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

            H.R. 4

                           One Hundred Fourth Congress

                                     of the

                            United States of America

                              AT THE FIRST SESSION

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

                                     An Act

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

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

    SECTION 1. SHORT TITLE.

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

    SEC. 2. TABLE OF CONTENTS.

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

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

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

                     TITLE II--SUPPLEMENTAL SECURITY INCOME

    Sec. 200. Reference to Social Security Act.

                      Subtitle A--Eligibility Restrictions

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

                   Subtitle B--Benefits for Disabled Children

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

                   Subtitle C--State Supplementation Programs

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

       Subtitle D--Studies Regarding Supplemental Security Income Program

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

           Subtitle E--National Commission on the Future of Disability

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

                     Subtitle F--Retirement Age Eligibility

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

                            TITLE III--CHILD SUPPORT

    Sec. 300. Reference to Social Security Act.

         Subtitle A--Eligibility for Services; Distribution of Payments

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

                      Subtitle B--Locate and Case Tracking

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

              Subtitle C--Streamlining and Uniformity of Procedures

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

                       Subtitle D--Paternity Establishment

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

                 Subtitle E--Program Administration and Funding

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

          Subtitle F--Establishment and Modification of Support Orders

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

                    Subtitle G--Enforcement of Support Orders

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

                           Subtitle H--Medical Support

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

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

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

                         Subtitle J--Effect of Enactment

    Sec. 391. Effective dates.

          TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

                  Subtitle A--Eligibility for Federal Benefits

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

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

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

           Subtitle C--Attribution of Income and Affidavits of Support

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

                         Subtitle D--General Provisions

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

                        Subtitle E--Conforming Amendments

    Sec. 441. Conforming amendments relating to assisted housing.

               TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

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

                       TITLE VI--REFORM OF PUBLIC HOUSING

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

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

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

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

                Subtitle B--Child and Family Services Block Grant

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

                             TITLE VIII--CHILD CARE

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

                       TITLE IX--CHILD NUTRITION PROGRAMS

                      Subtitle A--National School Lunch Act

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

                     Subtitle B--Child Nutrition Act of 1966

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

                 TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

    Sec. 1001. Short title.

                         Subtitle A--Food Stamp Program

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

                   Subtitle B--Commodity Distribution Programs

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

                             TITLE XI--MISCELLANEOUS

                         Subtitle A--General Provisions

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

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

    SEC. 101. FINDINGS.

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

    SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

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

    SEC. 103. BLOCK GRANTS TO STATES.

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

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

    ``SEC. 401. PURPOSE.

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

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

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

    ``SEC. 403. GRANTS TO STATES.

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

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

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

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

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

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

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

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

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

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

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

                    ``(ii) 10 percent if--

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

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

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

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

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

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

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

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

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

                        ``(I) the sum of--

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

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

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

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

                    ``(iii) State.--The term `State' means each of the 50
                States of the United States and the District of Columbia.
                ``(E) Appropriation.--Out of any money in the Treasury of
            the United States not otherwise appropriated, there are
            appropriated for fiscal years 1997, 1998, 1999, and 2000 such
            sums as are necessary for grants under this paragraph, in a
            total amount not to exceed $800,000,000.
                ``(F) Grants reduced pro rata if insufficient
            appropriations.--If the amount appropriated pursuant to this
            paragraph for a fiscal year is less than the total amount of
            payments otherwise required to be made under this paragraph for
            the fiscal year, then the amount otherwise payable to any State
            for the fiscal year under this paragraph shall be reduced by a
            percentage equal to the amount so appropriated divided by such
            total amount.
                ``(G) Budget scoring.--Notwithstanding section 257(b)(2) of
            the Balanced Budget and Emergency Deficit Control Act of 1985,
            the baseline shall assume that no grant shall be made under
            this paragraph after fiscal year 2000.
        ``(b) Contingency Fund.--
            ``(1) Establishment.--There is hereby established in the
        Treasury of the United States a fund which shall be known as the
        `Contingency Fund for State Welfare Programs' (in this section
        referred to as the `Fund').
            ``(2) Deposits into fund.--Out of any money in the Treasury of
        the United States not otherwise appropriated, there are
        appropriated for fiscal years 1997, 1998, 1999, 2000, and 2001 such
        sums as are necessary for payment to the Fund in a total amount not
        to exceed $1,000,000,000.
            ``(3) Grants.--From amounts appropriated pursuant to paragraph
        (2), the Secretary of the Treasury shall pay to each eligible State
        for a fiscal year an amount equal to the lesser of--
                ``(A) the Federal medical assistance percentage for the
            State for the fiscal year (as defined in section 1905(b), as in
            effect on September 30, 1995) of the amount (if any) by which
            the expenditures of the State in the fiscal year under the
            State program funded under this part exceed the historic State
            expenditures (as defined in section 409(a)(7)(B)(iii)) for the
            State with respect to the fiscal year; or
                ``(B) 20 percent of the State family assistance grant for
            the fiscal year.
            ``(4) Eligible state.--For purposes of this subsection, a State
        is an eligible State for a fiscal year, if--
                ``(A) the average rate of total unemployment in such State
            (seasonally adjusted) for the period consisting of the most
            recent 3 months for which data for all States are published
            equals or exceeds 6.5 percent;
                ``(B) the average rate of total unemployment in such State
            (seasonally adjusted) for the 3-month period equals or exceeds
            110 percent of such average rate for either (or both) of the
            corresponding 3-month periods ending in the 2 preceding
            calendar years; and
                ``(C) the total amount expended by the State during the
            fiscal year under the State program funded under this part is
            not less than 100 percent of the level of historic State
            expenditures (as defined in section 409(a)(7)(B)(iii)) with
            respect to the fiscal year.
            ``(5) State.--As used in this subsection, the term `State'
        means each of the 50 States of the United States and the District
        of Columbia.
            ``(6) Payment priority.--The Secretary shall make payments
        under paragraph (3) in the order in which the Secretary receives
        claims for such payments.
            ``(7) Annual reports.--The Secretary of the Treasury shall
        annually report to the Congress on the status of the Fund.
            ``(8) Budget scoring.--Notwithstanding section 257(b)(2) of the
        Balanced Budget and Emergency Deficit Control Act of 1985, the
        baseline shall assume that no grant shall be made under this
        subsection after fiscal year 2001.

    ``SEC. 404. USE OF GRANTS.

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

    ``SEC. 405. ADMINISTRATIVE PROVISIONS.

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

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

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

    ``SEC. 407. MANDATORY WORK REQUIREMENTS.

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

                                                                 The minimum

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

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

                                                                 The minimum

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

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

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

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

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

                                                                       25

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

            ``(2) 2-parent families.--For purposes of subsection
        (b)(2)(B)(i), an adult is engaged in work for a month in a fiscal
        year if the adult is making progress in such activities for at
        least 35 hours per week during the month, not fewer than 30 hours
        per week of which are attributable to an activity described in
        paragraph (1), (2), (3), (4), (5), (7), or (8) of subsection (d)
        (or, in the case of the first 4 weeks for which the recipient is
        required pursuant to this section to participate in work
        activities, an activity described in subsection (d)(6)).
            ``(3) Limitation on vocational education activities counted as
        work.--For purposes of determining monthly participation rates
        under paragraphs (1)(B)(i) and (2)(B)(i) of subsection (b), not
        more than 20 percent of adults in all families and in 2-parent
        families determined to be engaged in work in the State for a month
        may meet the work activity requirement through participation in
        vocational educational training.
        ``(d) Work Activities Defined.--As used in this section, the term
    `work activities' means--
            ``(1) unsubsidized employment;
            ``(2) subsidized private sector employment;
            ``(3) subsidized public sector employment;
            ``(4) work experience (including work associated with the
        refurbishing of publicly assisted housing) if sufficient private
        sector employment is not available;
            ``(5) on-the-job training;
            ``(6) job search and job readiness assistance;
            ``(7) community service programs;
            ``(8) vocational educational training (not to exceed 12 months
        with respect to any individual);
            ``(9) job skills training directly related to employment;
            ``(10) education directly related to employment, in the case of
        a recipient who has not attained 20 years of age, and has not
        received a high school diploma or a certificate of high school
        equivalency; and
            ``(11) satisfactory attendance at secondary school, in the case
        of a recipient who--
                ``(A) has not completed secondary school; and
                ``(B) is a dependent child, or a head of household who has
            not attained 20 years of age.
        ``(e) Penalties Against Individuals.--
            ``(1) In general.--Except as provided in paragraph (2), if an
        adult in a family receiving assistance under the State program
        funded under this part refuses to engage in work required in
        accordance with this section, the State shall--
                ``(A) reduce the amount of assistance otherwise payable to
            the family pro rata (or more, at the option of the State) with
            respect to any period during a month in which the adult so
            refuses; or
                ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State may
        establish.
            ``(2) Exception.--Notwithstanding paragraph (1), a State may
        not reduce or terminate assistance under the State program funded
        under this part based on a refusal of an adult to work if the adult
        is a single custodial parent caring for a child who has not
        attained 6 years of age, and the adult proves that the adult has a
        demonstrated inability (as determined by the State) to obtain
        needed child care, for 1 or more of the following reasons:
                ``(A) Unavailability of appropriate child care within a
            reasonable distance from the individual's home or work site.
                ``(B) Unavailability or unsuitability of informal child
            care by a relative or under other arrangements.
                ``(C) Unavailability of appropriate and affordable formal
            child care arrangements.
        ``(f) Nondisplacement in Work Activities.--
            ``(1) In general.--Subject to paragraph (2), an adult in a
        family receiving assistance under a State program funded under this
        part attributable to funds provided by the Federal Government may
        fill a vacant employment position in order to engage in a work
        activity described in subsection (d).
            ``(2) No filling of certain vacancies.--No adult in a work
        activity described in subsection (d) which is funded, in whole or
        in part, by funds provided by the Federal Government shall be
        employed or assigned--
                ``(A) when any other individual is on layoff from the same
            or any substantially equivalent job; or
                ``(B) if the employer has terminated the employment of any
            regular employee or otherwise caused an involuntary reduction
            of its workforce in order to fill the vacancy so created with
            an adult described in paragraph (1).
            ``(3) No preemption.--Nothing in this subsection shall preempt
        or supersede any provision of State or local law that provides
        greater protection for employees from displacement.
        ``(g) Sense of the Congress.--It is the sense of the Congress that
    in complying with this section, each State that operates a program
    funded under this part is encouraged to assign the highest priority to
    requiring adults in 2-parent families and adults in single-parent
    families that include older preschool or school-age children to be
    engaged in work activities.
        ``(h) Sense of the Congress That States Should Impose Certain
    Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the
    sense of the Congress that the States should require noncustodial,
    nonsupporting parents who have not attained 18 years of age to fulfill
    community work obligations and attend appropriate parenting or money
    management classes after school.

    ``SEC. 408. PROHIBITIONS; REQUIREMENTS.

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

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

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

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

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

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

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

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

                ``(D) Rule of interpretation.--Subparagraph (A) shall not
            be interpreted to require any State to provide assistance to
            any individual for any period of time under the State program
            funded under this part.
            ``(9) Denial of assistance for 10 years to a person found to
        have fraudulently misrepresented residence in order to obtain
        assistance in 2 or more states.--A State to which a grant is made
        under section 403 shall not use any part of the grant to provide
        cash assistance to an individual during the 10-year period that
        begins on the date the individual is convicted in Federal or State
        court of having made a fraudulent statement or representation with
        respect to the place of residence of the individual in order to
        receive assistance simultaneously from 2 or more States under
        programs that are funded under this title, title XIX, or the Food
        Stamp Act of 1977, or benefits in 2 or more States under the
        supplemental security income program under title XVI.
            ``(10) Denial of assistance for fugitive felons and probation
        and parole violators.--
                ``(A) In general.--A State to which a grant is made under
            section 403 shall not use any part of the grant to provide
            assistance to any individual who is--
                    ``(i) fleeing to avoid prosecution, or custody or
                confinement after conviction, under the laws of the place
                from which the individual flees, for a crime, or an attempt
                to commit a crime, which is a felony under the laws of the
                place from which the individual flees, or which, in the
                case of the State of New Jersey, is a high misdemeanor
                under the laws of such State; or
                    ``(ii) violating a condition of probation or parole
                imposed under Federal or State law.
                ``(B) Exchange of information with law enforcement
            agencies.--If a State to which a grant is made under section
            403 establishes safeguards against the use or disclosure of
            information about applicants or recipients of assistance under
            the State program funded under this part, the safeguards shall
            not prevent the State agency administering the program from
            furnishing a Federal, State, or local law enforcement officer,
            upon the request of the officer, with the current address of
            any recipient if the officer furnishes the agency with the name
            of the recipient and notifies the agency that--
                    ``(i) the recipient--

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

                    ``(ii) the location or apprehension of the recipient is
                within such official duties.
            ``(11) Denial of assistance for minor children who are absent
        from the home for a significant period.--
                ``(A) In general.--A State to which a grant is made under
            section 403 shall not use any part of the grant to provide
            assistance for a minor child who has been, or is expected by a
            parent (or other caretaker relative) of the child to be, absent
            from the home for a period of 45 consecutive days or, at the
            option of the State, such period of not less than 30 and not
            more than 90 consecutive days as the State may provide for in
            the State plan submitted pursuant to section 402.
                ``(B) State authority to establish good cause exceptions.--
            The State may establish such good cause exceptions to
            subparagraph (A) as the State considers appropriate if such
            exceptions are provided for in the State plan submitted
            pursuant to section 402.
                ``(C) Denial of assistance for relative who fails to notify
            state agency of absence of child.--A State to which a grant is
            made under section 403 shall not use any part of the grant to
            provide assistance for an individual who is a parent (or other
            caretaker relative) of a minor child and who fails to notify
            the agency administering the State program funded under this
            part of the absence of the minor child from the home for the
            period specified in or provided for pursuant to subparagraph
            (A), by the end of the 5-day period that begins with the date
            that it becomes clear to the parent (or relative) that the
            minor child will be absent for such period so specified or
            provided for.
            ``(12) Income security payments not to be disregarded in
        determining the amount of assistance to be provided to a family.--
        If a State to which a grant is made under section 403 uses any part
        of the grant to provide assistance for any individual who is
        receiving a payment under a State plan for old-age assistance
        approved under section 2, a State program funded under part B that
        provides cash payments for foster care, or the supplemental
        security income program under title XVI, then the State shall not
        disregard the payment in determining the amount of assistance to be
        provided under the State program funded under this part, from funds
        provided by the Federal Government, to the family of which the
        individual is a member.
        ``(b) Aliens.--For special rules relating to the treatment of
    aliens, see section 402 of the Personal Responsibility and Work
    Opportunity Act of 1995.

    ``SEC. 409. PENALTIES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ``SEC. 410. APPEAL OF ADVERSE DECISION.

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

    ``SEC. 411. DATA COLLECTION AND REPORTING.

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

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

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

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

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

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

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

                        ``(I) In general.--The Secretary shall use State
                    submitted data to make each determination under clause
                    (i).
                        ``(II) Disagreement with determination.--If an
                    Indian tribe or tribal organization disagrees with
                    State submitted data described undersubclause (I), the
    Indian tribe or tribal organization may submit to the Secretary such
    additional information as may be relevant to making the determination
    under clause (i) and the Secretary may consider such information before
    making such determination.
            ``(2) Grants for indian tribes that received jobs funds.--
                ``(A) In general.--The Secretary shall pay to each eligible
            Indian tribe for each of fiscal years 1996, 1997, 1998, 1999,
            and 2000 a grant in an amount equal to the amount received by
            the Indian tribe in fiscal year 1994 under section 482(i) (as
            in effect during fiscal year 1994).
                ``(B) Eligible indian tribe.--For purposes of subparagraph
            (A), the term `eligible Indian tribe' means an Indian tribe or
            Alaska Native organization that conducted a job opportunities
            and basic skills training program in fiscal year 1995 under
            section 482(i) (as in effect during fiscal year 1995).
                ``(C) Use of grant.--Each Indian tribe to which a grant is
            made under this paragraph shall use the grant for the purpose
            of operating a program to make work activities available to
            members of the Indian tribe.
                ``(D) Appropriation.--Out of any money in the Treasury of
            the United States not otherwise appropriated, there are
            appropriated $7,638,474 for each fiscal year specified in
            subparagraph (A) for grants under subparagraph (A).
        ``(b) 3-Year Tribal Family Assistance Plan.--
            ``(1) In general.--Any Indian tribe that desires to receive a
        tribal family assistance grant shall submit to the Secretary a 3-
        year tribal family assistance plan that--
                ``(A) outlines the Indian tribe's approach to providing
            welfare-related services for the 3-year period, consistent with
            this section;
                ``(B) specifies whether the welfare-related services
            provided under the plan will be provided by the Indian tribe or
            through agreements, contracts, or compacts with intertribal
            consortia, States, or other entities;
                ``(C) identifies the population and service area or areas
            to be served by such plan;
                ``(D) provides that a family receiving assistance under the
            plan may not receive duplicative assistance from other State or
            tribal programs funded under this part;
                ``(E) identifies the employment opportunities in or near
            the service area or areas of the Indian tribe and the manner in
            which the Indian tribe will cooperate and participate in
            enhancing such opportunities for recipients of assistance under
            the plan consistent with any applicable State standards; and
                ``(F) applies the fiscal accountability provisions of
            section 5(f)(1) of the Indian Self-Determination and Education
            Assistance Act (25 U.S.C. 450c(f)(1)), relating to the
            submission of a single-agency audit report required by chapter
            75 of title 31, United States Code.
            ``(2) Approval.--The Secretary shall approve each tribal family
        assistance plan submitted in accordance with paragraph (1).
            ``(3) Consortium of tribes.--Nothing in this section shall
        preclude the development and submission of a single tribal family
        assistance plan by the participating Indian tribes of an
        intertribal consortium.
        ``(c) Minimum Work Participation Requirements and Time Limits.--The
    Secretary, with the participation of Indian tribes, shall establish for
    each Indian tribe receiving a grant under this section minimum work
    participation requirements, appropriate time limits for receipt of
    welfare-related services under the grant, and penalties against
    individuals--
            ``(1) consistent with the purposes of this section;
            ``(2) consistent with the economic conditions and resources
        available to each tribe; and
            ``(3) similar to comparable provisions in section 407(d).
        ``(d) Emergency Assistance.--Nothing in this section shall preclude
    an Indian tribe from seeking emergency assistance from any Federal loan
    program or emergency fund.
        ``(e) Accountability.--Nothing in this section shall be construed
    to limit the ability of the Secretary to maintain program funding
    accountability consistent with--
            ``(1) generally accepted accounting principles; and
            ``(2) the requirements of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450 et seq.).
        ``(f) Penalties.--
            ``(1) Subsections (a)(1), (a)(6), and (b) of section 409, shall
        apply to an Indian tribe with an approved tribal assistance plan in
        the same manner as such subsections apply to a State.
            ``(2) Section 409(a)(3) shall apply to an Indian tribe with an
        approved tribal assistance plan by substituting `meet minimum work
        participation requirements established under section 412(c)' for
        `comply with section 407(a)'.
        ``(g) Data Collection and Reporting.--Section 411 shall apply to an
    Indian tribe with an approved tribal family assistance plan.
        ``(h) Special Rule for Indian Tribes in Alaska.--
            ``(1) In general.--Notwithstanding any other provision of this
        section, and except as provided in paragraph (2), an Indian tribe
        in the State of Alaska that receives a tribal family assistance
        grant under this section shall use the grant to operate a program
        in accordance with requirements comparable to the requirements
        applicable to the program of the State of Alaska funded under this
        part. Comparability of programs shall be established on the basis
        of program criteria developed by the Secretary in consultation with
        the State of Alaska and such Indian tribes.
            ``(2) Waiver.--An Indian tribe described in paragraph (1) may
        apply to the appropriate State authority to receive a waiver of the
        requirement of paragraph (1).

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

        ``(a) Research.--The Secretary shall conduct research on the
    benefits, effects, and costs of operating different State
    programsfunded under this part, including time limits relating to
    eligibility for assistance. The research shall include studies on the
    effects of different programs and the operation of such programs on
    welfare dependency, illegitimacy, teen pregnancy, employment rates,
    child well-being, and any other area the Secretary deems appropriate.
    The Secretary shall also conduct research on the costs and benefits of
    State activities under section 409.
        ``(b) Development and Evaluation of Innovative Approaches To
    Reducing Welfare Dependency and Increasing Child Well-Being.--
            ``(1) In general.--The Secretary may assist States in
        developing, and shall evaluate, innovative approaches for reducing
        welfare dependency and increasing the well-being of minor children
        living at home with respect to recipients of assistance under
        programs funded under this part. The Secretary may provide funds
        for training and technical assistance to carry out the approaches
        developed pursuant to this paragraph.
            ``(2) Evaluations.--In performing the evaluations under
        paragraph (1), the Secretary shall, to the maximum extent feasible,
        use random assignment as an evaluation methodology.
        ``(c) Dissemination of Information.--The Secretary shall develop
    innovative methods of disseminating information on any research,
    evaluations, and studies conducted under this section, including the
    facilitation of the sharing of information and best practices among
    States and localities through the use of computers and other
    technologies.
        ``(d) Annual Ranking of States and Review of Most and Least
    Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank
        annually the States to which grants are paid under section 403 in
        the order of their success in placing recipients of assistance
        under the State program funded under this part into long-term
        private sector jobs, reducing the overall welfare caseload, and,
        when a practicable method for calculating this information becomes
        available, diverting individuals from formally applying to the
        State program and receiving assistance. In ranking States under
        this subsection, the Secretary shall take into account the average
        number of minor children living at home in families in the State
        that have incomes below the poverty line and the amount of funding
        provided each State for such families.
            ``(2) Annual review of most and least successful work
        programs.--The Secretary shall review the programs of the 3 States
        most recently ranked highest under paragraph (1) and the 3 States
        most recently ranked lowest under paragraph (1) that provide
        parents with work experience, assistance in finding employment, and
        other work preparation activities and support services to enable
        the families of such parents to leave the program and become self-
        sufficient.
        ``(e) Annual Ranking of States and Review of Issues Relating to
    Out-of-Wedlock Births.--
            ``(1) Annual ranking of states.--
                ``(A) In general.--The Secretary shall annually rank States
            to which grants are made under section 403 based on the
            following ranking factors:
                    ``(i) Absolute out-of-wedlock ratios.--The ratio
                represented by--

                        ``(I) the total number of out-of-wedlock births in
                    families receiving assistance under the State program
                    under this part in the State for the most recent fiscal
                    year for which information is available; over
                        ``(II) the total number of births in families
                    receiving assistance under the State program under this
                    part in the State for such year.

                    ``(ii) Net changes in the out-of-wedlock ratio.--The
                difference between the ratio described in subparagraph
                (A)(i) with respect to a State for the most recent fiscal
                year for which such information is available and the ratio
                with respect to the State for the immediately preceding
                year.
            ``(2) Annual review.--The Secretary shall review the programs
        of the 5 States most recently ranked highest under paragraph (1)
        and the 5 States most recently ranked the lowest under paragraph
        (1).
        ``(f) State-Initiated Evaluations.--A State shall be eligible to
    receive funding to evaluate the State program funded under this part
    if--
            ``(1) the State submits a proposal to the Secretary for the
        evaluation;
            ``(2) the Secretary determines that the design and approach of
        the evaluation is rigorous and is likely to yield information that
        is credible and will be useful to other States, and
            ``(3) unless otherwise waived by the Secretary, the State
        contributes to the cost of the evaluation, from non-Federal
        sources, an amount equal to at least 10 percent of the cost of the
        evaluation.
        ``(g) Funding of Studies and Demonstrations.--
            ``(1) In general.--Out of any money in the Treasury of the
        United States not otherwise appropriated, there are appropriated
        $15,000,000 for each fiscal year specified in section 403(a)(1) for
        the purpose of paying--
                ``(A) the cost of conducting the research described in
            subsection (a);
                ``(B) the cost of developing and evaluating innovative
            approaches for reducing welfare dependency and increasing the
            well-being of minor children under subsection (b);
                ``(C) the Federal share of any State-initiated study
            approved under subsection (f); and
                ``(D) an amount determined by the Secretary to be necessary
            to operate and evaluate demonstration projects, relating to
            this part, that are in effect or approved under section 1115 as
            of September 30, 1995, and are continued after such date.
            ``(2) Allocation.--Of the amount appropriated under paragraph
        (1) for a fiscal year--
                ``(A) 50 percent shall be allocated for the purposes
            described in subparagraphs (A) and (B) of paragraph (1), and
                ``(B) 50 percent shall be allocated for the purposes
            described in subparagraphs (C) and (D) of paragraph (1).

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

        ``(a) In General.--The Bureau of the Census shall expand the Survey
    of Income and Program Participation as necessary to obtain such
    information as will enable interested persons to evaluate the impact of
    the amendments made by title I of the Personal Responsibility and Work
    Opportunity Act of 1995 on a random national sample of recipients of
    assistance under State programs funded under this part and (as
    appropriate) other low income families, and in doing so, shall pay
    particular attention to the issues of out-of-wedlock birth, welfare
    dependency, the beginning and end of welfare spells, and the causes of
    repeat welfare spells.
        ``(b) Appropriation.--Out of any money in the Treasury of the
    United States not otherwise appropriated, there are appropriated
    $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 2000,
    2001, and 2002 for payment to the Bureau of the Census to carry out
    subsection (a).

    ``SEC. 415. WAIVERS.

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

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

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

    ``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

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

    ``SEC. 418. DEFINITIONS.

        ``As used in this part:
            ``(1) Adult.--The term `adult' means an individual who is not a
        minor child.
            ``(2) Minor child.--The term `minor child' means an individual
        who--
                ``(A) has not attained 18 years of age; or
                ``(B) has not attained 19 years of age and is a full-time
            student in a secondary school (or in the equivalent level of
            vocational or technical training).
            ``(3) Fiscal year.--The term `fiscal year' means any 12-month
        period ending on September 30 of a calendar year.
            ``(4) Indian, indian tribe, and tribal organization.--
                ``(A) In general.--Except as provided in subparagraph (B),
            the terms `Indian', `Indian tribe', and `tribal organization'
            have the meaning given such terms by section 4 of the Indian
            Self-Determination and Education Assistance Act (25 U.S.C.
            450b).
                ``(B) Special rule for indian tribes in alaska.--The term
            `Indian tribe' means, with respect to the State of Alaska, only
            the Metlakatla Indian Community of the Annette Islands Reserve
            and the following Alaska Native regional nonprofit
            corporations:
                    ``(i) Arctic Slope Native Association.
                    ``(ii) Kawerak, Inc.
                    ``(iii) Maniilaq Association.
                    ``(iv) Association of Village Council Presidents.
                    ``(v) Tanana Chiefs Conference.
                    ``(vi) Cook Inlet Tribal Council.
                    ``(vii) Bristol Bay Native Association.
                    ``(viii) Aleutian and Pribilof Island Association.
                    ``(ix) Chugachmuit.
                    ``(x) Tlingit Haida Central Council.
                    ``(xi) Kodiak Area Native Association.
                    ``(xii) Copper River Native Association.
            ``(5) State.--Except as otherwise specifically provided, the
        term `State' means the 50 States of the United States, the District
        of Columbia, the Commonwealth of Puerto Rico, the United States
        Virgin Islands, Guam, and American Samoa.''.
        SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE
          ORGANIZATIONS.
        (a) In General.--
            (1) State options.--A State may--
                (A) administer and provide services under the programs
            described in subparagraphs (A) and (B)(i) of paragraph (2)
            through contracts with charitable, religious, or private
            organizations; and
                (B) provide beneficiaries of assistance under the programs
            described in subparagraphs (A) and (B)(ii) of paragraph (2)
            with certificates, vouchers, or other forms of disbursement
            which are redeemable with such organizations.
            (2) Programs described.--The programs described in this
        paragraph are the following programs:
                (A) A State program funded under part A of title IV of the
            Social Security Act (as amended by section 103 of this Act).
                (B) Any other program established or modified under title
            I, II, or VI of this Act, that--
                    (i) permits contracts with organizations; or
                    (ii) permits certificates, vouchers, or other forms of
                disbursement to be provided to beneficiaries, as a means of
                providing assistance.
        (b) Religious Organizations.--The purpose of this section is to
    allow States to contract with religious organizations, or to allow
    religious organizations to accept certificates, vouchers, or other
    forms of disbursement under any program described in subsection (a)(2),
    on the same basis as any other nongovernmental provider without
    impairing the religious character of such organizations, and without
    diminishing the religious freedom of beneficiaries of assistance funded
    under such program.
        (c) Nondiscrimination Against Religious Organizations.--In the
    event a State exercises its authority under subsection (a), religious
    organizations are eligible, on the same basis as any other private
    organization, as contractors to provide assistance, or to accept
    certificates, vouchers, or other forms of disbursement, under any
    program described in subsection (a)(2) so long as the programs are
    implemented consistent with the Establishment Clause of the United
    States Constitution. Except as provided in subsection (k), neither the
    Federal Government nor a State receiving funds under such programs
    shall discriminate against an organization which is or applies to be a
    contractor to provide assistance, or which accepts certificates,
    vouchers, or other forms of disbursement, on the basis that the
    organization has a religious character.
        (d) Religious Character and Freedom.--
            (1) Religious organizations.--A religious organization with a
        contract described in subsection (a)(1)(A), or which accepts
        certificates, vouchers, or other forms of disbursement under
        subsection (a)(1)(B), shall retain its independence from Federal,
        State, and local governments, including such organization's control
        over the definition, development, practice, and expression of its
        religious beliefs.
            (2) Additional safeguards.--Neither the Federal Government nor
        a State shall require a religious organization to--
                (A) alter its form of internal governance; or
                (B) remove religious art, icons, scripture, or other
            symbols;
        in order to be eligible to contract to provide assistance, or to
        accept certificates, vouchers, or other forms of disbursement,
        funded under a program described in subsection (a)(2).
        (e) Rights of Beneficiaries of Assistance.--
            (1) In general.--If an individual described in paragraph (2)
        has an objection to the religious character of the organization or
        institution from which the individual receives, or would receive,
        assistance funded under any program described in subsection (a)(2),
        the State in which the individual resides shall provide such
        individual (if otherwise eligible for such assistance) within a
        reasonable period of time after the date of such objection with
        assistance from an alternative provider that is accessible to the
        individual and the value of which is not less than the value of the
        assistance which the individual would have received from such
        organization.
            (2) Individual described.--An individual described in this
        paragraph is an individual who receives, applies for, or requests
        to apply for, assistance under a program described in subsection
        (a)(2).
        (f) Employment Practices.--A religious organization's exemption
    provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C.
    2000e-1a) regarding employment practices shall not beaffected by its
    participation in, or receipt of funds from, programs described in
    subsection (a)(2).
        (g) Nondiscrimination Against Beneficiaries.--Except as otherwise
    provided in law, a religious organization shall not discriminate
    against an individual in regard to rendering assistance funded under
    any program described in subsection (a)(2) on the basis of religion, a
    religious belief, or refusal to actively participate in a religious
    practice.
        (h) Fiscal Accountability.--
            (1) In general.--Except as provided in paragraph (2), any
        religious organization contracting to provide assistance funded
        under any program described in subsection (a)(2) shall be subject
        to the same regulations as other contractors to account in accord
        with generally accepted auditing principles for the use of such
        funds provided under such programs.
            (2) Limited audit.--If such organization segregates Federal
        funds provided under such programs into separate accounts, then
        only the financial assistance provided with such funds shall be
        subject to audit.
        (i) Compliance.--Any party which seeks to enforce its rights under
    this section may assert a civil action for injunctive relief
    exclusively in an appropriate State court against the entity or agency
    that allegedly commits such violation.
        (j) Limitations on Use of Funds for Certain Purposes.--No funds
    provided directly to institutions or organizations to provide services
    and administer programs under subsection (a)(1)(A) shall be expended
    for sectarian worship, instruction, or proselytization.
        (k) Preemption.--Nothing in this section shall be construed to
    preempt any provision of a State constitution or State statute that
    prohibits or restricts the expenditure of State funds in or by
    religious organizations.
        SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR
          THEIR GRANDCHILDREN.
        (a) In General.--Not later than 90 days after the date of the
    enactment of this Act, the Secretary of Commerce, in carrying out
    section 141 of title 13, United States Code, shall expand the data
    collection efforts of the Bureau of the Census (in this section
    referred to as the ``Bureau'') to enable the Bureau to collect
    statistically significant data, in connection with its decennial census
    and its mid-decade census, concerning the growing trend of grandparents
    who are the primary caregivers for their grandchildren.
        (b) Expanded Census Question.--In carrying out subsection (a), the
    Secretary of Commerce shall expand the Bureau's census question that
    details households which include both grandparents and their
    grandchildren. The expanded question shall be formulated to distinguish
    between the following households:
            (1) A household in which a grandparent temporarily provides a
        home for a grandchild for a period of weeks or months during
        periods of parental distress.
            (2) A household in which a grandparent provides a home for a
        grandchild and serves as the primary caregiver for the grandchild.

    SEC. 106. REPORT ON DATA PROCESSING.

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

    SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

        (a) Study.--The Secretary shall, in cooperation with the States,
    study and analyze outcomes measures for evaluating the success of the
    States in moving individuals out of the welfare system through
    employment as an alternative to the minimum participation rates
    described in section 407 of the Social Security Act. The study shall
    include a determination as to whether such alternative outcomes
    measures should be applied on a national or a State-by-State basis and
    a preliminary assessment of the effects of section 409(a)(7)(C) of such
    Act.
        (b) Report.--Not later than September 30, 1998, the Secretary shall
    submit to the Committee on Finance of the Senate and the Committee on
    Ways and Means of the House of Representatives a report containing the
    findings of the study required by subsection (a).

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

        (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), as
        so redesignated by section 321(a)(9)(B) of the Social Security
        Independence and Program Improvements Act of 1994, is amended--
                (A) by inserting ``an agency administering a program funded
            under part A of title IV or'' before ``an agency operating'';
            and
                (B) by striking ``A or D of title IV of this Act'' and
            inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by
        inserting ``under a State program funded under'' before ``part A of
        title IV''.
        (b) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by striking ``aid''
        and inserting ``assistance under a State program funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
        amended--
                (A) by striking ``aid to families with dependent children''
            and inserting ``assistance under a State program funded under
            part A'';
                (B) by striking ``such aid'' and inserting ``such
            assistance''; and
                (C) by striking ``under section 402(a)(26) or'' and
            inserting ``pursuant to section 408(a)(4) or under section''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is
        amended--
                (A) by striking ``aid under a State plan approved'' and
            inserting ``assistance under a State program funded''; and
                (B) by striking ``in accordance with the standards referred
            to in section 402(a)(26)(B)(ii)'' and inserting ``by the
            State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the first
        sentence by striking ``aid under the State plan approved under part
        A'' and inserting ``assistance under the State program funded under
        part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is
        amended by striking ``1115(c)'' and inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 652(g)(2)(A)(ii)(I))
        is amended by striking ``aid is being paid under the State's plan
        approved under part A or E'' and inserting ``assistance is being
        provided under the State program funded under part A''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended in
        the matter following clause (iii) by striking ``aid was being paid
        under the State's plan approved under part A or E'' and inserting
        ``assistance was being provided under the State program funded
        under part A''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in the
        matter following subparagraph (B)--
                (A) by striking ``who is a dependent child'' and inserting
            ``with respect to whom assistance is being provided under the
            State program funded under part A'';
                (B) by inserting ``by the State agency administering the
            State plan approved under this part'' after ``found''; and
                (C) by striking ``under section 402(a)(26)'' and inserting
            ``with the State in establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by striking
        ``under section 402(a)(26)'' and inserting ``pursuant to section
        408(a)(4)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by
        striking ``aid under part A of this title'' and inserting
        ``assistance under a State program funded under part A''.
            (11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is amended--
                (A) by striking ``under section 402(a)(26)'' and inserting
            ``pursuant to section 408(a)(4)''; and
                (B) by striking ``; except that this paragraph shall not
            apply to such payments for any month following the first month
            in which the amount collected is sufficient to make such family
            ineligible for assistance under the State plan approved under
            part A;'' and inserting a comma.
            (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by
        striking ``aid under a State plan approved'' and inserting
        ``assistance under a State program funded''.
            (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by
        striking ``under section 402(a)(26)''.
            (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
        by striking ``402(a)(26)'' and inserting ``408(a)(4)''.
            (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by
        striking ``aid'' and inserting ``assistance under a State program
        funded''.
            (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
                (A) by striking ``aid under plans approved'' and inserting
            ``assistance under State programs funded''; and
                (B) by striking ``such aid'' and inserting ``such
            assistance''.
        (c) Repeal of Part F of Title IV.--Part F of title IV (42 U.S.C.
    681-687) is repealed.
        (d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C.
    1202(a)(7)) is amended by striking ``aid to families with dependent
    children under the State plan approved under section 402 of this Act''
    and inserting ``assistance under a State program funded under part A of
    title IV''.
        (e) Amendments to Title XI.--
            (1) Section 1108 (42 U.S.C. 1308) is amended--
                (A) by redesignating subsection (c) as subsection (g);
                (B) by striking all that precedes subsection (c) and
            inserting the following:
    ``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS,
    GUAM, AND AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.
        ``(a) Limitation on Total Payments to Each Territory.--
    Notwithstanding any other provision of this Act, the total amount
    certified by the Secretary of Health and Human Services under titles I,
    X, XIV, and XVI, under parts A and B of title IV, and under subsection
    (b) of this section, for payment to any territory for a fiscal year
    shall not exceed the ceiling amount for the territory for the fiscal
    year.
        ``(b) Entitlement to Matching Grant.--
            ``(1) In general.--Each territory shall be entitled to receive
        from the Secretary for each fiscal year a grant in an amount equal
        to 75 percent of the amount (if any) by which--
                ``(A) the total expenditures of the territory during the
            fiscal year under the territory programs funded under parts A
            and B of title IV; exceeds
                ``(B) the sum of--
                    ``(i) the total amount required to be paid to the
                territory (other than with respect to child care) under
                former section 403 (as in effect on September 30, 1995) for
                fiscal year 1995, which shall be determined by applying
                subparagraphs (C) and (D) of section 403(a)(1) to the
                territory;
                    ``(ii) the total amount required to be paid to the
                territory under former section 434 (as so in effect) for
                fiscal year 1995; and
                    ``(iii) the total amount expended by the territory
                during fiscal year 1995 pursuant to parts A, B, and F of
                title IV (as so in effect), other than for child care.
            ``(2) Use of grant.--Any territory to which a grant is made
        under paragraph (1) may expend the amount under any program
        operated or funded under any provision of law specified in
        subsection (a).
        ``(c) Definitions.--As used in this section:
            ``(1) Territory.--The term `territory' means Puerto Rico, the
        Virgin Islands, Guam, and American Samoa.
            ``(2) Ceiling amount.--The term `ceiling amount' means, with
        respect to a territory and a fiscal year, the mandatory ceiling
        amount with respect to the territory plus the discretionary ceiling
        amount with respect to the territory, reduced for the fiscal year
        in accordance with subsection (f).
            ``(3) Mandatory ceiling amount.--The term `mandatory ceiling
        amount' means--
                ``(A) $105,538,000 with respect to Puerto Rico;
                ``(B) $4,902,000 with respect to Guam;
                ``(C) $3,742,000 with respect to the Virgin Islands; and
                ``(D) $1,122,000 with respect to American Samoa.
            ``(4) Discretionary ceiling amount.--The term `discretionary
        ceiling amount' means, with respect to a territory and a fiscal
        year, the total amount appropriated pursuant to subsection (d)(3)
        for the fiscal year for payment to the territory.
            ``(5) Total amount expended by the territory.--The term `total
        amount expended by the territory'--
                ``(A) does not include expenditures during the fiscal year
            from amounts made available by the Federal Government; and
                ``(B) when used with respect to fiscal year 1995, also does
            not include--
                    ``(i) expenditures during fiscal year 1995 under
                subsection (g) or (i) of section 402 (as in effect on
                September 30, 1995); or
                    ``(ii) any expenditures during fiscal year 1995 for
                which the territory (but for section 1108, as in effect on
                September 30, 1995) would have received reimbursement from
                the Federal Government.
        ``(d) Discretionary Grants.--
            ``(1) In general.--The Secretary shall make a grant to each
        territory for any fiscal year in the amount appropriated pursuant
        to paragraph (3) for the fiscal year for payment to the territory.
            ``(2) Use of grant.--Any territory to which a grant is made
        under paragraph (1) may expend the amount under any program
        operated or funded under any provision of law specified in
        subsection (a).
            ``(3) Limitation on authorization of appropriations.--For
        grants under paragraph (1), there are authorized to be appropriated
        to the Secretary for each fiscal year--
                ``(A) $7,951,000 for payment to Puerto Rico;
                ``(B) $345,000 for payment to Guam;
                ``(C) $275,000 for payment to the Virgin Islands; and
                ``(D) $190,000 for payment to American Samoa.
        ``(e) Authority To Transfer Funds Among Programs.--Notwithstanding
    any other provision of this Act, any territory to which an amount is
    paid under any provision of law specified in subsection (a) may use
    part or all of the amount to carry out any program operated by the
    territory, or funded, under any other such provision of law.
        ``(f) Maintenance of Effort.--The ceiling amount with respect to a
    territory shall be reduced for a fiscal year by an amount equal to the
    amount (if any) by which--
            ``(1) the total amount expended by the territory under all
        programs of the territory operated pursuant to the provisions of
        law specified in subsection (a) (as such provisions were in effect
        for fiscal year 1995) for fiscal year 1995; exceeds
            ``(2) the total amount expended by the territory under all
        programs of the territory that are funded under the provisions of
        law specified in subsection (a) for the fiscal year that
        immediately precedes the fiscal year referred to in the matter
        preceding paragraph (1).''; and
                (C) by striking subsections (d) and (e).
            (2) Section 1109 (42 U.S.C. 1309) is amended by striking ``or
        part A of title IV,''.
            (3) Section 1115 (42 U.S.C. 1315) is amended--
                (A) in subsection (a)(2)--
                    (i) by inserting ``(A)'' after ``(2)'';
                    (ii) by striking ``403,'';
                    (iii) by striking the period at the end and inserting
                ``, and''; and
                    (iv) by adding at the end the following new
                subparagraph:
            ``(B) costs of such project which would not otherwise be a
        permissible use of funds under part A of title IV and which are not
        included as part of the costs of projects under section 1110, shall
        to the extent and for the period prescribed by the Secretary, be
        regarded as a permissible use of funds under such part.''; and
                (B) in subsection (c)(3), by striking ``under the program
            of aid to families with dependent children'' and inserting
            ``part A of such title''.
            (4) Section 1116 (42 U.S.C. 1316) is amended--
                (A) in each of subsections (a)(1), (b), and (d), by
            striking ``or part A of title IV,''; and
                (B) in subsection (a)(3), by striking ``404,''.
            (5) Section 1118 (42 U.S.C. 1318) is amended--
                (A) by striking ``403(a),'';
                (B) by striking ``and part A of title IV,''; and
                (C) by striking ``, and shall, in the case of American
            Samoa, mean 75 per centum with respect to part A of title IV''.
            (6) Section 1119 (42 U.S.C. 1319) is amended--
                (A) by striking ``or part A of title IV''; and
                (B) by striking ``403(a),''.
            (7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by
        striking ``or part A of title IV,''.
            (8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (9) Section 1137 (42 U.S.C. 1320b-7) is amended--
                (A) in subsection (b), by striking paragraph (1) and
            inserting the following:
            ``(1) any State program funded under part A of title IV of this
        Act;''; and
                (B) in subsection (d)(1)(B)--
                    (i) by striking ``In this subsection--'' and all that
                follows through ``(ii) in'' and inserting ``In this
                subsection, in'';
                    (ii) by redesignating subclauses (I), (II), and (III)
                as clauses (i), (ii), and (iii); and
                    (iii) by moving such redesignated material 2 ems to the
                left.
        (f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C.
    1352(a)(7)) is amended by striking ``aid to families with dependent
    children under the State plan approved under section 402 of this Act''
    and inserting ``assistance under a State program funded under part A of
    title IV''.
        (g) Amendment to Title XVI as in Effect With Respect to the
    Territories.--Section 1602(a)(11), as in effect without regard to the
    amendment made by section 301 of the Social Security Amendments of 1972
    (42 U.S.C. 1382 note), is amended by striking ``aid under the State
    plan approved'' and inserting ``assistance under a State program
    funded''.
        (h) Amendment to Title XVI as in Effect With Respect to the
    States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to
    read as follows: ``(A) a State program funded under part A of title
    IV,''.
        (i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 1396a(j))
    is amended by striking ``1108(c)'' and inserting ``1108(g)''.
        SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND
          RELATED PROVISIONS.
        (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is
    amended--
            (1) in the second sentence of subsection (a), by striking
        ``plan approved'' and all that follows through ``title IV of the
        Social Security Act'' and inserting ``program funded under part A
        of title IV of the Social Security Act (42 U.S.C. 601 et seq.)'';
            (2) in subsection (d)--
                (A) in paragraph (5), by striking ``assistance to families
            with dependent children'' and inserting ``assistance under a
            State program funded''; and
                (B) by striking paragraph (13) and redesignating paragraphs
            (14), (15), and (16) as paragraphs (13), (14), and (15),
            respectively;
            (3) in subsection (j), by striking ``plan approved under part A
        of title IV of such Act (42 U.S.C. 601 et seq.)'' and inserting
        ``program funded under part A of title IV of the Act (42 U.S.C. 601
        et seq.)''; and
            (4) by striking subsection (m).
        (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State plan
        approved'' and inserting ``the State program funded''; and
            (2) in subsection (e)(6), by striking ``aid to families with
        dependent children'' and inserting ``benefits under a State program
        funded''.
        (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is amended
    by striking ``State plans under the Aid to Families with Dependent
    Children Program under'' and inserting ``State programs funded under
    part A of''.
        (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), by striking
        ``to aid to families with dependent children under part A of title
        IV of the Social Security Act'' and inserting ``or are receiving
        assistance under a State program funded under part A of title IV of
        the Social Security Act (42 U.S.C. 601 et seq.)''; and
            (2) in subsection (b)(3), by adding at the end the following
        new subparagraph:
             ``(I) The Secretary may not grant a waiver under this
        paragraph on or after October 1, 1995. Any reference in this
        paragraph to a provision of title IV of the Social Security Act
        shall be deemed to be a reference to such provision as in effect on
        September 30, 1995.'';
        (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking ``operating--'' and all
        that follows through ``(ii) any other'' and inserting ``operating
        any''; and
            (2) in subsection (b)--
                (A) in paragraph (1)--
                    (i) by striking ``(b)(1) A household'' and inserting
                ``(b) A household''; and
                    (ii) in subparagraph (B), by striking ``training
                program'' and inserting ``activity'';
                (B) by striking paragraph (2); and
                (C) by redesignating subparagraphs (A) through (F) as
            paragraphs (1) through (6), respectively.
        (f) Section 5(h)(1) of the Agriculture and Consumer Protection Act
    of 1973 (Public Law 93-186; 7 U.S.C. 612c note) is amended by striking
    ``the program for aid to families with dependent children'' and
    inserting ``the State program funded''.
        (g) Section 9 of the National School Lunch Act (42 U.S.C. 1758) is
    amended--
            (1) in subsection (b)--
                (A) in paragraph (2)(C)(ii)(II)--
                    (i) by striking ``program for aid to families with
                dependent children'' and inserting ``State program
                funded''; and
                    (ii) by inserting before the period at the end the
                following: ``that the Secretary determines complies with
                standards established by the Secretary that ensure that the
                standards under the State program are comparable to or more
                restrictive than those in effect on June 1, 1995''; and
                (B) in paragraph (6)--
                    (i) in subparagraph (A)(ii)--

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

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

    SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

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

    SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

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

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

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

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

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

    SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

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

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

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

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

                     TITLE II--SUPPLEMENTAL SECURITY INCOME

    SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

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

                      Subtitle A--Eligibility Restrictions

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

                   Subtitle B--Benefits for Disabled Children

    SEC. 211. DEFINITION AND ELIGIBILITY RULES.

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

    SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

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

            ``Disposal of Resources for Less Than Fair Market Value

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

                                    ``Trusts

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

    SEC. 215. REGULATIONS.

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

                   Subtitle C--State Supplementation Programs

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

       Subtitle D--Studies Regarding Supplemental Security Income Program

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

                            ``ANNUAL REPORT ON PROGRAM

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

    SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

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

    SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

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

          Subtitle E--National Commission on the Future of Disability

    SEC. 241. ESTABLISHMENT.

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

    SEC. 242. DUTIES OF THE COMMISSION.

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

    SEC. 243. MEMBERSHIP.

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

    SEC. 244. STAFF AND SUPPORT SERVICES.

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

    SEC. 245. POWERS OF COMMISSION.

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

    SEC. 246. REPORTS.

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

    SEC. 247. TERMINATION.

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

    SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

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

                     Subtitle F--Retirement Age Eligibility

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

                                ``Retirement Age

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

                            TITLE III--CHILD SUPPORT

    SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

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

         Subtitle A--Eligibility for Services; Distribution of Payments

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

    SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

    ``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

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

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

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

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

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

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

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

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

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

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

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

    SEC. 303. PRIVACY SAFEGUARDS.

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

    SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

                      Subtitle B--Locate and Case Tracking

    SEC. 311. STATE CASE REGISTRY.

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

    SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

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

    SEC. 313. STATE DIRECTORY OF NEW HIRES.

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

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

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

    SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

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

    SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

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

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

             Subtitle C--Streamlining and Uniformity of Procedures

    SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

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

    SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

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

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

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

    SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

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

    SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

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

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

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

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

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

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

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

                      Subtitle D--Paternity Establishment

    SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

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

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

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

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

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

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

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

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

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

                        ``(I) 60 days; or

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

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

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

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

    SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

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

                 Subtitle E--Program Administration and Funding

    SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

    SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

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

    SEC. 343. REQUIRED REPORTING PROCEDURES.

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

    SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

    ``SEC. 454A. AUTOMATED DATA PROCESSING.

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

    SEC. 345. TECHNICAL ASSISTANCE.

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

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

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

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

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

          Subtitle F--Establishment and Modification of Support Orders

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

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

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

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

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

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

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

                   Subtitle G--Enforcement of Support Orders

    SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

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

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

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

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

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

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

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

    SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

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

    SEC. 366. DEFINITION OF SUPPORT ORDER.

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

    SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

    SEC. 368. LIENS.

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

    SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

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

    SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

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

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

    SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

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

                          Subtitle H--Medical Support

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

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

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

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

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

                        Subtitle J--Effect of Enactment

    SEC. 391. EFFECTIVE DATES.

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

          TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

                  Subtitle A--Eligibility for Federal Benefits

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

    SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

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

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

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

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

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

          Subtitle C--Attribution of Income and Affidavits of Support

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

                ``requirements for sponsor's affidavit of support

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

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

    SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

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

                         Subtitle D--General Provisions

    SEC. 431. DEFINITIONS.

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

    SEC. 432. REAPPLICATION FOR SSI BENEFITS.

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

    SEC. 434. STATUTORY CONSTRUCTION.

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

    SEC. 436. QUALIFYING QUARTERS.

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

                       Subtitle E--Conforming Amendments

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

              TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

    SEC. 501. REDUCTIONS.

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

    SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

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

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

                       TITLE VI--REFORM OF PUBLIC HOUSING

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

    SEC. 603. EFFECTIVE DATE.

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

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

    SEC. 701. ESTABLISHMENT OF PROGRAM.

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

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

    ``SEC. 421. PURPOSE.

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

    ``SEC. 422. ELIGIBLE STATES.

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

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

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

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

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

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

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

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

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

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

                    ``(ii) the total amount of--

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

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

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

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

    ``SEC. 426. CITIZEN REVIEW PANELS.

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

    ``SEC. 427. DATA COLLECTION AND REPORTING.

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

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

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

    ``SEC. 429. DEFINITIONS.

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

    SEC. 702. CONFORMING AMENDMENTS.

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

    SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

        (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this
        subtitle and the amendments made by this subtitle shall take effect
        on October 1, 1996.
            (2) Exception.--Section 428 of part B of title IV of the Social
        Security Act, as added by section 701, and section 702(a) shall
        take effect on the date of the enactment of this subtitle.
            (3) Temporary redesignation of section 428.--During the period
        beginning on the date of the enactment of this subtitle and ending
        on October 1, 1996, section 428 of part B of title IV of the Social
        Security Act, as added by section 701, shall be redesignated as
        section 428A.
        (b) Transition Rules.--
            (1) Claims, actions, and proceedings.--The amendments made by
        this subtitle shall not apply with respect to--
                (A) powers, duties, functions, rights, claims, penalties,
            or obligations applicable to aid, assistance, or services
            provided before the effective date of this subtitle under the
            provisions amended; and
                (B) administrative actions and proceedings commenced before
            such date, or authorized before such date to be commenced,
            under such provisions.
            (2) Closing out account for those programs terminated or
        substantially modified by this subtitle.--In closing out accounts,
        Federal and State officials may use scientifically acceptable
        statistical sampling techniques. Claims made under programs which
        are repealed or substantially amended in this subtitle and which
        involve State expenditures in cases where assistance or services
        were provided during a prior fiscal year, shall be treated as
        expenditures during fiscal year 1995 for purposes of reimbursement
        even if payment was made by a State on or after October 1, 1995.
        States shall complete the filing of all claims no later than
        September 30, 1997. Federal department heads shall--
                (A) use the single audit procedure to review and resolve
            any claims in connection with the close out of programs; and
                (B) reimburse States for any payments made for assistance
            or services provided during a prior fiscal year from funds for
            fiscal year 1995, rather than the funds authorized by this
            subtitle.
        SEC. 704. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF
          CHILDREN.
        It is the sense of the Congress that--
            (1) too many children who wish to be adopted are spending
        inordinate amounts of time in foster care;
            (2) there is an urgent need for States to increase the number
        of waiting children being adopted in a timely and lawful manner;
            (3) studies have shown that States spend an excess of $15,000
        each year on each special needs child in foster care, and would
        save significant amounts of money if they offered incentives to
        families to adopt special needs children;
            (4) States should allocate sufficient funds under this title
        for adoption assistance and medical assistance to encourage more
        families to adopt children who otherwise would languish in the
        foster care system for a period that many experts consider
        detrimental to their development;
            (5) States should offer incentives for families that adopt
        special needs children to make adoption more affordable for middle-
        class families;
            (6) when it is necessary for a State to remove a child from the
        home of the child's biological parents, the State should strive--
                (A) to provide the child with a single foster care
            placement and a single coordinated case team; and
                (B) to conclude an adoption of the child, when adoption is
            the goal of the child and the State, within one year of the
            child's placement in foster care; and
            (7) States should participate in local, regional, or national
        programs to enable maximum visibility of waiting children to
        potential parents. Such programs should include a nationwide,
        interactive computer network to disseminate information on children
        eligible for adoption to help match them with families around the
        country.

               Subtitle B--Child and Family Services Block Grant

    SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

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

    ``SECTION. 1. SHORT TITLE.

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

    ``SEC. 2. FINDINGS.

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

    ``SEC. 3. PURPOSES.

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

    ``SEC. 4. DEFINITIONS.

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

                         ``TITLE I--GENERAL BLOCK GRANT

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

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

    ``SEC. 102. ELIGIBLE STATES.

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

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

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

    ``SEC. 103. DATA COLLECTION AND REPORTING.

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

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

    ``SEC. 201. RESEARCH GRANTS.

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

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

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

    ``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

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

    ``SEC. 204. TECHNICAL ASSISTANCE.

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

    ``SEC. 205. TRAINING RESOURCES.

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

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

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

    ``SEC. 207. PEER REVIEW FOR GRANTS.

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

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

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

                        ``TITLE III--GENERAL PROVISIONS

    ``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

    ``SEC. 303. TRANSITIONAL PROVISION.

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

    ``SEC. 304. RULE OF CONSTRUCTION.

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

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

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

    SEC. 752. REAUTHORIZATIONS.

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

    SEC. 753. REPEALS.

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

                             TITLE VIII--CHILD CARE

    SEC. 801. SHORT TITLE AND REFERENCES.

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

    SEC. 802. GOALS.

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

    ``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

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

    ``SEC. 418. FUNDING FOR CHILD CARE.

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

    SEC. 804. LEAD AGENCY.

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

    SEC. 805. APPLICATION AND PLAN.

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

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

                    (ii) in subparagraph (B)--

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

                    (iii) in subparagraph (C)--

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

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

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

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

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

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

    SEC. 806. LIMITATION ON STATE ALLOTMENTS.

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

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

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

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

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

    SEC. 809. ADMINISTRATION AND ENFORCEMENT.

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

    SEC. 810. PAYMENTS.

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

    SEC. 811. ANNUAL REPORT AND AUDITS.

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

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

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

    SEC. 812. REPORT BY THE SECRETARY.

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

    SEC. 813. ALLOTMENTS.

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

    SEC. 814. DEFINITIONS.

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

    SEC. 815. REPEALS.

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

    SEC. 816. EFFECTIVE DATE.

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

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

    SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

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

    SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

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

    SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

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

    SEC. 904. SPECIAL ASSISTANCE.

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

    SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

    SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

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

    SEC. 907. COMMODITY DISTRIBUTION.

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

    SEC. 908. CHILD CARE FOOD PROGRAM.

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

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

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

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

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

                        ``(I) In general.--

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

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

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

                        ``(III) Information and determinations.--

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    SEC. 909. PILOT PROJECTS.

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

    SEC. 910. REDUCTION OF PAPERWORK.

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

    SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

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

    SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

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

    SEC. 913. INFORMATION CLEARINGHOUSE.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                    Subtitle B--Child Nutrition Act of 1966

    SEC. 921. SPECIAL MILK PROGRAM.

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

    SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

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

    SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

    SEC. 924. STATE ADMINISTRATIVE EXPENSES.

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

    SEC. 925. REGULATIONS.

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

    SEC. 926. PROHIBITIONS.

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

    SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

    SEC. 928. ACCOUNTS AND RECORDS.

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

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

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

    SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

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

    SEC. 931. NUTRITION EDUCATION AND TRAINING.

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

    SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

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

                TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

    SEC. 1001. SHORT TITLE.

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

                         Subtitle A--Food Stamp Program

    SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

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

    SEC. 1012. DEFINITION OF COUPON.

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

    SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

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

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

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

    SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

    SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

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

    SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

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

    SEC. 1018. EARNINGS OF STUDENTS.

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

    SEC. 1019. ENERGY ASSISTANCE.

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

    SEC. 1020. DEDUCTIONS FROM INCOME.

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

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

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

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

                    ``(iii) Mandatory allowance.--

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

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

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

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

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

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

    SEC. 1021. VEHICLE ALLOWANCE.

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

    SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

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

    SEC. 1025. DISQUALIFICATION.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    SEC. 1026. CARETAKER EXEMPTION.

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

    SEC. 1027. EMPLOYMENT AND TRAINING.

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

    SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

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

    SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

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

    SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

    SEC. 1033. WORK REQUIREMENT.

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

    SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

    SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

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

    SEC. 1036. BENEFITS ON RECERTIFICATION.

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

    SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

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

    SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

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

    SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

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

    SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

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

    SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

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

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

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

    SEC. 1047. EXPEDITED COUPON SERVICE.

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

    SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

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

    SEC. 1052. COLLECTION OF OVERISSUANCES.

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

    SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

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

    SEC. 1055. LIMITATION OF FEDERAL MATCH.

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

    SEC. 1056. STANDARDS FOR ADMINISTRATION.

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

    SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

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

    SEC. 1058. WAIVER AUTHORITY.

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

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

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

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

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

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

    SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

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

    SEC. 1060. RESPONSE TO WAIVERS.

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

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

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

    SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

        Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended
    by striking subsection (d) and inserting the following:
        ``(d) Employment Initiatives Program.--
            ``(1) Election to participate.--
                ``(A) In general.--Subject to the other provisions of this
            subsection, a State may elect to carry out an employment
            initiatives program under this subsection.
                ``(B) Requirement.--A State shall be eligible to carry out
            an employment initiatives program under this subsection only if
            not less than 50 percent of the households that received food
            stamp benefits during the summer of 1993 also received benefits
            under a State program funded under part A of title IV of the
            Social Security Act (42 U.S.C. 601 et seq.) during the summer
            of 1993.
            ``(2) Procedure.--
                ``(A) In general.--A State that has elected to carry out an
            employment initiatives program under paragraph (1) may use
            amounts equal to the food stamp allotments that would otherwise
            be issued to a household under the food stamp program, but for
            the operation of this subsection, to provide cash benefits in
            lieu of the food stamp allotments to the household if the
            household is eligible under paragraph (3).
                ``(B) Payment.--The Secretary shall pay to each State that
            has elected to carry out an employment initiatives program
            under paragraph (1) an amount equal to the value of the
            allotment that each household would be eligible to receive
            under this Act but for the operation of this subsection.
                ``(C) Other provisions.--For purposes of the food stamp
            program (other than this subsection)--
                    ``(i) cash assistance under this subsection shall be
                considered to be an allotment; and
                    ``(ii) each household receiving cash benefits under
                this subsection shall not receive any other food stamp
                benefit for the period for which the cash assistance is
                provided.
                ``(D) Additional payments.--Each State that has elected to
            carry out an employment initiatives program under paragraph (1)
            shall--
                    ``(i) increase the cash benefits provided to each
                household under this subsection to compensate for any State
                or local sales tax that may be collected on purchases of
                food by any household receiving cash benefits under this
                subsection, unless the Secretary determines on the basis of
                information provided by the State that the increase is
                unnecessary on the basis of the limited nature of the items
                subject to the State or local sales tax; and
                    ``(ii) pay the cost of any increase in cash benefits
                required by clause (i).
            ``(3) Eligibility.--A household shall be eligible to receive
        cash benefits under paragraph (2) if an adult member of the
        household--
                ``(A) has worked in unsubsidized employment for not less
            than the preceding 90 days;
                ``(B) has earned not less than $350 per month from the
            employment referred to in subparagraph (A) for not less than
            the preceding 90 days;
                ``(C)(i) is receiving benefits under a State program funded
            under part A of title IV of the Social Security Act (42 U.S.C.
            601 et seq.); or
                ``(ii) was receiving benefits under a State program funded
            under part A of title IV of the Social Security Act (42 U.S.C.
            601 et seq.) at the time the member firstreceived cash benefits
    under this subsection and is no longer eligible for the State program
    because of earned income;
                ``(D) is continuing to earn not less than $350 per month
            from the employment referred to in subparagraph (A); and
                ``(E) elects to receive cash benefits in lieu of food stamp
            benefits under this subsection.
            ``(4) Evaluation.--A State that operates a program under this
        subsection for 2 years shall provide to the Secretary a written
        evaluation of the impact of cash assistance under this subsection.
        The State agency, with the concurrence of the Secretary, shall
        determine the content of the evaluation.''.

    SEC. 1062. ADJUSTABLE FOOD STAMP CAP.

        Section 18 of the Food Stamp Act of 1977 (7 U.S.C. 2027) is
    amended--
            (1) in subsection (a)(1)--
                (A) in the first sentence, by striking ``1991 through
            1995'' and inserting ``1996 through 2002''; and
                (B) in the last sentence, by striking ``In each monthly
            report, the Secretary shall also state'' and inserting the
            following: ``The Secretary shall file a report each February
            15, April 15, and July 15, stating''; and
            (2) by striking subsection (b) and inserting the following:
        ``(b) Limitation on Food Stamp Allotments.--
            ``(1) Obligations.--
                ``(A) In general.--Notwithstanding any other provision of
            law, except as provided in subparagraphs (B) and (C),
            obligations to carry out this Act shall not exceed--
                    ``(i) $25,443,000,000 for fiscal year 1996;
                    ``(ii) $24,636,000,000 for fiscal year 1997;
                    ``(iii) $25,319,000,000 for fiscal year 1998;
                    ``(iv) $26,307,000,000 for fiscal year 1999;
                    ``(v) $27,568,000,000 for fiscal year 2000;
                    ``(vi) $28,602,000,000 for fiscal year 2001; and
                    ``(vii) $29,804,000,000 for fiscal year 2002.
                ``(B) Cost of food adjustment.--On October 1 of each fiscal
            year, the Secretary shall adjust the limit on obligations under
            subparagraph (A) for the fiscal year to reflect any change in
            the cost of the program due to any increase or decrease in the
            cost of the thrifty food plan compared to the cost of the
            thrifty food plan for the same period projected by the Director
            of the Congressional Budget Office prior to the date of
            enactment of this subparagraph.
                ``(C) Caseload adjustment.--On May 15 of each fiscal year,
            the Secretary shall adjust the limit on obligations under
            subparagraph (A) for the fiscal year to reflect any change in
            the cost of the program due to any increase or decrease in
            participation as estimated by comparing participation during
            the first 6 months of the fiscal year to participation for the
            same period projected by the Director of the Congressional
            Budget Office prior to the date of enactment of this
            subparagraph.
            ``(2) Reduction.--Notwithstanding any other provision of this
        Act, if the Secretary finds that for any fiscal year the
        requirements of participating States will exceed the amount of
        obligations specified in paragraph (1), the Secretary shall direct
        State agencies to reduce the value of allotments to be issued to
        households certified as eligible to participate in the food stamp
        program to the extent necessary to comply with paragraph (1).
            ``(3) Report.--The Secretary shall report to the Committee on
        Agriculture of the House of Representatives and the Committee on
        Agriculture, Nutrition, and Forestry of the Senate concerning the
        methodology and assumptions under, effects of, and adjustments
        under, this subsection.''.
    SEC. 1063. REAUTHORIZATION OF PUERTO RICO NUTRITION ASSISTANCE PROGRAM.
        The first sentence of section 19(a)(1)(A) of the Food Stamp Act of
    1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000''
    and all that follows through ``fiscal year 1995'' and inserting
    ``$1,143,000,000 for each of fiscal years 1995 and 1996, $1,174,000,000
    for fiscal year 1997, $1,204,000,000 for fiscal year 1998,
    $1,236,000,000 for fiscal year 1999, $1,268,000,000 for fiscal year
    2000, $1,301,000,000 for fiscal year 2001, and $1,335,000,000 for
    fiscal year 2002''.

    SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.

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

    ``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

        ``(a) Definition of Federal Costs.--In this section, the term
    `Federal costs' does not include any Federal costs incurred under
    section 17.
        ``(b) Election.--Subject to subsection (d), a State may elect to
    carry out a Simplified Food Stamp Program (referred to in this section
    as a `Program'), statewide or in a political subdivision of the State,
    in accordance with this section.
        ``(c) Operation of Program.--If a State elects to carry out a
    Program, within the State or a political subdivision of the State--
            ``(1) a household in which all members receive assistance under
        a State program funded under part A of title IV of the Social
        Security Act (42 U.S.C. 601 et seq.) shall automatically be
        eligible to participate in the Program; and
            ``(2) subject to subsection (f), benefits under the 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 (other than section 25); or
                ``(C) a combination of a State program funded under part A
            of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
            and the food stamp program (other than section 25).
        ``(d) Approval of Program.--
            ``(1) State plan.--A State agency may not operate a Program
        unless the Secretary approves a State plan for the operation of the
        Program under paragraph (2).
            ``(2) Approval of plan.--The Secretary shall approve any State
        plan to carry out a Program if the Secretary determines that the
        plan--
                ``(A) complies with this section; and
                ``(B) contains sufficient documentation that the plan will
            not increase Federal costs for any fiscal year.
        ``(e) Increased Federal Costs.--
            ``(1) Determination.--During each fiscal year and not later
        than 90 days after the end of each fiscal year, the Secretary shall
        determine whether a Program being carried out by a State agency is
        increasing Federal costs under this Act above the Federal costs
        incurred under the food stamp program in operation in the State or
        political subdivision of the State for the fiscal year prior to the
        implementation of the Program, adjusted for any changes in--
                ``(A) participation;
                ``(B) the income of participants in the food stamp program
            that is not attributable to public assistance; and
                ``(C) the thrifty food plan under section 3(o).
            ``(2) Notification.--If the Secretary determines that the
        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) Enforcement.--
                ``(A) Corrective action.--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 the Program from
            increasing Federal costs under this Act.
                ``(B) Termination.--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 agency operating the Program and the State agency shall
            be ineligible to operate a future Program.
        ``(f) Rules and Procedures.--
            ``(1) In general.--In operating a 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) Standardized deductions.--In operating a Program, a State
        or political subdivision of a State may standardize the deductions
        provided under section 5(e). In developing the standardized
        deduction, the State shall consider the work expenses, dependent
        care costs, and shelter costs of participating households.
            ``(3) Requirements.--In operating a Program, a State or
        political subdivision shall comply with the requirements of--
                ``(A) subsections (a) through (g) of section 7;
                ``(B) section 8(a) (except that the income of a household
            may be determined under a State program funded under part A of
            title IV of the Social Security Act (42 U.S.C. 601 et seq.));
                ``(C) subsection (b) and (d) of section 8;
                ``(D) subsections (a), (c), (d), and (n) of section 11;
                ``(E) paragraphs (8), (12), (16), (18), (20), (24), and
            (25) of section 11(e);
                ``(F) 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
                ``(G) section 16.
            ``(4) Limitation on eligibility.--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 the program.''.
        (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C.
    2020(e)), as amended by sections 1028(b) and 1044, is further amended
    by adding at the end the following:
            ``(25) if a State elects to carry out a Simplified Food Stamp
        Program under section 24, the plans of the State agency for
        operating the program, including--
                ``(A) the rules and procedures to be followed by the State
            agency to determine food stamp benefits;
                ``(B) how the State agency will address the needs of
            households that experience high shelter costs in relation to
            the incomes of the households; and
                ``(C) a description of the method by which the State agency
            will carry out a quality control system under section 16(c).''.
        (c) Conforming Amendments.--
            (1) Section 8 of the Act (7 U.S.C. 2017), as amended by section
        1039, is further amended--
                (A) by striking subsection (e); and
                (B) by redesignating subsection (f) as subsection (e).
            (2) Section 17 of the Act (7 U.S.C. 2026) is amended--
                (A) by striking subsection (i); and
                (B) by redesignating subsections (j) through (l) as
            subsections (i) through (k), respectively.

    SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.

        (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et
    seq.), as amended by section 1064, is further amended by adding at the
    end the following:

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

        ``(a) Definitions.--In this section:
            ``(1) Food assistance.--The term `food assistance' means
        assistance that may be used only to obtain food, as defined in
        section 3(g).
            ``(2) State.--The term `State' means each of the 50 States, the
        District of Columbia, Guam, and the Virgin Islands of the United
        States.
        ``(b) Establishment.--The Secretary shall establish a program to
    make grants to States in accordance with this section to provide--
            ``(1) food assistance to needy individuals and families
        residing in the State; and
            ``(2) funds for administrative costs incurred in providing the
        assistance.
        ``(c) Election.--
            ``(1) In general.--A State may annually elect to participate in
        the program established under subsection (b) if the State--
                ``(A) has fully implemented an electronic benefit transfer
            system that operates in the entire State;
                ``(B) has a payment error rate under section 16(c) that is
            not more than 6 percent as announced most recently by the
            Secretary; or
                ``(C) has a payment error rate in excess of 6 percent and
            agrees to contribute non-Federal funds for the fiscal year of
            the grant, for benefits and administration of the State's food
            assistance program, the amount determined under paragraph (2).
            ``(2) State mandatory contributions.--
                ``(A) In general.--In the case of a State that elects to
            participate in the program under paragraph (1)(C), the State
            shall agree to contribute, for a fiscal year, an amount equal
            to--
                ``(A)(i) the benefits issued in the State; multiplied by
                ``(ii) the payment error rate of the State; minus
                ``(B)(i) the benefits issued in the State; multiplied by
                ``(ii) 6 percent.
                ``(B) Determination.--Notwithstanding sections 13 and 14,
            the calculation of the contribution shall be based solely on
            the determination of the Secretary of the payment error rate.
                ``(C) Data.--For purposes of implementing subparagraph (A)
            for a fiscal year, the Secretary shall use the data for the
            most recent fiscal year available.
            ``(3) Election limitation.--
                ``(A) Re-entering food stamp program.--A State that elects
            to participate in the program under paragraph (1) may in a
            subsequent year decline to elect to participate in the program
            and instead participate in the food stamp program in accordance
            with the other sections of this Act.
                ``(B) Limitation.--Subsequent to re-entering the food stamp
            program under subparagraph (A), the State shall only be
            eligible to participate in the food stamp program in accordance
            with the other sections of this Act and shall not be eligible
            to elect to participate in the program established under
            subsection (b).
            ``(4) Program exclusive.--
                ``(A) In general.--A State that is participating in the
            program established under subsection (b) shall not be subject
            to, or receive any benefit under, this Act except as provided
            in this section.
                ``(B) Contract with federal government.--Nothing in this
            section shall prohibit a State from contracting with the
            Federal Government for the provision of services or materials
            necessary to carry out a program under this section.
        ``(d) Lead Agency.--A State desiring to receive a grant under this
    section shall designate, in an application submitted to the Secretary
    under subsection (e)(1), an appropriate State agency responsible for
    the administration of the program under this section as the lead
    agency.
        ``(e) Application and Plan.--
            ``(1) Application.--To be eligible to receive assistance under
        this section, a State shall prepare and submit to the Secretary an
        application at such time, in such manner, and containing such
        information as the Secretary shall by regulation require,
        including--
                ``(A) an assurance that the State will comply with the
            requirements of this section;
                ``(B) a State plan that meets the requirements of paragraph
            (3); and
                ``(C) an assurance that the State will comply with the
            requirements of the State plan under paragraph (3).
            ``(2) Annual plan.--The State plan contained in the application
        under paragraph (1) shall be submitted for approval annually.
            ``(3) Requirements of plan.--
                ``(A) Lead agency.--The State plan shall identify the lead
            agency.
                ``(B) Use of block grant funds.--The State plan shall
            provide that the State shall use the amounts provided to the
            State for each fiscal year under this section--
                    ``(i) to provide food assistance to needy individuals
                and families residing in the State, other than residents of
                institutions who are ineligible for food stamps under
                section 3(i); and
                    ``(ii) to pay administrative costs incurred in
                providing the assistance.
                ``(C) Groups served.--The State plan shall describe how and
            to what extent the program will serve specific groups of
            individuals and families and how the treatment will differ from
            treatment under the food stamp program under the other sections
            of this Act of the individuals and families, including--
                    ``(i) elderly individuals and families;
                    ``(ii) migrants or seasonal farmworkers;
                    ``(iii) homeless individuals and families;
                    ``(iv) individuals and families who live in
                institutions eligible under section 3(i);
                    ``(v) individuals and families with earnings; and
                    ``(vi) members of Indian tribes or tribal
                organizations.
                ``(D) Assistance for entire state.--The State plan shall
            provide that benefits under this section shall be available
            throughout the entire State.
                ``(E) Notice and hearings.--The State plan shall provide
            that an individual or family who applies for, or receives,
            assistance under this section shall be provided with notice of,
            and an opportunity for a hearing on, any action under this
            section that adversely affects the individual or family.
                ``(F) Assessment of Needs.--The State plan shall assess the
            food and nutrition needs of needy persons residing in the
            State.
                ``(G) Eligibility standards.--The State plan shall describe
            the income, resource, and other eligibility standards that are
            established for the receipt of assistance under this section.
                ``(H) Disqualification of fleeing felons.--The State plan
            shall provide for the disqualification of any individual who
            would be disqualified from participating in the food stamp
            program under section 6(k).
                ``(I) Disqualification for child support arrears.--The
            State plan shall provide for the disqualification of any
            individual who would be disqualified from participating in the
            food stamp program under section 6(n).
                ``(J) Receiving benefits in more than 1 jurisdiction.--The
            State plan shall establish a system for the exchange of
            information with other States to verify the identity and
            receipt of benefits by recipients.
                ``(K) Privacy.--The State plan shall provide for
            safeguarding and restricting the use and disclosure of
            information about any individual or family receiving assistance
            under this section.
                ``(L) Other information.--The State plan shall contain such
            other information as may be required by the Secretary.
            ``(4) Approval of application and plan.--The Secretary shall
        approve an application and State plan that satisfies the
        requirements of this section.
        ``(f) No Individual or Family Entitlement to Assistance.--Nothing
    in this section--
            ``(1) entitles any individual or family to assistance under
        this section; or
            ``(2) limits the right of a State to impose additional
        limitations or conditions on assistance under this section.
        ``(g) Benefits for Aliens.--
            ``(1) Eligibility.--No individual who is an alien shall be
        eligible to receive benefits under a State plan approved under
        subsection (e)(4) if the individual is not eligible to participate
        in the food stamp program due to the alien status of the
        individual.
            ``(2) Income.--The State plan shall provide that the income of
        an alien shall be determined in accordance with section 5(i).
        ``(h) Employment and Training.--
            ``(1) Work requirements.--No individual or household shall be
        eligible to receive benefits under a State plan funded under this
        section if the individual or household is not eligible to
        participate in the food stamp program under subsection (d) or (o)
        of section 6.
            ``(2) Work programs.--Each State shall implement an employment
        and training program in accordance with the terms and conditions of
        section 6(d)(4) for individuals under the program and shall be
        eligible to receive funding under section 16(h).
        ``(i) Enforcement.--
            ``(1) Review of compliance with state plan.--The Secretary
        shall review and monitor State compliance with this section and the
        State plan approved under subsection (e)(4).
            ``(2) Noncompliance.--
                ``(A) In general.--If the Secretary, after reasonable
            notice to a State and opportunity for a hearing, finds that--
                    ``(i) there has been a failure by the State to comply
                substantially with any provision or requirement set forth
                in the State plan approved under subsection (e)(4); or
                    ``(ii) in the operation of any program or activity for
                which assistance is provided under this section, there is a
                failure by the State to comply substantially with any
                provision of this section;
            the Secretary shall notify the State of the finding and that no
            further grants will be made to the State under this section
            (or, in the case of noncompliance in the operation of a program
            or activity, that no further grants to the State will be made
            with respect to the program or activity) until the Secretary is
            satisfied that there is no longer any failure to comply or that
            the noncompliance will be promptly corrected.
                ``(B) Other penalties.--In the case of a finding of
            noncompliance made pursuant to subparagraph (A), the Secretary
            may, in addition to, or in lieu of, imposing the penalties
            described in subparagraph (A), impose other appropriate
            penalties, including recoupment of money improperly expended
            for purposes prohibited or not authorized by this section and
            disqualification from the receipt of financial assistance under
            this section.
                ``(C) Notice.--The notice required under subparagraph (A)
            shall include a specific identification of any additional
            penalty being imposed under subparagraph (B).
            ``(3) Issuance of regulations.--The Secretary shall establish
        by regulation procedures for--
                ``(A) receiving, processing, and determining the validity
            of complaints made to the Secretary concerning anyfailure of a
    State to comply with the State plan or any requirement of this section;
    and
                ``(B) imposing penalties under this section.
        ``(j) Grant.--
            ``(1) In general.--For each fiscal year, the Secretary shall
        pay to a State that has an application approved by the Secretary
        under subsection (e)(4) an amount that is equal to the grant of the
        State under subsection (m) for the fiscal year.
            ``(2) Method of Grant.--The Secretary shall make a grant to a
        State for a fiscal year under this section by issuing 1 or more
        letters of credit for the fiscal year, with necessary adjustments
        on account of overpayments or underpayments, as determined by the
        Secretary.
            ``(3) Spending of grants by state.--
                ``(A) In general.--Except as provided in subparagraph (B),
            a grant to a State determined under subsection (m)(1) for a
            fiscal year may be expended by the State only in the fiscal
            year.
                ``(B) Carryover.--The State may reserve up to 10 percent of
            a grant determined under subsection (m)(1) for a fiscal year to
            provide assistance under this section in subsequent fiscal
            years, except that the reserved funds may not exceed 30 percent
            of the total grant received under this section for a fiscal
            year.
            ``(4) Food assistance and administrative expenditures.--In each
        fiscal year, not more than 6 percent of the Federal and State funds
        required to be expended by a State under this section shall be used
        for administrative expenses.
            ``(5) Provision of food assistance.--A State may provide food
        assistance under this section in any manner determined appropriate
        by the State, such as electronic benefit transfer limited to food
        purchases, coupons limited to food purchases, or direct provision
        of commodities.
        ``(k) Quality Control.--Each State participating in the program
    established under this section shall maintain a system in accordance
    with, and shall be subject to section 16(c), including sanctions and
    eligibility for incentive payment under section 16(c), adjusted for
    State specific characteristics under regulations issued by the
    Secretary.
        ``(l) Nondiscrimination.--
            ``(1) In general.--The Secretary shall not provide financial
        assistance for any program, project, or activity under this section
        if any person with responsibilities for the operation of the
        program, project, or activity discriminates with respect to the
        program, project, or activity because of race, religion, color,
        national origin, sex, or disability.
            ``(2) Enforcement.--The powers, remedies, and procedures set
        forth in title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
        et seq.) may be used by the Secretary to enforce paragraph (1).
        ``(m) Grant Calculation.--
            ``(1) State grant.--
                ``(A) In general.--Except as provided in subparagraph (B),
            from the amounts made available under section 18 for each
            fiscal year, the Secretary shall provide a grant to each State
            participating in the program established under this section an
            amount that is equal to the sum of--
                    ``(i) the greater of, as determined by the Secretary--

                        ``(I) the total dollar value of all benefits issued
                    under the food stamp program established under this Act
                    by the State during fiscal year 1994; or
                        ``(II) the average per fiscal year of the total
                    dollar value of all benefits issued under the food
                    stamp program by the State during each of fiscal years
                    1992 through 1994; and

                    ``(ii) the greater of, as determined by the Secretary--

                        ``(I) the total amount received by the State for
                    administrative costs under section 16(a) (not including
                    any adjustment under section 16(c)) for fiscal year
                    1994; or
                        ``(II) the average per fiscal year of the total
                    amount received by the State for administrative costs
                    under section 16(a) (not including any adjustment under
                    section 16(c)) for each of fiscal years 1992 through
                    1994.

                ``(B) Insufficient funds.--If the Secretary finds that the
            total amount of grants to which States would otherwise be
            entitled for a fiscal year under subparagraph (A) will exceed
            the amount of funds that will be made available to provide the
            grants for the fiscal year, the Secretary shall reduce the
            grants made to States under this subsection, on a pro rata
            basis, to the extent necessary.
            ``(2) Reduction.--The Secretary shall reduce the grant of a
        State by the amount a State has agreed to contribute under
        subsection (c)(1)(C).''.
        (b) Employment and Training Funding.--Section 16(h) of the Act (7
    U.S.C. 2025(a)), as amended by section 1027(d)(2), is further amended
    by adding at the end the following:
            ``(6) Block grant states.--Each State electing to operate a
        program under section 25 shall--
                ``(A) receive the greater of--
                    ``(i) the total dollar value of the funds received
                under paragraph (1) by the State during fiscal year 1994;
                or
                    ``(ii) the average per fiscal year of the total dollar
                value of all funds received under paragraph (1) by the
                State during each of fiscal years 1992 through 1994; and
                ``(B) be eligible to receive funds under paragraph (2),
            within the limitations in section 6(d)(4)(K).''.
        (c) Research On Optional State Food Assistance Block Grant.--
    Section 17 of the Act (7 U.S.C. 2026), as amended by section
    1064(c)(2), is further amended by adding at the end the following:
        ``(l) Research On Optional State Food Assistance Block Grant.--The
    Secretary may conduct research on the effects and costs of a State
    program carried out under section 25.''.

    SEC. 1066. AMERICAN SAMOA.

        The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by
    section 1065, is further amended by adding at the end the following:

    ``SEC. 26. TERRITORY OF AMERICAN SAMOA.

        ``From amounts made available to carry out this Act, the Secretary
    may pay to the Territory of American Samoa not more than $5,300,000 for
    each of fiscal years 1996 through 2002 to finance 100 percent of the
    expenditures for the fiscal year for a nutrition assistance program
    extended under section 601(c) of Public Law 96-597 (48 U.S.C.
    1469d(c)).''.

    SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

        The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by
    section 1066, is further amended by adding at the end the following:

    ``SEC. 27. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

        ``(a) Definition of Community Food Projects.--In this section, the
    term `community food project' means a community-based project that
    requires a 1-time infusion of Federal assistance to become self-
    sustaining and that is designed to--
            ``(1) meet the food needs of low-income people;
            ``(2) increase the self-reliance of communities in providing
        for their own food needs; and
            ``(3) promote comprehensive responses to local food, farm, and
        nutrition issues.
        ``(b) Authority To Provide Assistance.--
            ``(1) In general.--From amounts made available to carry out
        this Act, the Secretary may make grants to assist eligible private
        nonprofit entities to establish and carry out community food
        projects.
            ``(2) Limitation on grants.--The total amount of funds provided
        as grants under this section for any fiscal year may not exceed
        $2,500,000.
        ``(c) Eligible Entities.--To be eligible for a grant under
    subsection (b), a private nonprofit entity must--
            ``(1) have experience in the area of--
                ``(A) community food work, particularly concerning small
            and medium-sized farms, including the provision of food to
            people in low-income communities and the development of new
            markets in low-income communities for agricultural producers;
            or
                ``(B) job training and business development activities for
            food-related activities in low-income communities;
            ``(2) demonstrate competency to implement a project, provide
        fiscal accountability, collect data, and prepare reports and other
        necessary documentation; and
            ``(3) demonstrate a willingness to share information with
        researchers, practitioners, and other interested parties.
        ``(d) Preference for Certain Projects.--In selecting community food
    projects to receive assistance under subsection (b), the Secretary
    shall give a preference to projects designed to--
            ``(1) develop linkages between 2 or more sectors of the food
        system;
            ``(2) support the development of entrepreneurial projects;
            ``(3) develop innovative linkages between the for-profit and
        nonprofit food sectors; or
            ``(4) encourage long-term planning activities and multi-system,
        interagency approaches.
        ``(e) Matching Funds Requirements.--
            ``(1) Requirements.--The Federal share of the cost of
        establishing or carrying out a community food project that receives
        assistance under subsection (b) may not exceed 50 percent of the
        cost of the project during the term of the grant.
            ``(2) Calculation.--In providing for the non-Federal share of
        the cost of carrying out a community food project, the entity
        receiving the grant shall provide for the share through a payment
        in cash or in kind, fairly evaluated, including facilities,
        equipment, or services.
            ``(3) Sources.--An entity may provide for the non-Federal share
        through State government, local government, or private sources.
        ``(f) Term of Grant.--
            ``(1) Single grant.--A community food project may be supported
        by only a single grant under subsection (b).
            ``(2) Term.--The term of a grant under subsection (b) may not
        exceed 3 years.
        ``(g) Technical Assistance and Related Information.--
            ``(1) Technical assistance.--In carrying out this section, the
        Secretary may provide technical assistance regarding community food
        projects, processes, and development to an entity seeking the
        assistance.
            ``(2) Sharing Information.--
                ``(A) In general.--The Secretary may provide for the
            sharing of information concerning community food projects and
            issues among and between government, private for-profit and
            nonprofit groups, and the public through publications,
            conferences, and other appropriate forums.
                ``(B) Other interested parties.--The Secretary may share
            information concerning community food projects with
            researchers, practitioners, and other interested parties.
        ``(h) Evaluation.--
            ``(1) In general.--The Secretary shall provide for the
        evaluation of the success of community food projects supported
        using funds under this section.
            ``(2) Report.--Not later than January 30, 2002, the Secretary
        shall submit a report to Congress regarding the results of the
        evaluation.''.

                  Subtitle B--Commodity Distribution Programs

    SEC. 1071. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD
    PROGRAM.
        (a) Reauthorization.--The first sentence of section 4(a) of the
    Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7
    U.S.C. 612c note) is amended by striking ``1995'' and inserting
    ``2002''.
        (b) Funding.--Section 5 of the Act (Public Law 93-86; 7 U.S.C. 612c
    note) is amended--
            (1) in subsection (a)(2), by striking ``1995'' and inserting
        ``2002''; and
            (2) in subsection (d)(2), by striking ``1995'' and inserting
        ``2002''.

    SEC. 1072. 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 Act (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 Act (7 U.S.C. 612c note) is amended--
            (1) in the first 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) Delivery of Commodities.--Section 214 of the Act (7 U.S.C. 612c
    note) is amended--
            (1) by striking subsections (a) through (e) and (j);
            (2) by redesignating subsections (f) through (i) as subsections
        (a) through (d), respectively;
            (3) in subsection (b), as redesignated by paragraph (2)--
                (A) in the first sentence, by striking ``subsection (f) or
            subsection (j) if applicable,'' and inserting ``subsection
            (a)''; and
                (B) in the second sentence, by striking ``subsection (f)''
            and inserting ``subsection (a)'';
            (4) by striking subsection (c), as redesignated by paragraph
        (2), and inserting the following:
        ``(c) Administration.--
            ``(1) In general.--Commodities made available for each fiscal
        year under this section shall be delivered at reasonable intervals
        to States based on the grants calculated under subsection (a), or
        reallocated under subsection (b), before December 31 of the
        following fiscal year.
            ``(2) Entitlement.--Each State shall be entitled to receive the
        value of additional commodities determined under subsection (a).'';
        and
            (5) in subsection (d), as redesignated by paragraph (2), by
        striking ``or reduce'' and all that follows through ``each fiscal
        year''.
        (e) Technical Amendments.--The Act (7 U.S.C. 612c note) is
    amended--
            (1) in the first 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'';
            (3) in the first sentence of section 210(e), by striking
        ``(except as otherwise provided for in section 214(j))''; and
            (4) by striking section 212.
        (f) Report on EFAP.--Section 1571 of the Food Security Act of 1985
    (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
        (g) Availability of Commodities Under the Food Stamp Program.--The
    Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by section
    1067, is further amended by adding at the end the following:
        ``SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
          ASSISTANCE PROGRAM.
        ``(a) Purchase of Commodities.--From amounts appropriated under
    this Act, for each of fiscal years 1997 through 2002, the Secretary
    shall purchase $300,000,000 of a variety of nutritious and useful
    commodities of the types that the Secretary has the authority to
    acquire through the Commodity Credit Corporation or under section 32 of
    the Act entitled `An Act to amend the Agricultural Adjustment Act, and
    for other purposes', approved August 24, 1935 (7 U.S.C. 612c), and
    distribute the commodities to States for distribution in accordance
    with section 214 of the Emergency Food Assistance Act of 1983 (Public
    Law 98-8; 7 U.S.C. 612c note).
        ``(b) Basis for Commodity Purchases.--In purchasing commodities
    under subsection (a), the Secretary shall, to the extent practicable
    and appropriate, make purchases based on--
            ``(1) agricultural market conditions;
            ``(2) preferences and needs of States and distributing
        agencies; and
            ``(3) preferences of recipients.''.
        (h) Effective Date.--The amendments made by subsection (d) shall
    become effective on October 1, 1996.

    SEC. 1073. 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. 1074. HUNGER PREVENTION PROGRAMS.

        The Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C.
    612c note) is amended--
            (1) by striking section 110;
            (2) by striking subtitle C of title II; and
            (3) by striking section 502.

    SEC. 1075. 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).

    SEC. 1076. NATIONAL COMMODITY PROCESSING.

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

                            TITLE XI--MISCELLANEOUS

    SEC. 1101. 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. 1102. 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. 1103. 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. 1104. SENSE OF THE SENATE REGARDING THE INABILITY OF THE NON-
    CUSTODIAL PARENT TO PAY CHILD SUPPORT.
        It is the sense of the Senate that--
        (a) States should diligently continue their efforts to enforce
    child support payments by the non-custodial parent to the custodial
    parent, regardless of the employment status or location of the non-
    custodial parent; and
        (b) States are encouraged to pursue pilot programs in which the
    parents of a non-adult, non-custodial parent who refuses to or is
    unable to pay child support must--
            (1) pay or contribute to the child support owed by the non-
        custodial parent; or
            (2) otherwise fulfill all financial obligations and meet all
        conditions imposed on the non-custodial parent, such as
        participation in a work program or other related activity.

    SEC. 1105. 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. 1106. 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. 1107. 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. 1108. 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. 1109. ABSTINENCE EDUCATION.

        (a) Increases in Funding.--Section 501(a) of the Social Security
    Act (42 U.S.C. 701(a)) is amended in the matter preceding paragraph (1)
    by striking ``Fiscal year 1990 and each fiscal year thereafter'' and
    inserting ``Fiscal years 1990 through 1995 and $761,000,000 for fiscal
    year 1996 and each fiscal year thereafter''.
        (b) Abstinence Education.--Section 501(a)(1) of such Act (42 U.S.C.
    701(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                ``(E) to provide abstinence education, and at the option of
            the State, where appropriate, mentoring, counseling, and adult
            supervision to promote abstinence from sexual activity, with a
            focus on those groups which are most likely to bear children
            out-of-wedlock.''.
        (c) Abstinence Education Defined.--Section 501(b) of such Act (42
    U.S.C. 701(b)) is amended by adding at the end the following new
    paragraph:
            ``(5) Abstinence education.--For purposes of this subsection,
        the term `abstinence education' means an educational or
        motivational program which--
                ``(A) has as its exclusive purpose, teaching the social,
            psychological, and health gains to be realized by abstaining
            from sexual activity;
                ``(B) teaches abstinence from sexual activity outside
            marriage as the expected standard for all school age children;
                ``(C) teaches that abstinence from sexual activity is the
            only certain way to avoid out-of-wedlock pregnancy, sexually
            transmitted diseases, and other associated health problems;
                ``(D) teaches that a mutually faithful monogamous
            relationship in context of marriage is the expected standard of
            human sexual activity;
                ``(E) teaches that sexual activity outside of the context
            of marriage is likely to have harmful psychological and
            physical effects;
                ``(F) teaches that bearing children out-of-wedlock is
            likely to have harmful consequences for the child, the child's
            parents, and society;
                ``(G) teaches young people how to reject sexual advances
            and how alcohol and drug use increases vulnerability to sexual
            advances; and
                ``(H) teaches the importance of attaining self-sufficiency
            before engaging in sexual activity.''.
        (d) Set-Aside.--
            (1) In general.--Section 502(c) of such Act (42 U.S.C. 702(c))
        is amended in the matter preceding paragraph (1) by striking
        ``From'' and inserting ``Except as provided in subsection (e),
        from''.
            (2) Set-aside.--Section 502 of such Act (42 U.S.C. 702) is
        amended by adding at the end the following new subsection:
        ``(e) Of the amounts appropriated under section 501(a) for any
    fiscal year, the Secretary shall set aside $75,000,000 for abstinence
    education in accordance with section 501(a)(1)(E).''.
    SEC. 1110. 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. 1111. 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.''.

                                   Speaker of the House of Representatives.

                                Vice President of the United States and
                                                   President of the Senate.