1998, and annually thereafter, 
the Secretary shall report to the Congress with respect to the progress 
that has been made in meeting the goals described in paragraphs (1) and 
(2) of subsection (a).
    (c) Out-of-Wedlock and Teenage Pregnancy Prevention Programs.--
Section 2002 of the Social Security Act (42 U.S.C. 1397a) is amended by 
adding at the end the following new subsection:
    ``(2) The Secretary shall conduct a study with respect to the State 
programs implemented under paragraph (1) to determine the relative 
effectiveness of the different approaches for preventing out-of-wedlock 
and teenage pregnancy utilized in the programs conducted under this 
subsection and the approaches that can be best replicated by other 
States.
    ``(3) Each State conducting a program under this subsection shall 
provide to the Secretary, in such form and with such frequency as the 
Secretary requires, data from the programs conducted under this 
subsection. The Secretary shall report to the Congress annually on the 
progress of the programs and shall, not later than June 30, 1998, 
submit to the Congress a report on the study required under paragraph 
(2).''.

SEC. 1309. SENSE OF THE SENATE REGARDING ENFORCEMENT OF STATUTORY RAPE 
              LAWS.

    It is the sense of the Senate that States and local jurisdictions 
should aggressively enforce statutory rape laws.

SEC. 1310. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED SUBSTANCES.

    Notwithstanding any other provision of law, States shall not be 
prohibited by the Federal Government from sanctioning welfare 
recipients who test positive for use of controlled substances.

SEC. 1311. ABSTINENCE EDUCATION.

    (a) Increases in Funding.--Section 501(a) of the Social Security 
Act (42 U.S.C. 701(a)) is amended in the matter preceding paragraph (1) 
by striking ``Fiscal year 1990 and each fiscal year thereafter'' and 
inserting ``Fiscal years 1990 through 1995 and $761,000,000 for fiscal 
year 1996 and each fiscal year thereafter''.
    (b) Abstinence Education.--Section 501(a)(1) of such Act (42 U.S.C. 
701(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) to provide abstinence education, and at the 
                option of the State, where appropriate, mentoring, 
                counseling, and adult supervision to promote abstinence 
                from sexual activity, with a focus on those groups 
                which are most likely to bear children out-of-
                wedlock.''.
    (c) Abstinence Education Defined.--Section 501(b) of such Act (42 
U.S.C. 701(b)) is amended by adding at the end the following new 
paragraph:
            ``(5) Abstinence education.--For purposes of this 
        subsection, the term `abstinence education' shall mean an 
        educational or motivational program which--
                    ``(A) has as its exclusive purpose, teaching the 
                social, psychological, and health gains to be realized 
                by abstaining from sexual activity;
                    ``(B) teaches abstinence from sexual activity 
                outside marriage as the expected standard for all 
                school age children;
                    ``(C) teaches that abstinence from sexual activity 
                is the only certain way to avoid out-of-wedlock 
                pregnancy, sexually transmitted diseases, and other 
                associated health problems;
                    ``(D) teaches that a mutually faithful monogamous 
                relationship in context of marriage is the expected 
                standard of human sexual activity;
                    ``(E) teaches that sexual activity outside of the 
                context of marriage is likely to have harmful 
                psychological and physical effects;
                    ``(F) teaches that bearing children out-of-wedlock 
                is likely to have harmful consequences for the child, 
                the child's parents, and society;
                    ``(G) teaches young people how to reject sexual 
                advances and how alcohol and drug use increases 
                vulnerability to sexual advances; and
                    ``(H) teaches the importance of attaining self-
                sufficiency before engaging in sexual activity.''.
    (d) Set-Aside.--
            (1) In general.--Section 502(c) of such Act (42 U.S.C. 
        702(c)) is amended in the matter preceding paragraph (1) by 
        striking ``From'' and inserting ``Except as provided in 
        subsection (e), from''.
            (2) Set-Aside.--Section 502 of such Act (42 U.S.C. 702) is 
        amended by adding at the end the following new subsection:
    ``(e) Of the amounts appropriated under section 501(a) for any 
fiscal year, the Secretary shall set aside $75,000,000 for abstinence 
education in accordance with section 501(a)(1)(E).
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