[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3832 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3832

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 1996

Mr. Tanner (for himself and Mr. Castle) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
 to the Committees on Agriculture, Commerce, Economic and Educational 
 Opportunities, Government Reform and Oversight, Banking and Financial 
      Services, the Judiciary, and the Budget, 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 restore the American family, enhance support and work opportunities 
 for families with children, reduce out-of-wedlock pregnancies, reduce 
           welfare dependence, and control welfare spending.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bipartisan Welfare Reform Act of 
1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

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

Sec. 200. Reference to Social Security Act.
                  Subtitle A--Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to 
                            have fraudulently misrepresented residence 
                            in order to obtain benefits simultaneously 
                            in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and 
                            parole violators.
Sec. 203. Verification of eligibility for certain SSI disability 
                            benefits.
Sec. 204. Treatment of prisoners.
Sec. 205. Effective date of application for benefits.
Sec. 206. Installment payment of large past-due supplemental security 
                            income benefits.
Sec. 207. Recovery of supplemental security income overpayments from 
                            social security benefits.
               Subtitle B--Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability 
                            reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized 
                            individuals whose medical costs are covered 
                            by private insurance.
Sec. 215. Modification respecting parental income deemed to disabled 
                            children.
Sec. 216. Graduated benefits for additional children.
               Subtitle C--State Supplementation Programs

Sec. 221. Repeal of maintenance of effort requirements applicable to 
                            optional State programs for supplementation 
                            of SSI benefits.
   Subtitle D--Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.
      Subtitle E--National Commission on the Future of Disability

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

Sec. 300. Reference to Social Security Act.
     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement 
                            services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.
                  Subtitle B--Locate and Case Tracking

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

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

Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary 
                            family assistance.
             Subtitle E--Program Administration and Funding

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

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

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

Sec. 376. Correction to ERISA definition of medical child support 
                            order.
Sec. 377. Enforcement of orders for health care coverage.
     Subtitle I--Enhancing Responsibility and Opportunity for Non-
                          Residential Parents

Sec. 381. Grants to States for access and visitation programs.
                    Subtitle J--Effect of Enactment

Sec. 391. Effective dates.
      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

Sec. 400. Statements of national policy concerning welfare and 
                            immigration.
              Subtitle A--Eligibility for Federal Benefits

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

Sec. 411. Aliens who are not qualified aliens or nonimmigrants 
                            ineligible for State and local public 
                            benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for 
                            State public benefits.
      Subtitle C--Attribution of Income and Affidavits of Support

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

Sec. 431. Definitions.
Sec. 432. Verification of eligibility for Federal public benefits.
Sec. 433. Statutory construction.
Sec. 434. Communication between State and local government agencies and 
                            the Immigration and Naturalization Service.
Sec. 435. Qualifying quarters.
Sec. 436. Title inapplicable to programs specified by Attorney General.
Sec. 437. Title inapplicable to programs of nonprofit charitable 
                            organizations.
                   Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.
          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. area.
                   TITLE VI--REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance 
                            programs.
Sec. 602. Fraud under means-tested welfare and public assistance 
                            programs.
Sec. 603. Annual adjustment factors for operating costs only; restraint 
                            on rent increases.
Sec. 604. Effective date.
                         TITLE VII--CHILD CARE

Sec. 701. Short title and references.
Sec. 702. Goals.
Sec. 703. Authorization of appropriations.
Sec. 704. Lead agency.
Sec. 705. Application and plan.
Sec. 706. Limitation on State allotments.
Sec. 707. Activities to improve the quality of child care.
Sec. 708. Repeal of early childhood development and before- and after-
                            school care requirement.
Sec. 709. Administration and enforcement.
Sec. 710. Payments.
Sec. 711. Annual report and audits.
Sec. 712. Report by the Secretary.
Sec. 713. Allotments.
Sec. 714. Definitions.
Sec. 715. Repeals.
                  TITLE VIII--CHILD NUTRITION PROGRAMS

                 Subtitle A--National School Lunch Act

Sec. 801. Value of food assistance.
Sec. 802. Commodity assistance.
Sec. 803. State disbursement to schools.
Sec. 804. Nutritional and other program requirements.
Sec. 805. Free and reduced price policy statement.
Sec. 806. Special assistance.
Sec. 807. Miscellaneous provisions and definitions.
Sec. 808. Summer food service program for children.
Sec. 809. Commodity distribution.
Sec. 810. Child care food program.
Sec. 811. Pilot projects.
Sec. 812. Reduction of paperwork.
Sec. 813. Information on income eligibility.
Sec. 814. Nutrition guidance for child nutrition programs.
Sec. 815. Information clearinghouse.
                Subtitle B--Child Nutrition Act of 1966

Sec. 821. Special milk program.
Sec. 822. Reimbursement rates for free and reduced price breakfasts.
Sec. 823. Free and reduced price policy statement.
Sec. 824. School breakfast program authorization.
Sec. 825. State administrative expenses.
Sec. 826. Regulations.
Sec. 827. Prohibitions.
Sec. 828. Miscellaneous provisions and definitions.
Sec. 829. Accounts and records.
Sec. 830. Special supplemental nutrition program for women, infants, 
                            and children.
Sec. 831. Cash grants for nutrition education.
Sec. 832. Nutrition education and training.
Sec. 833. Breastfeeding promotion program.
               TITLE IX--FOOD STAMP AND RELATED PROGRAMS

Sec. 901. Definition of certification period.
Sec. 902. Expanded definition of ``coupon''.
Sec. 903. Treatment of children living at home.
Sec. 904. Adjustment of thrifty food plan.
Sec. 905. Definition of homeless individual.
Sec. 906. Income Exclusions.
Sec. 907. Deductions from income.
Sec. 908. Vehicle allowance.
Sec. 909. Vendor payments for transitional housing counted as income.
Sec. 910. Increased penalties for violating food stamp program 
                            requirements.
Sec. 911. Disqualification of convicted individuals.
Sec. 912. Disqualification.
Sec. 913. Caretaker exemption.
Sec. 914. Employment and training.
Sec. 915. Comparable treatment for disqualification.
Sec. 916. Disqualification for receipt of multiple food stamp benefits.
Sec. 917. Disqualification of fleeing felons.
Sec. 918. Cooperation with child support agencies.
Sec. 919. Disqualification relating to child support arrears.
Sec. 920. Work requirement for able-bodied recipients.
Sec. 921. Encourage electronic benefit transfer systems.
Sec. 922. Value of minimum allotment.
Sec. 923. Benefits on recertification.
Sec. 924. Optional combined allotment for expedited households.
Sec. 925. Failure to comply with other means-tested public assistance 
                            programs.
Sec. 926. Allotments for households residing in centers.
Sec. 927. Authority to establish authorization periods.
Sec. 928. Specific period for prohibiting participation of stores based 
                            on lack of business integrity.
Sec. 929. Information for verifying eligibility for authorization.
Sec. 930. Waiting period for stores that initially fail to meet 
                            authorization criteria.
Sec. 931. Operation of food stamp offices.
Sec. 932. Mandatory claims collection methods.
Sec. 933. Exchange of law enforcement information.
Sec. 934. Expedited coupon service.
Sec. 935.  Withdrawing fair hearing requests.
Sec. 936. Income, eligibility, and immigration status verification 
                            systems.
Sec. 937. Bases for suspensions and disqualifications.
Sec. 938. Authority to suspend stores violating program requirements 
                            pending administrative and judicial review.
Sec. 939. Disqualification of retailers who are disqualified from the 
                            WIC program.
Sec. 940. Permanent debarment of retailers who intentionally submit 
                            falsified applications.
Sec. 941. Expanded civil and criminal forfeiture for violations of the 
                            food stamp act.
Sec. 942. Expanded authority for sharing information provided by 
                            retailers.
Sec. 943. Limitation of Federal match.
Sec. 944. Collection of overissuances.
Sec. 945. Standards for administration.
Sec. 946. Response to waivers.
Sec. 947. Authorization of appropriations.
Sec. 948. Authorize States to operate simplified food stamp programs.
Sec. 949. Emergency food assistance program.
Sec. 950. Food bank demonstration project.
Sec. 951. Report on entitlement commodity processing.
                         TITLE X--MISCELLANEOUS

                     Subtitle A--General Provisions

Sec. 1001. Expenditure of Federal funds in accordance with laws and 
                            procedures applicable to expenditure of 
                            State funds.
Sec. 1002. Elimination of housing assistance with respect to fugitive 
                            felons and probation and parole violators.
Sec. 1003. Sense of the Senate regarding enterprise zones.
Sec. 1004. Sense of the Senate regarding the inability of the non-
                            custodial parent to pay child support.
Sec. 1005. Food stamp eligibility.
Sec. 1006. Establishing national goals to prevent teenage pregnancies.
Sec. 1007. Sense of the Senate regarding enforcement of statutory rape 
                            laws.
Sec. 1008. Sanctioning for testing positive for controlled substances.
Sec. 1009. Abstinence education.
Sec. 1010. Provisions to encourage electronic benefit transfer systems.
Sec. 1011. Reduction in block grants to States for social services.
Sec. 1012. Efficient use of Federal transportation funds.
Sec. 1013. Enhanced Federal match for child welfare automation 
                            expenses.
                  Subtitle B--Earned Income Tax Credit

Sec. 1021. Earned income credit and other tax benefits denied to 
                            individuals failing to provide taxpayer 
                            identification numbers.
Sec. 1022. Rules relating to denial of earned income credit on basis of 
                            disqualified income.
Sec. 1023. Modification of adjusted gross income definition for earned 
                            income credit.
Sec. 1024. Notice of availability required to be provided to applicants 
                            and former recipients of AFDC, food stamps, 
                            and medicaid.
Sec. 1025. Notice of availability of earned income tax credit and 
                            dependent care tax credit to be included on 
                            W-4 form.
Sec. 1026. Advance payment of earned income tax credit through State 
                            demonstration programs.

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

SEC. 101. FINDINGS.

    The Congress makes the following findings:
            (1) Marriage is the foundation of a successful society.
            (2) Marriage is an essential institution of a successful 
        society which promotes the interests of children.
            (3) Promotion of responsible fatherhood and motherhood is 
        integral to successful child rearing and the well-being of 
        children.
            (4) In 1992, only 54 percent of single-parent families with 
        children had a child support order established and, of that 54 
        percent, only about one-half received the full amount due. Of 
        the cases enforced through the public child support enforcement 
        system, only 18 percent of the caseload has a collection.
            (5) The number of individuals receiving aid to families 
        with dependent children (in this section referred to as 
        ``AFDC'') has more than tripled since 1965. More than two-
        thirds of these recipients are children. Eighty-nine percent of 
        children receiving AFDC benefits now live in homes in which no 
        father is present.
                    (A)(i) The average monthly number of children 
                receiving AFDC benefits--
                            (I) was 3,300,000 in 1965;
                            (II) was 6,200,000 in 1970;
                            (III) was 7,400,000 in 1980; and
                            (IV) was 9,300,000 in 1992.
                    (ii) While the number of children receiving AFDC 
                benefits increased nearly threefold between 1965 and 
                1992, the total number of children in the United States 
                aged 0 to 18 has declined by 5.5 percent.
                    (B) The Department of Health and Human Services has 
                estimated that 12,000,000 children will receive AFDC 
                benefits within 10 years.
                    (C) The increase in the number of children 
                receiving public assistance is closely related to the 
                increase in births to unmarried women. Between 1970 and 
                1991, the percentage of live births to unmarried women 
                increased nearly threefold, from 10.7 percent to 29.5 
                percent.
            (6) The increase of out-of-wedlock pregnancies and births 
        is well documented as follows:
                    (A) It is estimated that the rate of nonmarital 
                teen pregnancy rose 23 percent from 54 pregnancies per 
                1,000 unmarried teenagers in 1976 to 66.7 pregnancies 
                in 1991. The overall rate of nonmarital pregnancy rose 
                14 percent from 90.8 pregnancies per 1,000 unmarried 
                women in 1980 to 103 in both 1991 and 1992. In 
                contrast, the overall pregnancy rate for married 
couples decreased 7.3 percent between 1980 and 1991, from 126.9 
pregnancies per 1,000 married women in 1980 to 117.6 pregnancies in 
1991.
                    (B) The total of all out-of-wedlock births between 
                1970 and 1991 has risen from 10.7 percent to 29.5 
                percent and if the current trend continues, 50 percent 
                of all births by the year 2015 will be out-of-wedlock.
            (7) The negative consequences of an out-of-wedlock birth on 
        the mother, the child, the family, and society are well 
        documented as follows:
                    (A) Young women 17 and under who give birth outside 
                of marriage are more likely to go on public assistance 
                and to spend more years on welfare once enrolled. These 
                combined effects of ``younger and longer'' increase 
                total AFDC costs per household by 25 percent to 30 
                percent for 17-year olds.
                    (B) Children born out-of-wedlock have a 
                substantially higher risk of being born at a very low 
                or moderately low birth weight.
                    (C) Children born out-of-wedlock are more likely to 
                experience low verbal cognitive attainment, as well as 
                more child abuse, and neglect.
                    (D) Children born out-of-wedlock were more likely 
                to have lower cognitive scores, lower educational 
                aspirations, and a greater likelihood of becoming 
                teenage parents themselves.
                    (E) Being born out-of-wedlock significantly reduces 
                the chances of the child growing up to have an intact 
                marriage.
                    (F) Children born out-of-wedlock are 3 times more 
                likely to be on welfare when they grow up.
            (8) Currently 35 percent of children in single-parent homes 
        were born out-of-wedlock, nearly the same percentage as that of 
        children in single-parent homes whose parents are divorced (37 
        percent). While many parents find themselves, through divorce 
        or tragic circumstances beyond their control, facing the 
        difficult task of raising children alone, nevertheless, the 
        negative consequences of raising children in single-parent 
        homes are well documented as follows:
                    (A) Only 9 percent of married-couple families with 
                children under 18 years of age have income below the 
                national poverty level. In contrast, 46 percent of 
                female-headed households with children under 18 years 
                of age are below the national poverty level.
                    (B) Among single-parent families, nearly \1/2\ of 
                the mothers who never married received AFDC while only 
                \1/5\ of divorced mothers received AFDC.
                    (C) Children born into families receiving welfare 
                assistance are 3 times more likely to be on welfare 
                when they reach adulthood than children not born into 
                families receiving welfare.
                    (D) Mothers under 20 years of age are at the 
                greatest risk of bearing low-birth-weight babies.
                    (E) The younger the single parent mother, the less 
                likely she is to finish high school.
                    (F) Young women who have children before finishing 
                high school are more likely to receive welfare 
                assistance for a longer period of time.
                    (G) Between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120,000,000,000.
                    (H) The absence of a father in the life of a child 
                has a negative effect on school performance and peer 
                adjustment.
                    (I) Children of teenage single parents have lower 
                cognitive scores, lower educational aspirations, and a 
                greater likelihood of becoming teenage parents 
                themselves.
                    (J) Children of single-parent homes are 3 times 
                more likely to fail and repeat a year in grade school 
                than are children from intact 2-parent families.
                    (K) Children from single-parent homes are almost 4 
                times more likely to be expelled or suspended from 
                school.
                    (L) Neighborhoods with larger percentages of youth 
                aged 12 through 20 and areas with higher percentages of 
                single-parent households have higher rates of violent 
                crime.
                    (M) Of those youth held for criminal offenses 
                within the State juvenile justice system, only 29.8 
                percent lived primarily in a home with both parents. In 
                contrast to these incarcerated youth, 73.9 percent of 
                the 62,800,000 children in the Nation's resident 
                population were living with both parents.
            (9) Therefore, in light of this demonstration of the crisis 
        in our Nation, it is the sense of the Congress that prevention 
        of out-of-wedlock pregnancy and reduction in out-of-wedlock 
        birth are very important Government interests and the policy 
        contained in part A of title IV of the Social Security Act (as 
        amended by section 103 of this Act) is intended to address the 
        crisis.

SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

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

SEC. 103. BLOCK GRANTS TO STATES.

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

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

``SEC. 401. PURPOSE.

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

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

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 2-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that meets the requirements of subsection (b) and has 
been approved by the Secretary with respect to the fiscal year.
    ``(b) Contents of State Plans.--A plan meets the requirements of 
this subsection if the plan includes the following:
            ``(1) Outline of family assistance program.--
                    ``(A) General provisions.--A written document that 
                outlines how the State will do the following:
                            ``(i) Conduct a program, designed to serve 
                        all political subdivisions in the State, that 
                        provides assistance to needy families with (or 
                        expecting) children and provides parents with 
                        job preparation, work, and support services to 
                        enable them to leave the program and become 
                        self-sufficient.
                            ``(ii) Determine, on an objective and 
                        equitable basis, the needs of and the amount of 
                        assistance to be provided to needy families, 
                        and treat families of similar needs and 
circumstances similarly, subject to subparagraph (B).
                            ``(iii) Require a parent or caretaker 
                        receiving assistance under the program to 
                        engage in work (as defined by the State) once 
                        the State determines the parent or caretaker is 
                        ready to engage in work, or once the parent or 
                        caretaker has received assistance under the 
                        program for 24 months (whether or not 
                        consecutive), whichever is earlier.
                            ``(iv) Ensure that parents and caretakers 
                        receiving assistance under the program engage 
                        in work activities in accordance with section 
                        407.
                            ``(v) Grant an opportunity for a fair 
                        hearing before the State agency to any 
                        individual to whom assistance under the program 
                        is denied, reduced, or terminated, or whose 
                        request for such assistance is not acted on 
                        with reasonable promptness.
                            ``(vi) Take such reasonable steps as the 
                        State deems necessary to restrict the use and 
                        disclosure of information about individuals and 
                        families receiving assistance under the program 
                        attributable to funds provided by the Federal 
                        Government.
                            ``(vii) Establish goals and take action to 
                        prevent and reduce the incidence of out-of-
                        wedlock pregnancies, with special emphasis on 
                        teenage pregnancies, and establish numerical 
                        goals for reducing the illegitimacy ratio of 
                        the State (as defined in section 403(a)(2)(B)) 
                        for calendar years 1996 through 2005.
                    ``(B) Special provisions.--
                            ``(i) The plan shall indicate whether the 
                        State intends to treat families moving into the 
                        State from another State differently than other 
                        families under the program, and if so, how the 
                        State intends to treat such families under the 
                        program.
                            ``(ii) The plan shall indicate whether the 
                        State intends to provide assistance under the 
                        program to individuals who are not citizens of 
                        the United States, and if so, shall include an 
                        overview of such assistance.
                            ``(iii) The plan shall contain an estimate 
                        of the number of individuals (if any) who will 
                        become ineligible for medical assistance under 
                        the State plan approved under title XIX as a 
                        result of changes in the rules governing 
                        eligibility for the State program funded under 
                        this part, and shall indicate the extent (if 
                        any) to which the State will provide medical 
                        assistance to such individuals, and the scope 
                        of such medical assistance.
            ``(2) Certification that the state will operate a child 
        support enforcement program.--The plan shall include a 
        certification by the chief executive officer of the State that, 
        during the fiscal year, the State will operate a child support 
        enforcement program under the State plan approved under part D.
            ``(3) Certification that the state will not operate a 
        separate financial support program with state funds targeted at 
        certain child support recipients.--The plan shall include a 
        certification by the chief executive officer of the State that, 
        during the fiscal year, the State will not operate a separate 
        financial support program with State funds targeted at child 
        support recipients who would be eligible for assistance under 
        the program funded under this part were it not for payments 
        from the State-funded financial assistance program.
            ``(4) Certification that the state will operate a child 
        protection program.--The plan shall include 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 of the administration of the program.--
        The plan shall include a certification by the chief executive 
        officer of the State specifying which State agency or agencies 
        will administer and supervise the program referred to in 
paragraph (1) for the fiscal year, which shall include assurances that 
local governments and private sector organizations--
                    ``(A) have been working jointly with the State in 
                all phases of the plan and design of welfare services 
                in the State so that services are provided in a manner 
                appropriate to local populations;
                    ``(B) have had at least 60 days to submit comments 
                on the final plan and the design of such services; and
                    ``(C) will not have unfunded mandates imposed on 
                them under such plan.
        Such certification shall also include assurance that when local 
        elected officials are currently responsible for the 
        administration of welfare services, the local elected officials 
        will be able to plan, design, and administer for their 
        jurisdictions the programs established pursuant to this Act.
            ``(6) Certification that the state will provide indians 
        with equitable access to assistance.--The plan shall include a 
        certification by the chief executive officer of the State that, 
        during the fiscal year, the State will provide each Indian who 
        is a member of an Indian tribe in the State that does not have 
        a tribal family assistance plan approved under section 412 with 
        equitable access to assistance under the State program funded 
        under this part attributable to funds provided by the Federal 
        Government.
            ``(7) Certification of nondisplacement and nonreplacement 
        of employees.--The plan shall include a certification that the 
        implementation of the plan will not result in--
                    ``(A) the displacement of a currently employed 
                worker or position by an individual to whom assistance 
                is provided under the State program funded under this 
                part;
                    ``(B) the replacement of an employee who has been 
                terminated with an individual to whom assistance is 
                provided under the State program funded under this 
                part; or
                    ``(C) the replacement of an employee who is on 
                layoff from the same position filled by an individual 
                to whom assistance is provided under the State program 
                funded under this part or any equivalent position.
    ``(c) Approval of State Plans.--The Secretary shall approve any 
State plan that meets the requirements of subsection (b) if the 
Secretary determines that operating a State program pursuant to the 
plan will contribute to achieving the purposes of this part.
    ``(d) Public Availability of State Plan Summary.--The State shall 
make available to the public a summary of any plan submitted by the 
State under this section.

``SEC. 403. GRANTS TO STATES.

    ``(a) Grants.--
            ``(1) Family assistance grant.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary, for each of 
                fiscal years 1996, 1997, 1998, 1999, 2000, and 2001 a 
                grant in an amount equal to the State family assistance 
                grant.
                    ``(B) State family assistance grant defined.--As 
                used in this part, the term `State family assistance 
                grant' means the greatest of--
                            ``(i) \1/3\ of the total amount required to 
                        be paid to the State under former section 403 
                        (as in effect on September 30, 1995) for fiscal 
                        years 1992, 1993, and 1994 (other than with 
                        respect to amounts expended by the State for 
                        child care under subsection (g) or (i) of 
                        former section 402 (as so in effect));
                            ``(ii)(I) the total amount required to be 
                        paid to the State under former section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended by the State for child care 
                        under subsection (g) or (i) of former section 
                        402 (as so in effect)); plus
                            ``(II) an amount equal to 85 percent of the 
                        amount (if any) by which the total amount 
                        required to be paid to the State under former 
                        section 403(a)(5) for emergency assistance for 
                        fiscal year 1995 exceeds the total amount 
                        required to be paid to the State under former 
                        section 403(a)(5) for fiscal year 1994, if, 
                        during fiscal year 1994, the Secretary approved 
                        under former section 402 an amendment to the 
                        former State plan with respect to the provision 
                        of emergency assistance in the context of 
                        family preservation; or
                            ``(iii) the amount required to be paid to 
                        the State under former section 403 (as in 
                        effect on September 30, 1995) for fiscal year 
                        1995 (other than with respect to amounts 
                        expended by the State under the State plan 
                        approved under part F (as so in effect) or for 
                        child care under subsection (g) or (i) of 
                        former section 402 (as so in effect)), plus the 
                        total amount required to be paid to the State 
                        for fiscal year 1995 under former section 
                        403(l) (as so in effect).
                    ``(C) Total amount required to be paid to the state 
                under former section 403 defined.--As used in this 
                part, the term `total amount required to be paid to the 
                State under former section 403' means, with respect to 
                a fiscal year--
                            ``(i) in the case of a State to which 
                        section 1108 does not apply, the sum of--
                                    ``(I) the Federal share of 
                                maintenance assistance expenditures for 
                                the fiscal year, before reduction 
                                pursuant to subparagraph (B) or (C) of 
                                section 403(b)(2) (as in effect on 
                                September 30, 1995), as reported by the 
                                State on ACF Form 231;
                                    ``(II) the Federal share of 
                                administrative expenditures (including 
                                administrative expenditures for the 
                                development of management information 
                                systems) for the fiscal year, as 
                                reported by the State on ACF Form 231;
                                    ``(III) the Federal share of 
                                emergency assistance expenditures for 
                                the fiscal year, as reported by the 
                                State on ACF Form 231;
                                    ``(IV) the Federal share of 
                                expenditures for the fiscal year with 
                                respect to child care pursuant to 
                                subsections (g) and (i) of former 
                                section 402 (as in effect on September 
                                30, 1995), as reported by the State on 
                                ACF Form 231; and
                                    ``(V) the aggregate amount required 
                                to be paid to the State for the fiscal 
                                year with respect to the State program 
                                operated under part F (as in effect on 
                                September 30, 1995), as determined by 
                                the Secretary, including additional 
                                obligations or reductions in 
                                obligations made after the close of the 
                                fiscal year; and
                            ``(ii) in the case of a State to which 
                        section 1108 applies, the lesser of--
                                    ``(I) the sum described in clause 
                                (i); or
                                    ``(II) the total amount certified 
                                by the Secretary under former section 
                                403 (as in effect during the fiscal 
                                year) with respect to the territory.
                    ``(D) Information to be used in determining 
                amounts.--
                            ``(i) For fiscal years 1992 and 1993.--
                                    ``(I) In determining the amount 
                                described in subclauses (I) through 
                                (IV) of subparagraph (C)(i) for any 
                                State for each of fiscal years 1992 and 
                                1993, the Secretary shall use 
                                information available as of April 28, 
                                1995.
                                    ``(II) In determining the amount 
                                described in subparagraph (C)(i)(V) for 
                                any State for each of fiscal years 1992 
                                and 1993, the Secretary shall use 
information available as of January 6, 1995.
                            ``(ii) For fiscal year 1994.--In 
                        determining the amounts described in 
                        subparagraph (C)(i) for any State for fiscal 
                        year 1994, the Secretary shall use information 
                        available as of April 28, 1995.
                            ``(iii) For fiscal year 1995.--
                                    ``(I) In determining the amount 
                                described in subparagraph (B)(ii)(II) 
                                for any State for fiscal year 1995, the 
                                Secretary shall use the information 
                                which was reported by the States and 
                                estimates made by the States with 
                                respect to emergency assistance 
                                expenditures and was available as of 
                                August 11, 1995.
                                    ``(II) In determining the amounts 
                                described in subclauses (I) through 
                                (IV) of subparagraph (C)(i) for any 
                                State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 2, 1995.
                                    ``(III) In determining the amount 
                                described in subparagraph (C)(i)(V) for 
                                any State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 5, 1995.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                1996, 1997, 1998, 1999, 2000, and 2001 such sums as are 
                necessary for grants under this paragraph.
            ``(2) Grant to reward states that reduce out-of-wedlock 
        births.--
                    ``(A) In general.--In addition to any grant under 
                paragraph (1), each eligible State shall be entitled to 
                receive from the Secretary for fiscal year 1998 or any 
                succeeding fiscal year, a grant in an amount equal to 
                the State family assistance grant multiplied by--
                            ``(i) 5 percent if--
                                    ``(I) the illegitimacy ratio of the 
                                State for the fiscal year is at least 1 
                                percentage point lower than the 
                                illegitimacy ratio of the State for 
                                fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the State for 
                                the fiscal year is less than the rate 
                                of induced pregnancy terminations in 
                                the State for fiscal year 1995; or
                            ``(ii) 10 percent if--
                                    ``(I) the illegitimacy ratio of the 
                                State for the fiscal year is at least 2 
                                percentage points lower than the 
                                illegitimacy ratio of the State for 
                                fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the State for 
                                the fiscal year is less than the rate 
                                of induced pregnancy terminations in 
                                the State for fiscal year 1995.
                    ``(B) Illegitimacy ratio.--As used in this 
                paragraph, the term `illegitimacy ratio' means, with 
                respect to a State and a fiscal year--
                            ``(i) the number of out-of-wedlock births 
                        that occurred in the State during the most 
                        recent fiscal year for which such information 
                        is available; divided by
                            ``(ii) the number of births that occurred 
                        in the State during the most recent fiscal year 
                        for which such information is available.
                    ``(C) Disregard of changes in data due to changed 
                reporting methods.--For purposes of subparagraph (A), 
                the Secretary shall disregard--
                            ``(i) any difference between the 
                        illegitimacy ratio of a State for a fiscal year 
                        and the illegitimacy ratio of the State for 
                        fiscal year 1995 which is attributable to a 
                        change in State methods of reporting data used 
                        to calculate the illegitimacy ratio; and
                            ``(ii) any difference between the rate of 
                        induced pregnancy terminations in a State for a 
                        fiscal year and such rate for fiscal year 1995 
                        which is attributable to a change in State 
                        methods of reporting data used to calculate 
                        such rate.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal year 
                1998 and for each succeeding fiscal year such sums as 
                are necessary for grants under this paragraph.
            ``(3) Supplemental grant for population increases in 
        certain states.--
                    ``(A) In general.--Each qualifying State shall, 
                subject to subparagraph (F), be entitled to receive 
                from the Secretary--
                            ``(i) for fiscal year 1997 a grant in an 
                        amount equal to 2.5 percent of the total amount 
                        required to be paid to the State under former 
                        section 403 (as in effect during fiscal year 
                        1994) for fiscal year 1994; and
                            ``(ii) for each of fiscal years 1998, 1999, 
                        and 2000, a grant in an amount equal to the sum 
                        of--
                                    ``(I) the amount (if any) required 
                                to be paid to the State under this 
                                paragraph for the immediately preceding 
                                fiscal year; and
                                    ``(II) 2.5 percent of the sum of--
                                            ``(aa) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994; and
                                            ``(bb) the amount (if any) 
                                        required to be paid to the 
                                        State under this paragraph for 
                                        the fiscal year preceding the 
                                        fiscal year for which the grant 
                                        is to be made.
                    ``(B) Preservation of grant without increases for 
                states failing to remain qualifying states.--Each State 
                that is not a qualifying State for a fiscal year 
                specified in subparagraph (A)(ii) but was a qualifying 
                State for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from the 
                Secretary for the specified fiscal year, a grant in an 
                amount equal to the amount required to be paid to the 
                State under this paragraph for the most recent fiscal 
                year for which the State was a qualifying State.
                    ``(C) Qualifying state.--
                            ``(i) In general.--For purposes of this 
                        paragraph, a State is a qualifying State for a 
                        fiscal year if--
                                    ``(I) the level of welfare spending 
                                per poor person by the State for the 
                                immediately preceding fiscal year is 
                                less than the national average level of 
                                State welfare spending per poor person 
                                for such preceding fiscal year; and
                                    ``(II) the population growth rate 
                                of the State (as determined by the 
                                Bureau of the Census for the most 
                                recent fiscal year for which 
                                information is available) exceeds the 
                                average population growth rate for all 
                                States (as so determined) for such most 
                                recent fiscal year.
                            ``(ii) State must qualify in fiscal year 
                        1997.--Notwithstanding clause (i), a State 
                        shall not be a qualifying State for any fiscal 
                        year after 1997 by reason of clause (i) if the 
                        State is not a qualifying State for fiscal year 
                        1997 by reason of clause (i).
                            ``(iii) Certain states deemed qualifying 
                        states.--For purposes of this paragraph, a 
                        State is deemed to be a qualifying State for 
                        fiscal years 1997, 1998, 1999, and 2000 if--
                                    ``(I) the level of welfare spending 
                                per poor person by the State for fiscal 
                                year 1996 is less than 35 percent of 
                                the national average level of State 
                                welfare spending per poor person for 
                                fiscal year 1996; or
                                    ``(II) the population of the State 
                                increased by more than 10 percent from 
                                April 1, 1990, to July 1, 1994, as 
                                determined by the Bureau of the Census.
                    ``(D) Definitions.--As used in this paragraph:
                            ``(i) Level of welfare spending per poor 
                        person.--The term `level of State welfare 
                        spending per poor person' means, with respect 
                        to a State and a fiscal year--
                                    ``(I) the sum of--
                                            ``(aa) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994; and
                                            ``(bb) the amount (if any) 
                                        paid to the State under this 
                                        paragraph for the immediately 
                                        preceding fiscal year; divided 
                                        by
                                    ``(II) the number of individuals, 
                                according to the 1990 decennial census, 
                                who were residents of the State and 
                                whose income was below the poverty 
                                line.
                            ``(ii) National average level of state 
                        welfare spending per poor person.--The term 
                        `national average level of State welfare 
                        spending per poor person' means, with respect 
                        to a fiscal year, an amount equal to--
                                    ``(I) the total amount required to 
                                be paid to the States under former 
                                section 403 (as in effect during fiscal 
                                year 1994) for fiscal year 1994; 
                                divided by
                                    ``(II) the number of individuals, 
                                according to the 1990 decennial census, 
                                who were residents of any State and 
                                whose income was below the poverty 
                                line.
                            ``(iii) State.--The term `State' means each 
                        of the 50 States of the United States and the 
                        District of Columbia.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                1997, 1998, 1999, and 2000 such sums as are necessary 
                for grants under this paragraph, in a total amount not 
                to exceed $800,000,000.
                    ``(F) Grants reduced pro rata if insufficient 
                appropriations.--If the amount appropriated pursuant to 
                this paragraph for a fiscal year is less than the total 
                amount of payments otherwise required to be made under 
                this paragraph for the fiscal year, then the amount 
                otherwise payable to any State for the fiscal year 
                under this paragraph shall be reduced by a percentage 
                equal to the amount so appropriated divided by such 
                total amount.
                    ``(G) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency Deficit 
                Control Act of 1985, the baseline shall assume that no 
                grant shall be made under this paragraph after fiscal 
                year 2000.
            ``(4) Supplemental grant for operation of work program.--
                    ``(A) Application requirements.--An eligible State 
                may submit to the Secretary an application for 
                additional funds to meet the requirements of section 
                407 with respect to a fiscal year if the Secretary 
                determines that--
                            ``(i) the total expenditures of the State 
                        to meet such requirements for the fiscal year 
                        exceed the total expenditures of the State 
                        during fiscal year 1994 to carry out part F (as 
                        in effect on September 30, 1994);
                            ``(ii) the work programs of the State under 
                        section 407 are coordinated with the job 
                        training programs established by title II of 
                        the Job Training Partnership Act, or (if such 
                        title is repealed by the Consolidated and 
                        Reformed Education, Employment, and 
Rehabilitation Systems Act) the Consolidated and Reformed Education, 
Employment, and Rehabilitation Systems Act; and
                            ``(iii) the State needs additional funds to 
                        meet such requirements or certifies that it 
                        intends to exceed such requirements.
                    ``(B) Grants.--The Secretary may make a grant to 
                any eligible State which submits an application in 
                accordance with subparagraph (A) of this paragraph for 
                a fiscal year in an amount equal to the Federal medical 
                assistance percentage of the amount (if any) by which 
                the total expenditures of the State to meet or exceed 
                the requirements of section 407 for the fiscal year 
                exceeds the total expenditures of the State during 
                fiscal year 1994 to carry out part F (as in effect on 
                September 30, 1994).
                    ``(C) Regulations.--The Secretary shall issue 
                regulations providing for the equitable distribution of 
                funds under this paragraph.
                    ``(D) Appropriations.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there are appropriated to the 
                        Secretary for grants under this paragraph--
                                    ``(I) $150,000,000 for fiscal year 
                                1999;
                                    ``(II) $850,000,000 for fiscal year 
                                2000;
                                    ``(III) $900,000,000 for fiscal 
                                year 2001; and
                                    ``(IV) $1,100,000,000 for fiscal 
                                year 2002 and for each succeeding 
                                fiscal year.
                            ``(ii) Availability.--Amounts appropriated 
                        pursuant to clause (i) shall remain available 
                        until expended.
    ``(b) Contingency Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a fund which shall be known as 
        the `Contingency Fund for State Welfare Programs' (in this 
        section referred to as the `Fund').
            ``(2) Deposits into fund.--
                    ``(A) Out of any money in the Treasury of the 
                United States not otherwise appropriated, there are 
                appropriated for fiscal years 1997, 1998, 1999, 2000, 
                2001 and 2002 such sums as are necessary for payment to 
                the Fund in a total amount not to exceed 
                $2,000,000,000, except as provided in subparagraphs (B) 
                and (C).
                    ``(B) If--
                            ``(i) the average rate of total 
                        unemployment in the United States for the most 
                        recent 3 months for which data for all States 
                        are available is not less than 7 percent; and
                            ``(ii) there are insufficient amounts in 
                        the Fund to pay all State claims under 
                        paragraph (4) for a quarter in that fiscal 
                        year;
                then there are appropriated for that fiscal year, in 
                addition to amounts appropriated under paragraph 
                (2)(A), such sums as equal the difference between the 
                amount needed to pay all State claims for that quarter 
                and the amount remaining in the Fund.
                    ``(C) If--
                            ``(i)(I)(aa) the average rate of total 
                        unemployment in a State (seasonally adjusted) 
                        for the period consisting of the most recent 3 
                        months for which data for all States are 
                        published is not less than 9 percent; or
                            ``(bb) the average rate of total 
                        unemployment in such State (seasonally 
                        adjusted) for the 3-month period is not less 
                        than 120 percent of such average rate for 
                        either of the prior 2 years; or
                            ``(II) the average number of persons in the 
                        State receiving assistance under the food stamp 
                        program, as defined in section 3(h) of the Food 
                        Stamp Act of 1977, for the most recent 3-
month period for which data are available is not less than 120 percent 
of such average monthly number for fiscal year 1994 or for fiscal year 
1995; and
                            ``(ii) there are insufficient amounts in 
                        the Fund to pay all State claims under 
                        paragraph (4) for a quarter in that fiscal 
                        year; then
                there are appropriated for payment to the Fund for that 
                fiscal year, in addition to amounts appropriated 
                pursuant to paragraph (2)(A), for payments to States 
                described in this subparagraph, the amount by which 
                payments to such States under paragraph (4) would 
                otherwise be reduced under paragraph (8).
            ``(3) Payments to states.--The method of computing and 
        paying amounts to States from the Fund under this subsection 
        shall be as follows:
                    ``(A) The Secretary shall, before each quarter, 
                estimate the amount to be paid to each State for the 
                quarter from the Fund, such estimate to be based on--
                            ``(i) a report filed by the State 
                        containing an estimate by the State of 
                        qualifying State expenditures for the quarter; 
                        and
                            ``(ii) such other information as the 
                        Secretary may find relevant and reliable.
                    ``(B) The Secretary shall then certify to the 
                Secretary of the Treasury the amount so estimated by 
                the Secretary.
                    ``(C) The Secretary of the Treasury shall thereupon 
                pay to the State, at the time or times fixed by the 
                Secretary, the amount so certified.
            ``(4) Grants.--From amounts appropriated pursuant to 
        paragraph (2), the Secretary of the Treasury shall pay to each 
        eligible State for a fiscal year an amount equal to the lesser 
        of--
                    ``(A) the Federal medical assistance percentage for 
                the State for the fiscal year (as defined in section 
                1905(b), as in effect on September 30, 1995) of the 
                amount, if any, by which the expenditures of the State 
                in the fiscal year under the State program funded under 
                this part and expenditures on cash assistance under 
                other State programs with respect to eligible families 
                (as defined in section 409(a)(5)(B)(i)(III)) exceed 
                historic State expenditures (as defined in section 
                409(a)(5)(B)(iii)); or
                    ``(B) the number of percentage points (if any) by 
                which 40 percent of the State family assistance grant 
                for the fiscal year exceeds any payment to the State 
                for the fiscal year under section 403(a)(3).
            ``(5) Annual reconciliation.--At the end of each fiscal 
        year, each State shall remit to the Secretary an amount equal 
        to the amount (if any) by which the total amount paid to the 
        State under paragraph (4) during the fiscal year exceeds the 
        lesser of--
                    ``(A) the Federal medical assistance percentage for 
                the State for the fiscal year (as defined in section 
                1905(b), as in effect on September 30, 1995) of the 
                amount (if any) by which the expenditures of the State 
                in the fiscal year under the State program funded under 
                this part and expenditures on cash assistance under 
                other State programs with respect to eligible families 
                (as defined in section 409(a)(5)(B)(i)(III)) exceed 
                historic State expenditures (as defined in section 
                409(a)(5)(B)(iii)); or
                    ``(B) the amount (if any) by which 40 percent of 
                the State family assistance grant for the fiscal year 
                exceeds any payment to the State for the fiscal year 
                under section 403(a)(3).
            ``(6) Eligible state.--For purposes of this subsection, a 
        State is an eligible State for a fiscal year, if--
                    ``(A)(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 is not less than 6.5 
                percent; and
                    ``(ii) the average rate of total unemployment in 
                such State (seasonally adjusted) for the 3-month 
period is not less than 110 percent of such average rate for either 
1994 or 1995; or
                    ``(B)(i) the average number of persons in the State 
                receiving assistance under the food stamp program, as 
                defined in section 3(h) of the Food Stamp Act of 1977, 
                for the most recent 3-month period for which data are 
                available is not less than 110 percent of the product 
                of--
                            ``(I) such average monthly number for 
                        either fiscal year 1994 or fiscal year 1995; 
                        and
                            ``(II) the number of percentage points (if 
                        any) by which 100 percent exceeds the 
                        percentage by which the Bipartisan Welfare 
                        Reform Act of 1996, had it been in effect, 
                        would have reduced such average monthly number 
                        in such State in such fiscal year, as most 
                        recently estimated by the Secretary of 
                        Agriculture before the date of the enactment of 
                        such Act; and
                    ``(ii) the State is not participating in the 
                program established under section 23(b) of the Food 
                Stamp Act of 1977.
            ``(7) State.--As used in this subsection, the term `State' 
        means each of the 50 States of the United States and the 
        District of Columbia.
            ``(8) Payment priority.--Claims by States for payment from 
        the Fund shall be filed quarterly. If the total amount of 
        claims for any quarter exceeds the amount available for payment 
        from the fund, claims shall be paid on a pro rata basis in a 
        manner to be determined by the Secretary, except in the case of 
        a State described in paragraph (2)(C).
            ``(9) Annual reports.--The Secretary of the Treasury shall 
        annually report to Congress on the status of the Fund.

``SEC. 404. USE OF GRANTS.

    ``(a) General Rules.--Subject to this part, a State to which a 
grant is made under section 403 may use the grant--
            ``(1) in any manner that is reasonably calculated to 
        accomplish the purpose of this part, including to provide low 
        income households with assistance in meeting home heating and 
        cooling costs; or
            ``(2) in any manner that the State was authorized to use 
        amounts received under part A or F, as such parts were in 
        effect on September 30, 1995.
    ``(b) Limitation on Use of Grant for Administrative Purposes.--
            ``(1) Limitation.--A State to which a grant is made under 
        section 403 shall not expend more than 15 percent of the grant 
        for administrative purposes.
            ``(2) Exception.--Paragraph (1) shall not apply to the use 
        of a grant for information technology and computerization 
        needed for tracking or monitoring required by or under this 
        part.
    ``(c) Authority To Treat Interstate Immigrants Under Rules of 
Former State.--A State operating a program funded under this part may 
apply to a family the rules (including benefit amounts) of the program 
funded under this part of another State if the family has moved to the 
State from the other State and has resided in the State for less than 
12 months.
    ``(d) Authority To Use Portion of Grant for Other Purposes.--
            ``(1) In general.--A State may use not more than 20 percent 
        of the amount of the grant made to the State under section 403 
        for a fiscal year to carry out a State program pursuant to the 
        Child Care and Development Block Grant Act of 1990.
            ``(2) Applicable rules.--Any amount paid to the State under 
        this part that is used to carry out a State program pursuant to 
        the Child Care and Development Block Grant Act of 1990 shall 
        not be subject to the requirements of this part, but shall be 
        subject to the requirements that apply to Federal funds 
        provided directly under such Act to carry out the program.
    ``(e) Authority To Reserve Certain Amounts for Assistance.--A State 
may reserve amounts paid to the State under this part for any fiscal 
year for the purpose of providing, without fiscal year limitation, 
assistance under the State program funded under this part.
    ``(f) Authority To Operate Employment Placement Program.--A State 
to which a grant is made under section 403 may use the grant to make 
payments (or provide job placement vouchers) to State-approved public 
and private job placement agencies that provide employment placement 
services to individuals who receive assistance under the State program 
funded under this part.
    ``(g) Implementation of Electronic Benefit Transfer System.--A 
State to which a grant is made under section 403 is encouraged to 
implement an electronic benefit transfer system for providing 
assistance under the State program funded under this part, and may use 
the grant for such purpose.

``SEC. 405. ADMINISTRATIVE PROVISIONS.

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

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

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

``SEC. 407. MANDATORY WORK REQUIREMENTS; INDIVIDUAL RESPONSIBILITY 
              PLANS.

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

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

            ``(2) 2-parent families.--A State to which a grant is made 
        under section 403 for a fiscal year shall achieve the minimum 
        participation rate specified in the following table for the 
        fiscal year with respect to 2-parent families receiving 
        assistance under the State program funded under this part:

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

    ``(b) Calculation of Participation Rates.--
            ``(1) All families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(1), the participation rate for all 
                families of a State for a fiscal year is the average of 
                the participation rates for all families of the State 
                for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for all families of the 
                State for a month, expressed as a percentage, is--
                            ``(i) the number of families receiving 
                        assistance under the State program funded under 
                        this part that include an adult who is engaged 
                        in work for the month; divided by
                            ``(ii) the amount by which--
                                    ``(I) the number of families 
                                receiving such assistance during the 
                                month that include an adult receiving 
                                such assistance; exceeds
                                    ``(II) the number of families 
                                receiving such assistance that are 
                                subject in such month to a penalty 
                                described in subsection (e)(1) but have 
                                not been subject to such penalty for 
                                more than 3 months within the preceding 
                                12-month period (whether or not 
                                consecutive).
                    ``(C) Special rule.--An individual shall be 
                considered to be engaged in work and to be an adult 
                recipient of assistance under a State program funded 
                under this part for purposes of subparagraph (B) for 
                the first 6 months (whether or not consecutive) after 
                the first cessation of assistance to an individual 
                under the program during which the individual is 
                employed for an average of more than 25 hours per week 
                in an unsubsidized job in the private sector.
            ``(2) 2-parent families.--
                    ``(A) Average monthly rate.--For purposes of 
                subsection (a)(2), the participation rate for 2-parent 
                families of a State for a fiscal year is the average of 
                the participation rates for 2-parent families of the 
                State for each month in the fiscal year.
                    ``(B) Monthly participation rates.--The 
                participation rate of a State for 2-parent families of 
                the State for a month shall be calculated by use of the 
                formula set forth in paragraph (1)(B), except that in 
                the formula the term `number of 2-parent families' 
                shall be substituted for the term `number of families' 
                each place such latter term appears.
            ``(3) Pro rata reduction of participation rate due to 
        caseload reductions not required by federal law.--
                    ``(A) In general.--The Secretary shall prescribe 
                regulations for reducing the minimum participation rate 
                otherwise required by this section for a fiscal year by 
                the number of percentage points equal to the number of 
                percentage points (if any) by which--
                            ``(i) the number of families receiving 
                        assistance during the fiscal year under the 
                        State program funded under this part is less 
                        than
                            ``(ii) the number of families that received 
                        aid under the State plan approved under part A 
                        (as in effect on September 30, 1995) during 
                        fiscal year 1994 or 1995, whichever is the 
                        greater.
                The minimum participation rate shall not be reduced to 
                the extent that the Secretary determines that the 
                reduction in the number of families receiving such 
                assistance is required by Federal law.
                    ``(B) Eligibility changes not counted.--The 
                regulations described in subparagraph (A) shall not 
                take into account families that are diverted from a 
                State program funded under this part as a result of 
                differences in eligibility criteria under a State 
                program funded under this part and eligibility criteria 
                under the State program operated under the State plan 
                approved under part A (as such plan and such part were 
                in effect on September 30, 1995). Such regulations 
                shall place the burden on the Secretary to prove that 
                such families were diverted as a direct result of 
                differences in such eligibility criteria.
            ``(4) State option to include individuals receiving 
        assistance under a tribal family assistance plan.--For purposes 
        of paragraphs (1)(B) and (2)(B), a State may, at its option, 
        include families receiving assistance under a tribal family 
        assistance plan approved under section 412.
            ``(5) State option for participation requirement 
        exemptions.--For any fiscal year, a State may, at its option, 
        not require an individual who is a single custodial parent 
        caring for a child who has not attained 12 months of age to 
        engage in work and may disregard such an individual in 
        determining the participation rates under subsection (a).
    ``(c) Engaged in Work.--
            ``(1) All families.--For purposes of subsection 
        (b)(1)(B)(i), a recipient is engaged in work for a month in a 
        fiscal year if the recipient is participating in such 
        activities for at least the minimum average number of hours per 
        week specified in the following table during the month, not 
        fewer than 20 hours per week of which are attributable to an 
        activity described in paragraph (1), (2), (3), (4), (5), (7), 
        or (8) of subsection (d) (or, if the participation of the 
        recipient in an activity described in subsection (d)(6) has 
        been taken into account for purposes of paragraph (1) or (2) of 
        subsection (b) for fewer than 4 weeks in the fiscal year, an 
        activity described in subsection (d)(6)):

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

            ``(2) 2-parent families.--For purposes of subsection 
        (b)(2)(B)(i), an adult is engaged in work for a month in a 
        fiscal year if the adult is making progress in such activities 
        for at least 25 hours per week during the month, not fewer than 
        20 hours per week of which are attributable to an activity 
        described in paragraph (1), (2), (3), (4), (5), (7), or (8) of 
        subsection (d) (or, if the participation of the recipient in an 
        activity described in subsection (d)(6) has been taken into 
        account for purposes of paragraph (1) or (2) of subsection (b) 
        for fewer than 8 weeks (no more than 4 of which may be 
        consecutive) in the fiscal year, an activity described in 
        subsection (d)(6)).
            ``(3) Limitation on vocational education activities counted 
        as work.--For purposes of determining monthly participation 
        rates under paragraphs (1)(B)(i) and (2)(B)(i) of subsection 
        (b), not more than 20 percent of adults in all families and in 
        2-parent families determined to be engaged in work in the State 
        for a month may meet the work activity requirement through 
        participation in vocational educational training.
            ``(4) Option to reduce number of hours of work required of 
        single parents with a child under age 6.--Notwithstanding 
        paragraph (1), a State may reduce to 20 the number of hours per 
        week during which a single custodial parent is required 
        pursuant to this section to engage in work activities if the 
        family of the parent includes an individual who has not 
        attained 6 years of age.
    ``(d) Work Activities Defined.--As used in this section, the term 
`work activities' means--
            ``(1) unsubsidized employment;
            ``(2) subsidized private sector employment;
            ``(3) subsidized public sector employment;
            ``(4) work experience (including work associated with the 
        refurbishing of publicly assisted housing) if sufficient 
        private sector employment is not available;
            ``(5) on-the-job training;
            ``(6) job search and job readiness assistance;
            ``(7) community service programs;
            ``(8) vocational educational training (not to exceed 12 
        months with respect to any individual);
            ``(9) job skills training directly related to employment;
            ``(10) education directly related to employment, in the 
        case of a recipient who has not received a high school diploma 
        or a certificate of high school equivalency; and
            ``(11) satisfactory attendance at secondary school, in the 
        case of a recipient who--
                    ``(A) has not completed secondary school; and
                    ``(B) is a dependent child, or a head of household 
                who has not attained 20 years of age.
    ``(e) Penalties Against Individuals.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        an adult in a family receiving assistance under the State 
        program funded under this part refuses to engage in work 
        required in accordance with this section, the State shall--
                    ``(A) reduce the amount of assistance otherwise 
                payable to the family pro rata (or more, at the option 
                of the State) with respect to any period during a month 
                in which the adult so refuses; or
                    ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State 
        may establish.
            ``(2) Exception.--Notwithstanding paragraph (1), a State 
        may not reduce or terminate assistance under the State program 
        funded under this part based on a refusal of an adult to work 
        if the adult is a single custodial parent caring for a child 
        who has not attained 11 years of age, and the adult proves that 
        the adult has a demonstrated inability (as determined by the 
        State) to obtain needed child care, for 1 or more of the 
        following reasons:
                    ``(A) Unavailability of appropriate child care 
                within a reasonable distance from the individual's home 
                or work site.
                    ``(B) Unavailability or unsuitability of informal 
                child care by a relative or under other arrangements.
                    ``(C) Unavailability of appropriate and affordable 
                formal child care arrangements.
    ``(f) Nondisplacement in Work Activities.--
            ``(1) In general.--Subject to paragraph (2), an adult in a 
        family receiving assistance under a State program funded under 
        this part attributable to funds provided by the Federal 
        Government may fill a vacant employment position in order to 
        engage in a work activity described in subsection (d).
            ``(2) No filling of certain vacancies.--No adult in a work 
        activity described in subsection (d) which is funded, in whole 
        or in part, by funds provided by the Federal Government shall 
        be employed or assigned--
                    ``(A) when any other individual is on layoff from 
                the same or any substantially equivalent job; or
                    ``(B) if the employer has terminated the employment 
                of any regular employee or otherwise caused an 
                involuntary reduction of its workforce in order to fill 
                the vacancy so created with an adult described in 
                paragraph (1).
            ``(3) No preemption.--Nothing in this subsection shall 
        preempt or supersede any provision of State or local law that 
        provides greater protection for employees from displacement.
    ``(g) Individual Responsibility Plans.--
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial assessment of the skills, prior work 
        experience, and employability of each applicant for, or 
        recipient of, assistance under the program who--
                    ``(A) has attained 18 years of age; or
                    ``(B) has not completed high school or obtained a 
                certificate of high school equivalency, and is not 
                attending secondary school.
            ``(2) Contents of plans.--
                    ``(A) In general.--On the basis of the assessment 
                made under paragraph (1) with respect to an individual, 
                the State agency, in consultation with the individual, 
                shall develop an individual responsibility plan for the 
                individual, which--
                            ``(i) shall provide that participation by 
                        the individual in job search activities shall 
                        be a condition of eligibility for assistance 
                        under the State program funded under this part, 
                        except during any period for which the 
                        individual is employed full-time in an 
                        unsubsidized job in the private sector;
                            ``(ii) sets forth an employment goal for 
                        the individual and a plan for moving the 
                        individual immediately into private sector 
                        employment;
                            ``(iii) sets forth the obligations of the 
                        individual, which may include a requirement 
                        that the individual attend school, maintain 
                        certain grades and attendance, keep school age 
                        children of the individual in school, immunize 
                        children, attend parenting and money management 
                        classes, or do other things that will help the 
                        individual become and remain employed in the 
                        private sector;
                            ``(iv) to the greatest extent possible 
                        shall be designed to move the individual into 
                        whatever private sector employment the 
                        individual is capable of handling as quickly as 
                        possible, and to increase the responsibility 
                        and amount of work the individual is to handle 
                        over time;
                            ``(v) shall describe the services the State 
                        will provide the individual so that the 
                        individual will be able to obtain and keep 
                        employment in the private sector, and describe 
                        the job counseling and other services that will 
                        be provided by the State; and
                            ``(vi) at the option of the State, may 
                        require the individual to undergo appropriate 
                        substance abuse treatment.
                    ``(B) Timing.--The State agency shall comply with 
                subparagraph (A) with respect to an individual--
                            ``(i) within 90 days (or, at the option of 
                        the State, 180 days) after the effective date 
                        of this part, in the case of an individual who, 
                        as of such effective date, is a recipient of 
                        aid under the State plan approved under part A 
                        (as in effect immediately before such effective 
                        date); or
                            ``(ii) within 30 days (or, at the option of 
                        the State, 90 days) after the individual is 
                        determined to be eligible for such assistance, 
                        in the case of any other individual.
            ``(3) Provision of program and employment information.--The 
        State shall inform all applicants for and recipients of 
        assistance under the State program funded under this part of 
        all available services under the program for which they are 
        eligible.
            ``(4) Penalty for noncompliance by individual.--The State 
        shall reduce, by such amount as the State considers 
        appropriate, the amount of assistance otherwise payable under 
        the State program funded under this part to a family that 
        includes an individual who fails without good cause to comply 
        with an individual responsibility plan signed by the 
        individual.
    ``(h) 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.
    ``(i) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the 
sense of the Congress that the States should require noncustodial, 
nonsupporting parents who have not attained 18 years of age to fulfill 
community work obligations and attend appropriate parenting or money 
management classes after school.

``SEC. 408. PROHIBITIONS; REQUIREMENTS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor child.--A 
        State to which a grant is made under section 403 shall not use 
        any part of the grant to provide assistance to a family, unless 
        the family includes--
                    ``(A) a minor child who resides with a custodial 
                parent or other adult caretaker relative of the child; 
                or
                    ``(B) a pregnant individual.
            ``(2) No additional cash assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 shall not use any part of the 
                grant to provide cash benefits for a minor child who is 
                born to--
                            ``(i) a recipient of assistance under the 
                        program operated under this part; or
                            ``(ii) a person who received such 
                        assistance at any time during the 10-month 
                        period ending with the birth of the child.
                    ``(B) Exception for children born into families 
                with no other children.--Subparagraph (A) shall not 
                apply to a minor child who is born into a family that 
                does not include any other children.
                    ``(C) Exception for vouchers.--Subparagraph (A) 
                shall not apply to vouchers which are provided in lieu 
                of cash benefits and which may be used only to pay for 
                particular goods and services specified by the State as 
                suitable for the care of the child involved.
                    ``(D) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
                    ``(E) State election to opt out.--Subparagraph (A) 
                shall not apply to a State if State law specifically 
                exempts the State program funded under this part from 
                the application of subparagraph (A).
                    ``(F) Substitution of family caps in effect under 
                waivers.--Subparagraph (A) shall not apply to a State--
                            ``(i) if, as of the date of the enactment 
                        of this part, there is in effect a waiver 
                        approved by the Secretary under section 1115 
                        which permits the State to deny aid under the 
                        State plan approved under part A of this title 
                        (as in effect without regard to the amendments 
                        made by title I of the Bipartisan Welfare 
                        Reform Act of 1996) to a family by reason of 
                        the birth of a child to a family member 
                        otherwise eligible for such aid; and
                            ``(ii) for so long as the State continues 
                        to implement such policy under the State 
                        program funded under this part, under rules 
                        prescribed by the State.
            ``(3) Reduction or elimination of assistance for 
        noncooperation in child support.--If the agency responsible for 
        administering the State plan approved under part D determines 
        that an individual is not cooperating with the State in 
        establishing, modifying, or enforcing a support order with 
        respect to a child of the individual, then the State--
                    ``(A) shall deduct from the assistance that would 
                otherwise be provided to the family of the individual 
                under the State program funded under this part the 
                share of such assistance attributable to the 
                individual; and
                    ``(B) may deny the family any assistance under the 
                State program.
            ``(4) No assistance for families not assigning certain 
        support rights to the state.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall require, as a condition of 
                providing assistance to a family under the State 
                program funded under this part, that a member of the 
                family assign to the State any rights the family member 
                may have (on behalf of the family member or of any 
                other person for whom the family member has applied for 
                or is receiving such assistance) to support from any 
                other person, not exceeding the total amount of 
                assistance so provided to the family, which accrue (or 
                have accrued) before the date the family leaves the 
                program, which assignment, on and after the date the 
                family leaves the program, shall not apply with respect 
                to any support (other than support collected pursuant 
                to section 464) which accrued before the family 
                received such assistance and which the State has not 
                collected by--
                            ``(i) September 30, 2000, if the assignment 
                        is executed on or after October 1, 1997, and 
                        before October 1, 2000; or
                            ``(ii) the date the family leaves the 
                        program, if the assignment is executed on or 
                        after October 1, 2000.
                    ``(B) Limitation.--A State to which a grant is made 
                under section 403 shall not require, as a condition of 
                providing assistance to any family under the State 
                program funded under this part, that a member of the 
                family assign to the State any rights to support 
                described in subparagraph (A) which accrue after the 
                date the family leaves the program, except to the 
                extent necessary to enable the State to comply with 
                section 457.
            ``(5) No assistance for teenage parents who do not attend 
        high school or other equivalent training program.--A State to 
        which a grant is made under section 403 shall not use any part 
        of the grant to provide assistance to an individual who has not 
        attained 18 years of age, is not married, has a minor child at 
        least 12 weeks of age in his or her care, and has not 
        successfully completed a high-school education (or its 
        equivalent), if the individual does not participate in--
                    ``(A) educational activities directed toward the 
                attainment of a high school diploma or its equivalent; 
                or
                    ``(B) an alternative educational or training 
                program that has been approved by the State.
            ``(6) No assistance for teenage parents not living in 
        adult-supervised settings.--
                    ``(A) In general.--
                            ``(i) Requirement.--Except as provided in 
                        subparagraph (B), a State to which a grant is 
                        made under section 403 shall not use any part 
                        of the grant to provide assistance to an 
                        individual described in clause (ii) of this 
                        subparagraph if the individual and the minor 
                        child referred to in clause (ii)(II) do not 
                        reside in a place of residence maintained by a 
                        parent, legal guardian, or other adult relative 
                        of the individual as such parent's, guardian's, 
                        or adult relative's own home.
                            ``(ii) Individual described.--For purposes 
                        of clause (i), an individual described in this 
                        clause is an individual who--
                                    ``(I) has not attained 18 years of 
                                age; and
                                    ``(II) is not married, and has a 
                                minor child in his or her care.
                    ``(B) Exception.--
                            ``(i) Provision of, or assistance in 
                        locating, adult-supervised living 
                        arrangement.--In the case of an individual who 
                        is described in clause (ii), the State agency 
                        referred to in section 402(a)(4) shall provide, 
                        or assist the individual in locating, a second 
                        chance home, maternity home, or other 
                        appropriate adult-supervised supportive living 
                        arrangement, taking into consideration the 
                        needs and concerns of the individual, unless 
                        the State agency determines that the 
                        individual's current living arrangement is 
                        appropriate, and thereafter shall require that 
                        the individual and the minor child referred to 
                        in subparagraph (A)(ii)(II) reside in such 
living arrangement as a condition of the continued receipt of 
assistance under the State program funded under this part attributable 
to funds provided by the Federal Government (or in an alternative 
appropriate arrangement, should circumstances change and the current 
arrangement cease to be appropriate).
                            ``(ii) Individual described.--For purposes 
                        of clause (i), an individual is described in 
                        this clause if the individual is described in 
                        subparagraph (A)(ii), and--
                                    ``(I) the individual has no parent, 
                                legal guardian or other appropriate 
                                adult relative described in subclause 
                                (II) of his or her own who is living or 
                                whose whereabouts are known;
                                    ``(II) no living parent, legal 
                                guardian, or other appropriate adult 
                                relative, who would otherwise meet 
                                applicable State criteria to act as the 
                                individual's legal guardian, of such 
                                individual allows the individual to 
                                live in the home of such parent, 
                                guardian, or relative;
                                    ``(III) the State agency determines 
                                that--
                                            ``(aa) the individual or 
                                        the minor child referred to in 
                                        subparagraph (A)(ii)(II) is 
                                        being or has been subjected to 
                                        serious physical or emotional 
                                        harm, sexual abuse, or 
                                        exploitation in the residence 
                                        of the individual's own parent 
                                        or legal guardian; or
                                            ``(bb) substantial evidence 
                                        exists of an act or failure to 
                                        act that presents an imminent 
                                        or serious harm if the 
                                        individual and the minor child 
                                        lived in the same residence 
                                        with the individual's own 
                                        parent or legal guardian; or
                                    ``(IV) the State agency otherwise 
                                determines that it is in the best 
                                interest of the minor child to waive 
                                the requirement of subparagraph (A) 
                                with respect to the individual or the 
                                minor child.
                            ``(iii) Second-chance home.--For purposes 
                        of this subparagraph, the term `second-chance 
                        home' means an entity that provides individuals 
                        described in clause (ii) with a supportive and 
                        supervised living arrangement in which such 
                        individuals are required to learn parenting 
                        skills, including child development, family 
                        budgeting, health and nutrition, and other 
                        skills to promote their long-term economic 
                        independence and the well-being of their 
                        children.
            ``(7) No medical services.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a State to which a grant is made 
                under section 403 shall not use any part of the grant 
                to provide medical services.
                    ``(B) Exception for family planning services.--As 
                used in subparagraph (A), the term `medical services' 
                does not include family planning services.
            ``(8) No assistance for more than 5 years.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), a State to which a grant is 
                made under section 403 shall not use any part of the 
                grant to provide cash assistance to a family that 
                includes an adult who has received assistance under any 
                State program funded under this part attributable to 
                funds provided by the Federal Government, for 60 months 
                (whether or not consecutive) after the date the State 
                program funded under this part commences.
                    ``(B) Minor child exception.--In determining the 
                number of months for which an individual who is a 
                parent or pregnant has received assistance under the 
                State program funded under this part, the State shall 
                disregard any month for which such assistance was 
                provided with respect to the individual and during 
                which the individual was--
                            ``(i) a minor child; and
                            ``(ii) not the head of a household or 
                        married to the head of a household.
                    ``(C) Hardship exception.--
                            ``(i) In general.--The State may exempt a 
                        family from the application of subparagraph (A) 
                        by reason of hardship or if the family includes 
                        an individual who has been battered or 
                        subjected to extreme cruelty.
                            ``(ii) Limitation.--The number of families 
                        with respect to which an exemption made by a 
                        State under clause (i) is in effect for a 
                        fiscal year shall not exceed 20 percent of the 
                        average monthly number of families to which 
                        assistance is provided under the State program 
                        funded under this part.
                            ``(iii) Battered or subject to extreme 
                        cruelty defined.--For purposes of clause (i), 
                        an individual has been battered or subjected to 
                        extreme cruelty if the individual has been 
                        subjected to--
                                    ``(I) physical acts that resulted 
                                in, or threatened to result in, 
                                physical injury to the individual;
                                    ``(II) sexual abuse;
                                    ``(III) sexual activity involving a 
                                dependent child;
                                    ``(IV) being forced as the 
                                caretaker relative of a dependent child 
                                to engage in nonconsensual sexual acts 
                                or activities;
                                    ``(V) threats of, or attempts at, 
                                physical or sexual abuse;
                                    ``(VI) mental abuse; or
                                    ``(VII) neglect or deprivation of 
                                medical care.
                    ``(D) Rule of interpretation.--Subparagraph (A) 
                shall not be interpreted to require any State to 
                provide assistance to any individual for any period of 
                time under the State program funded under this part.
            ``(9) Denial of assistance for 10 years to a person found 
        to have fraudulently misrepresented residence in order to 
        obtain assistance in 2 or more states.--A State to which a 
        grant is made under section 403 shall not use any part of the 
        grant to provide cash assistance to an individual during the 
        10-year period that begins on the date the individual is 
        convicted in Federal or State court of having made a fraudulent 
        statement or representation with respect to the place of 
        residence of the individual in order to receive assistance 
        simultaneously from 2 or more States under programs that are 
        funded under this title, title XIX, or the Food Stamp Act of 
        1977, or benefits in 2 or more States under the supplemental 
        security income program under title XVI.
            ``(10) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall not use any part of the grant 
                to provide assistance to any individual who is--
                            ``(i) fleeing to avoid prosecution, or 
                        custody or confinement after conviction, under 
                        the laws of the place from which the individual 
                        flees, for a crime, or an attempt to commit a 
                        crime, which is a felony under the laws of the 
                        place from which the individual flees, or 
                        which, in the case of the State of New Jersey, 
                        is a high misdemeanor under the laws of such 
                        State; or
                            ``(ii) violating a condition of probation 
                        or parole imposed under Federal or State law.
                    ``(B) Exchange of information with law enforcement 
                agencies.--If a State to which a grant is made under 
                section 403 establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State program funded 
                under this part, the safeguards shall not prevent 
the State agency administering the program from furnishing a Federal, 
State, or local law enforcement officer, upon the request of the 
officer, with the current address of any recipient if the officer 
furnishes the agency with the name of the recipient and notifies the 
agency that--
                            ``(i) the recipient--
                                    ``(I) is described in subparagraph 
                                (A); or
                                    ``(II) has information that is 
                                necessary for the officer to conduct 
                                the official duties of the officer; and
                            ``(ii) the location or apprehension of the 
                        recipient is within such official duties.
            ``(11) Denial of assistance for minor children who are 
        absent from the home for a significant period.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall not use any part of the grant 
                to provide assistance for a minor child who has been, 
                or is expected by a parent (or other caretaker 
                relative) of the child to be, absent from the home for 
                a period of 45 consecutive days or, at the option of 
                the State, such period of not less than 30 and not more 
                than 90 consecutive days as the State may provide for 
                in the State plan submitted pursuant to section 402.
                    ``(B) State authority to establish good cause 
                exceptions.--The State may establish such good cause 
                exceptions to subparagraph (A) as the State considers 
                appropriate if such exceptions are provided for in the 
                State plan submitted pursuant to section 402.
                    ``(C) Denial of assistance for relative who fails 
                to notify state agency of absence of child.--A State to 
                which a grant is made under section 403 shall not use 
                any part of the grant to provide assistance for an 
                individual who is a parent (or other caretaker 
                relative) of a minor child and who fails to notify the 
                agency administering the State program funded under 
                this part of the absence of the minor child from the 
                home for the period specified in or provided for 
                pursuant to subparagraph (A), by the end of the 5-day 
                period that begins with the date that it becomes clear 
                to the parent (or relative) that the minor child will 
                be absent for such period so specified or provided for.
            ``(12) Income security payments not to be disregarded in 
        determining the amount of assistance to be provided to a 
        family.--If a State to which a grant is made under section 403 
        uses any part of the grant to provide assistance for any 
        individual who is receiving a payment under a State plan for 
        old-age assistance approved under section 2, a State program 
        funded under part B that provides cash payments for foster 
        care, or the supplemental security income program under title 
        XVI, then the State shall not disregard the payment in 
        determining the amount of assistance to be provided under the 
        State program funded under this part, from funds provided by 
        the Federal Government, to the family of which the individual 
        is a member.
            ``(13) Provision of vouchers to families denied cash 
        assistance due to state-imposed time limits.--
                    ``(A) Requirement.--If a family is denied 
                assistance under the State program funded under this 
                part by reason of a time limit imposed by the State 
                other than pursuant to paragraph (8), the State shall 
                provide vouchers to the family in accordance with 
                subparagraph (B).
                    ``(B) Characteristics of vouchers.--The vouchers 
                referred to in subparagraph (A) shall be--
                            ``(i) in an amount equal to the amount 
                        determined by the State to meet the needs of 
                        only the child or children in the family, which 
                        shall be determined in the same manner as the 
                        State would otherwise determines the needs of 
                        the child or children under the program;
                            ``(ii) designed appropriately to pay a 
                        third party for goods and services to be 
                        provided by the third party to the child or 
                        children in the family; and
                            ``(iii) redeemable by a third party 
                        described in clause (ii) for a dollar amount 
                        equal to the amount of the voucher.
    ``(b) Aliens.--For special rules relating to the treatment of 
aliens, see section 402 of the Bipartisan Welfare Reform Act of 1996.

``SEC. 409. PENALTIES.

    ``(a) In General.--Subject to this section:
            ``(1) Failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 1 month after the end of a 
                fiscal quarter, submitted the report required by 
                section 411(a) for the quarter, the Secretary shall 
                reduce the grant payable to the State under section 
                403(a)(1) for the immediately succeeding fiscal year by 
                an amount equal to 4 percent of the State family 
                assistance grant.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal quarter if 
                the State submits the report before the end of the 
                immediately succeeding fiscal quarter.
            ``(2) Failure to participate in the income and eligibility 
        verification system.--If the Secretary determines that a State 
        program funded under this part is not participating during a 
        fiscal year in the income and eligibility verification system 
        required by section 1137, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by an amount equal to not 
        more than 2 percent of the State family assistance grant.
            ``(3) Failure to comply with paternity establishment and 
        child support enforcement requirements under part d.--
        Notwithstanding any other provision of this Act, if the 
        Secretary determines that the State agency that administers a 
        program funded under this part does not enforce the penalties 
        requested by the agency administering part D against recipients 
        of assistance under the State program who fail to cooperate in 
        establishing paternity in accordance with such part, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year 
        (without regard to this section) by not more than 5 percent.
            ``(4) Failure to timely repay a federal loan fund for state 
        welfare programs.--If the Secretary determines that a State has 
        failed to repay any amount borrowed from the Federal Loan Fund 
        for State Welfare Programs established under section 406 within 
        the period of maturity applicable to the loan, plus any 
        interest owed on the loan, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year quarter (without regard to 
        this section) by the outstanding loan amount, plus the interest 
        owed on the outstanding amount. The Secretary shall not forgive 
        any outstanding loan amount or interest owed on the outstanding 
        amount.
            ``(5) Failure of any state to maintain certain level of 
        historic effort.--
                    ``(A) In general.--The Secretary shall reduce the 
                grant payable to the State under section 403(a)(1) for 
                fiscal year 1997, 1998, 1999, 2000, 2001, or 2002 by 
                the amount (if any) by which qualified State 
                expenditures for the then immediately preceding fiscal 
                year is less than the applicable percentage of historic 
                State expenditures with respect to the fiscal year.
                    ``(B) Definitions.--As used in this paragraph:
                            ``(i) Qualified state expenditures.--
                                    ``(I) In general.--The term 
                                `qualified State expenditures' means, 
                                with respect to a State and a fiscal 
                                year, the total expenditures by the 
State during the fiscal year, under all State programs, for any of the 
following with respect to eligible families:
                                            ``(aa) Cash assistance.
                                            ``(bb) Child care 
                                        assistance.
                                            ``(cc) Educational 
                                        activities designed to increase 
                                        self-sufficiency, job training, 
                                        and work, excluding any 
                                        expenditure for public 
                                        education in the State except 
                                        expenditures which involve the 
                                        provision of services or 
                                        assistance to a member of an 
                                        eligible family which is not 
                                        generally available to persons 
                                        who are not members of eligible 
                                        families.
                                            ``(dd) Administrative costs 
                                        in connection with the matters 
                                        described in items (aa), (bb), 
                                        (cc), and (ee), but only to the 
                                        extent that such costs do not 
                                        exceed 15 percent of the total 
                                        amount of qualified State 
                                        expenditures for the fiscal 
                                        year.
                                            ``(ee) Any other use of 
                                        funds allowable under section 
                                        404(a)(1).
                                    ``(II) Exclusion of transfers from 
                                other state and local programs.--Such 
                                term does not include expenditures 
                                under any State or local program during 
                                a fiscal year, except to the extent 
                                that--
                                            ``(aa) such expenditures 
                                        exceed the amount expended 
                                        under the State or local 
                                        program in the fiscal year most 
                                        recently ending before the date 
                                        of the enactment of this part; 
                                        or
                                            ``(bb) the State is 
                                        entitled to a payment under 
                                        former section 403 (as in 
                                        effect immediately before such 
                                        date of enactment) with respect 
                                        to such expenditures.
                                    ``(III) Eligible families.--As used 
                                in subclause (I), the term `eligible 
                                families' means families eligible for 
                                assistance under the State program 
                                funded under this part, and families 
                                who would be eligible for such 
                                assistance but for the application of 
                                paragraph (2) or (8) of section 408(a) 
                                of this Act or section 402 of the 
                                Bipartisan Welfare Reform Act of 1996.
                            ``(ii) Applicable percentage.--The term 
                        `applicable percentage' means--
                                    ``(I) for fiscal year 1996, 85 
                                percent; and
                                    ``(II) for fiscal years 1997, 1998, 
                                1999, 2000, and 2001, 85 percent 
                                adjusted (if appropriate) in accordance 
                                with subparagraph (C).
                            ``(iii) Historic state expenditures.--The 
                        term `historic State expenditures' means, with 
                        respect to a State and a fiscal year specified 
                        in subparagraph (A), the lesser of--
                                    ``(I) the expenditures by the State 
                                under parts A and F (as in effect 
                                during fiscal year 1994) for fiscal 
                                year 1994; or
                                    ``(II) the amount which bears the 
                                same ratio to the amount described in 
                                subclause (I) as--
                                            ``(aa) the State family 
                                        assistance grant for the fiscal 
                                        year immediately preceding the 
                                        fiscal year specified in 
                                        subparagraph (A), plus the 
                                        total amount required to be 
                                        paid to the State under former 
                                        section 403 for fiscal year 
                                        1994 with respect to amounts 
                                        expended by the State for child 
                                        care under subsection (g) or 
                                        (i) of section 402 (as in 
                                        effect during fiscal year 
                                        1994); bears to
                                            ``(bb) the total amount 
                                        required to be paid to the 
                                        State under former section 403 
                                        (as in effect during fiscal 
                                        year 1994) for fiscal year 
                                        1994.
                        Such term does not include any expenditures 
                        under the State plan approved under part A (as 
                        so in effect) on behalf of individuals covered 
                        by a tribal family assistance plan approved 
                        under section 412, as determined by the 
                        Secretary.
                            ``(iv) Expenditures by the state.--The term 
                        `expenditures by the State' does not include--
                                    ``(I) any expenditures from amounts 
                                made available by the Federal 
                                Government;
                                    ``(II) State funds expended for the 
                                medicaid program under title XIX; or
                                    ``(III) any State funds which are 
                                used to match Federal funds or are 
                                expended as a condition of receiving 
                                Federal funds under Federal programs 
                                other than under this part.
                    ``(C) Performance-based adjustments to applicable 
                percentage.--
                            ``(i) Increase in maintenance of effort 
                        threshold for failure to meet participation 
                        rates.--If the Secretary determines that a 
                        State has failed to achieve the participation 
                        rate required by section 407 for a fiscal year, 
                        the Secretary shall increase the applicable 
                        percentage for the State for the immediately 
                        succeeding fiscal year by not more than 5 
                        percentage points. In determining the amount of 
                        any such increase, the Secretary shall take 
                        into account any increase in the number of 
                        persons served by the State program and any 
                        increase in the unemployment rate of the State, 
                        in accordance with regulations which the 
                        Secretary shall prescribe.
                            ``(ii) Reduction in maintenance of effort 
                        threshold for high performance states.--
                                    ``(I) Criteria.--The Secretary 
                                shall, by regulation, establish 
                                measures of the effectiveness of the 
                                State program funded under this part in 
                                moving recipients of assistance under 
                                the program into full-time unsubsidized 
                                employment. In developing the 
                                regulations, the Secretary shall take 
                                into account the length of time former 
                                recipients of assistance under the 
                                program remain employed, the earnings 
                                of such former recipients who obtain 
                                private sector employment, the total 
                                State caseload under the program, and 
                                the rate of unemployment in the State.
                                    ``(II) Reduction of threshold.--The 
                                Secretary shall reduce the applicable 
                                percentage for a State for a fiscal 
                                year by not more than 5 percentage 
                                points if the Secretary determines that 
                                the State achieved the participation 
                                rate required by section 407 for the 
                                immediately preceding fiscal year and 
                                exceeded such performance threshold as 
                                the Secretary may establish under 
                                subclause (I) of this clause.
            ``(6) Substantial noncompliance of state child support 
        enforcement program with requirements of part d.--
                    ``(A) In general.--If a State program operated 
                under part D is found as a result of a review conducted 
                under section 452(a)(4) not to have complied 
                substantially with the requirements of such part for 
                any quarter, and the Secretary determines that the 
                program is not complying substantially with such 
                requirements at the time the finding is made, the 
                Secretary shall reduce the grant payable to the State 
                under section 403(a)(1) for the quarter and each 
                subsequent quarter that ends before the 1st quarter 
                throughout which the program is found to be in 
                substantial compliance with such requirements by--
                            ``(i) not less than 1 nor more than 2 
                        percent;
                            ``(ii) not less than 2 nor more than 3 
                        percent, if the finding is the 2nd consecutive 
                        such finding made as a result of such a review; 
                        or
                            ``(iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding made as a 
                        result of such a review.
                    ``(B) Disregard of noncompliance which is of a 
                technical nature.--For purposes of subparagraph (A) of 
                this paragraph and section 452(a)(4), a State which is 
                not in full compliance with the requirements of this 
                part shall be determined to be in substantial 
                compliance with such requirements only if the Secretary 
                determines that any noncompliance with such 
                requirements is of a technical nature which does not 
                adversely affect the performance of the State's program 
                operated under part D.
            ``(7) Failure of state receiving amounts from contingency 
        fund to maintain 100 percent of historic effort.--If, at the 
        end of any fiscal year during which amounts from the 
        Contingency Fund for State Welfare Programs have been paid to a 
        State, the Secretary finds that the State has failed, during 
        the fiscal year, to expend under the State program funded under 
        this part an amount equal to at least 100 percent of the level 
        of historic State expenditures (as defined in paragraph 
        (7)(B)(iii) of this subsection) with respect to the fiscal 
        year, the Secretary shall reduce the grant payable to the State 
        under section 403(a)(1) for the immediately succeeding fiscal 
        year by the total of the amounts so paid to the State.
            ``(8) Failure to expend additional state funds to replace 
        grant reductions.--If the grant payable to a State under 
        section 403(a)(1) for a fiscal year is reduced by reason of 
        this subsection, the State shall, during the immediately 
        succeeding fiscal year, expend under the State program funded 
        under this part an amount equal to the total amount of such 
        reductions.
            ``(9) Failure to provide voucher assistance.--If the 
        Secretary determines that a State program funded under this 
        part has failed to comply with section 408(a)(13) during a 
        fiscal year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to the difference 
        between the amount the State would have expended on voucher 
        assistance pursuant to section 408(a)(13) during the fiscal 
        year in the absence of such noncompliance and the amount the 
        State expended on such voucher assistance during the fiscal 
        year.
            ``(10) Failure to provide transitional medical 
        assistance.--If the Secretary determines that a State has not 
        complied with section 408(a)(15) during a quarter, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding quarter by an 
        amount equal to 5 percent of the portion of the State family 
        assistance grant that is payable to the State for such 
        succeeding quarter.
    ``(b) Reasonable Cause Exception.--
            ``(1) In general.--The Secretary may not impose a penalty 
        on a State under subsection (a) with respect to a requirement 
        if the Secretary determines that the State has reasonable cause 
        for failing to comply with the requirement.
            ``(2) Exception.--Paragraph (1) of this subsection shall 
        not apply to any penalty under subsection (a)(5).
    ``(c) Corrective Compliance Plan.--
            ``(1) In general.--
                    ``(A) Notification of violation.--Before imposing a 
                penalty against a State under subsection (a) with 
                respect to a violation of this part, the Secretary 
                shall notify the State of the violation and allow the 
                State the opportunity to enter into a corrective 
                compliance plan in accordance with this subsection 
                which outlines how the State will correct the violation 
                and how the State will insure continuing compliance 
                with this part.
                    ``(B) 60-day period to propose a corrective 
                compliance plan.--During the 60-day period that begins 
                on the date the State receives a notice provided under 
                subparagraph (A) with respect to a violation, the State 
                may submit to the Federal Government a corrective 
                compliance plan to correct the violation.
                    ``(C) Consultation about modifications.--During the 
                60-day period that begins with the date the Secretary 
                receives a corrective compliance plan submitted by a 
                State in accordance with subparagraph (B), the 
                Secretary may consult with the State on modifications 
                to the plan.
                    ``(D) Acceptance of plan.-- A corrective compliance 
                plan submitted by a State in accordance with 
                subparagraph (B) is deemed to be accepted by the 
                Secretary if the Secretary does not accept or reject 
                the plan during 60-day period that begins on the date 
                the plan is submitted.
            ``(2) Effect of correcting violation.--The Secretary may 
        not impose any penalty under subsection (a) with respect to any 
        violation covered by a State corrective compliance plan 
        accepted by the Secretary if the State corrects the violation 
        pursuant to the plan.
            ``(3) Effect of failing to correct violation.--The 
        Secretary shall assess some or all of a penalty imposed on a 
        State under subsection (a) with respect to a violation if the 
        State does not, in a timely manner, correct the violation 
        pursuant to a State corrective compliance plan accepted by the 
        Secretary.
    ``(d) Limitation on Amount of Penalty.--
            ``(1) In general.--In imposing the penalties described in 
        subsection (a), the Secretary shall not reduce any quarterly 
        payment to a State by more than 25 percent.
            ``(2) Carryforward of unrecovered penalties.--To the extent 
        that paragraph (1) of this subsection prevents the Secretary 
        from recovering during a fiscal year the full amount of 
        penalties imposed on a State under subsection (a) of this 
        section for a prior fiscal year, the Secretary shall apply any 
        remaining amount of such penalties to the grant payable to the 
        State under section 403(a)(1) for the immediately succeeding 
        fiscal year.
    ``(e) Other Penalties.--If, after reasonable notice and opportunity 
for hearing to the State agency administering or supervising the 
administration of a State program funded under this part, the Secretary 
finds that the State has failed to comply substantially with any 
provision of this part or of the State plan approved under section 402, 
the Secretary shall, if subsection (a) does not apply to the failure, 
notify the State agency that further payments will not be made to the 
State under this part (or, in the Secretary's discretion, that the 
payments will be reduced or limited to categories under, or parts of, 
the State program not affected by the failure) until the Secretary is 
satisfied that there is no longer any such failure to comply. Until the 
Secretary is so satisfied, the Secretary shall make no further payments 
to the State (or shall reduce or limit payments to categories under or 
parts of the State program not affected by the failure).

``SEC. 410. APPEAL OF ADVERSE DECISION.

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

``SEC. 411. DATA COLLECTION AND REPORTING.

    ``(a) Quarterly Reports by States.--
            ``(1) General reporting requirement.--
                    ``(A) Contents of report.--Beginning July 1, 1996, 
                each State shall collect on a monthly basis, and report 
                to the Secretary on a quarterly basis, the following 
                disaggregated case record information on the families 
                receiving assistance under the State program funded 
                under this part:
                            ``(i) The county of residence of the 
                        family.
                            ``(ii) Whether a child receiving such 
                        assistance or an adult in the family is 
                        disabled.
                            ``(iii) The ages of the members of such 
                        families.
                            ``(iv) The number of individuals in the 
                        family, and the relation of each family member 
                        to the youngest child in the family.
                            ``(v) The employment status and earnings of 
                        the employed adult in the family.
                            ``(vi) The marital status of the adults in 
                        the family, including whether such adults have 
                        never married, are widowed, or are divorced.
                            ``(vii) The race and educational status of 
                        each adult in the family.
                            ``(viii) The race and educational status of 
                        each child in the family.
                            ``(ix) Whether the family received 
                        subsidized housing, medical assistance under 
                        the State plan approved under title XIX, food 
                        stamps, or subsidized child care, and if the 
                        latter 2, the amount received.
                            ``(x) The number of months that the family 
                        has received each type of assistance under the 
                        program.
                            ``(xi) If the adults participated in, and 
                        the number of hours per week of participation 
                        in, the following activities:
                                    ``(I) Education.
                                    ``(II) Subsidized private sector 
                                employment.
                                    ``(III) Unsubsidized employment.
                                    ``(IV) Public sector employment, 
                                work experience, or community service.
                                    ``(V) Job search.
                                    ``(VI) Job skills training or on-
                                the-job training.
                                    ``(VII) Vocational education.
                            ``(xii) Information necessary to calculate 
                        participation rates under section 407.
                            ``(xiii) The type and amount of assistance 
                        received under the program, including the 
                        amount of and reason for any reduction of 
                        assistance (including sanctions).
                            ``(xiv) From a sample of closed cases, 
                        whether the family left the program, and if so, 
                        whether the family left due to--
                                    ``(I) employment;
                                    ``(II) marriage;
                                    ``(III) the prohibition set forth 
                                in section 408(a)(8);
                                    ``(IV) sanction; or
                                    ``(V) State policy.
                            ``(xv) Any amount of unearned income 
                        received by any member of the family.
                            ``(xvi) The citizenship of the members of 
                        the family.
                    ``(B) Use of estimates.--
                            ``(i) Authority.--A State may comply with 
                        subparagraph (A) by submitting an estimate 
                        which is obtained through the use of 
                        scientifically acceptable sampling methods 
                        approved by the Secretary.
                            ``(ii) Sampling and other methods.--The 
                        Secretary shall provide the States with such 
                        case sampling plans and data collection 
                        procedures as the Secretary deems necessary to 
                        produce statistically valid estimates of the 
                        performance of State programs funded under this 
                        part. The Secretary may develop and implement 
                        procedures for verifying the quality of data 
                        submitted by the States.
            ``(2) Report on use of federal funds to cover 
        administrative costs and overhead.--The report required by 
        paragraph (1) for a fiscal quarter shall include a statement of 
        the percentage of the funds paid to the State under this part 
        for the quarter that are used to cover administrative costs or 
        overhead.
            ``(3) Report on state expenditures on programs for needy 
        families.--The report required by paragraph (1) for a fiscal 
        quarter shall include a statement of the total amount expended 
        by the State during the quarter on programs for needy families.
            ``(4) Report on noncustodial parents participating in work 
        activities.--The report required by paragraph (1) for a fiscal 
        quarter shall include the number of noncustodial parents in the 
        State who participated in work activities (as defined in 
        section 407(d)) during the quarter.
            ``(5) Report on transitional services.--The report required 
        by paragraph (1) for a fiscal quarter shall include the total 
        amount expended by the State during the quarter to provide 
        transitional services to a family that has ceased to receive 
        assistance under this part because of employment, along with a 
        description of such services.
            ``(6) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to define the data elements 
        with respect to which reports are required by this subsection.
    ``(b) Annual Reports to the Congress by the Secretary.--Not later 
than 6 months after the end of fiscal year 1997, and each fiscal year 
thereafter, the Secretary shall transmit to the Congress a report 
describing--
            ``(1) whether the States are meeting--
                    ``(A) the participation rates described in section 
                407(a); and
                    ``(B) the objectives of--
                            ``(i) increasing employment and earnings of 
                        needy families, and child support collections; 
                        and
                            ``(ii) decreasing out-of-wedlock 
                        pregnancies and child poverty;
            ``(2) the demographic and financial characteristics of 
        families applying for assistance, families receiving 
        assistance, and families that become ineligible to receive 
        assistance;
            ``(3) the characteristics of each State program funded 
        under this part; and
            ``(4) the trends in employment and earnings of needy 
        families with minor children living at home.

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

    ``(a) Grants for Indian Tribes.--
            ``(1) Tribal family assistance grant.--
                    ``(A) In general.--For each of fiscal years 1997, 
                1998, 1999, and 2000, the Secretary shall pay to each 
                Indian tribe that has an approved tribal family 
                assistance plan a tribal family assistance grant for 
                the fiscal year in an amount equal to the amount 
                determined under subparagraph (B), and shall reduce the 
                grant payable under section 403(a)(1) to any State in 
                which lies the service area or areas of the Indian 
                tribe by that portion of the amount so determined that 
                is attributable to expenditures by the State.
                    ``(B) Amount determined.--
                            ``(i) In general.--The amount determined 
                        under this subparagraph is an amount equal to 
                        the total amount of the Federal payments to a 
                        State or States under section 403 (as in effect 
                        during such fiscal year) for fiscal year 1994 
                        attributable to expenditures (other than child 
                        care expenditures) by the State or States under 
                        parts A and F (as so in effect) for fiscal year 
                        1994 for Indian families residing in the 
                        service area or areas identified by the Indian 
                        tribe pursuant to subsection (b)(1)(C) of this 
                        section.
                            ``(ii) Use of state submitted data.--
                                    ``(I) In general.--The Secretary 
                                shall use State submitted data to make 
                                each determination under clause (i).
                                    ``(II) Disagreement with 
                                determination.--If an Indian tribe or 
                                tribal organization disagrees with 
                                State submitted data described under 
                                subclause (I), the Indian tribe or 
                                tribal organization may submit to the 
                                Secretary such additional information 
                                as may be relevant to making the 
                                determination under clause (i) and the 
                                Secretary may consider such information 
                                before making such determination.
            ``(2) Grants for indian tribes that received jobs funds.--
                    ``(A) In general.--The Secretary shall pay to each 
                eligible Indian tribe for each of fiscal years 1996, 
                1997, 1998, 1999, and 2000 a grant in an amount equal 
                to the amount received by the Indian tribe in fiscal 
                year 1994 under section 482(i) (as in effect during 
                fiscal year 1994).
                    ``(B) Eligible indian tribe.--For purposes of 
                subparagraph (A), the term `eligible Indian tribe' 
                means an Indian tribe or Alaska Native organization 
                that conducted a job opportunities and basic skills 
                training program in fiscal year 1995 under section 
                482(i) (as in effect during fiscal year 1995).
                    ``(C) Use of grant.--Each Indian tribe to which a 
                grant is made under this paragraph shall use the grant 
                for the purpose of operating a program to make work 
                activities available to members of the Indian tribe.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated $7,638,474 for 
                each fiscal year specified in subparagraph (A) for 
                grants under subparagraph (A).
    ``(b) 3-Year Tribal Family Assistance Plan.--
            ``(1) In general.--Any Indian tribe that desires to receive 
        a tribal family assistance grant shall submit to the Secretary 
        a 3-year tribal family assistance plan that--
                    ``(A) outlines the Indian tribe's approach to 
                providing welfare-related services for the 3-year 
                period, consistent with this section;
                    ``(B) specifies whether the welfare-related 
                services provided under the plan will be provided by 
                the Indian tribe or through agreements, contracts, or 
                compacts with intertribal consortia, States, or other 
                entities;
                    ``(C) identifies the population and service area or 
                areas to be served by such plan;
                    ``(D) provides that a family receiving assistance 
                under the plan may not receive duplicative assistance 
                from other State or tribal programs funded under this 
                part;
                    ``(E) identifies the employment opportunities in or 
                near the service area or areas of the Indian tribe and 
                the manner in which the Indian tribe will cooperate and 
                participate in enhancing such opportunities for 
                recipients of assistance under the plan consistent with 
                any applicable State standards; and
                    ``(F) applies the fiscal accountability provisions 
                of section 5(f)(1) of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450c(f)(1)), 
                relating to the submission of a single-agency audit 
                report required by chapter 75 of title 31, United 
                States Code.
            ``(2) Approval.--The Secretary shall approve each tribal 
        family assistance plan submitted in accordance with paragraph 
        (1).
            ``(3) Consortium of tribes.--Nothing in this section shall 
        preclude the development and submission of a single tribal 
        family assistance plan by the participating Indian tribes of an 
        intertribal consortium.
    ``(c) Minimum Work Participation Requirements and Time Limits.--The 
Secretary, with the participation of Indian tribes, shall establish for 
each Indian tribe receiving a grant under this section minimum work 
participation requirements, appropriate time limits for receipt of 
welfare-related services under the grant, and penalties against 
individuals--
            ``(1) consistent with the purposes of this section;
            ``(2) consistent with the economic conditions and resources 
        available to each tribe; and
            ``(3) similar to comparable provisions in section 407(d).
    ``(d) Emergency Assistance.--Nothing in this section shall preclude 
an Indian tribe from seeking emergency assistance from any Federal loan 
program or emergency fund.
    ``(e) Accountability.--Nothing in this section shall be construed 
to limit the ability of the Secretary to maintain program funding 
accountability consistent with--
            ``(1) generally accepted accounting principles; and
            ``(2) the requirements of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450 et seq.).
    ``(f) Penalties.--Subsections (a)(4), (b), and (e) of section 409 
shall apply to an Indian tribe with an approved tribal assistance plan 
in the same manner as such subsections apply to a State.
    ``(g) Data Collection and Reporting.--Section 411 shall apply to an 
Indian tribe with an approved tribal family assistance plan.
    ``(h) Special Rule for Indian Tribes in Alaska.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, and except as provided in paragraph (2), an 
        Indian tribe in the State of Alaska that receives a tribal 
        family assistance grant under this section shall use the grant 
        to operate a program in accordance with requirements comparable 
        to the requirements applicable to the program of the State of 
        Alaska funded under this part. Comparability of programs shall 
        be established on the basis of program criteria developed by 
        the Secretary in consultation with the State of Alaska and such 
        Indian tribes.
            ``(2) Waiver.--An Indian tribe described in paragraph (1) 
        may apply to the appropriate State authority to receive a 
        waiver of the requirement of paragraph (1).

``SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary shall conduct research on the 
benefits, effects, and costs of operating different State 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. The 
Secretary shall also conduct research on the costs and benefits of 
State activities under section 409.
    ``(b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
            ``(1) In general.--The Secretary may assist States in 
        developing, and shall evaluate, innovative approaches for 
        reducing welfare dependency and increasing the well-being of 
        minor children living at home with respect to recipients of 
        assistance under programs funded under this part. The Secretary 
        may provide funds for training and technical assistance to 
        carry out the approaches developed pursuant to this paragraph.
            ``(2) Evaluations.--In performing the evaluations under 
        paragraph (1), the Secretary shall, to the maximum extent 
        feasible, use random assignment as an evaluation methodology.
    ``(c) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted under this section, including the 
facilitation of the sharing of information and best practices among 
States and localities through the use of computers and other 
technologies.
    ``(d) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        annually the States to which grants are paid under section 403 
        in the order of their success in placing recipients of 
        assistance under the State program funded under this part into 
        long-term private sector jobs, reducing the overall welfare 
        caseload, and, when a practicable method for calculating this 
        information becomes available, diverting individuals from 
        formally applying to the State program and receiving 
        assistance. In ranking States under this subsection, the 
        Secretary shall take into account the average number of minor 
        children living at home in families in the State that have 
        incomes below the poverty line and the amount of funding 
        provided each State for such families.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.
    ``(e) Annual Ranking of States and Review of Issues Relating to 
Out-of-Wedlock Births.--
            ``(1) Annual ranking of states.--
                    ``(A) In general.--The Secretary shall annually 
                rank States to which grants are made under section 403 
                based on the following ranking factors:
                            ``(i) Absolute out-of-wedlock ratios.--The 
                        ratio represented by--
                                    ``(I) the total number of out-of-
                                wedlock births in families receiving 
                                assistance under the State program 
                                under this part in the State for the 
                                most recent fiscal year for which 
                                information is available; over
                                    ``(II) the total number of births 
                                in families receiving assistance under 
                                the State program under this part in 
                                the State for such year.
                            ``(ii) Net changes in the out-of-wedlock 
                        ratio.--The difference between the ratio 
                        described in subparagraph (A)(i) with respect 
                        to a State for the most recent fiscal year for 
                        which such information is available and the 
                        ratio with respect to the State for the 
                        immediately preceding year.
            ``(2) Annual review.--The Secretary shall review the 
        programs of the 5 States most recently ranked highest under 
        paragraph (1) and the 5 States most recently ranked the lowest 
        under paragraph (1).
    ``(f) State-Initiated Evaluations.--A State shall be eligible to 
receive funding to evaluate the State program funded under this part 
if--
            ``(1) the State submits a proposal to the Secretary for the 
        evaluation;
            ``(2) the Secretary determines that the design and approach 
        of the evaluation is rigorous and is likely to yield 
        information that is credible and will be useful to other 
        States; and
            ``(3) unless otherwise waived by the Secretary, the State 
        contributes to the cost of the evaluation, from non-Federal 
        sources, an amount equal to at least 10 percent of the cost of 
        the evaluation.
    ``(g) Funding of Studies and Demonstrations.--
            ``(1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated $15,000,000 for each fiscal year specified in 
        section 403(a)(1) for the purpose of paying--
                    ``(A) the cost of conducting the research described 
                in subsection (a);
                    ``(B) the cost of developing and evaluating 
                innovative approaches for reducing welfare dependency 
                and increasing the well-being of minor children under 
                subsection (b);
                    ``(C) the Federal share of any State-initiated 
                study approved under subsection (f); and
                    ``(D) an amount determined by the Secretary to be 
                necessary to operate and evaluate demonstration 
                projects, relating to this part, that are in effect or 
                approved under section 1115 as of September 30, 1995, 
                and are continued after such date.
            ``(2) Allocation.--Of the amount appropriated under 
        paragraph (1) for a fiscal year--
                    ``(A) 50 percent shall be allocated for the 
                purposes described in subparagraphs (A) and (B) of 
                paragraph (1), and
                    ``(B) 50 percent shall be allocated for the 
                purposes described in subparagraphs (C) and (D) of 
                paragraph (1).

``SEC. 414. STUDY BY THE CENSUS BUREAU.

    ``(a) In General.--The Bureau of the Census shall expand the Survey 
of Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact of 
the amendments made by title I of the Bipartisan Welfare Reform Act of 
1996 on a random national sample of recipients of assistance under 
State programs funded under this part and (as appropriate) other low 
income families, and in doing so, shall pay particular attention to the 
issues of out-of-wedlock birth, welfare dependency, the beginning and 
end of welfare spells, and the causes of repeat welfare spells.
    ``(b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated 
$10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 2000, 
2001, and 2002 for payment to the Bureau of the Census to carry out 
subsection (a).

``SEC. 415. WAIVERS.

    ``(a) Continuation of Waivers.--
            ``(1) Waivers in effect on date of enactment of welfare 
        reform.--Except as provided in paragraph (3), if any waiver 
        granted to a State under section 1115 or otherwise which 
        relates to the provision of assistance under a State plan under 
        this part (as in effect on September 30, 1995) is in effect as 
        of the date of the enactment of the Bipartisan Welfare Reform 
        Act of 1996, the amendments made by such Act shall not apply 
        with respect to the State before the expiration (determined 
        without regard to any extensions) of the waiver to the extent 
        such amendments are inconsistent with the waiver.
            ``(2) Waivers granted subsequently.--Except as provided in 
        paragraph (3), if any waiver granted to a State under section 
        1115 or otherwise which relates to the provision of assistance 
        under a State plan under this part (as in effect on September 
        30, 1995) is submitted to the Secretary before the date of the 
        enactment of the Bipartisan Welfare Reform Act of 1996 and 
        approved by the Secretary before the effective date of this 
        title, and the State demonstrates to the satisfaction of the 
        Secretary that the waiver will not result in Federal 
        expenditures under title IV of this Act (as in effect without 
        regard to the amendments made by the Bipartisan Welfare Reform 
        Act of 1996) that are greater than would occur in the absence 
        of the waiver, such amendments shall not apply with respect to 
        the State before the expiration (determined without regard to 
        any extensions) of the waiver to the extent such amendments are 
        inconsistent with the waiver.
            ``(3) Financing limitation.--Notwithstanding any other 
        provision of law, beginning with fiscal year 1996, a State 
        operating under a waiver described in paragraph (1) shall be 
        entitled to payment under section 403 for the fiscal year, in 
        lieu of any other payment provided for in the waiver.
    ``(b) State Option To Terminate Waiver.--
            ``(1) In general.--A State may terminate a waiver described 
        in subsection (a) before the expiration of the waiver.
            ``(2) Report.--A State which terminates a waiver under 
        paragraph (1) shall submit a report to the Secretary 
        summarizing the waiver and any available information concerning 
        the result or effect of the waiver.
            ``(3) Hold harmless provision.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, a State that, not later than the date 
                described in subparagraph (B), submits a written 
                request to terminate a waiver described in subsection 
                (a) shall be held harmless for accrued cost neutrality 
                liabilities incurred under the waiver.
                    ``(B) Date described.--The date described in this 
                subparagraph is the later of--
                            ``(i) January 1, 1996; or
                            ``(ii) 90 days following the adjournment of 
                        the first regular session of the State 
                        legislature that begins after the date of the 
                        enactment of the Bipartisan Welfare Reform Act 
                        of 1996.
    ``(c) Secretarial Encouragement of Current Waivers.--The Secretary 
shall encourage any State operating a waiver described in subsection 
(a) to continue the waiver and to evaluate, using random sampling and 
other characteristics of accepted scientific evaluations, the result or 
effect of the waiver.
    ``(d) Continuation of Individual Waivers.--A State may elect to 
continue 1 or more individual waivers described in subsection (a).

``SEC. 416. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

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

``SEC. 417. DEFINITIONS.

    ``As used in this part:
            ``(1) Adult.--The term `adult' means an individual who is 
        not a minor child.
            ``(2) Minor child.--The term `minor child' means an 
        individual who--
                    ``(A) has not attained 18 years of age; or
                    ``(B) has not attained 19 years of age and is a 
                full-time student in a secondary school (or in the 
                equivalent level of vocational or technical training).
            ``(3) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(4) Indian, indian tribe, and tribal organization.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the terms `Indian', `Indian tribe', 
                and `tribal organization' have the meaning given such 
                terms by section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b).
                    ``(B) Special rule for indian tribes in alaska.--
                The term `Indian tribe' means, with respect to the 
                State of Alaska, only the Metlakatla Indian Community 
                of the Annette Islands Reserve and the following Alaska 
                Native regional nonprofit corporations:
                            ``(i) Arctic Slope Native Association.
                            ``(ii) Kawerak, Inc.
                            ``(iii) Maniilaq Association.
                            ``(iv) Association of Village Council 
                        Presidents.
                            ``(v) Tanana Chiefs Conference.
                            ``(vi) Cook Inlet Tribal Council.
                            ``(vii) Bristol Bay Native Association.
                            ``(viii) Aleutian and Pribilof Island 
                        Association.
                            ``(ix) Chugachmuit.
                            ``(x) Tlingit Haida Central Council.
                            ``(xi) Kodiak Area Native Association.
                            ``(xii) Copper River Native Association.
            ``(5) State.--Except as otherwise specifically provided, 
        the term `State' means the 50 States of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.''.

SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE 
              ORGANIZATIONS.

    (a) In General.--
            (1) State options.--A State may--
                    (A) administer and provide services under the 
                programs described in subparagraphs (A) and (B)(i) of 
                paragraph (2) through contracts with charitable, 
                religious, or private organizations; and
                    (B) provide beneficiaries of assistance under the 
                programs described in subparagraphs (A) and (B)(ii) of 
                paragraph (2) with certificates, vouchers, or other 
                forms of disbursement which are redeemable with such 
                organizations.
            (2) Programs described.--The programs described in this 
        paragraph are the following programs:
                    (A) A State program funded under part A of title IV 
                of the Social Security Act (as amended by section 103 
                of this Act).
                    (B) Any other program established or modified under 
                title I, II, or VI of this Act, that--
                            (i) permits contracts with organizations; 
                        or
                            (ii) permits certificates, vouchers, or 
                        other forms of disbursement to be provided to 
                        beneficiaries, as a means of providing 
                        assistance.
    (b) Religious Organizations.--The purpose of this section is to 
allow States to contract with religious organizations, or to allow 
religious organizations to accept certificates, vouchers, or other 
forms of disbursement under any program described in subsection (a)(2), 
on the same basis as any other nongovernmental provider without 
impairing the religious character of such organizations, and without 
diminishing the religious freedom of beneficiaries of assistance funded 
under such program.
    (c) Nondiscrimination Against Religious Organizations.--In the 
event a State exercises its authority under subsection (a), religious 
organizations are eligible, on the same basis as any other private 
organization, as contractors to provide assistance, or to accept 
certificates, vouchers, or other forms of disbursement, under any 
program described in subsection (a)(2) so long as the programs are 
implemented consistent with the Establishment Clause of the United 
States Constitution. Except as provided in subsection (k), neither the 
Federal Government nor a State receiving funds under such programs 
shall discriminate against an organization which is or applies to be a 
contractor to provide assistance, or which accepts certificates, 
vouchers, or other forms of disbursement, on the basis that the 
organization has a religious character.
    (d) Religious Character and Freedom.--
            (1) Religious organizations.--A religious organization with 
        a contract described in subsection (a)(1)(A), or which accepts 
        certificates, vouchers, or other forms of disbursement under 
        subsection (a)(1)(B), shall retain its independence from 
        Federal, State, and local governments, including such 
        organization's control over the definition, development, 
        practice, and expression of its religious beliefs.
            (2) Additional safeguards.--Neither the Federal Government 
        nor a State shall require a religious organization to--
                    (A) alter its form of internal governance; or
                    (B) remove religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to contract to provide assistance, or 
        to accept certificates, vouchers, or other forms of 
        disbursement, funded under a program described in subsection 
        (a)(2).
    (e) Rights of Beneficiaries of Assistance.--
            (1) In general.--If an individual described in paragraph 
        (2) has an objection to the religious character of the 
        organization or institution from which the individual receives, 
        or would receive, assistance funded under any program described 
        in subsection (a)(2), the State in which the individual resides 
        shall provide such individual (if otherwise eligible for such 
        assistance) within a reasonable period of time after the date 
        of such objection with assistance from an alternative provider 
        that is accessible to the individual and the value of which is 
        not less than the value of the assistance which the individual 
        would have received from such organization.
            (2) Individual described.--An individual described in this 
        paragraph is an individual who receives, applies for, or 
        requests to apply for, assistance under a program described in 
        subsection (a)(2).
    (f) Employment Practices.--A religious organization's exemption 
provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-1a) regarding employment practices shall not be affected by its 
participation in, or receipt of funds from, programs described in 
subsection (a)(2).
    (g) Nondiscrimination Against Beneficiaries.--Except as otherwise 
provided in law, a religious organization shall not discriminate 
against an individual in regard to rendering assistance funded under 
any program described in subsection (a)(2) on the basis of religion, a 
religious belief, or refusal to actively participate in a religious 
practice.
    (h) Fiscal Accountability.--
            (1) In general.--Except as provided in paragraph (2), any 
        religious organization contracting to provide assistance funded 
        under any program described in subsection (a)(2) shall be 
        subject to the same regulations as other contractors to account 
        in accord with generally accepted auditing principles for the 
        use of such funds provided under such programs.
            (2) Limited audit.--If such organization segregates Federal 
        funds provided under such programs into separate accounts, then 
        only the financial assistance provided with such funds shall be 
        subject to audit.
    (i) Compliance.--Any party which seeks to enforce its rights under 
this section may assert a civil action for injunctive relief 
exclusively in an appropriate State court against the entity or agency 
that allegedly commits such violation.
    (j) Limitations on Use of Funds for Certain Purposes.--No funds 
provided directly to institutions or organizations to provide services 
and administer programs under subsection (a)(1)(A) shall be expended 
for sectarian worship, instruction, or proselytization.
    (k) Preemption.--Nothing in this section shall be construed to 
preempt any provision of a State constitution or State statute that 
prohibits or restricts the expenditure of State funds in or by 
religious organizations.

SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR THEIR 
              GRANDCHILDREN.

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

SEC. 106. REPORT ON DATA PROCESSING.

    (a) In General.--Within 6 months after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall prepare and 
submit to the Congress a report on--
            (1) the status of the automated data processing systems 
        operated by the States to assist management in the 
        administration of State programs under part A of title IV of 
        the Social Security Act (whether in effect before or after 
        October 1, 1995); and
            (2) what would be required to establish a system capable 
        of--
                    (A) tracking participants in public programs over 
                time; and
                    (B) checking case records of the States to 
                determine whether individuals are participating in 
                public programs of 2 or more States.
    (b) Preferred Contents.--The report required by subsection (a) 
should include--
            (1) a plan for building on the automated data processing 
        systems of the States to establish a system with the 
        capabilities described in subsection (a)(2); and
            (2) an estimate of the amount of time required to establish 
        such a system and of the cost of establishing such a system.

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

    (a) Study.--The Secretary shall, in cooperation with the States, 
study and analyze outcomes measures for evaluating the success of the 
States in moving individuals out of the welfare system through 
employment as an alternative to the minimum participation rates 
described in section 407 of the Social Security Act. The study shall 
include a determination as to whether such alternative outcomes 
measures should be applied on a national or a State-by-State basis and 
a preliminary assessment of the effects of section 409(a)(5)(C) of such 
Act.
    (b) Report.--Not later than September 30, 1998, the Secretary shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report containing the 
findings of the study required by subsection (a).

SEC. 108. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
        as so redesignated by section 321(a)(9)(B) of the Social 
        Security Independence and Program Improvements Act of 1994, is 
        amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
        inserting ``under a State program funded under'' before ``part 
        A of title IV''.
    (b) 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 ``under section 402(a)(26) or'' and 
                inserting ``pursuant to section 408(a)(4) or under 
                section''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
        amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
        first sentence by striking ``aid under the State plan approved 
        under part A'' and inserting ``assistance under the State 
        program funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
        amended by striking ``1115(c)'' and inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved under part A or E'' and 
        inserting ``assistance is being provided under the State 
        program funded under part A''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter following clause (iii) by striking ``aid 
        was being paid under the State's plan approved under part A or 
        E'' and inserting ``assistance was being provided under the 
        State program funded under part A''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
        the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child'' and 
                inserting ``with respect to whom assistance is being 
                provided under the State program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``with the State in establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)'' and inserting ``pursuant 
        to section 408(a)(4)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
        striking ``aid under part A of this title'' and inserting 
        ``assistance under a State program funded under part A''.
            (11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended--
                    (A) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 408(a)(4)''; and
                    (B) by striking ``; except that this paragraph 
                shall not apply to such payments for any month 
                following the first month in which the amount collected 
                is sufficient to make such family ineligible for 
                assistance under the State plan approved under part 
                A;'' and inserting a comma.
            (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by 
        striking ``aid under a State plan approved'' and inserting 
        ``assistance under a State program funded''.
            (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by 
        striking ``under section 402(a)(26)''.
            (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``402(a)(26)'' and inserting ``408(a)(4)''.
            (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans approved'' and 
                inserting ``assistance under State programs funded''; 
                and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''.
    (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 
                March 1, 1996)'' 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 nor 
        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) Repeal of Part F of Title IV.--Part F of title IV (42 U.S.C. 
681-687) is repealed.
    (f) 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''.
    (g) Amendments to Title XI.--
            (1) Section 1108 (42 U.S.C. 1308) is amended--
                    (A) by redesignating subsection (c) as subsection 
                (g);
                    (B) by striking all that precedes subsection (c) 
                and inserting the following:

``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, 
              GUAM, AND AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.

    ``(a) Limitation on Total Payments to Each Territory.--
Notwithstanding any other provision of this Act, the total amount 
certified by the Secretary of Health and Human Services under titles I, 
X, XIV, and XVI, under parts A and B of title IV, and under subsection 
(b) of this section, for payment to any territory for a fiscal year 
shall not exceed the ceiling amount for the territory for the fiscal 
year.
    ``(b) Entitlement to Matching Grant.--
            ``(1) In general.--Each territory shall be entitled to 
        receive from the Secretary for each fiscal year a grant in an 
        amount equal to 75 percent of the amount (if any) by which--
                    ``(A) the total expenditures of the territory 
                during the fiscal year under the territory programs 
                funded under parts A and B of title IV; exceeds
                    ``(B) the sum of--
                            ``(i) the total amount required to be paid 
                        to the territory (other than with respect to 
                        child care) under former section 403 (as in 
                        effect on September 30, 1995) for fiscal year 
                        1995, which shall be determined by applying 
                        subparagraphs (C) and (D) of section 403(a)(1) 
                        to the territory;
                            ``(ii) the total amount required to be paid 
                        to the territory under former section 434 (as 
                        so in effect) for fiscal year 1995; and
                            ``(iii) the total amount expended by the 
                        territory during fiscal year 1995 pursuant to 
                        parts A, B, and F of title IV (as so in 
                        effect), other than for child care.
            ``(2) Use of grant.--Any territory to which a grant is made 
        under paragraph (1) may expend the amount under any program 
        operated or funded under any provision of law specified in 
        subsection (a).
    ``(c) Definitions.--As used in this section:
            ``(1) Territory.--The term `territory' means Puerto Rico, 
        the Virgin Islands, Guam, and American Samoa.
            ``(2) Ceiling amount.--The term `ceiling amount' means, 
        with respect to a territory and a fiscal year, the mandatory 
        ceiling amount with respect to the territory plus the 
discretionary ceiling amount with respect to the territory, reduced for 
the fiscal year in accordance with subsection (f).
            ``(3) Mandatory ceiling amount.--The term `mandatory 
        ceiling amount' means--
                    ``(A) $105,538,000 with respect to Puerto Rico;
                    ``(B) $4,902,000 with respect to Guam;
                    ``(C) $3,742,000 with respect to the Virgin 
                Islands; and
                    ``(D) $1,122,000 with respect to American Samoa.
            ``(4) Discretionary ceiling amount.--The term 
        `discretionary ceiling amount' means, with respect to a 
        territory and a fiscal year, the total amount appropriated 
        pursuant to subsection (d)(3) for the fiscal year for payment 
        to the territory.
            ``(5) Total amount expended by the territory.--The term 
        `total amount expended by the territory'--
                    ``(A) does not include expenditures during the 
                fiscal year from amounts made available by the Federal 
                Government; and
                    ``(B) when used with respect to fiscal year 1995, 
                also does not include--
                            ``(i) expenditures during fiscal year 1995 
                        under subsection (g) or (i) of section 402 (as 
                        in effect on September 30, 1995); or
                            ``(ii) any expenditures during fiscal year 
                        1995 for which the territory (but for section 
                        1108, as in effect on September 30, 1995) would 
                        have received reimbursement from the Federal 
                        Government.
    ``(d) Discretionary Grants.--
            ``(1) In general.--The Secretary shall make a grant to each 
        territory for any fiscal year in the amount appropriated 
        pursuant to paragraph (3) for the fiscal year for payment to 
        the territory.
            ``(2) Use of grant.--Any territory to which a grant is made 
        under paragraph (1) may expend the amount under any program 
        operated or funded under any provision of law specified in 
        subsection (a).
            ``(3) Limitation on authorization of appropriations.--For 
        grants under paragraph (1), there are authorized to be 
        appropriated to the Secretary for each fiscal year--
                    ``(A) $7,951,000 for payment to Puerto Rico;
                    ``(B) $345,000 for payment to Guam;
                    ``(C) $275,000 for payment to the Virgin Islands; 
                and
                    ``(D) $190,000 for payment to American Samoa.
    ``(e) Authority To Transfer Funds Among Programs.--Notwithstanding 
any other provision of this Act, any territory to which an amount is 
paid under any provision of law specified in subsection (a) may use 
part or all of the amount to carry out any program operated by the 
territory, or funded, under any other such provision of law.
    ``(f) Maintenance of Effort.--The ceiling amount with respect to a 
territory shall be reduced for a fiscal year by an amount equal to the 
amount (if any) by which--
            ``(1) the total amount expended by the territory under all 
        programs of the territory operated pursuant to the provisions 
        of law specified in subsection (a) (as such provisions were in 
        effect for fiscal year 1995) for fiscal year 1995; exceeds
            ``(2) the total amount expended by the territory under all 
        programs of the territory that are funded under the provisions 
        of law specified in subsection (a) for the fiscal year that 
        immediately precedes the fiscal year referred to in the matter 
        preceding paragraph (1).''; and
                    (C) by striking subsections (d) and (e).
            (2) Section 1109 (42 U.S.C. 1309) is amended by striking 
        ``or part A of title IV,''.
            (3) Section 1115 (42 U.S.C. 1315) is amended--
                    (A) in subsection (a)(2)--
                            (i) by inserting ``(A)'' after ``(2)'';
                            (ii) by striking ``403,'';
                            (iii) by striking the period at the end and 
                        inserting ``, and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(B) costs of such project which would not otherwise be a 
        permissible use of funds under part A of title IV and which are 
        not included as part of the costs of projects under section 
        1110, shall to the extent and for the period prescribed by the 
        Secretary, be regarded as a permissible use of funds under such 
        part.''; and
                    (B) in subsection (c)(3), by striking ``under the 
                program of aid to families with dependent children'' 
                and inserting ``part A of such title''.
            (4) Section 1116 (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,''.
            (5) Section 1118 (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``, and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (6) Section 1119 (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a),''.
            (7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
        striking ``or part A of title IV,''.
            (8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (9) Section 1137 (42 U.S.C. 1320b-7) is amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
    (h) 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''.
    (i) 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''.
    (j) 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,''.
    (k) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j)) 
is amended by striking ``1108(c)'' and inserting ``1108(g)''.

SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
              RELATED PROVISIONS.

    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is 
amended--
            (1) in the second sentence of subsection (a), by striking 
        ``plan approved'' and all that follows through ``title IV of 
        the Social Security Act'' and inserting ``program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.)'';
            (2) in subsection (d)--
                    (A) in paragraph (5), by striking ``assistance to 
                families with dependent children'' and inserting 
                ``assistance under a State program funded''; and
                    (B) by striking paragraph (13) and redesignating 
                paragraphs (14), (15), and (16) as paragraphs (13), 
                (14), and (15), respectively;
            (3) in subsection (j), by striking ``plan approved under 
        part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``program funded under part A of title IV of the Act 
        (42 U.S.C. 601 et seq.)''; and
            (4) by striking subsection (m).
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State plan 
        approved'' and inserting ``the State program funded''; and
            (2) in subsection (e)(6), by striking ``aid to families 
        with dependent children'' and inserting ``benefits under a 
        State program funded''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended 
by striking ``State plans under the Aid to Families with Dependent 
Children Program under'' and inserting ``State programs funded under 
part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), by 
        striking ``to aid to families with dependent children under 
        part A of title IV of the Social Security Act'' and inserting 
        ``or are receiving assistance under a State program funded 
        under part A of title IV of the Social Security Act (42 U.S.C. 
        601 et seq.)''; and
            (2) in subsection (b)(3), by adding at the end the 
        following new subparagraph:
             ``(I) The Secretary may not grant a waiver under this 
        paragraph on or after October 1, 1995. Any reference in this 
        paragraph to a provision of title IV of the Social Security Act 
        shall be deemed to be a reference to such provision as in 
        effect on September 30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking ``operating--'' and 
        all that follows through ``(ii) any other'' and inserting 
        ``operating any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1) A household'' and 
                        inserting ``(b) A household''; and
                            (ii) in subparagraph (B), by striking 
                        ``training program'' and inserting 
                        ``activity'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) through (F) 
                as paragraphs (1) through (6), respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act 
of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking 
``the program for aid to families with dependent children'' and 
inserting ``the State program funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C)(ii)(II)--
                            (i) by striking ``program for aid to 
                        families with dependent children'' and 
                        inserting ``State program funded''; and
                            (ii) by inserting before the period at the 
                        end the following: ``that the Secretary 
                        determines complies with standards established 
                        by the Secretary that ensure that the standards 
                        under the State program are comparable to or 
                        more restrictive than those in effect on March 
                        1, 1996''; 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 March 1, 1996''; 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 March 1, 1996''; and
            (2) in subsection (d)(2)(C)--
                    (A) by striking ``program for aid to families with 
                dependent children'' and inserting ``State program 
                funded''; and
                    (B) by inserting before the period at the end the 
                following: ``that the Secretary determines complies 
                with standards established by the Secretary that ensure 
                that the standards under the State program are 
                comparable to or more restrictive than those in effect 
                on June 1, 1995''.
    (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
            (1) by striking ``program for aid to families with 
        dependent children established'' and inserting ``State program 
        funded''; and
            (2) by inserting before the semicolon the following: ``that 
        the Secretary determines complies with standards established by 
        the Secretary that ensure that the standards under the State 
        program are comparable to or more restrictive than those in 
        effect on June 1, 1995''.

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) 
is amended to read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)), or
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is repealed.
    (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is repealed.
    (f) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is repealed.
    (g) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved'' and inserting 
        ``assistance under a State program funded''; and
            (2) in subsection (c), by striking ``aid to families with 
        dependent children in the State under a State plan approved'' 
        and inserting ``assistance in the State under a State program 
        funded''.
    (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
        striking ``(Aid to Families with Dependent Children)''; and
            (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by 
        striking ``aid to families with dependent children under a 
        State plan approved'' and inserting ``assistance under a State 
        program funded''.
    (i) The Carl D. Perkins Vocational and Applied Technology Education 
Act (20 U.S.C. 2301 et seq.) is amended--
            (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 
        2341(d)(3)(A)(ii)), by striking ``the program for aid to 
        dependent children'' and inserting ``the State program 
        funded'';
            (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
        striking ``the program for aid to families with dependent 
        children'' and inserting ``the State program funded''; and
            (3) in section 521(14)(B)(iii) (20 U.S.C. 
        2471(14)(B)(iii)), by striking ``the program for aid to 
        families with dependent children'' and inserting ``the State 
        program funded''.
    (j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2701 et seq.) is amended--
            (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
        striking ``Aid to Families with Dependent Children Program'' 
        and inserting ``State program funded under part A of title IV 
        of the Social Security Act'';
            (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
        striking ``the program of aid to families with dependent 
        children 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 6103(l)(10) (26 U.S.C. 6103(l)(10))--
                    (A) by striking ``(c) or (d)'' each place it 
                appears and inserting ``(c), (d), or (e)''; and
                    (B) by adding at the end of subparagraph (B) the 
                following new sentence: ``Any return information 
                disclosed with respect to section 6402(e) shall only be 
                disclosed to officers and employees of the State agency 
                requesting such information.'';
            (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the 
        matter preceding subparagraph (A)--
                    (A) by striking ``(5), (10)'' and inserting 
                ``(5)''; and
                    (B) by striking ``(9), or (12)'' and inserting 
                ``(9), (10), or (12)'';
            (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
        by striking ``(relating to aid to families with dependent 
        children)'';
            (7) in section 6402 (26 U.S.C. 6402)--
                    (A) in subsection (a), by striking ``(c) and (d)'' 
                and inserting ``(c), (d), and (e)'';
                    (B) by redesignating subsections (e) through (i) as 
                subsections (f) through (j), respectively; and
                    (C) by inserting after subsection (d) the 
                following:
    ``(e) Collection of Overpayments Under Title IV-A of the Social 
Security Act.--The amount of any overpayment to be refunded to the 
person making the overpayment shall be reduced (after reductions 
pursuant to subsections (c) and (d), but before a credit against future 
liability for an internal revenue tax) in accordance with section 
405(e) of the Social Security Act (concerning recovery of overpayments 
to individuals under State plans approved under part A of title IV of 
such Act).''; and
            (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under a State program funded under part 
        A of title IV of the Social Security Act''.
    (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is 
amended by striking ``State plan approved under part A of title IV'' 
and inserting ``State program funded under part A of title IV''.
    (n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
            (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by 
        striking ``(42 U.S.C. 601 et seq.)'';
            (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
        striking ``State aid to families with dependent children 
        records,'' and inserting ``records collected under the State 
        program funded under part A of title IV of the Social Security 
        Act,'';
            (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
                    (A) by striking ``the JOBS program'' and inserting 
                ``the work activities required under title IV of the 
                Social Security Act''; and
                    (B) by striking the second sentence;
            (4) in section 123(c) (29 U.S.C. 1533(c))--
                    (A) in paragraph (1)(E), by repealing clause (vi); 
                and
                    (B) in paragraph (2)(D), by repealing clause (v);
            (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by 
        striking ``, including recipients under the JOBS program'';
            (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
        U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the JOBS 
        program)'' each place it appears;
            (7) in section 205(a) (29 U.S.C. 1605(a)), by striking 
        paragraph (4) and inserting the following:
            ``(4) the portions of title IV of the Social Security Act 
        relating to work activities;'';
            (8) in section 253 (29 U.S.C. 1632)--
                    (A) in subsection (b)(2), by repealing subparagraph 
                (C); and
                    (B) in paragraphs (1)(B) and (2)(B) of subsection 
                (c), by striking ``the JOBS program or'' each place it 
                appears;
            (9) in section 264 (29 U.S.C. 1644)--
                    (A) in subparagraphs (A) and (B) of subsection 
                (b)(1), by striking ``(such as the JOBS program)'' each 
                place it appears; and
                    (B) in subparagraphs (A) and (B) of subsection 
                (d)(3), by striking ``and the JOBS program'' each place 
                it appears;
            (10) in section 265(b) (29 U.S.C. 1645(b)), by striking 
        paragraph (6) and inserting the following:
            ``(6) the portion of title IV of the Social Security Act 
        relating to work activities;'';
            (11) in the second sentence of section 429(e) (29 U.S.C. 
        1699(e)), by striking ``and shall be in an amount that does not 
        exceed the maximum amount that may be provided by the State 
        pursuant to section 402(g)(1)(C) of the Social Security Act (42 
        U.S.C. 602(g)(1)(C))'';
            (12) in section 454(c) (29 U.S.C. 1734(c)), by striking 
        ``JOBS and'';
            (13) in section 455(b) (29 U.S.C. 1735(b)), by striking 
        ``the JOBS program,'';
            (14) in section 501(1) (29 U.S.C. 1791(1)), by striking 
        ``aid to families with dependent children under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.)'' and 
        inserting ``assistance under the State program funded under 
        part A of title IV of the Social Security Act'';
            (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded'';
            (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under the State program funded''; and
            (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
                    (A) in clause (v), by striking the semicolon and 
                inserting ``; and''; and
                    (B) by striking clause (vi).
    (o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is 
amended to read as follows:
                            ``(iv) assistance under a State program 
                        funded under part A of title IV of the Social 
                        Security Act''.
    (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read 
as follows:
                            ``(i) assistance under the State program 
                        funded under part A of title IV of the Social 
                        Security Act;''.
    (q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 
602 note) is amended--
            (1) by striking ``(A)''; and
            (2) by striking subparagraphs (B) and (C).
    (r) The Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900 et seq.) is amended--
            (1) in the first section 255(h) (2 U.S.C. 905(h)), by 
        striking ``Aid to families with dependent children (75-0412-0-
        1-609);'' and inserting ``Block grants to States for temporary 
        assistance for needy families;''; and
            (2) in section 256 (2 U.S.C. 906)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsection (l) as subsection 
                (k).
    (s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
amended--
            (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
        under a State plan approved under'' each place it appears and 
        inserting ``assistance under a State program funded under'';
            (2) in section 245A(h) (8 U.S.C. 1255a(h))--
                    (A) in paragraph (1)(A)(i), by striking ``program 
                of aid to families with dependent children'' and 
                inserting ``State program of assistance''; and
                    (B) in paragraph (2)(B), by striking ``aid to 
                families with dependent children'' and inserting 
                ``assistance under a State program funded under part A 
                of title IV of the Social Security Act''; and
            (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
        ``State plan approved'' and inserting ``State program funded''.
    (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 
9835(a)(4)(B)(i)) is amended by striking ``program of aid to families 
with dependent children under a State plan approved'' and inserting 
``State program of assistance funded''.
    (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed.
    (v) Subparagraph (E) of section 213(d)(6) of the School-To-Work 
Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as 
follows:
                    ``(E) part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.) relating to work activities;''.
    (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, 
is amended by striking ``section 464 or 1137 of the Social Security 
Act'' and inserting ``section 404(e), 464, or 1137 of the Social 
Security Act.''.

SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL 
              SECURITY CARD REQUIRED.

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

SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

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

SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN LOW-INCOME 
              INDIVIDUALS PROGRAM.

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

SEC. 114. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Health and Human Services and the Commissioner of 
Social Security, in consultation, as appropriate, with the heads of 
other Federal agencies, shall submit to the appropriate committees of 
Congress a legislative proposal proposing such technical and conforming 
amendments as are necessary to bring the law into conformity with the 
policy embodied in this title.

SEC. 115. APPLICATION OF CURRENT AFDC STANDARDS UNDER MEDICAID PROGRAM.

    (a) In General.--Title XIX is amended--
            (1) by redesignating section 1931 as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

            ``application of afdc standards and methodology

    ``Sec. 1931. (a)(1) Subject to the succeeding provisions of this 
section, with respect to a State 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, or a State plan under such part (or a 
provision of such a plan), including standards and methodologies for 
determining income and resources under such part or plan, shall be 
considered a reference to such a provision or plan as in effect as of 
July 1, 1996, with respect to the State.
    ``(2) In applying section 1925(a)(1), the reference to `section 
402(a)(8)(B)(ii)(II)' is deemed a reference to a corresponding earning 
disregard rule (if any) established under a State program funded under 
part A of title IV (as in effect on and after October 1, 1996).
    ``(3) The provisions of section 406(h) (as in effect on July 1, 
1996) shall apply, in relation to this title, with respect to 
individuals who receive assistance under a State program funded under 
part A of title IV (as in effect on and after October 1, 1996) and are 
eligible for medical assistance under this title or who are described 
in subsection (b)(1) in the same manner as they apply before such date 
with respect to individuals who become ineligible for aid to families 
with dependent children as a result (wholly or partly) of the 
collection or increased collection of child or spousal support under 
part D of title IV.
    ``(4) With respect to the reference in section 1902(a)(5) to a 
State plan approved under part A of title IV, a State may treat such 
reference as a reference either to a State program funded under such 
part (as in effect on and after October 1, 1996) or to the State plan 
under this title.
    ``(b)(1) For purposes of this title, subject to paragraph (2), in 
determining eligibility for medical assistance, an individual shall be 
deemed to be receiving aid or assistance under a State plan approved 
under part A of title IV (and shall be treated as meeting the income 
and resource standards under such part) only if the individual meets--
            ``(A) the income and resource standards under such plan, 
        and
            ``(B) the eligibility requirements of such plan under 
        subsections (a) through (c) of section 406 and section 407(a),
as in effect as of July 1, 1996. Subject to paragraph (2)(B), the 
income and resource methodologies under such plan as of such date shall 
be used in the determination of whether any individual meets income and 
resource standards under such plan.
    ``(2) For purposes of applying this section, a State may--
            ``(A) lower its income standards applicable with respect to 
        part A of title IV, but not below the income standards 
        applicable under its State plan under such part on May 1, 1988; 
        and
            ``(B) use income and resource standards or methodologies 
        that are less restrictive than the standards or methodologies 
        used under the State plan under such part as of July 1, 1996.
    ``(3) For purposes of applying this section, a State may, subject 
to paragraph (4), treat all individuals (or reasonable categories of 
individuals) receiving assistance under the State program funded under 
part A of title IV (as in effect on or after October 1, 1996) as 
individuals who are receiving aid or assistance under a State plan 
approved under part A of title IV (and thereby eligible for medical 
assistance under this title).
    ``(4) For purposes of section 1925, an individual who is receiving 
assistance under the State program funded under part A of title IV (as 
in effect on or after October 1, 1996) and is eligible for medical 
assistance under this title shall be treated as an individual receiving 
aid or assistance pursuant to a plan of the State approved under part A 
of title IV (as in effect as of July 1, 1996) (and thereby eligible for 
continuation of medical assistance under such section).
    ``(c) In the case of a waiver of a provision of part A of title IV 
in effect with respect to a State as of July 1, 1996, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may (but need not) continue to be applied, at the 
option of the State, in relation to this title after the date the 
waiver would otherwise expire. If a State elects not to continue to 
apply such a waiver, then, after the date of the expiration of the 
waiver, subsection (a) shall be applied as if any provisions so waived 
had not been waived.
    ``(d) Nothing in this section, or part A of title IV, shall be 
construed as preventing a State from providing for the same application 
form for assistance under a State program funded under part A of title 
IV (on or after October 1, 1996) and for medical assistance under this 
title.
    ``(e) The provisions of this section shall apply notwithstanding 
any other provision of this title.''.
    (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 administration and determinations of 
        eligibility with respect to individuals who are (or seek to be) 
        eligible for medical assistance based on the application of 
        section 1931.''.
    (c) Elimination of Requirement of Minimum AFDC Payment Levels.--(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).

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 1996.
    (b) Transition Rules.--
            (1) State option to accelerate effective date.--
                    (A) In general.--If, within 3 months after the date 
                of the enactment of this Act, the Secretary of Health 
                and Human Services receives from a State, a plan 
                described in section 402(a) of the Social Security Act 
                (as added by the amendment made by section 103 of this 
                Act), this title and the amendments made by this title 
                (except section 409(a)(5) of the Social Security Act, 
                as added by the amendment made by such section 103) 
                shall also apply with respect to the State during the 
                period that begins on the date the Secretary approves 
                the plan and ends on September 30, 1996, except that 
                the State shall be considered an eligible State for 
                fiscal year 1996 for purposes of part A of title IV of 
                the Social Security Act (as in effect pursuant to the 
                amendment made by such section 103).
                    (B) Limitations on federal obligations.--
                            (i) Under afdc program.--If the Secretary 
                        receives from a State the plan referred to in 
                        subparagraph (A), the total obligations of the 
                        Federal Government to the State under part A of 
                        title IV of the Social Security Act (as in 
                        effect on September 30, 1995) with respect to 
                        expenditures by the State after the date of the 
                        enactment of this Act shall not exceed an 
                        amount equal to--
                                    (I) the State family assistance 
                                grant (as defined in section 
                                403(a)(1)(B) of the Social Security Act 
                                (as in effect pursuant to the amendment 
                                made by section 103 of this Act)); 
                                minus
                                    (II) any obligations of the Federal 
                                Government to the State under part A of 
                                title IV of the Social Security Act (as 
                                in effect on September 30, 1995) with 
                                respect to expenditures by the State 
                                during the period that begins on 
                                October 1, 1995, and ends on the day 
                                before the date of the enactment of 
                                this Act.
                            (ii) Under temporary family assistance 
                        program.--Notwithstanding section 403(a)(1) of 
                        the Social Security Act (as in effect pursuant 
                        to the amendment made by section 103 of this 
                        Act), the total obligations of the Federal 
                        Government to a State under such section 
                        403(a)(1) for fiscal year 1996 after the 
                        termination of the State AFDC program shall not 
                        exceed an amount equal to--
                                    (I) the amount described in clause 
                                (i)(I) of this subparagraph; minus
                                    (II) any obligations of the Federal 
                                Government to the State under part A of 
                                title IV of the Social Security Act (as 
                                in effect on September 30, 1995) with 
                                respect to expenditures by the State on 
                                or after October 1, 1995.
                            (iii) Child care obligations excluded in 
                        determining federal afdc obligations.--As used 
                        in this subparagraph, the term ``obligations of 
                        the Federal Government to the State under part 
                        A of title IV of the Social Security Act'' does 
                        not include any obligation of the Federal 
                        Government with respect to child care 
                        expenditures by the State.
                    (C) Submission of state plan for fiscal year 1996 
                deemed acceptance of grant limitations and formula.--
                The submission of a plan by a State pursuant to 
                subparagraph (A) is deemed to constitute the State's 
                acceptance of the grant reductions under subparagraph 
                (B)(ii) (including the formula for computing the amount 
                of the reduction).
                    (D) Definitions.--As used in this paragraph:
                            (i) State afdc program.--The term ``State 
                        AFDC program'' means the State program under 
                        parts A and F of title IV of the Social 
                        Security Act (as in effect on September 30, 
                        1995).
                            (ii) State.--The term ``State'' means the 
                        50 States and the District of Columbia.
            (2) Claims, actions, and proceedings.--The amendments made 
        by this title shall not apply with respect to--
                    (A) powers, duties, functions, rights, claims, 
                penalties, or obligations applicable to aid, 
                assistance, or services provided before the effective 
                date of this title under the provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized before such 
                date to be commenced, under such provisions.
            (3) Closing out account for those programs terminated or 
        substantially modified by this title.--In closing out accounts, 
        Federal and State officials may use scientifically acceptable 
        statistical sampling techniques. Claims made with respect to 
        State expenditures under a State plan approved under part A of 
        title IV of the Social Security Act (as in effect before the 
        effective date of this Act) with respect to assistance or 
        services provided on or before September 30, 1995, shall be 
        treated as claims with respect to expenditures during fiscal 
        year 1995 for purposes of reimbursement even if payment was 
        made by a State on or after October 1, 1995. Each State shall 
        complete the filing of all claims under the State plan (as so 
        in effect) no later than September 30, 1997. The head of each 
        Federal department shall--
                    (A) use the single audit procedure to review and 
                resolve any claims in connection with the close out of 
                programs under such State plans; and
                    (B) reimburse States for any payments made for 
                assistance or services provided during a prior fiscal 
                year from funds for fiscal year 1995, rather than from 
                funds authorized by this title.
            (4) Continuance in office of assistant secretary for family 
        support.--The individual who, on the day before the effective 
        date of this title, is serving as Assistant Secretary for 
        Family Support within the Department of Health and Human 
        Services shall, until a successor is appointed to such 
        position--
                    (A) continue to serve in such position; and
                    (B) except as otherwise provided by law--
                            (i) continue to perform the functions of 
                        the Assistant Secretary for Family Support 
                        under section 417 of the Social Security Act 
                        (as in effect before such effective date); and
                            (ii) have the powers and duties of the 
                        Assistant Secretary for Family Support under 
                        section 416 of the Social Security Act (as in 
                        effect pursuant to the amendment made by 
                        section 103 of this Act).

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

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

                  Subtitle A--Eligibility Restrictions

SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND TO 
              HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO 
              OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.

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

SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND 
              PAROLE VIOLATORS.

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

SEC. 203. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI DISABILITY 
              BENEFITS.

    Section 1631 (42 U.S.C. 1383) is amended by adding at the end the 
following new subsection:
    ``(o)(1) Notwithstanding any other provision of law, if the 
Commissioner of Social Security determines that an individual, who is 
18 years of age or older, is eligible to receive benefits pursuant to 
section 1614(a)(3), the Commissioner shall, at the time of the 
determination, either exempt the individual from an eligibility review 
or establish a schedule for reviewing the individual's continuing 
eligibility in accordance with paragraph (2).
    ``(2)(A) The Commissioner shall establish a periodic review with 
respect to the continuing eligibility of an individual to receive 
benefits, unless the individual is exempt from review under 
subparagraph (C) or is subject to a scheduled review under subparagraph 
(B). A periodic review under this subparagraph shall be initiated by 
the Commissioner not later than 30 months after the date a 
determination is made that the individual is eligible for benefits and 
every 30 months thereafter, unless a waiver is granted under section 
221(i)(2). However, the Commissioner shall not postpone the initiation 
of a periodic review for more than 12 months in any case in which such 
waiver has been granted unless exigent circumstances require such 
postponement.
    ``(B)(i) In the case of an individual, other than an individual who 
is exempt from review under subparagraph (C) or with respect to whom 
subparagraph (A) applies, the Commissioner shall schedule a review 
regarding the individual's continuing eligibility to receive benefits 
at any time the Commissioner determines, based on the evidence 
available, that there is a significant possibility that the individual 
may cease to be entitled to such benefits.
    ``(ii) The Commissioner may establish classifications of 
individuals for whom a review of continuing eligibility is scheduled 
based on the impairments that are the basis for such individuals' 
eligibility for benefits. A review of an individual covered by a 
classification shall be scheduled in accordance with the applicable 
classification, unless the Commissioner determines that applying such 
schedule is inconsistent with the purpose of this Act or the integrity 
of the supplemental security income program.
    ``(C)(i) The Commissioner may exempt an individual from review 
under this subsection, if the individual's eligibility for benefits is 
based on a condition that, as a practical matter, has no substantial 
likelihood of improving to a point where the individual will be able to 
perform substantial gainful activity.
    ``(ii) The Commissioner may establish classifications of 
individuals who are exempt from review under this subsection based on 
the impairments that are the basis for such individuals' eligibility 
for benefits. Notwithstanding any such classification, the Commissioner 
may, at the time of determining an individual's eligibility, schedule a 
review of such individual's continuing eligibility if the Commissioner 
determines that a review is necessary to preserve the integrity of the 
supplemental security income program.
    ``(3) The Commissioner may revise a determination made under 
paragraph (1) and schedule a review under paragraph (2)(B), if the 
Commissioner obtains credible evidence that an individual may no longer 
be eligible for benefits or the Commissioner determines that a review 
is necessary to maintain the integrity of the supplemental security 
income program. Information obtained under section 1137 may be used as 
the basis to schedule a review.
    ``(4)(A) The requirements of sections 1614(a)(4) and 1633 shall 
apply to reviews conducted under this subsection.
    ``(B) Such reviews may be conducted by the applicable State agency 
or the Commissioner, whichever is appropriate.
    ``(5) Not later than 3 months after the date of the enactment of 
this subsection, the Commissioner shall establish a schedule for 
reviewing the continuing eligibility of each individual who is 
receiving benefits pursuant to section 1614(a)(3) on such date of 
enactment and who has attained 18 years of age, unless such individual 
is exempt under paragraph (2)(C). Such review shall be scheduled under 
the procedures prescribed by or under paragraph (2), except that the 
reviews shall be scheduled so that the eligibility of \1/3\ of all such 
nonexempt individuals is reviewed within 1 year after such date of 
enactment, the eligibility of \1/3\ of such nonexempt individuals is 
reviewed within 1 year after such date of enactment, and all remaining 
nonexempt individuals who continue receiving benefits shall have their 
eligibility reviewed within 3 years after such date of enactment. Each 
individual determined eligible to continue receiving benefits in a 
review scheduled under this paragraph shall, at the time of the 
determination, be subject to paragraph (2).''.

SEC. 204. TREATMENT OF PRISONERS.

    (a) Implementation of Prohibition Against Payment of Benefits to 
Prisoners.--
            (1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)) 
        is amended by adding at the end the following new subparagraph:
    ``(I)(i) The Commissioner shall enter into a contract, with any 
interested State or local institution referred to in subparagraph (A), 
under which--
            ``(I) the institution shall provide to the Commissioner, on 
        a monthly basis, the names, social security account numbers, 
        dates of birth, and such other identifying information 
        concerning the inmates of the institution as the Commissioner 
        may require for the purpose of carrying out paragraph (1); and
            ``(II) the Commissioner shall pay to any such institution, 
        with respect to each inmate of the institution who is eligible 
        for a benefit under this title for the month preceding the 
        first month throughout which such inmate is in such institution 
        and becomes ineligible for such benefit (or becomes eligible 
        only for a benefit payable at a reduced rate) as a result of 
        the application of this paragraph, an amount not to exceed $400 
        if the institution furnishes the information described in 
        subclause (I) to the Commissioner within 30 days after such 
        individual becomes an inmate of such institution, or an amount 
        not to exceed $200 if the institution furnishes such 
        information after 30 days after such date but within 90 days 
        after such date.
    ``(ii) The provisions of section 552a of title 5, United States 
Code, shall not apply to any contract entered into under clause (i) or 
to information exchanged pursuant to such contract.''.
            (2) Conforming OASDI amendments.--Section 202(x)(3) (42 
        U.S.C. 402(x)(3)) is amended--
                    (A) by inserting ``(A)'' after ``(3)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B)(i) The Commissioner shall enter into a contract, with any 
interested State or local institution described in clause (i) or (ii) 
of paragraph (1)(A) the primary purpose of which is to confine 
individuals as described in paragraph (1)(A), under which--
            ``(I) the institution shall provide to the Commissioner, on 
        a monthly basis, the names, social security account numbers, 
        dates of birth, and such other identifying information 
        concerning the individuals confined in the institution as the 
        Commissioner may require for the purpose of carrying out 
        paragraph (1); and
            ``(II) the Commissioner shall pay to any such institution, 
        with respect to each individual who is entitled to a benefit 
        under this title for the month preceding the first month 
        throughout which such individual is confined in such 
        institution as described in paragraph (1)(A), an amount not to 
        exceed $400 if the institution furnishes the information 
        described in subclause (I) to the Commissioner within 30 days 
        after the date such individual's confinement in such 
institution begins, or an amount not to exceed $200 if the institution 
furnishes such information after 30 days after such date but within 90 
days after such date.
    ``(ii) The provisions of section 552a of title 5, United States 
Code, shall not apply to any contract entered into under clause (i) or 
to information exchanged pursuant to such contract.''.
    (b) Denial of SSI Benefits for 10 Years to a Person Found To Have 
Fraudulently Obtained SSI Benefits While in Prison.--
            (1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)), 
        as amended by subsection (a)(1), is amended by adding at the 
        end the following new subparagraph:
    ``(J) In any case in which the Commissioner of Social Security 
finds that a person has made a fraudulent statement or representation 
in order to obtain or to continue to receive benefits under this title 
while being an inmate in a penal institution, such person shall not be 
considered an eligible individual or eligible spouse for any month 
ending during the 10-year period beginning on the date on which such 
person ceases being such an inmate.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to statements or representations made 
        on or after the date of the enactment of this Act.
    (c) Elimination of OASDI Requirement That Confinement Stem From 
Crime Punishable by Imprisonment for More Than 1 Year.--
            (1) In general.--Section 202(x)(1)(A) (42 U.S.C. 
        402(x)(1)(A)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``during'' and inserting ``throughout'';
                    (B) in clause (i), by striking ``pursuant'' and all 
                that follows through ``imposed''; and
                    (C) in clause (ii)(I), by striking ``an offense 
                punishable by imprisonment for more than 1 year'' and 
                inserting ``a criminal offense''.
            (2) Effective date.--The amendments made by this subsection 
        shall be effective with respect to benefits payable for months 
        beginning more than 180 days after the date of the enactment of 
        this Act.
    (d) Study of Other Potential Improvements in the Collection of 
Information Respecting Public Inmates.--
            (1) Study.--The Commissioner of Social Security shall 
        conduct a study of the desirability, feasibility, and cost of--
                    (A) establishing a system under which Federal, 
                State, and local courts would furnish to the 
                Commissioner such information respecting court orders 
                by which individuals are confined in jails, prisons, or 
                other public penal, correctional, or medical facilities 
                as the Commissioner may require for the purpose of 
                carrying out sections 202(x) and 1611(e)(1) of the 
                Social Security Act; and
                    (B) requiring that State and local jails, prisons, 
                and other institutions that enter into contracts with 
                the Commissioner under section 202(x)(3)(B) or 
                1611(e)(1)(I) of the Social Security Act furnish the 
                information required by such contracts to the 
                Commissioner by means of an electronic or other 
                sophisticated data exchange system.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Commissioner of Social Security 
        shall submit a report on the results of the study conducted 
        pursuant to this subsection to the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives.

SEC. 205. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.

    (a) In General.--Subparagraphs (A) and (B) of section 1611(c)(7) 
(42 U.S.C. 1382(c)(7)) are amended to read as follows:
            ``(A) the first day of the month following the date such 
        application is filed, or
            ``(B) the first day of the month following the date such 
        individual becomes eligible for such benefits with respect to 
        such application.''.
    (b) Special Rule Relating to Emergency Advance Payments.--Section 
1631(a)(4)(A) (42 U.S.C. 1383(a)(4)(A)) is amended--
            (1) by inserting ``for the month following the date the 
        application is filed'' after ``is presumptively eligible for 
        such benefits''; and
            (2) by inserting ``, which shall be repaid through 
        proportionate reductions in such benefits over a period of not 
        more than 6 months'' before the semicolon.
    (c) Conforming Amendments.--
            (1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended by 
        striking ``at the time the application or request is filed'' 
        and inserting ``on the first day of the month following the 
        date the application or request is filed''.
            (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended 
        by inserting ``following the month'' after ``beginning with the 
        month''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to applications for benefits under title XVI of the 
        Social Security Act filed on or after the date of the enactment 
        of this Act, without regard to whether regulations have been 
        issued to implement such amendments.
            (2) Benefits under title xvi.--For purposes of this 
        subsection, the term ``benefits under title XVI of the Social 
        Security Act'' includes supplementary payments pursuant to an 
        agreement for Federal administration under section 1616(a) of 
        the Social Security Act, and payments pursuant to an agreement 
        entered into under section 212(b) of Public Law 93-66.

SEC. 206. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL SECURITY 
              INCOME BENEFITS.

    (a) In General.--Section 1631(a) (42 U.S.C. 1383) is amended by 
adding at the end the following new paragraph:
    ``(10)(A) If an individual is eligible for past-due monthly 
benefits under this title in an amount that (after any withholding for 
reimbursement to a State for interim assistance under subsection (g)) 
equals or exceeds the product of--
            ``(i) 12, and
            ``(ii) the maximum monthly benefit payable under this title 
        to an eligible individual (or, if appropriate, to an eligible 
        individual and eligible spouse),
then the payment of such past-due benefits (after any such 
reimbursement to a State) shall be made in installments as provided in 
subparagraph (B).
    ``(B)(i) The payment of past-due benefits subject to this 
subparagraph shall be made in not to exceed 3 installments that are 
made at 6-month intervals.
    ``(ii) Except as provided in clause (iii), the amount of each of 
the first and second installments may not exceed an amount equal to the 
product of clauses (i) and (ii) of subparagraph (A).
    ``(iii) In the case of an individual who has--
            ``(I) outstanding debt attributable to--
                    ``(aa) food,
                    ``(bb) clothing,
                    ``(cc) shelter, or
                    ``(dd) medically necessary services, supplies or 
                equipment, or medicine; or
            ``(II) current expenses or expenses anticipated in the near 
        term attributable to--
                    ``(aa) medically necessary services, supplies or 
                equipment, or medicine, or
                    ``(bb) the purchase of a home, and
such debt or expenses are not subject to reimbursement by a public 
assistance program, the Secretary under title XVIII, a State plan 
approved under title XV or XIX, or any private entity legally liable to 
provide payment pursuant to an insurance policy, pre-paid plan, or 
other arrangement, the limitation specified in clause (ii) may be 
exceeded by an amount equal to the total of such debt and expenses.
    ``(C) This paragraph shall not apply to any individual who, at the 
time of the Commissioner's determination that such individual is 
eligible for the payment of past-due monthly benefits under this 
title--
            ``(i) is afflicted with a medically determinable impairment 
        that is expected to result in death within 12 months; or
            ``(ii) is ineligible for benefits under this title and the 
        Commissioner determines that such individual is likely to 
        remain ineligible for the next 12 months.
    ``(D) For purposes of this paragraph, the term `benefits under this 
title' includes supplementary payments pursuant to an agreement for 
Federal administration under section 1616(a), and payments pursuant to 
an agreement entered into under section 212(b) of Public Law 93-66.''.
    (b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C. 
1383(a)(1)) is amended by inserting ``(subject to paragraph (10))'' 
immediately before ``in such installments''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section are 
        effective with respect to past-due benefits payable under title 
        XVI of the Social Security Act after the third month following 
        the month in which this Act is enacted.
            (2) Benefits payable under title xvi.--For purposes of this 
        subsection, the term ``benefits payable under title XVI of the 
        Social Security Act'' includes supplementary payments pursuant 
        to an agreement for Federal administration under section 
        1616(a) of the Social Security Act, and payments pursuant to an 
        agreement entered into under section 212(b) of Public Law 93-
        66.

SEC. 207. RECOVERY OF SUPPLEMENTAL SECURITY INCOME OVERPAYMENTS FROM 
              SOCIAL SECURITY BENEFITS.

    (a) In General.--Part A of title XI is amended by adding at the end 
the following new section:

      ``recovery of ssi overpayments from social security benefits

    ``Sec. 1146. (a) In General.--Whenever the Commissioner of Social 
Security determines that more than the correct amount of any payment 
has been made to any person under the supplemental security income 
program authorized by title XVI, and the Commissioner is unable to make 
proper adjustment or recovery of the amount so incorrectly paid as 
provided in section 1631(b), the Commissioner (notwithstanding section 
207) may recover the amount incorrectly paid by decreasing any amount 
which is payable under the Federal Old-Age and Survivors Insurance 
program or the Federal Disability Insurance program authorized by title 
II to that person or that person's estate.
    ``(b) No Effect on SSI Benefit Eligibility or Amount.--
Notwithstanding subsections (a) and (b) of section 1611, in any case in 
which the Commissioner takes action in accordance with subsection (a) 
to recover an overpayment from any person, neither that person, nor any 
individual whose eligibility or benefit amount is determined by 
considering any part of that person's income, shall, as a result of 
such action--
            ``(1) become eligible under the program of supplemental 
        security income benefits under title XVI, or
            ``(2) if such person or individual is already so eligible, 
        become eligible for increased benefits thereunder.
    ``(c) Program Under Title XVI.--For purposes of this section, the 
term `supplemental security income program authorized by title XVI' 
includes supplementary payments pursuant to an agreement for Federal 
administration under section 1616(a), and payments pursuant to an 
agreement entered into under section 212(b) of Public Law 93-66.''.
    (b) Conforming Amendments.--
            (1) Section 204 (42 U.S.C. 404) is amended by adding at the 
        end the following new subsection:
    ``(g) For payments which are adjusted or withheld to recover an 
overpayment of supplemental security income benefits paid under title 
XVI (including State supplementary payments which were paid under an 
agreement pursuant to section 1616(a) or section 212(b) of Public Law 
93-66), see section 1146.''.
            (2) Section 1631(b) is amended by adding at the end the 
        following new paragraph:
    ``(5) For the recovery of overpayments of benefits under this title 
from benefits payable under title II, see section 1146.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to 
overpayments outstanding on or after such date.

               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)) 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 (H) as 
        subparagraphs (D) through (I), 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 so redesignated by paragraph 
        (3) of this subsection, 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 the date of 
                redetermination with respect to the individual.
                    (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 so redesignated by 
section 211(a)(3) of this Act, 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 so redesignated by section 211(a)(3) of 
        this Act and as amended by subsection (a) of this section, 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 so 
redesignated by section 211(a)(3) of this Act and as amended by 
subsections (a) and (b) of this section, 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.
    (e) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to the 
Secretary of Health and Human Services for the conduct of continuing 
disability reviews pursuant to the amendments made by this section--
            (1) $200,000,000 for fiscal year 1997;
            (2) $75,000,000 for fiscal year 1998; and
            (3) $25,000,000 for fiscal year 1999.

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:
    ``(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(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (10),
                    (B) by striking the period at the end of paragraph 
                (11) and inserting ``; and'', and
                    (C) by inserting after paragraph (11) the 
                following:
            ``(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.

SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITUTIONALIZED 
              INDIVIDUALS WHOSE MEDICAL COSTS ARE COVERED BY PRIVATE 
              INSURANCE.

    (a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B)) is 
amended--
            (1) by striking ``title XIX, or'' and inserting ``title 
        XIX,''; and
            (2) by inserting ``or, in the case of an eligible 
        individual under the age of 18 receiving payments (with respect 
        to such individual) under any health insurance policy issued by 
        a private provider of such insurance'' after ``section 
        1614(f)(2)(B),''.
    (b) Effective Date.--The amendment made by this section shall apply 
to benefits for months beginning 90 or more days after the date of the 
enactment of this Act, without regard to whether regulations have been 
issued to implement such amendments.

SEC. 215. MODIFICATION RESPECTING PARENTAL INCOME DEEMED TO DISABLED 
              CHILDREN.

    (a) In General.--Section 1614(f)(2) (42 U.S.C. 1382c(f)(2)) is 
amended--
            (1) by adding at the end of subparagraph (A) the following: 
        ``For purposes of the preceding sentence, the income of such 
        parent or spouse of such parent shall be reduced by--
            ``(A) the allocation for basic needs described in 
        subparagraph (C)(i); and
            ``(B) the earned income disregard described in subparagraph 
        (C)(ii).''; and
            (2) by adding at the end the following:
    ``(C)(i) The allocation for basic needs described by this clause 
is--
            ``(I) in the case of an individual who does not have a 
        spouse, an amount equal to 50 percent of the maximum monthly 
        benefit payable under this title to an eligible individual who 
        does not have an eligible spouse; or
            ``(II) in the case of an individual who has a spouse, an 
        amount equal to 50 percent of the maximum monthly benefit 
        payable under this title to an eligible individual who has an 
        eligible spouse.
    ``(ii) The earned income disregard described by this clause is an 
amount determined by deducting the first $780 per year (or 
proportionally smaller amounts for shorter periods) plus 64 percent of 
the remainder from the earned income (determined in accordance with 
section 1612(a)(1)) of the parent (and spouse, if any).''.
    (b) Preservation of Medicaid Eligibility.--Section 1634 (42 U.S.C. 
1383c) is amended by adding at the end the following:
    ``(f) Any child who has not attained 18 years of age and who would 
be eligible for a payment under this title but for the amendment made 
by section 215(a) of the Peronsal Responsibility and Work Opportunity 
Act of 1996 shall be deemed to be receiving such payment for purposes 
of eligibility of the child for medical assistance under a State plan 
approved under title XIX of this Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months after 1996.

SEC. 216. GRADUATED BENEFITS FOR ADDITIONAL CHILDREN.

    (a) In General.--Section 1611(b) (42 U.S.C. 1382(b)) is amended by 
adding at the end the following:
    ``(3)(A) The benefit under this title for each eligible blind or 
disabled individual as determined pursuant to section 1611(a)(1) who--
            ``(i) is a child under the age of 18,
            ``(ii) lives in the same household as 1 or more persons who 
        are also eligible blind or disabled children under the age of 
        18, and
            ``(iii) does not live in a group or foster home,
shall be equal to the applicable percentage of the amount in section 
1611(b)(1), reduced by the amount of any income of such child, 
including income deemed to such child under section 1614(f)(2).
    ``(B) For purposes of this paragraph, the applicable percentage 
shall be determined under the following table:

                                    The applicable percentage for
``If the household has:                 each eligible child is:
    1 eligible child...............
                                        100 percent
    2 eligible children............
                                        81.2 percent
    3 eligible children............
                                        71.8 percent
    4 eligible children............
                                        65.9 percent
    5 eligible children............
                                        61.8 percent
    6 eligible children............
                                        58.5 percent
    7 eligible children............
                                        55.9 percent
    8 eligible children............
                                        53.5 percent
    9 eligible children............
                                        51.7 percent
    10 eligible children...........
                                        50.2 percent
    11 eligible children...........
                                        48.7 percent
    12 eligible children or more...
                                        47.4 percent.''.

    ``(C) For purposes of this paragraph, the applicable household size 
shall be determined by the number of eligible blind and disabled 
children under the age of 18 in such household whose countable income 
and resources do not exceed the limits specified in section 
1611(a)(1).''.
    (b) Preservation of Medicaid Eligibility.--Section 1634 (42 U.S.C. 
1383c), as amended by section 215(b) of this Act, is amended by adding 
at the end the following:
    ``(g) Any child who has not attained 18 years of age and would be 
eligible for a payment under this title but for the limitation on 
payment amount imposed by section 1611(b)(3) shall be deemed to be 
receiving such benefit for purposes of establishing such child's 
eligibility for medical assistance under a State plan approved under 
title XIX.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect--
            (1) on the date of the enactment of this Act, with respect 
        to payments made on the basis of determinations of eligibility 
        made on or after such date, and
            (2) on January 1, 1998, with respect to payments made for 
        months beginning after such date on the basis of determinations 
        of eligibility made before the date of the enactment of this 
        Act.

               Subtitle C--State Supplementation Programs

SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    Section 1618 (42 U.S.C. 1382g) is hereby repealed.

   Subtitle D--Studies Regarding Supplemental Security Income Program

SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    Title XVI (42 U.S.C. 1381 et seq.), as amended by section 201(c) of 
this Act, is amended by adding at the end the following new section:

                       ``annual report on program

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

SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

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

SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

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

      Subtitle E--National Commission on the Future of Disability

SEC. 241. ESTABLISHMENT.

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

SEC. 242. DUTIES OF THE COMMISSION.

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

SEC. 243. MEMBERSHIP.

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

SEC. 244. STAFF AND SUPPORT SERVICES.

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

SEC. 245. POWERS OF COMMISSION.

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

SEC. 246. REPORTS.

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

SEC. 247. TERMINATION.

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

SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

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

                        TITLE III--CHILD SUPPORT

SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

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

     Subtitle A--Eligibility for Services; Distribution of Payments

SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
              SERVICES.

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

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount so collected; and
                    ``(B) retain, or distribute to the family, the 
                State share of the amount so collected.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support payments.--To the extent that 
                the amount so collected does not exceed the amount 
                required to be paid to the family for the month in 
                which collected, the State shall distribute the amount 
                so collected to the family.
                    ``(B) Payments of arrearages.--To the extent that 
                the amount so collected exceeds the amount required to 
                be paid to the family for the month in which collected, 
                the State shall distribute the amount so collected as 
                follows:
                            ``(i) Distribution of arrearages that 
                        accrued after the family ceased to receive 
                        assistance.--
                                    ``(I) Pre-october 1997.--The 
                                provisions of this section (other than 
                                subsection (b)(1)) as in effect and 
                                applied on the day before the date of 
                                the enactment of section 302 of the 
                                Bipartisan Welfare Reform Act of 1996 
                                shall apply with respect to the 
                                distribution of support arrearages 
                                that--
                                            ``(aa) accrued after the 
                                        family ceased to receive 
                                        assistance, and
                                            ``(bb) are collected before 
                                        October 1, 1997.
                                    ``(II) Post-september 1997.--With 
                                respect the amount so collected on or 
                                after October 1, 1997, or before such 
                                date, at the option of the State--
                                            ``(aa) In general.--The 
                                        State shall first distribute 
                                        the amount so collected (other 
                                        than any amount described in 
                                        clause (iv)) to the family to 
                                        the extent necessary to satisfy 
                                        any support arrearages with 
                                        respect to the family that 
                                        accrued after the family ceased 
                                        to receive assistance from the 
                                        State.
                                            ``(bb) Reimbursement of 
                                        governments for assistance 
                                        provided to the family.--After 
                                        the application of division 
                                        (aa) and clause (ii)(II)(aa) 
                                        with respect to the amount so 
                                        collected, the State shall 
                                        retain the State share of the 
                                        amount so collected, and pay to 
                                        the Federal Government the 
                                        Federal share (as defined in 
                                        subsection (c)(2)(A)) of the 
                                        amount so collected, but only 
                                        to the extent necessary to 
                                        reimburse amounts paid to the 
                                        family as assistance by the 
                                        State.
                                            ``(cc) Distribution of the 
                                        remainder to the family.--To 
                                        the extent that neither 
                                        division (aa) nor division (bb) 
                                        applies to the amount so 
                                        collected, the State shall 
                                        distribute the amount to the 
                                        family.
                            ``(ii) Distribution of arrearages that 
                        accrued before the family received 
                        assistance.--
                                    ``(I) Pre-october 2000.--The 
                                provisions of this section (other than 
                                subsection (b)(1)) as in effect and 
                                applied on the day before the date of 
                                the enactment of section 302 of the 
                                Bipartisan Welfare Reform Act of 1996 
                                shall apply with respect to the 
                                distribution of support arrearages 
                                that--
                                            ``(aa) accrued before the 
                                        family received assistance, and
                                            ``(bb) are collected before 
                                        October 1, 2000.
                                    ``(II) Post-september 2000.--
                                Unless, based on the report required by 
                                paragraph (4), the Congress determines 
                                otherwise, with respect to the amount 
                                so collected on or after October 1, 
                                2000, or before such date, at the 
                                option of the State--
                                            ``(aa) In general.--The 
                                        State shall first distribute 
                                        the amount so collected (other 
                                        than any amount described in 
                                        clause (iv)) to the family to 
                                        the extent necessary to satisfy 
                                        any support arrearages with 
                                        respect to the family that 
                                        accrued before the family 
                                        received assistance from the 
                                        State.
                                            ``(bb) Reimbursement of 
                                        governments for assistance 
                                        provided to the family.--After 
                                        the application of clause 
                                        (i)(II)(aa) and division (aa) 
                                        with respect to the amount so 
                                        collected, the State shall 
                                        retain the State share of the 
                                        amount so collected, and pay to 
                                        the Federal Government the 
                                        Federal share (as defined in 
                                        subsection (c)(2)) of the 
                                        amount so collected, but only 
                                        to the extent necessary to 
                                        reimburse of the amounts paid 
                                        to the family as assistance by 
                                        the State.
                                            ``(cc) Distribution of the 
                                        remainder to the family.--To 
                                        the extent that neither 
                                        division (aa) nor division (bb) 
                                        applies to the amount so 
                                        collected, the State shall 
                                        distribute the amount to the 
                                        family.
                            ``(iii) Distribution of arrearages that 
                        accrued while the family received assistance.--
                        In the case of a family described in 
this subparagraph, the provisions of paragraph (1) shall apply with 
respect to the distribution of support arrearages that accrued while 
the family received assistance.
                            ``(iv) Amounts collected pursuant to 
                        section 464.--Notwithstanding any other 
                        provision of this section, any amount of 
                        support collected pursuant to section 464 shall 
                        be retained by the State to the extent 
                        necessary to reimburse amounts paid to the 
                        family as assistance by the State. The State 
                        shall pay to the Federal Government the Federal 
                        share of the amounts so retained. To the extent 
                        the amount collected pursuant to section 464 
                        exceeds the amount so retained, the State shall 
                        distribute the excess to the family.
                            ``(v) Ordering rules for distributions.--
                        For purposes of this subparagraph, the State 
                        shall treat any support arrearages collected as 
                        accruing in the following order:
                                    ``(I) to the period after the 
                                family ceased to receive assistance;
                                    ``(II) to the period before the 
                                family received assistance; and
                                    ``(III) to the period while the 
                                family was receiving assistance.
            ``(3) Families that never received assistance.--In the case 
        of any other family, the State shall distribute the amount so 
        collected to the family.
            ``(4) Study and report.--Not later than October 1, 1998, 
        the Secretary shall report to the Congress the Secretary's 
        findings with respect to--
                    ``(A) whether the distribution of post-assistance 
                arrearages to families has been effective in moving 
                people off of welfare and keeping them off of welfare;
                    ``(B) whether early implementation of a pre-
                assistance arrearage program by some States has been 
                effective in moving people off of welfare and keeping 
                them off of welfare;
                    ``(C) what the overall impact has been of the 
                amendments made by the Bipartisan Welfare Reform Act of 
                1996 with respect to child support enforcement in 
                moving people off of welfare and keeping them off of 
                welfare; and
                    ``(D) based on the information and data the 
                Secretary has obtained, what changes, if any, should be 
                made in the policies related to the distribution of 
                child support arrearages.
    ``(b) Continuation of Assignments.--Any rights to support 
obligations, which were assigned to a State as a condition of receiving 
assistance from the State under part A and which were in effect on the 
day before the date of the enactment of the Bipartisan Welfare Reform 
Act of 1996, shall remain assigned after such date.
    ``(c) Definitions.--As used in subsection (a):
            ``(1) Assistance.--The term `assistance from the State' 
        means--
                    ``(A) assistance under the State program funded 
                under part A or under the State plan approved under 
                part A of this title (as in effect on the day before 
                the date of the enactment of the Bipartisan Welfare 
                Reform Act of 1996); or
                    ``(B) benefits under the State plan approved under 
                part E of this title (as in effect on the day before 
                the date of the enactment of the Bipartisan Welfare 
                Reform Act of 1996).
            ``(2) Federal share.--The term `Federal share' means that 
        portion of the amount collected resulting from the application 
        of the Federal medical percentage in effect for the fiscal year 
        in which the amount is collected.
            ``(3) Federal medical assistance percentage.--The term 
        `Federal medical assistance percentage' means--
                    ``(A) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1905(b)) in the case of any other 
                State.
            ``(4) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(d) Hold Harmless Provision.--If the amounts collected which 
could be retained by the State in the fiscal year (to the extent 
necessary to reimburse the State for amounts paid to families as 
assistance by the State) are less than the State share of the amounts 
collected in fiscal year 1995 (determined in accordance with section 
457 as in effect on the day before the date of the enactment of the 
Bipartisan Welfare Reform Act of 1996), the State share for the fiscal 
year shall be an amount equal to the State share in fiscal year 
1995.''.
    (b) Conforming Amendments.--
            (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by 
        striking ``section 457(b)(4) or (d)(3)'' and inserting 
        ``section 457''.
            (2) Section 454 (42 U.S.C. 654) is amended--
                    (A) in paragraph (11)--
                            (i) by striking ``(11)'' and inserting 
                        ``(11)(A)''; and
                            (ii) by inserting after the semicolon 
                        ``and''; and
                    (B) by redesignating paragraph (12) as subparagraph 
                (B) of paragraph (11).
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall be effective on October 
        1, 1996, or earlier at the State's option.
            (2) Conforming amendments.--The amendments made by 
        subsection (b)(2) shall become effective on the date of the 
        enactment of this Act.

SEC. 303. PRIVACY SAFEGUARDS.

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

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

                  Subtitle B--Locate and Case Tracking

SEC. 311. STATE CASE REGISTRY.

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

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(b) and 303(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and
                    ``(B) have sufficient State staff (consisting of 
                State employees) and (at State option) contractors 
                reporting directly to the State agency to--
                            ``(i) monitor and enforce support 
                        collections through the unit in cases being 
                        enforced by the State pursuant to section 
                        454(4) (including carrying out the automated 
                        data processing responsibilities described in 
                        section 454A(g)); and
                            ``(ii) take the actions described in 
                        section 466(c)(1) in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669), as amended by section 344(a)(2) of this Act, is 
amended by inserting after section 454A the following new section:

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

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

SEC. 313. STATE DIRECTORY OF NEW HIRES.

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

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

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

SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

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

SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

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

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

SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
              CHILD SUPPORT ENFORCEMENT.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 315 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(13) Recording of social security numbers in certain 
        family matters.--Procedures requiring that the social security 
        number of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application;
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter; and
                    ``(C) any individual who has died be placed in the 
                records relating to the death and be recorded on the 
                death certificate.
        For purposes of subparagraph (A), if a State allows the use of 
        a number other than the social security number, the State shall 
        so advise any applicants.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        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 acknowledgment in the records relating to 
                        the matter, for the purpose of responding to 
                        requests for information from an agency 
                        operating pursuant to part D of title IV.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following new subsection:
    ``(f) Uniform Interstate Family Support Act.--
            ``(1) Enactment and use.--In order to satisfy section 
        454(20)(A), on and after January 1, 1998, each State must have 
        in effect the Uniform Interstate Family Support Act, as 
        approved by the American Bar Association on February 9, 1993, 
        together with any amendments officially adopted before January 
        1, 1998, by the National Conference of Commissioners on Uniform 
        State Laws.
            ``(2) Employers to follow procedural rules of state where 
        employee works.--The State law enacted pursuant to paragraph 
        (1) shall provide that an employer that receives an income 
        withholding order or notice pursuant to section 501 of the 
        Uniform Interstate Family Support Act follow the procedural 
        rules that apply with respect to such order or notice under the 
        laws of the State in which the obligor works.''.

SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

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

SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315 and 
317(a) of this Act, is amended by adding at the end the following new 
paragraph:
            ``(14) Administrative enforcement in interstate cases.--
        Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State; and
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case;
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
                            ``(i) the number of such requests for 
                        assistance received by the State;
                            ``(ii) the number of cases for which the 
                        State collected support in response to such a 
                        request; and
                            ``(iii) the amount of such collected 
                        support.''.

SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

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

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 314 of this Act, is amended--
            (1) in subsection (a)(2), by striking the first sentence 
        and inserting the following: ``Expedited administrative and 
        judicial procedures (including the procedures specified in 
        subsection (c)) for establishing paternity and for 
        establishing, modifying, and enforcing support obligations.''; 
        and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority to take the following 
        actions relating to establishment or enforcement of support 
        orders, without the necessity of obtaining an order from any 
        other judicial or administrative tribunal, and to recognize and 
        enforce the authority of State agencies of other States) to 
        take the following actions:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Financial or other information.--To subpoena 
                any financial or other information needed to establish, 
                modify, or enforce a support order, and to impose 
                penalties for failure to respond to such a subpoena.
                    ``(C) Response to state agency request.--To require 
                all entities in the State (including for-profit, 
                nonprofit, and governmental employers) to provide 
                promptly, in response to a request by the State agency 
                of that or any other State administering a program 
                under this part, information on the employment, 
                compensation, and benefits of any individual employed 
                by such entity as an employee or contractor, and to 
                sanction failure to respond to any such request.
                    ``(D) Access to certain records.--To obtain access, 
                subject to safeguards on privacy and information 
                security, to the following records (including automated 
                access, in the case of records maintained in automated 
                data bases):
                            ``(i) Records of other State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records.
                            ``(ii) Certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access), as provided pursuant to 
                                agreements described in subsection 
                                (a)(18).
                    ``(E) Change in payee.--In cases in which support 
                is subject to an assignment in order to comply with a 
                requirement imposed pursuant to part A or section 1912, 
                or to a requirement to pay through the State 
                disbursement unit established pursuant to section 454B, 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(F) Income withholding.--To order income 
                withholding in accordance with subsections (a)(1) and 
                (b) of section 466.
                    ``(G) Securing assets.--In cases in which there is 
                a support arrearage, to secure assets to satisfy the 
                arrearage by--
                            ``(i) intercepting or seizing periodic or 
                        lump-sum payments from--
                                    ``(I) a State or local agency, 
                                including unemployment compensation, 
                                workers' compensation, and other 
                                benefits; and
                                    ``(II) judgments, settlements, and 
                                lotteries;
                            ``(ii) attaching and seizing assets of the 
                        obligor held in financial institutions;
                            ``(iii) attaching public and private 
                        retirement funds; and
                            ``(iv) imposing liens in accordance with 
                        subsection (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages, subject to such conditions or limitations 
                as the State may provide.
        Such procedures shall be subject to due process safeguards, 
        including (as appropriate) requirements for notice, opportunity 
        to contest the action, and opportunity for an appeal on the 
        record to an independent administrative or judicial tribunal.
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) each party to any paternity or child 
                        support proceeding is required (subject to 
                        privacy safeguards) to file with the tribunal 
                        and the State case registry upon entry of an 
                        order, and to update as appropriate, 
                        information on location and identity of the 
                        party, including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and name and telephone number of 
                        employer; and
                            ``(ii) in any subsequent child support 
                        enforcement action between the parties, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain the location of such a 
                        party, the tribunal may deem State due process 
                        requirements for notice and service of process 
                        to be met with respect to the party, upon 
                        delivery of written notice to the most recent 
                        residential or employer address filed with the 
                        tribunal pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between local 
                        jurisdictions in the State without need for for 
                        any additional filing by the petitioner, or 
                        service of process upon the respondent, to 
                        retain jurisdiction over the parties.
            ``(3) Coordination with erisa.--Notwithstanding subsection 
        (d) of section 514 of the Employee Retirement Income Security 
        Act of 1974 (relating to effect on other laws), nothing in this 
        subsection shall be construed to alter, amend, modify, 
        invalidate, impair, or supersede subsections (a), (b), and (c) 
        of such section 514 as it applies with respect to any procedure 
        referred to in paragraph (1) and any expedited procedure 
        referred to in paragraph (2), except to the extent that such 
        procedure would be consistent with the requirements of section 
        206(d)(3) of such Act (relating to qualified domestic relations 
        orders) or the requirements of section 609(a) of such Act 
        (relating to qualified medical child support orders) if the 
        reference in such section 206(d)(3) to a domestic relations 
        order and the reference in such section 609(a) to a medical 
        child support order were a reference to a support order 
        referred to in paragraphs (1) and (2) relating to the same 
        matters, respectively.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 344(a)(2) and as amended by sections 311 and 312(c) of this 
Act, is amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.

                  Subtitle D--Paternity Establishment

SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
            ``(5) Procedures concerning paternity establishment.--
                    ``(A) Establishment process available from birth 
                until age 18.--
                            ``(i) Procedures which permit the 
                        establishment of the paternity of a child at 
                        any time before the child attains 18 years of 
                        age.
                            ``(ii) As of August 16, 1984, clause (i) 
                        shall also apply to a child for whom paternity 
                        has not been established or for whom a 
                        paternity action was brought but dismissed 
                        because a statute of limitations of less than 
                        18 years was then in effect in the State.
                    ``(B) Procedures concerning genetic testing.--
                            ``(i) Genetic testing required in certain 
                        contested cases.--Procedures under which the 
                        State is required, in a contested paternity 
                        case (unless otherwise barred by State law) to 
                        require the child and all other parties (other 
                        than individuals found under section 454(29) to 
                        have good cause for refusing to cooperate) to 
                        submit to genetic tests upon the request of any 
                        such party, if the request is supported by a 
                        sworn statement by the party--
                                    ``(I) alleging paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the requisite 
                                sexual contact between the parties; or
                                    ``(II) denying paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the 
                                nonexistence of sexual contact between 
                                the parties.
                            ``(ii) Other requirements.--Procedures 
                        which require the State agency, in any case in 
                        which the agency orders genetic testing--
                                    ``(I) to pay costs of such tests, 
                                subject to recoupment (if the State so 
                                elects) from the alleged father if 
                                paternity is established; and
                                    ``(II) to obtain additional testing 
                                in any case if an original test result 
                                is contested, upon request and advance 
                                payment by the contestant.
                    ``(C) Voluntary paternity acknowledgment.--
                            ``(i) Simple civil process.--Procedures for 
                        a simple civil process for voluntarily 
                        acknowledging paternity under which the State 
                        must provide that, before a mother and a 
                        putative father can sign an acknowledgment of 
                        paternity, the mother and the putative father 
                        must be given notice, orally and in writing, of 
                        the alternatives to, the legal consequences of, 
                        and the rights (including, if 1 parent is a 
                        minor, any rights afforded due to minority 
                        status) and responsibilities that arise from, 
                        signing the acknowledgment.
                            ``(ii) Hospital-based program.--Such 
                        procedures must include a hospital-based 
                        program for the voluntary acknowledgment of 
                        paternity focusing on the period immediately 
                        before or after the birth of a child, subject 
                        to such good cause exceptions, taking into 
                        account the best interests of the child, as the 
                        State may establish.
                            ``(iii) Paternity establishment services.--
                                    ``(I) State-offered services.--Such 
                                procedures must require the State 
                                agency responsible for maintaining 
                                birth records to offer voluntary 
                                paternity establishment services.
                                    ``(II) Regulations.--
                                            ``(aa) Services offered by 
                                        hospitals and birth record 
                                        agencies.--The Secretary shall 
                                        prescribe regulations governing 
                                        voluntary paternity 
                                        establishment services offered 
                                        by hospitals and birth record 
                                        agencies.
                                            ``(bb) Services offered by 
                                        other entities.--The Secretary 
                                        shall prescribe regulations 
                                        specifying the types of other 
                                        entities that may offer 
                                        voluntary paternity 
                                        establishment services, and 
                                        governing the provision of such 
                                        services, which shall include a 
                                        requirement that such an entity 
                                        must use the same notice 
                                        provisions used by, use the 
                                        same materials used by, provide 
                                        the personnel providing such 
                                        services with the same training 
                                        provided by, and evaluate the 
                                        provision of such services in 
                                        the same manner as the 
                                        provision of such services is 
                                        evaluated by, voluntary 
                                        paternity establishment 
                                        programs of hospitals and birth 
                                        record agencies.
                            ``(iv) Use of paternity acknowledgment 
                        affidavit.--Such procedures must require the 
                        State to develop and use an affidavit for the 
                        voluntary acknowledgment of paternity which 
                        includes the minimum requirements of the 
                        affidavit developed by the Secretary under 
                        section 452(a)(7) for the voluntary 
                        acknowledgment of paternity, and to give full 
                        faith and credit to such an affidavit signed in 
                        any other State according to its procedures.
                    ``(D) Status of signed paternity acknowledgment.--
                            ``(i) Inclusion in birth records.--
                        Procedures under which the name of the father 
                        shall be included on the record of birth of the 
                        child of unmarried parents only if--
                                    ``(I) the father and mother have 
                                signed a voluntary acknowledgment of 
                                paternity; or
                                    ``(II) a court or an administrative 
                                agency of competent jurisdiction has 
                                issued an adjudication of paternity.
                        Nothing in this clause shall preclude a State 
                        agency from obtaining an admission of paternity 
                        from the father for submission in a judicial or 
                        administrative proceeding, or prohibit the 
                        issuance of an order in a judicial or 
                        administrative proceeding which bases a legal 
                        finding of paternity on an admission of 
                        paternity by the father and any other 
                        additional showing required by State law.
                            ``(ii) Legal finding of paternity.--
                        Procedures under which a signed voluntary 
                        acknowledgment of paternity is considered a 
                        legal finding of paternity, subject to the 
                        right of any signatory to rescind the 
                        acknowledgment within the earlier of--
                                    ``(I) 60 days; or
                                    ``(II) the date of an 
                                administrative or judicial proceeding 
                                relating to the child (including a 
                                proceeding to establish a support 
                                order) in which the signatory is a 
                                party.
                            ``(iii) Contest.--Procedures under which, 
                        after the 60-day period referred to in clause 
                        (ii), a signed voluntary acknowledgment of 
                        paternity may be challenged in court only on 
                        the basis of fraud, duress, or material mistake 
                        of fact, with the burden of proof upon the 
                        challenger, and under which the legal 
                        responsibilities (including child support 
                        obligations) of any signatory arising from the 
                        acknowledgment may not be suspended during the 
                        challenge, except for good cause shown.
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which judicial or 
                administrative proceedings are not required or 
                permitted to ratify an unchallenged acknowledgment of 
                paternity.
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring the admission into 
                        evidence, for purposes of establishing 
                        paternity, of the results of any genetic test 
                        that is--
                                    ``(I) of a type generally 
                                acknowledged as reliable by 
                                accreditation bodies designated by the 
                                Secretary; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) requiring an objection to genetic 
                        testing results to be made in writing not later 
                        than a specified number of days before any 
                        hearing at which the results may be introduced 
                        into evidence (or, at State option, not later 
                        than a specified number of days after receipt 
                        of the results); and
                            ``(iii) making the test results admissible 
                        as evidence of paternity without the need for 
                        foundation testimony or other proof of 
                        authenticity or accuracy, unless objection is 
                        made.
                    ``(G) Presumption of paternity in certain cases.--
                Procedures which create a rebuttable or, at the option 
                of the State, conclusive presumption of paternity upon 
                genetic testing results indicating a threshold 
                probability that the alleged father is the father of 
                the child.
                    ``(H) Default orders.--Procedures requiring a 
                default order to be entered in a paternity case upon a 
                showing of service of process on the defendant and any 
                additional showing required by State law.
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to a trial by jury.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support pending 
                an administrative or judicial determination of 
                parentage, if there is clear and convincing evidence of 
                paternity (on the basis of genetic tests or other 
                evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services or for 
                testing on behalf of the child.
                    ``(L) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.
                    ``(M) Filing of acknowledgments and adjudications 
                in state registry of birth records.--Procedures under 
                which voluntary acknowledgments and adjudications of 
                paternity by judicial or administrative processes are 
                filed with the State registry of birth records for 
                comparison with information in the State case 
                registry.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security number of each parent and, 
after consultation with the States, other common elements as determined 
by such designee'' before the semicolon.
    (c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is amended 
by striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ``and 
will publicize the availability and encourage the use of procedures for 
voluntary establishment of paternity and child support by means the 
State deems appropriate'' before the semicolon.

SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

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

             Subtitle E--Program Administration and Funding

SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

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

SEC. 343. REQUIRED REPORTING PROCEDURES.

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

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

``SEC. 454A. AUTOMATED DATA PROCESSING.

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

SEC. 345. TECHNICAL ASSISTANCE.

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

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

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

      Subtitle F--Establishment and Modification of Support Orders

SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10) Review and adjustment of support orders upon 
        request.--Procedures under which the State shall review and 
        adjust each support order being enforced under this part upon 
        the request of either parent or the State if there is an 
        assignment. Such procedures shall provide the following:
                    ``(A) In general.--
                            ``(i) 3-year cycle.--Except as provided in 
                        subparagraphs (B) and (C), the State shall 
                        review and, as appropriate, adjust the support 
                        order every 3 years, taking into account the 
                        best interests of the child involved.
                            ``(ii) Methods of adjustment.--The State 
                        may elect to review and, if appropriate, adjust 
                        an order pursuant to clause (i) by--
                                    ``(I) reviewing and, if 
                                appropriate, adjusting the order in 
                                accordance with the guidelines 
                                established pursuant to section 467(a) 
                                if the amount of the child support 
                                award under the order differs from the 
                                amount that would be awarded in 
                                accordance with the guidelines; or
                                    ``(II) applying a cost-of-living 
                                adjustment to the order in accordance 
                                with a formula developed by the State 
                                and permit either party to contest the 
                                adjustment, within 30 days after the 
                                date of the notice of the adjustment, 
                                by making a request for review and, if 
                                appropriate, adjustment of the order in 
                                accordance with the child support 
                                guidelines established pursuant to 
                                section 467(a).
                            ``(iii) No proof of change in circumstances 
                        necessary.--Any adjustment under this 
                        subparagraph (A) shall be made without a 
                        requirement for proof or showing of a change in 
                        circumstances.
                    ``(B) Automated method.--The State may use 
                automated methods (including automated comparisons with 
                wage or State income tax data) to identify orders 
                eligible for review, conduct the review, identify 
                orders eligible for adjustment, and apply the 
                appropriate adjustment to the orders eligible for 
                adjustment under the threshold established by the 
                State.
                    ``(C) Request upon substantial change in 
                circumstances.--The State shall, at the request of 
                either parent subject to such an order or of any State 
                child support enforcement agency, review and, if 
                appropriate, adjust the order in accordance with the 
                guidelines established pursuant to section 467(a) based 
                upon a substantial change in the circumstances of 
                either parent.
                    ``(D) Notice of right to review.--The State shall 
                provide notice not less than once every 3 years to the 
                parents subject to such an order informing them of 
                their right to request the State to review and, if 
                appropriate, adjust the order pursuant to this 
                paragraph. The notice may be included in the order.''.

SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO 
              CHILD SUPPORT.

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

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

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a financial institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
financial institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, 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) Financial institution.--The term ``financial 
        institution'' means--
                    (A) a depository institution, as defined in section 
                3(c) of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c));
                    (B) an institution-affiliated party, as defined in 
                section 3(u) of such Act (12 U.S.C. 1813(v));
                    (C) any Federal credit union or State credit union, 
                as defined in section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752), including an institution-
                affiliated party of such a credit union, as defined in 
                section 206(r) of such Act (12 U.S.C. 1786(r)); and
                    (D) any benefit association, insurance company, 
                safe deposit company, money-market mutual fund, or 
                similar entity authorized to do business in the State.
            (2) Financial record.--The term ``financial record'' has 
        the meaning given such term in section 1101 of the Right to 
        Financial Privacy Act of 1978 (12 U.S.C. 3401).
            (3) State child support enforcement agency.--The term 
        ``State child support enforcement agency'' means a State agency 
        which administers a State program for establishing and 
        enforcing child support obligations.

               Subtitle G--Enforcement of Support Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

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

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

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

    ``(a) Consent to Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy any other 
        such processes on a first-come, first-served basis, with any 
        such process being satisfied out of such moneys as remain after 
        the satisfaction of all such processes which have been 
        previously served.
    ``(e) No Requirement to Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government of the 
        District of Columbia, nor any disbursing officer shall be 
        liable with respect to any payment made from moneys due or 
        payable from the United States to any individual pursuant to 
        legal process regular on its face, if the payment is made in 
        accordance with this section and the regulations issued to 
        carry out this section.
            ``(2) No Federal employee whose duties include taking 
        actions necessary to comply with the requirements of subsection 
        (a) with regard to any individual shall be subject under any 
        law to any disciplinary action or civil or criminal liability 
        or penalty for, or on account of, any disclosure of information 
        made by the employee in connection with the carrying out of 
        such actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative or 
        judicial branches of the Federal Government) or the government 
        of the District of Columbia, be vested in the President (or the 
        designee of the President);
            ``(2) the legislative branch of the Federal Government, be 
        vested jointly in the President pro tempore of the Senate and 
        the Speaker of the House of Representatives (or their 
        designees), and
            ``(3) the judicial branch of the Federal Government, be 
        vested in the Chief Justice of the United States (or the 
        designee of the Chief Justice).
    ``(h) Moneys Subject to Process.--
            ``(1) In general.--Subject to paragraph (2), moneys paid or 
        payable to an individual which are considered to be based upon 
        remuneration for employment, for purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable for 
                        personal services of the individual, whether 
                        the compensation is denominated as wages, 
                        salary, commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, sick pay, 
                        and incentive pay);
                            ``(ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                    ``(I) under the insurance system 
                                established by title II;
                                    ``(II) under any other system or 
                                fund established by the United States 
                                which provides for the payment of 
                                pensions, retirement or retired pay, 
                                annuities, dependents' or survivors' 
                                benefits, or similar amounts payable on 
                                account of personal services performed 
                                by the individual or any other 
                                individual;
                                    ``(III) as compensation for death 
                                under any Federal program;
                                    ``(IV) under any Federal program 
                                established to provide `black lung' 
                                benefits; or
                                    ``(V) by the Secretary of Veterans 
                                Affairs as compensation for a service-
                                connected disability paid by the 
                                Secretary to a former member of the 
                                Armed Forces who is in receipt of 
                                retired or retainer pay if the former 
                                member has waived a portion of the 
                                retired or retainer pay in order to 
                                receive such compensation; and
                            ``(iii) worker's compensation benefits paid 
                        under Federal or State law but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or otherwise, 
                        to defray expenses incurred by the individual 
                        in carrying out duties associated with the 
                        employment of the individual; or
                            ``(ii) as allowances for members of the 
                        uniformed services payable pursuant to chapter 
                        7 of title 37, United States Code, as 
                        prescribed by the Secretaries concerned 
                        (defined by section 101(5) of such title) as 
                        necessary for the efficient performance of 
                        duty.
            ``(2) Certain amounts excluded.--In determining the amount 
        of any moneys due from, or payable by, the United States to any 
        individual, there shall be excluded amounts which--
                    ``(A) are owed by the individual to the United 
                States;
                    ``(B) are required by law to be, and are, deducted 
                from the remuneration or other payment involved, 
                including Federal employment taxes, and fines and 
                forfeitures ordered by court-martial;
                    ``(C) are properly withheld for Federal, State, or 
                local income tax purposes, if the withholding of the 
                amounts is authorized or required by law and if amounts 
                withheld are not greater than would be the case if the 
                individual claimed all dependents to which he was 
                entitled (the withholding of additional amounts 
                pursuant to section 3402(i) of the Internal Revenue 
                Code of 1986 may be permitted only when the individual 
                presents evidence of a tax obligation which supports 
                the additional withholding);
                    ``(D) are deducted as health insurance premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--For purposes of this section--
            ``(1) United states.--The term `United States' includes any 
        department, agency, or instrumentality of the legislative, 
        judicial, or executive branch of the Federal Government, the 
        United States Postal Service, the Postal Rate Commission, any 
Federal corporation created by an Act of Congress that is wholly owned 
by the Federal Government, and the governments of the territories and 
possessions of the United States.
            ``(2) Child support.--The term `child support', when used 
        in reference to the legal obligations of an individual to 
        provide such support, means amounts required to be paid under a 
        judgment, decree, or order, whether temporary, final, or 
        subject to modification, issued by a court or an administrative 
        agency of competent jurisdiction, for the support and 
        maintenance of a child, including a child who has attained the 
        age of majority under the law of the issuing State, or a child 
        and the parent with whom the child is living, which provides 
        for monetary support, health care, arrearages or reimbursement, 
        and which may include other related costs and fees, interest 
        and penalties, income withholding, attorney's fees, and other 
        relief.
            ``(3) Alimony.--
                    ``(A) In general.--The term `alimony', when used in 
                reference to the legal obligations of an individual to 
                provide the same, means periodic payments of funds for 
                the support and maintenance of the spouse (or former 
                spouse) of the individual, and (subject to and in 
                accordance with State law) includes separate 
                maintenance, alimony pendente lite, maintenance, and 
                spousal support, and includes attorney's fees, 
                interest, and court costs when and to the extent that 
                the same are expressly made recoverable as such 
                pursuant to a decree, order, or judgment issued in 
                accordance with applicable State law by a court of 
                competent jurisdiction.
                    ``(B) Exceptions.--Such term does not include--
                            ``(i) any child support; or
                            ``(ii) any payment or transfer of property 
                        or its value by an individual to the spouse or 
                        a former spouse of the individual in compliance 
                        with any community property settlement, 
                        equitable distribution of property, or other 
                        division of property between spouses or former 
                        spouses.
            ``(4) Private person.--The term `private person' means a 
        person who does not have sovereign or other special immunity or 
        privilege which causes the person not to be subject to legal 
        process.
            ``(5) Legal process.--The term `legal process' means any 
        writ, order, summons, or other similar process in the nature of 
        garnishment--
                    ``(A) which is issued by--
                            ``(i) a court or an administrative agency 
                        of competent jurisdiction in any State, 
                        territory, or possession of the United States;
                            ``(ii) a court or an administrative agency 
                        of competent jurisdiction in any foreign 
                        country with which the United States has 
                        entered into an agreement which requires the 
                        United States to honor the process; or
                            ``(iii) an authorized official pursuant to 
                        an order of such a court or an administrative 
                        agency of competent jurisdiction or pursuant to 
                        State or local law; and
                    ``(B) which is directed to, and the purpose of 
                which is to compel, a governmental entity which holds 
                moneys which are otherwise payable to an individual to 
                make a payment from the moneys to another party in 
                order 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--
                    (A) by inserting ``or a support order, as defined 
                in section 453(p) of the Social Security Act (42 U.S.C. 
                653(p)),'' before ``which--'';
                    (B) in subparagraph (B)(i), by striking ``(as 
                defined in section 462(b) of the Social Security Act 
                (42 U.S.C. 662(b)))'' and inserting ``(as defined in 
                section 459(i)(2) of the Social Security Act (42 U.S.C. 
                662(i)(2)))''; and
                    (C) in subparagraph (B)(ii), by striking ``(as 
                defined in section 462(c) of the Social Security Act 
                (42 U.S.C. 662(c)))'' and inserting ``(as defined in 
                section 459(i)(3) of the Social Security Act (42 U.S.C. 
                662(i)(3)))''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for Benefit 
                of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the 1st sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following new 
        subsection:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service established 
        under section 453 of the Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection--
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 459(i) of the Social 
                Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, as amended by section 362(c)(4) 
        of this Act, is amended--
                    (A) by redesignating subsections (i) and (j) as 
                subsections (j) and (k), respectively; and
                    (B) by inserting after subsection (h) the following 
                new subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following new sentence: 
        ``In the case of a spouse or former spouse who, pursuant to 
        section 408(a)(4) of the Social Security Act, assigns to a 
        State the rights of the spouse or former spouse to receive 
        support, the Secretary concerned may make the child support 
        payments referred to in the preceding sentence to that State in 
        amounts consistent with that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the 1st pay period that begins after 
        such 30-day period.

SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 321 of this Act, 
is amended by adding at the end the following new subsection:
    ``(g) Laws Voiding Fraudulent Transfers.--In order to satisfy 
section 454(20)(A), each State must have in effect--
            ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
                    ``(B) the Uniform Fraudulent Transfer Act of 1984; 
                or
                    ``(C) another law, specifying indicia of fraud 
                which create a prima facie case that a debtor 
                transferred income or property to avoid payment to a 
                child support creditor, which the Secretary finds 
                affords comparable rights to child support creditors; 
                and
            ``(2) procedures under which, in any case in which the 
        State knows of a transfer by a child support debtor with 
        respect to which such a prima facie case is established, the 
        State must--
                    ``(A) seek to void such transfer; or
                    ``(B) obtain a settlement in the best interests of 
                the child support creditor.''.

SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.

    (a) In General.--Section 466(a) of the Social Security Act (42 
U.S.C. 666(a)), as amended by sections 315, 317(a), and 323 of this 
Act, is amended by adding at the end the following new paragraph:
            ``(15) Procedures to ensure that persons owing past-due 
        support work or have a plan for payment of such support.--
                    ``(A) In general.--Procedures under which the State 
                has the authority, in any case in which an individual 
                owes past-due support with respect to a child receiving 
                assistance under a State program funded under part A, 
                to seek a court order that requires the individual to--
                            ``(i) pay such support in accordance with a 
                        plan approved by the court, or, at the option 
                        of the State, a plan approved by the State 
                        agency administering the State program under 
                        this part; or
                            ``(ii) if the individual is subject to such 
                        a plan and is not incapacitated, participate in 
                        such work activities (as defined in section 
                        407(d)) as the court, or, at the option of the 
                        State, the State agency administering the State 
                        program under this part, deems appropriate.
                    ``(B) Past-due support defined.--For purposes of 
                subparagraph (A), the term `past-due support' means the 
                amount of a delinquency, determined under a court 
                order, or an order of an administrative process 
                established under State law, for support and 
                maintenance of a child, or of a child and the parent 
                with whom the child is living.''.
    (b) Conforming Amendment.--The flush paragraph at the end of 
section 466(a) (42 U.S.C.666(a)) is amended by striking ``and (7)'' and 
inserting ``(7), and (15)''.

SEC. 366. DEFINITION OF SUPPORT ORDER.

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

SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

SEC. 368. LIENS.

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

SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, and 365 of this Act, is amended by adding at the end the 
following:
            ``(16) Authority to withhold or suspend licenses.--
        Procedures under which the State has (and uses in appropriate 
        cases) authority to withhold or suspend, or to restrict the use 
        of driver's licenses, professional and occupational licenses, 
        and recreational licenses of individuals owing overdue support 
        or failing, after receiving appropriate notice, to comply with 
        subpoenas or warrants relating to paternity or child support 
        proceedings.''.

SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by section 345 of this Act, is amended by 
        adding at the end the following new subsection:
    ``(k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, the Secretary shall transmit such certification to the 
Secretary of State for action (with respect to denial, revocation, or 
limitation of passports) pursuant to section 370(b) of the Bipartisan 
Welfare Reform Act of 1996.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
            (2) State case agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 301(b), 303(a), 312(b), 
        313(a), 333, and 343(b) of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (29);
                    (B) by striking the period at the end of paragraph 
                (30) and inserting ``; and''; and
                    (C) by adding after paragraph (30) the following 
                new paragraph:
            ``(31) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, for purposes of the 
        procedure under section 452(k), determinations that individuals 
        owe arrearages of child support in an amount exceeding $5,000, 
        under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State shall, upon 
        certification by the Secretary of Health and Human Services 
        transmitted under section 452(k) of the Social Security Act, 
        refuse to issue a passport to such individual, and may revoke, 
        restrict, or limit a passport issued previously to such 
        individual.
            (2) Limit on liability.--The Secretary of State shall not 
        be liable to an individual for any action with respect to a 
        certification by a State agency under this section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

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

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

SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, 365, and 369 of this Act, is amended by adding at the end 
the following new paragraph:
            ``(17) Financial institution data matches.--
                    ``(A) In general.--Procedures under which the State 
                agency shall enter into agreements with financial 
                institutions doing business in the State--
                            ``(i) to develop and operate, in 
                        coordination with such financial institutions, 
                        a data match system, using automated data 
                        exchanges to the maximum extent feasible, in 
                        which each such financial institution is 
                        required to provide for each calendar quarter 
                        the name, record address, social security 
                        number or other taxpayer identification number, 
                        and other identifying information for each 
                        noncustodial parent who maintains an account at 
                        such institution and who owes past-due support, 
                        as identified by the State by name and social 
                        security number or other taxpayer 
                        identification number; and
                            ``(ii) in response to a notice of lien or 
                        levy, encumber or surrender, as the case may 
                        be, assets held by such institution on behalf 
                        of any noncustodial parent who is subject to a 
                        child support lien pursuant to paragraph (4).
                    ``(B) Reasonable fees.--The State agency may pay a 
                reasonable fee to a financial institution for 
                conducting the data match provided for in subparagraph 
                (A)(i), not to exceed the actual costs incurred by such 
                financial institution.
                    ``(C) Liability.--A financial institution shall not 
                be liable under any Federal or State law to any 
                person--
                            ``(i) for any disclosure of information to 
                        the State agency under subparagraph (A)(i);
                            ``(ii) for encumbering or surrendering any 
                        assets held by such financial institution in 
                        response to a notice of lien or levy issued by 
                        the State agency as provided for in 
                        subparagraph (A)(ii); or
                            ``(iii) for any other action taken in good 
                        faith to comply with the requirements of 
                        subparagraph (A).
                    ``(D) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Financial institution.--The term 
                        `financial institution' means any Federal or 
                        State commercial savings bank, including 
                        savings association or cooperative bank, 
                        Federal- or State-chartered credit union, 
                        benefit association, insurance company, safe 
                        deposit company, money-market mutual fund, or 
                        any similar entity authorized to do business in 
                        the State; and
                            ``(ii) Account.--The term `account' means a 
                        demand deposit account, checking or negotiable 
                        withdrawal order account, savings account, time 
                        deposit account, or money-market mutual fund 
                        account.''.

SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL 
              GRANDPARENTS IN CASES OF MINOR PARENTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315, 
317(a), 323, 365, 369, and 372 of this Act, is amended by adding at the 
end the following new paragraph:
            ``(18) Enforcement of orders against paternal or maternal 
        grandparents.--Procedures under which, at the State's option, 
        any child support order enforced under this part with respect 
        to a child of minor parents, if the custodial parents of such 
        child is receiving assistance under the State program under 
        part A, shall be enforceable, jointly and severally, against 
        the parents of the noncustodial parents of such child.''.

SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS FOR THE 
              SUPPORT OF A CHILD.

    (a) Amendment to Title 11 of the United States Code.--Section 
523(a) of title 11, United States Code, is amended--
            (1) in paragraph (16) by striking the period at the end and 
        inserting ``; or'',
            (2) by adding at the end the following:
            ``(17) to a State or municipality for assistance provided 
        by such State or municipality under a State program funded 
        under section 403 of the Social Security Act to the extent that 
        such assistance is provided for the support of a child of the 
        debtor.'', and
            (3) in paragraph (5), by inserting `` or section 408'' 
        after ``section 402(a)(26).
    (b) Amendment to the Social Security Act.--Section 456(b) of the 
Social Security Act (42 U.S.C. 656(b)) is amended to read as follows:
    ``(b) Nondischargeability.--A debt (as defined in section 101 of 
title 11 of the United States Code) to a State (as defined in such 
section) or municipality (as defined in such section) for assistance 
provided by such State or municipality under a State program funded 
under section 403 is not dischargeable under section 727, 1141, 
1228(a), 1228(b), or 1328(b) of title 11 of the United States Code to 
the extent that such assistance is provided for the support of a child 
of the debtor (as defined in such section).''.
    (c) Application of Amendments.--The amendments made by this section 
shall apply only with respect to cases commenced under title 11 of the 
United States Code after the effective date of this section.

                      Subtitle H--Medical Support

SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD SUPPORT 
              ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1997.--
        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, 1997, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such 1st 
                plan year, the plan is operated in accordance with 
the requirements of the amendments made by this section; and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such 1st plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

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

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

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

SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    Part D of title IV (42 U.S.C. 651-669) is amended by adding at the 
end the following:

``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

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

                    Subtitle J--Effect of Enactment

SEC. 391. EFFECTIVE DATES.

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

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
              IMMIGRATION.

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

              Subtitle A--Eligibility for Federal Benefits

SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR FEDERAL 
              PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is not a qualified 
alien (as defined in section 431) is not eligible for any Federal 
public benefit (as defined in subsection (c)).
    (b) Exceptions.--
            (1) Subsection (a) shall not apply with respect to the 
        following Federal public benefits:
                    (A) Emergency medical services under title XIX or 
                XXI of the Social Security Act.
                    (B) Short-term, non-cash, in-kind emergency 
                disaster relief.
                    (C)(i) Public health assistance for immunizations.
                    (ii) Public health assistance for testing and 
                treatment of a serious communicable disease if the 
                Secretary of Health and Human Services determines that 
                it is necessary to prevent the spread of such disease.
                    (D) Programs, services, or assistance (such as soup 
                kitchens, crisis counseling and intervention, and 
                short-term shelter) specified by the Attorney General, 
                in the Attorney General's sole and unreviewable 
                discretion after consultation with appropriate Federal 
                agencies and departments, which (i) deliver in-kind 
                services at the community level, including through 
                public or private nonprofit agencies; (ii) do not 
                condition the provision of assistance, the amount of 
                assistance provided, or the cost of assistance provided 
                on the individual recipient's income or resources; and 
                (iii) are necessary for the protection of life or 
                safety.
                    (E) Programs for housing or community development 
                assistance or financial assistance administered by the 
                Secretary of Housing and Urban Development, any program 
                under title V of the Housing Act of 1949, or any 
                assistance under section 306C of the Consolidated Farm 
                and Rural Development Act, to the extent that the alien 
                is receiving such a benefit on the date of the 
                enactment of this Act.
                    (F) Assistance or benefits under the National 
                School Lunch Act or the Child Nutrition Act of 1966.
            (2) Subsection (a) shall not apply to any benefit payable 
        under title II of the Social Security Act to an alien who is 
        lawfully present in the United States as determined by the 
        Attorney General, to any benefit if nonpayment of such benefit 
        would contravene an international agreement described in 
        section 233 of the Social Security Act, to any benefit if 
        nonpayment would be contrary to section 202(t) of the Social 
        Security Act, or to any benefit payable under title II of the 
        Social Security Act to which entitlement is based on an 
        application filed in or before the month in which this Act 
        becomes law.
            (3) Subsection (a) shall not apply--
                    (A) for up to 48 months if the alien can 
                demonstrate that (i) the alien has been battered or 
                subject to extreme cruelty in the United States by a 
                spouse or parent, or by a member of the spouse or 
                parent's family residing in the same household as the 
                alien and the spouse or parent consented or acquiesced 
                to such battery or cruelty, or (ii) the alien's child 
                has been battered or subject to extreme cruelty in the 
                United States by a spouse or parent of the alien 
                (without the active participation of the alien in the 
                battery or extreme cruelty), or by a member of the 
                spouse or parent's family residing in the same 
                household as the alien when the spouse or parent 
                consented or acquiesced to and the alien did not 
                actively participate in such battery or cruelty, and 
                (iii) the need for the public benefits applied for has 
                a substantial connection to the battery or cruelty 
                described in subclause (I) or (II); and
                    (B) for more than 48 months if the alien can 
                demonstrate that any battery or cruelty under 
                subparagraph (A) is ongoing, has led to the issuance of 
                an order of a judge or an administrative law judge or a 
                prior determination of the Service, and that the need 
                for such benefits has a substantial connection to such 
                battery or cruelty.
    (c) Federal Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this title the term ``Federal public benefit'' means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an agency of 
                the United States or by appropriated funds of the 
                United States; and
                    (B) any retirement, welfare, health, disability, 
                public or assisted housing, post-secondary education, 
                food assistance, unemployment benefit, or any other 
                similar benefit for which payments or assistance are 
                provided to an individual, household, or family 
                eligibility unit by an agency of the United States or 
                by appropriated funds of the United States.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, or 
                commercial license for a nonimmigrant whose visa for 
                entry is related to such employment in the United 
                States; or
                    (B) with respect to benefits for an alien who as a 
                work authorized nonimmigrant or as an alien lawfully 
                admitted for permanent residence under the Immigration 
                and Nationality Act qualified for such benefits and for 
                whom the United States under reciprocal treaty 
                agreements is required to pay benefits, as determined 
                by the Attorney General, after consultation with the 
                Secretary of State.

SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED ALIENS FOR CERTAIN 
              FEDERAL PROGRAMS.

    (a) Limited Eligibility for Specified Federal Programs.--
            (1) In general.--Notwithstanding any other provision of law 
        and except as provided in paragraph (2), an alien who is a 
        qualified alien (as defined in section 431) is not eligible for 
        any specified Federal program (as defined in paragraph (3)).
            (2) Exceptions.--
                    (A) Time-limited exception for refugees and 
                asylees.--Paragraph (1) shall not apply to an alien 
                until 5 years after the date--
                            (i) an alien is admitted to the United 
                        States as a refugee under section 207 of the 
                        Immigration and Nationality Act;
                            (ii) an alien is granted asylum under 
                        section 208 of such Act; or
                            (iii) an alien's deportation is withheld 
                        under section 243(h) of such Act.
                    (B) Certain permanent resident aliens.--Paragraph 
                (1) shall not apply to an alien who--
                            (i) is lawfully admitted to the United 
                        States for permanent residence under the 
                        Immigration and Nationality Act; and
                            (ii)(I) has worked 20 qualifying quarters 
                        of coverage as defined under title II of the 
                        Social Security Act or can be credited with 
                        such qualifying quarters as provided under 
                        section 435, and (II) did not receive any 
                        Federal means-tested public benefit (as defined 
                        in section 403(c)) during any such quarter.
                    (C) Veteran and active duty exception.--Paragraph 
                (1) shall not apply to an alien who is lawfully 
                residing in any State and is--
                            (i) a veteran (as defined in section 101 of 
                        title 38, United States Code) with a discharge 
                        characterized as an honorable discharge and not 
                        on account of alienage,
                            (ii) on active duty (other than active duty 
                        for training) in the Armed Forces of the United 
                        States, or
                            (iii) the spouse or unmarried dependent 
                        child of an individual described in clause (i) 
                        or (ii).
                    (D) Transition for aliens currently receiving 
                benefits.--
                            (i) SSI.--
                                    (I) In general.--With respect to 
                                the specified Federal program described 
                                in paragraph (3)(A), during the period 
                                beginning on the date of the enactment 
                                of this Act and ending on the date 
                                which is 1 year after such date of 
                                enactment, the Commissioner of Social 
                                Security shall redetermine the 
                                eligibility of any individual who is 
                                receiving benefits under such program 
                                as of the date of the enactment of this 
                                Act and whose eligibility for such 
                                benefits may terminate by reason of the 
                                provisions of this subsection.
                                    (II) Redetermination criteria.-- 
                                With respect to any redetermination 
                                under subclause (I), the Commissioner 
                                of Social Security shall apply the 
                                eligibility criteria for new applicants 
                                for benefits under such program.
                                    (III) Grandfather provision.--The 
                                provisions of this subsection and the 
                                redetermination under subclause (I), 
                                shall only apply with respect to the 
                                benefits of an individual described in 
                                subclause (I) for months beginning on 
                                or after the date of the 
                                redetermination with respect to such 
                                individual.
                                    (IV) Notice.--Not later than 
                                January 1, 1997, the Commissioner of 
                                Social Security shall notify an 
                                individual described in subclause (I) 
                                of the provisions of this clause.
                            (ii) Food stamps.--
                                    (I) In general.--With respect to 
                                the specified Federal program described 
                                in paragraph (3)(B), during the period 
                                beginning on the date of enactment of 
                                this Act and ending on the date which 
                                is 1 year after the date of enactment, 
                                the State agency shall, at the time of 
                                the recertification, recertify the 
                                eligibility of any individual who is 
                                receiving benefits under such program 
                                as of the date of enactment of this Act 
                                and whose eligibility for such benefits 
                                may terminate by reason of the 
                                provisions of this subsection.
                                    (II) Recertification criteria.--
                                With respect to any recertification 
                                under subclause (I), the State agency 
                                shall apply the eligibility criteria 
                                for applicants for benefits under such 
                                program.
                                    (III) Grandfather provision.--The 
                                provisions of this subsection and the 
                                recertification under subclause (I) 
                                shall only apply with respect to the 
                                eligibility of an alien for a program 
                                for months beginning on or after the 
                                date of recertification, if on the date 
                                of enactment of this Act the alien is 
                                lawfully residing in any State and is 
                                receiving benefits under such program 
                                on such date of enactment.
                    (E) FICA exception.--Paragraph (1) shall not apply 
                to an alien if there has been paid with respect to the 
                self-employment income or employment of the alien, or 
                of a parent or spouse of the alien, taxes under chapter 
                2 or chapter 21 of the Internal Revenue Code of 1986 in 
                each of 20 different calendar quarters.
                    (F) Exception for battered women and children.--
                Paragraph (1) shall not apply--
                            (i) for up to 48 months if the alien can 
                        demonstrate that (I) the alien has been 
                        battered or subject to extreme cruelty in the 
                        United States by a spouse or parent, or by a 
                        member of the spouse or parent's family 
                        residing in the same household as the alien and 
                        the spouse or parent consented or acquiesced to 
                        such battery or cruelty, or (II) the alien's 
                        child has been battered or subject to extreme 
                        cruelty in the United States by a spouse or 
                        parent of the alien (without the active 
                        participation of the alien in the battery or 
                        extreme cruelty), or by a member of the spouse 
                        or parent's family residing in the same 
                        household as the alien when the spouse or 
                        parent consented or acquiesced to and the alien 
                        did not actively participate in such battery or 
                        cruelty, and (III) the need for the public 
                        benefits applied for has a substantial 
                        connection to the battery or cruelty described 
                        in this clause; and
                            (ii) for more than 48 months if the alien 
                        can demonstrate that any battery or cruelty 
                        under clause (i) is ongoing, has led to the 
                        issuance of an order of a judge or an 
                        administrative law judge or a prior 
                        determination of the Service, and that need for 
                        such benefits has a substantial connection to 
                        such battery or cruelty.
                    (G) SSI disability exception.--Paragraph (1) shall 
                not apply to an alien who has not attained 18 years of 
                age and is eligible by reason of disability for 
                supplemental security income benefits under title XVI 
                of the Social Security Act.
                    (H) Food stamp exception for children.--Paragraph 
                (1) shall not apply to the eligibility of an alien who 
                has not attained 18 years of age for the food stamp 
                program under paragraph (3)(B).
            (3) Specified federal program defined.--For purposes of 
        this title, the term ``specified Federal program'' means any of 
        the following:
                    (A) SSI.--The supplemental security income program 
                under title XVI of the Social Security Act.
                    (B) Food stamps.--The food stamp program as defined 
                in section 3(h) of the Food Stamp Act of 1977.
    (b) Limited Eligibility for Designated Federal Programs.--
            (1) In general.--Notwithstanding any other provision of law 
        and except as provided in section 403 and paragraph (2), a 
        State is authorized to determine the eligibility of an alien 
        who is a qualified alien (as defined in section 431) for any 
        designated Federal program (as defined in paragraph (3)).
            (2) Exceptions.--Qualified aliens under this paragraph 
        shall be eligible for any designated Federal program.
                    (A) Time-limited exception for refugees and 
                asylees.--
                            (i) An alien who is admitted to the United 
                        States as a refugee under section 207 of the 
                        Immigration and Nationality Act until 5 years 
                        after the date of an alien's entry into the 
                        United States.
                            (ii) An alien who is granted asylum under 
                        section 208 of such Act until 5 years after the 
                        date of such grant of asylum.
                            (iii) An alien whose deportation is being 
                        withheld under section 243(h) of such Act until 
                        5 years after such withholding.
                    (B) Certain permanent resident aliens.--An alien 
                who--
                            (i) is lawfully admitted to the United 
                        States for permanent residence under the 
                        Immigration and Nationality Act; and
                            (ii)(I) has worked 20 qualifying quarters 
                        of coverage as defined under title II of the 
                        Social Security Act or can be credited with 
                        such qualifying quarters as provided under 
                        section 435, and (II) did not receive any 
                        Federal means-tested public benefit (as defined 
                        in section 403(c)) during any such quarter.
                    (C) Veteran and active duty exception.--An alien 
                who is lawfully residing in any State and is--
                            (i) a veteran (as defined in section 101 of 
                        title 38, United States Code) with a discharge 
                        characterized as an honorable discharge and not 
                        on account of alienage,
                            (ii) on active duty (other than active duty 
                        for training) in the Armed Forces of the United 
                        States, or
                            (iii) the spouse or unmarried dependent 
                        child of an individual described in clause (i) 
                        or (ii).
                    (D) Transition for those currently receiving 
                benefits.--An alien who on the date of the enactment of 
                this Act is lawfully residing in any State and is 
                receiving benefits under such program on the date of 
                the enactment of this Act shall continue to be eligible 
                to receive such benefits until January 1, 1997.
                    (E) FICA exception.--Paragraph (1) shall not apply 
                to an alien if there has been paid with respect to the 
                self-employment income or employment of the alien, or 
                of a parent or spouse of the alien, taxes under chapter 
                2 or chapter 21 of the Internal Revenue Code of 1986 in 
                each of 20 different calendar quarters.
                    (F) Time-limited exception for battered women and 
                children.--Paragraph (1) shall not apply--
                            (i) for up to 48 months if the alien can 
                        demonstrate that (I) the alien has been 
                        battered or subject to extreme cruelty in the 
                        United States by a spouse or parent, or by a 
                        member of the spouse or parent's family 
                        residing in the same household as the alien and 
                        the spouse or parent consented or acquiesced to 
                        such battery or cruelty, or (II) the alien's 
                        child has been battered or subject to extreme 
                        cruelty in the United States by a spouse or 
                        parent of the alien (without the active 
                        participation of the alien in the battery or 
                        extreme cruelty), or by a member of the spouse 
                        or parent's family residing in the same 
                        household as the alien when the spouse or 
                        parent consented or acquiesced to and the alien 
                        did not actively participate in such battery or 
                        cruelty, and (III) the need for the public 
                        benefits applied for has a substantial 
                        connection to the battery or cruelty described 
                        in subclause (I) or (II); and
                            (ii) for more than 48 months if the alien 
                        can demonstrate that any battery or cruelty 
                        under clause (i) is ongoing, has led to the 
                        issuance of an order of a judge or an 
                        administrative law judge or a prior 
                        determination of the Service, and that the need 
                        for such benefits has a substantial connection 
                        to such battery or cruelty.
                    (G) SSI disability exception.--Paragraph (1) shall 
                not apply to an alien who has not attained 18 years of 
                age and is eligible by reason of disability for 
                supplemental security income benefits under title XVI 
                of the Social Security Act.
            (3) Designated federal program defined.--For purposes of 
        this title, the term ``designated Federal program'' means any 
        of the following:
                    (A) Temporary assistance for needy families.--The 
                program of block grants to States for temporary 
                assistance for needy families under part A of title IV 
                of the Social Security Act.
                    (B) Social services block grant.--The program of 
                block grants to States for social services under title 
                XX of the Social Security Act.

SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR FEDERAL 
              MEANS-TESTED PUBLIC BENEFIT.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), an alien who is a qualified alien 
(as defined in section 431) and who enters the United States on or 
after the date of the enactment of this Act is not eligible for any 
Federal means-tested public benefit (as defined in subsection (c)) for 
a period of five years beginning on the date of the alien's entry into 
the United States with a status within the meaning of the term 
``qualified alien''.
    (b) Exceptions.--The limitation under subsection (a) shall not 
apply to the following aliens:
            (1) Exception for refugees and asylees.--
                    (A) An alien who is admitted to the United States 
                as a refugee under section 207 of the Immigration and 
                Nationality Act.
                    (B) An alien who is granted asylum under section 
                208 of such Act.
                    (C) An alien whose deportation is being withheld 
                under section 243(h) of such Act.
            (2) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge and not on account of 
                alienage,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
            (3) FICA exception.--An alien if there has been paid with 
        respect to the self-employment income or employment of the 
        alien, or of a parent or spouse of the alien, taxes under 
        chapter 2 or chapter 21 of the Internal Revenue Code of 1986 in 
        each of 20 different calendar quarters.
            (4) Exception for battered women and children.--An alien--
                    (A) for up to 48 months if the alien can 
                demonstrate that (i) the alien has been battered or 
                subject to extreme cruelty in the United States by a 
                spouse or parent, or by a member of the spouse or 
                parent's family residing in the same household as the 
                alien and the spouse or parent consented or acquiesced 
                to such battery or cruelty, or (ii) the alien's child 
                has been battered or subject to extreme cruelty in the 
                United States by a spouse or parent of the alien 
                (without the active participation of the alien in the 
                battery or extreme cruelty), or by a member of the 
                spouse or parent's family residing in the same 
                household as the alien when the spouse or parent 
                consented or acquiesced to and the alien did not 
                actively participate in such battery or cruelty, and 
                (iii) the need for the public benefits applied for has 
                a substantial connection to the battery or cruelty 
                described in clause (i) or (ii); and
                    (B) for more than 48 months if the alien can 
                demonstrate that any battery or cruelty under 
                subparagraph (A) is ongoing, has led to the issuance of 
                an order of a judge or an administrative law judge or a 
                prior determination of the Service, and that need for 
                such benefits has a substantial connection to such 
                battery or cruelty.
            (5) SSI disability exception.--An alien who has not 
        attained 18 years of age and is eligible by reason of 
        disability for supplemental security income benefits under 
        title XVI of the Social Security Act.
            (6) Food stamp exception for children.--An alien who has 
        not attained 18 years of age only for purposes of eligibility 
        for the food stamp program as defined in section 3(h) of the 
        Food Stamp Act of 1977.
    (c) Federal Means-Tested Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this title, the term ``Federal means-tested public benefit'' 
        means a public benefit (including cash, medical, housing, and 
        food assistance and social services) of the Federal Government 
        in which the eligibility of an individual, household, or family 
        eligibility unit for benefits, or the amount of such benefits, 
        or both are determined on the basis of income, resources, or 
        financial need of the individual, household, or unit.
            (2) Such term does not include the following:
                    (A) Emergency medical services under title XIX or 
                XXI of the Social Security Act.
                    (B) Short-term, non-cash, in-kind emergency 
                disaster relief.
                    (C) Assistance or benefits under the National 
                School Lunch Act.
                    (D) Assistance or benefits under the Child 
                Nutrition Act of 1966.
                    (E)(i) Public health assistance for immunizations.
                    (ii) Public health assistance for testing and 
                treatment of a serious communicable disease if the 
                Secretary of Health and Human Services determines that 
                it is necessary to prevent the spread of such disease.
                    (F) Payments for foster care and adoption 
                assistance under part B of title IV of the Social 
                Security Act for a child who would, in the absence of 
                subsection (a), be eligible to have such payments made 
                on the child's behalf under such part, but only if the 
                foster or adoptive parent or parents of such child are 
                not described under subsection (a).
                    (G) Programs, services, or assistance (such as soup 
                kitchens, crisis counseling and intervention, and 
                short-term shelter) specified by the Attorney General, 
                in the Attorney General's sole and unreviewable 
                discretion after consultation with appropriate Federal 
                agencies and departments, which (i) deliver in-kind 
                services at the community level, including through 
                public or private nonprofit agencies; (ii) do not 
                condition the provision of assistance, the amount of 
                assistance provided, or the cost of assistance provided 
                on the individual recipient's income or resources; and 
                (iii) are necessary for the protection of life or 
                safety.
                    (H) Programs of student assistance under titles IV, 
                V, IX, and X of the Higher Education Act of 1965.
                    (I) Means-tested programs under the Elementary and 
                Secondary Education Act of 1965.
                    (J) The program of medical assistance under title 
                XIX and title XXI of the Social Security Act.

SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

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

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

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

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

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

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

SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR NONIMMIGRANTS 
              INELIGIBLE FOR STATE AND LOCAL PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (d), an alien who is not 
described under a paragraph of this subsection is not eligible for any 
State or local public benefit (as defined in subsection (c)):
            (1) A qualified alien (as defined in section 431).
            (2) A nonimmigrant under the Immigration and Nationality 
        Act.
            (3) An alien who is paroled into the United States under 
        section 212(d)(5) of such Act for less than one year.
            (4) An alien--
                    (A) for up to 48 months if the alien can 
                demonstrate that (i) the alien has been battered or 
                subject to extreme cruelty in the United States by a 
                spouse or parent, or by a member of the spouse or 
                parent's family residing in the same household as the 
                alien and the spouse or parent consented or acquiesced 
                to such battery or cruelty, or (ii) the alien's child 
                has been battered or subject to extreme cruelty in the 
                United States by a spouse or parent of the alien 
                (without the active participation of the alien in the 
                battery or extreme cruelty), or by a member of the 
                spouse or parent's family residing in the same 
                household as the alien when the spouse or parent 
                consented or acquiesced to and the alien did not 
                actively participate in such battery or cruelty, and 
                (iii) the need for the public benefits applied for has 
                a substantial connection to the battery or cruelty 
                described in clause (i) or (ii), and
                    (B) for more than 48 months if the alien can 
                demonstrate that any battery or cruelty under 
                subparagraph (A) is ongoing, has led to the issuance of 
                an order of a judge or an administrative law judge or a 
                prior determination of the Service, and that the need 
                for such benefits has a substantial connection to such 
                battery or cruelty.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State or local public benefits:
            (1) Emergency medical services under title XIX or XXI of 
        the Social Security Act.
            (2) Short-term, noncash, in-kind emergency disaster relief.
            (3)(A) Public health assistance for immunizations.
            (B) Public health assistance for testing and treatment of a 
        serious communicable disease if the Secretary of Health and 
        Human Services determines that it is necessary to prevent the 
        spread of such disease.
            (4) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General, in the Attorney 
        General's sole and unreviewable discretion after consultation 
        with appropriate Federal agencies and departments, which (A) 
        deliver in-kind services at the community level, including 
        through public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of assistance 
        provided, or the cost of assistance provided on the individual 
        recipient's income or resources; and (C) are necessary for the 
        protection of life or safety.
    (c) State or Local Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for purposes of 
        this subtitle the term ``State or local public benefit'' 
        means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an agency of 
                a State or local government or by appropriated funds of 
                a State or local government; and
                    (B) any retirement, welfare, health, disability, 
                public or assisted housing, post-secondary education, 
                food assistance, unemployment benefit, or any other 
                similar benefit for which payments or assistance are 
                provided to an individual, household, or family 
                eligibility unit by an agency of a State or local 
                government or by appropriated funds of a State or local 
                government.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, or 
                commercial license for a nonimmigrant whose visa for 
                entry is related to such employment in the United 
                States; or
                    (B) with respect to benefits for an alien who as a 
                work authorized nonimmigrant or as an alien lawfully 
                admitted for permanent residence under the Immigration 
                and Nationality Act qualified for such benefits and for 
                whom the United States under reciprocal treaty 
                agreements is required to pay benefits, as determined 
                by the Secretary of State, after consultation with the 
                Attorney General.
    (d) State Authority To Provide For Eligibility of Illegal Aliens 
for State and Local Public Benefits.--A State may provide that an alien 
who is not lawfully present in the United States is eligible for any 
State or local public benefit for which such alien would otherwise be 
ineligible under subsection (a) only through the enactment of a State 
law after the date of the enactment of this Act which affirmatively 
provides for such eligibility.

SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED ALIENS FOR 
              STATE PUBLIC BENEFITS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), a State is authorized to 
determine the eligibility for any State public benefits (as defined in 
subsection (c) of an alien who is a qualified alien (as defined in 
section 431), a nonimmigrant under the Immigration and Nationality Act, 
or an alien who is paroled into the United States under section 
212(d)(5) of such Act for less than one year.
    (b) Exceptions.--Qualified aliens under this subsection shall be 
eligible for any State public benefits.
            (1) Time-limited exception for refugees and asylees.--
                    (A) An alien who is admitted to the United States 
                as a refugee under section 207 of the Immigration and 
                Nationality Act until 5 years after the date of an 
                alien's entry into the United States.
                    (B) An alien who is granted asylum under section 
                208 of such Act until 5 years after the date of such 
                grant of asylum.
                    (C) An alien whose deportation is being withheld 
                under section 243(h) of such Act until 5 years after 
                such withholding.
            (2) Certain permanent resident aliens.--An alien who--
                    (A) is lawfully admitted to the United States for 
                permanent residence under the Immigration and 
                Nationality Act; and
                    (B)(i) has worked 20 qualifying quarters of 
                coverage as defined under title II of the Social 
                Security Act or can be credited with such qualifying 
                quarters as provided under section 435, and (ii) did 
                not receive any Federal means-tested public benefit (as 
                defined in section 403(c)) during any such quarter.
            (3) Veteran and active duty exception.--An alien who is 
        lawfully residing in any State and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge and not on account of 
                alienage,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
            (4) Transition for those currently receiving benefits.--An 
        alien who on the date of the enactment of this Act is lawfully 
        residing in any State and is receiving benefits on the date of 
        the enactment of this Act shall continue to be eligible to 
        receive such benefits until January 1, 1997.
            (5) Exception for battered women and children.--An alien--
                    (A) for up to 48 months if the alien can 
                demonstrate that (i) the alien has been battered or 
                subject to extreme cruelty in the United States by a 
                spouse or parent, or by a member of the spouse or 
                parent's family residing in the same household as the 
                alien and the spouse or parent consented or acquiesced 
                to such battery or cruelty, or (ii) the alien's child 
                has been battered or subject to extreme cruelty in the 
                United States by a spouse or parent of the alien 
                (without the active participation of the alien in the 
                battery or extreme cruelty), or by a member of the 
                spouse or parent's family residing in the same 
                household as the alien when the spouse or parent 
                consented or acquiesced to and the alien did not 
                actively participate in such battery or cruelty, and 
                (iii) the need for the public benefits applied for has 
                a substantial connection to the battery or cruelty 
                described in clause (i) or (ii); and
                    (B) for more than 48 months if the alien can 
                demonstrate that any battery or cruelty under 
                subparagraph (A) is ongoing, has led to the issuance of 
                an order of a judge or an administrative law judge or a 
                prior determination of the Service, and that the need 
                for such benefits has a substantial connection to such 
                battery or cruelty.
    (c) State Public Benefits Defined.--The term ``State public 
benefits'' means any means-tested public benefit of a State or 
political subdivision of a State under which the State or political 
subdivision specifies the standards for eligibility, and does not 
include any Federal public benefit.

      Subtitle C--Attribution of Income and Affidavits of Support

SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO 
              ALIEN FOR PURPOSES OF MEDICAID ELIGIBILITY.

    (a) In General.--Notwithstanding any other provision of law, in 
determining the eligibility and the amount of benefits of an alien 
(other than an alien who has not attained 18 years of age or an alien 
who is pregnant) for the program of medical assistance under title XIX 
and title XXI of the Social Security Act, the income and resources of 
the alien shall be deemed to include the following:
            (1) The income and resources of any person who executed an 
        affidavit of support pursuant to section 213A of the 
        Immigration and Nationality Act (as added by section 423) on 
        behalf of such alien.
            (2) The income and resources of the spouse (if any) of the 
        person.
    (b) Application.--Subsection (a) shall apply with respect to an 
alien (other than an alien who has not attained 18 years of age or an 
alien who is pregnant) until such time as the alien--
            (1) achieves United States citizenship through 
        naturalization pursuant to chapter 2 of title III of the 
        Immigration and Nationality Act; or
            (2)(A) has worked 20 qualifying quarters of coverage as 
        defined under title II of the Social Security Act or can be 
        credited with such qualifying quarters as provided under 
        section 435, and (B) did not receive any Federal means-tested 
        public benefit (as defined in section 403(c)) during any such 
        quarter.
    (c) Review of Income and Resources of Alien Upon Reapplication.--
Whenever an alien (other than an alien who has not attained 18 years of 
age or an alien who is pregnant) is required to reapply for benefits 
under any Federal means-tested public benefits program, the applicable 
agency shall review the income and resources attributed to the alien 
under subsection (a).

SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF SPONSOR'S 
              INCOME AND RESOURCES TO THE ALIEN WITH RESPECT TO STATE 
              PROGRAMS.

    (a) Optional Application to State Programs.--Except as provided in 
subsection (b), in determining the eligibility and the amount of 
benefits of an alien for any State public benefits (as defined in 
section 412(c)), the State or political subdivision that offers the 
benefits is authorized to provide that the income and resources of the 
alien shall be deemed to include--
            (1) the income and resources of any individual who executed 
        an affidavit of support pursuant to section 213A of the 
        Immigration and Nationality Act (as added by section 423) on 
        behalf of such alien, and
            (2) the income and resources of the spouse (if any) of the 
        individual.
    (b) Exceptions.--Subsection (a) shall not apply with respect to the 
following State public benefits:
            (1) Emergency medical services.
            (2) Short-term, noncash, in-kind emergency disaster relief.
            (3) Programs comparable to assistance or benefits under the 
        National School Lunch Act.
            (4) Programs comparable to assistance or benefits under the 
        Child Nutrition Act of 1966.
            (5)(A) Public health assistance for immunizations.
            (B) Public health assistance for testing and treatment of a 
        serious communicable disease if the appropriate chief State 
        health official determines that it is necessary to prevent the 
        spread of such disease.
            (6) Payments for foster care and adoption assistance.
            (7) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and short-term 
        shelter) specified by the Attorney General of a State, 
after consultation with appropriate agencies and departments, which (A) 
deliver in-kind services at the community level, including through 
public or private nonprofit agencies; (B) do not condition the 
provision of assistance, the amount of assistance provided, or the cost 
of assistance provided on the individual recipient's income or 
resources; and (C) are necessary for the protection of life or safety.

SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

    (a) In General.--Title II of the Immigration and Nationality Act is 
amended by inserting after section 213 the following new section:

           ``requirements for sponsor's affidavit of support

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

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

SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

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

                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

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

SEC. 432. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC BENEFITS.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Attorney General of the United States, after 
consultation with the Secretary of Health and Human Services, shall 
promulgate regulations requiring verification that a person applying 
for a Federal public benefit (as defined in section 401(c)), to which 
the limitation under section 401 applies, is a qualified alien and is 
eligible to receive such benefit. Such regulations shall, to the extent 
feasible, require that information requested and exchanged be similar 
in form and manner to information requested and exchanged under section 
1137 of the Social Security Act.
    (b) State Compliance.--Not later than 24 months after the date the 
regulations described in subsection (a) are adopted, a State that 
administers a program that provides a Federal public benefit shall have 
in effect a verification system that complies with the regulations.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purpose of 
this section.

SEC. 433. STATUTORY CONSTRUCTION.

    (a) Limitation.--
            (1) Nothing in this title may be construed as an 
        entitlement or a determination of an individual's eligibility 
        or fulfillment of the requisite requirements for any Federal, 
        State, or local governmental program, assistance, or benefits. 
        For purposes of this title, eligibility relates only to the 
        general issue of eligibility or ineligibility on the basis of 
        alienage.
            (2) Nothing in this title may be construed as addressing 
        alien eligibility for a basic public education as determined by 
        the Supreme Court of the United States under Plyler v. Doe (457 
        U.S. 202)(1982).
    (b) Not Applicable to Foreign Assistance.--This title does not 
apply to any Federal, State, or local governmental program, assistance, 
or benefits provided to an alien under any program of foreign 
assistance as determined by the Secretary of State in consultation with 
the Attorney General.
    (c) Severability.--If any provision of this title or the 
application of such provision to any person or circumstance is held to 
be unconstitutional, the remainder of this title and the application of 
the provisions of such to any person or circumstance shall not be 
affected thereby.

SEC. 434. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT AGENCIES AND 
              THE IMMIGRATION AND NATURALIZATION SERVICE.

    Notwithstanding any other provision of Federal, State, or local 
law, no State or local government entity may be prohibited, or in any 
way restricted, from sending to or receiving from the Immigration and 
Naturalization Service information regarding the immigration status, 
lawful or unlawful, of an alien in the United States.

SEC. 435. QUALIFYING QUARTERS.

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

SEC. 436. TITLE INAPPLICABLE TO PROGRAMS SPECIFIED BY ATTORNEY GENERAL.

     Notwithstanding any other provision of this title, this title or 
any provision of this title shall not apply to programs, services, or 
assistance (such as soup kitchens, crisis counseling and intervention, 
and short term shelter) specified by the Attorney General, in the 
Attorney General's sole and unreviewable discretion after consultation 
with appropriate Federal agencies and departments, which (1) deliver 
services at the community level, including through public or private 
nonprofit agencies; (2) 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 (3) are 
necessary for the protection of life, safety or the public health.

SEC. 437. TITLE INAPPLICABLE TO PROGRAMS OF NONPROFIT CHARITABLE 
              ORGANIZATIONS.

    Notwithstanding any other provision of this title, this title or 
any provision of this title shall not apply to programs, services, or 
assistance of a nonprofit charitable organization, regardless of 
whether such programs, services, or assistance are funded, in whole or 
in part, by the Federal Government or the government of any State or 
political subdivision of a State.

                   Subtitle E--Conforming Amendments

SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

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

          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

SEC. 501. REDUCTIONS.

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

SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

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

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

                   TITLE VI--REFORM OF PUBLIC HOUSING

SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

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

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

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

SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE 
              PROGRAMS.

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

SEC. 603. ANNUAL ADJUSTMENT FACTORS FOR OPERATING COSTS ONLY; RESTRAINT 
              ON RENT INCREASES.

    (a) Annual Adjustment Factors for Operating Costs Only.--Section 
8(c)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(2)(A)) is amended--
            (1) by striking ``(2)(A)'' and inserting ``(2)(A)(i)'';
            (2) by striking the second sentence and all that follows 
        through the end of the subparagraph; and
            (3) by adding at the end the following new clause:
    ``(ii) Each assistance contract under this section shall provide 
that--
            ``(I) if the maximum monthly rent for a unit in a new 
        construction or substantial rehabilitation project to be 
        adjusted using an annual adjustment factor exceeds 100 percent 
        of the fair market rent for an existing dwelling unit in the 
        market area, the Secretary shall adjust the rent using an 
        operating costs factor that increases the rent to reflect 
        increases in operating costs in the market area; and
            ``(II) if the owner of a unit in a project described in 
        subclause (I) demonstrates that the adjusted rent determined 
        under subclause (I) would not exceed the rent for an unassisted 
        unit of similar quality, type, and age in the same market area, 
        as determined by the Secretary, the Secretary shall use the 
        otherwise applicable annual adjustment factor.''.
    (b) Restraint on Section 8 Rent Increases.--Section 8(c)(2)(A) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as 
amended by subsection (a), is amended by adding at the end the 
following new clause:
    ``(iii)(I) Subject to subclause (II), with respect to any unit 
assisted under this section that is occupied by the same family at the 
time of the most recent annual rental adjustment, if the assistance 
contract provides for the adjustment of the maximum monthly rent by 
applying an annual adjustment factor, and if the rent for the unit is 
otherwise eligible for an adjustment based on the full amount of the 
annual adjustment factor, 0.01 shall be subtracted from the amount of 
the annual adjustment factor, except that the annual adjustment factor 
shall not be reduced to less than 1.0.
    ``(II) With respect to any unit described in subclause (I) that is 
assisted under the certificate program, the adjusted rent shall not 
exceed the rent for a comparable unassisted unit of similar quality, 
type, and age in the market area in which the unit is located.''.
    (c) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1996.

SEC. 604. EFFECTIVE DATE.

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

                         TITLE VII--CHILD CARE

SEC. 701. SHORT TITLE AND REFERENCES.

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

SEC. 702. GOALS.

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

SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT AUTHORITY.

    (a) In General.--Section 658B (42 U.S.C. 9858) is amended to read 
as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subchapter $1,000,000,000 for each of the fiscal years 1996 through 
2002.''.
    (b) Social Security Act.--Part A of title IV of the Social Security 
Act (as amended by section 103 of this Act) is amended by redesignating 
section 417 as section 418 and inserting after section 416 the 
following:

``SEC. 417. FUNDING FOR CHILD CARE.

    ``(a) General Child Care Entitlement.--
            ``(1) General entitlement.--Subject to the amount 
        appropriated under paragraph (3), each State shall, for the 
        purpose of providing child care assistance, be entitled to 
        payments under a grant under this subsection for a fiscal year 
        in an amount equal to the greatest of--
                    ``(A) the sum of--
                            ``(i) the total amount required to be paid 
                        to the State under former section 403 for 
                        fiscal year 1994 with respect to amounts 
                        expended for child care under section 402(g) of 
                        this Act (as such section was in effect before 
                        October 1, 1995); and
                            ``(ii) such total amount with respect to 
                        amounts expended for child care under section 
                        403(i) of this Act (as so in effect); or
                    ``(B) the sum described in subparagraph (A) for 
                fiscal year 1995; or
                    ``(C) the average of the total amounts required to 
                be paid to the State for fiscal years 1992 through 1994 
                under the sections referred to in subparagraph (A).
            ``(2) Remainder.--
                    ``(A) Grants.--The Secretary shall use any amounts 
                appropriated for a fiscal year under paragraph (3), and 
                remaining after the reservation described in paragraph 
                (5) and after grants are awarded under paragraph (1), 
                to make grants to States under this paragraph.
                    ``(B) Amount.--Subject to subparagraph (C), the 
                amount of a grant awarded to a State for a fiscal year 
                under this paragraph shall be based on the formula used 
                for determining the amount of Federal payments to the 
                State under section 403(n) (as such section was in 
                effect before October 1, 1995).
                    ``(C) Matching requirement.--The Secretary shall 
                pay to each eligible State in a fiscal year an amount, 
                under a grant under subparagraph (A), equal to the 
                Federal medical assistance percentage for such State 
                for fiscal year 1995 (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)(1) for such year and the 
                amount of State expenditures in fiscal year 1995 that 
                equal the non-Federal share for the programs described 
                in subparagraphs (A), (B) and (C) of paragraph (1).
            ``(3) Appropriation.--There are authorized to be 
        appropriated, and there are appropriated, to carry out this 
        section--
                    ``(A) $1,967,000,000 for fiscal year 1997;
                    ``(B) $2,067,000,000 for fiscal year 1998;
                    ``(C) $2,167,000,000 for fiscal year 1999;
                    ``(D) $2,367,000,000 for fiscal year 2000;
                    ``(E) $2,567,000,000 for fiscal year 2001; and
                    ``(F) $2,767,000,000 for fiscal year 2002.
            ``(4) Redistribution.--With respect to any fiscal year, if 
        the Secretary determines that amounts under any grant awarded 
        to a State under this subsection for such fiscal year will not 
        be used by such State for carrying out the purpose for which 
        the grant is made, the Secretary shall make such amounts 
        available for carrying out such purpose to 1 or more other 
        States which apply for such funds to the extent the Secretary 
        determines that such other States will be able to use such 
        additional amounts for carrying out such purpose. Such 
        available amounts shall be redistributed to a State pursuant to 
        section 402(i) (as such section was in effect before October 1, 
        1995) by substituting `the number of children residing in all 
        States applying for such funds' for `the number of children 
        residing in the United States in the second preceding fiscal 
        year'. Any amount made available to a State from an 
        appropriation for a fiscal year in accordance with the 
        preceding sentence shall, for purposes of this part, be 
        regarded as part of such State's payment (as determined under 
        this subsection) for such year.
            ``(5) Indian tribes.--The Secretary shall reserve not more 
        than 1 percent of the aggregate amount appropriated to carry 
        out this section in each fiscal year for payments to Indian 
        tribes and tribal organizations.
    ``(b) Use of Funds.--
            ``(1) In general.--Amounts received by a State under this 
        section shall only be used to provide child care assistance.
            ``(2) Use for certain populations.--A State shall ensure 
        that not less than 70 percent of the total amount of funds 
        received by the State in a fiscal year under this section are 
        used to provide child care assistance to families who are 
        receiving assistance under a State program under this part, 
        families who are attempting through work activities to 
        transition off of such assistance program, and families who are 
        at risk of becoming dependent on such assistance program.
    ``(c) Application of Child Care and Development Block Grant Act of 
1990.--Notwithstanding any other provision of law, amounts provided to 
a State under this section shall be transferred to the lead agency 
under the Child Care and Development Block Grant Act of 1990, 
integrated by the State into the programs established by the State 
under such Act, and be subject to requirements and limitations of such 
Act.
    ``(d) Definition.--As used in this section, the term `State' means 
each of the 50 States or the District of Columbia.''.

SEC. 704. LEAD AGENCY.

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

SEC. 705. APPLICATION AND PLAN.

    Section 658E (42 U.S.C. 9858c) is amended--
            (1) in subsection (b)--
                    (A) by striking ``implemented--'' and all that 
                follows through ``(2)'' and inserting ``implemented''; 
                and
                    (B) by striking ``for subsequent State plans'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i) by striking ``, 
                                other than through assistance provided 
                                under paragraph (3)(C),''; and
                                    (II) by striking ``except'' and all 
                                that follows through ``1992'', and 
                                inserting ``and provide a detailed 
                                description of the procedures the State 
                                will implement to carry out the 
                                requirements of this subparagraph'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify''; 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of such procedures'';
                            (iii) in subparagraph (C)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify''; 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of how such record is 
                                maintained and is made available'';
                            (iv) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Consumer education information.--Certify that 
                the State will collect and disseminate to parents of 
                eligible children and the general public, consumer 
                education information that will promote informed child 
                care choices.'';
                            (v) in subparagraph (E), to read as 
                        follows:
                    ``(E) Compliance with state licensing 
                requirements.--
                            ``(i) In general.--Certify that the State 
                        has in effect licensing requirements applicable 
                        to child care services provided within the 
                        State, and provide a detailed description of 
                        such requirements and of how such requirements 
                        are effectively enforced. Nothing in the 
                        preceding sentence shall be construed to 
                        require that licensing requirements be applied 
                        to specific types of providers of child care 
                        services.
                            ``(ii) Indian tribes and tribal 
                        organizations.--In lieu of any licensing and 
                        regulatory requirements applicable under State 
                        and local law, the Secretary, in consultation 
                        with Indian tribes and tribal organizations, 
                        shall develop minimum child care standards 
                        (that appropriately reflect tribal needs and 
                        available resources) that shall be applicable 
                        to Indian tribes and tribal organizations 
                        receiving assistance under this subchapter.'';
                            (vi) by striking ``Provide assurances'' and 
                        inserting ``Certify''; and
                            (vii) by striking subparagraphs (H), (I), 
                        and (J) and inserting the following:
                    ``(G) Meeting the needs of certain populations.--
                Demonstrate the manner in which the State will meet the 
                specific child care needs of families who are receiving 
                assistance under a State program under part A of title 
                IV of the Social Security Act, families who are 
                attempting through work activities to transition off of 
                such assistance program, and families who are at risk 
                of becoming dependent on such assistance program.
                    ``(H) Preserving parental choice.--Certify that the 
                State will not implement any policy or practice which 
                has the effect of significantly restricting parental 
                choice by--
                            ``(i) expressly or effectively excluding 
                        any category of care or type of provider within 
                        a category of care;
                            ``(ii) limiting parental access to or 
                        choices from among various categories of care 
                        or types of providers; or
                            ``(iii) excluding a significant number of 
                        providers in any category of care.
                    ``(I) Informing parents of options.--Provides 
                assurances that parents will be informed regarding 
                their options under this section, including the option 
                to receive a child care certificate or voucher.'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking ``(B) 
                        and (C)'' and inserting ``(B) through (D)'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``.--Subject to the 
                                reservation contained in subparagraph 
                                (C), the'' and inserting ``and related 
                                activities.--The'';
                                    (II) in clause (i) by striking ``; 
                                and'' at the end and inserting a 
                                period;
                                    (III) by striking ``for--'' and all 
                                that follows through ``section 
                                658E(c)(2)(A)'' and inserting ``for 
                                child care services on sliding fee 
                                scale basis, activities that improve 
                                the quality or availability of such 
                                services, and any other activity that 
                                the State deems appropriate to realize 
                                any of the goals specified in 
                                paragraphs (2) through (5) of section 
                                658A(b)''; and
                                    (IV) by striking clause (ii);
                            (iii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) Limitation on administrative costs.--Not more 
                than 5 percent of the aggregate amount of funds 
                available to the State to carry out this subchapter by 
                a State in each fiscal year may be expended for 
                administrative costs incurred by such State to carry 
                out all of its functions and duties under this 
                subchapter. As used in the preceding sentence, the term 
                `administrative costs' shall not include the costs of 
                providing direct services.''; and
                            (iv) by adding at the end thereof the 
                        following:
                    ``(D) Assistance for certain families.--A State 
                shall ensure that a substantial portion of the amounts 
                available (after the State has complied with the 
                requirement of section 417(b)(2) of the Social Security 
                Act with respect to each of the fiscal years 1997 
                through 2002) to the State to carry out activities this 
                subchapter in each fiscal year is used to provide 
                assistance to low-income working families other than 
                families described in paragraph (2)(F).''; and
                    (C) in paragraph (4)(A)--
                            (i) by striking ``provide assurances'' and 
                        inserting ``certify'';
                            (ii) in the first sentence by inserting 
                        ``and shall provide a summary of the facts 
                        relied on by the State to determine that such 
                        rates are sufficient to ensure such access'' 
                        before the period; and
                            (iii) by striking the last sentence.

SEC. 706. LIMITATION ON STATE ALLOTMENTS.

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

SEC. 707. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

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

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

    ``A State that receives funds to carry out this subchapter for a 
fiscal year, shall use not less than 4 percent of the amount of such 
funds for activities that are designed to provide comprehensive 
consumer education to parents and the public, activities that increase 
parental choice, and activities designed to improve the quality and 
availability of child care (such as resource and referral services).''.

SEC. 708. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- AND AFTER-
              SCHOOL CARE REQUIREMENT.

    Section 658H (42 U.S.C. 9858f) is repealed.

SEC. 709. ADMINISTRATION AND ENFORCEMENT.

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

SEC. 710. PAYMENTS.

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

SEC. 711. ANNUAL REPORT AND AUDITS.

    Section 658K (42 U.S.C. 9858i) is amended--
            (1) in the section heading by striking ``annual report'' 
        and inserting ``reports'';
            (2) in subsection (a), to read as follows:
    ``(a) Reports.--
            ``(1) Collection of information by states.--
                    ``(A) In general.--A State that receives funds to 
                carry out this subchapter shall collect the information 
                described in subparagraph (B) on a monthly basis.
                    ``(B) Required information.--The information 
                required under this subparagraph shall include, with 
                respect to a family unit receiving assistance under 
                this subchapter information concerning--
                            ``(i) family income;
                            ``(ii) county of residence;
                            ``(iii) the gender, race, and age of 
                        children receiving such assistance;
                            ``(iv) whether the family includes only 1 
                        parent;
                            ``(v) the sources of family income, 
                        including the amount obtained from (and 
                        separately identified)--
                                    ``(I) employment, including self-
                                employment;
                                    ``(II) cash or other assistance 
                                under part A of title IV of the Social 
                                Security Act;
                                    ``(III) housing assistance;
                                    ``(IV) assistance under the Food 
                                Stamp Act of 1977; and
                                    ``(V) other assistance programs;
                            ``(vi) the number of months the family has 
                        received benefits;
                            ``(vii) the type of child care in which the 
                        child was enrolled (such as family child care, 
                        home care, or center-based child care);
                            ``(viii) whether the child care provider 
                        involved was a relative;
                            ``(ix) the cost of child care for such 
                        families; and
                            ``(x) the average hours per week of such 
                        care;
                during the period for which such information is 
                required to be submitted.
                    ``(C) Submission to secretary.--A State described 
                in subparagraph (A) shall, on a quarterly basis, submit 
                the information required to be collected under 
                subparagraph (B) to the Secretary.
                    ``(D) Sampling.--The Secretary may disapprove the 
                information collected by a State under this paragraph 
                if the State uses sampling methods to collect such 
                information.
            ``(2) Biannual reports.--Not later than December 31, 1997, 
        and every 6 months thereafter, a State described in paragraph 
        (1)(A) shall prepare and submit to the Secretary a report that 
        includes aggregate data concerning--
                    ``(A) the number of child care providers that 
                received funding under this subchapter as separately 
                identified based on the types of providers listed in 
                section 658P(5);
                    ``(B) the monthly cost of child care services, and 
                the portion of such cost that is paid for with 
                assistance provided under this subchapter, listed by 
                the type of child care services provided;
                    ``(C) the number of payments made by the State 
                through vouchers, contracts, cash, and disregards under 
                public benefit programs, listed by the type of child 
                care services provided;
                    ``(D) the manner in which consumer education 
                information was provided to parents and the number of 
                parents to whom such information was provided; and
                    ``(E) the total number (without duplication) of 
                children and families served under this subchapter;
        during the period for which such report is required to be 
        submitted.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1) by striking ``a application'' 
                and inserting ``an application'';
                    (B) in paragraph (2) by striking ``any agency 
                administering activities that receive'' and inserting 
                ``the State that receives''; and
                    (C) in paragraph (4) by striking ``entitles'' and 
                inserting ``entitled''.

SEC. 712. REPORT BY THE SECRETARY.

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

SEC. 713. ALLOTMENTS.

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

SEC. 714. DEFINITIONS.

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

SEC. 715. REPEALS.

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

SEC. 716. EFFECTIVE DATE.

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

                  TITLE VIII--CHILD NUTRITION PROGRAMS

                 Subtitle A--National School Lunch Act

SEC. 801. 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 for 24-month period 
                        beginning july 1, 1996.--In the case of the 24-
                        month period 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.
                            ``(iv) 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 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 amendment made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 802. COMMODITY ASSISTANCE.

    (a) In General.--Section 6(g) of the National School Lunch Act (42 
U.S.C. 1755(g)) is amended by striking ``12 percent'' and inserting ``8 
percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 803. STATE DISBURSEMENT TO SCHOOLS.

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

SEC. 804. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

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

SEC. 805. FREE AND REDUCED PRICE POLICY STATEMENT.

    Section 9(b)(2) of the National School Lunch Act (42 U.S.C. 
1758(b)(2)), as amended by section 802(b)(1), is further amended by 
adding at the end the following:
                    ``(C) Free and reduced price policy statement.--
                After the initial submission, a school shall not be 
                required to submit a free and reduced price policy 
                statement to a State educational agency under this Act 
                unless there is a substantive change in the free and 
                reduced price policy of the school. A routine change in 
                the policy of a school, such as an annual adjustment of 
                the income eligibility guidelines for free and reduced 
                price meals, shall not be sufficient cause for 
                requiring the school to submit a policy statement.''.

SEC. 806. SPECIAL ASSISTANCE.

    (a) Reimbursement Rates for Lunches, Breakfasts, and Supplements.--
            (1) In general.--Section 11(a)(3)(B) of the National School 
        Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
                    (A) by designating the second and third sentences 
                as subparagraphs (C) and (D), respectively; and
                    (B) 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 for 12-month period beginning july 
                1, 1996.--In the case of the 12-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.
                    ``(F) Adjustment for school year beginning july 1, 
                1997.--In the case of the school year beginning July 1, 
                1997, 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, 
                                1996; and
                                    ``(II) paid supplements on the 
                                amount of the unrounded adjustment for 
                                paid supplements for the school year 
                                beginning July 1, 1996;
                            ``(ii) adjust each resulting amount in 
                        accordance with subparagraph (C); and
                            ``(iii) round each result to the nearest 
                        lower cent increment.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall become effective on July 1, 1996.
    (b) Financing Based on Need.--Section 11(b) of the Act is amended--
            (1) in the second sentence, by striking ``, within'' and 
        all that follows through ``all States,''; and
            (2) by striking the third sentence.
    (c) Applicability of Other Provisions.--Section 11 of the Act is 
amended--
            (1) by striking subsection (d);
            (2) in subsection (e)(2)--
                    (A) by striking ``The'' and inserting ``On request 
                of the Secretary, the''; and
                    (B) by striking ``each month''; and
            (3) by redesignating subsections (e) and (f), as so 
        amended, as subsections (d) and (e), respectively.

SEC. 807. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 808. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Establishment of Program.--Section 13(a) of the National School 
Lunch Act (42 U.S.C. 1761(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``initiate, 
                maintain, and expand'' and insert ``initiate and 
                maintain''; and
                    (B) in subparagraph (E) of the second sentence, by 
                striking ``the Trust Territory of the Pacific 
                Islands,''; and
            (2) in paragraph (7)(A), by striking ``Except as provided 
        in subparagraph (C), private'' and inserting ``Private''.
    (b) Service Institutions.--Section 13(b) of the Act is amended by 
striking ``(b)(1)'' and all that follows through the end of paragraph 
(1) and inserting the following:
    ``(b) Service Institutions.--
            ``(1) Payments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, payments to service institutions shall 
                equal the full cost of food service operations (which 
                cost shall include the costs of obtaining, preparing, 
                and serving food, but shall not include administrative 
                costs).
                    ``(B) Maximum amounts.--Subject to subparagraph 
                (C), payments to any institution under subparagraph (A) 
                shall not exceed--
                            ``(i) $2.00 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.''.
    (c) Administration of Service Institutions.--Section 13(b)(2) of 
the Act is amended--
            (1) in the first sentence, by striking ``four meals'' and 
        inserting ``3 meals, or 2 meals and 1 supplement,''; and
            (2) by striking the second sentence.
    (d) Reimbursements.--Section 13(c)(2) of the Act is amended--
            (1) by striking subparagraph (A);
            (2) in subparagraph (B)--
                    (A) in the first sentence--
                            (i) by striking ``, and such higher 
                        education institutions,''; and
                            (ii) by striking ``without application'' 
                        and inserting ``upon showing residence in areas 
                        in which poor economic conditions exist or on 
                        the basis of income eligibility statements for 
                        children enrolled in the program''; and
                    (B) by adding at the end the following: ``The 
                higher education institutions referred to in the 
                preceding sentence shall be eligible to participate in 
                the program under this paragraph without 
                application.'';
            (3) in subparagraph (C)(ii), by striking ``severe need''; 
        and
            (4) by redesignating subparagraphs (B) through (E), as so 
        amended, as subparagraphs (A) through (D), respectively.
    (e) Advance Program Payments.--Section 13(e)(1) of the Act is 
amended--
            (1) by striking ``institution: Provided, That (A) the'' and 
        inserting ``institution. The'';
            (2) by inserting ``(excluding a school)'' after ``any 
        service institution''; and
            (3) by striking ``responsibilities, and (B) no'' and 
        inserting ``responsibilities. No''.
    (f) Food Requirements.--Section 13(f) of the Act is amended--
            (1) by redesignating the first through seventh sentences as 
        paragraphs (1) through (7), respectively;
            (2) by striking paragraph (3), as redesignated by paragraph 
        (1);
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking ``the first sentence'' and inserting ``paragraph 
        (1)'';
            (4) in paragraph (6), as redesignated by paragraph (1), by 
        striking ``that bacteria levels'' and all that follows through 
        the period at the end and inserting ``conformance with 
        standards set by local health authorities.''; and
            (5) by redesignating paragraphs (4) through (7), as 
        redesignated by paragraph (1), as paragraphs (3) through (6), 
        respectively.
    (g) Permitting Offer Versus Serve.--Section 13(f) of the Act, as 
amended by subsection (f), is further amended by adding at the end the 
following:
            ``(7) Offer versus serve.--A school food authority 
        participating as a service institution may permit a child 
        attending a site on school premises operated directly by the 
        authority to refuse not more than 1 item of a meal that the 
        child does not intend to consume. A refusal of an offered food 
        item shall not affect the amount of payments made under this 
        section to a school for the meal.''.
    (h) Health Department Inspections.--Section 13(k) of the Act is 
amended by striking paragraph (3).
    (i) Food Service Management Companies.--Section 13(l) of the Act is 
amended--
            (1) by striking paragraph (4);
            (2) in paragraph (5), by striking the first sentence; and
            (3) by redesignating paragraph (5), as so amended, as 
        paragraph (4).
    (j) Records.--The second sentence of section 13(m) of the Act is 
amended by striking ``at all times be available'' and inserting ``be 
available at any reasonable time''.
    (k) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of 
the Act is amended by striking ``, and its plans and schedule for 
informing service institutions of the availability of the program''.
    (l) Plan.--Section 13(n) of the Act is amended--
            (1) in paragraph (2), by striking ``including the State's 
        methods of assessing need'';
            (2) by striking paragraph (3);
            (3) in paragraph (4), by striking ``and schedule''; and
            (4) by redesignating paragraphs (4) through (7), as so 
        amended, as paragraphs (3) through (6), respectively.
    (m) Monitoring and Training.--Section 13(q) of the Act is amended--
            (1) by striking paragraphs (2) and (4);
            (2) in paragraph (3), by striking ``paragraphs (1) and (2) 
        of this subsection'' and inserting ``paragraph (1)''; and
            (3) by redesignating paragraph (3), as so amended, as 
        paragraph (2).
    (n) Expired Program.--Section 13 of the Act is amended--
            (1) by striking subsection (p); and
            (2) by redesignating subsections (q) and (r), as so 
        amended, as subsections (p) and (q), respectively.
    (o) Effective Date.--The amendments made by subsection (b) shall 
become effective on January 1, 1996.

SEC. 809. COMMODITY DISTRIBUTION.

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

SEC. 810. CHILD CARE FOOD PROGRAM.

    (a) Establishment of Program.--Section 17 of the National School 
Lunch Act (42 U.S.C. 1766) is amended--
            (1) in the section heading, by striking ``and adult''; and
            (2) in the first sentence of subsection (a), by striking 
        ``initiate, maintain, and expand'' and inserting ``initiate and 
        maintain''.
    (b) Institutions Providing Child Care.--Section 17(a) of the Act 
(42 U.S.C. 1766(a)) is amended--
            (1) in the second sentence--
                    (A) by inserting ``the Child Care and Development 
                Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) or'' 
                after ``from amounts granted to the States under''; and
                    (B) by striking ``(but only if'' and all that 
                follows and inserting a period; and
            (2) in the fourth sentence, by striking ``Reimbursement'' 
        and inserting ``Notwithstanding the type of institution 
        providing the meal or supplement, reimbursement''.
    (c) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the Act (42 U.S.C. 1766(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day care 
                home sponsoring organization that employs more than 1 
                employee, the organization does not base payments to an 
                employee of the organization on the number of family or 
                group day care homes recruited.''.
    (d) Technical Assistance.--The last sentence of section 17(d)(1) of 
the Act is amended by striking ``, and shall provide technical 
assistance'' and all that follows through ``its application''.
    (e) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--Section 
        17(f)(3) of the Act is amended by striking ``(3)(A) 
        Institutions'' and all that follows through the end of 
        subparagraph (A) and inserting the following:
            ``(3) Reimbursement of family or group day care home 
        sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution that 
                        participates in the program under this section 
                        as a family or group day care home sponsoring 
                        organization shall be provided, for payment to 
                        a home sponsored by the organization, 
                        reimbursement factors in accordance with this 
                        subparagraph for the cost of obtaining and 
                        preparing food and prescribed labor costs 
                        involved in providing meals under this section.
                            ``(ii) Tier i family or group day care 
                        homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I family or 
                                group day care home' means--
                                            ``(aa) a family or group 
                                        day care home that is located 
                                        in a geographic area, as 
                                        defined by the Secretary based 
                                        on census data, in which at 
                                        least 50 percent of the 
                                        children residing in the area 
                                        are members of households whose 
                                        incomes meet the income 
                                        eligibility guidelines for free 
                                        or reduced price meals under 
                                        section 9;
                                            ``(bb) a family or group 
                                        day care home that is located 
                                        in an area served by a school 
                                        enrolling elementary students 
                                        in which at least 50 percent of 
                                        the total number of children 
                                        enrolled are certified eligible 
                                        to receive free or reduced 
                                        price school meals under this 
                                        Act or the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or group 
                                        day care home that is operated 
                                        by a provider whose household 
                                        meets the income eligibility 
                                        guidelines for free or reduced 
                                        price meals under section 9 and 
                                        whose income is verified by the 
                                        sponsoring or 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 
                                        $1.00 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 amendment 
                                        to subparagraph (A) made by 
                                        section 808(d)(1) of the 
                                        Personal Responsibility and 
                                        Work Opportunity Act of 1996.
                            ``(ii) Allocation.--The Secretary shall 
                        allocate from the funds reserved under clause 
                        (i)(I)--
                                    ``(I) $30,000 in base funding to 
                                each State; and
                                    ``(II) any remaining amount among 
                                the States, based on the number of 
                                family day care homes participating in 
                                the program in a State during fiscal 
year 1994 as a percentage of the number of all family day care homes 
participating in the program during fiscal year 1994.
                            ``(iii) Retention of funds.--Of the amount 
                        of funds made available to a State for fiscal 
                        year 1996 under clause (i), the State may 
                        retain not to exceed 30 percent of the amount 
                        to carry out this subparagraph.
                            ``(iv) Additional payments.--Any payments 
                        received under this subparagraph shall be in 
                        addition to payments that a State receives 
                        under subparagraph (A).''.
            (3) Provision of data.--Section 17(f)(3) of the Act, as 
        amended by paragraph (2), is further amended by adding at the 
        end the following:
                    ``(E) Provision of data to family or group day care 
                home sponsoring organizations.--
                            ``(i) Census data.--The Secretary shall 
                        provide to each State agency administering a 
                        child care food program under this section data 
                        from the most recent decennial census survey or 
                        other appropriate census survey for which the 
                        data are available showing which areas in the 
                        State meet the requirements of subparagraph 
                        (A)(ii)(I)(aa). The State agency shall provide 
                        the data to family or group day care home 
                        sponsoring organizations located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State agency 
                                administering the school lunch program 
                                under this Act or the school breakfast 
                                program under the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et seq.) shall 
                                provide to approved family or group day 
                                care home sponsoring organizations a 
                                list of schools serving elementary 
                                school children in the State in which 
                                not less than \1/2\ of the children 
                                enrolled are certified to receive free 
                                or reduced price meals. The State 
                                agency shall collect the data necessary 
                                to create the list annually and provide 
                                the list on a timely basis to any 
                                approved family or group day care home 
                                sponsoring organization that requests 
                                the list.
                                    ``(II) Use of data from preceding 
                                school year.--In determining for a 
                                fiscal year or other annual period 
                                whether a home qualifies as a tier I 
                                family or group day care home under 
                                subparagraph (A)(ii)(I), the State 
                                agency administering the program under 
                                this section, and a family or group day 
                                care home sponsoring organization, 
                                shall use the most current available 
                                data at the time of the determination.
                            ``(iii) Duration of determination.--For 
                        purposes of this section, a determination that 
                        a family or group day care home is located in 
                        an area that qualifies the home as a tier I 
                        family or group day care home (as the term is 
                        defined in subparagraph (A)(ii)(I)), shall be 
                        in effect for 3 years (unless the determination 
                        is made on the basis of census data, in which 
                        case the determination shall remain in effect 
                        until more recent census data are available) 
                        unless the State agency determines that the 
                        area in which the home is located no longer 
                        qualifies the home as a tier I family or group 
                        day care home.''.
            (4) Conforming amendments.--Section 17(c) of the Act is 
        amended by inserting ``except as provided in subsection 
        (f)(3),'' after ``For purposes of this section,'' each place it 
        appears in paragraphs (1), (2), and (3).
    (f) Reimbursement.--Section 17(f) of the Act is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking the third and 
                fourth sentences; and
                    (B) in subparagraph (C)--
                            (i) in clause (i)--
                                    (I) by striking ``(i)'';
                                    (II) in the first sentence, by 
                                striking ``and expansion funds'' and 
                                all that follows through ``rural 
                                areas'';
                                    (III) by striking the second 
                                sentence; and
                                    (IV) by striking ``and expansion 
                                funds'' each place it appears; and
                            (ii) by striking clause (ii); and
            (2) by striking paragraph (4).
    (g) Nutritional Requirements.--Section 17(g)(1) of the Act is 
amended--
            (1) in subparagraph (A), by striking the second sentence; 
        and
            (2) in subparagraph (B), by striking the second sentence.
    (h) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this section shall provide sufficient 
training, technical assistance, and monitoring to facilitate effective 
operation of the program. The Secretary shall assist the State in 
developing plans to fulfill the requirements of this subsection.''.
    (i) Records.--The second sentence of section 17(m) of the Act is 
amended by striking ``at all times'' and inserting ``at any reasonable 
time''.
    (j) Modification of Adult Care Food Program.--Section 17(o) of the 
Act is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``adult day care centers'' and 
                inserting ``day care centers for chronically impaired 
                disabled persons''; and
                    (B) by striking ``to persons 60 years of age or 
                older or''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``adult day care center'' 
                        and inserting ``day care center for chronically 
                        impaired disabled persons''; and
                            (ii) in clause (i)--
                                    (I) by striking ``adult'';
                                    (II) by striking ``adults'' and 
                                inserting ``persons''; and
                                    (III) by striking ``or persons 60 
                                years of age or older''; and
                    (B) in subparagraph (B), by striking ``adult day 
                care services'' and inserting ``day care services for 
                chronically impaired disabled persons''.
    (k) Unneeded Provision.--Section 17 of the Act is amended by 
striking subsection (q).
    (l) Conforming Amendments.--
            (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is 
        amended--
                    (A) in the subsection heading, by striking ``and 
                Adult''; and
                    (B) in paragraph (1), by striking ``and adult''.
            (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 
        1769(e)(3)(B)) is amended by striking ``and adult''.
            (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 
        1769f(b)(1)(C)) is amended by striking ``and adult''.
            (4) Section 3(1) of the Healthy Meals for Healthy Americans 
        Act of 1994 (Public Law 103-448) is amended by striking ``and 
        adult''.
    (m) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on the 
        date of enactment of this Act.
            (2) Improved targeting of day care home reimbursements.--
        The amendments made by paragraphs (1), (3), and (4) of 
subsection (f) 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 (f); and
                            (ii) section 17(f)(3)(C) of the National 
                        School Lunch Act (42 U.S.C. 1766(f)(3)(C)).
                    (B) Final regulations.--Not later than August 1, 
                1996, the Secretary shall issue final regulations to 
                implement the provisions of law referred to in 
                subparagraph (A).
    (n) Study of Impact of Amendments on Program Participation and 
Family Day Care Licensing.--
            (1) In general.--The Secretary of Agriculture, in 
        conjunction with the Secretary of Health and Human Services, 
        shall study the impact of the amendments made by this section 
        on--
                    (A) the number of family day care homes 
                participating in the child care food program 
                established under section 17 of the National School 
                Lunch Act (42 U.S.C. 1766);
                    (B) the number of day care home sponsoring 
                organizations participating in the program;
                    (C) the number of day care homes that are licensed, 
                certified, registered, or approved by each State in 
                accordance with regulations issued by the Secretary;
                    (D) the rate of growth of the numbers referred to 
                in subparagraphs (A) through (C);
                    (E) the nutritional adequacy and quality of meals 
                served in family day care homes that--
                            (i) received reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive reimbursement after 
                        the amendments made by this section; or
                            (ii) received full reimbursement under the 
                        program prior to the amendments made by this 
                        section but do not receive full reimbursement 
                        after the amendments made by this section; and
                    (F) the proportion of low-income children 
                participating in the program prior to the amendments 
                made by this section and the proportion of low-income 
                children participating in the program after the 
                amendments made by this section.
            (2) Required data.--Each State agency participating in the 
        child care food program under section 17 of the National School 
        Lunch Act (42 U.S.C. 1766) shall submit to the Secretary data 
        on--
                    (A) the number of family day care homes 
                participating in the program on July 31, 1996, and July 
                31, 1997;
                    (B) the number of family day care homes licensed, 
                certified, registered, or approved for service on July 
                31, 1996, and July 31, 1997; and
                    (C) such other data as the Secretary may require to 
                carry out this subsection.
            (3) Submission of report.--Not later than 2 years after the 
        effective date of this section, the Secretary shall submit the 
        study required under this subsection to the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate.

SEC. 811. PILOT PROJECTS.

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

SEC. 812. REDUCTION OF PAPERWORK.

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

SEC. 813. INFORMATION ON INCOME ELIGIBILITY.

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

SEC. 814. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

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

SEC. 815. INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 1769g) is 
repealed.

                Subtitle B--Child Nutrition Act of 1966

SEC. 821. SPECIAL MILK PROGRAM.

    (a) Definition.--Section 3(a)(3) of the Child Nutrition Act of 1966 
(42 U.S.C. 1772(a)(3)) is amended by striking ``the Trust Territory of 
the Pacific Islands'' and inserting ``the Commonwealth of the Northern 
Mariana Islands''.
    (b) Adjustments to Reimbursements.--
            (1) In general.--Section 3(a) of the Act 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 for 12-month period beginning july 
                1, 1996.--In the case of the 12-month period beginning 
                July 1, 1996, the minimum rate shall be the same as the 
                minimum rate in effect on June 30, 1996, rounded to the 
                nearest lower cent increment.
                    ``(C) Adjustment for school year beginning july 1, 
                1997.--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, 1996;
                            ``(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.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall become effective on July 1, 1996.

SEC. 822. REIMBURSEMENT RATES FOR 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 paragraph (1)(B)--
                    (A) in the first sentence, by striking ``section 
                11(a)'' and inserting ``subparagraphs (B) through (D) 
                of section 11(a)(3)''; and
                    (B) in the second sentence, by striking ``, 
                adjusted to the nearest one-fourth cent'' and inserting 
                ``(as adjusted pursuant to subparagraphs (B) through 
                (D) of section 11(a)(3) of the National School Lunch 
                Act (42 U.S.C. 1759a(a)(3)))''; 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. 823. FREE AND REDUCED PRICE POLICY STATEMENT.

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

SEC. 824. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

SEC. 825. STATE ADMINISTRATIVE EXPENSES.

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

SEC. 826. REGULATIONS.

    Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``(1)''; and
                    (B) by striking paragraphs (2) through (4); and
            (2) in subsection (c)--
                    (A) by striking ``may'' and inserting ``shall'';
                    (B) by inserting ``, except the program authorized 
                under section 17,'' after ``under this Act''; and
                    (C) by adding at the end the following: ``Such 
                regulations shall prohibit the transfer of funds that 
                are used to support meals served to children with 
                incomes below the income eligibility criteria for free 
                or reduced price meals, as provided in section 9(b) of 
                the National School Lunch Act.''.

SEC. 827. PROHIBITIONS.

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

SEC. 828. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 829. ACCOUNTS AND RECORDS.

    The second sentence of section 16(a) of the Child Nutrition Act of 
1966 (42 U.S.C. 1785(a)) is amended by striking ``at all times be 
available'' and inserting ``be available at any reasonable time''.

SEC. 830. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
              AND CHILDREN.

    (a) Definitions.--Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended--
            (1) in paragraph (15)(B)(iii), by inserting ``of not more 
        than 90 days'' after ``accommodation''; and
            (2) in paragraph (16)--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end; and
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C).
    (b) Secretary's Promotion of WIC.--Section 17(c) of the Act is 
amended by striking paragraph (5).
    (c) Eligible Participants.--Section 17(d) of the Act is amended by 
striking paragraph (4).
    (d) Nutrition Education and Drug Abuse Education.--Section 17(e) of 
the Act is amended--
            (1) in the first sentence of paragraph (1), by striking 
        ``shall ensure'' and all that follows through ``is provided'' 
        and inserting ``shall provide nutrition education and may 
        provide drug abuse education'';
            (2) in paragraph (2), by striking the third sentence;
            (3) by striking paragraph (4) and inserting the following:
            ``(4) Information.--The State agency may provide a local 
        agency with materials describing other programs for which 
        participants in the program may be eligible.'';
            (4) in paragraph (5), by striking ``The State'' and all 
        that follows through ``local agency shall'' and inserting ``A 
        local agency may''; and
            (5) by striking paragraph (6).
    (e) State Plan.--Section 17(f) of the Act is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``annually to the 
                        Secretary, by a date specified by the 
                        Secretary, a'' and inserting ``to the 
                        Secretary, by a date specified by the 
                        Secretary, an initial''; and
                            (ii) by adding at the end the following: 
                        ``After submitting the initial plan, a State 
                        shall only be required to submit to the 
                        Secretary for approval a substantive change in 
                        the plan.'';
                    (B) in subparagraph (C)--
                            (i) by striking clause (iii) and inserting 
                        the following:
            ``(iii) a plan to coordinate operations under the program 
        with other services or programs that may benefit participants 
        in, and applicants for, the program;'';
                            (ii) in clause (vi), by inserting after 
                        ``in the State'' the following: ``(including a 
                        plan to improve access to the program for 
                        participants and prospective applicants who are 
                        employed, or who reside in rural areas)'';
                            (iii) by striking clauses (vii), (ix), (x), 
                        and (xii);
                            (iv) in clause (xiii), by striking ``may 
                        require'' and inserting ``may reasonably 
                        require''; and
                            (v) by redesignating clauses (viii), (xi), 
                        and (xiii), as so amended, as clauses (vii), 
                        (viii), and (ix), respectively;
                    (C) by striking subparagraph (D); and
                    (D) by redesignating subparagraph (E) as 
                subparagraph (D);
            (2) by striking paragraphs (2), (6), (8), (20), (22), and 
        (24);
            (3) in the second sentence of paragraph (5), by striking 
        ``at all times be available'' and inserting ``be available at 
        any reasonable time'';
            (4) in paragraph (9)(B), by striking the second sentence;
            (5) in the first sentence of paragraph (11), by striking 
        ``, including standards that will ensure sufficient State 
        agency staff'';
            (6) in paragraph (12), by striking the third sentence;
            (7) in paragraph (14), by striking ``shall'' and inserting 
        ``may'';
            (8) in paragraph (17), by striking ``and to accommodate'' 
        and all that follows through ``facilities'';
            (9) in paragraph (19), by striking ``shall'' and inserting 
        ``may''; and
            (10) by redesignating paragraphs (3), (4), (5), (7), (9) 
        through (19), (21), and (23), as so amended, as paragraphs (2), 
        (3), (4), (5), (6) through (16), (17), and (18), respectively.
    (f) Information.--Section 17(g) of the Act is amended--
            (1) in paragraph (5), by striking ``the report required 
        under subsection (d)(4)'' and inserting ``reports on program 
        participant characteristics''; and
            (2) by striking paragraph (6).
    (g) Procurement of Infant Formula.--
            (1) In general.--Section 17(h) of the Act is amended--
                    (A) in paragraph (4)(E), by striking ``and, on'' 
                and all that follows through ``(d)(4)'';
                    (B) in paragraph (8)--
                            (i) by striking subparagraphs (A), (C), and 
                        (M);
                            (ii) in subparagraph (G)--
                                    (I) in clause (i), by striking 
                                ``(i)''; and
                                    (II) by striking clauses (ii) 
                                through (ix);
                            (iii) in subparagraph (I), by striking 
                        ``Secretary--'' and all that follows through 
                        ``(v) may'' and inserting ``Secretary may'';
                            (iv) by redesignating subparagraphs (B) and 
                        (D) through (L) as subparagraphs (A) and (B) 
                        through (J), respectively;
                            (v) in subparagraph (A)(i), as so 
                        redesignated, by striking ``subparagraphs (C), 
                        (D), and (E)(iii), in carrying out subparagraph 
                        (A),'' and inserting ``subparagraphs (B) and 
                        (C)(iii),'';
                            (vi) in subparagraph (B)(i), as so 
                        redesignated, by striking ``subparagraph (B)'' 
                        each place it appears and inserting 
                        ``subparagraph (A)''; and
                            (vii) in subparagraph (C)(iii), as so 
                        redesignated, by striking ``subparagraph (B)'' 
                        and inserting ``subparagraph (A)''; and
                    (C) in paragraph (10)(A), by striking ``shall'' and 
                inserting ``may''.
            (2) Application.--The amendments made by paragraph (1) 
        shall not apply to a contract for the procurement of infant 
        formula under section 17(h)(8) of the Act that is in effect on 
        the effective date of this subsection.
    (h) National Advisory Council on Maternal, Infant, and Fetal 
Nutrition.--Section 17(k)(3) of the Act is amended by striking 
``Secretary shall designate'' and inserting ``Council shall elect''.
    (i) Completed Study; Community College Demonstration; Grants for 
Information and Data System.--Section 17 of the Act is amended by 
striking subsections (n), (o), and (p).
    (j) Disqualification of Vendors Who Are Disqualified Under the Food 
Stamp Program.--Section 17 of the Act, as so amended, is further 
amended by adding at the end the following:
    ``(n) Disqualification of Vendors Who Are Disqualified Under the 
Food Stamp Program.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing criteria for the disqualification under this section 
        of an approved vendor that is disqualified from accepting 
        benefits under the food stamp program established under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
            ``(2) Terms.--A disqualification under paragraph (1)--
                    ``(A) shall be for the same period as the 
                disqualification from the program referred to in 
                paragraph (1);
                    ``(B) may begin at a later date than the 
                disqualification from the program referred to in 
                paragraph (1); and
                    ``(C) shall not be subject to judicial or 
                administrative review.''.

SEC. 831. CASH GRANTS FOR NUTRITION EDUCATION.

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

SEC. 832. NUTRITION EDUCATION AND TRAINING.

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

SEC. 833. BREASTFEEDING PROMOTION PROGRAM.

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

           TITLE IX--FOOD STAMP PROGRAM AND RELATED PROGRAMS

SEC. 901. DEFINITION OF CERTIFICATION PERIOD.

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

SEC. 902. EXPANDED DEFINITION OF ``COUPON''.

    Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is 
amended by striking ``or type of certificate'' and inserting ``type of 
certificate, authorization cards, cash or checks issued in lieu of 
coupons or access devices, including, but not limited to, electronic 
benefit transfer cards and personal identification numbers''.

SEC. 903. 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. 904. 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 the 
        following:
``scale;
            ``(2) make'';
            (3) by striking ``Alaska, (3) make'' and inserting the 
        following:
``Alaska;
            ``(3) make''; and
            (4) by striking ``Columbia, (4) through'' and all that 
        follows through the end of the subsection and inserting the 
        following:
``Columbia; and
            ``(4) on October 1, 1996, and each October 1 thereafter, 
        adjust the cost of the diet to reflect the cost of the diet, in 
        the preceding June, and round the result to the nearest lower 
        dollar increment for each household size, except that on 
        October 1, 1996, the Secretary may not reduce the cost of the 
        diet in effect on September 30, 1996.''.

SEC. 905. 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. 906. INCOME EXCLUSIONS.

    (a) Exclusion of Certain JTPA Income.--Section 5 of the Food Stamp 
Act of 1977 (7 U.S.C. 2014) is amended--
            (1) in subsection (d)--
                    (A) by striking ``and (16)'' and inserting 
                ``(16)''; and
                    (B) by inserting before the period at the end the 
                following: ``, and (17) income received under the Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.) by a 
                household member who is less than 19 years of age''; 
                and
            (2) in subsection (l), by striking ``under section 
        204(b)(1)(C)'' and all that follows and inserting ``shall be 
        considered earned income for purposes of the food stamp 
        program.''.
    (b) Exclusion of Life Insurance Policies.--Section 5(g) of the Food 
Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end 
the following:
    ``(6) The Secretary shall exclude from financial resources the cash 
value of any life insurance policy owned by a member of a household.''.
    (c) In-Tandem Exclusions From Income.--Section 5 of the Food Stamp 
Act of 1977 (7 U.S.C. 2014) is amended by adding at the end the 
following:
    ``(n) Whenever a Federal statute enacted after the date of the 
enactment of this Act excludes funds from income for purposes of 
determining eligibility, benefit levels, or both under State plans 
approved under part A of title IV of the Social Security Act, then such 
funds shall be excluded from income for purposes of determining 
eligibility, benefit levels, or both, respectively, under the food 
stamp program of households all of whose members receive benefits under 
a State plan approved under part A of title IV of the Social Security 
Act.''.

SEC. 907. DEDUCTIONS FROM INCOME.

    Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is 
amended--
            (1) in the 1st sentence--
                    (A) by striking ``$85'' and inserting ``$134'';
                    (B) by striking ``$145, $120, $170, and $75, 
                respectively'' and inserting the following:
``$229, $189, $269, and $118, respectively, for fiscal year 1996; and a 
standard deduction of $120 a month for each household, except that 
households in Alaska, Hawaii, Guam, and the Virgin Islands of the 
United States shall be allowed a standard deduction of $200, $165, 
$234, and $103, respectively, for fiscal years thereafter, adjusted in 
accordance with this subsection'';
            (2) in the 2nd sentence by striking ``Such'' and all that 
        follows through ``each October 1 thereafter,'' and inserting 
        ``On October 1, 2001, and on each October 1 thereafter, such 
        standard deductions shall be adjusted'';
            (3) by striking the 14th sentence; and
            (4) by inserting after the 9th sentence the following:
``A State agency may make use of a standard utility allowance mandatory 
for all households with qualifying utility costs if 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 if the Secretary finds that the standards will not 
result in an increased cost to the Secretary. A State agency that has 
not made the use of a standard utility allowance mandatory 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.''.

SEC. 908. VEHICLE ALLOWANCE.

    Section 5(g)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) 
is amended to read as follows:
            ``(2) Included assets.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the Secretary shall, in prescribing 
                inclusions in, and exclusions from, financial 
                resources, follow the regulations in force as of June 
                1, 1982 (other than those relating to licensed vehicles 
                and inaccessible resources).
                    ``(B) Additional included assets.--The Secretary 
                shall include in financial resources--
                            ``(i) any boat, snowmobile, or airplane 
                        used for recreational purposes;
                            ``(ii) any vacation home;
                            ``(iii) any mobile home used primarily for 
                        vacation purposes;
                            ``(iv) subject to subparagraph (C), any 
                        licensed vehicle that is used for household 
                        transportation or to obtain or continue 
                        employment to the extent that the fair market 
                        value of the vehicle exceeds a level set by the 
                        Secretary, which shall be $4,600 beginning 
                        October 1, 1995, and adjusted on each October 1 
                        thereafter to reflect changes in the new car 
                        component of the Consumer Price Index for All 
                        Urban Consumers published by the Bureau of 
                        Labor Statistics for the 12-month period ending 
                        on June 30 preceding the date of such 
                        adjustment and rounded to the nearest $50; and
                            ``(v) any savings or retirement account 
                        (including an individual account), regardless 
                        of whether there is a penalty for early 
                        withdrawal.
                    ``(C) Excluded vehicles.--A vehicle (and any other 
                property, real or personal, to the extent the property 
                is directly related to the maintenance or use of the 
                vehicle) shall not be included in financial resources 
                under this paragraph if the vehicle is--
                            ``(i) used to produce earned income;
                            ``(ii) necessary for the transportation of 
                        a physically disabled household member; or
                            ``(iii) depended on by a household to carry 
                        fuel for heating or water for home use and 
                        provides the primary source of fuel or water, 
                        respectively, for the household.''.

SEC. 909. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME.

    Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)(2)) 
is amended--
            (1) by striking subparagraph (F); and
            (2) by redesignating subparagraphs (G) and (H) as 
        subparagraphs (F) and (G), respectively.

SEC. 910. INCREASED 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)--
                    (A) by striking ``six months'' and inserting ``1 
                year''; and
                    (B) by adding ``and'' at the end; and
            (2) striking clauses (ii) and (iii) and inserting the 
        following:
            ``(ii) permanently upon--
                    ``(I) the second occasion of any such 
                determination; or
                    ``(II) the first occasion of a finding by a 
                Federal, State, or local court of the trading of a 
                controlled substance (as defined in section 102 of the 
                Controlled Substances Act (21 U.S.C. 802)), firearms, 
                ammunition, or explosives for coupons.''.

SEC. 911. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

    Section 6(b)(1)(ii) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(1)(iii)), as amended by section 910, is amended--
            (1) in subclause (I), by striking ``or'' at the end;
            (2) in subclause (II), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after subclause (II) the following:
                    ``(IV) a conviction of an offense under subsection 
                (b) or (c) of section 15 involving an item covered by 
                subsection (b) or (c) of section 15 having a value of 
                $500 or more.''.

SEC. 912. 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 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 Food 
        Stamp Act of 1977 (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(f) of the Food Stamp Act of 1977 (7 U.S.C. 
        2029(f)) is amended to read as follows:
    ``(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. 913. CARETAKER EXEMPTION.

    Section 6(d)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(d)(2)(B)) is amended to read as follows: ``(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. 914. 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 (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'';
            (2) in subparagraph (E), by striking the third sentence; 
        AND
            (3) by adding at the end the following:
    ``(O) Notwithstanding any other provision of this paragraph, the 
amount of Federal funds a State agency uses in any fiscal year after 
fiscal year 1996 to carry out this paragraph with respect to 
individuals who receive benefits under a State plan approved under part 
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) shall 
not exceed the amount of Federal funds the State agency used in fiscal 
year 1995 to carry out this paragraph with respect to individuals who 
received benefits under such plan.''.
    (b) Funding.--Section 16(h) of the Food Stamp Act of 1977 (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 $150,000,000 for each of the fiscal years 1996 
                through 2002.
                    ``(B) Allocation.--The Secretary shall allocate the 
                amounts reserved under subparagraph (A) among the State 
                agencies using a reasonable formula (as determined by 
                the Secretary) that gives consideration to the 
                population in each State affected by section 6(o).
                    ``(C) Reallocation.--
                            ``(i) Notification.--A State agency shall 
                        promptly notify the Secretary if the State 
                        agency determines that the State agency will 
                        not expend all of the funds allocated to the 
                        State agency under subparagraph (B).
                            ``(ii) Reallocation.--On notification under 
                        clause (i), the Secretary shall reallocate the 
                        funds that the State agency will not expend as 
                        the Secretary considers appropriate and 
                        equitable.
                    ``(D) Minimum allocation.--Notwithstanding 
                subparagraphs (A) through (C), the Secretary shall 
                ensure that each State agency operating an employment 
                and training program shall receive not less than 
                $50,000 in each fiscal year.''.
    (d) Reports.--Section 16(h) of the Food Stamp Act of 1977 (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. 915. COMPARABLE TREATMENT FOR DISQUALIFICATION.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by adding at the end the following:
    ``(i) Comparable Treatment for Disqualification.--
            ``(1) In general.--If a disqualification is imposed on a 
        member of a household for a failure of the member to perform an 
        action required under a Federal, State, or local law relating 
        to a means-tested public assistance program, the State agency 
        may impose the same disqualification on the member of the 
        household under the food stamp program.
            ``(2) Rules and procedures.--If a disqualification is 
        imposed under paragraph (1) for a failure of an individual to 
        perform an action required under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), the State agency 
        may use the rules and procedures that apply under part A of 
        title IV of such 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 Food Stamp Act of 
1977 (7 U.S.C. 2020(e)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(26) the guidelines the State agency uses in carrying out 
        section 6(i); and''.
    (c) Conforming Amendment.--Section 6(d)(2)(A) of the Food Stamp Act 
of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking ``that is 
comparable to a requirement of paragraph (1)''.

SEC. 916. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP BENEFITS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by section 915, is amended by adding at the end the following:
    ``(j) Disqualification for Receipt of Multiple Food Stamp 
Benefits.--An individual shall be ineligible to participate in the food 
stamp program as a member of any household for a 10-year period if the 
individual is found by a State agency to have made, or is convicted in 
a Federal or State court of having made, a fraudulent statement or 
representation with respect to the identity or place of residence of 
the individual in order to receive multiple benefits simultaneously 
under the food stamp program.''.

SEC. 917. DISQUALIFICATION OF FLEEING FELONS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 915 and 916, is amended by adding at the end the following:
    ``(k) Disqualification of Fleeing Felons.--No member of a household 
who is otherwise eligible to participate in the food stamp program 
shall be eligible to participate in the program as a member of that or 
any other household during any period during which the individual is--
            ``(1) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the law of the place from 
        which the individual is fleeing, for a crime, or attempt to 
        commit a crime, that is a felony under the law of the place 
        from which the individual is fleeing or that, in the case of 
        New Jersey, is a high misdemeanor under the law of New Jersey; 
        or
            ``(2) violating a condition of probation or parole imposed 
        under a Federal or State law.''.

SEC. 918. COOPERATION WITH CHILD SUPPORT AGENCIES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 915, 916, and 917, is amended by adding at the end the 
following:
    ``(l) Custodial Parent's Cooperation With Child Support Agencies.--
            ``(1) In general.--At the option of a State agency, subject 
        to paragraphs (2) and (3), no natural or adoptive parent or 
        other individual (collectively referred to in this subsection 
        as `the individual') who is living with and exercising parental 
        control over a child under the age of 18 who has an absent 
        parent shall be eligible to participate in the food stamp 
        program unless the individual cooperates with the State agency 
        administering the program established under part D of title IV 
        of the Social Security Act (42 U.S.C. 651 et seq.)--
                    ``(A) in establishing the paternity of the child 
                (if the child is born out of wedlock); and
                    ``(B) in obtaining support for--
                            ``(i) the child; or
                            ``(ii) the individual and the child.
            ``(2) Good cause for noncooperation.--Paragraph (1) shall 
        not apply to the individual if good cause is found for refusing 
        to cooperate, as determined by the State agency in accordance 
        with standards prescribed by the Secretary in consultation with 
        the Secretary of Health and Human Services. The standards shall 
        take into consideration circumstances under which cooperation 
        may be against the best interests of the child.
            ``(3) Fees.--Paragraph (1) shall not require the payment of 
        a fee or other cost for services provided under part D of title 
        IV of the Social Security Act (42 U.S.C. 651 et seq.).
    ``(m) 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. 919. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended 
by sections 915, 916, 917 and 918, is amended by adding at the end the 
following:
    ``(o) 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. 920. WORK REQUIREMENT FOR ABLE-BODIED RECIPIENTS.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015), as amended by sections 915, 916, 917, 918, and 919, is amended 
by adding at the end the following:
    ``(p) 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 local government, as 
                determined appropriate by the Secretary.
            ``(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 months, 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;
                    ``(B) participate in a workfare program under 
                section 20 or a comparable State or local workfare 
                program;
                    ``(C) participate in and comply with the 
                requirements of an approved employment and training 
                program under subsection (d)(4); or
                    ``(D) participate in and comply with the 
                requirements of a work program for 20 hours or more per 
                week.
            ``(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 
                a dependent child under 18 years of age; or
                    ``(D) otherwise exempt under subsection (d)(2).
            ``(4) Waiver.--
                    ``(A) In general.--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) Work and Training Programs.--Section 6(d)(4) of the Food Stamp 
Act of 1977 (7 U.S.C. 2015(d)(4)) is amended by adding at the end the 
following:
                    ``(O) Required participation in work and training 
                programs.--A State agency shall provide an opportunity 
                to participate in the employment and training program 
                under this paragraph to any individual who would 
                otherwise become subject to disqualification under 
                subsection (p).
                    ``(P) Coordinating work requirements.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this paragraph, a State 
                        agency that meets the participation 
                        requirements of clause (ii) may operate the 
                        employment and training program of the State 
                        for individuals who are members of households 
                        receiving allotments under this Act as part of 
                        a program operated by the State under part F of 
                        title IV of the Social Security Act (42 U.S.C. 
                        681 et seq.), subject to the requirements of 
                        such Act.
                            ``(ii) Participation requirements.--A State 
                        agency may exercise the option under clause (i) 
                        if the State agency provides an opportunity to 
                        participate in an approved employment and 
                        training program to an individual who is--
                                    ``(I) subject to subsection (p);
                                    ``(II) not employed at least an 
                                average of 20 hours per week;
                                    ``(III) not participating in a 
                                workfare program under section 20 (or a 
                                comparable State or local program); and
                                    ``(IV) not subject to a waiver 
                                under subsection (i)(4).''.

SEC. 921. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) In General.--Section 7(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2016(i)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Electronic benefit transfers.--
                    ``(A) Implementation.--Each State agency shall 
                implement an electronic benefit transfer system in 
                which household benefits determined under section 8(a) 
                or 24 are issued from and stored in a central databank 
                before October 1, 2002, unless the Secretary provides a 
                waiver for a State agency that faces unusual barriers 
                to implementing an electronic benefit transfer system.
                    ``(B) Timely implementation.--State agencies are 
                encouraged to implement an electronic benefit transfer 
                system under subparagraph (A) as soon as practicable.
                    ``(C) State flexibility.--Subject to paragraph (2), 
                a State agency may procure and implement an electronic 
                benefit transfer system under the terms, conditions, 
                and design that the State agency considers appropriate.
                    ``(D) Operation.--An electronic benefit transfer 
                system should take into account generally accepted 
                standard operating rules based on--
                            ``(i) commercial electronic funds transfer 
                        technology;
                            ``(ii) the need to permit interstate 
                        operation and law enforcement monitoring; and
                            ``(iii) the need to permit monitoring and 
                        investigations by authorized law enforcement 
                        agencies.'';
            (2) in paragraph (2)--
                    (A) by striking ``effective no later than April 1, 
                1992,'';
                    (B) in subparagraph (A)--
                            (i) by striking ``, in any 1 year,''; and
                            (ii) by striking ``on-line'';
                    (F) by adding at the end the following:
            ``(I) procurement standards.''; and
            (3) by adding at the end the following:
            ``(7) Replacement of benefits.--Regulations issued by the 
        Secretary regarding the replacement of benefits and liability 
        for replacement of benefits under an electronic benefit 
        transfer system shall be similar to the regulations in effect 
        for a paper food stamp issuance system.''.
    (b) Sense of Congress.--It is the sense of Congress that a State 
that operates an electronic benefit transfer system under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in 
a manner that is compatible with electronic benefit transfer systems 
operated by other States.

SEC. 922. VALUE OF MINIMUM ALLOTMENT.

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

SEC. 923. 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. 924. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.

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

SEC. 925. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE 
              PROGRAMS.

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

SEC. 926. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

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

SEC. 927. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)(1)) 
is amended by adding at the end the following:
``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. 928. SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF STORES BASED 
              ON LACK OF BUSINESS INTEGRITY.

    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(a)(1)), as amended by section 927, is amended by adding at the end 
the following:
``The Secretary is authorized to 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 such an approval withdrawn on the basis of 
business integrity and reputation cannot submit a new application for 
approval. Such periods shall reflect the severity of business integrity 
infractions that are the basis of such denials or withdrawals.''.

SEC. 929. 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 1st sentence by inserting ``, which may include 
        relevant income and sales tax filing documents,'' after 
        ``submit information'' ; and
            (2) by inserting after the 1st 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 in order that the 
accuracy of information provided by such stores and concerns may be 
verified.''.

SEC. 930. 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:
``Regulations issued pursuant to this Act shall prohibit a retail food 
store or wholesale food concern that has an application for approval to 
accept and redeem coupons denied because it does not meet criteria for 
approval established by the Secretary in regulations from submitting a 
new application for six months from the date of such denial.''.

SEC. 931. OPERATION OF FOOD STAMP OFFICES.

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

SEC. 932. MANDATORY CLAIMS COLLECTION METHODS.

    (a) Administration.--Section 11(e)(8) of the Food Stamp Act of 1977 
(7 U.S.C. 2020(e)(8)) is amended by inserting ``or refunds of Federal 
taxes as authorized pursuant to section 3720A of title 31 of the United 
States Code'' before the semicolon at the end.
    (b) Collection of Claims.--Section 13(d) of the Food Stamp Act of 
1977 (7 U.S.C. 2022(d)) is amended--
            (1) by striking ``may'' and inserting ``shall''; and
            (2) by inserting ``or refunds of Federal taxes as 
        authorized pursuant to section 3720A of title 31 of the United 
        States Code'' before the period at the end.
    (c) Related Amendments.--Section 6103(1) of the Internal Revenue 
Code (26 U.S.C. 6103(1)) is amended--
            (1) by striking ``officers and employees'' in paragraph 
        (10)(A) and inserting ``officers, employees or agents, 
        including State agencies''; and
            (2) by striking ``officers and employees'' in paragraph 
        (10)(B) and inserting ``officers, employees or agents, 
        including State agencies''.

SEC. 933. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

    Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(8)) is amended--
            (1) by striking ``that (A) such'' and inserting the 
        following:
        ``that--
                    ``(A) the'';
            (2) by striking ``law, (B) notwithstanding'' and inserting 
        the following:
        ``law;
                    ``(B) notwithstanding'';
            (3) by striking ``Act, and (C) such'' and inserting the 
        following:
            ``Act;
                    ``(C) the''; and
            (4) by adding at the end the following:
                    ``(D) notwithstanding any other provision of law, 
                the address, social security number, and, if available, 
                photograph of any member of a household shall be made 
                available, on request, to any Federal, State, or local 
                law enforcement officer if the officer furnishes the 
                State agency with the name of the member and notifies 
                the agency that--
                            ``(i) the member--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, for a crime (or 
                                attempt to commit a crime) that, under 
                                the law of the place the member is 
                                fleeing, is a felony (or, in the case 
                                of New Jersey, a high misdemeanor), or 
                                is violating a condition of probation 
                                or parole imposed under Federal or 
                                State law; or
                                    ``(II) has information that is 
                                necessary for the officer to conduct an 
                                official duty related to subclause (I);
                            ``(ii) locating or apprehending the member 
                        is an official duty; and
                            ``(iii) the request is being made in the 
                        proper exercise of an official duty; and
                    ``(E) the safeguards shall not prevent compliance 
                with paragraph (16);''.

SEC. 934. EXPEDITED COUPON SERVICE.

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

SEC. 935. WITHDRAWING FAIR HEARING REQUESTS.

    Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(10)) is amended by inserting before the semicolon at the end a 
period and the following: ``At the option of a State, at any time prior 
to a fair hearing determination under this paragraph, a household may 
withdraw, orally or in writing, a request by the household for the fair 
hearing. If the withdrawal request is an oral request, the State agency 
shall provide a written notice to the household confirming the 
withdrawal request and providing the household with an opportunity to 
request a hearing''.

SEC. 936. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION 
              SYSTEMS.

    Section 11(e)(19) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(19)) is amended by striking ``that information is'' and 
inserting ``at the option of the State agency, that information may 
be''.

SEC. 937. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.

    Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is 
amended by adding at the end the following:
``Regulations issued pursuant to this Act shall provide criteria for 
the finding of violations and the suspension or disqualification of a 
retail food store or wholesale food concern on the basis of evidence 
which may include, but is not limited to, facts established through on-
site investigations, inconsistent redemption data, or evidence obtained 
through transaction reports under electronic benefit transfer 
systems.''.

SEC. 938. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS 
              PENDING ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Suspension Authority.--Section 12(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2021(a)), as amended by section 937, is amended by 
adding at the end the following:
``Such 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 such store or concern is initially 
found to have committed violations of program requirements. Such 
suspension may coincide with the period of a review as provided in 
section 14. The Secretary shall not be liable for the value of any 
sales lost during any suspension or disqualification period.''.
    (b) Conforming Amendment.--Section 14(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2023(a)) is amended--
            (1) in the 1st sentence by inserting ``suspended,'' before 
        ``disqualified or subjected'';
            (2) in the 5th 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 pursuant to section 12(a), such suspension shall 
remain in effect pending any administrative or judicial review of the 
proposed disqualification action, and the period of suspension shall be 
deemed a part of any period of disqualification which is imposed.''; 
and
            (3) by striking the last sentence.

SEC. 939. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED FROM 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) The Secretary shall issue regulations providing criteria for 
the disqualification of approved retail food stores and wholesale food 
concerns that are otherwise disqualified from accepting benefits under 
the Special Supplemental Nutrition Program for Women, Infants and 
Children (WIC) authorized under section 17 of the Child Nutrition Act 
of 1966. Such disqualification--
            ``(1) shall be for the same period as the disqualification 
        from the WIC Program;
            ``(2) may begin at a later date; and
            ``(3) notwithstanding section 14 of this Act, shall not be 
        subject to administrative or judicial review.''.

SEC. 940. 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 939, is amended by adding at the end the following:
    ``(h) The Secretary shall issue regulations providing for the 
permanent disqualification of a retail food store or wholesale food 
concern that is determined to have knowingly submitted an application 
for approval to accept and redeem coupons which contains false 
information about one or more substantive matters which were the basis 
for providing approval. Any disqualification imposed under this 
subsection shall be subject to administrative and judicial review 
pursuant to section 14, but such disqualification shall remain in 
effect pending such review.''.

SEC. 941. EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR VIOLATIONS OF THE 
              FOOD STAMP ACT.

    (a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--
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) Civil and Criminal Forfeiture.--Section 15 of the Food Stamp 
Act of 1977 (7 U.S.C. 2024)) is amended by adding at the end the 
following:
    ``(h)(1) Civil Forfeiture for Food Stamp Benefit Violations.--
            ``(A) Any food stamp benefits and any property, real or 
        personal--
                    ``(i) constituting, derived from, or traceable to 
                any proceeds obtained directly or indirectly from, or
                    ``(ii) used, or intended to be used, to commit, or 
                to facilitate,
        the commission of a violation of subsection (b) or subsection 
        (c) involving food stamp benefits having an aggregate value of 
        not less than $5,000, shall be subject to forfeiture to the 
        United States.
            ``(B) The provisions of chapter 46 of title 18, United 
        States Code, relating to civil forfeitures shall extend to a 
        seizure or forfeiture under this subsection, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection.
    ``(2) Criminal Forfeiture for Food Stamp Benefit Violations.--
            ``(A)(i) Any person convicted of violating subsection (b) 
        or subsection (c) involving food stamp benefits having an 
        aggregate value of not less than $5,000, shall forfeit to the 
        United States, irrespective of any State law--
                    ``(I) any food stamp benefits and any property 
                constituting, or derived from, or traceable to any 
                proceeds such person obtained directly or indirectly as 
                a result of such violation; and
                    ``(II) any food stamp benefits and any of such 
                person's property used, or intended to be used, in any 
                manner or part, to commit, or to facilitate the 
                commission of such violation.
            ``(ii) In imposing sentence on such person, the court shall 
        order that the person forfeit to the United States all property 
        described in this subsection.
            ``(B) All food stamp benefits and any property subject to 
        forfeiture under this subsection, any seizure and disposition 
        thereof, and any administrative or judicial proceeding relating 
        thereto, 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), insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection.
    ``(3) Applicability.--This subsection shall not apply to property 
specified in subsection (g) of this section.
    ``(4) Rules.--The Secretary may prescribe such rules and 
regulations as may be necessary to carry out this subsection.''.

SEC. 942. EXPANDED AUTHORITY FOR SHARING INFORMATION PROVIDED BY 
              RETAILERS.

    (a) Amendment to Social Security Act.--Section 205(c)(2)(C)(iii) of 
the Social Security Act (42 U.S.C. 405(c)(2)(C)(iii)), as amended by 
section 316(a) of the Social Security Administrative Reform Act of 1994 
(Public Law 103-296; 108 Stat. 1464), is amended--
            (1) by inserting in the 1st sentence of subclause (II) 
        after ``instrumentality of the United States'' the following: 
        ``, or State government officers and employees with law 
        enforcement or investigative responsibilities, or State 
        agencies that have the responsibility for administering the 
        Special Supplemental Nutrition Program for Women, Infants and 
        Children (WIC)'';
            (2) by inserting in the last sentence of subclause (II) 
        immediately after ``other Federal'' the words ``or State''; and
            (3) by inserting ``or a State'' in subclause (III) 
        immediately after ``United States''.
    (b) Amendment to Internal Revenue Code of 1986.--Section 6109(f)(2) 
of the Internal Revenue Code of 1986 (26 U.S.C. 6109(f)(2)) (as added 
by section 316(b) of the Social Security Administrative Reform Act of 
1994 (Public Law 103-296; 108 Stat. 1464)) is amended--
            (1) by inserting in subparagraph (A) after 
        ``instrumentality of the United States'' the following: ``, or 
        State government officers and employees with law enforcement or 
        investigative responsibilities, or State agencies that have the 
        responsibility for administering the Special Supplemental 
        Nutrition Program for Women, Infants and Children (WIC)'';
            (2) in the last sentence of subparagraph (A) by inserting 
        ``or State'' after ``other Federal''; and
            (3) in subparagraph (B) by inserting ``or a State'' after 
        ``United States''.

SEC. 943. LIMITATION OF FEDERAL MATCH.

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

SEC. 944. COLLECTION OF OVERISSUANCES.

    Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is 
amended by striking ``25 percent during the period beginning October 1, 
1990'' and all that follows through ``error of a State agency'' and 
inserting the following: ``25 percent of the overissuances collected by 
the State agency under section 13, except those overissuances arising 
from an error of the State agency''.

SEC. 945. 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 1st sentence of section 11(g) of the Food Stamp Act 
        of 1977 (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 Food Stamp Act of 1977 (7 
        U.S.C. 2025(c)(1)(B)) is amended by striking ``pursuant to 
        subsection (b)''.

SEC. 946. 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 in accordance with clause (i), the waiver 
        shall be considered approved, unless the approval is 
        specifically prohibited by this Act.
            ``(iii) Notice of denial.--On denial of a waiver request 
        under clause (i)(III), the Secretary shall provide a copy of 
        the waiver request and a description of the reasons for the 
        denial to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate.''.

SEC. 947. AUTHORIZATION OF APPROPRIATIONS.

    The 1st sentence of section 18(a)(1) of the Food Stamp Act of 1977 
(7 U.S.C. 2027(a)(1)) is amended by striking ``1991 through 1997'' and 
inserting ``1996 through 2002''.

SEC. 948. AUTHORIZE STATES TO OPERATE SIMPLIFIED FOOD STAMP PROGRAMS.

    (a) Authority for Program.--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) Definition.--In this section, the term `Federal costs' does 
not include any Federal costs incurred under section 17.
    ``(b) State Option.--Subject to subsection (d), a State may elect 
to carry out a simplified food stamp program for households described 
in subsection (c)(1), statewide or in a political subdivision of the 
State, in accordance with this section.
    ``(c) Program Requirements.--If a State elects to carry out such 
simplified food stamp program, within the State or a political 
subdivision of the State--
            ``(1) only households 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 
        receive benefits under this section. Such households shall be 
        automatically eligible to participate in such simplified food 
        stamp program; and
            ``(2) subject to subsection (f), benefits under such 
        simplified food stamp program shall be determined under rules 
        and procedures established by the State under--
                    ``(A) a State program funded under part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et seq.);
                    ``(B) the food stamp program; or
                    ``(C) a combination of a State program funded under 
                part A of title IV of the Social Security Act (42 
                US..C. 601 et seq.) and the food stamp program.
    ``(d) State Plan.--(1) A State may not operate such simplified food 
stamp program unless the Secretary approves a State plan for the 
operation of such simplified food stamp program under paragraph (2).
  ``(2) The Secretary is authorized to approve any State plan to carry 
out such simplified food stamp program if the Secretary determines that 
the plan--
            ``(A) simplifies program administration while fulfilling 
        the goals of the food stamp program to permit low-income 
        households to obtain a more nutritious diet;
            ``(B) complies with this section;
            ``(C) would not increase Federal costs for any fiscal year; 
        and
            ``(D) would not substantially alter, as determined by the 
        Secretary, the appropriate distribution of benefits according 
        to household need.
    ``(e) Cost Determination.--(1) During each fiscal year and not 
later than 90 days after the end of each fiscal year, the Secretary 
shall determine using data provided by the State deemed appropriate by 
the Secretary whether such simplified food stamp program being carried 
out by a State is increasing Federal costs under this Act above what 
the costs would have been for the same population had they been subject 
to the rules of the food stamp program.
    ``(2) If the Secretary determines that such simplified food stamp 
program has increased Federal costs under this Act for any fiscal year 
or any portion of any fiscal year, the Secretary shall notify the State 
not later than 30 days after the Secretary makes the determination 
under paragraph (1).
    ``(3)(A) Not later than 90 days after the date of a notification 
under paragraph (2), the State shall submit a plan for approval by the 
Secretary for prompt corrective action that is designed to prevent such 
simplified food stamp program from increasing Federal costs under this 
Act.
    ``(B) If the State does not submit a plan under subparagraph (A) or 
carry out a plan approved by the Secretary, the Secretary shall 
terminate the approval of the State operating such simplified food 
stamp program and the State shall be ineligible to operate a future 
Simplified Program.
    ``(f) Rules and Procedures.--(1) In operating such simplified food 
stamp program, a State or political subdivision of a State may follow 
the rules and procedures established by the State or political 
subdivision under a State program funded under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.) or under the food stamp 
program.
    ``(2) In operating such simplified food stamp program, a State or 
political subdivision shall comply with the requirements of--
            ``(A) section 5(e) to the extent that it requires an excess 
        shelter expense deduction;
            ``(B) subsections (a) through (g) of section 7;
            ``(C) 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.));
            ``(D) subsections (b) and (d) of section 8;
            ``(E) subsections (a), (c), (d), and (n) of section 11;
            ``(F) paragraphs (8), (9), (12), (18), (20), (24), and (25) 
        of section 11(e);
            ``(G) section 11(e)(2), to the extent that it requires the 
        State agency to provide an application to households on the 1st 
        day they contact a food stamp office in person during office 
        hours to make what may reasonably be interpreted as an oral or 
        written request for food stamp assistance and to allow those 
        households to file such application on the same day;
            ``(H) section 11(e)(3), to the extent that it requires the 
        State agency to complete certification of an eligible household 
        and provide an allotment retroactive to the period of 
        application to an eligible household not later than 30 days 
        following the filing of an application;
            ``(I) 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
            ``(J) section 16.
    ``(3) Notwithstanding any other provision of this section, a 
household may not receive benefits under this section as a result of 
the eligibility of the household 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 such 
simplified food stamp program.''.
    (b) Repealer.--Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 
2017) is amended by striking subsection (e).
    (c) Requirements.--Section 11(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)) is amended--
            (1) in paragraph (24) by striking ``and'' at the end;
            (2) in paragraph (25) by striking the period at the end; 
        and
            (3) by adding at the end the following:
            ``(26) if a State elects to carry out a simplified food 
        stamp program under section 24, the plan of the State agency 
        for operating such simplified food stamp program, including--
                    ``(A) the rules and procedures to be followed by 
                the State to determine food stamp benefits; and
                    ``(B) a description of the method by which the 
                State will carry out a quality control system under 
                section 16(c).''.
    (d) Repeal of Demonstration Projects.--Section 17 of the Food Stamp 
Act of 1977 (7 U.S.C. 2026) is amended by--
            (1) by striking subsection (i); and
            (2) redesignating subsections (j) through (l) as 
        subsections (i) through (k), respectively.

SEC. 949. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Definitions.--Section 201A of the Emergency Food Assistance Act 
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as 
follows:

``SEC. 201A. DEFINITIONS.

    ``In this Act:
            ``(1) Additional commodities.--The term `additional 
        commodities' means commodities made available under section 214 
        in addition to the commodities made available under sections 
        202 and 203D.
            ``(2) Average monthly number of unemployed persons.--The 
        term `average monthly number of unemployed persons' means the 
        average monthly number of unemployed persons in each State in 
        the most recent fiscal year for which information concerning 
        the number of unemployed persons is available, as determined by 
        the Bureau of Labor Statistics of the Department of Labor.
            ``(3) Eligible recipient agency.--The term `eligible 
        recipient agency' means a public or nonprofit organization--
                    ``(A) that administers--
                            ``(i) an emergency feeding organization;
                            ``(ii) a charitable institution (including 
                        a hospital and a retirement home, but excluding 
                        a penal institution) to the extent that the 
                        institution serves needy persons;
                            ``(iii) a summer camp for children, or a 
                        child nutrition program providing food service;
                            ``(iv) a nutrition project operating under 
                        the Older Americans Act of 1965 (42 U.S.C. 3001 
                        et seq.), including a project that operates a 
                        congregate nutrition site and a project that 
                        provides home-delivered meals; or
                            ``(v) a disaster relief program;
                    ``(B) that has been designated by the appropriate 
                State agency, or by the Secretary; and
                    ``(C) that has been approved by the Secretary for 
                participation in the program established under this 
                Act.
            ``(4) Emergency feeding organization.--The term `emergency 
        feeding organization' means a public or nonprofit organization 
        that administers activities and projects (including the 
        activities and projects of a charitable institution, a food 
        bank, a food pantry, a hunger relief center, a soup kitchen, or 
        a similar public or private nonprofit eligible recipient 
        agency) providing nutrition assistance to relieve situations of 
        emergency and distress through the provision of food to needy 
        persons, including low-income and unemployed persons.
            ``(5) Food bank.--The term `food bank' means a public or 
        charitable institution that maintains an established operation 
        involving the provision of food or edible commodities, or the 
        products of food or edible commodities, to food pantries, soup 
        kitchens, hunger relief centers, or other food or feeding 
        centers that, as an integral part of their normal activities, 
        provide meals or food to feed needy persons on a regular basis.
            ``(6) Food pantry.--The term `food pantry' means a public 
        or private nonprofit organization that distributes food to low-
        income and unemployed households, including food from sources 
        other than the Department of Agriculture, to relieve situations 
        of emergency and distress.
            ``(7) Poverty line.--The term `poverty line' has the same 
        meaning given the term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)).
            ``(8) Soup kitchen.--The term `soup kitchen' means a public 
        or charitable institution that, as an integral part of the 
        normal activities of the institution, maintains an established 
        feeding operation to provide food to needy homeless persons on 
        a regular basis.
            ``(9) Total value of additional commodities.--The term 
        `total value of additional commodities' means the actual cost 
        of all additional commodities made available under section 214 
        that are paid by the Secretary (including the distribution and 
        processing costs incurred by the Secretary).
            ``(10) Value of additional commodities allocated to each 
        state.--The term `value of additional commodities allocated to 
        each State' means the actual cost of additional commodities 
        made available under section 214 and allocated to each State 
        that are paid by the Secretary (including the distribution and 
        processing costs incurred by the Secretary).''.
    (b) State Plan.--Section 202A of the Emergency Food Assistance Act 
of 1983 (Public Law 98-8; 7 U.S.C. 612c note) (7 U.S.C. 612c note) is 
amended to read as follows:

``SEC. 202A. STATE PLAN.

    ``(a) In General.--To receive commodities under this Act, a State 
shall submit a plan of operation and administration every 4 years to 
the Secretary for approval. The plan may be amended at any time, with 
the approval of the Secretary.
    ``(b) Requirements.--Each plan shall--
            ``(1) designate the State agency responsible for 
        distributing the commodities received under this Act;
            ``(2) set forth a plan of operation and administration to 
        expeditiously distribute commodities under this Act;
            ``(3) set forth the standards of eligibility for recipient 
        agencies; and
            ``(4) set forth the standards of eligibility for individual 
        or household recipients of commodities, which shall require--
                    ``(A) individuals or households to be comprised of 
                needy persons; and
                    ``(B) individual or household members to be 
                residing in the geographic location served by the 
                distributing agency at the time of applying for 
                assistance.
    ``(c) State Advisory Board.--The Secretary shall encourage each 
State receiving commodities under this Act to establish a State 
advisory board consisting of representatives of all interested 
entities, both public and private, in the distribution of commodities 
received under this Act in the State.''.
    (c) Authorization of Appropriations for Administrative Funds.--
Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (Public 
Law 98-8; 7 U.S.C. 612c note) (7 U.S.C. 612c note) is amended--
            (1) in the 1st sentence--
                    (A) by striking ``1991 through 1995'' and inserting 
                ``1996 through 2002''; and
                    (B) by striking ``for State and local'' and all 
                that follows through ``under this title'' and inserting 
                ``to pay for the direct and indirect administrative 
costs of the State related to the processing, transporting, and 
distributing to eligible recipient agencies of commodities provided by 
the Secretary under this Act and commodities secured from other 
sources''; and
            (2) by striking the fourth sentence.
    (d) Technical Amendments.--The Emergency Food Assistance Act of 
1983 (Public Law 98-8; 7 U.S.C. 612c note) (7 U.S.C. 612c note) is 
amended--
            (1) in the 1st sentence of section 203B(a), by striking 
        ``203 and 203A of this Act'' and inserting ``203A'';
            (2) in section 204(a), by striking ``title'' each place it 
        appears and inserting ``Act''; and
            (3) by striking section 212.
    (e) Report on EFAP.--Section 1571 of the Food Security Act of 1985 
(Public Law 99-198; 7 U.S.C. 612c note) is repealed.

SEC. 950. FOOD BANK DEMONSTRATION PROJECT.

    Section 3 of the Charitable Assistance and Food Bank Act of 1987 
(Public Law 100-232; 7 U.S.C. 612c note) is repealed.

SEC. 951. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

    Section 1773 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended by striking 
subsection (f).

                         TITLE X--MISCELLANEOUS

SEC. 1001. 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 for 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. 1002. 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.--Title I 
of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), as 
amended by section 601 of this Act, is amended by adding at the end the 
following:

``SEC. 28. 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. 1003. 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;
            (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. 1004. SENSE OF THE SENATE REGARDING THE INABILITY OF THE 
              NONCUSTODIAL 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 noncustodial parent to 
        the custodial parent, regardless of the employment status or 
        location of the noncustodial parent; and
            (b) States are encouraged to pursue pilot programs in which 
        the parents of a nonadult, noncustodial parent who refuses to 
        or is unable to pay child support must--
                    (1) pay or contribute to the child support owed by 
                the noncustodial parent; or
                    (2) otherwise fulfill all financial obligations and 
                meet all conditions imposed on the non<divide>custodial 
                parent, such as participation in a work program or 
                other related activity.

SEC. 1005. 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. 1006. 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 out-of-wedlock teenage pregnancies, 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).

SEC. 1007. 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. 1008. 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. 1009. ABSTINENCE EDUCATION.

    Title V of the Social Security Act (42 U.S.C. 701-709) is amended 
by adding at the end the following new section:

                         ``abstinence education

    ``Sec. 510. (a) There are authorized to be appropriated $75,000,000 
for the purposes of enabling the Secretary, through grants, contracts, 
or otherwise to provide for 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 liekly to bear children out of wedlock.
    ``(b) For purposes of this section, the term `abstinence education' 
means an educational or motivational program which--
            ``(1) has as its exclusive purpose, teaching the social, 
        psychological, and health gains to be realized by abstaining 
        from sexual activity;
            ``(2) teaches abstinence from sexual activity outside 
        marriage as the expected standard for all school age children;
            ``(3) 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;
            ``(4) teaches that a mutually faithful monogamous 
        relationship in context of marriage is the expected standard of 
        human sexual activity;
            ``(5) teaches that sexual activity outside of the context 
        of marriage is likely to have harmful psychological and 
        physical effects;
            ``(6) teaches that bearing children out-of-wedlock is 
        likely to have harmful consequences for the child, the child's 
        parents, and society;
            ``(7) teaches young people how to reject sexual advances 
        and how alcohol and drug use increases vulnerability to sexual 
        advances; and
            ``(8) teaches the importance of attaining self-sufficiency 
        before engaging in sexual activity.''.

SEC. 1010. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

SEC. 1011. REDUCTION IN BLOCK GRANTS TO STATES FOR SOCIAL SERVICES.

    Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (4); and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) $2,800,000,000 for each of the fiscal years 1990 
        through 1996 and for each fiscal year after fiscal year 2002; 
        and
            ``(6) $2,520,000,000 for each of the fiscal years 1997 
        through 2002.''.

SEC. 1012. EFFICIENT USE OF FEDERAL TRANSPORTATION FUNDS.

    The Secretary of Health and Human Services is encouraged to work in 
coordination with State agencies to ensure that Federal transportation 
funds that may be used for the benefit of persons receiving public 
assistance pursuant to this Act and the amendments made by this Act are 
most efficiently used for such purpose. The Secretary shall work with 
the individual States to develop criteria and measurements to report 
back to the Congress, within 3 years after the date of the enactment of 
this Act, the following:
            (1) The use of competitive contracting or other market-
        oriented strategies to achieve efficiencies.
            (2) The efficient use of all related transportation funds 
        to support persons receiving assistance pursuant to this Act 
        and the amendments made by this Act.
            (3) The actual value derived from transportation services 
        to achieve such purposes.
            (4) The application of such analyses to other support 
        services to achieve such purposes.

SEC. 1013. ENHANCED FEDERAL MATCH FOR CHILD WELFARE AUTOMATION 
              EXPENSES.

    (a) In General.--Section 474(a)(3)(C) of the Social Security Act 
(42 U.S.C. 674(a)(3)(C)) is amended to read as follows:
                    ``(C) 50 percent (or, if the quarter is in fiscal 
                year 1997, 75 percent) of so much of such expenditures 
                as are for the planning, design, development, or 
                installation of statewide mechanized data collection 
                and information retrieval systems (including 50 percent 
                (or, if the quarter is in fiscal year 1997, 75 percent) 
                of the full amount of expenditures for hardware 
                components for such systems) but only to the extent 
                that such systems--
                            ``(i) meet the requirements imposed by 
                        regulations;
                            ``(ii) to the extent practicable, are 
                        capable of interfacing with the State data 
                        collection system that collects information 
                        relating to child abuse and neglect;
                            ``(iii) to the extent practicable, have the 
                        capability of interfacing with, and retrieving 
                        information from, the State data collection 
                        system that collects information relating to 
                        the eligibility of individuals under part A 
                        (for the purposes of facilitating verification 
                        of eligibility of foster children); and
                            ``(iv) are determined by the Secretary to 
                        be likely to provide more efficient, 
                        economical, and effective administration of the 
                        programs carried out under a State plan 
                        approved under this part;''.
    (b) Effective Date.--The amendments made by this section shall be 
effective on and after October 1, 1996.

                  Subtitle B--Earned Income Tax Credit

SEC. 1021. EARNED INCOME CREDIT AND OTHER TAX BENEFITS DENIED TO 
              INDIVIDUALS FAILING TO PROVIDE TAXPAYER IDENTIFICATION 
              NUMBERS.

    (a) Earned Income Credit.--
            (1) In general.--Section 32(c)(1) of the Internal Revenue 
        Code of 1986 (relating to individuals eligible to claim the 
        earned income credit) is amended by adding at the end the 
        following new subparagraph:
                    ``(F) Identification number requirement.--The term 
                `eligible individual' does not include any individual 
                who does not include on the return of tax for the 
                taxable year--
                            ``(i) such individual's taxpayer 
                        identification number, and
                            ``(ii) if the individual is married (within 
                        the meaning of section 7703), the taxpayer 
                        identification number of such individual's 
                        spouse.''
            (2) Special identification number.--Section 32 of such Code 
        is amended by adding at the end the following new subsection:
    ``(l) Identification Numbers.--Solely for purposes of subsections 
(c)(1)(F) and (c)(3)(D), a taxpayer identification number means a 
social security number issued to an individual by the Social Security 
Administration (other than a social security number issued pursuant to 
subclause (II) (or that portion of subclause (III) that relates to 
subclause (II)) of section 205(c)(2)(B)(i) of the Social Security 
Act).''
    (b) Personal Exemption.--
            (1) In general.--Section 151 of such Code (relating to 
        allowance of deductions for personal exemptions) is amended by 
        adding at the end the following new subsection:
    ``(e) Indentifying Information Required.--No exemption shall be 
allowed under this section with respect to any individual unless the 
taxpayer identification number of such individual is included on the 
return claiming the exemption.''
            (2) Conforming amendments.--
                    (A) Subsection (e) of section 6109 of such Code is 
                repealed.
                    (B) Section 6724(d)(3) of such Code is amended by 
                adding ``and'' at the end of subparagraph (C), by 
                striking subparagraph (D), and by redesignating 
                subparagraph (E) as subparagraph (D).
    (c) Dependent Care Credit.--Subsection (e) of section 21 of such 
Code (relating to expenses for household and dependent care services 
necessary for gainful employment) is amended by adding at the end the 
following new paragraph:
            ``(10) Identifying information required with respect to 
        qualifying individuals.--No credit shall be allowed under this 
        section with respect to any qualifying individual unless the 
        taxpayer identification number of such individual is included 
        on the return claiming the credit.''
    (d) Extension of Procedures Applicable to Mathematical or Clerical 
Errors.--Section 6213(g)(2) of such Code (relating to the definition of 
mathematical or clerical errors) is amended--
            (1) by striking ``and'' at the end of subparagraph (D), and
            (2) by striking the period at the end of subparagraph (E) 
        and inserting a comma, and
            (3) by adding at the end the following new subparagraphs:
                    ``(F) an omission of a correct taxpayer 
                identification number required under section 21 
                (relating to expenses for household and dependent care 
                services necessary for gainful employment), section 32 
                (relating to the earned income credit) to be included 
                on a return, or section 151 (relating to allowance of 
                deductions for personal exemptions), and
                    ``(G) an entry on a return claiming the credit 
                under section 32 with respect to net earnings from 
                self-employment described in section 32(c)(2)(A) to the 
                extent the tax imposed by section 1401 (relating to 
                self-employment tax) on such net earnings has not been 
                paid.''
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to returns the due date for which (without regard to 
extensions) is more than 30 days after the date of the enactment of 
this Act.

SEC. 1022. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON BASIS OF 
              DISQUALIFIED INCOME.

    (a) Reduction in Disqualified Income Threshold.--
            (1) In general.--Section 32(i)(1) of the Internal Revenue 
        Code of 1986 (relating to denial of credit for individuals 
        having excessive investment income) is amended by striking 
        ``$2,350'' and inserting ``$2,200''.
            (2) Adjustment for inflation.--Section 32(j) of such Code 
        is amended to read as follows:
    ``(j) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year 
        beginning after the applicable calendar year, each dollar 
        amount referred to in paragraph (2)(B) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, except that subparagraph (B) 
                thereof shall be applied by reference to the CPI for 
                the calendar year preceding the applicable calendar 
                year rather than the CPI for calendar year 1992.
            ``(2) Definitions, etc.--For purposes of paragraph (1)--
                    ``(A) Applicable calendar year.--The term 
                `applicable calendar year' means--
                            ``(i) 1994 in the case of the dollar 
                        amounts referred to in clause (i) of 
                        subparagraph (B), and
                            ``(ii) 1996 in the case of the dollar 
                        amount referred to in clause (ii) of 
                        subparagraph (B).
                    ``(B) Dollar amounts.--The dollar amounts referred 
                to in this subparagraph are--
                            ``(i) the dollar amounts contained in 
                        subsection (b)(2)(A), and
                            ``(ii) the dollar amount contained in 
                        subsection (i)(1).
            ``(3) Rounding.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if any dollar amount after being 
                increased under paragraph (1) is not a multiple of $10, 
                such dollar amount shall be rounded to the nearest 
                multiple of $10 (or, if such dollar amount is a 
                multiple of $5, such dollar amount shall be increased 
                to the next higher multiple of $10).
                    ``(B) Disqualified income threshold amount.--If the 
                dollar amount referred to in paragraph (2)(B)(ii) after 
                being increased under paragraph (1) is not a multiple 
                of $50, such amount shall be rounded to the next lowest 
                multiple of $50.''
    (b) Definition of Disqualified Income.--Paragraph (2) of section 
32(i) of such Code (defining disqualified income) is amended by 
striking ``and'' at the end of subparagraph (B), by striking the period 
at the end of subparagraph (C) and inserting a comma, and by adding at 
the end the following new subparagraphs:
                    ``(D) the capital gain net income (as defined in 
                section 1222) of the taxpayer for such taxable year, 
                and
                    ``(E) the excess (if any) of--
                            ``(i) the aggregate income from all passive 
                        activities for the taxable year (determined 
                        without regard to any amount included in earned 
                        income under subsection (c)(2) or described in 
                        a preceding subparagraph), over
                            ``(ii) the aggregate losses from all 
                        passive activities for the taxable year (as so 
                        determined).
                For purposes of subparagraph (E), the term `passive 
                activity' has the meaning given such term by section 
                469.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 1023. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION FOR EARNED 
              INCOME CREDIT.

    (a) In General.--Subsections (a)(2), (c)(1)(C), and (f)(2)(B) of 
section 32 of the Internal Revenue Code of 1986 are each amended by 
striking ``adjusted gross income'' and inserting ``modified adjusted 
gross income''.
    (b) Modified Adjusted Gross Income Defined.--Section 32(c) of such 
Code (relating to definitions and special rules) is amended by adding 
at the end the following new paragraph:
            ``(5) Modified adjusted gross income.--
                    ``(A) In general.--The term `modified adjusted 
                gross income' means adjusted gross income--
                            ``(i) determined without regard to the 
                        amounts described in subparagraph (B), and
                            ``(ii) increased by
                                    ``(I) the amount of interest 
                                received or accrued by the taxpayer 
                                during the taxable year which is exempt 
                                from tax, and
                                    ``(II) amounts received as a 
                                pension or annuity, and any 
                                distributions or payments received from 
                                an individual retirement plan, by the 
                                taxpayer during the taxable year to the 
                                extent not included in gross income.
                Clause (ii)(II) shall not include any amount which is 
                not includible in gross income by reason of section 
                402(c), 403(a)(4), 403(b)(8), 408(d) (3), (4), or (5), 
                or 457(e)(10).
                    ``(B) Certain amounts disregarded.--An amount is 
                described in this subparagraph if it is--
                            ``(i) the amount of losses from sales or 
                        exchanges of capital assets in excess of gains 
                        from such sales or exchanges to the extent such 
                        amount does not exceed the amount under section 
                        1211(b)(1),
                            ``(ii) the net loss from estates and 
                        trusts,
                            ``(iii) the excess (if any) of amounts 
                        described in subsection (i)(2)(C)(ii) over the 
                        amounts described in subsection (i)(2)(C)(i) 
                        (relating to nonbusiness rents and royalties), 
                        and
                            ``(iv) the net loss from the carrying on of 
                        trades or businesses, computed separately with 
                        respect to--
                                    ``(I) trades or businesses (other 
                                than farming) conducted as sole 
                                proprietorships,
                                    ``(II) trades or businesses of 
                                farming conducted as sole 
                                proprietorships, and
                                    ``(III) other trades or businesses.
                        For purposes of clause (iv), there shall not be 
                        taken into account items which are attributable 
                        to a trade or business which consists of the 
                        performance of services by the taxpayer as an 
                        employee.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 1024. NOTICE OF AVAILABILITY REQUIRED TO BE PROVIDED TO APPLICANTS 
              AND FORMER RECIPIENTS OF TEMPORARY ASSISTANCE FOR NEEDY 
              FAMILIES, FOOD STAMPS, AND MEDICAID.

    (a) Temporary Assistance for Needy Families.--Section 408(a), as 
added by section 103 of this Act, is amended by adding at the end the 
following:
            ``(16) Notice of eitc availability.--A State to which a 
        grant is made under section 403 shall provide written notice of 
        the existence and availability of the earned income credit 
        under section 32 of the Internal Revenue Code of 1986 to--
                    ``(A) any individual who applies for assistance 
                under the State program funded under this part, upon 
                receipt of the application; and
                    ``(B) any individual whose assistance under the 
                State program is terminated, in the notice of 
                termination of such assistance.''.
    (b) Food Stamps.--Section 11(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)) is amended--
            (1) in paragraph (24) by striking ``and'' at the end;
            (2) in paragraph (25) by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (25) the following:
            ``(26) that whenever a household applies for food stamp 
        benefits, and whenever such benefits are terminated with 
        respect to a household, the State agency shall provide to each 
        member of such household notice of--
                    ``(A) the existence of the earned income tax credit 
                under section 32 of the Internal Revenue Code of 1986; 
                and
                    ``(B) the fact that such credit may be applicable 
                to such member.''.
    (c) Medicaid.--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 adding at the end the following new paragraph:
            ``(63) provide that the State shall provide notice of the 
        existence and availability of the earned income tax credit 
        under section 32 of the Internal Revenue Code of 1986 to each 
        individual applying for medical assistance under the State plan 
        and to each individual whose eligibility for medical assistance 
        under the State plan is terminated.''.

SEC. 1025. NOTICE OF AVAILABILITY OF EARNED INCOME TAX CREDIT AND 
              DEPENDENT CARE TAX CREDIT TO BE INCLUDED ON W-4 FORM.

    Section 11114 of the Omnibus Budget Reconciliation Act of 1990 (26 
U.S.C. 21 note), relating to program to increase public awareness, is 
amended by adding at the end the following new sentence: ``Such means 
shall include printing a notice of the availability of such credits on 
the forms used by employees to determine the proper number of 
withholding exemptions under chapter 24 of the Internal Revenue Code of 
1986.''.

SEC. 1026. ADVANCE PAYMENT OF EARNED INCOME TAX CREDIT THROUGH STATE 
              DEMONSTRATION PROGRAMS.

    (a) In General.--Section 3507 of the Internal Revenue Code of 1986 
(relating to the advance payment of the earned income tax credit) is 
amended by adding at the end the following:
    ``(g) State Demonstrations.--
            ``(1) In general.--In lieu of receiving earned income 
        advance amounts from an employer under subsection (a), a 
        participating resident shall receive advance earned income 
        payments from a responsible State agency pursuant to a State 
        Advance Payment Program that is designated pursuant to 
        paragraph (2).
            ``(2) Designations.--
                    ``(A) In general.--From among the States submitting 
                proposals satisfying the requirements of subsection 
                (g)(3), the Secretary (in consultation with the 
                Secretary of Health and Human Services) may designate 
                not more than 4 State Advance Payment Demonstrations. 
                States selected for the demonstrations may have, in the 
                aggregate, no more than 5 percent of the total number 
                of household participating in the program under the 
                Food Stamp program in the immediately preceding fiscal 
                year, Administrative costs of a State in conducting a 
                demonstration under this section may be included for 
                matching under section 403(a) of the Social Security 
                Act and section 16(a) of the Food Stamp Act of 1977.
                    ``(B) When designation may be made.--Any 
                designation under this paragraph shall be made no later 
                than December 31, 1995.
                    ``(C) Period for which designation is in effect.--
                            ``(i) In general.--Designations made under 
                        this paragraph shall be effective for advance 
                        earned income payments made after December 31, 
                        1995, and before January 1, 1999.
                            ``(ii) Special rules.--
                                    ``(I) Revocation of designations.--
                                The Secretary may revoke the 
                                designation under this paragraph if the 
                                Secretary determines that the State is 
                                not complying substantially with the 
                                proposal described in paragraph (3) 
                                submitted by the State.
                                    ``(II) Automatic termination of 
                                designations.--Any failure by a State 
                                to comply with the reporting 
                                requirements described in paragraphs 
                                (3)(F) and (3)(G) has the effect of 
                                immediately terminating the designation 
                                under this paragraph (2) and rendering 
                                paragraph (5)(A)(ii) inapplicable to 
                                subsequent payments.
            ``(3) Proposals.--No State may be designated under 
        subsection (g)(2) unless the State's proposal for such 
        designation--
                    ``(A) identifies the responsible State agency,
                    ``(B) describes how and when the advance earned 
                income payments will be made by that agency, including 
                a description of any other State or Federal benefits 
                with which such payments will be coordinated,
                    ``(C) describes how the State will obtain the 
                information on which the amount of advance earned 
                income payments made to each participating resident 
                will be determined in accordance with paragraph (4),
                    ``(D) describes how State residents who will be 
                eligible to receive advance earned income payments will 
                be selected, notified of the opportunity to receive 
                advance earned income payments from the responsible 
                State agency, and given the opportunity to elect to 
                participate in the program,
                    ``(E) describes how the State will verify, in 
                addition to receiving the certifications and statement 
                described in paragraph (7)(D)(iv), the eligibility of 
                participating residents for the earned tax credit,
                    ``(F) commits the State to furnishing to each 
                participating resident and to the Secretary by January 
                31 of each year a written statement showing--
                            ``(i) the name and taxpayer identification 
                        number of the participating resident, and
                            ``(ii) the total amount of advance earned 
                        income payments made to the participating 
                        resident during the prior calendar year,
                    ``(G) commits the State to furnishing to the 
                Secretary by December 1 of each year a written 
                statement showing the name and taxpayer identification 
                number of each participating resident,
                    ``(H) commits the State to treat the advanced 
                earned income payments as described in subsection 
                (g)(5) and any repayments of excessive advance earned 
                income payments as described in subsection (g)(6),
                    ``(I) commits the State to assess the development 
                and implementation of its State Advance Payment 
                Program, including an agreement to share its findings 
                and lessons with other interested States in a manner to 
                be described by the Secretary, and
                    ``(J) is submitted to the Secretary on or before 
                June 30, 1995.
            ``(4) Amount and timing of advance earned income 
        payments.--
                    ``(A) Amount.--
                            ``(i) In general.--The method for 
                        determining the amount of advance earned income 
                        payments made to each participating resident is 
                        to conform to the full extent possible with the 
                        provisions of subsection (c).
                            ``(ii) Special rule.--A State may, at its 
                        election, apply the rules of subsection 
                        (c)(2)(B) by substituting `between 60 percent 
                        and 75 percent of the credit percentage in 
                        effect under section 32(b)(1) for an individual 
with the corresponding number of qualifying children' for `60 percent 
of the credit percentage in effect under section 32(b)(1) for such an 
eligible individual with 1 qualifying child' in clause (i) and `the 
same percentage (as applied in clause (i))' for `60 percent' in clause 
(ii).
                    ``(B) Timing.--The frequency of advance earned 
                income payments may be made on the basis of the payroll 
                periods of participating residents, on a single 
                statewide schedule, or on any other reasonable basis 
                prescribed by the State in its proposal; however, in no 
                event may advance earned income payments be made to any 
                participating resident less frequently than on a 
                calendar-quarter basis.
            ``(5) Payments to be treated as payments of withholding and 
        fica taxes.--
                    ``(A) In general.--For purposes of this title, 
                advance earned income payments during any calendar 
                quarter--
                            ``(i) shall neither be treated as a payment 
                        of compensation nor be included in gross 
                        income, and
                            ``(ii) shall be treated as made out of--
                                    ``(I) amounts required to be 
                                deducted by the State and withheld for 
                                the calendar quarter by the State under 
                                section 3401 (relating to wage 
                                withholding), and
                                    ``(II) amounts required to be 
                                deducted for the calendar quarter under 
                                section 3102 (relating to FICA employee 
                                taxes), and
                                    ``(III) amounts of the taxes 
                                imposed on the State for the calendar 
                                quarter under section 3111 (relating to 
                                FICA employer taxes),
                        as if the State had paid to the Secretary, on 
                        the day on which payments are made to 
                        participating residents, an amount equal to 
                        such payments.
                    ``(B) Advance payments exceed taxes due.--If for 
                any calendar quarter the aggregate amount of advance 
                earned income payments made by the responsible State 
                agency under a State Advance Payment Program exceeds 
                the sum of the amounts referred to in subparagraph 
                (A)(ii) (without regard to paragraph (6)(A)), each such 
                advance earned income payment shall be reduced by an 
                amount which bears the same ratio to such excess as 
                such advance earned income payment bears to the 
                aggregate amount of all such advance earned income 
                payments.
            ``(6) State repayment of excessive advance earned income 
        payments.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, in the case of an excessive advance 
                earned income payment a State shall be treated as 
                having deducted and withheld under section 3401 
                (relating to wage withholding), and therefore is 
                required to pay to the United States, the repayment 
                amount during the repayment calendar quarter.
                    ``(B) Excessive advance earned income payment.--For 
                purposes of this section, an excessive advance income 
                payment is that portion of any advance earned income 
                payment that, when combined with other advance earned 
                income payments previously made to the same 
                participating resident during the same calendar year, 
                exceeds the amount of earned income tax credit to which 
                that participating resident is entitled under section 
                32 for that year.
                    ``(C) Repayment amount.--The repayment amount is 
                equal to 50 percent of the excess of--
                            ``(i) excessive advance earned income 
                        payments made by a State during a particular 
                        calendar year, over
                            ``(ii) the sum of--
                                    ``(I) 4 percent of all advance 
                                earned income payments made by the 
                                State during that calendar year, and
                                    ``(II) the excessive advance earned 
                                income payments made by the State 
                                during that calendar year that have 
                                been collected from participating 
                                residents by the Secretary.
                    ``(D) Repayment calendar quarter.--The repayment 
                calendar quarter is the second calendar quarter of the 
                third calendar year after the calendar year in which an 
                excessive earned income payment is made.
            ``(7) Definitions.--For purposes of this section--
                    ``(A) State advance payment program.--The term 
                `State Advance Payment Program' means the program 
                described in a proposal submitted for designation under 
                paragraph (1) and designated by the Secretary under 
                paragraph (2).
                    ``(B) Responsible state agency.--The term 
                `responsible State agency' means the single State 
                agency that will be making the advance earned income 
                payments to residents of the State who elect to 
                participate in a State Advance Payment Program.
                    ``(C) Advance earned income payments.--The term 
                `advance earned income payments' means an amount paid 
                by a responsible State agency to residents of the State 
                pursuant to a State Advance Payment Program.
                    ``(D) Participating resident.--The term 
                `participating resident' means an individual who--
                            ``(i) is a resident of a State that has in 
                        effect a designated State Advance Payment 
                        Program,
                            ``(ii) makes the election described in 
                        paragraph (3)(C) pursuant to guidelines 
                        prescribed by the State,
                            ``(iii) certifies to the State the number 
                        of qualifying children the individual has, and
                            ``(iv) provides to the State the 
                        certifications and statement set forth in 
                        subsections (b)(1), (b)(2), (b)(3), and (b)(4) 
                        (except that for purposes of this clause (iv), 
                        the term `any employer' shall be substituted 
                        for `another employer' in subsection (b)(3)), 
                        along with any other information required by 
                        the State.''.
    (b) Technical Assistance.--The Secretaries of Treasury and Health 
and Human Services shall jointly ensure that technical assistance is 
provided to State Advance Payment Programs and that these programs are 
rigorously evaluated.
    (c) Annual Reports.--The Secretary shall issue annual reports 
detailing the extent to which--
            (1) residents participate in the State Advance Payment 
        Programs,
            (2) participating residents file Federal and State tax 
        returns,
            (3) participating residents report accurately the amount of 
        the advance earned income payments made to them by the 
        responsible State agency during the year, and
            (4) recipients of excessive advance earned income payments 
        repaid those amounts.
The report shall also contain an estimate of the amount of advance 
earned income payments made by each responsible State agency but not 
reported on the tax returns of a participating resident and the amount 
of excessive advance earned income payments.
    (d) Authorization of Appropriations.--For purposes of providing 
technical assistance described in subsection (b), preparing the reports 
described in subsection (c), and providing grants to States in support 
of designated State Advance Payment Programs, there are authorized to 
be appropriated in advance to the Secretary of the Treasury and the 
Secretary of Health and Human Services a total of $1,400,000 for fiscal 
years 1996 through 1999.