[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4 Reported in Senate (RS)]





                                                       Calendar No. 125

104th CONGRESS

  1st Session

                                H. R. 4

                          [Report No. 104-96]

_______________________________________________________________________

                                 AN ACT

 To restore the American family, reduce illegitimacy, control welfare 
                spending and reduce welfare dependence.

_______________________________________________________________________

                 June 9 (legislative day, June 5), 1995

        Reported with an amendment and an amendment to the title





                                                       Calendar No. 125
104th CONGRESS
  1st Session
                                 H. R. 4

                          [Report No. 104-96]


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 29 (legislative day, March 27), 1995

     Received; read twice and referred to the Committee on Finance

                 June 9 (legislative day, June 5), 1995

Reported under authority of the Senate on June 8 (legislative day, June 
 5), 1995, by Mr. Packwood, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
 To restore the American family, reduce illegitimacy, control welfare 
                spending and reduce welfare dependence.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Personal Responsibility Act 
of 1995''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents of this Act is as follows:</DELETED>

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

<DELETED>Sec. 100. Sense of the Congress.
<DELETED>Sec. 101. Block grants to States.
<DELETED>Sec. 102. Report on data processing.
<DELETED>Sec. 103. Transfers.
<DELETED>Sec. 104. Conforming amendments to the Social Security Act.
<DELETED>Sec. 105. Conforming amendments to other laws.
<DELETED>Sec. 106. Continued application of current standards under 
                            medicaid program.
<DELETED>Sec. 107. Effective date.
        <DELETED>TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM

<DELETED>Sec. 201. Establishment of program.
<DELETED>Sec. 202. Conforming amendments.
<DELETED>Sec. 203. Continued application of current standards under 
                            medicaid program.
<DELETED>Sec. 204. Effective date.
<DELETED>Sec. 205. Sense of the Congress regarding timely adoption of 
                            children.
   <DELETED>TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION 
                               ASSISTANCE

              <DELETED>Subtitle A--Child Care Block Grants

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

        <DELETED>Chapter 1--Family Nutrition Block Grant Program

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

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

<DELETED>Sec. 361. Repealers.
     <DELETED>Subtitle C--Other Repealers and Conforming Amendments

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

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

<DELETED>Sec. 391. Effective date.
<DELETED>Sec. 392. Application of amendments and repealers.
 <DELETED>TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
<DELETED>Sec. 400. Statements of national policy concerning welfare and 
                            immigration.
     <DELETED>Subtitle A--Eligibility for Federal Benefits Programs

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

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

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

<DELETED>Sec. 431. Definitions.
<DELETED>Sec. 432. Construction.
               <DELETED>Subtitle E--Conforming Amendments

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

<DELETED>Sec. 501. Short title.
         <DELETED>Subtitle A--Commodity Distribution Provisions

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

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

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

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

<DELETED>Sec. 571. Authority to establish authorization periods.
<DELETED>Sec. 572. Condition precedent for approval of retail food 
                            stores and wholesale food concerns.
<DELETED>Sec. 573. Waiting period for retail food stores and wholesale 
                            food concerns that are denied approval to 
                            accept coupons.
<DELETED>Sec. 574. Disqualification of retail food stores and wholesale 
                            food concerns.
<DELETED>Sec. 575. Authority to suspend stores violating program 
                            requirements pending administrative and 
                            judicial review.
<DELETED>Sec. 576. Criminal forfeiture.
<DELETED>Sec. 577. Expanded definition of ``coupon''.
<DELETED>Sec. 578. Doubled penalties for violating food stamp program 
                            requirements.
<DELETED>Sec. 579. Disqualification of convicted individuals.
<DELETED>Sec. 580. Claims collection.
<DELETED>Sec. 581. Denial of food stamp benefits for 10 years to 
                            individuals found to have fraudulently 
                            misrepresented residence in order to obtain 
                            benefits simultaneously in 2 or more 
                            States.
<DELETED>Sec. 582. Disqualification relating to child support arrears.
<DELETED>Sec. 583. Elimination of food stamp benefits with respect to 
                            fugitive felons and probation and parole 
                            violators.
   <DELETED>Subtitle C--Effective Dates and Miscellaneous Provisions

<DELETED>Sec. 591. Effective dates.
<DELETED>Sec. 592. Sense of the Congress.
<DELETED>Sec. 593. Deficit reduction.
            <DELETED>TITLE VI--SUPPLEMENTAL SECURITY INCOME

<DELETED>Sec. 601. Denial of supplemental security income benefits by 
                            reason of disability to drug addicts and 
                            alcoholics.
<DELETED>Sec. 602. Supplemental security income benefits for disabled 
                            children.
<DELETED>Sec. 603. Examination of mental listings used to determine 
                            eligibility of children for SSI benefits by 
                            reason of disability.
<DELETED>Sec. 604. Limitation on payments to Puerto Rico, the Virgin 
                            Islands, and Guam under programs of aid to 
                            the aged, blind, or disabled.
<DELETED>Sec. 605. Repeal of maintenance of effort requirements 
                            applicable to optional State programs for 
                            supplementation of SSI benefits.
<DELETED>Sec. 606. 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.
<DELETED>Sec. 607. Denial of SSI benefits for fugitive felons and 
                            probation and parole violators.
                   <DELETED>TITLE VII--CHILD SUPPORT

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

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

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

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

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

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

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

<DELETED>Sec. 761. Federal income tax refund offset.
<DELETED>Sec. 762. Authority to collect support from Federal employees.
<DELETED>Sec. 763. Enforcement of child support obligations of members 
                            of the Armed Forces.
<DELETED>Sec. 764. Voiding of fraudulent transfers.
<DELETED>Sec. 765. Sense of the Congress that States should suspend 
                            drivers', business, and occupational 
                            licenses of persons owing past-due child 
                            support.
<DELETED>Sec. 766. Work requirement for persons owing past-due child 
                            support.
<DELETED>Sec. 767. Definition of support order.
<DELETED>Sec. 768. Liens.
<DELETED>Sec. 769. State law authorizing suspension of licenses.
                  <DELETED>Subtitle H--Medical Support

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

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

<DELETED>Sec. 791. Effective dates.
             <DELETED>TITLE VIII--MISCELLANEOUS PROVISIONS

<DELETED>Sec. 801. Scoring.
<DELETED>Sec. 802. Provisions to encourage electronic benefit transfer 
                            systems.
   <DELETED>TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY 
                           FAMILIES</DELETED>

<DELETED>SEC. 100. SENSE OF THE CONGRESS.</DELETED>

<DELETED>    It is the sense of the Congress that--</DELETED>
        <DELETED>    (1) marriage is the foundation of a successful 
        society;</DELETED>
        <DELETED>    (2) marriage is an essential social institution 
        which promotes the interests of children and society at 
        large;</DELETED>
        <DELETED>    (3) the negative consequences of an out-of-wedlock 
        birth on the child, the mother, and society are well documented 
        as follows:</DELETED>
                <DELETED>    (A) the illegitimacy rate among black 
                Americans was 26 percent in 1965, but today the rate is 
                68 percent and climbing;</DELETED>
                <DELETED>    (B) the illegitimacy rate among white 
                Americans has risen tenfold, from 2.29 percent in 1960 
                to 22 percent today;</DELETED>
                <DELETED>    (C) the total of all out-of-wedlock births 
                between 1970 and 1991 has risen from 10 percent to 30 
                percent and if the current trend continues, 50 percent 
                of all births by the year 2015 will be out-of-
                wedlock;</DELETED>
                <DELETED>    (D) </DELETED>\<DELETED>3/4</DELETED>\ 
                <DELETED>of illegitimate births among whites are to 
                women with a high school education or less;</DELETED>
                <DELETED>    (E) the 1-parent family is 6 times more 
                likely to be poor than the 2-parent family;</DELETED>
                <DELETED>    (F) children born into families receiving 
                welfare assistance are 3 times more likely than 
                children not born into families receiving welfare to be 
                on welfare when they reach adulthood;</DELETED>
                <DELETED>    (G) teenage single parent mothering is the 
                single biggest contributor to low birth weight 
                babies;</DELETED>
                <DELETED>    (H) children born out-of-wedlock are more 
                likely to experience low verbal cognitive attainment, 
                child abuse, and neglect;</DELETED>
                <DELETED>    (I) young people from single parent or 
                stepparent families are 2 to 3 times more likely to 
                have emotional or behavioral problems than those from 
                intact families;</DELETED>
                <DELETED>    (J) young white women who were raised in a 
                single parent family are more than twice as likely to 
                have children out-of-wedlock and to become parents as 
                teenagers, and almost twice as likely to have their 
                marriages end in divorce, as are children from 2-parent 
                families;</DELETED>
                <DELETED>    (K) the younger the single parent mother, 
                the less likely she is to finish high school;</DELETED>
                <DELETED>    (L) young women who have children before 
                finishing high school are more likely to receive 
                welfare assistance for a longer period of 
                time;</DELETED>
                <DELETED>    (M) 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;</DELETED>
                <DELETED>    (N) the absence of a father in the life of 
                a child has a negative effect on school performance and 
                peer adjustment;</DELETED>
                <DELETED>    (O) the likelihood that a young black man 
                will engage in criminal activities doubles if he is 
                raised without a father and triples if he lives in a 
                neighborhood with a high concentration of single parent 
                families; and</DELETED>
                <DELETED>    (P) the greater the incidence of single 
                parent families in a neighborhood, the higher the 
                incidence of violent crime and burglary; and</DELETED>
        <DELETED>    (4) in light of this demonstration of the crisis 
        in our Nation, the reduction of out-of-wedlock births is an 
        important government interest and the policy contained in 
        provisions of this title address the crisis.</DELETED>

<DELETED>SEC. 101. BLOCK GRANTS TO STATES.</DELETED>

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

<DELETED>``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR 
                        NEEDY FAMILIES</DELETED>

<DELETED>``SEC. 401. PURPOSE.</DELETED>

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

<DELETED>``SEC. 402. ELIGIBLE STATES; STATE PLAN.</DELETED>

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

<DELETED>``SEC. 403. PAYMENTS TO STATES.</DELETED>

<DELETED>    ``(a) Entitlements.--</DELETED>
        <DELETED>    ``(1) Grants for family assistance.--</DELETED>
                <DELETED>    ``(A) In general.--Each eligible State 
                shall be entitled to receive from the Secretary for 
                each of fiscal years 1996, 1997, 1998, 1999, and 2000 a 
                grant in an amount equal to the State family assistance 
                grant for the fiscal year.</DELETED>
                <DELETED>    ``(B) Grant increased to reward states 
                that reduce out-of-wedlock births.--The amount of the 
                grant payable to a State under subparagraph (A) for 
                fiscal year 1998 or any succeeding fiscal year shall be 
                increased by--</DELETED>
                        <DELETED>    ``(i) 5 percent if the 
                        illegitimacy ratio of the State for the fiscal 
                        year is at least 1 percentage point lower than 
                        the illegitimacy ratio of the State for fiscal 
                        year 1995; or</DELETED>
                        <DELETED>    ``(ii) 10 percent if the 
                        illegitimacy ratio of the State for the fiscal 
                        year is at least 2 percentage points lower than 
                        the illegitimacy ratio of the State for fiscal 
                        year 1995.</DELETED>
        <DELETED>    ``(2) Supplemental grants to adjust for population 
        increases.--In addition to any grant under paragraph (1), each 
        eligible State shall be entitled to receive from the Secretary 
        for each of fiscal years 1997, 1998, 1999, and 2000, a grant in 
        an amount equal to the State proportion of 
        $100,000,000.</DELETED>
<DELETED>    ``(b) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(1) State family assistance grant.--</DELETED>
                <DELETED>    ``(A) In general.--The term `State family 
                assistance grant' means, with respect to a fiscal year, 
                the provisional State family assistance grant adjusted 
                in accordance with subparagraph (C).</DELETED>
                <DELETED>    ``(B) Provisional state family assistance 
                grant.--The term `provisional State family assistance 
                grant' means--</DELETED>
                        <DELETED>    ``(i) the greater of--</DELETED>
                                <DELETED>    ``(I) 
                                </DELETED>\<DELETED>1/3</DELETED>\ 
                                <DELETED>of the total amount of 
                                obligations to the State under section 
                                403 of this title (as in effect before 
                                October 1, 1995) for fiscal years 1992, 
                                1993, and 1994 (other than with respect 
                                to amounts expended for child care 
                                under subsection (g) or (i) of section 
                                402 of this title (as so in effect)); 
                                or</DELETED>
                                <DELETED>    ``(II) the total amount of 
                                obligations to the State under such 
                                section 403 for fiscal year 1994 (other 
                                than with respect to amounts expended 
                                for child care under subsection (g) or 
                                (i) of section 402 of this title (as so 
                                in effect)); multiplied by</DELETED>
                        <DELETED>    ``(ii)(I) the total amount of 
                        outlays to all of the States under such section 
                        403 for fiscal year 1994 (other than with 
                        respect to amounts expended for child care 
                        under subsection (g) or (i) of section 402 of 
                        this title (as so in effect)); divided 
                        by</DELETED>
                        <DELETED>    ``(II) the total amount of 
                        obligations to all of the States under such 
                        section 403 for fiscal year 1994 (other than 
                        with respect to amounts expended for child care 
                        under subsection (g) or (i) of section 402 of 
                        this title (as so in effect)).</DELETED>
                <DELETED>    ``(C) Proportional adjustment.--The 
                Secretary shall determine the percentage (if any) by 
                which each provisional State family assistance grant 
                must be reduced or increased to ensure that the sum of 
                such grants equals $15,390,296,000, and shall adjust 
                each provisional State family assistance grant by the 
                percentage so determined.</DELETED>
        <DELETED>    ``(2) Illegitimacy ratio.--The term `illegitimacy 
        ratio' means, with respect to a State and a fiscal year--
        </DELETED>
                <DELETED>    ``(A) the sum of--</DELETED>
                        <DELETED>    ``(i) the number of out-of-wedlock 
                        births that occurred in the State during the 
                        most recent fiscal year for which such 
                        information is available; and</DELETED>
                        <DELETED>    ``(ii) the amount (if any) by 
                        which the number of abortions performed in the 
                        State during the most recent fiscal year for 
                        which such information is available exceeds the 
                        number of abortions performed in the State 
                        during the fiscal year that immediately 
                        precedes such most recent fiscal year; divided 
                        by</DELETED>
                <DELETED>    ``(B) the number of births that occurred 
                in the State during the most recent fiscal year for 
                which such information is available.</DELETED>
        <DELETED>    ``(3) State proportion.--The term `State 
        proportion' means, with respect to a fiscal year, the amount 
        that bears the same ratio to the amount specified in subsection 
        (a)(2) as the increase (if any) in the population of the State 
        for the most recent fiscal year for which such information is 
        available over the population of the State for the fiscal year 
        that immediately precedes such most recent fiscal year bears to 
        the total increase in the population of all States which have 
        such an increase in population, as determined by the Secretary 
        using data from the Bureau of the Census.</DELETED>
        <DELETED>    ``(4) Fiscal year.--The term `fiscal year' means 
        any 12-month period ending on September 30 of a calendar 
        year.</DELETED>
        <DELETED>    ``(5) State.--The term `State' includes the 
        several States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, and 
        American Samoa.</DELETED>
<DELETED>    ``(c) Use of Grant.--</DELETED>
        <DELETED>    ``(1) In general.--A State to which a grant is 
        made under this section may use the grant in any manner that is 
        reasonably calculated to accomplish the purpose of this part, 
        subject to this part, including to provide noncash assistance 
        to mothers who have not attained 18 years of age and their 
        children and to provide low income households with assistance 
        in meeting home heating and cooling costs. Notwithstanding any 
        other provision of this Act, a State to which a grant is made 
        under section 403 may not use any part of the grant to provide 
        medical services.</DELETED>
        <DELETED>    ``(2) Authority to treat interstate immigrants 
        under rules of former state.--A State to which a grant is made 
        under this section may apply to a family the rules of the 
        program operated under this part of another State if the family 
        has moved to the State from the other State and has resided in 
        the State for less than 12 months.</DELETED>
        <DELETED>    ``(3) Authority to use portion of grant for other 
        purposes.--</DELETED>
                <DELETED>    ``(A) In general.--A State may use not 
                more than 30 percent of the amount of the grant made to 
                the State under this section for a fiscal year to carry 
                out a State program pursuant to any or all of the 
                following provisions of law:</DELETED>
                        <DELETED>    ``(i) Part B of this 
                        title.</DELETED>
                        <DELETED>    ``(ii) Title XX of this 
                        Act.</DELETED>
                        <DELETED>    ``(iii) Any provision of law, 
                        enacted into law during the 104th Congress, 
                        under which grants are made to States for food 
                        and nutrition.</DELETED>
                        <DELETED>    ``(iv) The Child Care and 
                        Development Block Grant Act of 1990.</DELETED>
                <DELETED>    ``(B) Applicable rules.--Any amount paid 
                to the State under this part that is used to carry out 
                a State program pursuant to a provision of law 
                specified in subparagraph (A) shall not be subject to 
                the requirements of this part, but shall be subject to 
                the requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.</DELETED>
        <DELETED>    ``(4) Authority to reserve certain amounts for 
        emergency benefits.--A State may reserve amounts paid to the 
        State under this section for any fiscal year for the purpose of 
        providing emergency assistance under the State program operated 
        under this part.</DELETED>
        <DELETED>    ``(5) Implementation of electronic benefit 
        transfer system.--A State to which a grant is made under this 
        section is encouraged to implement an electronic benefit 
        transfer system for providing assistance under the State 
        program funded under this part, and may use the grant for such 
        purpose.</DELETED>
<DELETED>    ``(d) Timing of Payments.--The Secretary shall pay each 
grant payable to a State under this section in quarterly 
installments.</DELETED>
<DELETED>    ``(e) Penalties.--</DELETED>
        <DELETED>    ``(1) For use of grant in violation of this 
        part.--</DELETED>
                <DELETED>    ``(A) In general.--If an audit conducted 
                pursuant to chapter 75 of title 31, United States Code, 
                finds that an amount paid to a State under this section 
                for a fiscal year has been used in violation of this 
                part, then the Secretary shall reduce the amount of the 
                grant otherwise payable to the State under this section 
                for the immediately succeeding fiscal year by the 
                amount so used.</DELETED>
                <DELETED>    ``(B) Limitation on amount of penalty.--In 
                carrying out subparagraph (A), the Secretary shall not 
                reduce any quarterly payment by more than 25 
                percent.</DELETED>
                <DELETED>    ``(C) Carryforward of unrecovered 
                penalties.--To the extent that subparagraph (B) 
                prevents the Secretary from recovering during a fiscal 
                year the full amount of a penalty imposed on a State 
                under subparagraph (A) for a prior fiscal year, the 
                Secretary shall apply subparagraph (A) to the grant 
                otherwise payable to the State under this section for 
                the immediately succeeding fiscal year.</DELETED>
        <DELETED>    ``(2) For failure to submit required report.--
        </DELETED>
                <DELETED>    ``(A) In general.--If the Secretary 
                determines that a State has not, within 6 months after 
                the end of a fiscal year, submitted the report required 
                by section 406 for the fiscal year, the Secretary shall 
                reduce by 3 percent the amount of the grant that would 
                (in the absence of this subsection, subsection 
                (a)(1)(B) of this section, and section 404(c)(2)) be 
                payable to the State under subsection (a)(1)(A) for the 
                immediately succeeding fiscal year.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) For failure to participate in the income and 
        eligibility verification system.--If the Secretary determines 
        that a State program funded under this part is not 
        participating during a fiscal year in the income and 
        eligibility verification system required by section 1137, the 
        Secretary shall reduce by 1 percent the amount of the grant 
        that would (in the absence of this subsection, subsection 
        (a)(1)(B) of this section, and section 404(c)(2)) be payable to 
        the State under subsection (a)(1)(A) for the fiscal 
        year.</DELETED>
<DELETED>    ``(f) Limitation on Federal Authority.--The Secretary may 
not regulate the conduct of States under this part or enforce any 
provision of this part, except to the extent expressly provided in this 
part.</DELETED>
<DELETED>    ``(g) Federal Rainy Day Fund.--</DELETED>
        <DELETED>    ``(1) Establishment.--There is hereby established 
        in the Treasury of the United States a revolving loan fund 
        which shall be known as the `Federal Rainy Day Fund'.</DELETED>
        <DELETED>    ``(2) Deposits into fund.--</DELETED>
                <DELETED>    ``(A) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, $1,000,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the Federal Rainy 
                Day Fund.</DELETED>
                <DELETED>    ``(B) Loan repayments.--The Secretary 
                shall deposit into the fund any principal or interest 
                payment received with respect to a loan made under this 
                subsection.</DELETED>
        <DELETED>    ``(3) Availability.--Amounts in the fund are 
        authorized to remain available without fiscal year limitation 
        for the purpose of making loans and receiving payments of 
        principal and interest on such loans, in accordance with this 
        subsection.</DELETED>
        <DELETED>    ``(4) Use of fund.--</DELETED>
                <DELETED>    ``(A) Loans to qualified states.--
                </DELETED>
                        <DELETED>    ``(i) In general.--The Secretary 
                        shall make loans from the fund to any qualified 
                        State for a period to maturity of not more than 
                        3 years.</DELETED>
                        <DELETED>    ``(ii) Rate of interest.--The 
                        Secretary shall charge and collect interest on 
                        any loan made under clause (i) at a rate equal 
                        to the current average market yield on 
                        outstanding marketable obligations of the 
                        United States with remaining periods to 
                        maturity comparable to the period to maturity 
                        of the loan.</DELETED>
                        <DELETED>    ``(iii) Maximum loan.--The amount 
                        of any loan made to a State under clause (i) 
                        during a fiscal year shall not exceed the 
                        lesser of--</DELETED>
                                <DELETED>    ``(I) 50 percent of the 
                                amount of the grant payable to the 
                                State under this section for the fiscal 
                                year; or</DELETED>
                                <DELETED>    ``(II) 
                                $100,000,000.</DELETED>
                <DELETED>    ``(B) Qualified state defined.--A State is 
                a qualified State for purposes of subparagraph (A) if 
                the unemployment rate of the State (as determined by 
                the Bureau of Labor Statistics) for the most recent 3-
                month period for which such information is available 
                is--</DELETED>
                        <DELETED>    ``(i) more than 6.5 percent; 
                        and</DELETED>
                        <DELETED>    ``(ii) at least 110 percent of 
                        such rate for the corresponding 3-month period 
                        in either of the 2 immediately preceding 
                        calendar years.</DELETED>

<DELETED>``SEC. 404. MANDATORY WORK REQUIREMENTS.</DELETED>

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

                <DELETED>    </DELETED>
                                                            The minimum
                <DELETED>    </DELETED>
                                                          participation
                <DELETED>    ``If the fiscal year 
                    is:</DELETED>
                                                               rate is:
                        <DELETED>  1996..............              10  
                        <DELETED>  1997..............              15  
                        <DELETED>  1998..............              20  
                        <DELETED>  1999..............              25  
                        <DELETED>  2000..............              27  
                        <DELETED>  2001..............              29  
                        <DELETED>  2002..............              40  
                        <DELETED>  2003 or thereafter             50.  
                <DELETED>    ``(B) Pro rata reduction of participation 
                rate due to caseload reductions not required by federal 
                law.--The minimum participation rate otherwise required 
                by subparagraph (A) for a fiscal year shall be reduced 
                by a percentage equal to the percentage (if any) by 
                which the number of families receiving assistance 
                during the fiscal year under the State program funded 
                under this part is less than the number of families 
                that received aid under the State plan approved under 
                part A of this title (as in effect before October 1, 
                1995) during the fiscal year immediately preceding such 
                effective date, except to the extent that the Secretary 
                determines that the reduction in the number of families 
                receiving such assistance is required by Federal 
                law.</DELETED>
                <DELETED>    ``(C) Participation rate.--For purposes of 
                this paragraph:</DELETED>
                        <DELETED>    ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal 
                        year.</DELETED>
                        <DELETED>    ``(ii) Monthly participation 
                        rates.--The participation rate of a State for a 
                        month is--</DELETED>
                                <DELETED>    ``(I) the number of 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part which include an individual 
                                who is engaged in work activities for 
                                the month; divided by</DELETED>
                                <DELETED>    ``(II) the total number of 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part during the month which 
                                include an individual who has attained 
                                18 years of age.</DELETED>
                        <DELETED>    ``(iii) Engaged.--A recipient is 
                        engaged in work activities for a month in a 
                        fiscal year if the recipient is making progress 
                        in such activities for at least the minimum 
                        average number of hours per week specified in 
                        the following table during the month, not fewer 
                        than 20 hours per week of which are 
                        attributable to an activity described in 
                        subparagraph (A), (B), (C), or (D) of 
                        subsection (b)(1) (or, in the case of the first 
                        4 weeks for which the recipient is required 
                        under this section to participate in work 
                        activities, an activity described in subsection 
                        (b)(1)(E)):</DELETED>

                <DELETED>         </DELETED>
                                                            The minimum
                <DELETED>         ``If the month 
                    is</DELETED>
                                                      average number of
                <DELETED>           in fiscal 
                    year:</DELETED>
                                                     hours per week is:
                        <DELETED>       1996.........              20  
                        <DELETED>       1997.........              20  
                        <DELETED>       1998.........              20  
                        <DELETED>       1999.........              25  
                        <DELETED>       2000.........              30  
                        <DELETED>       2001.........              30  
                        <DELETED>       2002.........              35  
                        <DELETED>       2003 or                   35.  
                            thereafter.
        <DELETED>    ``(2) Requirement applicable to 2-parent 
        families.--</DELETED>
                <DELETED>    ``(A) In general.--A State to which a 
                grant is made under section 403 for a fiscal year shall 
                achieve the minimum participation rate specified in the 
                following table for the fiscal year with respect to 2-
                parent families receiving assistance under the State 
                program funded under this part:</DELETED>
                <DELETED>    </DELETED>
                                                            The minimum
                <DELETED>    </DELETED>
                                                          participation
                <DELETED>    ``If the fiscal year 
                    is:</DELETED>
                                                               rate is:
                        <DELETED>  1996..............              50  
                        <DELETED>  1997..............              50  
                        <DELETED>  1998 or thereafter             90.  
                <DELETED>    ``(B) Participation rate.--For purposes of 
                this paragraph:</DELETED>
                        <DELETED>    ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal 
                        year.</DELETED>
                        <DELETED>    ``(ii) Monthly participation 
                        rates.--The participation rate of a State for a 
                        month is--</DELETED>
                                <DELETED>    ``(I) the number of 2-
                                parent families receiving cash 
                                assistance under the State program 
                                funded under this part which include at 
                                least 1 adult who is engaged in work 
                                activities for the month; divided 
                                by</DELETED>
                                <DELETED>    ``(II) the total number of 
                                2-parent families receiving cash 
                                assistance under the State program 
                                funded under this part during the 
                                month.</DELETED>
                        <DELETED>    ``(iii) Engaged.--An adult is 
                        engaged in work activities for a month in a 
                        fiscal year if the adult is making progress in 
                        such activities for at least 35 hours per week 
                        during the month, not fewer than 30 hours per 
                        week of which are attributable to an activity 
                        described in subparagraph (A), (B), (C), or (D) 
                        of subsection (b)(1) (or, in the case of the 
                        first 4 weeks for which the recipient is 
                        required under this section to participate in 
                        work activities, an activity described in 
                        subsection (b)(1)(E)).</DELETED>
<DELETED>    ``(b) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(1) Work activities.--The term `work activities' 
        means--</DELETED>
                <DELETED>    ``(A) unsubsidized employment;</DELETED>
                <DELETED>    ``(B) subsidized private sector 
                employment;</DELETED>
                <DELETED>    ``(C) subsidized public sector employment 
                or work experience (including work associated with the 
                refurbishing of publicly assisted housing) only if 
                sufficient private sector employment is not 
                available;</DELETED>
                <DELETED>    ``(D) on-the-job training;</DELETED>
                <DELETED>    ``(E) job search and job readiness 
                assistance;</DELETED>
                <DELETED>    ``(F) education directly related to 
                employment, in the case of a recipient who has not 
                attained 20 years of age, and has not received a high 
                school diploma or a certificate of high school 
                equivalency;</DELETED>
                <DELETED>    ``(G) job skills training directly related 
                to employment; or</DELETED>
                <DELETED>    ``(H) at the option of the State, 
                satisfactory attendance at secondary school, in the 
                case of a recipient who--</DELETED>
                        <DELETED>    ``(i) has not completed secondary 
                        school; and</DELETED>
                        <DELETED>    ``(ii) is a dependent child, or a 
                        head of household who has not attained 20 years 
                        of age.</DELETED>
        <DELETED>    ``(2) Fiscal year.--The term `fiscal year' means 
        any 12-month period ending on September 30 of a calendar 
        year.</DELETED>
<DELETED>    ``(c) Penalties.--</DELETED>
        <DELETED>    ``(1) Against individuals.--</DELETED>
                <DELETED>    ``(A) Applicable to all families.--A State 
                to which a grant is made under section 403 shall ensure 
                that the amount of cash assistance paid under the State 
                program funded under this part to a recipient of 
                assistance under the program who refuses to engage 
                (within the meaning of subsection (a)(1)(C)(iii)) in 
                work activities required under this section 
                shall</DELETED>
                <DELETED>be less than the amount of cash assistance 
                that would otherwise be paid to the recipient under the 
                program, subject to such good cause and other 
                exceptions as the State may establish.</DELETED>
                <DELETED>    ``(B) Applicable to 2-parent families.--A 
                State to which a grant is made under section 403 shall 
                reduce the amount of cash assistance otherwise payable 
                to a 2-parent family for a month under the State 
                program funded under this part with respect to an adult 
                in the family who is not engaged (within the meaning of 
                subsection (a)(2)(B)(iii)) in work activities for at 
                least 35 hours per week during the month, pro rata (or 
                more, at the option of the State) with respect to any 
                period during the month for which the adult is not so 
                engaged.</DELETED>
                <DELETED>    ``(C) Limitation on federal authority.--No 
                officer or employee of the Federal Government may 
                regulate the conduct of States under this paragraph or 
                enforce this paragraph against any State.</DELETED>
        <DELETED>    ``(2) Against states.--</DELETED>
                <DELETED>    ``(A) In general.--If the Secretary 
                determines that a State to which a grant is made under 
                section 403 for a fiscal year has failed to comply with 
                subsection (a) for the fiscal year, the Secretary shall 
                reduce by not more than 5 percent the amount of the 
                grant that would (in the absence of this paragraph and 
                subsections (a)(1)(B) and (e) of section 403) be 
                payable to the State under section 403(a)(1)(A) for the 
                immediately succeeding fiscal year.</DELETED>
                <DELETED>    ``(B) Penalty based on severity of 
                failure.--The Secretary shall impose reductions under 
                subparagraph (A) based on the degree of 
                noncompliance.</DELETED>
<DELETED>    ``(d) Rule of Interpretation.--This section shall not be 
construed to prohibit a State from offering recipients of assistance 
under the State program funded under this part an opportunity to 
participate in an education or training program, consistent with the 
requirements of this section.</DELETED>
<DELETED>    ``(e) Research.--The Secretary shall conduct research on 
the costs and benefits of State activities under this 
section.</DELETED>
<DELETED>    ``(f) Evaluation of Innovative Approaches to Employing 
Recipients of Assistance.--The Secretary shall evaluate innovative 
approaches to employing recipients of assistance under State programs 
funded under this part.</DELETED>
<DELETED>    ``(g) Annual Ranking of States and Review of Most and 
Least Successful Work Programs.--</DELETED>
        <DELETED>    ``(1) Annual ranking of states.--The Secretary 
        shall rank the States to which grants are paid under section 
        403 in the order of their success in moving recipients of 
        assistance under the State program funded under this part into 
        long-term private sector jobs.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(h) Sense of the Congress.--In complying with this 
section, each State that operates a program funded under this part is 
encouraged to assign the highest priority to requiring families that 
include older preschool or school-age children to be engaged in work 
activities.</DELETED>
<DELETED>    ``(i) Sense of the Congress That States Should Impose 
Certain Requirements on Noncustodial, Nonsupporting Minor Parents.--It 
is the sense of the Congress that the States should require 
noncustodial, nonsupporting parents who have not attained 18 years of 
age to fulfill community work obligations and attend appropriate 
parenting or money management classes after school.</DELETED>

<DELETED>``SEC. 405. PROHIBITIONS.</DELETED>

<DELETED>    ``(a) In General.--</DELETED>
        <DELETED>    ``(1) No assistance for families without a minor 
        child.--A State to which a grant is made under section 403 may 
        not use any part of the grant to provide assistance to a 
        family, unless the family includes a minor child.</DELETED>
        <DELETED>    ``(2) Certain payments not to be disregarded in 
        determining the amount of assistance to be provided to a 
        family.--</DELETED>
                <DELETED>    ``(A) Income security payments.--If a 
                State to which a grant is made under section 403 uses 
                any part of the grant to provide assistance for any 
                individual who is receiving a payment under a State 
                plan for old-age assistance approved under section 2, a 
                State program funded under part B that provides cash 
                payments for foster care, or the supplemental security 
                income program under title XVI (other than service 
                benefits provided through the use of a grant made under 
                part C of such title), then the State may not disregard 
                the payment in determining the amount of assistance to 
                be provided to the family of which the individual is a 
                member under the State program funded under this 
                part.</DELETED>
                <DELETED>    ``(B) Certain support payments.--A State 
                to which a grant is made under section 403 may not 
                disregard an amount distributed to a family under 
                section 457(a)(1)(A) in determining the income of the 
                family for purposes of eligibility for assistance under 
                the State program funded under this part.</DELETED>
        <DELETED>    ``(3) No assistance for certain aliens.--
        Notwithstanding section 403(c)(1), a State to which a grant is 
        made under section 403 may not use any part of the grant to 
        provide assistance for an individual who is not a citizen or 
        national of the United States, except consistent with title IV 
        of the Personal Responsibility Act of 1995.</DELETED>
        <DELETED>    ``(4) No assistance for out-of-wedlock births to 
        minors.--</DELETED>
                <DELETED>    ``(A) General rule.--A State to which a 
                grant is made under section 403 may not use any part of 
                the grant to provide cash benefits for a child born 
                out-of-wedlock to an individual who has not attained 18 
                years of age, or for the individual, until the 
                individual attains such age.</DELETED>
                <DELETED>    ``(B) Exception for rape or incest.--
                Subparagraph (A) shall not apply with respect to a 
                child who is born as a result of rape or 
                incest.</DELETED>
                <DELETED>    ``(C) State option.--Nothing in 
                subparagraph (A) shall be construed to prohibit a State 
                from using funds provided by section 403 from providing 
                aid in the form of vouchers that may be used only to 
                pay for particular goods and services specified by the 
                State as suitable for the care of the child such as 
                diapers, clothing, and school supplies.</DELETED>
        <DELETED>    ``(5) No additional cash assistance for children 
        born to families receiving assistance.--</DELETED>
                <DELETED>    ``(A) General rule.--A State to which a 
                grant is made under section 403 may not use any part of 
                the grant to provide cash benefits for a minor child 
                who is born to--</DELETED>
                        <DELETED>    ``(i) a recipient of benefits 
                        under the program operated under this part; 
                        or</DELETED>
                        <DELETED>    ``(ii) a person who received such 
                        benefits at any time during the 10-month period 
                        ending with the birth of the child.</DELETED>
                <DELETED>    ``(B) 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.</DELETED>
                <DELETED>    ``(C) 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.</DELETED>
        <DELETED>    ``(6) No assistance for more than 5 years.--
        </DELETED>
                <DELETED>    ``(A) In general.--A State to which a 
                grant is made under section 403 may not use any part of 
                the grant to provide cash benefits for the family of an 
                individual who, after attaining 18 years of age, has 
                received benefits under the program operated under this 
                part for 60 months (whether or not consecutive) after 
                the effective date of this part, except as provided 
                under subparagraph (B).</DELETED>
                <DELETED>    ``(B) Hardship exception.--</DELETED>
                        <DELETED>    ``(i) In general.--The State may 
                        exempt a family from the application of 
                        subparagraph (A) by reason of 
                        hardship.</DELETED>
                        <DELETED>    ``(ii) Limitation.--The number of 
                        families with respect to which an exemption 
                        made by a State under clause (i) is in effect 
                        shall not exceed 10 percent of the number of 
                        families to which the State is providing 
                        assistance under the program operated under 
                        this part.</DELETED>
        <DELETED>    ``(7) No assistance for families not cooperating 
        in paternity establishment or child support.--Notwithstanding 
        section 403(c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance to a family that includes an individual whom the 
        agency responsible for administering the State plan approved 
        under part D determines is not cooperating with the State in 
        establishing the paternity of any child of the individual, or 
        in establishing, modifying, or enforcing a support order with 
        respect to such a child.</DELETED>
        <DELETED>    ``(8) No assistance for families not assigning 
        support rights to the state.--Notwithstanding section 
        403(c)(1), a State to which a grant is made under section 403 
        may not use any part of the grant to provide assistance to a 
        family that includes an individual who has not assigned to the 
        State any rights the individual may have (on behalf of the 
        individual or of any other person for whom the individual has 
        applied for or is receiving such assistance) to support from 
        any other person for any period for which the individual 
        receives such assistance.</DELETED>
        <DELETED>    ``(9) Withholding of portion of assistance for 
        families which include a child whose paternity is not 
        established.--</DELETED>
                <DELETED>    ``(A) In general.--A State to which a 
                grant is made under section 403 may not fail to--
                </DELETED>
                        <DELETED>    ``(i) withhold assistance under 
                        the State program funded under this part from a 
                        family which includes a child whose paternity 
                        is not established, in an amount equal to $50 
                        or 15 percent of the amount of the amount of 
                        the assistance that would (in the absence of 
                        this paragraph) be provided to the family with 
                        respect to the child, whichever the State 
                        elects; or</DELETED>
                        <DELETED>    ``(ii) provide to the family the 
                        total amount of assistance so withheld once the 
                        paternity of the child is established, if the 
                        family is then eligible for such 
                        assistance.</DELETED>
        <DELETED>    ``(B) Exception for rape or incest.--Subparagraph 
        (A) shall not apply with respect to a child who is born as a 
        result of rape or incest.</DELETED>
        <DELETED>    ``(10) Denial of assistance for 10 years to a 
        person found to have fraudulently misrepresented residence in 
        order to obtain benefits in 2 or more states.--An individual 
        shall not be considered an eligible individual for the purposes 
        of this title during the 10-year period that begins with the 
        date the individual is found by a State to have made, or is 
        convicted in Federal or State court of having made a fraudulent 
        statement or representation with respect to the place of 
        residence of the person in order to receive benefits or 
        services simultaneously from 2 or more States under programs 
        that are funded under this part, 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.</DELETED>
        <DELETED>    ``(11) Denial of assistance for fugitive felons 
        and probation and parole violators.--</DELETED>
                <DELETED>    ``(A) In general.--A State to which a 
                grant is made under section 403 may not use any part of 
                the grant to provide assistance to any individual who 
                is--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) violating a condition of 
                        probation or parole imposed under Federal or 
                        State law.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    (i) such recipient--</DELETED>
                                <DELETED>    (I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, under the laws of the 
                                place from which the recipient flees, 
                                for a crime, or an attempt to commit a 
                                crime, which is a felony under the laws 
                                of the place from which the recipient 
                                flees, or which, in the case of the 
                                State of New Jersey, is a high 
                                misdemeanor under the laws of such 
                                State;</DELETED>
                                <DELETED>    (II) is violating a 
                                condition of probation or parole 
                                imposed under Federal or State law; 
                                or</DELETED>
                                <DELETED>    (III) has information that 
                                is necessary for the officer to conduct 
                                the official duties of the officer; 
                                and</DELETED>
                        <DELETED>    (ii) the location or apprehension 
                        of the recipient is within such official 
                        duties.</DELETED>
        <DELETED>    ``(12) Denial of assistance for minor children who 
        are absent from the home for a significant period.--</DELETED>
                <DELETED>    ``(A) In general.--A State to which a 
                grant is made under section 403 may 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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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 may 
                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 under 
                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.</DELETED>
<DELETED>    ``(b) Minor Child Defined.--As used in subsection (a), the 
term `minor child' means an individual--</DELETED>
        <DELETED>    ``(1) who has not attained 18 years of age; 
        or</DELETED>
        <DELETED>    ``(2) who--</DELETED>
                <DELETED>    ``(A) has not attained 19 years of age; 
                and</DELETED>
                <DELETED>    ``(B) is a full-time student in a 
                secondary school (or in the equivalent level of 
                vocational or technical training).</DELETED>

<DELETED>``SEC. 406. DATA COLLECTION AND REPORTING.</DELETED>

<DELETED>    ``(a) In General.--Each State to which a grant is made 
under section 403 for a fiscal year shall, not later than 6 months 
after the end of the fiscal year, transmit to the Secretary the 
following aggregate information on families to which assistance was 
provided during the fiscal year under the State program operated under 
this part or an equivalent State program:</DELETED>
        <DELETED>    ``(1) The number of adults receiving such 
        assistance.</DELETED>
        <DELETED>    ``(2) The number of children receiving such 
        assistance and the average age of the children.</DELETED>
        <DELETED>    ``(3) The employment status of such adults, and 
        the average earnings of employed adults receiving such 
        assistance.</DELETED>
        <DELETED>    ``(4) The number of 1-parent families in which the 
        parent is a widow or widower, is divorced, is separated, or has 
        never married.</DELETED>
        <DELETED>    ``(5) The age, race, and educational attainment of 
        the adults receiving such assistance.</DELETED>
        <DELETED>    ``(6) The average assistance provided to the 
        families under the program.</DELETED>
        <DELETED>    ``(7) Whether, at the time of application for 
        assistance under the program, the families or any member of the 
        families receives benefits under any of the 
        following:</DELETED>
                <DELETED>    ``(A) Any housing program.</DELETED>
                <DELETED>    ``(B) The food stamp program under the 
                Food Stamp Act of 1977.</DELETED>
                <DELETED>    ``(C) The Head Start programs carried out 
                under the Head Start Act.</DELETED>
                <DELETED>    ``(D) Any job training program.</DELETED>
        <DELETED>    ``(8) The number of months, since the most recent 
        application for assistance under the program, for which such 
        assistance has been provided to the families.</DELETED>
        <DELETED>    ``(9) The total number of months for which 
        assistance has been provided to the families under the 
        program.</DELETED>
        <DELETED>    ``(10) Any other data necessary to indicate 
        whether the State is in compliance with the plan most recently 
        submitted by the State pursuant to section 402.</DELETED>
        <DELETED>    ``(11) The components of any program carried out 
        by the State to provide employment and training activities in 
        order to comply with section 404, and the average monthly 
        number of adults in each such component.</DELETED>
        <DELETED>    ``(12) The number of part-time job placements and 
        the number of full-time job placements made through the program 
        referred to in paragraph (11), the number of cases with reduced 
        assistance, and the number of cases closed due to 
        employment.</DELETED>
<DELETED>    ``(b) Authority of States to Use Estimates.--A State may 
comply with the requirement to provide precise numerical information 
described in subsection (a) by submitting an estimate which is obtained 
through the use of scientifically acceptable sampling 
methods.</DELETED>
<DELETED>    ``(c) Report on Use of Federal Funds to Cover 
Administrative Costs and Overhead.--The report required by subsection 
(a) for a fiscal year shall include a statement of the percentage of 
the funds paid to the State under this part for the fiscal year that 
are used to cover administrative costs or overhead.</DELETED>
<DELETED>    ``(d) Report on State Expenditures on Programs for Needy 
Families.--The report required by subsection (a) for a fiscal year 
shall include a statement of the total amount expended by the State 
during the fiscal year on programs for needy families.</DELETED>
<DELETED>    ``(e) Report on Noncustodial Parents Participating in Work 
Activities.--The report required by subsection (a) for a fiscal year 
shall include the number of noncustodial parents in the State who 
participated in work activities (as defined in section 404(b)(1)) 
during the fiscal year.</DELETED>
<DELETED>``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL 
              STUDIES.</DELETED>

<DELETED>    ``(a) Research.--The Secretary may conduct research on the 
effects, costs, and benefits of State programs funded under this 
part.</DELETED>
<DELETED>    ``(b) Development and Evaluation of Innovative Approaches 
to Employing Welfare Recipients.--The Secretary may assist States in 
developing, and shall evaluate, innovative approaches to employing 
recipients of cash assistance under programs funded under this part. In 
performing such evaluations, the Secretary shall, to the maximum extent 
feasible, use random assignment to experimental and control 
groups.</DELETED>
<DELETED>    ``(c) Studies of Welfare Caseloads.--The Secretary may 
conduct studies of the caseloads of States operating programs funded 
under this part.</DELETED>
<DELETED>    ``(d) Dissemination of Information.--The Secretary shall 
develop innovative methods of disseminating information on any 
research, evaluations, and studies conducted under this section, 
including the facilitation of the sharing of information and best 
practices among States and localities through the use of computers and 
other technologies.</DELETED>

<DELETED>``SEC. 408. STUDY BY THE CENSUS BUREAU.</DELETED>

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

<DELETED>SEC. 102. REPORT ON DATA PROCESSING.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) what would be required to establish a system 
        capable of--</DELETED>
                <DELETED>    (A) tracking participants in public 
                programs over time; and</DELETED>
                <DELETED>    (B) checking case records of the States to 
                determine whether individuals are participating in 
                public programs of 2 or more States.</DELETED>
<DELETED>    (b) Preferred Contents.--The report required by subsection 
(a) should include--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) an estimate of the amount of time required to 
        establish such a system and of the cost of establishing such a 
        system.</DELETED>

<DELETED>SEC. 103. TRANSFERS.</DELETED>

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

      <DELETED>``assistant secretary for family support</DELETED>

<DELETED>    ``Sec. 417.''</DELETED>
        <DELETED>and inserting the following:</DELETED>

<DELETED>``SEC. 409. ASSISTANT SECRETARY FOR FAMILY 
              SUPPORT.''.</DELETED>

        <DELETED>    (2) Transfer of provision.--Part A of title IV of 
        such Act, as added by the amendment made by section 101 of this 
        Act, is amended by adding at the end the section amended by 
        paragraph (1) of this subsection.</DELETED>
        <DELETED>    (3) Conforming amendment.--Section 409 of such 
        Act, as added by paragraph (2) of this subsection is amended by 
        striking ``, part D, and part F'' and inserting ``and part 
        D''.</DELETED>

<DELETED>SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY 
              ACT.</DELETED>

<DELETED>    (a) Amendments to Title II.--</DELETED>
        <DELETED>    (1) Section 205(c)(2)(C)(vi) of the Social 
        Security Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesignated 
        by section 321(a)(9)(B) of the Social Security Independence and 
        Program Improvements Act of 1994, is amended--</DELETED>
                <DELETED>    (A) by inserting ``an agency administering 
                a program funded under part A of title IV or'' before 
                ``an agency operating''; and</DELETED>
                <DELETED>    (B) by striking ``A or D of title IV of 
                this Act'' and inserting ``D of such title''.</DELETED>
        <DELETED>    (2) Section 228(d)(1) of such Act (42 U.S.C. 
        428(d)(1)) is amended by inserting ``under a State program 
        funded under'' before ``part A of title IV''.</DELETED>
<DELETED>    (b) Amendments to Part D of Title IV.--</DELETED>
        <DELETED>    (1) Section 451 of such Act (42 U.S.C. 651) is 
        amended by striking ``aid'' and inserting ``assistance under a 
        State program funded''.</DELETED>
        <DELETED>    (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 
        652(a)(10)(C)) is amended--</DELETED>
                <DELETED>    (A) by striking ``aid to families with 
                dependent children'' and inserting ``assistance under a 
                State program funded under part A''; and</DELETED>
                <DELETED>    (B) by striking ``such aid'' and inserting 
                ``such assistance''; and</DELETED>
                <DELETED>    (C) by striking ``under section 
                402(a)(26)'' and inserting ``pursuant to section 
                405(a)(8)''.</DELETED>
        <DELETED>    (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 
        652(a)(10)(F)) is amended--</DELETED>
                <DELETED>    (A) by striking ``aid under a State plan 
                approved'' and inserting ``assistance under a State 
                program funded''; and</DELETED>
                <DELETED>    (B) by striking ``in accordance with the 
                standards referred to in section 402(a)(26)(B)(ii)'' 
                and inserting ``by the State''.</DELETED>
        <DELETED>    (4) Section 452(b) of such Act (42 U.S.C. 652(b)) 
        is amended in the last sentence by striking ``plan approved 
        under part A'' and inserting ``program funded under part 
        A''.</DELETED>
        <DELETED>    (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 
        652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and 
        inserting ``1115(b)''.</DELETED>
        <DELETED>    (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 
        U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking ``aid is 
        being paid under the State's plan approved'' and inserting 
        ``assistance is being provided under the State program funded 
        under''.</DELETED>
        <DELETED>    (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended in the matter following clause (iii) 
        by striking ``aid was being paid under the State's plan 
        approved'' and inserting ``assistance was being provided under 
        the State program funded''.</DELETED>
        <DELETED>    (8) Section 452(g)(2) of such Act (42 U.S.C. 
        652(g)(2)) is amended in the matter following subparagraph 
        (B)--</DELETED>
                <DELETED>    (A) by striking ``who is a dependent child 
                by reason of the death of a parent'' and inserting 
                ``with respect to whom assistance is being provided 
                under the State program funded under part A''; 
                and</DELETED>
                <DELETED>    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found'';</DELETED>
                <DELETED>    (C) by striking ``under section 
                402(a)(26)'' and inserting ``pursuant to section 
                405(a)(8)''; and</DELETED>
                <DELETED>    (D) by striking ``administering the plan 
                under part E determines (as provided in section 
                454(4)(B))'' and inserting ``determines''.</DELETED>
        <DELETED>    (9) Section 452(h) of such Act (42 U.S.C. 652(h)) 
        is amended by striking ``under section 402(a)(26)'' and 
        inserting ``pursuant to section 405(a)(8)''.</DELETED>
        <DELETED>    (10) Section 454(5) of such Act (42 U.S.C. 654(5)) 
        is amended--</DELETED>
                <DELETED>    (A) by striking ``under section 
                402(a)(26)'' and inserting ``pursuant to section 
                405(a)(8)''; and</DELETED>
                <DELETED>    (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;''.</DELETED>
        <DELETED>    (11) Section 454(6)(D) of such Act (42 U.S.C. 
        654(6)(D)) is amended by striking ``aid under a State plan 
        approved'' and inserting ``assistance under a State program 
        funded''.</DELETED>
        <DELETED>    (12) Section 456 of such Act (42 U.S.C. 656) is 
        amended by striking ``under section 402(a)(26)'' each place 
        such term appears and inserting ``pursuant to section 
        405(a)(8)''.</DELETED>
        <DELETED>    (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)) is amended by striking ``402(a)(26)'' and 
        inserting ``405(a)(8)''.</DELETED>
        <DELETED>    (14) Section 466(b)(2) of such Act (42 U.S.C. 
        666(b)(2)) is amended by striking ``aid'' and inserting 
        ``assistance under a State program funded''.</DELETED>
<DELETED>    (c) Repeal of Part F of Title IV.--Part F of title IV of 
such Act (42 U.S.C. 681-687) is hereby repealed.</DELETED>
<DELETED>    (d) Amendment to Title X.--Section 1002(a)(7) of such Act 
(42 U.S.C. 1202(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 402 of 
this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.</DELETED>
<DELETED>    (e) Amendments to Title XI.--</DELETED>
        <DELETED>    (1) Section 1108 of such Act (42 U.S.C. 1308) is 
        amended--</DELETED>
                <DELETED>    (A) by striking subsections (a), (b), (d), 
                and (e); and</DELETED>
                <DELETED>    (B) by striking ``(c)''.</DELETED>
        <DELETED>    (2) Section 1109 of such Act (42 U.S.C. 1309) is 
        amended by striking ``or part A of title IV,''.</DELETED>
        <DELETED>    (3) Section 1115(a) of such Act (42 U.S.C. 
        1315(a)) is amended--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``A or'';</DELETED>
                <DELETED>    (B) in paragraph (1), by striking 
                ``402,''; and</DELETED>
                <DELETED>    (C) in paragraph (2), by striking 
                ``403,''.</DELETED>
        <DELETED>    (4) Section 1116 of such Act (42 U.S.C. 1316) is 
        amended--</DELETED>
                <DELETED>    (A) in each of subsections (a)(1), (b), 
                and (d), by striking ``or part A of title IV,''; 
                and</DELETED>
                <DELETED>    (B) in subsection (a)(3), by striking 
                ``404,''.</DELETED>
        <DELETED>    (5) Section 1118 of such Act (42 U.S.C. 1318) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``403(a),'';</DELETED>
                <DELETED>    (B) by striking ``and part A of title 
                IV,''; and</DELETED>
                <DELETED>    (C) by striking ``, and shall, in the case 
                of American Samoa, mean 75 per centum with respect to 
                part A of title IV''.</DELETED>
        <DELETED>    (6) Section 1119 of such Act (42 U.S.C. 1319) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``or part A of title IV''; 
                and</DELETED>
                <DELETED>    (B) by striking ``403(a),''.</DELETED>
        <DELETED>    (7) Section 1133(a) of such Act (42 U.S.C. 1320b-
        3(a)) is amended by striking ``or part A of title 
        IV,''.</DELETED>
        <DELETED>    (8) Section 1136 of such Act (42 U.S.C. 1320b-6) 
        is hereby repealed.</DELETED>
        <DELETED>    (9) Section 1137 of such Act (42 U.S.C. 1320b-7) 
        is amended--</DELETED>
                <DELETED>    (A) in subsection (b), by striking 
                paragraph (1) and inserting the following:</DELETED>
        <DELETED>    ``(1) any State program funded under part A of 
        title IV of this Act;''; and</DELETED>
                <DELETED>    (B) in subsection (d)(1)(B)--</DELETED>
                        <DELETED>    (i) by striking ``In this 
                        subsection--'' and all that follows through 
                        ``(ii) in'' and inserting ``In this subsection, 
                        in''; and</DELETED>
                        <DELETED>    (ii) by redesignating subclauses 
                        (I), (II), and (III) as clauses (i), (ii), and 
                        (iii); and</DELETED>
                        <DELETED>    (iii) by moving such redesignated 
                        material 2 ems to the left.</DELETED>
<DELETED>    (f) Amendment to Title XIV.--Section 1402(a)(7) of such 
Act (42 U.S.C. 1352(a)(7)) is amended by striking ``aid to families 
with dependent children under the State plan approved under section 402 
of this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.</DELETED>
<DELETED>    (g) Amendment to Title XVI as in Effect With Respect to 
the Territories.--Section 1602(a)(11) of such Act, as in effect without 
regard to the amendment made by section 301 of the Social Security 
Amendments of 1972, (42 U.S.C. 1382 note) is amended by striking ``aid 
under the State plan approved'' and inserting ``assistance under a 
State program funded''.</DELETED>
<DELETED>    (h) Amendment to Title XVI as in Effect With Respect to 
the States.--Section 1611(c)(5)(A) of such Act (42 U.S.C. 
1382(c)(5)(A)) is amended to read as follows: ``(A) a State program 
funded under part A of title IV,''.</DELETED>

<DELETED>SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.</DELETED>

<DELETED>    (a) Subsection (b) of section 508 of the Unemployment 
Compensation Amendments of 1976 (42 U.S.C. 603a) is amended to read as 
follows:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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)),</DELETED>
        <DELETED>    ``(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,</DELETED>
<DELETED>shall be considered to constitute expenses incurred in the 
administration of such State plan.''.</DELETED>
<DELETED>    (b) Paragraph (9) of section 51(d) of the Internal Revenue 
Code of 1986 is amended by striking all that follows ``agency as'' and 
inserting ``being eligible for financial assistance under part A of 
title IV of the Social Security Act and as having continually received 
such financial assistance during the 90-day period which immediately 
precedes the date on which such individual is hired by the 
employer.''</DELETED>
<DELETED>    (c) Section 9121 of the Omnibus Budget Reconciliation Act 
of 1987 (42 U.S.C. 602 note) is hereby repealed.</DELETED>
<DELETED>    (d) Section 9122 of the Omnibus Budget Reconciliation Act 
of 1987 (42 U.S.C. 602 note) is hereby repealed.</DELETED>
<DELETED>    (e) Section 221 of the Housing and Urban-Rural Recovery 
Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of 
certain rental payments for federally assisted housing, is hereby 
repealed.</DELETED>
<DELETED>    (f) Section 159 of the Tax Equity and Fiscal 
Responsibility Act of 1982 (42 U.S.C. 602 note) is hereby 
repealed.</DELETED>
<DELETED>    (g) Section 202(d) of the Social Security Amendments of 
1967 (81 Stat. 882; 42 U.S.C. 602 note) is hereby repealed.</DELETED>
<DELETED>    (h) Section 233 of the Social Security Act Amendments of 
1994 (42 U.S.C. 602 note) is hereby repealed.</DELETED>
<DELETED>    (i) Section 903 of the Stewart B. McKinney Homeless 
Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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''.</DELETED>

<DELETED>SEC. 106. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER 
              MEDICAID PROGRAM.</DELETED>

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

      <DELETED>``continued application of afdc standards</DELETED>

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

<DELETED>SEC. 107. EFFECTIVE DATE.</DELETED>

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

<DELETED>SEC. 201. ESTABLISHMENT OF PROGRAM.</DELETED>

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

    <DELETED>``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF 
                           CHILDREN</DELETED>

<DELETED>``SEC. 421. PURPOSE.</DELETED>

<DELETED>    ``The purpose of this part is to enable eligible States to 
carry out a child protection program to--</DELETED>
        <DELETED>    ``(1) identify and assist families at risk of 
        abusing or neglecting their children;</DELETED>
        <DELETED>    ``(2) operate a system for receiving reports of 
        abuse or neglect of children;</DELETED>
        <DELETED>    ``(3) investigate families reported to abuse or 
        neglect their children;</DELETED>
        <DELETED>    ``(4) provide support, treatment, and family 
        preservation services to families which are, or are at risk of, 
        abusing or neglecting their children;</DELETED>
        <DELETED>    ``(5) support children who must be removed from or 
        who cannot live with their families;</DELETED>
        <DELETED>    ``(6) make timely decisions about permanent living 
        arrangements for children who must be removed from or who 
        cannot live with their families; and</DELETED>
        <DELETED>    ``(7) provide for continuing evaluation and 
        improvement of child protection laws, regulations, and 
        services.</DELETED>

<DELETED>``SEC. 422. ELIGIBLE STATES.</DELETED>

<DELETED>    ``(a) In General.--As used in this part, the term 
`eligible State' means, with respect to a fiscal year, a State that, 
during the 3-year period immediately preceding the fiscal year, has 
submitted to the Secretary a plan that includes the 
following:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) receiving reports of child abuse or 
                neglect;</DELETED>
                <DELETED>    ``(B) investigating such 
                reports;</DELETED>
                <DELETED>    ``(C) protecting children in families in 
                which child abuse or neglect is found to have 
                occurred;</DELETED>
                <DELETED>    ``(D) removing children from dangerous 
                settings;</DELETED>
                <DELETED>    ``(E) protecting children in foster 
                care;</DELETED>
                <DELETED>    ``(F) promoting timely 
                adoptions;</DELETED>
                <DELETED>    ``(G) protecting the rights of families, 
                using adult relatives as the preferred placement for 
                children separated from their parents if such relatives 
                meet all State child protection standards;</DELETED>
                <DELETED>    ``(H) preventing child abuse and neglect; 
                and</DELETED>
                <DELETED>    ``(I) establishing and responding to 
                citizen review panels under section 425.</DELETED>
        <DELETED>    ``(2) Certification of state law requiring the 
        reporting of child abuse and neglect.--A certification that the 
        State has in effect laws that require public officials and 
        other professionals to report actual or suspected instances of 
        child abuse or neglect.</DELETED>
        <DELETED>    ``(3) Certification of state program to 
        investigate child abuse and neglect cases.--A certification 
        that the State has in effect a program to investigate child 
        abuse and neglect cases.</DELETED>
        <DELETED>    ``(4) Certification of state procedures for 
        removal and placement of abused or neglected children.--A 
        certification that the State has in effect procedures for 
        removal from families and placement of abused or neglected 
        children.</DELETED>
        <DELETED>    ``(5) Certification of state procedures for 
        developing and reviewing written plans for permanent placement 
        of removed children.--A certification that the State has in 
        effect procedures for ensuring that a written plan is prepared 
        for children who have been removed from their families, which 
        specifies the goal for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the written plan 
        is reviewed every 6 months, and for ensuring that information 
        about such children is collected regularly and recorded in case 
        records, and a description of such procedures.</DELETED>
        <DELETED>    ``(6) Certification that the state will continue 
        to honor adoption assistance agreements.--A certification that 
        the State will honor any adoption assistance agreement (as 
        defined in section 475(3), as in effect immediately before the 
        effective date of this part) entered into by an agency of the 
        State, that is in effect as of such effective date.</DELETED>
        <DELETED>    ``(7) Certification of state program to provide 
        independent living services.--A certification that the State 
        has in effect a program to provide independent living services 
        to individuals in the child protection program of the State who 
        have attained 16 years of age but have not attained 20 (or, at 
        the option of the State, 22) years of age, and who do not have 
        a family to which to be returned for assistance in making the 
        transition to self-sufficient adulthood.</DELETED>
        <DELETED>    ``(8) Certification of state procedures to respond 
        to reporting of medical neglect of disabled infants.--
        </DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) coordination and 
                        consultation with individuals designated by and 
                        within appropriate health-care 
                        facilities;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) the infant is chronically 
                        and irreversibly comatose;</DELETED>
                        <DELETED>    ``(ii) the provision of such 
                        treatment would--</DELETED>
                                <DELETED>    ``(I) merely prolong 
                                dying;</DELETED>
                                <DELETED>    ``(II) not be effective in 
                                ameliorating or correcting all of the 
                                infant's life-threatening conditions; 
                                or</DELETED>
                                <DELETED>    ``(III) otherwise be 
                                futile in terms of the survival of the 
                                infant; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(9) Identification of child protection goals.--
        The quantitative goals of the State child protection 
        program.</DELETED>
<DELETED>    ``(b) Determinations.--The Secretary shall determine 
whether a plan submitted pursuant to subsection (a) contains the 
material required by subsection (a). The Secretary may not require a 
State to include in such a plan any material not described in 
subsection (a), and may not review the adequacy of State procedures. 
The Secretary may not require a State to alter its child protection law 
regarding determination of the adequacy, type and timing of health care 
(whether medical, non-medical or spiritual).</DELETED>

<DELETED>``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.</DELETED>

<DELETED>    ``(a) Entitlement.--</DELETED>
        <DELETED>    ``(1) In general.--Each eligible State shall be 
        entitled to receive from the Secretary for each fiscal year 
        specified in subsection (b)(1) a grant in an amount equal to 
        the State share of the child protection amount for the fiscal 
        year.</DELETED>
        <DELETED>    ``(2) Additional grant.--</DELETED>
                <DELETED>    ``(A) In general.--In addition to a grant 
                under paragraph (1) of this subsection, the Secretary 
                shall pay to each eligible State for each fiscal year 
                specified in subsection (b)(1) an amount equal to the 
                State share of the amount (if any) appropriated 
                pursuant to subparagraph (B) of this paragraph for the 
                fiscal year.</DELETED>
                <DELETED>    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph (A), 
                there are authorized to be appropriated to the 
                Secretary an amount not to exceed $486,000,000 for each 
                fiscal year specified in subsection (b)(1).</DELETED>
<DELETED>    ``(b) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(1) Child protection amount.--The term `child 
        protection amount' means--</DELETED>
                <DELETED>    ``(A) $3,930,000,000 for fiscal year 
                1996;</DELETED>
                <DELETED>    ``(B) $4,195,000,000 for fiscal year 
                1997;</DELETED>
                <DELETED>    ``(C) $4,507,000,000 for fiscal year 
                1998;</DELETED>
                <DELETED>    ``(D) $4,767,000,000 for fiscal year 1999; 
                and</DELETED>
                <DELETED>    ``(E) $5,071,000,000 for fiscal year 
                2000.</DELETED>
        <DELETED>    ``(2) State share.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Qualified child protection 
                expenses.--The term `qualified child protection 
                expenses' means, with respect to a State the greater 
                of--</DELETED>
                        <DELETED>    ``(i) </DELETED>\<DELETED>1/
                        3</DELETED>\ <DELETED>of the total amount of 
                        obligations to the State under the provisions 
                        of law specified in subparagraph (C) for fiscal 
                        years 1992, 1993, and 1994; or</DELETED>
                        <DELETED>    ``(ii) the total amount of 
                        obligations to the State under such provisions 
                        of law for fiscal year 1994.</DELETED>
                <DELETED>    ``(C) Provisions of law.--The provisions 
                of law specified in this subparagraph are the following 
                (as in effect immediately before the effective date of 
                this part):</DELETED>
                        <DELETED>    ``(i) Section 474(a) (other than 
                        subparagraphs (C) and (D) of paragraph (3)) of 
                        this Act.</DELETED>
                        <DELETED>    ``(ii) Section 304 of the Family 
                        Violence Prevention and Services Act.</DELETED>
                        <DELETED>    ``(iii) Section 107(a) of the 
                        Child Abuse Prevention and Treatment 
                        Act.</DELETED>
                        <DELETED>    ``(iv) Section 201(d) of the Child 
                        Abuse Prevention and Treatment Act.</DELETED>
                        <DELETED>    ``(v) Section 423 of this 
                        Act.</DELETED>
        <DELETED>    ``(3) State.--The term `State' includes the 
        several States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, and 
        American Samoa.</DELETED>
<DELETED>    ``(c) Use of Grant.--</DELETED>
        <DELETED>    ``(1) In general.--A State to which a grant is 
        made under this section may use the grant in any manner that 
        the State deems appropriate to accomplish the purpose of this 
        part, including setting up abuse and neglect reporting systems, 
        abuse and neglect prevention, family preservation, foster care, 
        adoption, program administration, and training.</DELETED>
        <DELETED>    ``(2) Authority to use portion of grant for other 
        purposes.--</DELETED>
                <DELETED>    ``(A) In general.--A State may use not 
                more than 30 percent of the amount of the grant made to 
                the State under this section for fiscal year 1998 or a 
                succeeding fiscal year to carry out a State program 
                pursuant to any or all of the following provisions of 
                law:</DELETED>
                        <DELETED>    ``(i) Part A of this 
                        title.</DELETED>
                        <DELETED>    ``(ii) Title XX of this 
                        Act.</DELETED>
                        <DELETED>    ``(iii) The Child Care and 
                        Development Block Grant Act of 1990.</DELETED>
                        <DELETED>    ``(iv) Any provision of law, 
                        enacted into law during the 104th Congress, 
                        under which grants are made to States for food 
                        and nutrition or employment and 
                        training.</DELETED>
                <DELETED>    ``(B) Applicable rules.--Any amount paid 
                to the State under this part that is used to carry out 
                a State program pursuant to a provision of law 
                specified in subparagraph (A) shall not be subject to 
                the requirements of this part, but shall be subject to 
                the requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.</DELETED>
        <DELETED>    ``(3) Timing of expenditures.--A State to which a 
        grant is made under this section for a fiscal year shall expend 
        the total amount of the grant not later than the end of the 
        immediately succeeding fiscal year.</DELETED>
        <DELETED>    ``(4) Rule of interpretation.--This part shall not 
        be interpreted to prohibit short- and long-term foster care 
        facilities operated for profit from receiving funds provided 
        under this part.</DELETED>
<DELETED>    ``(d) Timing of Payments.--The Secretary shall pay each 
eligible State the amount of the grant payable to the State under this 
section in quarterly installments.</DELETED>
<DELETED>    ``(e) Penalties.--</DELETED>
        <DELETED>    ``(1) For use of grant in violation of this 
        part.--</DELETED>
                <DELETED>    ``(A) In general.--If an audit conducted 
                pursuant to chapter 75 of title 31, United States Code, 
                finds that an amount paid to a State under this section 
                for a fiscal year has been used in violation of this 
                part, then the Secretary shall reduce the amount of the 
                grant that would (in the absence of this subsection) be 
                payable to the State under this section for the 
                immediately succeeding fiscal year by the amount so 
                used.</DELETED>
                <DELETED>    ``(B) Limitation.--In carrying out 
                subparagraph (A), the Secretary shall not reduce any 
                quarterly payment by more than 25 percent.</DELETED>
                <DELETED>    ``(C) Carryforward of unrecovered 
                penalty.--To the extent that subparagraph (B) prevents 
                the Secretary from recovering during a fiscal year the 
                full amount of a penalty imposed on a State under 
                subparagraph (A) for a prior fiscal year, the Secretary 
                shall apply subparagraph (A) to the grant otherwise 
                payable to the State under this section for the 
                immediately succeeding fiscal year.</DELETED>
        <DELETED>    ``(2) For failure to maintain effort.--If an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds that the amount expended by a State (other than 
        from amounts provided by the Federal Government) during fiscal 
        year 1996 or 1997 to carry out the State program funded under 
        this part is less than the total amount expended by the State 
        (other than from amounts provided by the Federal Government) 
        during fiscal year 1995 under parts B and E of this title, then 
        the Secretary shall reduce the amount of the grant that would 
        (in the absence of this subsection) be payable to the State 
        under this section for the immediately succeeding fiscal year 
        by the amount of the difference.</DELETED>
        <DELETED>    ``(3) For failure to submit required report.--
        </DELETED>
                <DELETED>    ``(A) In general.--The Secretary shall 
                reduce by 3 percent the amount of the grant that would 
                (in the absence of this subsection) be payable to a 
                State under this section for a fiscal year if the 
                Secretary determines that the State has not submitted 
                the report required by section 427(b) for the 
                immediately preceding fiscal year, within 6 months 
                after the end of the immediately preceding fiscal 
                year.</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Limitation on Federal Authority.--Except as 
expressly provided in this part, the Secretary may not regulate the 
conduct of States under this part or enforce any provision of this 
part.</DELETED>
<DELETED>``SEC. 424. CHILD PROTECTION STANDARDS.</DELETED>

<DELETED>    ``(a) In General.--Each State to which a grant is made 
under section 423 shall operate a child protection program in accorance 
with the following standards in order to assure the protection of 
children:</DELETED>
        <DELETED>    ``(1) The primary standard by which a State child 
        welfare system shall be judged is the protection of 
        children.</DELETED>
        <DELETED>    ``(2) Each State shall investigate reports of 
        abuse and neglect promptly.</DELETED>
        <DELETED>    ``(3) Children removed from their homes shall have 
        a permanency plan and a dispositional hearing by a court or a 
        court-appointed body within 3 months after a fact-finding 
        hearing.</DELETED>
        <DELETED>    ``(4) All child protection cases in which the 
        child is placed outside the home shall be reviewed every 6 
        months unless the child is in a long-term placement.</DELETED>
<DELETED>    ``(b) Placement of Children With Relatives.--A State to 
which a grant is made under this part may consider--</DELETED>
        <DELETED>    ``(1) establishing a new type of foster care 
        placement, which could be considered a permanent placement, for 
        children who are separated from their parents (in this 
        subsection referred to as `kinship care') under which--
        </DELETED>
                <DELETED>    ``(A) adult relatives of such children 
                would be the preferred placement option if such 
                relatives meet all relevant child protection standards 
                established by the State;</DELETED>
                <DELETED>    ``(B) the State would make a needs-based 
                payment and provide supportive services, as 
                appropriate, with respect to children placed in a 
                kinship care arrangement; and</DELETED>
        <DELETED>    ``(2) in placing children for adoption, giving 
        preference to adult relatives who meet applicable adoption 
        standards (including those acting as foster parents of such 
        children).</DELETED>

<DELETED>``SEC. 425. CITIZEN REVIEW PANELS.</DELETED>

<DELETED>    ``(a) Establishment.--Each State to which a grant is made 
under section 423 shall establish at least 3 citizen review 
panels.</DELETED>
<DELETED>    ``(b) Composition.--Each panel established under 
subsection (a) shall be broadly representative of the community from 
which drawn.</DELETED>
<DELETED>    ``(c) Frequency of Meetings.--Each panel established under 
subsection (a) shall meet not less frequently than quarterly.</DELETED>
<DELETED>    ``(d) Duties.--</DELETED>
        <DELETED>    ``(1) In general.--Each panel established under 
        subsection (a) shall, by examining specific cases, determine 
        the extent to which the State and local agencies responsible 
        for carrying out activities under this part are doing so in 
        accordance with the State plan, with the child protection 
        standards set forth in section 424, and with any other criteria 
        that the panel considers important to ensure the protection of 
        children.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Reports.--Each panel established under subsection 
(a) shall make a public report of its activities after each 
meeting.</DELETED>

<DELETED>``SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING AND RUNAWAY 
              CHILDREN.</DELETED>

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

<DELETED>``SEC. 427. DATA COLLECTION AND REPORTING.</DELETED>

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

<DELETED>``SEC. 428. RESEARCH AND TRAINING.</DELETED>

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

<DELETED>``SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD 
              WELFARE.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Requirements.--The study required by subsection (a) 
shall--</DELETED>
        <DELETED>    ``(1) have a longitudinal component; and</DELETED>
        <DELETED>    ``(2) yield data reliable at the State level for 
        as many States as the Secretary determines is 
        feasible.</DELETED>
<DELETED>    ``(c) Preferred Contents.--In conducting the study 
required by subsection (a), the Secretary should--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) carefully consider selecting the sample from 
        cases of confirmed abuse or neglect; and</DELETED>
        <DELETED>    ``(3) follow each case for several years while 
        obtaining information on, among other things--</DELETED>
                <DELETED>    ``(A) the type of abuse or neglect 
                involved;</DELETED>
                <DELETED>    ``(B) the frequency of contact with State 
                or local agencies;</DELETED>
                <DELETED>    ``(C) whether the child involved has been 
                separated from the family, and, if so, under what 
                circumstances;</DELETED>
                <DELETED>    ``(D) the number, type, and 
                characteristics of out-of-home placements of the child; 
                and</DELETED>
                <DELETED>    ``(E) the average duration of each 
                placement.</DELETED>
<DELETED>    ``(d) Reports.--</DELETED>
        <DELETED>    ``(1) In general.--From time to time, the 
        Secretary shall prepare reports summarizing the results of the 
        study required by subsection (a), and should include in such 
        reports a comparison of the results of the study with the 
        information reported by States under section 427.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Authority to charge fee.--The Secretary may 
        charge and collect a fee for the furnishing of reports under 
        paragraph (2).</DELETED>
<DELETED>    ``(e) Funding.--Out of any money in the Treasury of the 
United States not otherwise appropriated, the Secretary of the Treasury 
shall pay to the Secretary of Health and Human Services $6,000,000 for 
each of fiscal years 1996 through 2000 to carry out this 
section.</DELETED>

<DELETED>``SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC 
              ADOPTION.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Multiethnic Placements.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Penalties.--</DELETED>
                <DELETED>    ``(A) State violators.--A State that 
                violates paragraph (1) during a period shall remit to 
                the Secretary all funds that were paid to the State 
                under this part during the period.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Private cause of action.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Statute of limitations.--An action 
                under this paragraph may not be brought more than 2 
                years after the date the alleged violation 
                occurred.''.</DELETED>

<DELETED>SEC. 202. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Amendments to Part D of Title IV of the Social 
Security Act.--</DELETED>
        <DELETED>    (1) Section 452(a)(10)(C) of the Social Security 
        Act (42 U.S.C. 652(a)(10)(C)), as amended by section 
        104(b)(2)(C) of this Act, is amended--</DELETED>
                <DELETED>    (A) by striking ``(or foster care 
                maintenance payments under part E)'' and inserting ``or 
                cash payments under a State program funded under part 
                B''; and</DELETED>
                <DELETED>    (B) by striking ``or 
                471(a)(17)''.</DELETED>
        <DELETED>    (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended--</DELETED>
                <DELETED>    (A) by striking ``or E'' the 1st place 
                such term appears and inserting ``or benefits or 
                services are being provided under the State program 
                funded under part B''; and</DELETED>
                <DELETED>    (B) by striking ``or E'' the 2nd place 
                such term appears and inserting ``or benefits or 
                services were being provided under the State program 
                funded under part B''.</DELETED>
        <DELETED>    (3) Section 456(a)(1) of such Act (42 U.S.C. 
        656(a)(1)) is amended by striking ``foster care maintenance 
        payments'' and inserting ``benefits or services under a State 
        program funded under part B''.</DELETED>
        <DELETED>    (4) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)), as amended by section 104(b)(13) of this Act, is 
        amended by striking ``or 471(a)(17)''.</DELETED>
<DELETED>    (b) Repeal of Part E of Title IV of the Social Security 
Act.--Part E of title IV of such Act (42 U.S.C. 671-679) is hereby 
repealed.</DELETED>
<DELETED>    (c) Amendment to Title XVI of the Social Security Act as 
in Effect With Respect to the States.--Section 1611(c)(5)(B) of such 
Act (42 U.S.C. 1382(c)(5)(B)) is amended to read as follows: ``(B) the 
State program funded under part B of title IV,''.</DELETED>
<DELETED>    (d) Repeal of Section 13712 of the Omnibus Budget 
Reconciliation Act of 1993.--Section 13712 of the Omnibus Budget 
Reconciliation Act of 1993 (42 U.S.C. 670 note) is hereby 
repealed.</DELETED>
<DELETED>    (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''.</DELETED>
<DELETED>    (f) Repeal of Section 553 of the Howard M. Metzenbaum 
Multiethnic Placement Act of 1994.--Section 553 of the Howard M. 
Metzenbaum Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108 
Stat. 4056) is hereby repealed.</DELETED>
<DELETED>    (g) Repeal of Subtitle C of Title XVII of the Violent 
Crime Control and Law Enforcement Act of 1994.--Subtitle C of title 
XVII of the Violent Crime Control and Law Enforcement Act of 1994 is 
hereby repealed.</DELETED>

<DELETED>SEC. 203. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER 
              MEDICAID PROGRAM.</DELETED>

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

<DELETED>SEC. 204. EFFECTIVE DATE.</DELETED>

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

<DELETED>SEC. 205. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF 
              CHILDREN.</DELETED>

<DELETED>    It is the sense of the Congress that--</DELETED>
        <DELETED>    (1) too many children who wish to be adopted are 
        spending inordinate amounts of time in foster care;</DELETED>
        <DELETED>    (2) there is an urgent need for States to increase 
        the number of waiting children being adopted in a timely and 
        lawful manner;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (5) States should offer incentives for families 
        that adopt special needs children to make adoption more 
        affordable for middle-class families;</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) to provide the child with a single 
                foster care placement and a single coordinated case 
                team; and</DELETED>
                <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

   <DELETED>TITLE III--BLOCK GRANTS FOR CHILD CARE AND FOR NUTRITION 
                          ASSISTANCE</DELETED>

         <DELETED>Subtitle A--Child Care Block Grants</DELETED>

<DELETED>SEC. 301. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK 
              GRANT ACT OF 1990.</DELETED>

<DELETED>    (a) Goals.--Section 658A of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9801 note) is amended--</DELETED>
        <DELETED>    (1) in the heading of such section by inserting 
        ``and goals'' after ``title'',</DELETED>
        <DELETED>    (2) by inserting ``(a) Short Title.--'' before 
        ``This'', and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(b) Goals.--The goals of this subchapter are--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(3) to encourage States to provide consumer 
        education information to help parents make informed choices 
        about child care;</DELETED>
        <DELETED>    ``(4) to assist States to provide child care to 
        parents trying to achieve independence from public assistance; 
        and</DELETED>
        <DELETED>    ``(5) to assist States in implementing the health, 
        safety, licensing, and registration standards established in 
        State regulations.''.</DELETED>
<DELETED>    (b) Authorization of Appropriations.--Section 658B of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended to read as follows:</DELETED>

<DELETED>``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There is authorized to be appropriated to carry out this 
subchapter $2,093,000,000 for each of the fiscal years 1996, 1997, 
1998, 1999, and 2000.''.</DELETED>
<DELETED>    (c) Lead Entity.--Section 658D of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858b) is amended--
</DELETED>
        <DELETED>    (1) in the heading of such section by striking 
        ``agency'' inserting ``entity'',</DELETED>
        <DELETED>    (2) in subsection (a) by inserting ``or other 
        entity'' after ``State agency'', and</DELETED>
        <DELETED>    (3) by striking ``lead agency'' each place it 
        appears and inserting ``lead entity''.</DELETED>
<DELETED>    (d) Application and Plan.--Section 658E of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858c) is amended--
</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``implemented--'' and all 
                that follows through ``(2)'' and inserting 
                ``implemented'', and</DELETED>
                <DELETED>    (B) by striking ``for subsequent State 
                plans'',</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) in the heading of such 
                        paragraph by striking ``agency'' and inserting 
                        ``entity'', and</DELETED>
                        <DELETED>    (ii) by striking ``agency'' and 
                        inserting ``entity'',</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in subparagraph (A)--
                        </DELETED>
                                <DELETED>    (I) in clause (i) by 
                                striking ``, other than through 
                                assistance provided under paragraph 
                                (3)(C),'' and</DELETED>
                                <DELETED>    (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'',</DELETED>
                        <DELETED>    (ii) in subparagraph (B)--
                        </DELETED>
                                <DELETED>    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'', 
                                and</DELETED>
                                <DELETED>    (II) by inserting before 
                                the period at the end ``and provide a 
                                detailed description of such 
                                procedures'',</DELETED>
                        <DELETED>    (iii) in subparagraph (C)--
                        </DELETED>
                                <DELETED>    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'', 
                                and</DELETED>
                                <DELETED>    (II) by inserting before 
                                the period at the end ``and provide a 
                                detailed description of how such record 
                                is maintained and is made 
                                available'',</DELETED>
                        <DELETED>    (iv) by amending subparagraph (D) 
                        to read as follows:</DELETED>
                <DELETED>    ``(D) Consumer education information.--
                Provide assurances that the State will collect and 
                disseminate to parents of eligible children and the 
                general public, consumer education information that 
                will promote informed child care choices.'',</DELETED>
                        <DELETED>    (v) in subparagraph (E)--
                        </DELETED>
                                <DELETED>    (I) by striking ``Provide 
                                assurances'' and inserting 
                                ``Certify'',</DELETED>
                                <DELETED>    (II) in clause (i) by 
                                inserting ``health, safety, and'' after 
                                ``comply with all'',</DELETED>
                                <DELETED>    (III) in clause (i) by 
                                striking ``; and'' at the 
                                end,</DELETED>
                                <DELETED>    (IV) by striking ``that--
                                '' and all that follows through 
                                ``(i)'', and inserting ``that'', 
                                and</DELETED>
                                <DELETED>    (V) by striking ``(ii)'' 
                                and all that follows through the end of 
                                such subparagraph, and inserting ``and 
                                provide a detailed description of such 
                                requirements and of how such 
                                requirements are effectively 
                                enforced.'', and</DELETED>
                        <DELETED>    (vi) by striking subparagraphs 
                        (F), (G), (H), (I), and (J),</DELETED>
                <DELETED>    (C) in paragraph (3)--</DELETED>
                        <DELETED>    (i) in subparagraph (A) by 
                        inserting ``or as authorized by section 658T'' 
                        before the period at the end,</DELETED>
                        <DELETED>    (ii) in subparagraph (B)--
                        </DELETED>
                                <DELETED>    (I) by striking ``.--
                                Subject to the reservation contained in 
                                subparagraph (C), the'' and inserting 
                                ``and related activities.--
                                The'',</DELETED>
                                <DELETED>    (II) by inserting ``, 
                                other than amounts transferred under 
                                section 658T,'' after 
                                ``subchapter'',</DELETED>
                                <DELETED>    (III) in clause (i) by 
                                striking ``; and'' at the end and 
                                inserting a period,</DELETED>
                                <DELETED>    (IV) by striking ``for--'' 
                                and all that follows through ``section 
                                658E(c)(2)(A)'' and inserting ``for 
                                child care services, activities that 
                                improve the quality or availability of 
                                such services, and any other activity 
                                that the State deems appropriate to 
                                realize any of the goals specified in 
                                paragraphs (2) through (5) of section 
                                658A(b)'', and</DELETED>
                                <DELETED>    (V) by striking clause 
                                (ii), and</DELETED>
                        <DELETED>    (iii) by amending subparagraph (C) 
                        to read as follows:</DELETED>
                <DELETED>    ``(C) Limitation on administrative 
                costs.--Not more than 5 percent of the aggregate amount 
                of payments received under this subchapter by a State 
                in each fiscal year may be expended for administrative 
                costs incurred by such State to carry out all its 
                functions and duties under this 
                subchapter.'',</DELETED>
                <DELETED>    (D) in paragraph (4)(A)--</DELETED>
                        <DELETED>    (i) by striking ``provide 
                        assurances'' and inserting 
                        ``certify'',</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (iii) by striking the last 
                        sentence, and</DELETED>
                <DELETED>    (E) by striking paragraph (5).</DELETED>
<DELETED>    (e) Limitations on State Allotments--Section 658F(b)(2) of 
the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858d(b)(2)) is amended by striking ``referred to in section 
658E(c)(2)(F)''.</DELETED>
<DELETED>    (f) Repeal of Earmarked Required Expenditures.--The Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is 
amended by striking sections 658G and 658H.</DELETED>
<DELETED>    (g) Administration and Enforcement.--Section 658I(a) of 
the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858g(a)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1) by inserting ``and'' at the 
        end,</DELETED>
        <DELETED>    (2) by striking paragraph (2), and</DELETED>
        <DELETED>    (3) by redesignating paragraph (3) as paragraph 
        (2).</DELETED>
<DELETED>    (h) Payments.--Section 658J(c) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858h(c)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``expended'' and inserting 
        ``obligated'', and</DELETED>
        <DELETED>    (2) by striking ``3 fiscal years'' and inserting 
        ``fiscal year''.</DELETED>
<DELETED>    (i) Annual Report and Audits.--Section 658K of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i) is 
amended--</DELETED>
        <DELETED>    (1) in the heading of such section by inserting 
        ``, evaluation plans,'' after ``report'',</DELETED>
        <DELETED>    (2) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking ``, 1992'' and inserting 
                ``following the end of the first fiscal year with 
                respect to which the amendments made by the Personal 
                Responsibility Act of 1995 apply'',</DELETED>
                <DELETED>    (B) by amending paragraph (2) to read as 
                follows:</DELETED>
        <DELETED>    ``(2) containing data on the manner in which the 
        child care needs of families in the State are being fulfilled, 
        including information concerning--</DELETED>
                <DELETED>    ``(A) the number and ages of children 
                being assisted with funds provided under this 
                subchapter;</DELETED>
                <DELETED>    ``(B) with respect to the families of such 
                children--</DELETED>
                        <DELETED>    ``(i) the number of other children 
                        in such families;</DELETED>
                        <DELETED>    ``(ii) the number of such families 
                        that include only 1 parent;</DELETED>
                        <DELETED>    ``(iii) the number of such 
                        families that include both parents;</DELETED>
                        <DELETED>    ``(iv) the ages of the mothers of 
                        such children;</DELETED>
                        <DELETED>    ``(v) the ages of the fathers of 
                        such children;</DELETED>
                        <DELETED>    ``(vi) the sources of the economic 
                        resources of such families, including the 
                        amount of such resources obtained from (and 
                        separately identified as being from)--
                        </DELETED>
                                <DELETED>    ``(I) employment, 
                                including self-employment;</DELETED>
                                <DELETED>    ``(II) assistance received 
                                under part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et 
                                seq.);</DELETED>
                                <DELETED>    ``(III) part B of title IV 
                                of the Social Security Act (42 U.S.C. 
                                621 et seq.);</DELETED>
                                <DELETED>    ``(IV) the Child Nutrition 
                                Act of 1966 (42 U.S.C. 1771 et 
                                seq.);</DELETED>
                                <DELETED>    ``(V) the National School 
                                Lunch Act (42 U.S.C. 1751 et 
                                seq.);</DELETED>
                                <DELETED>    ``(VI) assistance received 
                                under title XVI of the Social Security 
                                Act (42 U.S.C. 1381 et seq.);</DELETED>
                                <DELETED>    ``(VII) assistance 
                                received under title XIV of the Social 
                                Security Act (42 U.S.C. 1351 et 
                                seq.);</DELETED>
                                <DELETED>    ``(VIII) assistance 
                                received under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et 
                                seq.);</DELETED>
                                <DELETED>    ``(IX) assistance received 
                                under title XX of the Social Security 
                                Act (42 U.S.C. 1397 et seq.); 
                                and</DELETED>
                                <DELETED>    ``(X) any other source of 
                                economic resources the Secretary 
                                determines to be appropriate;</DELETED>
                <DELETED>    ``(C) the number of such providers 
                separately identified with respect to each type of 
                child care provider specified in section 658P(5) that 
                provided child care services obtained with assistance 
                provided under this subchapter;</DELETED>
                <DELETED>    ``(D) with respect to cost of such 
                services--</DELETED>
                        <DELETED>    ``(i) the cost imposed by such 
                        providers to provide such services; 
                        and</DELETED>
                        <DELETED>    ``(ii) the portion of such cost 
                        paid with assistance provided under this 
                        subchapter;</DELETED>
                <DELETED>    ``(E) with respect to consumer education 
                information described in section 658E(c)(2)(D) provided 
                by such State--</DELETED>
                        <DELETED>    ``(i) the manner in which such 
                        information was provided; and</DELETED>
                        <DELETED>    ``(ii) the number of parents to 
                        whom such information was provided; 
                        and</DELETED>
                <DELETED>    ``(F) with respect to complaints received 
                by such State regarding child care services obtained 
                with assistance provided under this subchapter--
                </DELETED>
                        <DELETED>    ``(i) the number of such 
                        complaints that were found to have merit; 
                        and</DELETED>
                        <DELETED>    ``(ii) a description of the 
                        actions taken by the State to correct the 
                        circumstances on which such complaints were 
                        based.'',</DELETED>
                <DELETED>    (C) by striking paragraphs (3), (4), (5), 
                and (6) and inserting the following:</DELETED>
        <DELETED>    ``(3) containing evidence demonstrating that the 
        State satisfied the requirements of section 658E(c)(2)(F); 
        and</DELETED>
        <DELETED>    ``(4) identifying each State program operated 
        under a provision of law specified in section 658T to which the 
        State transferred funds under the authority of such section, 
        specifying the amount of funds so transferred to such program, 
        and containing a justification for so transferring such 
        amount;'', and</DELETED>
        <DELETED>    (3) in subsection (b)--</DELETED>
                <DELETED>    (A) in paragraph (1) by striking ``a 
                application'' and inserting ``an 
                application'',</DELETED>
                <DELETED>    (B) in paragraph (2) by striking ``any 
                agency administering activities that receive'' and 
                inserting ``the State that receives'', and</DELETED>
                <DELETED>    (C) in paragraph (4) by striking 
                ``entitles'' and inserting ``entitled'', and</DELETED>
        <DELETED>    (4) by redesignating subsection (b) as subsection 
        (c), and</DELETED>
        <DELETED>    (5) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) State Evaluation Plan and Evaluation Results.--
</DELETED>
        <DELETED>    ``(1) Evaluation plan.--In the first report 
        submitted under subsection (a) after the date of the enactment 
        of the Personal Responsibility Act of 1995, and in the report 
        for each alternating 1-year period thereafter, the State shall 
        include a plan the State intends to carry out in the 1-year 
        period subsequent to the period for which such report is 
        submitted, to evaluate the extent to which the State has 
        realized each of the goals specified in paragraphs (2) through 
        (5) of section 658A(b). The State shall include in such plan a 
        description of the types of data and other information the 
        State will collect to determine whether the State has realized 
        such goals.</DELETED>
        <DELETED>    ``(2) Evaluation results.--In the second report 
        submitted under subsection (a) after the date of the enactment 
        of the Personal Responsibility Act of 1995, and in the report 
        for each alternating 1-year period thereafter, the State shall 
        include a summary of the results of an evaluation carried out 
        under the evaluation plan contained in the report submitted 
        under subsection (a) for the preceding 1-year 
        period.''.</DELETED>
<DELETED>    (j) Report by Secretary.--Section 658L of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858j) is amended--
</DELETED>
        <DELETED>    (1) by striking ``, 1993, and annually'' and 
        inserting ``following the end of the second fiscal year with 
        respect to which the amendments made by the Personal 
        Responsibility Act of 1995 apply, and biennially'',</DELETED>
        <DELETED>    (2) by striking ``Committee on Education and 
        Labor'' and inserting ``Speaker'',</DELETED>
        <DELETED>    (3) by striking ``Committee on Labor and Human 
        Resources'' and inserting ``President pro tempore'', 
        and</DELETED>
        <DELETED>    (4) by striking the last sentence.</DELETED>
<DELETED>    (k) Reallotments.--Section 658O of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)(1)--</DELETED>
                <DELETED>    (A) by striking ``Possessions'' and 
                inserting ``possessions'',</DELETED>
                <DELETED>    (B) by inserting ``and'' after 
                ``States,'', and</DELETED>
                <DELETED>    (C) by striking ``, and the Trust 
                Territory of the Pacific Islands'',</DELETED>
        <DELETED>    (2) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) State Allotment.--From the amount appropriated under 
section 658B for each fiscal year remaining after reservations under 
subsection (a), the Secretary shall allot to each State (excluding 
Guam, American Samoa, the Virgin Islands of the United States, and the 
Commonwealth of the Northern Mariana Islands) an amount that bears the 
same ratio to the amount so appropriated for such fiscal year as the 
aggregate of the amounts received by the State under--</DELETED>
        <DELETED>    ``(1) this subchapter for fiscal year 
        1994;</DELETED>
        <DELETED>    ``(2) section 403 of the Social Security Act, with 
        respect to expenditures by the State for child care under 
        section 402(g)(1) of such Act during fiscal year 1994; 
        and</DELETED>
        <DELETED>    ``(3) section 403(n) of the Social Security Act 
        for fiscal year 1994;</DELETED>
<DELETED>bears to the aggregate of the amounts received by all the 
States (excluding Guam, American Samoa, the Virgin Islands of the 
United States, and the Commonwealth of the Northern Mariana Islands) 
under paragraphs (1), (2), and (3).'',</DELETED>
        <DELETED>    (3) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (2)(A) by striking 
                ``agency'' and inserting ``entity'', and</DELETED>
                <DELETED>    (B) in paragraph (5) by striking ``our'' 
                and inserting ``out'',</DELETED>
        <DELETED>    (4) by striking subsection (e), and</DELETED>
        <DELETED>    (5) by redesignating subsection (f) as subsection 
        (e).</DELETED>
<DELETED>    (l) Definitions.--Section 658P of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (5)(A)--</DELETED>
                <DELETED>    (A) in clause (i) by striking ``and'' at 
                the end and inserting ``or'',</DELETED>
                <DELETED>    (B) by striking ``that--'' and all that 
                follows through ``(i)'', and inserting ``that'', 
                and</DELETED>
                <DELETED>    (C) by striking clause (ii),</DELETED>
        <DELETED>    (2) by amending paragraph (8) to read as 
        follows:</DELETED>
        <DELETED>    ``(8) Lead entity.--The term `lead entity' means 
        the State agency or other entity designated under section 
        658B(a).'',</DELETED>
        <DELETED>    (3) by striking paragraphs (3), (10), and 
        (12),</DELETED>
        <DELETED>    (4) by inserting after paragraph (2) the 
        following:</DELETED>
        <DELETED>    ``(3) Child care services.--The term `child care 
        services' means services that constitute physical care of a 
        child and may include services that are designed to enhance the 
        educational, social, cultural, emotional, and recreational 
        development of a child but that are not intended to serve as a 
        substitute for compulsory educational services.'',</DELETED>
        <DELETED>    (5) in paragraph (13)--</DELETED>
                <DELETED>    (A) by inserting ``or'' after ``Samoa,'', 
                and</DELETED>
                <DELETED>    (B) by striking ``, and the Trust 
                Territory of the Pacific Islands'', and</DELETED>
        <DELETED>    (6) by redesignating paragraphs (11), (13), and 
        (14) as paragraphs (10), (11), and (12), 
        respectively.</DELETED>
<DELETED>    (m) Authority to Transfer Funds.--The Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended 
by inserting after section 658S the following:</DELETED>

<DELETED>``SEC. 658T. TRANSFER OF FUNDS.</DELETED>

<DELETED>    ``(a) Authority.--Of the aggregate amount of payments 
received under this subchapter by a State in each fiscal year, the 
State may transfer not more than 20 percent for use by the State to 
carry out State programs under 1 or more of the following provisions of 
law:</DELETED>
        <DELETED>    ``(1) Part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.).</DELETED>
        <DELETED>    ``(2) Part B of title IV of the Social Security 
        Act (42 U.S.C. 621 et seq.).</DELETED>
        <DELETED>    ``(3) The Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.).</DELETED>
        <DELETED>    ``(4) The National School Lunch Act (42 U.S.C. 
        1751 et seq.).</DELETED>
        <DELETED>    ``(5) Title XX of the Social Security Act (42 
        U.S.C. 1397 et seq.).</DELETED>
<DELETED>    ``(b) Requirements Applicable to Funds Transferred.--Funds 
transferred under subsection (a) to carry out a State program operated 
under a provision of law specified in such subsection shall not be 
subject to the requirements of this subchapter, but shall be subject to 
the same requirements that apply to Federal funds provided directly 
under such provision of law to carry out such program.''.</DELETED>

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

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) in section 10413(a) by striking paragraph 
        (4),</DELETED>
        <DELETED>    (2) in section 10963(b)(2) by striking 
        subparagraph (G), and</DELETED>
        <DELETED>    (3) in section 10974(a)(6) by striking 
        subparagraph (G).</DELETED>
<DELETED>    (d) Native Hawaiian Family-Based Education Centers.--
Section 9205 of the Native Hawaiian Education Act (Public Law 103-382; 
108 Stat. 3794) is repealed.</DELETED>
     <DELETED>Subtitle B--Family and School-Based Nutrition Block 
                            Grants</DELETED>

   <DELETED>CHAPTER 1--FAMILY NUTRITION BLOCK GRANT PROGRAM</DELETED>

<DELETED>SEC. 321. AMENDMENT TO CHILD NUTRITION ACT OF 1966.</DELETED>

<DELETED>    The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
is amended to read as follows:</DELETED>
<DELETED>``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

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

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

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

<DELETED>``SEC. 3. ALLOTMENT.</DELETED>

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

<DELETED>``SEC. 4. APPLICATION.</DELETED>

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

<DELETED>    ``(a) In General.--The Secretary may provide a grant under 
this Act to a State only if the State agrees that it will use all 
amounts received from such grant--</DELETED>
        <DELETED>    ``(1) subject to subsection (b), to provide 
        nutritional risk assessment, food assistance based on such risk 
        assessment, and nutrition education and counseling to 
        economically disadvantaged pregnant women, postpartum women, 
        breastfeeding women, infants, and young children who are 
        determined to be at nutritional risk;</DELETED>
        <DELETED>    ``(2) to provide milk in nonprofit nursery 
        schools, child care centers, settlement houses, summer camps, 
        and similar institutions devoted to the care and training of 
        children, to children from economically disadvantaged 
        families;</DELETED>
        <DELETED>    ``(3) to provide food service programs in 
        institutions and family day care homes providing child care to 
        children from economically disadvantaged families;</DELETED>
        <DELETED>    ``(4) to provide summer food service programs 
        carried out by nonprofit food authorities, local governments, 
        nonprofit higher education institutions participating in the 
        National Youth Sports Program, and residential nonprofit summer 
        camps to children from economically disadvantaged families; 
        and</DELETED>
        <DELETED>    ``(5) to provide nutritious meals to pre-school 
        age homeless children in shelters and other facilities serving 
        the homeless population.</DELETED>
<DELETED>    ``(b) Additional Requirements With Respect To Assistance 
for Pregnant, Postpartum, and Breastfeeding Women, Infants, and 
Children.--</DELETED>
        <DELETED>    ``(1) Minimum amount of assistance.--The State 
        shall ensure that not less than 80 percent of the amount of the 
        grant is used to provide nutritional risk assessment, food 
        assistance based on such nutritional risk assessment, and 
        nutrition education and counseling to economically 
        disadvantaged pregnant women, postpartum women, breastfeeding 
        women, infants, and young children under subsection 
        (a)(1).</DELETED>
        <DELETED>    ``(2) Cost containment measures regarding 
        procurement of infant formula.--</DELETED>
                <DELETED>    ``(A) In general.--The State shall, with 
                respect to the provision of food assistance to 
                economically disadvantaged pregnant women, postpartum 
                women, breastfeeding women, infants, and young children 
                under subsection (a)(1), establish and carry out a cost 
                containment system for the procurement of infant 
                formula.</DELETED>
                <DELETED>    ``(B) Use of amounts resulting from 
                savings.--The State shall use amounts available to the 
                State as result of savings in costs to the State from 
                the implementation of the cost containment system 
                described in subparagraph (A) for the purpose of 
                providing the assistance described in paragraphs (1) 
                through (5) of subsection (a).</DELETED>
                <DELETED>    ``(C) Annual reports.--The State shall 
                submit to the Secretary for each fiscal year a report 
                containing--</DELETED>
                        <DELETED>    ``(i) a description of the cost 
                        containment system for infant formula 
                        implemented by the State in accordance with 
                        subparagraph (A) for such fiscal year; 
                        and</DELETED>
                        <DELETED>    ``(ii) the estimated amount of 
                        savings in costs derived by the State in 
                        providing food assistance described in such 
                        subparagraph under such cost containment system 
                        for such fiscal year as compared to the amount 
                        of such savings derived by the State under the 
                        cost containment system for the preceding 
                        fiscal year, where appropriate.</DELETED>
        <DELETED>    ``(3) Assistance for members of the armed forces 
        and their dependents.--The State shall ensure that assistance 
        described in subsection (a)(1) is provided to members of the 
        Armed Forces and dependents of such members (regardless of the 
        State of residence of such members or dependents) who meet the 
        requirements of such subsection on an equitable basis with 
        assistance provided to all other individuals under such 
        subsection in such State.</DELETED>
<DELETED>    ``(c) Additional Requirement With Respect To Child Care 
Assistance on Military Installations.--</DELETED>
        <DELETED>    ``(1) In general.--To the extent consistent with 
        the number of children who are receiving assistance under child 
        care programs established and carried out on military 
        installations in such State by the Department of Defense, the 
        State, after timely and appropriate consultation with 
        representatives of such programs, shall provide assistance to 
        such programs for such children (regardless of the State of 
        residence of such children) in accordance with subsection 
        (a)(3) on an equitable basis with assistance provided in 
        accordance with such subsection to all other child care 
        programs carried out in such State.</DELETED>
        <DELETED>    ``(2) Limitation.--In providing assistance to a 
        child care program established and carried out on a military 
        installation under paragraph (1), a State shall not require 
        that such program be licensed under State law if such program 
        is licensed by the Department of Defense.</DELETED>
<DELETED>    ``(d) Authority To Use Amounts for Other Purposes.--
</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraphs (2) and 
        (3), a State may use not more than 20 percent of amounts 
        received from a grant under this Act for a fiscal year to carry 
        out a State program pursuant to any or all of the following 
        provisions of law:</DELETED>
                <DELETED>    ``(A) Part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.).</DELETED>
                <DELETED>    ``(B) Part B of title IV of the Social 
                Security Act (42 U.S.C. 621 et seq.).</DELETED>
                <DELETED>    ``(C) Title XX of the Social Security Act 
                (42 U.S.C. 1397 et seq.).</DELETED>
                <DELETED>    ``(D) The National School Lunch Act (42 
                U.S.C. 1751 et seq.).</DELETED>
                <DELETED>    ``(E) The Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9858 et seq.).</DELETED>
        <DELETED>    ``(2) Sufficient funding determination.--Prior to 
        using any amounts received from a grant under this Act for a 
        fiscal year to carry out a State program pursuant to any or all 
        of the provisions of law described in paragraph (1), the 
        appropriate State agency shall make a determination that 
        sufficient amounts will remain available for such fiscal year 
        to carry out this Act.</DELETED>
        <DELETED>    ``(3) Rules governing use of amounts for other 
        purposes.--Amounts paid to the State under a grant under this 
        Act that are used to carry out a State program pursuant to a 
        provision of law specified in paragraph (1) shall not be 
        subject to the requirements of this Act, but shall be subject 
        to the same requirements that apply to Federal funds provided 
        directly under the provision of law to carry out the 
        program.</DELETED>

<DELETED>``SEC. 6. REPORTS.</DELETED>

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

<DELETED>``SEC. 7. PENALTIES.</DELETED>

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

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

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

<DELETED>``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

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

<DELETED>``SEC. 10. DEFINITIONS.</DELETED>

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

        <DELETED>CHAPTER 2--SCHOOL-BASED NUTRITION BLOCK GRANT 
                           PROGRAM</DELETED>

<DELETED>SEC. 341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.</DELETED>

<DELETED>    The National School Lunch Act (42 U.S.C. 1751 et seq.) is 
amended to read as follows:</DELETED>
<DELETED>``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

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

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

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

<DELETED>``SEC. 3. ALLOTMENT.</DELETED>

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

<DELETED>``SEC. 4. APPLICATION.</DELETED>

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

<DELETED>``SEC. 5. USE OF AMOUNTS.</DELETED>

<DELETED>    ``(a) In General.--The Secretary may provide a grant under 
this Act to a State only if the State agrees that it will use all 
amounts received from such grant to provide assistance to schools to 
establish and carry out nutritious food service programs that provide 
affordable meals and supplements to students, which may include--
</DELETED>
        <DELETED>    ``(1) nonprofit school breakfast 
        programs;</DELETED>
        <DELETED>    ``(2) nonprofit school lunch programs;</DELETED>
        <DELETED>    ``(3) nonprofit before and after school supplement 
        programs;</DELETED>
        <DELETED>    ``(4) nonprofit low-cost milk services; 
        and</DELETED>
        <DELETED>    ``(5) nonprofit summer meals programs.</DELETED>
<DELETED>    ``(b) Additional Requirements.--</DELETED>
        <DELETED>    ``(1) Minimum amount of grant for free or low cost 
        meals or supplements.--In providing assistance to schools to 
        establish and carry out nutritious food service programs in 
        accordance with subsection (a), the State shall ensure that not 
        less than 80 percent of the amount of the grant is used to 
        provide free or low cost meals or supplements to economically 
        disadvantaged children.</DELETED>
        <DELETED>    ``(2) Provision of food service programs in 
        private nonprofit schools and department of defense domestic 
        dependents' schools.--To the extent consistent with the number 
        of children in the State who are enrolled in private nonprofit 
        schools and Department of Defense domestic dependents' schools, 
        the State, after timely and appropriate consultation with 
        representatives of such schools, as the case may be, shall 
        ensure that nutritious food service programs are established 
        and carried out in such schools in accordance with subsection 
        (a) on an equitable basis with nutritious food service programs 
        established and carried out in public nonprofit schools in the 
        State.</DELETED>
<DELETED>    ``(c) Authority To Use Amounts for Other Purposes.--
</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraphs (2) and 
        (3), a State may use not more than 20 percent of amounts 
        received from a grant under this Act for a fiscal year to carry 
        out a State program pursuant to any or all of the following 
        provisions of law:</DELETED>
                <DELETED>    ``(A) Part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.).</DELETED>
                <DELETED>    ``(B) Part B of title IV of the Social 
                Security Act (42 U.S.C. 621 et seq.).</DELETED>
                <DELETED>    ``(C) Title XX of the Social Security Act 
                (42 U.S.C. 1397 et seq.).</DELETED>
                <DELETED>    ``(D) The Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.).</DELETED>
                <DELETED>    ``(E) The Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9858 et seq.).</DELETED>
        <DELETED>    ``(2) Sufficient funding determination.--Prior to 
        using any amounts received from a grant under this Act for a 
        fiscal year to carry out a State program pursuant to any or all 
        of the provisions of law described in paragraph (1), the 
        appropriate State agency shall make a determination that 
        sufficient amounts will remain available for such fiscal year 
        to carry out this Act.</DELETED>
        <DELETED>    ``(3) Rules governing use of amounts for other 
        purposes.--Amounts paid to the State under a grant under this 
        Act that are used to carry out a State program pursuant to a 
        provision of law specified in paragraph (1) shall not be 
        subject to the requirements of this Act, but shall be subject 
        to the same requirements that apply to Federal funds provided 
        directly under the provision of law to carry out the 
        program.</DELETED>
<DELETED>    ``(d) Limitation on Provision of Commodities to Certain 
School Districts, Private Nonprofit Schools, and Department of Defense 
Domestic Dependents' Schools.--</DELETED>
        <DELETED>    ``(1) In general.--A State may not require a 
        school district, private nonprofit school, or Department of 
        Defense domestic dependents' school described in paragraph (2), 
        except upon the request of such school district, private 
        school, or domestic dependents' school, as the case may be, to 
        accept commodities for use in the food service program of such 
        school district, private school, or domestic dependents' school 
        in accordance with this section. Such school district, private 
        school, or domestic dependents' school may continue to receive 
        commodity assistance in the form that it received such 
        assistance as of January 1, 1987.</DELETED>
        <DELETED>    ``(2) School district, private nonprofit school, 
        and department of defense domestic dependents' school 
        described.--A school district, private nonprofit school, or 
        Department of Defense domestic dependents' school described in 
        this paragraph is a school district, private nonprofit school, 
        or Department of Defense domestic dependents' school, as the 
        case may be, that as of January 1, 1987, was receiving all cash 
        payments or all commodity letters of credit in lieu of 
        entitlement commodities for the school lunch program of such 
        school district, private school, or domestic dependents' school 
        under section 18(b) of the National School Lunch Act (42 U.S.C. 
        1751 et seq.), as such section was in effect on the day before 
        the date of the enactment of the Personal Responsibility Act of 
        1995.</DELETED>
<DELETED>    ``(e) Prohibition on Physical Segregation, Overt 
Identification, or Other Discrimination With Respect to Children 
Eligible for Free or Low Cost Meals or Supplements.--In providing 
assistance to schools to establish and carry out nutritious food 
service programs in accordance with subsection (a), the State shall 
ensure that such schools do not--</DELETED>
        <DELETED>    ``(1) physically segregate children eligible to 
        receive free or low cost meals or supplements on the basis of 
        such eligibility;</DELETED>
        <DELETED>    ``(2) provide for the overt identification of such 
        children by special tokens or tickets, announced or published 
        list of names, or other means; or</DELETED>
        <DELETED>    ``(3) otherwise discriminate against such 
        children.</DELETED>

<DELETED>``SEC. 6. REPORTS.</DELETED>

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

<DELETED>``SEC. 7. PENALTIES.</DELETED>

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

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

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

<DELETED>``SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF DEFENSE 
              OVERSEAS DEPENDENTS' SCHOOLS.</DELETED>

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

<DELETED>``SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR 
              STUDENTS.</DELETED>

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

<DELETED>``SEC. 11. DEFINITIONS.</DELETED>

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

         <DELETED>CHAPTER 3--MISCELLANEOUS PROVISIONS</DELETED>

<DELETED>SEC. 361. REPEALERS.</DELETED>

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

          <DELETED>Subtitle C--Other Repealers and Conforming 
                          Amendments</DELETED>

<DELETED>SEC. 371. AMENDMENTS TO LAWS RELATING TO CHILD PROTECTION 
              BLOCK GRANT.</DELETED>

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

           <DELETED>Subtitle D--Related Provisions</DELETED>

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

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

<DELETED>SEC. 382. DATA ON PROGRAM PARTICIPATION AND 
              OUTCOMES.</DELETED>

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

 <DELETED>Subtitle E--General Effective Date; Preservation of Actions, 
                   Obligations, and Rights</DELETED>

<DELETED>SEC. 391. EFFECTIVE DATE.</DELETED>

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

<DELETED>SEC. 392. APPLICATION OF AMENDMENTS AND REPEALERS.</DELETED>

<DELETED>    An amendment or repeal made by this title shall not apply 
with respect to--</DELETED>
        <DELETED>    (1) powers, duties, functions, rights, claims, 
        penalties, or obligations applicable to financial assistance 
        provided before the effective date of amendment or repeal, as 
        the case may be, under the Act so amended or so repealed; 
        and</DELETED>
        <DELETED>    (2) administrative actions and proceedings 
        commenced before such date, or authorized before such date to 
        be commenced, under such Act.</DELETED>
    <DELETED>TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR 
                            ALIENS</DELETED>
<DELETED>SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
              IMMIGRATION.</DELETED>

<DELETED>    The Congress makes the following statements concerning 
national policy with respect to welfare and immigration:</DELETED>
        <DELETED>    (1) Self-sufficiency has been a basic principle of 
        United States immigration law since this country's earliest 
        immigration statutes.</DELETED>
        <DELETED>    (2) It continues to be the immigration policy of 
        the United States that--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) the availability of public benefits 
                not constitute an incentive for immigration to the 
                United States.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) It is a compelling government interest to 
        remove the incentive for illegal immigration provided by the 
        availability of public benefits.</DELETED>

         <DELETED>Subtitle A--Eligibility for Federal Benefits 
                           Programs</DELETED>

<DELETED>SEC. 401. INELIGIBILITY OF ILLEGAL ALIENS FOR CERTAIN PUBLIC 
              BENEFITS PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as provided in subsections (b) and (c), any alien who is 
not lawfully present in the United States shall not be eligible for any 
Federal means-tested public benefits program (as defined in section 
431(d)(2)).</DELETED>
<DELETED>    (b) Exception for Emergency Assistance.--Subsection (a) 
shall not apply to the provision of non-cash, in-kind emergency 
assistance (including emergency medical services).</DELETED>
<DELETED>    (c) Treatment of Housing-related Assistance.--Subsection 
(a) shall not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).</DELETED>

<DELETED>SEC. 402. INELIGIBILITY OF NONIMMIGRANTS FOR CERTAIN PUBLIC 
              BENEFITS PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as provided in subsections (b) and (c), any alien who is 
lawfully present in the United States as a nonimmigrant shall not be 
eligible for any Federal means-tested public benefits 
program.</DELETED>
<DELETED>    (b) Exceptions.--</DELETED>
        <DELETED>    (1) Emergency assistance.--Subsection (a) shall 
        not apply to the provision of non-cash, in-kind emergency 
        assistance (including emergency medical services).</DELETED>
        <DELETED>    (2) Aliens granted asylum.--Subsection (a) shall 
        not apply to an alien who is granted asylum under section 208 
        of the Immigration and Nationality Act or whose deportation has 
        been withheld under section 243(h) of such Act.</DELETED>
        <DELETED>    (3) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.</DELETED>
<DELETED>    (c) Treatment of Housing-related Assistance.--Subsection 
(a) shall not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).</DELETED>
<DELETED>    (d) Treatment of Aliens Paroled into the United States.--
An alien who is paroled into the United States under section 212(d)(5) 
of the Immigration and Nationality Act for a period of less than 1 year 
shall be considered, for purposes of this subtitle, to be lawfully 
present in the United States as a nonimmigrant.</DELETED>

<DELETED>SEC. 403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5 SPECIFIED 
              FEDERAL PUBLIC BENEFITS PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as provided in subsection (b), any alien who is lawfully 
present in the United States shall not be eligible for any of the 
following Federal means-tested public benefits programs:</DELETED>
        <DELETED>    (1) SSI.--The supplemental security income program 
        under title XVI of the Social Security Act.</DELETED>
        <DELETED>    (2) Temporary assistance for needy families.--The 
        program of block grants to States for temporary assistance for 
        needy families under part A of title IV of the Social Security 
        Act.</DELETED>
        <DELETED>    (3) Social services block grant.--The program of 
        block grants to States for social services under title XX of 
        the Social Security Act.</DELETED>
        <DELETED>    (4) Medicaid.--The program of medical assistance 
        under title XIX of the Social Security Act.</DELETED>
        <DELETED>    (5) Food stamps.--The program under the Food Stamp 
        Act of 1977.</DELETED>
<DELETED>    (b) Exceptions.--</DELETED>
        <DELETED>    (1) Time-limited exception for refugees.--
        Subsection (a) shall not apply to an alien admitted to the 
        United States as a refugee under section 207 of the Immigration 
        and Nationality Act until 5 years after the date of such 
        alien's arrival into the United States.</DELETED>
        <DELETED>    (2) Certain long-term, permanent resident, aged 
        aliens.--Subsection (a) shall not apply to an alien who--
        </DELETED>
                <DELETED>    (A) has been lawfully admitted to the 
                United States for permanent residence;</DELETED>
                <DELETED>    (B) is over 75 years of age; and</DELETED>
                <DELETED>    (C) has resided in the United States for 
                at least 5 years.</DELETED>
        <DELETED>    (3) Veteran and active duty exception.--Subsection 
        (a) shall not apply to an alien who is lawfully residing in any 
        State (or any territory or possession of the United States) and 
        is--</DELETED>
                <DELETED>    (A) a veteran (as defined in section 101 
                of title 38, United States Code) with a discharge 
                characterized as an honorable discharge,</DELETED>
                <DELETED>    (B) on active duty (other than active duty 
                for training) in the Armed Forces of the United States, 
                or</DELETED>
                <DELETED>    (C) the spouse or unmarried dependent 
                child of an individual described in subparagraph (A) or 
                (B).</DELETED>
        <DELETED>Subparagraph (A) shall not apply in the case of a 
        veteran who has been separated from military service on account 
        of alienage.</DELETED>
        <DELETED>    (4) Emergency assistance.--Subsection (a) shall 
        not apply to the provision of non-cash, in-kind emergency 
        assistance (including emergency medical services).</DELETED>
        <DELETED>    (5) Transition for current beneficiaries.--
        Subsection (a) shall not apply to the eligibility of an alien 
        for a program until 1 year after the date of the enactment of 
        this Act if, on such date of enactment, the alien is lawfully 
        residing in any State or any territory or possession of the 
        United States and is eligible for the program.</DELETED>
        <DELETED>    (6) Certain permanent resident and disabled 
        aliens.--Subsection (a) shall not apply to an alien who--
        </DELETED>
                <DELETED>    (A) has been lawfully admitted to the 
                United States for permanent residence; and</DELETED>
                <DELETED>    (B) is unable because of physical or 
                developmental disability or mental impairment 
                (including Alzheimer's disease) to comply with the 
                naturalization requirements of section 312(a) of the 
                Immigration and Naturalization Act.</DELETED>

<DELETED>SEC. 404. NOTIFICATION.</DELETED>

<DELETED>    Each Federal agency that administers a program to which 
section 401, 402, or 403 applies shall, directly or through the States, 
post information and provide general notification to the public and to 
program recipients of the changes regarding eligibility for any such 
program pursuant to this subtitle.</DELETED>

 <DELETED>Subtitle B--Eligibility for State and Local Public Benefits 
                           Programs</DELETED>
<DELETED>SEC. 411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL 
              PUBLIC BENEFITS PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as otherwise provided in this section, no alien who is 
not lawfully present in the United States (as determined in accordance 
with regulations of the Attorney General) shall be eligible for any 
State means-tested public benefits program (as defined in section 
431(d)(3)).</DELETED>
<DELETED>    (b) Exception for Emergency Assistance.--Subsection (a) 
shall not apply to the provision of non-cash, in-kind emergency 
assistance (including emergency medical services).</DELETED>
<DELETED>SEC. 412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE AND LOCAL 
              PUBLIC BENEFITS PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as otherwise provided in this section, no alien who is 
lawfully present in the United States as a nonimmigrant shall be 
eligible for any State means-tested public benefits program (as defined 
in section 431(d)(3)).</DELETED>
<DELETED>    (b) Exceptions.--</DELETED>
        <DELETED>    (1) Emergency assistance.--The limitations under 
        subsection (a) shall not apply to the provision of non-cash, 
        in-kind emergency assistance (including emergency medical 
        services).</DELETED>
        <DELETED>    (2) Aliens granted asylum.--Subsection (a) shall 
        not apply to an alien who is granted asylum under section 208 
        of the Immigration and Nationality Act or whose deportation has 
        been withheld under section 243(h) of such Act.</DELETED>
        <DELETED>    (3) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.</DELETED>
<DELETED>    (c) Treatment of Aliens Paroled into the United States.--
An alien who is paroled into the United States under section 212(d)(5) 
of the Immigration and Nationality Act for a period of less than 1 year 
shall be considered, for purposes of this subtitle, to be lawfully 
present in the United States as a nonimmigrant.</DELETED>
<DELETED>SEC. 413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF IMMIGRANTS 
              FOR STATE AND LOCAL MEANS-TESTED PUBLIC BENEFITS 
              PROGRAMS.</DELETED>

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

     <DELETED>Subtitle C--Attribution of Income and Affidavits of 
                           Support</DELETED>
<DELETED>SEC. 421. ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO 
              FAMILY-SPONSORED IMMIGRANTS.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and except as provided in subsection (c), in determining the 
eligibility and the amount of benefits of an alien for any means-tested 
public benefits program (as defined in section 431(d)) the income and 
resources of the alien shall be deemed to include--</DELETED>
        <DELETED>    (1) the income and resources of any person who 
        executed an affidavit of support pursuant to section 213A of 
        the Immigration and Nationality Act (as added by section 422) 
        in behalf of such alien, and</DELETED>
        <DELETED>    (2) the income and resources of the spouse (if 
        any) of the person.</DELETED>
<DELETED>    (b) Application.--Subsection (a) shall apply with respect 
to an alien until such time as the alien achieves United States 
citizenship through naturalization pursuant to chapter 2 of title III 
of the Immigration and Nationality Act.</DELETED>
<DELETED>    (c) Exception for Housing-related Assistance.--Subsection 
(a) shall not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act.</DELETED>

<DELETED>SEC. 422. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF 
              SUPPORT.</DELETED>

<DELETED>    (a) In General.--Title II of the Immigration and 
Nationality Act is amended by inserting after section 213 the following 
new section:</DELETED>
  <DELETED>``requirements for sponsor's affidavit of support</DELETED>

<DELETED>    ``Sec. 213A. (a) Enforceability.--No affidavit of support 
may be accepted by the Attorney General or by any consular officer to 
establish that an alien is not excludable as a public charge under 
section 212(a)(4) unless such affidavit is executed as a contract--
</DELETED>
        <DELETED>    ``(1) which is legally enforceable against the 
        sponsor by the Federal Government and by any State (or any 
        political subdivision of such State) which provides any means-
        tested public benefits program, but not later than 10 years 
        after the alien last receives any such benefit; and</DELETED>
        <DELETED>    ``(2) in which the sponsor agrees to submit to the 
        jurisdiction of any Federal or State court for the purpose of 
        actions brought under subsection (e)(2).</DELETED>
<DELETED>Such contract shall be enforceable with respect to benefits 
provided to the alien until such time as the alien achieves United 
States citizenship through naturalization pursuant to chapter 2 of 
title III.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Statutory Construction.--Nothing in this section 
shall be construed to grant third party beneficiary rights to any 
sponsored alien under an affidavit of support.</DELETED>
<DELETED>    ``(d) Notification of Change of Address.--(1) The sponsor 
shall notify the Federal Government and the State in which the 
sponsored alien is currently resident within 30 days of any change of 
address of the sponsor during the period specified in subsection 
(a)(1).</DELETED>
<DELETED>    ``(2) Any person subject to the requirement of paragraph 
(1) who fails to satisfy such requirement shall be subject to a civil 
penalty of--</DELETED>
        <DELETED>    ``(A) not less than $250 or more than $2,000, 
        or</DELETED>
        <DELETED>    ``(B) if such failure occurs with knowledge that 
        the sponsored alien has received any benefit under any means-
        tested public benefits program, not less than $2,000 or more 
        than $5,000.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Definitions.--For the purposes of this section--
</DELETED>
        <DELETED>    ``(1) Sponsor.--The term `sponsor' means an 
        individual who--</DELETED>
                <DELETED>    ``(A) is a citizen or national of the 
                United States or an alien who is lawfully admitted to 
                the United States for permanent residence;</DELETED>
                <DELETED>    ``(B) is 18 years of age or over; 
                and</DELETED>
                <DELETED>    ``(C) is domiciled in any State.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of contents of such Act 
is amended by inserting after the item relating to section 213 the 
following:</DELETED>

<DELETED>``Sec. 213A. Requirements for sponsor's affidavit of 
                            support.''.
<DELETED>    (c) Effective Date.--Subsection (a) of section 213A of the 
Immigration and Nationality Act, as inserted by subsection (a) of this 
section, shall apply to affidavits of support executed on or after a 
date specified by the Attorney General, which date shall be not earlier 
than 60 days (and not later than 90 days) after the date the Attorney 
General formulates the form for such affidavits under subsection (b) of 
such section.</DELETED>

           <DELETED>Subtitle D--General Provisions</DELETED>

<DELETED>SEC. 431. DEFINITIONS.</DELETED>

<DELETED>    (a) In General.--Except as otherwise provided in this 
section, the terms used in this title have the same meaning given such 
terms in section 101(a) of the Immigration and Nationality 
Act.</DELETED>
<DELETED>    (b) Lawful Presence.--For purposes of this title, the 
determination of whether an alien is lawfully present in the United 
States shall be made in accordance with regulations of the Attorney 
General. An alien shall not be considered to be lawfully present in the 
United States for purposes of this title merely because the alien may 
be considered to be permanently residing in the United States under 
color of law for purposes of any particular program.</DELETED>
<DELETED>    (c) State.--As used in this title, the term ``State'' 
includes the District of Columbia, Puerto Rico, the Virgin Islands, 
Guam, the Northern Mariana Islands, and American Samoa.</DELETED>
<DELETED>    (d) Public Benefits Programs.--As used in this title--
</DELETED>
        <DELETED>    (1) Means-tested program.--The term ``means-tested 
        public benefits program'' means a program of public benefits 
        (including cash, medical, housing, and food assistance and 
        social services) of the Federal Government or of a State or 
        political subdivision of a State in which the eligibility of an 
        individual, household, or family eligibility unit for benefits 
        under the program, or the amount of such benefits, or both are 
        determined on the basis of income, resources, or financial need 
        of the individual, household, or unit.</DELETED>
        <DELETED>    (2) Federal means-tested public benefits 
        program.--The term ``Federal means-tested public benefits 
        program'' means a means-tested public benefits program of (or 
        contributed to by) the Federal Government and under which the 
        Federal Government has specified standards for eligibility and 
        includes the programs specified in section 403(a).</DELETED>
        <DELETED>    (3) State means-tested public benefits program.--
        The term ``State means-tested public benefits program'' means a 
        means-tested public benefits program of a State or political 
        subdivision of a State under which the State or political 
        subdivision specifies the standards for eligibility, and does 
        not include any Federal means-tested public benefits 
        program.</DELETED>
<DELETED>SEC. 432. CONSTRUCTION.</DELETED>

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

          <DELETED>Subtitle E--Conforming Amendments</DELETED>
<DELETED>SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED 
              HOUSING.</DELETED>

<DELETED>    (a) Limitations on Assistance.--Section 214 of the Housing 
and Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
</DELETED>
        <DELETED>    (1) by striking ``Secretary of Housing and Urban 
        Development'' each place it appears and inserting ``applicable 
        Secretary'';</DELETED>
        <DELETED>    (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,'';</DELETED>
        <DELETED>    (3) in paragraphs (2) through (6) of subsection 
        (d), by striking ``Secretary'' each place it appears and 
        inserting ``applicable Secretary'';</DELETED>
        <DELETED>    (4) in subsection (d), in the matter following 
        paragraph (6), by striking ``the term `Secretary''' and 
        inserting ``the term `applicable Secretary'''; and</DELETED>
        <DELETED>    (5) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(h) For purposes of this section, the term `applicable 
Secretary' means--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) the Secretary of Agriculture, with respect 
        to financial assistance administered by such 
        Secretary.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--Section 501(h) of the Housing 
Act of 1949 (42 U.S.C. 1471(h)) is amended--</DELETED>
        <DELETED>    (1) by striking ``(1)'';</DELETED>
        <DELETED>    (2) by striking ``by the Secretary of Housing and 
        Urban Development''; and</DELETED>
        <DELETED>    (3) by striking paragraph (2).</DELETED>
           <DELETED>TITLE V--FOOD STAMP REFORM AND COMMODITY 
                         DISTRIBUTION</DELETED>

<DELETED>SEC. 501. SHORT TITLE.</DELETED>

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

    <DELETED>Subtitle A--Commodity Distribution Provisions</DELETED>

<DELETED>SEC. 511. SHORT TITLE.</DELETED>

<DELETED>    This subtitle may be cited as the ``Commodity Distribution 
Act of 1995''.</DELETED>

<DELETED>SEC. 512. AVAILABILITY OF COMMODITIES.</DELETED>

<DELETED>    (a) Notwithstanding any other provision of law, the 
Secretary of Agriculture (hereinafter in this subtitle referred to as 
the ``Secretary'') is authorized during fiscal years 1996 through 2000 
to purchase a variety of nutritious and useful commodities and 
distribute such commodities to the States for distribution in 
accordance with this subtitle.</DELETED>
<DELETED>    (b) In addition to the commodities described in subsection 
(a), the Secretary may expend funds made available to carry out section 
32 of the Act of August 24, 1935 (7 U.S.C. 612c), which are not 
expended or needed to carry out such sections, to purchase, process, 
and distribute commodities of the types customarily purchased under 
such section to the States for distribution in accordance with this 
subtitle.</DELETED>
<DELETED>    (c) In addition to the commodities described in 
subsections (a) and (b), agricultural commodities and the products 
thereof made available under clause (2) of the second sentence of 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), may be made 
available by the Secretary to the States for distribution in accordance 
with this subtitle.</DELETED>
<DELETED>    (d) In addition to the commodities described in 
subsections (a), (b), and (c), commodities acquired by the Commodity 
Credit Corporation that the Secretary determines, in the discretion of 
the Secretary, are in excess of quantities need to--</DELETED>
        <DELETED>    (1) carry out other domestic donation 
        programs;</DELETED>
        <DELETED>    (2) meet other domestic obligations;</DELETED>
        <DELETED>    (3) meet international market development and food 
        aid commitments; and</DELETED>
        <DELETED>    (4) carry out the farm price and income 
        stabilization purposes of the Agricultural Adjustment Act of 
        1938, the Agricultural Act of 1949, and the Commodity Credit 
        Corporation Charter Act;</DELETED>
<DELETED>shall be made available by the Secretary, without charge or 
credit for such commodities, to the States for distribution in 
accordance with this subtitle.</DELETED>
<DELETED>    (e) During each fiscal year, the types, varieties, and 
amounts of commodities to be purchased under this subtitle shall be 
determined by the Secretary. In purchasing such commodities, except 
those commodities purchased pursuant to section 520, the Secretary 
shall, to the extent practicable and appropriate, make purchases based 
on--</DELETED>
        <DELETED>    (1) agricultural market conditions;</DELETED>
        <DELETED>    (2) the preferences and needs of States and 
        distributing agencies; and</DELETED>
        <DELETED>    (3) the preferences of the recipients.</DELETED>
<DELETED>SEC. 513. STATE, LOCAL AND PRIVATE SUPPLEMENTATION OF 
              COMMODITIES.</DELETED>

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

<DELETED>SEC. 514. STATE PLAN.</DELETED>

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

<DELETED>SEC. 515. ALLOCATION OF COMMODITIES TO STATES.</DELETED>

<DELETED>    (a) In each fiscal year, except for those commodities 
purchased under section 520, the Secretary shall allocate the 
commodities distributed under this subtitle as follows:</DELETED>
        <DELETED>    (1) 60 percent of the such total value of 
        commodities shall be allocated in a manner such that the value 
        of commodities allocated to each State bears the same ratio to 
        60 percent of such total value as the number of persons in 
        households within the State having incomes below the poverty 
        line bears to the total number of persons in households within 
        all States having incomes below such poverty line. Each State 
        shall receive the value of commodities allocated under this 
        paragraph.</DELETED>
        <DELETED>    (2) 40 percent of such total value of commodities 
        shall be allocated in a manner such that the value of 
        commodities allocated to each State bears the same ratio to 40 
        percent of such total value as the average monthly number of 
        unemployed persons within the State bears to the average 
        monthly number of unemployed persons within all States during 
        the same fiscal year. Each State shall receive the value of 
        commodities allocated to the State under this 
        paragraph.</DELETED>
<DELETED>    (b)(1) The Secretary shall notify each State of the amount 
of commodities that such State is allotted to receive under subsection 
(a) or this subsection, if applicable. Each State shall promptly notify 
the Secretary if such State determines that it will not accept any or 
all of the commodities made available under such allocation. On such a 
notification by a State, the Secretary shall reallocate and distribute 
such commodities as the Secretary deems appropriate and equitable. The 
Secretary shall further establish procedures to permit States to 
decline to receive portions of such allocation during each fiscal year 
as the State determines is appropriate and the Secretary shall 
reallocate and distribute such allocation as the Secretary deems 
appropriate and equitable.</DELETED>
<DELETED>    (2) In the event of any drought, flood, hurricane, or 
other natural disaster affecting substantial numbers of persons in a 
State, county, or parish, the Secretary may request that States 
unaffected by such a disaster consider assisting affected States by 
allowing the Secretary to reallocate commodities from such unaffected 
State to States containing areas adversely affected by the 
disaster.</DELETED>
<DELETED>    (c) Purchases of commodities under this subtitle shall be 
made by the Secretary at such times and under such conditions as the 
Secretary determines appropriate within each fiscal year. All 
commodities so purchased for each such fiscal year shall be delivered 
at reasonable intervals to States based on the allocations and 
reallocations made under subsections (a) and (b), and or carry out 
section 520, not later than December 31 of the following fiscal 
year.</DELETED>
<DELETED>SEC. 516. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF 
              COMMODITIES.</DELETED>

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

<DELETED>SEC. 517. INITIAL PROCESSING COSTS.</DELETED>

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

<DELETED>SEC. 518. ASSURANCES; ANTICIPATED USE.</DELETED>

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

<DELETED>SEC. 519. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

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

<DELETED>SEC. 520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.</DELETED>

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

<DELETED>SEC. 521. COMMODITIES NOT INCOME.</DELETED>

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

<DELETED>SEC. 522. PROHIBITION AGAINST CERTAIN STATE CHARGES.</DELETED>

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

<DELETED>SEC. 523. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 524. REGULATIONS.</DELETED>

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

<DELETED>SEC. 525. FINALITY OF DETERMINATIONS.</DELETED>

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

<DELETED>SEC. 526. SALE OF COMMODITIES PROHIBITED.</DELETED>

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

<DELETED>SEC. 527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.</DELETED>

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

<DELETED>SEC. 528. REPEALERS; AMENDMENTS.</DELETED>

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

     <DELETED>Subtitle B--Simplification and Reform of Food Stamp 
                           Program</DELETED>

<DELETED>SEC. 531. SHORT TITLE.</DELETED>

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

<DELETED>CHAPTER 1--SIMPLIFIED FOOD STAMP PROGRAM AND STATE ASSISTANCE 
                      FOR NEEDY FAMILIES</DELETED>

<DELETED>SEC. 541. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP 
              PROGRAM.</DELETED>

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

<DELETED>SEC. 542. SIMPLIFIED FOOD STAMP PROGRAM.</DELETED>

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

<DELETED>``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.</DELETED>

<DELETED>    ``(a) If a State elects to operate a program under section 
4(a)(2) within the State or any political subdivision within the 
State--</DELETED>
        <DELETED>    ``(1) households in which all members receive 
        regular cash benefits under the program established by the 
        State under the Temporary Assistance for Needy Families Block 
        Grant shall be automatically eligible to participate in the 
        food stamp program; and</DELETED>
        <DELETED>    ``(2) benefits under such program shall be 
        determined under the rules and procedures established by the 
        State or political subdivision under the Temporary Assistance 
        for Needy Families Block Grant or under the food stamp program, 
        subject to subsection (g).</DELETED>
<DELETED>    ``(b) In approving a State plan to carry out a program 
under section 4(a)(2), the Secretary shall certify that the average 
level of food stamp benefits per household participating in the program 
under such section for the State or political subdivision in which such 
program is in operation is not expected to exceed the average level of 
food stamp benefits per household that received benefits under the 
program established by a State under part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) in such area in the preceding 
fiscal year, adjusted for any changes in the thrifty food plan under 
section 3(o). The Secretary shall compute the permissible average level 
of food stamp benefits per household each year for each State or 
political subdivision in which such program is in operation and may 
require a State to report any information necessary to make such 
computation.</DELETED>
<DELETED>    ``(c) When the Secretary determines that the average level 
of food stamp benefits per household provided by the State or political 
subdivision under such program has exceeded the permissible average 
level of food stamp benefits per household for the State or political 
subdivision in which the program was in operation, the State or 
political subdivision shall pay to the Treasury of the United States 
the value of the food stamp benefits in excess of the permissible 
average level of food stamp benefits per household in the State or 
political subdivision within 90 days after the notification of such 
excess payments.</DELETED>
<DELETED>    ``(d)(1) A household against which a penalty is imposed 
(including a reduction in benefits or disqualification) for 
noncompliance with the program established by the State under the 
Temporary Assistance for Needy Families Block Grant may have the same 
penalty imposed against it (including a reduction in benefits or 
disqualification) in the program administered under this 
section.</DELETED>
<DELETED>    ``(2) If the penalty for noncompliance with the program 
established by the State under the Temporary Assistance for Needy 
Families block grant is a reduction in benefits in such program, the 
household shall not receive an increased allotment under the program 
administered under this section as a result of a decrease in the 
household's income (as determined by the State under this section) 
caused by such penalty.</DELETED>
<DELETED>    ``(3) Any household disqualified from the program 
administered under this subsection may, after such disqualification 
period has expired, apply for food stamp benefits under this Act and 
shall be treated as a new applicant.</DELETED>
<DELETED>    ``(e) If a State or political subdivision, at its option, 
operates a program under section 4(a)(2) for households that include 
any member who does not receive regular cash benefits under the program 
established by the State under the Temporary Assistance for Needy 
Families Block Grant, the Secretary shall ensure that the State plan 
provides that household eligibility shall be determined under this Act, 
benefits may be determined under the rules and procedures established 
by the State under the Temporary Assistance for Needy Families Block 
Grant or this Act, and benefits provided under this section shall be 
equitably distributed among all household members.</DELETED>
<DELETED>    ``(f)(1) Under the program operated under section 4(a)(2), 
the State may elect to provide cash assistance in lieu of allotments to 
all households that include a member who is employed and whose 
employment produces for the benefit of the member's household income 
that satisfies the requirements of paragraph (2).</DELETED>
<DELETED>    ``(2) The State, in electing to provide cash assistance 
under paragraph (1), at a minimum shall require that such earned income 
is--</DELETED>
        <DELETED>    ``(A) not less that $350 per month;</DELETED>
        <DELETED>    ``(B) earned from employment provided by a 
        nongovernmental employer, as determined by the State; 
        and</DELETED>
        <DELETED>    ``(C) received from the same employer for a period 
        of employment of not less than 3 consecutive months.</DELETED>
<DELETED>    ``(3) If a State that makes the election described in 
paragraph (1) identifies each household that receives cash assistance 
under this subsection--</DELETED>
        <DELETED>    ``(A) the Secretary shall pay to the State an 
        amount equal to the value of the allotment that such household 
        would be eligible to receive under this section but for the 
        operation of this subsection;</DELETED>
        <DELETED>    ``(B) the State shall provide such amount to the 
        household as cash assistance in lieu of such allotment; 
        and</DELETED>
        <DELETED>    ``(C) for purposes of the food stamp program 
        (other than this section and section 4(a)(2))--</DELETED>
                <DELETED>    ``(i) such cash assistance shall be 
                considered to be an allotment; and</DELETED>
                <DELETED>    ``(ii) such household shall not receive 
                any other food stamp benefit for the period for which 
                such cash assistance is provided.</DELETED>
<DELETED>    ``(4) A State that makes the election in paragraph (1) 
shall--</DELETED>
        <DELETED>    ``(A) increase the cash benefits provided to 
        households under this subsection to compensate for any State or 
        local sales tax that may be collected on purchases of food by 
        any household receiving cash benefits under this subsection, 
        unless the Secretary determines on the basis of information 
        provided by the State that the increase is unnecessary on the 
        basis of the limited nature of the items subject to the State 
        or local sales tax; and</DELETED>
        <DELETED>    ``(B) pay the cost of any increase in cash 
        benefits required by paragraph (1).</DELETED>
<DELETED>    ``(5) After a State operates a program under this 
subsection for 2 years, the State shall provide to the Secretary a 
written evaluation of the impact of cash assistance.</DELETED>
<DELETED>    ``(g) In operating a program under section 4(a)(2), the 
State or political subdivision may follow the rules and procedures 
established by the State or political subdivision under the Temporary 
Assistance for Needy Families Block Grant or under the food stamp 
program, except that the State or political subdivision shall comply 
with the requirements of--</DELETED>
        <DELETED>    ``(1) subsections (a) through (g) of section 7 
        (relating to the issuance and use of coupons);</DELETED>
        <DELETED>    ``(2) section 8(a) (relating to the value of 
        allotments, except that a household's income may be determined 
        under the program established by the State under the Temporary 
        Assistance for Needy Families Block Grant);</DELETED>
        <DELETED>    ``(3) section 8(b) (allotment not considered 
        income or resources);</DELETED>
        <DELETED>    ``(4) subsections (a), (c), (d), and (n) of 
        section 11 (relating to administration);</DELETED>
        <DELETED>    ``(5) paragraphs (8), (12), (17), (19), (21), 
        (26), and (27) of section 11(e) (relating to the State 
        plan);</DELETED>
        <DELETED>    ``(6) section 11(e)(10) (relating to a fair 
        hearing) or a comparable requirement established by the State 
        under the Temporary Assistance for Needy Families Block Grant; 
        and</DELETED>
        <DELETED>    ``(7) section 16 (relating to administrative cost-
        sharing and quality control).''.</DELETED>
<DELETED>    (b) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (24), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (25), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(26) the plans of the State agency for 
        operating, at the election of the State, a program under 
        section 4(a)(2), including--</DELETED>
                <DELETED>    ``(A) the rules and procedures to be 
                followed by the State to determine food stamp 
                benefits;</DELETED>
                <DELETED>    ``(B) a statement specifying whether the 
                program operated by the State under section 4(a)(2) 
                will include households that include members who do not 
                receive regular cash benefits under the program 
                established by the State under the Temporary Assistance 
                for Needy Families Block Grant; and</DELETED>
                <DELETED>    ``(C) a description of the method by which 
                the State or political subdivision will carry out a 
                quality control system under section 
                16(c).''.</DELETED>

<DELETED>SEC. 543. CONFORMING AMENDMENTS.</DELETED>

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

<DELETED>SEC. 551. THRIFTY FOOD PLAN.</DELETED>

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

<DELETED>SEC. 552. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.</DELETED>

<DELETED>    (a) Section 5(d)(11) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)(11)) is amended--</DELETED>
        <DELETED>    (1) by striking ``(A)''; and</DELETED>
        <DELETED>    (2) by striking ``or (B) under any State or local 
        laws,'' and all that follows through ``or impracticable to do 
        so,''.</DELETED>
<DELETED>    (b) Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)) is amended to read as follows:</DELETED>
<DELETED>    ``(e)(1) Deductions for Standard and Earned Income.--
</DELETED>
        <DELETED>    ``(A) In computing household income, the Secretary 
        shall allow a standard deduction of $134 a month for each 
        household, except that households in Alaska, Hawaii, Guam, and 
        the Virgin Islands of the United States shall be allowed a 
        standard deduction of $229, $189, $269, and $118, 
        respectively.</DELETED>
        <DELETED>    ``(B) All households with earned income shall also 
        be allowed an additional deduction of 20 percent of all earned 
        income (other than that excluded by subsection (d) of this 
        section and that earned under section 16(j)), to compensate for 
        taxes, other mandatory deductions from salary, and work 
        expenses, except that such additional deduction shall not be 
        allowed with respect to earned income that a household 
        willfully or fraudulently fails (as proven in a proceeding 
        provided for in section 6(b)) to report in a timely 
        manner.</DELETED>
<DELETED>    ``(2) Dependent Care Deduction.--The Secretary shall allow 
households a deduction with respect to expenses other than expenses 
paid on behalf of the household by a third party or amounts made 
available and excluded for the expenses under subsection (d)(3), the 
maximum allowable level of which shall be $200 a month for each 
dependent child under 2 years of age and $175 a month for each other 
dependent, for the actual cost of payments necessary for the care of a 
dependent when such care enables a household member to accept or 
continue employment, or training or education which is preparatory for 
employment.</DELETED>
<DELETED>    ``(3) Excess Shelter Expense Deduction.--</DELETED>
        <DELETED>    ``(A) The Secretary shall allow households, other 
        than those households containing an elderly or disabled member, 
        with respect to expenses other than expenses paid on behalf of 
        the household by a third party, an excess shelter expense 
        deduction to the extent that the monthly amount expended by a 
        household for shelter exceeds an amount equal to 50 percent of 
        monthly household income after all other applicable deductions 
        have been allowed.</DELETED>
        <DELETED>    ``(B) Such excess shelter expense deduction shall 
        not exceed $231 a month in the 48 contiguous States and the 
        District of Columbia, and shall not exceed, in Alaska, Hawaii, 
        Guam, and the Virgin Islands of the United States, $402, $330, 
        $280, and $171 a month, respectively.</DELETED>
        <DELETED>    ``(C)(i) Notwithstanding section 2605(f) of the 
        Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
        8624(f)), a household may not claim as a shelter expense any 
        payment received, or costs paid on its behalf, under the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et 
        seq.).</DELETED>
        <DELETED>    ``(ii) Notwithstanding section 2605(f) of the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)), 
        a State agency may use a standard utility allowance as provided 
        under subparagraph (D) for heating and cooling expenses only if 
        the household incurs out-of-pocket heating or cooling expenses 
        in excess of any payment received, or costs paid on its behalf, 
        under the Low-Income Home Energy Assistance Act of 1981 (42 
        U.S.C. 8621 et seq.).</DELETED>
        <DELETED>    ``(iii) For purposes of the food stamp program, 
        assistance provided under the Low-Income Home Energy Assistance 
        Act of 1981 shall be considered to be prorated over the entire 
        heating or cooling season for which it was provided.</DELETED>
        <DELETED>    ``(iv) At the end of any certification period and 
        up to one additional time during each twelve-month period, a 
        State agency shall allow a household to switch between any 
        standard utility allowance and a deduction based on its actual 
        utility costs.</DELETED>
        <DELETED>    ``(D)(i) In computing the excess shelter expense 
        deduction, a State agency may use a standard utility allowance 
        in accordance with regulations promulgated by the Secretary, 
        except that a State agency may use an allowance which does not 
        fluctuate within a year to reflect seasonal 
        variations.</DELETED>
        <DELETED>    ``(ii) An allowance for a heating or cooling 
        expense may not be used for a household that does not incur a 
        heating or cooling expense, as the case may be, or does incur a 
        heating or cooling expense but is located in a public housing 
        unit which has central utility meters and charges households, 
        with regard to such expense, only for excess utility 
        costs.</DELETED>
        <DELETED>    ``(iii) No such allowance may be used for a 
        household that shares such expense with, and lives with, 
        another individual not participating in the food stamp program, 
        another household participating in the food stamp program, or 
        both, unless the allowance is prorated between the household 
        and the other individual, household, or both.</DELETED>
<DELETED>    ``(4) Homeless Shelter Deduction.--(A) A State shall 
develop a standard homeless shelter deduction, which shall not exceed 
$139 a month, for the expenses that may reasonably be expected to be 
incurred by households in which all members are homeless but are not 
receiving free shelter throughout the month. Subject to subparagraph 
(B), the State shall use such deduction in determining eligibility and 
allotments for such households.</DELETED>
<DELETED>    ``(B) The Secretary may prohibit the use of the standard 
homeless shelter deduction for households with extremely low shelter 
costs.</DELETED>
<DELETED>    ``(5) Elderly and Disabled Households.--</DELETED>
        <DELETED>    ``(A) The Secretary shall allow households 
        containing an elderly or disabled member, with respect to 
        expenses other than expenses paid on behalf of the household by 
        a third party--</DELETED>
                <DELETED>    ``(i) an excess medical expense deduction 
                for that portion of the actual cost of allowable 
                medical expenses, incurred by elderly or disabled 
                members, exclusive of special diets, that exceed $35 a 
                month; and</DELETED>
                <DELETED>    ``(ii) an excess shelter expense deduction 
                to the extent that the monthly amount expended by a 
                household for shelter exceeds an amount equal to 50 
                percent of monthly household income after all other 
                applicable deductions have been allowed.</DELETED>
        <DELETED>    ``(B) State agencies shall offer eligible 
        households a method of claiming a deduction for recurring 
        medical expenses that are initially verified under the excess 
        medical expense deduction provided for in subparagraph (A), in 
        lieu of submitting information or verification on actual 
        expenses on a monthly basis. The method described in the 
        preceding sentence shall be designed to minimize the 
        administrative burden for eligible elderly and disabled 
        household members choosing to deduct their recurrent medical 
        expenses pursuant to such method, shall rely on reasonable 
        estimates of the member's expected medical expenses for the 
        certification period (including changes that can be reasonably 
        anticipated based on available information about the member's 
        medical condition, public or private medical insurance 
        coverage, and the current verified medical expenses incurred by 
        the member), and shall not require further reporting or 
        verification of a change in medical expenses if such a change 
        has been anticipated for the certification period.</DELETED>
<DELETED>    ``(6) Child Support Deduction.--Before determining the 
excess shelter expense deduction, the Secretary shall allow all 
households a deduction for child support payments made by a household 
member to or for an individual who is not a member of the household if 
such household member was legally obligated to make such payments, 
except that the Secretary is authorized to prescribe by regulation the 
methods, including calculation on a retrospective basis, that State 
agencies shall use to determine the amount of the deduction for child 
support payments.''.</DELETED>
<DELETED>    (c) Section 11(e)(3) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)(3)) is amended by striking ``Under the rules prescribed 
by the Secretary, a State agency shall develop standard estimates'' and 
all that follows through the end of the paragraph.</DELETED>

<DELETED>SEC. 553. VEHICLE ALLOWANCE.</DELETED>

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

<DELETED>SEC. 554. WORK REQUIREMENTS.</DELETED>

<DELETED>    (a) Section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(d)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(A)(ii), by striking ``an 
        employment and training program under paragraph (4), to the 
        extent required under paragraph (4), including any reasonable 
        employment requirements as are prescribed by the State agency 
        in accordance with paragraph (4)'' and inserting ``a State job 
        search program'';</DELETED>
        <DELETED>    (2) in paragraph (2)(A)--</DELETED>
                <DELETED>    (A) by striking ``title IV of the Social 
                Security Act (42 U.S.C. 602)'' and inserting ``the 
                program established by the State under the Temporary 
                Assistance for Needy Families Block Grant''; 
                and</DELETED>
                <DELETED>    (B) by striking ``that is comparable to a 
                requirement of paragraph (1)''; and</DELETED>
        <DELETED>    (3) by amending paragraph (4) to read as 
        follows:</DELETED>
<DELETED>    ``(4)(A) Except as provided in subparagraphs (B), (C), and 
(D), an individual shall not be denied initial eligibility but shall be 
disqualified from the food stamp program if after 90 days from the 
certification of eligibility of such individual the individual was not 
employed a minimum of 20 hours per week, or does not participate in a 
program established under section 20 or a comparable program 
established by the State or local government.</DELETED>
<DELETED>    ``(B) Subparagraph (A) shall not apply in the case of an 
individual who--</DELETED>
        <DELETED>    ``(i) is under eighteen or over fifty years of 
        age;</DELETED>
        <DELETED>    ``(ii) is certified by a physician as physically 
        or mentally unfit for employment;</DELETED>
        <DELETED>    ``(iii) is a parent or other member of a household 
        with responsibility for the care of a dependent;</DELETED>
        <DELETED>    ``(iv) is participating a minimum of 20 hours per 
        week and is in compliance with the requirements of--</DELETED>
                <DELETED>    ``(I) a program under the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.);</DELETED>
                <DELETED>    ``(II) a program under section 236 of the 
                Trade Act of 1974 (19 U.S.C. 2296); or</DELETED>
                <DELETED>    ``(III) a program of employment or 
                training operated or supervised by an agency of State 
                or local government which meets standards deemed 
                appropriate by the Governor; or</DELETED>
        <DELETED>    ``(v) would otherwise be exempt under subsection 
        (d)(2).</DELETED>
<DELETED>    ``(C) Upon request of the State, the Secretary may waive 
the requirements of subparagraph (A) in the case of some or all 
individuals within all or part of the State if the Secretary makes a 
determination that such area--</DELETED>
        <DELETED>    ``(i) has an unemployment rate of over 10 percent; 
        or</DELETED>
        <DELETED>    ``(ii) does not have a sufficient number of jobs 
        to provide employment for individuals subject to this 
        paragraph. The Secretary shall report to the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate on the 
        basis on which the Secretary made such a decision.</DELETED>
<DELETED>    ``(D) An individual who has been disqualified from the 
food stamp program under subparagraph (A) may reestablish eligibility 
for assistance if such person becomes exempt under subparagraph (B) or 
by--</DELETED>
        <DELETED>    ``(i) becoming employed for a minimum of 20 hours 
        per week during any consecutive thirty-day period; or</DELETED>
        <DELETED>    ``(ii) participating in a program established 
        under section 20 or a comparable program established by the 
        State or local government.''.</DELETED>
<DELETED>    (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
2025) is amended--</DELETED>
        <DELETED>    (1) by striking subsection (h); and</DELETED>
        <DELETED>    (2) by redesignating subsections (i) and (j) as 
        subsections (h) and (i), respectively.</DELETED>
<DELETED>    (c) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
2026), as amended by section 543(b), is amended--</DELETED>
        <DELETED>    (1) by striking subsection (d); and</DELETED>
        <DELETED>    (2) by redesignating subsections (e) through (k) 
        as subsections (d) through (j), respectively.</DELETED>
<DELETED>    (d) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 
2029) is amended to read as follows:</DELETED>
<DELETED>    ``Sec. 20. (a)(1) The Secretary shall permit a State that 
applies and submits a plan in compliance with guidelines promulgated by 
the Secretary to operate a program within the State or any political 
subdivision within the State, under which persons who are required to 
work under section 6(d)(4) may accept an offer from the State or 
political subdivision to perform work on its behalf, or on behalf of a 
private nonprofit entity designated by the State or political 
subdivision, in order to continue to qualify for benefits after they 
have initially been judged eligible.</DELETED>
<DELETED>    ``(2) The Secretary shall promulgate guidelines pursuant 
to paragraph (1) which, to the maximum extent practicable, enable a 
State or political subdivision to design and operate a program that is 
compatible and consistent with similar programs operated by the State 
or political subdivision.</DELETED>
<DELETED>    ``(b) To be approved by the Secretary, a program shall 
provide that participants work, in return for compensation consisting 
of the allotment to which the household is entitled under section 8(a), 
with each hour of such work entitling that household to a portion of 
its allotment equal in value to 100 percent of the higher of the 
applicable State minimum wage or the Federal minimum hourly rate under 
the Fair Labor Standards Act of 1938.</DELETED>
<DELETED>    ``(c) No State or political subdivision that receives 
funds provided under this section shall replace any employed worker 
with an individual who is participating in a program under this section 
for the purposes of complying with section 6(d)(4). Such an individual 
may be placed in any position offered by the State or political 
subdivision that--</DELETED>
        <DELETED>    ``(1) is a new position;</DELETED>
        <DELETED>    ``(2) is a position that became available in the 
        normal course of conducting the business of the State or 
        political subdivision;</DELETED>
        <DELETED>    ``(3) involves performing work that would 
        otherwise be performed on an overtime basis by a worker who is 
        not an individual participating in such program; or</DELETED>
        <DELETED>    ``(4) that is a position which became available by 
        shifting a current employee to an alternate position.</DELETED>
<DELETED>    ``(d) The Secretary shall allocate among the States or 
political subdivisions in each fiscal year, from funds appropriated for 
the fiscal year under section 18(a)(1), the amount of $75,000,000 to 
assist in carrying out the program under this section during the fiscal 
year.</DELETED>
<DELETED>    ``(e)(1) In making the allocation required under 
subsection (d), the Secretary shall allocate to each State operating a 
program under this section that percentage of the total funds allocated 
under subsection (d) which equals the estimate of the Secretary of the 
percentage of participants who are required to work under section 
6(d)(4) that reside in such State.</DELETED>
<DELETED>    ``(2) The State shall promptly notify the Secretary if 
such State determines that it will not expend the funds allocated it 
under paragraph (1) and the Secretary shall reallocate such funds as 
the Secretary deems appropriate and equitable.</DELETED>
<DELETED>    ``(f) Notwithstanding subsection (d), the Secretary shall 
ensure that each State operating a program under this section is 
allocated at least $50,000 by reducing, to the extent necessary, the 
funds allocated to those States allocated more than $50,000.</DELETED>
<DELETED>    ``(g) If, in carrying out such program during such fiscal 
year, a State or political subdivision incurs costs that exceed the 
amount allocated to the State agency under subsection (d)--</DELETED>
        <DELETED>    ``(1) the Secretary shall pay such State agency an 
        amount equal to 50 percent of such additional costs, subject to 
        the first limitation in paragraph (2); and</DELETED>
        <DELETED>    ``(2) the Secretary shall also reimburse each 
        State agency in an amount equal to 50 percent of the total 
        amount of payments made or costs incurred by the State or 
        political subdivision in connection with transportation costs 
        and other expenses reasonably necessary and directly related to 
        participation in a program under this section, except that such 
        total amount shall not exceed an amount representing $25 per 
        participant per month for costs of transportation and other 
        actual costs and such reimbursement shall not be made out of 
        funds allocated under subsection (d).</DELETED>
<DELETED>    ``(h) The Secretary may suspend or cancel some or all of 
these payments, or may withdraw approval from a State or political 
subdivision to operate a program, upon a finding that the State or 
political subdivision has failed to comply with the requirements of 
this section.''.</DELETED>
<DELETED>    (e) Section 7(i)(6) of the Food Stamp Act of 1977 (7 
U.S.C. 2016(i)(6)) is amended by striking ``section 17(f)'' and 
inserting ``section 17(e)''.</DELETED>

<DELETED>SEC. 555. COMPARABLE TREATMENT OF DISQUALIFIED 
              INDIVIDUALS.</DELETED>

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

<DELETED>SEC. 556. ENCOURAGE ELECTRONIC BENEFIT TRANSFER 
              SYSTEMS.</DELETED>

<DELETED>    (a) Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 
2016(i)) is amended--</DELETED>
        <DELETED>    (1) by amending paragraph (1) to read as 
        follows:</DELETED>
<DELETED>    ``(1)(A) State agencies are encouraged to implement an on-
line electronic benefit transfer system in which household benefits 
determined under section 8(a) or section 24 are issued from and stored 
in a central data bank and electronically accessed by household members 
at the point-of-sale.</DELETED>
<DELETED>    ``(B) Subject to paragraph (2), a State is authorized to 
procure and implement an on-line electronic benefit transfer system 
under the terms, conditions, and design that the State deems 
appropriate, except that each electronic benefit transfer card shall 
bear a photograph of the members of the household to which such card is 
issued.</DELETED>
<DELETED>    ``(C) Upon request of a State, the Secretary may waive any 
provision of this Act prohibiting the effective implementation of an 
electronic benefit transfer system under this subsection.'';</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``effective no later than 
                April 1, 1992,'';</DELETED>
                <DELETED>    (B) by striking ``the approval 
                of'';</DELETED>
                <DELETED>    (C) in subparagraph (A) by striking ``, in 
                any 1 year,''; and</DELETED>
                <DELETED>    (D) by amending subparagraph (D) to read 
                as follows:</DELETED>
        <DELETED>    ``(D)(i) measures to maximize the security of such 
        system using the most recent technology available that the 
        State considers appropriate and cost-effective and which may 
        include (but is not limited to) personal identification numbers 
        (PIN), photographic identification on electronic benefit 
        transfer cards, and other measures to protect against fraud and 
        abuse; and</DELETED>
        <DELETED>    ``(ii) effective not later than 2 years after the 
        date of the enactment of the Personal Responsibility Act of 
        1995, measures that permit such 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.''; 
        and</DELETED>
        <DELETED>    (3) in paragraph (3), by striking ``the Secretary 
        shall not approve such a system unless--'' and inserting ``such 
        system shall provide that--''.</DELETED>
<DELETED>    (b) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as 
amended by section 542(a), is amended by adding at the end the 
following new section:</DELETED>

<DELETED>``SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER 
              SYSTEMS.</DELETED>

<DELETED>    ``(a) Upon fully implementing an electronic benefit 
transfer system which operates in the entire State, a State may, 
subject to the provisions of this section, elect to receive a grant for 
any fiscal year to operate a low-income nutrition assistance program in 
such fiscal year in lieu of the food stamp program.</DELETED>
<DELETED>    ``(b)(1) A State that meets the requirements of this 
section and elects to operate such program, shall receive each fiscal 
year under this section the sum of--</DELETED>
        <DELETED>    ``(A)(i) the total dollar value of all benefits 
        issued under the food stamp program by the State during fiscal 
        year 1994; or</DELETED>
        <DELETED>    ``(ii) the average per fiscal year of the total 
        dollar value of all benefits issued under the food stamp 
        program by the State during fiscal years 1992 through 1994; 
        and</DELETED>
        <DELETED>    ``(B)(i) the total amount received by the State 
        for administrative costs under section 16(a) for fiscal year 
        1994; or</DELETED>
        <DELETED>    ``(ii) the average per fiscal year of the total 
        amount received by the State for administrative costs under 
        section 16(a) for fiscal years 1992 through 1994.</DELETED>
<DELETED>    ``(2) Upon approval by the Secretary of the plan submitted 
by a State under subsection (c), the Secretary shall pay to the State 
at such times and in such manner as the Secretary may determine, the 
amount to which the State is eligible under subsection 
(b)(1).</DELETED>
<DELETED>    ``(c) To be eligible to operate a low-income nutrition 
assistance program under this section, a State shall submit for 
approval each fiscal year a plan of operation specifying the manner in 
which such a program will be conducted by the State. Such plan shall--
</DELETED>
        <DELETED>    ``(1) certify that the State has implemented a 
        state-wide electronic benefit transfer system in accordance 
        with section 7(i);</DELETED>
        <DELETED>    ``(2) designate a single State agency responsible 
        for the administration of the low-income nutrition assistance 
        program under this section;</DELETED>
        <DELETED>    ``(3) assess the food and nutrition needs of needy 
        persons residing in the State;</DELETED>
        <DELETED>    ``(4) limit the assistance to be provided under 
        this section to the purchase of food;</DELETED>
        <DELETED>    ``(5) describe the persons to whom such assistance 
        will be provided;</DELETED>
        <DELETED>    ``(6) assure the Secretary that assistance will be 
        provided to the most needy persons in the State and that 
        applicants for assistance shall have adequate notice and fair 
        hearings comparable to those required under section 
        11;</DELETED>
        <DELETED>    ``(7) provide that, in the operation of the low-
        income nutrition assistance program, there shall be no 
        discrimination on the basis of race, sex, religion, national 
        origin, or political beliefs; and</DELETED>
        <DELETED>    ``(8) include other information as may be required 
        by the Secretary.</DELETED>
<DELETED>    ``(d) Payments made under this section to the State may be 
expended only in the fiscal year for which such payments are 
distributed, except that the State may reserve up to 5 percent of the 
grant received for a fiscal year to provide assistance under this 
section in subsequent fiscal years: Provided, That such reserved funds 
may not total more than 20 percent of the total grant received under 
this section for a fiscal year.</DELETED>
<DELETED>    ``(e) The State agency shall keep records concerning the 
operation of the program carried out under this section and shall make 
such records available to the Secretary and the Comptroller General of 
the United States.</DELETED>
<DELETED>    ``(f) If the Secretary finds that there is substantial 
failure by a State to comply with the requirements of this section, 
regulations issued pursuant to this section, or the plan approved under 
subsection (c), then the Secretary shall take one or more of the 
following actions:</DELETED>
        <DELETED>    ``(1) Suspend all or part of such payment 
        authorized by subsection (b)(2) to be made available to such 
        State, until the Secretary determines the State to be in 
        substantial compliance with such requirements.</DELETED>
        <DELETED>    ``(2) Withhold all or part of such payments until 
        the Secretary determines that there is no longer failure to 
        comply with such requirements, at which time the withheld 
        payment may be paid.</DELETED>
        <DELETED>    ``(3) Terminate the authority of the State to 
        operate the low-income nutrition assistance program.</DELETED>
<DELETED>    ``(g)(1) States which receive grants under this section 
shall provide for--</DELETED>
        <DELETED>    ``(A) a biennial audit, conducted in accordance 
        with the standards of the Comptroller General, of expenditures 
        for the provision of nutrition assistance under this section; 
        and</DELETED>
        <DELETED>    ``(B) not later than 120 days after the end of 
        each fiscal year in which an audit is conducted, provide the 
        Secretary with such audit.</DELETED>
<DELETED>States shall make the report of such audit available for 
public inspection.</DELETED>
<DELETED>    ``(2) Not later than 120 days after the end of the fiscal 
year for which a State receives a grant under this section, such State 
shall prepare an activities report comparing actual expenditures for 
such fiscal year for nutrition assistance under this section with the 
expenditures for such fiscal year predicted in the plan submitted in 
accordance with subsection (c). Such State shall make the activities 
report available for public inspection.</DELETED>
<DELETED>    ``(h) Whoever knowingly and willfully embezzles, 
misapplies, steals, or obtains by fraud, false statement, or forgery, 
any funds, assets, or property provided or financed under this section 
shall be fined not more than $10,000 or imprisoned for not more than 5 
years, or both.''.</DELETED>
<DELETED>SEC. 557. VALUE OF MINIMUM ALLOTMENT.</DELETED>

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

<DELETED>SEC. 558. INITIAL MONTH BENEFIT DETERMINATION.</DELETED>

<DELETED>    Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2017(c)(2)(B)) is amended by striking ``of more than one month'' after 
``following any period''.</DELETED>

<DELETED>SEC. 559. IMPROVING FOOD STAMP PROGRAM MANAGEMENT.</DELETED>

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

<DELETED>SEC. 560. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.</DELETED>

<DELETED>    (a) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)), as amended by section 542(b), is amended--</DELETED>
        <DELETED>    (1) in paragraph (25), by striking 
        ``and'';</DELETED>
        <DELETED>    (2) in paragraph (26), by striking the period and 
        inserting ``; and'' at the end; and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(27) the plans of the State agency for including 
        eligible food stamp recipients in a work supplementation or 
        support program under section 16(j).''.</DELETED>
<DELETED>    (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
2025), as amended by section 554(b), is amended by adding at the end 
the following new subsection:</DELETED>
<DELETED>    ``(j) Work Supplementation or Support Program.--</DELETED>
        <DELETED>    ``(1) A State may elect to use the sums equal to 
        the food stamp benefits that would otherwise be allotted to 
        participants under the food stamp program but for the operation 
        of this subsection for the purposes of providing and 
        subsidizing or supporting jobs under a work supplementation or 
        support program established by the State.</DELETED>
        <DELETED>    ``(2) If a State that makes the election described 
        in paragraph (1) identifies each household that participates in 
        the food stamp program which contains an individual who is 
        participating in such work supplementation or support program--
        </DELETED>
                <DELETED>    ``(A) the Secretary shall pay to the State 
                an amount equal to the value of the allotment that the 
                household would be eligible to receive but for the 
                operation of this subsection;</DELETED>
                <DELETED>    ``(B) the State shall expend such amount 
                in accordance with its work supplementation or support 
                program in lieu of the allotment that the household 
                would receive but for the operation of this 
                subsection;</DELETED>
                <DELETED>    ``(C) for purposes of--</DELETED>
                        <DELETED>    ``(i) sections 5 and 8(a), the 
                        amount received under this subsection shall be 
                        excluded from household income and resources; 
                        and</DELETED>
                        <DELETED>    ``(ii) section 8(b), the amount 
                        received under this subsection shall be 
                        considered as the value of an allotment 
                        provided to the household; and</DELETED>
                <DELETED>    ``(D) the household shall not receive an 
                allotment from the State agency for the period during 
                which the member continues to participate in the work 
                supplementation program.</DELETED>
        <DELETED>    ``(3) No person shall be excused by reason of the 
        fact that such State has a work supplementation or support 
        program from any work requirement under section 6(d), except 
        during the periods in which such individual is employed under 
        such work supplementation or support program.</DELETED>
        <DELETED>    ``(4) For purposes of this subsection, the term 
        ``work supplementation or support program'' shall mean a 
        program in which, as determined by the Secretary, public 
        assistance, including any benefits provided under a program 
        established by the State and the food stamp program, is 
        provided to an employer to be used for hiring a public 
        assistance recipient.''.</DELETED>

<DELETED>SEC. 561. OBLIGATIONS AND ALLOTMENTS.</DELETED>

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

            <DELETED>CHAPTER 3--PROGRAM INTEGRITY</DELETED>

<DELETED>SEC. 571. AUTHORITY TO ESTABLISH AUTHORIZATION 
              PERIODS.</DELETED>

<DELETED>    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(a)(1)) is amended by adding at the end the following new 
sentence:</DELETED>
<DELETED>``The Secretary shall establish specific time periods during 
which authorization to accept and redeem coupons, or to redeem benefits 
through an electronic benefit transfer system, under the food stamp 
program shall be valid.''.</DELETED>

<DELETED>SEC. 572. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD 
              STORES AND WHOLESALE FOOD CONCERNS.</DELETED>

<DELETED>    Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(a)(1)), as previously amended by this title, is amended by adding 
at the end the following new sentence:</DELETED>
<DELETED>``No retail food store or wholesale food concern shall be 
approved for participation in the food stamp program unless an 
authorized employee of the Department of Agriculture, wherever 
possible, or an official of the State or local government designated by 
the Department of Agriculture, has visited such retail food store or 
wholesale food concern for the purpose of determining whether such 
retail food store or wholesale food concern should be so 
approved.''.</DELETED>

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

<DELETED>    Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(d)) is amended by adding at the end the following new 
sentence:</DELETED>
<DELETED>``Such retail food store or wholesale food concern shall not 
submit an application under subsection (a)(1) for six months from the 
date of receipt of the notice of denial.''.</DELETED>
<DELETED>SEC. 574. DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE 
              FOOD CONCERNS.</DELETED>

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

<DELETED>SEC. 575. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM 
              REQUIREMENTS PENDING ADMINISTRATIVE AND JUDICIAL 
              REVIEW.</DELETED>

<DELETED>    Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2023(a)) is amended by adding at the end the following new 
sentence:</DELETED>
<DELETED>``Notwithstanding any other provision of law, the permanent 
disqualification of a retail food store or wholesale food concern under 
section 12(b)(3) shall be effective from the date of receipt of the 
notice of disqualification.''.</DELETED>

<DELETED>SEC. 576. CRIMINAL FORFEITURE.</DELETED>

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

<DELETED>SEC. 577. EXPANDED DEFINITION OF ``COUPON''.</DELETED>

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

<DELETED>SEC. 578. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM 
              REQUIREMENTS.</DELETED>

<DELETED>    Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(b)(1)) is amended--</DELETED>
        <DELETED>    (1) in clause (i), by striking ``six months'' and 
        inserting ``1 year''; and</DELETED>
        <DELETED>    (2) in clause (ii), by striking ``1 year'' and 
        inserting ``2 years''.</DELETED>

<DELETED>SEC. 579. DISQUALIFICATION OF CONVICTED INDIVIDUALS.</DELETED>

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

<DELETED>SEC. 580. CLAIMS COLLECTION.</DELETED>

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

<DELETED>SEC. 581. DENIAL OF FOOD STAMP BENEFITS FOR 10 YEARS TO 
              INDIVIDUALS FOUND TO HAVE FRAUDULENTLY MISREPRESENTED 
              RESIDENCE IN ORDER TO OBTAIN BENEFITS SIMULTANEOUSLY IN 2 
              OR MORE STATES.</DELETED>

<DELETED>    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(I) An individual shall be ineligible to participate in 
the food stamp program as a member of any household during the 10-year 
period beginning on the date the individual is found by a State to have 
made, or is convicted in Federal or State court of having made, a 
fraudulent statement or representation with respect to the place of 
residence of the individual in order to receive benefits simultaneously 
from 2 or more States under the food stamp program or under programs 
that are funded under part A of title IV, title XIX, or benefits in 2 
or more States under the supplemental security income program under 
title XVI.''.</DELETED>

<DELETED>SEC. 582. DISQUALIFICATION RELATING TO CHILD SUPPORT 
              ARREARS.</DELETED>

<DELETED>    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(i) No individual is eligible to participate in the food 
stamp program as a member of any household during any period such 
individual has any unpaid liability that is both--</DELETED>
        <DELETED>    ``(1) under a court order for the support of a 
        child of such individual; and</DELETED>
        <DELETED>    ``(2) for which the court is not allowing such 
        individual to delay payment.''.</DELETED>

<DELETED>SEC. 583. ELIMINATION OF FOOD STAMP BENEFITS WITH RESPECT TO 
              FUGITIVE FELONS AND PROBATION AND PAROLE 
              VIOLATORS.</DELETED>

<DELETED>    (a) Ineligibility for Food Stamps.--Section 6 of the Food 
Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 555, is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(j) 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 
while the individual is--</DELETED>
        <DELETED>    ``(1) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which he flees, for a crime, or an attempt to commit a crime, 
        which is a felony under the laws of the place from which he 
        flees, or which, in the case of the State of New Jersey, is a 
        high misdemeanor under the laws of such State; or</DELETED>
        <DELETED>    ``(2) violating a condition of probation or parole 
        imposed under Federal or State law.''.</DELETED>
<DELETED>    (2) Exchange of Information With Law Enforcement 
Officers.--Section 11(e)(8) of such Act (7 U.S.C. 2020(e)(8)) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``and (C)'' and inserting ``(C)''; 
        and</DELETED>
        <DELETED>    (2) by inserting before the semicolon at the end 
        the following: ``, (D) notwithstanding any other provision of 
        law, the address of a member of a household shall be made 
        available, on request, to a 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, under the laws of the place from 
        which he flees, for a crime, or an attempt to commit a crime, 
        which is a felony under the laws of the place from which he 
        flees, or which, in the case of the State of New Jersey, is a 
        high misdemeanor under the laws of such State, or is violating 
        a condition of probation or parole imposed under Federal or 
        State law, or (II) has information that is necessary for the 
        officer to conduct the officer's official duties, (ii) the 
        location or apprehension of the member is within the official 
        duties of the officer, and (iii) the request is made in the 
        proper exercise of the duties, and''.</DELETED>

        <DELETED>Subtitle C--Effective Dates and Miscellaneous 
                          Provisions</DELETED>

<DELETED>SEC. 591. EFFECTIVE DATES.</DELETED>

<DELETED>    (a) Except as provided in subsection (b), this title and 
amendments made by this title shall take effect on October 1, 
1995.</DELETED>
<DELETED>    (b) The amendments made by section 559 shall take effect 
on October 1, 1994.</DELETED>

<DELETED>SEC. 592. SENSE OF THE CONGRESS.</DELETED>

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

<DELETED>SEC. 593. DEFICIT REDUCTION.</DELETED>

<DELETED>    It is the sense of the Committee on Agriculture of the 
House of Representatives that reductions in outlays resulting from 
subtitle B shall not be taken into account for purposes of section 252 
of the Balanced Budget and Emergency Deficit Control Act of 
1985.</DELETED>
       <DELETED>TITLE VI--SUPPLEMENTAL SECURITY INCOME</DELETED>

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

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

<DELETED>SEC. 602. SUPPLEMENTAL SECURITY INCOME BENEFITS FOR DISABLED 
              CHILDREN.</DELETED>

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

      <DELETED>``PART C--BLOCK GRANTS TO STATES FOR CHILDREN WITH 
                         DISABILITIES</DELETED>

<DELETED>``SEC. 1641. ENTITLEMENT TO GRANTS.</DELETED>

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

<DELETED>``SEC. 1642. REQUIREMENTS.</DELETED>

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

<DELETED>``SEC. 1643. AUTHORITY OF STATE.</DELETED>

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

<DELETED>``SEC. 1644. AUTHORIZED SERVICES.</DELETED>

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

<DELETED>``SEC. 1645. GENERAL PROVISIONS.</DELETED>

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

<DELETED>``SEC. 1646. DEFINITIONS.</DELETED>

<DELETED>    ``As used in this part:</DELETED>
        <DELETED>    ``(1) Allotment.--The term `allotment' means, with 
        respect to a State and a fiscal year, the product of--
        </DELETED>
                <DELETED>    ``(A) an amount equal to the difference 
                between--</DELETED>
                        <DELETED>    ``(i) the number of qualifying 
                        children in the State (as determined for the 
                        most recent 12-month period for which data are 
                        available to the Commissioner); and</DELETED>
                        <DELETED>    ``(ii) the number of qualifying 
                        children in the State receiving cash benefits 
                        under this title by reason of disability (as so 
                        determined); and</DELETED>
                <DELETED>    ``(B) an amount equal to 75 percent of the 
                mean average of the respective annual totals of cash 
                benefits paid under this title to each qualifying child 
                described in subparagraph (A)(ii) (as so 
                determined).</DELETED>
        <DELETED>    ``(2) Authorized service.--The term `authorized 
        service' means each purpose authorized by the Commissioner 
        under section 1644(a).</DELETED>
        <DELETED>    ``(3) Qualifying child.--</DELETED>
                <DELETED>    ``(A) In general.--The term `qualifying 
                child' means an individual who--</DELETED>
                        <DELETED>    ``(i) has not attained 18 years of 
                        age; and</DELETED>
                        <DELETED>    ``(ii)(I) is eligible for cash 
                        benefits under this title by reason of 
                        disability; or</DELETED>
                        <DELETED>    ``(II) meets the conditions 
                        described in subclauses (I) and (II) of section 
                        1614(a)(3)(A)(ii), but (by reason of subclause 
                        (III) of such section) is not eligible for such 
                        cash benefits.</DELETED>
                <DELETED>    ``(B) Responsibilities of commissioner.--
                The Commissioner shall provide for determinations of 
                whether individuals meet the criteria established in 
                subparagraph (A) for status as qualifying children. 
                Such determinations shall be made in accordance with 
                the provisions otherwise applicable under this title 
                with respect to such criteria.''.</DELETED>
        <DELETED>    (2) Rule regarding certain military parents; cash 
        benefits for qualifying children.--Section 1614(a)(1)(B)(ii) of 
        the Social Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is 
        amended by striking ``United States, and who, for the month'' 
        and all that follows and inserting the following: ``United 
        States, and--</DELETED>
        <DELETED>    ``(I) who, for the month before the parent 
        reported for such assignment, received a cash benefit under 
        this title by reason of blindness, or</DELETED>
        <DELETED>    ``(II) for whom, for such month, a determination 
        was in effect that the child is a qualifying child under 
        section 1646(3).''.</DELETED>
<DELETED>    (c) Provisions Relating to SSI Cash Benefits and SSI 
Service Benefits.--</DELETED>
        <DELETED>    (1) Continuing disability reviews for certain 
        children.--Section 1614(a)(3)(G) of such Act (42 U.S.C. 
        1382c(a)(3)(G)) is amended--</DELETED>
                <DELETED>    (A) by inserting ``(i)'' after ``(G)''; 
                and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall redetermine the eligibility for cash benefits under 
this title and for services under part C--</DELETED>
        <DELETED>    ``(aa) of each individual who has not attained 18 
        years of age and is eligible for such cash benefits by reason 
        of disability; and</DELETED>
        <DELETED>    ``(bb) of each qualifying child (as defined in 
        section 1646(3)).</DELETED>
<DELETED>    ``(II) Subclause (I) shall not apply to an individual if 
the individual has an impairment (or combination of impairments) which 
is (or are) not expected to improve.''.</DELETED>
        <DELETED>    (2) Disability review required for ssi recipients 
        who are 18 years of age.--</DELETED>
                <DELETED>    (A) In general.--Section 1614(a)(3)(G) of 
                such Act (42 U.S.C. 1382c(a)(3)(G)), as amended by 
                paragraph (1) of this subsection, is amended by adding 
                at the end the following:</DELETED>
<DELETED>    ``(iii)(I) The Commissioner shall redetermine the 
eligibility of a qualified individual for supplemental security income 
benefits under this title by reason of disability, by applying the 
criteria used in determining eligibility for such benefits of 
applicants who have attained 18 years of age.</DELETED>
<DELETED>    ``(II) The redetermination required by subclause (I) with 
respect to a qualified individual shall be conducted during the 1-year 
period that begins on the date the qualified individual attains 18 
years of age.</DELETED>
<DELETED>    ``(III) As used in this clause, the term `qualified 
individual' means an individual who attains 18 years of age and for 
whom, for the month preceding the month in which the individual 
attained such age, a determination was in effect that the individual is 
a qualifying child under section 1646(3).</DELETED>
<DELETED>    ``(IV) A redetermination under subclause (I) of this 
clause shall be considered a substitute for a review required under any 
other provision of this subparagraph.''.</DELETED>
                <DELETED>    (B) Report to the congress.--Not later 
                than October 1, 1998, the Commissioner of Social 
                Security shall submit to the Committee on Ways and 
                Means of the House of Representatives and the Committee 
                on Finance of the Senate a report on the activities 
                conducted under section 1614(a)(3)(G)(iii) of the 
                Social Security Act.</DELETED>
                <DELETED>    (C) Conforming repeal.--Section 207 of the 
                Social Security Independence and Program Improvements 
                Act of 1994 (42 U.S.C. 1382 note; 108 Stat. 1516) is 
                hereby repealed.</DELETED>
        <DELETED>    (3) Disability review required for low birth 
        weight babies who have received ssi benefits for 12 months.--
        Section 1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)), 
        as amended by paragraphs (1) and (2) of this subsection, is 
        amended by adding at the end the following:</DELETED>
<DELETED>    ``(iv)(I) The Commissioner shall redetermine the 
eligibility for--</DELETED>
        <DELETED>    ``(aa) cash benefits under this title by reason of 
        disability of an individual whose low birth weight is a 
        contributing factor material to the Commissioner's 
        determination that the individual is disabled; and</DELETED>
        <DELETED>    ``(bb) services under part C of an individual who 
        is eligible for such services by reason of low birth 
        weight.</DELETED>
<DELETED>    ``(II) The redetermination required by subclause (I) shall 
be conducted once the individual has received such benefits for 12 
months.</DELETED>
<DELETED>    ``(III) A redetermination under subclause (I) of this 
clause shall be considered a substitute for a review required under any 
other provision of this subparagraph.''.</DELETED>
        <DELETED>    (4) Applicability of medicaid rules regarding 
        counting of certain assets and trusts of children.--Section 
        1613(c) of the Social Security Act (42 U.S.C. 1382b(c)) is 
        amended to read as follows:</DELETED>

   <DELETED>``treatment of certain assets and trusts in eligibility 
                 determinations for children</DELETED>

<DELETED>    ``(c) Subsections (c) and (d) of section 1917 shall apply 
to determinations of eligibility for benefits under this title in the 
case of an individual who has not attained 18 years of age in the same 
manner as such subsections apply to determinations of eligibility for 
medical assistance under a State plan under title XIX, except that--
</DELETED>
        <DELETED>    ``(1) the amount described in section 
        1917(c)(1)(E)(i)(II) shall be the amount of cash benefits 
        payable under this title to an eligible individual who does not 
        have an eligible spouse and who has no income or 
        resources;</DELETED>
        <DELETED>    ``(2) the look-back date specified in section 
        1917(c)(1)(B) shall be the date that is 36 months before the 
        date the individual has applied for benefits under this title; 
        and</DELETED>
        <DELETED>    ``(3) any assets in a trust over which the 
        individual has control shall be considered assets of the 
        individual.''.</DELETED>
<DELETED>    (d) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5), 
        and (e)(1)(B) of section 1611 of the Social Security Act (42 
        U.S.C. 1382 (b)(1), (b)(2), (c)(3), (c)(5), and (e)(1)(B)) are 
        each amended by inserting ``cash'' before ``benefit under this 
        title''.</DELETED>
        <DELETED>    (2) Section 1611(c)(1) of such Act (42 U.S.C. 
        1382(c)(1)) is amended--</DELETED>
                <DELETED>    (A) by striking ``a benefit'' and 
                inserting ``benefits'';</DELETED>
                <DELETED>    (B) by striking ``such benefit'' and 
                inserting ``the cash benefit under this title''; 
                and</DELETED>
                <DELETED>    (C) by striking ``and the amount of such 
                benefits'' and inserting ``benefits under this title 
                and the amount of any cash benefit under this 
                title''.</DELETED>
        <DELETED>    (3) Section 1611(c)(2) of such Act (42 U.S.C. 
        1382(c)(2)) is amended--</DELETED>
                <DELETED>    (A) by striking ``such benefit'' and 
                inserting ``the cash benefit'';</DELETED>
                <DELETED>    (B) by inserting ``cash'' before 
                ``benefits'' each place such term appears; 
                and</DELETED>
                <DELETED>    (C) in subpargraph (B), by inserting 
                ``cash'' before ``benefit''.</DELETED>
        <DELETED>    (4) Section 1611(c)(3) of such Act (42 U.S.C. 
        1382(c)(3)) is amended by inserting ``cash'' before ``benefits 
        under this title''.</DELETED>
        <DELETED>    (5) Section 1611(e)(1)(G) of such Act (42 U.S.C. 
        1382(e)(1)(G)) is amended by inserting ``cash'' before 
        ``benefit of''.</DELETED>
        <DELETED>    (6) Section 1614(a)(4) of such Act (42 U.S.C. 
        1382c(a)(4)) is amended by inserting ``or impairment'' after 
        ``disability'' each place such term appears.</DELETED>
        <DELETED>    (7) Section 1614(f)(1) of such Act (42 U.S.C. 
        1382c(f)(1)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit under this title''.</DELETED>
        <DELETED>    (8) Section 1614(f)(2)(A) of such Act (42 U.S.C. 
        1382c(f)(2)(A)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit''.</DELETED>
        <DELETED>    (9) Section 1614(f)(3) of such Act (42 U.S.C. 
        1382c(f)(3)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit under this title''.</DELETED>
        <DELETED>    (10) Section 1616(e)(1) of such Act (42 U.S.C. 
        1382e(e)(1)) is amended by inserting ``cash'' before 
        ``supplemental''.</DELETED>
        <DELETED>    (11) Section 1621(a) of such Act (42 U.S.C. 
        1382j(a)) is amended by striking ``and the amount of benefits'' 
        and inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.</DELETED>
        <DELETED>    (12) Section 1631(a)(4) of such Act (42 U.S.C. 
        1383(a)(4)) is amended by inserting ``cash'' before 
        ``benefits'' the 1st place such term appears in each of 
        subparagraphs (A) and (B).</DELETED>
        <DELETED>    (13) Section 1631(a)(7)(A) of such Act (42 U.S.C. 
        1383(a)(7)(A)) is amended by inserting ``cash'' before 
        ``benefits based''.</DELETED>
        <DELETED>    (14) Section 1631(a)(8)(A) of such Act (42 U.S.C. 
        1383(a)(8)(A)) is amended by striking ``benefits based on 
        disability or blindness under this title'' and inserting 
        ``benefits under this title (other than by reason of 
        age)''.</DELETED>
        <DELETED>    (15) Section 1631(c) of such Act (42 U.S.C. 
        1383(c)) is amended--</DELETED>
                <DELETED>    (A) by striking ``payment'' each place 
                such term appears and inserting ``benefits''; 
                and</DELETED>
                <DELETED>    (B) by striking ``payments'' each place 
                such term appears and inserting ``benefits''.</DELETED>
        <DELETED>    (16) Section 1631(e) of such Act (42 U.S.C. 
        1383(e)) is amended--</DELETED>
                <DELETED>    (A) in paragraph (1)(B), by striking 
                ``amounts of such benefits'' and inserting ``amounts of 
                cash benefits under this title'';</DELETED>
                <DELETED>    (B) in paragraph (2), by inserting 
                ``cash'' before ``benefits'' each place such term 
                appears;</DELETED>
                <DELETED>    (C) by redesignating the 2nd paragraph (6) 
                and paragraph (7) as paragraphs (7) and (8), 
                respectively; and</DELETED>
                <DELETED>    (D) in paragraph (7) (as so redesignated), 
                by inserting ``cash'' before ``benefits'' each place 
                such term appears.</DELETED>
        <DELETED>    (17) Section 1631(g)(2) of such Act (42 U.S.C. 
        1383(g)(2)) is amended by striking ``supplemental security 
        income'' and inserting ``cash''.</DELETED>
        <DELETED>    (18) Section 1635(a) of such Act (42 U.S.C. 
        1383d(a)) is amended by striking ``by reason of disability or 
        blindness''.</DELETED>
<DELETED>    (e) Temporary Eligibility for Cash Benefits for Poor 
Disabled Children Residing in States Applying Alternative Income 
Eligibility Standards Under Medicaid.--</DELETED>
        <DELETED>    (1) In general.--For the period beginning upon the 
        1st day of the 1st month that begins 90 or more days after the 
        date of the enactment of this Act and ending upon the close of 
        fiscal year 1996, an individual described in paragraph (2) 
        shall be considered to be eligible for cash benefits under 
        title XVI of the Social Security Act, by reason of disability 
        notwithstanding that the individual does not meet any of the 
        conditions described in section 1614(a)(3)(A)(ii)(III) of such 
        Act.</DELETED>
        <DELETED>    (2) Requirements.--For purposes of paragraph (1), 
        an individual described in this paragraph is an individual 
        who--</DELETED>
                <DELETED>    (A) has not attained 18 years of 
                age;</DELETED>
                <DELETED>    (B) meets the conditions described in 
                subclauses (I) and (II) of section 1614(a)(3)(A)(ii) of 
                the Social Security Act;</DELETED>
                <DELETED>    (C) resides in a State that, pursuant to 
                section 1902(f) of such Act, restricts eligibility for 
                medical assistance under title XIX of such Act with 
                respect to aged, blind, and disabled individuals; 
                and</DELETED>
                <DELETED>    (D) is not eligible for medical assistance 
                under the State plan under such title XIX.</DELETED>
<DELETED>    (f) Reduction in Cash Benefits Payable to 
Institutionalized Children Whose Medical Costs are Covered by Private 
Insurance.--Section 1611(e)(1)(B) of the Social Security Act (42 U.S.C. 
1382(e)(1)(B)) is amended by inserting ``or under any health insurance 
policy issued by a private provider of such insurance'' after ``title 
XIX''.</DELETED>
<DELETED>    (g) Applicability.--</DELETED>
        <DELETED>    (1) In general.--Except as provided in paragraph 
        (2), the amendments made by subsections (a)(1), (c), (d) and 
        (f), and section 1645(b)(2) of the Social Security Act (as 
        added by the amendment made by subsection (b) of this section), 
        shall apply to benefits for months beginning 90 or more days 
        after the date of the enactment of this Act, without regard to 
        whether regulations have been issued to implement such 
        amendments.</DELETED>
        <DELETED>    (2) Delayed applicability to current ssi 
        recipients of eligibility restrictions.--The amendments made by 
        subsection (a)(1) shall not apply, during the first 6 months 
        that begin after the month in which this Act becomes law, to an 
        individual who is a recipient of cash supplemental security 
        income benefits under title XVI of the Social Security Act for 
        the month in which this Act becomes law.</DELETED>
<DELETED>    (h) Regulations.--Within 3 months after the date of the 
enactment of this Act--</DELETED>
        <DELETED>    (1) the Commissioner of Social Security shall 
        prescribe such regulations as may be necessary to implement the 
        amendments made by subsections (a)(1), (c), (d), and (f) and to 
        implement subsection (e); and</DELETED>
        <DELETED>    (2) the Secretary of Health and Human Services 
        shall prescribe such regulations as may be necessary to 
        implement section 1645(b)(2) of the Social Security Act, as 
        added by the amendment made by subsection (b) of this 
        section.</DELETED>

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

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

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

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

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

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

<DELETED>SEC. 606. 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.</DELETED>

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

<DELETED>SEC. 607. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND 
              PROBATION AND PAROLE VIOLATORS.</DELETED>

<DELETED>    (a) In General.--Section 1611(c) of the Social Security 
Act (42 U.S.C. 1382(e)), as amended by section 601(b)(1) of this Act, 
is amended by inserting after paragraph (2) the following:</DELETED>
        <DELETED>    ``(3) A person shall not be an eligible individual 
        or eligible spouse for purposes of this title with respect to 
        any month if, throughout the month, the person is--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) violating a condition of probation 
                or parole imposed under Federal or State 
                law.''.</DELETED>
<DELETED>    (b) Exchange of Information with Law Enforcement 
Agencies.--Section 1631(e) of such Act (42 U.S.C. 1383(e)) is amended 
by inserting after paragraph (3) the following:</DELETED>
<DELETED>    ``(4) Notwithstanding any other provision of law, the 
Commissioner shall furnish any Federal, State, or local law enforcement 
officer, upon the request of the officer, with the current address of 
any recipient of benefits under this title, if the officer furnishes 
the agency with the name of the recipient and notifies the agency 
that--</DELETED>
        <DELETED>    ``(A) the recipient--</DELETED>
                <DELETED>    ``(i) is fleeing to avoid prosecution, or 
                custody or confinement after conviction, under the laws 
                of the place from which the person flees, for a crime, 
                or an attempt to commit a crime, which is a felony 
                under the laws of the place from which the person 
                flees, or which, in the case of the State of New 
                Jersey, is a high misdemeanor under the laws of such 
                State;</DELETED>
                <DELETED>    ``(ii) is violating a condition of 
                probation or parole imposed under Federal or State law; 
                or</DELETED>
                <DELETED>    ``(iii) has information that is necessary 
                for the officer to conduct the officer's official 
                duties;</DELETED>
        <DELETED>    ``(B) the location or apprehension of the 
        recipient is within the official duties of the officer; 
        and</DELETED>
        <DELETED>    ``(C) the request is made in the proper exercise 
        of such duties.''.</DELETED>

              <DELETED>TITLE VII--CHILD SUPPORT</DELETED>

<DELETED>SEC. 700. REFERENCES.</DELETED>

<DELETED>    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.</DELETED>

    <DELETED>Subtitle A--Eligibility for Services; Distribution of 
                           Payments</DELETED>

<DELETED>SEC. 701. STATE OBLIGATION TO PROVIDE CHILD SUPPORT 
              ENFORCEMENT SERVICES.</DELETED>

<DELETED>    (a) State Plan Requirements.--Section 454 (42 U.S.C. 654) 
is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (4) and inserting the 
        following:</DELETED>
        <DELETED>    ``(4) provide that the State will--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) each child for whom cash 
                        assistance is provided under the State program 
                        funded under part A of this title, benefits or 
                        services are provided under the State program 
                        funded under part B of this title, or medical 
                        assistance is provided under the State plan 
                        approved under title XIX, unless the State 
                        agency administering the plan determines (in 
                        accordance with paragraph (28)) that it is 
                        against the best interests of the child to do 
                        so; and</DELETED>
                        <DELETED>    ``(ii) any other child, if an 
                        individual applies for such services with 
                        respect to the child; and</DELETED>
                <DELETED>    ``(B) enforce any support obligation 
                established with respect to--</DELETED>
                        <DELETED>    ``(i) a child with respect to whom 
                        the State provides services under the plan; 
                        or</DELETED>
                        <DELETED>    ``(ii) the custodial parent of 
                        such a child.''; and</DELETED>
        <DELETED>    (2) in paragraph (6)--</DELETED>
                <DELETED>    (A) by striking ``provide that'' and 
                inserting ``provide that--'';</DELETED>
                <DELETED>    (B) by striking subparagraph (A) and 
                inserting the following:</DELETED>
                <DELETED>    ``(A) services under the plan shall be 
                made available to nonresidents on the same terms as to 
                residents;'';</DELETED>
                <DELETED>    (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'';</DELETED>
                <DELETED>    (D) in each of subparagraphs (B), (C), 
                (D), and (E)--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (ii) by striking the final comma 
                        and inserting a semicolon; and</DELETED>
                <DELETED>    (E) in subparagraph (E), by indenting each 
                of clauses (i) and (ii) 2 additional ems.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 452(b) (42 U.S.C. 652(b)) is amended 
        by striking ``454(6)'' and inserting ``454(4)''.</DELETED>
        <DELETED>    (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)''.</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (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)''.</DELETED>

<DELETED>SEC. 702. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.</DELETED>

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

<DELETED>``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.</DELETED>

<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(1) Families receiving cash assistance.--In the 
        case of a family receiving cash assistance from the State, the 
        State shall--</DELETED>
                <DELETED>    ``(A) retain, or distribute to the family, 
                the State share of the amount so collected; 
                and</DELETED>
                <DELETED>    ``(B) pay to the Federal Government the 
                Federal share of the amount so collected.</DELETED>
        <DELETED>    ``(2) Families that formerly received cash 
        assistance.--In the case of a family that formerly received 
        cash assistance from the State:</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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:</DELETED>
                        <DELETED>    ``(i) Distribution to the family 
                        to satisfy arrearages that accrued before or 
                        after the family received cash assistance.--The 
                        State shall distribute the amount so collected 
                        to the family to the extent necessary to 
                        satisfy any support arrears with respect to the 
                        family that accrued before or after the family 
                        received cash assistance from the 
                        State.</DELETED>
                        <DELETED>    ``(ii) Reimbursement of 
                        governments for assistance provided to the 
                        family.--To the extent that clause (i) does not 
                        apply to the amount, the State shall retain the 
                        State share of the amount so collected, and pay 
                        to the Federal Government the Federal share of 
                        the amount so collected, to the extent 
                        necessary to reimburse amounts paid to the 
                        family as cash assistance from the 
                        State.</DELETED>
                        <DELETED>    ``(iii) Distribution of the 
                        remainder to the family.--To the extent that 
                        neither clause (i) nor clause (ii) applies to 
                        the amount so collected, the State shall 
                        distribute the amount to the family.</DELETED>
        <DELETED>    ``(3) Families that never received cash 
        assistance.--In the case of any other family, the State shall 
        distribute the amount so collected to the family.</DELETED>
<DELETED>    ``(b) Definitions.--As used in subsection (a):</DELETED>
        <DELETED>    ``(1) Cash assistance.--The term `cash assistance 
        from the State' means--</DELETED>
                <DELETED>    ``(A) cash assistance under the State 
                program funded under part A or under the State plan 
                approved under part A of this title (as in effect 
                before October 1, 1995); or</DELETED>
                <DELETED>    ``(B) cash benefits under the State 
                program funded under part B or under the State plan 
                approved under part B or E of this title (as in effect 
                before October 1, 1995).</DELETED>
        <DELETED>    ``(2) Federal share.--The term `Federal share' 
        means, with respect to an amount collected by the State to 
        satisfy a support obligation owed to a family for a time 
        period--</DELETED>
                <DELETED>    ``(A) the greatest Federal medical 
                assistance percentage in effect for the State for 
                fiscal year 1995 or any succeeding fiscal year; 
                or</DELETED>
                <DELETED>    ``(B) if support is not owed to the family 
                for any month for which the family received aid to 
                families with dependent children under the State plan 
                approved under part A of this title (as in effect 
                before October 1, 1995), the Federal reimbursement 
                percentage for the fiscal year in which the time period 
                occurs.</DELETED>
        <DELETED>    ``(3) Federal medical assistance percentage.--The 
        term `Federal medical assistance percentage' means--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) the Federal medical assistance 
                percentage (as defined in section 1905(b)) in the case 
                of any other State.</DELETED>
        <DELETED>    ``(4) Federal reimbursement percentage.--The term 
        `Federal reimbursement percentage' means, with respect to a 
        fiscal year--</DELETED>
                <DELETED>    ``(A) the total amount paid to the State 
                under section 403 for the fiscal year; divided 
                by</DELETED>
                <DELETED>    ``(B) the total amount expended by the 
                State to carry out the State program under part A 
                during the fiscal year.</DELETED>
        <DELETED>    ``(5) State share.--The term `State share' means 
        100 percent minus the Federal share.</DELETED>
<DELETED>    ``(c) Continuation of Services for Families Ceasing To 
Receive Assistance Under the State Program Funded Under Part A.--When a 
family with respect to which services are provided under a State plan 
approved under this part ceases to receive assistance under the State 
program funded under part A, the State shall provide appropriate notice 
to the family and continue to provide such services, subject to the 
same conditions and on the same basis as in the case of individuals to 
whom services are furnished under section 454, except that an 
application or other request to continue services shall not be required 
of such a family and section 454(6)(B) shall not apply to the 
family.''.</DELETED>
<DELETED>    (b) Effective Date.--</DELETED>
        <DELETED>    (1) General rule.--Except as provided in paragraph 
        (2), the amendment made by subsection (a) shall become 
        effective on October 1, 1999.</DELETED>
        <DELETED>    (2) Earlier effective date for rules relating to 
        distribution of support collected for families receiving cash 
        assistance.--Section 457(a)(1) of the Social Security Act, as 
        added by the amendment made by subsection (a), shall become 
        effective on October 1, 1995.</DELETED>

<DELETED>SEC. 703. PRIVACY SAFEGUARDS.</DELETED>

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

        <DELETED>Subtitle B--Locate and Case Tracking</DELETED>

<DELETED>SEC. 711. STATE CASE REGISTRY.</DELETED>

<DELETED>    Section 454A, as added by section 745(a)(2) of this Act, 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(e) State Case Registry.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) each case in which services are 
                being provided by the State agency under the State plan 
                approved under this part; and</DELETED>
                <DELETED>    ``(B) each support order established or 
                modified in the State on or after October 1, 
                1998.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) the amount of monthly (or other 
                periodic) support owed under the order, and other 
                amounts (including arrears, interest or late payment 
                penalties, and fees) due or overdue under the 
                order;</DELETED>
                <DELETED>    ``(B) any amount described in subparagraph 
                (A) that has been collected;</DELETED>
                <DELETED>    ``(C) the distribution of such collected 
                amounts;</DELETED>
                <DELETED>    ``(D) the birth date of any child for whom 
                the order requires the provision of support; 
                and</DELETED>
                <DELETED>    ``(E) the amount of any lien imposed with 
                respect to the order pursuant to section 
                466(a)(4).</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) information on administrative 
                actions and administrative and judicial proceedings and 
                orders relating to paternity and support;</DELETED>
                <DELETED>    ``(B) information obtained from comparison 
                with Federal, State, or local sources of 
                information;</DELETED>
                <DELETED>    ``(C) information on support collections 
                and distributions; and</DELETED>
                <DELETED>    ``(D) any other relevant 
                information.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for the 
        purposes specified in section 453.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Intra- and interstate information 
        comparisons.--Exchanging information with other agencies of the 
        State, agencies of other States, and interstate information 
        networks, as necessary and appropriate to carry out (or assist 
        other States to carry out) the purposes of this 
        part.''.</DELETED>

<DELETED>SEC. 712. COLLECTION AND DISBURSEMENT OF SUPPORT 
              PAYMENTS.</DELETED>

<DELETED>    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
as amended by section 703(a) of this Act, is amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of paragraph 
        (24);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (25) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding after paragraph (25) the 
        following:</DELETED>
        <DELETED>    ``(26) provide that, on and after October 1, 1998, 
        the State agency will--</DELETED>
                <DELETED>    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and</DELETED>
                <DELETED>    ``(B) have sufficient State staff 
                (consisting of State employees) and (at State option) 
                contractors reporting directly to the State agency to--
                </DELETED>
                        <DELETED>    ``(i) monitor and enforce support 
                        collections through the unit (including 
                        carrying out the automated data processing 
                        responsibilities described in section 454A(g)); 
                        and</DELETED>
                        <DELETED>    ``(ii) take the actions described 
                        in section 466(c)(1) in appropriate 
                        cases.''.</DELETED>
<DELETED>    (b) Establishment of State Disbursement Unit.--Part D of 
title IV (42 U.S.C. 651-669), as amended by section 745(a)(2) of this 
Act, is amended by inserting after section 454A the 
following:</DELETED>

<DELETED>``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT 
              PAYMENTS.</DELETED>

<DELETED>    ``(a) State Disbursement Unit.--</DELETED>
        <DELETED>    ``(1) In general.--In order for a State to meet 
        the requirements of this section, the State agency must 
        establish and operate a unit (which shall be known as the 
        `State disbursement unit') for the collection and disbursement 
        of payments under support orders in all cases being enforced by 
        the State pursuant to section 454(4).</DELETED>
        <DELETED>    ``(2) Operation.--The State disbursement unit 
        shall be operated--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) in coordination with the automated 
                system established by the State pursuant to section 
                454A.</DELETED>
        <DELETED>    ``(3) Linking of local disbursement units.--The 
        State disbursement unit may be established by linking local 
        disbursement units through an automated information network, 
        subject to this section. The Secretary must agree that the 
        system will not cost more nor take more time to establish than 
        a centralized system. In addition, employers shall be given 1 
        location to which income withholding is sent.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) for accurate identification of 
        payments;</DELETED>
        <DELETED>    ``(3) to ensure prompt disbursement of the 
        custodial parent's share of any payment; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Timing of Disbursements.--The State disbursement 
unit shall distribute all amounts payable under section 457(a) within 2 
business days after receipt from the employer or other source of 
periodic income, if sufficient information identifying the payee is 
provided.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (c) Use of Automated System.--Section 454A, as added by 
section 745(a)(2) of this Act and as amended by section 711 of this 
Act, is amended by adding at the end the following:</DELETED>
<DELETED>    ``(g) Collection and Distribution of Support Payments.--
</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) transmission of orders and notices 
                to employers (and other debtors) for the withholding of 
                wages (and other income)--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) using uniform formats 
                        prescribed by the Secretary;</DELETED>
                <DELETED>    ``(B) ongoing monitoring to promptly 
                identify failures to make timely payment of support; 
                and</DELETED>
                <DELETED>    ``(C) automatic use of enforcement 
                procedures (including procedures authorized pursuant to 
                section 466(c)) where payments are not timely 
                made.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (d) Effective Date.--The amendments made by this section 
shall become effective on October 1, 1998.</DELETED>

<DELETED>SEC. 713. STATE DIRECTORY OF NEW HIRES.</DELETED>

<DELETED>    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
as amended by sections 703(a) and 712(a) of this Act, is amended--
</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of paragraph 
        (25);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (26) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding after paragraph (26) the 
        following:</DELETED>
        <DELETED>    ``(27) provide that, on and after October 1, 1997, 
        the State will operate a State Directory of New Hires in 
        accordance with section 453A.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``SEC. 453A. STATE DIRECTORY OF NEW HIRES.</DELETED>

<DELETED>    ``(a) Establishment.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than October 1, 1997, 
        each State shall establish an automated directory (to be known 
        as the `State Directory of New Hires') which shall contain 
        information supplied in accordance with subsection (b) by 
        employers and labor organizations on each newly hired 
        employee.</DELETED>
        <DELETED>    ``(2) Definitions.--As used in this 
        section:</DELETED>
                <DELETED>    ``(A) Employee.--The term `employee'--
                </DELETED>
                        <DELETED>    ``(i) means an individual who is 
                        an employee within the meaning of chapter 24 of 
                        the Internal Revenue Code of 1986; 
                        and</DELETED>
                        <DELETED>    ``(ii) does not include an 
                        employee of a Federal or State agency 
                        performing intelligence or counterintelligence 
                        functions, if the head of such agency has 
                        determined that reporting pursuant to paragraph 
                        (1) with respect to the employee could endanger 
                        the safety of the employee or compromise an 
                        ongoing investigation or intelligence 
                        mission.</DELETED>
                <DELETED>    ``(B) Governmental employers.--The term 
                `employer' includes any governmental entity.</DELETED>
                <DELETED>    ``(C) Labor organization.--The term `labor 
                organization' shall have the meaning given such term in 
                section 2(5) of the National Labor Relations Act, and 
                includes any entity (also known as a `hiring hall') 
                which is used by the organization and an employer to 
                carry out requirements described in section 8(f)(3) of 
                such Act of an agreement between the organization and 
                the employer.</DELETED>
<DELETED>    ``(b) Employer Information.--</DELETED>
        <DELETED>    ``(1) Reporting requirement.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                subparagraph (B), each employer shall furnish to the 
                Directory of New Hires of the State in which a newly 
                hired employee works a report that contains the name, 
                address, and social security number of the employee, 
                and the name of, and identifying number assigned under 
                section 6109 of the Internal Revenue Code of 1986 to, 
                the employer.</DELETED>
                <DELETED>    ``(B) Multistate employers.--An employer 
                who has employees who are employed in 2 or more States 
                may comply with subparagraph (A) by transmitting the 
                report described in subparagraph (A) magnetically or 
                electronically to the State in which the greatest 
                number of employees of the employer are 
                employed.</DELETED>
        <DELETED>    ``(2) Timing of report.--The report required by 
        paragraph (1) with respect to an employee shall be made not 
        later than the later of--</DELETED>
                <DELETED>    ``(A) 15 days after the date the employer 
                hires the employee; or</DELETED>
                <DELETED>    ``(B) the date the employee first receives 
                wages or other compensation from the 
                employer.</DELETED>
<DELETED>    ``(c) Reporting Format and Method.--Each report required 
by subsection (b) shall be made on a W-4 form or the equivalent, and 
may be transmitted by first class mail, magnetically, or 
electronically.</DELETED>
<DELETED>    ``(d) Civil Money Penalties on Noncomplying Employers.--
</DELETED>
        <DELETED>    ``(1) In general.--An employer that fails to 
        comply with subsection (b) with respect to an employee shall be 
        subject to a civil money penalty of--</DELETED>
                <DELETED>    ``(A) $25; or</DELETED>
                <DELETED>    ``(B) $500 if, under State law, the 
                failure is the result of a conspiracy between the 
                employer and the employee to not supply the required 
                report or to supply a false or incomplete 
                report.</DELETED>
        <DELETED>    ``(2) Applicability of section 1128.--Section 1128 
        (other than subsections (a) and (b) of such section) shall 
        apply to a civil money penalty under paragraph (1) of this 
        subsection in the same manner as such section applies to a 
        civil money penalty or proceeding under section 
        1128A(a).</DELETED>
<DELETED>    ``(e) Information Comparisons.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than October 1, 1997, 
        an agency designated by the State shall, directly or by 
        contract, conduct automated comparisons of the social security 
        numbers reported by employers pursuant to subsection (b) and 
        the social security numbers appearing in the records of the 
        State case registry for cases being enforced under the State 
        plan.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Transmission of Information.--</DELETED>
        <DELETED>    ``(1) Transmission of wage withholding notices to 
        employers.--Within 2 business days after the date information 
        regarding a newly hired employee is entered into the State 
        Directory of New Hires, the State agency enforcing the 
        employee's child support obligation shall transmit a notice to 
        the employer of the employee directing the employer to withhold 
        from the wages of the employee an amount equal to the monthly 
        (or other periodic) child support obligation of the employee, 
        unless the employee's wages are not subject to withholding 
        pursuant to section 466(b)(3).</DELETED>
        <DELETED>    ``(2) Transmissions to the national directory of 
        new hires.--</DELETED>
                <DELETED>    ``(A) New hire information.--Within 4 
                business days after the State Directory of New Hires 
                receives information from employers pursuant to this 
                section, the State Directory of New Hires shall furnish 
                the information to the National Directory of New 
                Hires.</DELETED>
                <DELETED>    ``(B) Wage and unemployment compensation 
                information.--The State Directory of New Hires shall, 
                on a quarterly basis, furnish to the National Directory 
                of New Hires extracts of the reports required under 
                section 303(a)(6) to be made to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals, by such dates, in such format, and 
                containing such information as the Secretary of Health 
                and Human Services shall specify in 
                regulations.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(g) Other Uses of New Hire Information.--</DELETED>
        <DELETED>    ``(1) Location of child support obligors.--The 
        agency administering the State plan approved under this part 
        shall use information received pursuant to subsection (e)(2) to 
        locate individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 714. AMENDMENTS CONCERNING INCOME WITHHOLDING.</DELETED>

<DELETED>    (a) Mandatory Income Withholding.--</DELETED>
        <DELETED>    (1) In general.--Section 466(a)(1) (42 U.S.C. 
        666(a)(1)) is amended to read as follows:</DELETED>
        <DELETED>    ``(1) Income withholding.--</DELETED>
                <DELETED>    ``(A) Under orders enforced under the 
                state plan.--Procedures described in subsection (b) for 
                the withholding from income of amounts payable as 
                support in cases subject to enforcement under the State 
                plan.</DELETED>
                <DELETED>    ``(B) Under certain orders predating 
                change in requirement.--Procedures under which the 
                wages of a person with a support obligation imposed by 
                a support order issued (or modified) in the State 
                before October 1, 1996, if not otherwise subject to 
                withholding under subsection (b), shall become subject 
                to withholding as provided in subsection (b) if 
                arrearages occur, without the need for a judicial or 
                administrative hearing.''.</DELETED>
        <DELETED>    (2) Conforming amendments.--</DELETED>
                <DELETED>    (A) Section 466(a)(8)(B)(iii) (42 U.S.C. 
                666(a)(8)(B)(iii)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``(5),''; 
                        and</DELETED>
                        <DELETED>    (ii) by inserting ``, and, at the 
                        option of the State, the requirements of 
                        subsection (b)(5)'' before the 
                        period.</DELETED>
                <DELETED>    (B) Section 466(b) (42 U.S.C. 666(b)) is 
                amended in the matter preceding paragraph (1), by 
                striking ``subsection (a)(1)'' and inserting 
                ``subsection (a)(1)(A)''.</DELETED>
                <DELETED>    (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.''.</DELETED>
                <DELETED>    (D) Section 466(b)(6)(A) (42 U.S.C. 
                666(b)(6)(A)) is amended--</DELETED>
                        <DELETED>    (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.'';</DELETED>
                        <DELETED>    (ii) in clause (ii), by inserting 
                        ``be in a standard format prescribed by the 
                        Secretary, and'' after ``shall''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(iii) As used in this subparagraph, the term 
        `business day' means a day on which State offices are open for 
        regular business.''.</DELETED>
                <DELETED>    (E) Section 466(b)(6)(D) (42 U.S.C. 
                666(b)(6)(D)) is amended by striking ``any employer'' 
                and all that follows and inserting the 
                following:</DELETED>
        <DELETED>``any employer who--</DELETED>
                <DELETED>    ``(i) discharges from employment, refuses 
                to employ, or takes disciplinary action against any 
                absent parent subject to wage withholding required by 
                this subsection because of the existence of such 
                withholding and the obligations or additional 
                obligations which is imposes upon the employer; 
                or</DELETED>
                <DELETED>    ``(ii) fails to withhold support from 
                wages, or to pay such amounts to the State disbursement 
                unit in accordance with this subsection.''.</DELETED>
                <DELETED>    (F) Section 466(b) (42 U.S.C. 666(b)) is 
                amended by adding at the end the following:</DELETED>
        <DELETED>    ``(11) Procedures under which the agency 
        administering the State plan approved under this part may 
        execute a withholding order through electronic means and 
        without advance notice to the obligor.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 
666(c)) is repealed.</DELETED>

<DELETED>SEC. 715. LOCATOR INFORMATION FROM INTERSTATE 
              NETWORKS.</DELETED>

<DELETED>    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at 
the end the following:</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 716. EXPANSION OF THE FEDERAL PARENT LOCATOR 
              SERVICE.</DELETED>

<DELETED>    (a) Expanded Authority To Locate Individuals and Assets.--
Section 453 (42 U.S.C. 653) is amended--</DELETED>
        <DELETED>    (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--</DELETED>
        <DELETED>    ``(1) information on, or facilitating the 
        discovery of, the location of any individual--</DELETED>
                <DELETED>    ``(A) who is under an obligation to pay 
                child support;</DELETED>
                <DELETED>    ``(B) against whom such an obligation is 
                sought; or</DELETED>
                <DELETED>    ``(C) to whom such an obligation is 
                owed,</DELETED>
        <DELETED>including the individual's social security number (or 
        numbers), most recent address, and the name, address, and 
        employer identification number of the individual's employer; 
        and</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    (2) in subsection (b), in the matter preceding 
        paragraph (1), by striking ``social security'' and all that 
        follows through ``absent parent'' and inserting ``information 
        described in subsection (a)''.</DELETED>
<DELETED>    (b) Reimbursement for Information From Federal Agencies.--
Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence 
by inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.</DELETED>
<DELETED>    (c) Reimbursement for Reports by State Agencies.--Section 
453 (42 U.S.C. 653) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(g) The Secretary may reimburse Federal and State 
agencies for the costs incurred by such entities in furnishing 
information requested by the Secretary under this section in an amount 
which the Secretary determines to be reasonable payment for the 
information exchange (which amount shall not include payment for the 
costs of obtaining, compiling, or maintaining the 
information).''.</DELETED>
<DELETED>    (d) Technical Amendments.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Section 453 (42 U.S.C. 653) is amended in the 
        heading by adding ``federal'' before ``parent''.</DELETED>
<DELETED>    (e) New Components.--Section 453 (42 U.S.C. 653), as 
amended by subsection (c) of this section, is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(h) Federal Case Registry of Child Support Orders.--
</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(i) National Directory of New Hires.--</DELETED>
        <DELETED>    ``(1) In general.--In order to assist States in 
        administering programs under State plans approved under this 
        part and programs funded under part A, and for the other 
        purposes specified in this section, the Secretary shall, not 
        later than October 1, 1996, establish and maintain in the 
        Federal Parent Locator Service an automated directory to be 
        known as the National Directory of New Hires, which shall 
        contain the information supplied pursuant to section 
        453A(f)(2).</DELETED>
        <DELETED>    ``(2) Administration of federal tax laws.--The 
        Secretary of the Treasury shall have access to the information 
        in the Federal Directory of New Hires for purposes of 
        administering section 32 of the Internal Revenue Code of 1986, 
        or the advance payment of the earned income tax credit under 
        section 3507 of such Code, and verifying a claim with respect 
        to employment in a tax return.</DELETED>
<DELETED>    ``(j) Information Comparisons and Other Disclosures.--
</DELETED>
        <DELETED>    ``(1) Verification by social security 
        administration.--</DELETED>
                <DELETED>    ``(A) The Secretary shall transmit 
                information on individuals and employers maintained 
                under this section to the Social Security 
                Administration to the extent necessary for verification 
                in accordance with subparagraph (B).</DELETED>
                <DELETED>    ``(B) The Social Security Administration 
                shall verify the accuracy of, correct, or supply to the 
                extent possible, and report to the Secretary, the 
                following information supplied by the Secretary 
                pursuant to subparagraph (A):</DELETED>
                        <DELETED>    ``(i) The name, social security 
                        number, and birth date of each such 
                        individual.</DELETED>
                        <DELETED>    ``(ii) The employer identification 
                        number of each such employer.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) compare information in the National 
                Directory of New Hires against information in the 
                support order abstracts in the Federal Case Registry of 
                Child Support Orders not less often than every 2 
                business days; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) disclose information in such 
                registries to such State agencies.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(k) Fees.--</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(m) Information Integrity and Security.--The Secretary 
shall establish and implement safeguards with respect to the entities 
established under this section designed to--</DELETED>
        <DELETED>    ``(1) ensure the accuracy and completeness of 
        information in the Federal Parent Locator Service; 
        and</DELETED>
        <DELETED>    ``(2) restrict access to confidential information 
        in the Federal Parent Locator Service to authorized persons, 
        and restrict use of such information to authorized 
        purposes.''.</DELETED>
<DELETED>    (f) Conforming Amendments.--</DELETED>
        <DELETED>    (1) To part d of title iv of the social security 
        act.--Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to 
        read as follows:</DELETED>
                <DELETED>    ``(B) the Federal Parent Locator Service 
                established under section 453;''.</DELETED>
        <DELETED>    (2) To federal unemployment tax act.--Section 
        3304(a)(16) of the Internal Revenue Code of 1986 is amended--
        </DELETED>
                <DELETED>    (A) by striking ``Secretary of Health, 
                Education, and Welfare'' each place such term appears 
                and inserting ``Secretary of Health and Human 
                Services'';</DELETED>
                <DELETED>    (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;'';</DELETED>
                <DELETED>    (C) by striking ``and'' at the end of 
                subparagraph (A);</DELETED>
                <DELETED>    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and</DELETED>
                <DELETED>    (E) by inserting after subparagraph (A) 
                the following new subparagraph:</DELETED>
                <DELETED>    ``(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''.</DELETED>
        <DELETED>    (3) To state grant program under title iii of the 
        social security act.--Section 303(a) (42 U.S.C. 503(a)) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``and'' at the end of 
                paragraph (8);</DELETED>
                <DELETED>    (B) by striking ``and'' at the end of 
                paragraph (9);</DELETED>
                <DELETED>    (C) by striking the period at the end of 
                paragraph (10) and inserting ``; and''; and</DELETED>
                <DELETED>    (D) by adding after paragraph (10) the 
                following:</DELETED>
        <DELETED>    ``(11) The making of quarterly electronic reports, 
        at such dates, in such format, and containing such information, 
        as required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.</DELETED>

<DELETED>SEC. 717. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR 
              USE IN CHILD SUPPORT ENFORCEMENT.</DELETED>

<DELETED>    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
666(a)), as amended by section 715 of this Act, is amended by adding at 
the end the following:</DELETED>
        <DELETED>    ``(13) Recording of social security numbers in 
        certain family matters.--Procedures requiring that the social 
        security number of--</DELETED>
                <DELETED>    ``(A) any applicant for a professional 
                license, commercial driver's license, occupational 
                license, or marriage license be recorded on the 
                application;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(C) any individual who has died be 
                placed in the records relating to the death and be 
                recorded on the death certificate.''.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';</DELETED>
        <DELETED>    (2) in clause (ii), by inserting after the 1st 
        sentence the following: ``In the administration of any law 
        involving the issuance of a marriage certificate or license, 
        each State shall require each party named in the certificate or 
        license to furnish to the State (or political subdivision 
        thereof) or any State agency having administrative 
        responsibility for the law involved, the social security number 
        of the party.'';</DELETED>
        <DELETED>    (3) in clause (vi), by striking ``may'' and 
        inserting ``shall''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(xi) All divorce decrees, 
                        support orders, and paternity determinations 
                        issued, and all paternity acknowledgments made, 
                        in each State shall include the social security 
                        number of each party to the decree, order, 
                        determination, or acknowledgement in the 
                        records relating to the matter.''.</DELETED>

          <DELETED>Subtitle C--Streamlining and Uniformity of 
                          Procedures</DELETED>

<DELETED>SEC. 721. ADOPTION OF UNIFORM STATE LAWS.</DELETED>

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

<DELETED>SEC. 722. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD 
              SUPPORT ORDERS.</DELETED>

<DELETED>    Section 1738B of title 28, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subsection (a)(2), by striking ``subsection 
        (e)'' and inserting ``subsections (e), (f), and 
        (i)'';</DELETED>
        <DELETED>    (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:</DELETED>
        <DELETED>    ```child's home State' means the State in which a 
        child lived with a parent or a person acting as parent for at 
        least six consecutive months immediately preceding the time of 
        filing of a petition or comparable pleading for support and, if 
        a child is less than six months old, the State in which the 
        child lived from birth with any of them. A period of temporary 
        absence of any of them is counted as part of the six-month 
        period.'';</DELETED>
        <DELETED>    (3) in subsection (c), by inserting ``by a court 
        of a State'' before ``is made'';</DELETED>
        <DELETED>    (4) in subsection (c)(1), by inserting ``and 
        subsections (e), (f), and (g)'' after ``located'';</DELETED>
        <DELETED>    (5) in subsection (d)--</DELETED>
                <DELETED>    (A) by inserting ``individual'' before 
                ``contestant''; and</DELETED>
                <DELETED>    (B) by striking ``subsection (e)'' and 
                inserting ``subsections (e) and (f)'';</DELETED>
        <DELETED>    (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'';</DELETED>
        <DELETED>    (7) in subsection (e)(1), by inserting ``pursuant 
        to subsection (i)'' before the semicolon;</DELETED>
        <DELETED>    (8) in subsection (e)(2)--</DELETED>
                <DELETED>    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; 
                and</DELETED>
                <DELETED>    (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'';</DELETED>
        <DELETED>    (9) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively;</DELETED>
        <DELETED>    (10) by inserting after subsection (e) the 
        following:</DELETED>
<DELETED>    ``(f) Recognition of Child Support Orders.--If one or more 
child support orders have been issued in this or another State with 
regard to an obligor and a child, a court shall apply the following 
rules in determining which order to recognize for purposes of 
continuing, exclusive jurisdiction and enforcement:</DELETED>
        <DELETED>    ``(1) If only one court has issued a child support 
        order, the order of that court must be recognized.</DELETED>
        <DELETED>    ``(2) If two or more courts have issued child 
        support orders for the same obligor and child, and only one of 
        the courts would have continuing, exclusive jurisdiction under 
        this section, the order of that court must be 
        recognized.</DELETED>
        <DELETED>    ``(3) If two or more courts have issued child 
        support orders for the same obligor and child, and only one of 
        the courts would have continuing, exclusive jurisdiction under 
        this section, an order issued by a court in the current home 
        State of the child must be recognized, but if an order has not 
        been issued in the current home State of the child, the order 
        most recently issued must be recognized.</DELETED>
        <DELETED>    ``(4) If two or more courts have issued child 
        support orders for the same obligor and child, and none of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, a court may issue a child support order, which must be 
        recognized.</DELETED>
        <DELETED>    ``(5) The court that has issued an order 
        recognized under this subsection is the court having 
        continuing, exclusive jurisdiction.'';</DELETED>
        <DELETED>    (11) in subsection (g) (as so redesignated)--
        </DELETED>
                <DELETED>    (A) by striking ``Prior'' and inserting 
                ``Modified''; and</DELETED>
                <DELETED>    (B) by striking ``subsection (e)'' and 
                inserting ``subsections (e) and (f)'';</DELETED>
        <DELETED>    (12) in subsection (h) (as so redesignated)--
        </DELETED>
                <DELETED>    (A) in paragraph (2), by inserting 
                ``including the duration of current payments and other 
                obligations of support'' before the comma; 
                and</DELETED>
                <DELETED>    (B) in paragraph (3), by inserting 
                ``arrears under'' after ``enforce''; and</DELETED>
        <DELETED>    (13) by adding at the end the following:</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE 
              CASES.</DELETED>

<DELETED>    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
715 and 717(a) of this Act, is amended by adding at the end the 
following:</DELETED>
        <DELETED>    ``(14) Administrative enforcement in interstate 
        cases.--Procedures under which--</DELETED>
                <DELETED>    ``(A)(i) the State shall respond within 5 
                business days to a request made by another State to 
                enforce a support order; and</DELETED>
                <DELETED>    ``(ii) the term `business day' means a day 
                on which State offices are open for regular 
                business;</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) shall constitute a 
                        certification by the requesting State--
                        </DELETED>
                                <DELETED>    ``(I) of the amount of 
                                support under the order the payment of 
                                which is in arrears; and</DELETED>
                                <DELETED>    ``(II) that the requesting 
                                State has complied with all procedural 
                                due process requirements applicable to 
                                the case;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(D) the State shall maintain records 
                of--</DELETED>
                        <DELETED>    ``(i) the number of such requests 
                        for assistance received by the State;</DELETED>
                        <DELETED>    ``(ii) the number of cases for 
                        which the State collected support in response 
                        to such a request; and</DELETED>
                        <DELETED>    ``(iii) the amount of such 
                        collected support.''.</DELETED>

<DELETED>SEC. 724. USE OF FORMS IN INTERSTATE ENFORCEMENT.</DELETED>

<DELETED>    (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of parargraph 
        (9);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (10) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(11) not later than June 30, 1996, promulgate 
        forms to be used by States in interstate cases for--</DELETED>
                <DELETED>    ``(A) collection of child support through 
                income withholding;</DELETED>
                <DELETED>    ``(B) imposition of liens; and</DELETED>
                <DELETED>    ``(C) administrative 
                subpoenas.''.</DELETED>
<DELETED>    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of subparagraph 
        (C);</DELETED>
        <DELETED>    (2) by inserting ``and'' at the end of 
        subparagraph (D); and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(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;''.</DELETED>

<DELETED>SEC. 725. STATE LAWS PROVIDING EXPEDITED PROCEDURES.</DELETED>

<DELETED>    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
as amended by section 714 of this Act, is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(2), by strking the 1st 
        sentence and inserting the following: ``Expedited 
        administrative and judicial procedures (including the 
        procedures specified in subsection (c)) for establishing 
        paternity and for establishing, modifying, and enforcing 
        support obligations.''; and</DELETED>
        <DELETED>    (2) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) Expedited Procedures.--The procedures specified in 
this subsection are the following:</DELETED>
        <DELETED>    ``(1) Administrative action by state agency.--
        Procedures which give the State agency the authority to take 
        the following actions relating to establishment or enforcement 
        of support orders, without the necessity of obtaining an order 
        from any other judicial or administrative tribunal (but subject 
        to due process safeguards, including (as appropriate) 
        requirements for notice, opportunity to contest the action, and 
        opportunity for an appeal on the record to an independent 
        administrative or judicial tribunal), and to recognize and 
        enforce the authority of State agencies of other States) to 
        take the following actions:</DELETED>
                <DELETED>    ``(A) Genetic testing.--To order genetic 
                testing for the purpose of paternity establishment as 
                provided in section 466(a)(5).</DELETED>
                <DELETED>    ``(B) Default orders.--To enter a default 
                order, upon a showing of service of process and any 
                additional showing required by State law--</DELETED>
                        <DELETED>    ``(i) establishing paternity, in 
                        the case of a putative father who refuses to 
                        submit to genetic testing; and</DELETED>
                        <DELETED>    ``(ii) establishing or modifying a 
                        support obligation, in the case of a parent (or 
                        other obligor or obligee) who fails to respond 
                        to notice to appear at a proceeding for such 
                        purpose.</DELETED>
                <DELETED>    ``(C) Subpoenas.--To subpoena any 
                financial or other information needed to establish, 
                modify, or enforce a support order, and to impose 
                penalties for failure to respond to such a 
                subpoena.</DELETED>
                <DELETED>    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the records of 
                all other State and local government agencies 
                (including law enforcement and corrections records), 
                including automated access to records maintained in 
                automated data bases.</DELETED>
                <DELETED>    ``(E) Change in payee.--In cases where 
                support is subject to an assignment in order to comply 
                with a requirement imposed pursuant to part A or 
                section 1912, or to a requirement to pay through the 
                State disbursement unit established pursuant to section 
                454B, upon providing notice to obligor and obligee, to 
                direct the obligor or other payor to change the payee 
                to the appropriate government entity.</DELETED>
                <DELETED>    ``(F) Income withholding.--To order income 
                withholding in accordance with subsections (a)(1) and 
                (b) of section 466.</DELETED>
                <DELETED>    ``(G) Securing assets.--In cases in which 
                there is a support arrearage, to secure assets to 
                satisfy the arrearage by--</DELETED>
                        <DELETED>    ``(i) intercepting or seizing 
                        periodic or lump sum payments from--</DELETED>
                                <DELETED>    ``(I) a State or local 
                                agency (including unemployment 
                                compensation, workers' compensation, 
                                and other benefits); and</DELETED>
                                <DELETED>    ``(II) judgments, 
                                settlements, and lotteries;</DELETED>
                        <DELETED>    ``(ii) attaching and seizing 
                        assets of the obligor held in financial 
                        institutions; and</DELETED>
                        <DELETED>    ``(iii) attaching public and 
                        private retirement funds.</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(A) Locator information; presumptions 
                concerning notice.--Procedures under which--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) in any subsequent child 
                        support enforcement action between the parties, 
                        upon sufficient showing that diligent effort 
                        has been made to ascertain the location of such 
                        a party, the tribunal may deem State due 
                        process requirements for notice and service of 
                        process to be met with respect to the party, 
                        upon delivery of written notice to the most 
                        recent residential or employer address filed 
                        with the tribunal pursuant to clause 
                        (i).</DELETED>
                <DELETED>    ``(B) Statewide jurisdiction.--Procedures 
                under which--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) in a State in which orders 
                        are issued by courts or administrative 
                        tribunals, a case may be transferred between 
                        administrative areas in the State without need 
                        for any additional filing by the petitioner, or 
                        service of process upon the respondent, to 
                        retain jurisdiction over the 
                        parties.''.</DELETED>
<DELETED>    (b) Automation of State Agency Functions.--Section 454A, 
as added by section 745(a)(2) of this Act and as amended by sections 
711 and 712(c) of this Act, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(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).''.</DELETED>

         <DELETED>Subtitle D--Paternity Establishment</DELETED>

<DELETED>SEC. 731. STATE LAWS CONCERNING PATERNITY 
              ESTABLISHMENT.</DELETED>

<DELETED>    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 
666(a)(5)) is amended to read as follows:</DELETED>
        <DELETED>    ``(5) Procedures concerning paternity 
        establishment.--</DELETED>
                <DELETED>    ``(A) Establishment process available from 
                birth until age 18.--</DELETED>
                        <DELETED>    ``(i) Procedures which permit the 
                        establishment of the paternity of a child at 
                        any time before the child attains 18 years of 
                        age.</DELETED>
                        <DELETED>    ``(ii) As of August 16, 1984, 
                        clause (i) shall also apply to a child for whom 
                        paternity has not been established or for whom 
                        a paternity action was brought but dismissed 
                        becasue a statute of limitations of less than 
                        18 years was then in effect in the 
                        State.</DELETED>
                <DELETED>    ``(B) Procedures concerning genetic 
                testing.--</DELETED>
                        <DELETED>    ``(i) Genetic testing required in 
                        certain contested cases.--Procedures under 
                        which the State is required, in a contested 
                        paternity case, to require the child and all 
                        other parties (other than individuals found 
                        under section 454(28) to have good cause for 
                        refusing to cooperate) to submit to genetic 
                        tests upon the request of any such party if the 
                        request is supported by a sworn statement by 
                        the party--</DELETED>
                                <DELETED>    ``(I) alleging paternity, 
                                and setting forth facts establishing a 
                                reasonable possibility of the requisite 
                                sexual contact between the parties; 
                                or</DELETED>
                                <DELETED>    ``(II) denying paternity, 
                                and setting forth facts establishing a 
                                reasonable possibility of the 
                                nonexistence of sexual contact between 
                                the parties.</DELETED>
                        <DELETED>    ``(ii) Other requirements.--
                        Procedures which require the State agency, in 
                        any case in which the agency orders genetic 
                        testing--</DELETED>
                                <DELETED>    ``(I) to pay costs of such 
                                tests, subject to recoupment (where the 
                                State so elects) from the alleged 
                                father if paternity is established; 
                                and</DELETED>
                                <DELETED>    ``(II) to obtain 
                                additional testing in any case where an 
                                original test result is contested, upon 
                                request and advance payment by the 
                                contestant.</DELETED>
                <DELETED>    ``(C) Voluntary paternity 
                acknowledgment.--</DELETED>
                        <DELETED>    ``(i) Simple civil process.--
                        Procedures for a simple civil process for 
                        voluntarily acknowledging paternity under which 
                        the State must provide that, before a mother 
                        and a putative father can sign an 
                        acknowledgment of paternity, the mother and the 
                        putative father must be given notice, orally, 
                        in writing, and in a language that each can 
                        understand, of the alternatives to, the legal 
                        consequences of, and the rights (including, if 
                        1 parent is a minor, any rights afforded due to 
                        minority status) and responsibilities that 
                        arise from, signing the 
                        acknowledgment.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(iii) Paternity establishment 
                        services.--</DELETED>
                                <DELETED>    ``(I) State-offered 
                                services.--Such procedures must require 
                                the State agency responsible for 
                                maintaining birth records to offer 
                                voluntary paternity establishment 
                                services.</DELETED>
                                <DELETED>    ``(II) Regulations.--
                                </DELETED>
                                        <DELETED>    ``(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.</DELETED>
                                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(iv) Use of federal paternity 
                        acknowledgment affidavit.--Such procedures must 
                        require the State and those required to 
                        establish paternity to use only the affidavit 
                        developed under section 452(a)(7) for the 
                        voluntary acknowledgment of paternity, and to 
                        give full faith and credit to such an affidavit 
                        signed in any other State.</DELETED>
                <DELETED>    ``(D) Status of signed paternity 
                acknowledgment.--</DELETED>
                        <DELETED>    ``(i) Legal finding of 
                        paternity.--Procedures under which a signed 
                        acknowledgment of paternity is considered a 
                        legal finding of paternity, subject to the 
                        right of any signatory to rescind the 
                        acknowledgment within 60 days.</DELETED>
                        <DELETED>    ``(ii) Contest.--Procedures under 
                        which, after the 60-day period referred to in 
                        clause (i), a signed acknowledgment of 
                        paternity may be challenged in court only on 
                        the basis of fraud, duress, or material mistake 
                        of fact, with the burden of proof upon the 
                        challenger, and under which the legal 
                        responsibilities (including child support 
                        obligations) of any signatory arising from the 
                        acknowledgment may not be suspended during the 
                        challenge, except for good cause 
                        shown.</DELETED>
                        <DELETED>    ``(iii) Rescission.--Procedures 
                        under which, after the 60-day period referred 
                        to in clause (i), a minor who has signed an 
                        acknowledgment of paternity other than in the 
                        presence of a parent or court-appointed 
                        guardian ad litem may rescind the 
                        acknowledgment in a judicial or administrative 
                        proceeding, until the earlier of--</DELETED>
                                <DELETED>    ``(I) attaining the age of 
                                majority; or</DELETED>
                                <DELETED>    ``(II) the date of the 
                                first judicial or administrative 
                                proceeding brought (after the signing) 
                                to establish a child support 
                                obligation, visitation rights, or 
                                custody rights with respect to the 
                                child whose paternity is the subject of 
                                the acknowledgment, and at which the 
                                minor is represented by a parent or 
                                guardian ad litem, or an 
                                attorney.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(F) Admissibility of genetic testing 
                results.--Procedures--</DELETED>
                        <DELETED>    ``(i) requiring the admission into 
                        evidence, for purposes of establishing 
                        paternity, of the results of any genetic test 
                        that is--</DELETED>
                                <DELETED>    ``(I) of a type generally 
                                acknowledged as reliable by 
                                accreditation bodies designated by the 
                                Secretary; and</DELETED>
                                <DELETED>    ``(II) performed by a 
                                laboratory approved by such an 
                                accreditation body;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(J) Temporary support order based on 
                probable paternity in contested cases.--Procedures 
                which require that a temporary order be issued, upon 
                motion by a party, requiring the provision of child 
                support pending an administrative or judicial 
                determination of parentage, where there is clear and 
                convincing evidence of paternity (on the basis of 
                genetic tests or other evidence).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(L) Standing of putative fathers.--
                Procedures ensuring that the putative father has a 
                reasonable opportunity to initiate a paternity 
                action.</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) National Paternity Acknowledgment Affidavit.--Section 
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop 
an affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security number of each parent'' before 
the semicolon.</DELETED>
<DELETED>    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is 
amended by striking ``a simple civil process for voluntarily 
acknowledging paternity and''.</DELETED>

<DELETED>SEC. 732. OUTREACH FOR VOLUNTARY PATERNITY 
              ESTABLISHMENT.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 733. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF 
              TEMPORARY FAMILY ASSISTANCE.</DELETED>

<DELETED>    Section 454 (42 U.S.C. 654), as amended by sections 
703(a), 712(a), and 713(a) of this Act, is amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of paragraph 
        (26);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (27) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by inserting after paragraph (27) the 
        following:</DELETED>
        <DELETED>    ``(28) provide that the State agency responsible 
        for administering the State plan--</DELETED>
                <DELETED>    ``(A) shall require each individual who 
                has applied for or is receiving assistance under the 
                State program funded under part A to cooperate with the 
                State in establishing the paternity of, and in 
                establishing, modifying, or enforcing a support order 
                for, any child of the individual by providing the State 
                agency with the name of, and such other information as 
                the State agency may require with respect to, the 
                father of the child, subject to such good cause and 
                other exceptions as the State may establish; 
                and</DELETED>
                <DELETED>    ``(B) may require the individual and the 
                child to submit to genetic tests.''.</DELETED>

   <DELETED>Subtitle E--Program Administration and Funding</DELETED>

<DELETED>SEC. 741. FEDERAL MATCHING PAYMENTS.</DELETED>

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

<DELETED>SEC. 742. PERFORMANCE-BASED INCENTIVES AND 
              PENALTIES.</DELETED>

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

<DELETED>``SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.</DELETED>

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

<DELETED>SEC. 743. FEDERAL AND STATE REVIEWS AND AUDITS.</DELETED>

<DELETED>    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) 
is amended--</DELETED>
        <DELETED>    (1) in paragraph (14), by striking ``(14)'' and 
        inserting ``(14)(A)'';</DELETED>
        <DELETED>    (2) by redesignating paragraph (15) as 
        subparagraph (B) of paragraph (14); and</DELETED>
        <DELETED>    (3) by inserting after paragraph (14) the 
        following:</DELETED>
        <DELETED>    ``(15) provide for--</DELETED>
                <DELETED>    ``(A) a process for annual reviews of and 
                reports to the Secretary on the State program operated 
                under the State plan approved under this part, which 
                shall include such information as may be necessary to 
                measure State compliance with Federal requirements for 
                expedited procedures and timely case processing, using 
                such standards and procedures as are required by the 
                Secretary, under which the State agency will determine 
                the extent to which the program is operated in 
                compliance with this part; and</DELETED>
                <DELETED>    ``(B) a process of extracting from the 
                automated data processing system required by paragraph 
                (16) and transmitting to the Secretary data and 
                calculations concerning the levels of accomplishment 
                (and rates of improvement) with respect to applicable 
                performance indicators (including IV-D paternity 
                establishment percentages and overall performance in 
                child support enforcement) to the extent necessary for 
                purposes of sections 452(g) and 458.''.</DELETED>
<DELETED>    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 
652(a)(4)) is amended to read as follows:</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(C) conduct audits, in accordance with the 
        government auditing standards of the Comptroller General of the 
        United States--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(ii) of the adequacy of financial 
                management of the State program operated under the 
                State plan approved under this part, including 
                assessments of--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(II) whether collections and 
                        disbursements of support payments are carried 
                        out correctly and are fully accounted for; 
                        and</DELETED>
                <DELETED>    ``(iii) for such other purposes as the 
                Secretary may find necessary;''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall be effective with respect to calendar quarters beginning 12 
months or more after the date of the enactment of this 
section.</DELETED>

<DELETED>SEC. 744. REQUIRED REPORTING PROCEDURES.</DELETED>

<DELETED>    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 
652(a)(5)) is amended by inserting ``, and establish procedures to be 
followed by States for collecting and reporting information required to 
be provided under this part, and establish uniform definitions 
(including those necessary to enable the measurement of State 
compliance with the requirements of this part relating to expedited 
processes and timely case processing) to be applied in following such 
procedures'' before the semicolon.</DELETED>
<DELETED>    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
as amended by sections 703(a), 712(a), 713(a), and 733 of this Act, is 
amended--</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of paragraph 
        (27);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (28) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding after paragraph (28) the 
        following:</DELETED>
        <DELETED>    ``(29) provide that the State shall use the 
        definitions established under section 452(a)(5) in collecting 
        and reporting information as required under this 
        part.''.</DELETED>

<DELETED>SEC. 745. AUTOMATED DATA PROCESSING REQUIREMENTS.</DELETED>

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

<DELETED>``SEC. 454A. AUTOMATED DATA PROCESSING.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) controlling and accounting for use of 
        Federal, State, and local funds in carrying out the program; 
        and</DELETED>
        <DELETED>    ``(2) maintaining the data necessary to meet 
        Federal reporting requirements under this part on a timely 
        basis.</DELETED>
<DELETED>    ``(c) Calculation of Performance Indicators.--In order to 
enable the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--</DELETED>
        <DELETED>    ``(1) use the automated system--</DELETED>
                <DELETED>    ``(A) to maintain the requisite data on 
                State performance with respect to paternity 
                establishment and child support enforcement in the 
                State; and</DELETED>
                <DELETED>    ``(B) to calculate the IV-D paternity 
                establishment percentage and overall performance in 
                child support enforcement for the State for each fiscal 
                year; and</DELETED>
        <DELETED>    ``(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).</DELETED>
<DELETED>    ``(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):</DELETED>
        <DELETED>    ``(1) Policies restricting access.--Written 
        policies concerning access to data by State agency personnel, 
        and sharing of data with other persons, which--</DELETED>
                <DELETED>    ``(A) permit access to and use of data 
                only to the extent necessary to carry out the State 
                program under this part; and</DELETED>
                <DELETED>    ``(B) specify the data which may be used 
                for particular program purposes, and the personnel 
                permitted access to such data.</DELETED>
        <DELETED>    ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies described in paragraph (1).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(5) Penalties.--Administrative penalties (up to 
        and including dismissal from employment) for unauthorized 
        access to, or disclosure or use of, confidential 
        data.''.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Implementation timetable.--Section 454(24) (42 
        U.S.C. 654(24)), as amended by sections 703(a)(2) and 712(a)(1) 
        of this Act, is amended to read as follows:</DELETED>
        <DELETED>    ``(24) provide that the State will have in effect 
        an automated data processing and information retrieval system--
        </DELETED>
                <DELETED>    ``(A) by October 1, 1995, which meets all 
                requirements of this part which were enacted on or 
                before the date of enactment of the Family Support Act 
                of 1988; and</DELETED>
                <DELETED>    ``(B) by October 1, 1999, which meets all 
                requirements of this part enacted on or before the date 
                of the enactment of the Personal Responsibility Act of 
                1995, except that such deadline shall be extended by 1 
                day for each day (if any) by which the Secretary fails 
                to meet the deadline imposed by section 745(a)(3) of 
                the Personal Responsibility Act of 1995.''.</DELETED>
<DELETED>    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--</DELETED>
        <DELETED>    (1) In general.--Section 455(a) (42 U.S.C. 655(a)) 
        is amended--</DELETED>
                <DELETED>    (A) in paragraph (1)(B)--</DELETED>
                        <DELETED>    (i) by striking ``90 percent'' and 
                        inserting ``the percent specified in paragraph 
                        (3)'';</DELETED>
                        <DELETED>    (ii) by striking ``so much of''; 
                        and</DELETED>
                        <DELETED>    (iii) by striking ``which the 
                        Secretary'' and all that follows and inserting 
                        ``, and''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(3)(A) The Secretary shall pay to each State, for each 
quarter in fiscal year 1996, 90 percent of so much of the State 
expenditures described in paragraph (1)(B) as the Secretary finds are 
for a system meeting the requirements specified in section 
454(16).</DELETED>
<DELETED>    ``(B)(i) The Secretary shall pay to each State, for each 
quarter in fiscal years 1997 through 2001, the percentage specified in 
clause (ii) of so much of the State expenditures described in paragraph 
(1)(B) as the Secretary finds are for a system meeting the requirements 
of sections 454(16) and 454A.</DELETED>
<DELETED>    ``(ii) The percentage specified in this clause is the 
greater of--</DELETED>
        <DELETED>    ``(I) 80 percent; or</DELETED>
        <DELETED>    ``(II) the percentage otherwise applicable to 
        Federal payments to the State under subparagraph (A) (as 
        adjusted pursuant to section 458).''.</DELETED>
        <DELETED>    (2) Temporary limitation on payments under special 
        federal matching rate.--</DELETED>
                <DELETED>    (A) In general.--The Secretary of Health 
                and Human Services may not pay more than $260,000,000 
                in the aggregate under section 455(a)(3) of the Social 
                Security Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000.</DELETED>
                <DELETED>    (B) Allocation of limitation among 
                states.--The total amount payable to a State under 
                section 455(a)(3) of such Act for fiscal years 1996, 
                1997, 1998, 1999, and 2000 shall not exceed the 
                limitation determined for the State by the Secretary of 
                Health and Human Services in regulations.</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) the relative size of State 
                        caseloads under such part; and</DELETED>
                        <DELETED>    (ii) the level of automation 
                        needed to meet the automated data processing 
                        requirements of such part.</DELETED>
<DELETED>    (c) Conforming Amendment.--Section 123(c) of the Family 
Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is 
repealed.</DELETED>

<DELETED>SEC. 746. TECHNICAL ASSISTANCE.</DELETED>

<DELETED>    (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:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) research, demonstration, and special 
        projects of regional or national significance relating to the 
        operation of State programs under this part.''.</DELETED>
<DELETED>    (b) Operation of Federal Parent Locator Service.--Section 
453 (42 U.S.C. 653), as amended by section 716(e) of this Act, is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(n) Out of any money in the Treasury of the United 
States not otherwise appropriated, there is hereby appropriated to the 
Secretary for each fiscal year an amount equal to 2 percent of the 
total amount paid to the Federal Government pursuant to section 457(a) 
during the immediately preceding fiscal year (as determined on the 
basis of the most recent reliable data available to the Secretary as of 
the end of the 3rd calendar quarter following the end of such preceding 
fiscal year), to cover costs incurred by the Secretary for operation of 
the Federal Parent Locator Service under this section, to the extent 
such costs are not recovered through user fees.''.</DELETED>

<DELETED>SEC. 747. REPORTS AND DATA COLLECTION BY THE 
              SECRETARY.</DELETED>

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

    <DELETED>Subtitle F--Establishment and Modification of Support 
                            Orders</DELETED>

<DELETED>SEC. 751. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
              CHILD SUPPORT ORDERS.</DELETED>

<DELETED>    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
read as follows:</DELETED>
        <DELETED>    ``(10) Review and adjustment of support orders.--
        Procedures under which the State shall review and adjust each 
        support order being enforced under this part. Such procedures 
        shall provide the following:</DELETED>
                <DELETED>    ``(A) The State shall review and, as 
                appropriate, adjust the support order every 3 years, 
                taking into account the best interests of the child 
                involved.</DELETED>
                <DELETED>    ``(B)(i) The State may elect to review 
                and, if appropriate, adjust an order pursuant to 
                subparagraph (A) by--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(ii) Any adjustment under clause (i) 
                shall be made without a requirement for proof or 
                showing of a change in circumstances.</DELETED>
                <DELETED>    ``(C) The State may use automated methods 
                (including automated comparisons with wage or State 
                income tax data) to identify orders eligible for 
                review, conduct the review, identify orders eligible 
                for adjustment, apply the appropriate adjustment to the 
                orders eligible for adjustment under the threshold 
                established by the State.</DELETED>
                <DELETED>    ``(D) The State shall, at the request of 
                either parent subject to such an order or of any State 
                child support enforcement agency, review and, if 
                appropriate, adjust the order in accordance with the 
                guidelines established pursuant to section 467(a) based 
                upon a substantial change in the circumstances of 
                either parent.</DELETED>
                <DELETED>    ``(E) The State shall provide notice to 
                the parents subject to such an order informing them of 
                their right to request the State to review and, if 
                appropriate, adjust the order pursuant to subparagraph 
                (D). The notice may be included in the 
                order.''.</DELETED>

<DELETED>SEC. 752. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES 
              RELATING TO CHILD SUPPORT.</DELETED>

<DELETED>    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
1681b) is amended by adding at the end the following:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) the person has provided at least 10 
                days prior notice to the consumer whose report is 
                requested, by certified or registered mail to the last 
                known address of the consumer, that the report will be 
                requested, and</DELETED>
                <DELETED>    ``(C) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be used in 
                connection with any other civil, administrative, or 
                criminal proceeding, or for any other 
                purpose.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

      <DELETED>Subtitle G--Enforcement of Support Orders</DELETED>

<DELETED>SEC. 761. FEDERAL INCOME TAX REFUND OFFSET.</DELETED>

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

<DELETED>SEC. 762. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL 
              EMPLOYEES.</DELETED>

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

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

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Designation of Agent; Response to Notice or 
Process--</DELETED>
        <DELETED>    ``(1) Designation of agent.--The head of each 
        agency subject to this section shall--</DELETED>
                <DELETED>    ``(A) designate an agent or agents to 
                receive orders and accept service of process in matters 
                relating to child support or alimony; and</DELETED>
                <DELETED>    ``(B) annually publish in the Federal 
                Register the designation of the agent or agents, 
                identified by title or position, mailing address, and 
                telephone number.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) support collection under section 466(b) must 
        be given priority over any other process, as provided in 
        section 466(b)(7);</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Relief From Liability.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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)--</DELETED>
        <DELETED>    ``(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);</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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).</DELETED>
<DELETED>    ``(h) Moneys Subject to Process.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) consist of--</DELETED>
                        <DELETED>    ``(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);</DELETED>
                        <DELETED>    ``(ii) periodic benefits 
                        (including a periodic benefit as defined in 
                        section 228(h)(3)) or other payments--
                        </DELETED>
                                <DELETED>    ``(I) under the insurance 
                                system established by title 
                                II;</DELETED>
                                <DELETED>    ``(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;</DELETED>
                                <DELETED>    ``(III) as compensation 
                                for death under any Federal 
                                program;</DELETED>
                                <DELETED>    ``(IV) under any Federal 
                                program established to provide `black 
                                lung' benefits; or</DELETED>
                                <DELETED>    ``(V) by the Secretary of 
                                Veterans Affairs as pension, or as 
                                compensation for a service-connected 
                                disability or death (except any 
                                compensation paid by the Secretary to a 
                                member of the Armed Forces who is in 
                                receipt of retired or retainer pay if 
                                the member has waived a portion of the 
                                retired pay of the member in order to 
                                receive the compensation); 
                                and</DELETED>
                        <DELETED>    ``(iii) worker's compensation 
                        benefits paid under Federal or State law 
                        but</DELETED>
                <DELETED>    ``(B) do not include any payment--
                </DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) are owed by the individual to the 
                United States;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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);</DELETED>
                <DELETED>    ``(D) are deducted as health insurance 
                premiums;</DELETED>
                <DELETED>    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or</DELETED>
                <DELETED>    ``(F) are deducted as normal life 
                insurance premiums from salary or other remuneration 
                for employment (not including amounts deducted for 
                supplementary coverage).</DELETED>
<DELETED>    ``(i) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Child support.--The term `child support', 
        when used in reference to the legal obligations of an 
        individual to provide such support, means periodic payments of 
        funds for the support and maintenance of a child or children 
        with respect to which the individual has such an obligation, 
        and (subject to and in accordance with State law) includes 
        payments to provide for health care, education, recreation, 
        clothing, or to meet other specific needs of such a child or 
        children, and includes attorney's fees, interest, and court 
        costs, when and to the extent that the same are expressly made 
        recoverable as such pursuant to a decree, order, or judgment 
        issued in accordance with applicable State law by a court of 
        competent jurisdiction.</DELETED>
        <DELETED>    ``(3) Alimony.--The term `alimony', when used in 
        reference to the legal obligations of an individual to provide 
        the same, means periodic payments of funds for the support and 
        maintenance of the spouse (or former spouse) of the individual, 
        and (subject to and in accordance with State law) includes 
        separate maintenance, alimony pendente lite, maintenance, and 
        spousal support, and includes attorney's fees, interest, and 
        court costs when and to the extent that the same are expressly 
        made recoverable as such pursuant to a decree, order, or 
        judgment issued in accordance with applicable State law by a 
        court of competent jurisdiction. Such term does not include any 
        payment or transfer of property or its value by an individual 
        to the spouse or a former spouse of the individual in 
        compliance with any community property settlement, equitable 
        distribution of property, or other division of property between 
        spouses or former spouses.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(5) Legal process.--The term `legal process' 
        means any writ, order, summons, or other similar process in the 
        nature of garnishment--</DELETED>
                <DELETED>    ``(A) which is issued by--</DELETED>
                        <DELETED>    ``(i) a court of competent 
                        jurisdiction in any State, territory, or 
                        possession of the United States;</DELETED>
                        <DELETED>    ``(ii) a court of competent 
                        jurisdiction in any foreign country with which 
                        the United States has entered into an agreement 
                        which requires the United States to honor the 
                        process; or</DELETED>
                        <DELETED>    ``(iii) an authorized official 
                        pursuant to an order of such a court of 
                        competent jurisdiction or pursuant to State or 
                        local law; and</DELETED>
                <DELETED>    ``(B) which is directed to, and the 
                purpose of which is to compel, a governmental entity 
                which holds moneys which are otherwise payable to an 
                individual to make a payment from the moneys to another 
                party in order to satisfy a legal obligation of the 
                individual to provide child support or make alimony 
                payments.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) To part d of title iv.--Sections 461 and 462 
        (42 U.S.C. 661 and 662) are repealed.</DELETED>
        <DELETED>    (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)''.</DELETED>
<DELETED>    (c) Military Retired and Retainer Pay.--</DELETED>
        <DELETED>    (1) Definition of court.--Section 1408(a)(1) of 
        title 10, United States Code, is amended--</DELETED>
                <DELETED>    (A) by striking ``and'' at the end of 
                subparagraph (B);</DELETED>
                <DELETED>    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and</DELETED>
                <DELETED>    (C) by adding after subparagraph (C) the 
                following:</DELETED>
                <DELETED>    ``(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.''.</DELETED>
        <DELETED>    (2) Definition of court order.--Section 1408(a)(2) 
        of such title is amended by inserting ``or a court order for 
        the payment of child support not included in or accompanied by 
        such a decree or settlement,'' before ``which--''.</DELETED>
        <DELETED>    (3) Public payee.--Section 1408(d) of such title 
        is amended--</DELETED>
                <DELETED>    (A) in the heading, by inserting ``(or for 
                Benefit of)'' before ``Spouse or''; and</DELETED>
                <DELETED>    (B) in paragraph (1), in the first 
                sentence, by inserting ``(or for the benefit of such 
                spouse or former spouse to a State disbursement unit 
                established pursuant to section 454B of the Social 
                Security Act or other public payee designated by a 
                State, in accordance with part D of title IV of the 
                Social Security Act, as directed by court order, or as 
                otherwise directed in accordance with such part D)'' 
                before ``in an amount sufficient''.</DELETED>
        <DELETED>    (4) Relationship to part d of title iv.--Section 
        1408 of such title is amended by adding at the end the 
        following:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (d) Effective Date.--The amendments made by this section 
shall become effective 6 months after the date of the enactment of this 
Act.</DELETED>

<DELETED>SEC. 763. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS 
              OF THE ARMED FORCES.</DELETED>

<DELETED>    (a) Availability of Locator Information.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Type of address.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) who is permanently assigned 
                        overseas, to a vessel, or to a routinely 
                        deployable unit; or</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Facilitating Granting of Leave for Attendance at 
Hearings.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the leave is needed for the member to 
                attend a hearing described in paragraph (2);</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) to determine whether a member of the 
                Armed Forces is a natural parent of a child; 
                or</DELETED>
                <DELETED>    (B) to determine an obligation of a member 
                of the Armed Forces to provide child support.</DELETED>
        <DELETED>    (3) Definitions.--For purposes of this 
        subsection:</DELETED>
                <DELETED>    (A) The term ``court'' has the meaning 
                given that term in section 1408(a) of title 10, United 
                States Code.</DELETED>
                <DELETED>    (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)).</DELETED>
<DELETED>    (c) Payment of Military Retired Pay in Compliance With 
Child Support Orders.--</DELETED>
        <DELETED>    (1) Date of certification of court order.--Section 
        1408 of title 10, United States Code, as amended by section 
        762(c)(4) of this Act, is amended--</DELETED>
                <DELETED>    (A) by redesignating subsections (i) and 
                (j) as subsections (j) and (k), respectively; 
                and</DELETED>
                <DELETED>    (B) by inserting after subsection (h) the 
                following:</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (2) Payments consistent with assignments of rights 
        to states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following: ``In the case 
        of a spouse or former spouse who, pursuant to section 405(a)(8) 
        of the Social Security Act (42 U.S.C. 605(a)(8)), assigns to a 
        State the rights of the spouse or former spouse to receive 
        support, the Secretary concerned may make the child support 
        payments referred to in the preceding sentence to that State in 
        amounts consistent with that assignment of rights.''.</DELETED>
        <DELETED>    (3) Arrearages owed by members of the uniformed 
        services.--Section 1408(d) of such title is amended by adding 
        at the end the following:</DELETED>
<DELETED>    ``(6) In the case of a court order for which effective 
service is made on the Secretary concerned on or after the date of the 
enactment of this paragraph and which provides for payments from the 
disposable retired pay of a member to satisy the amount of child 
support set forth in the order, the authority provided in paragraph (1) 
to make payments from the disposable retired pay of a member to satisy 
the amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.</DELETED>
        <DELETED>    (4) Payroll deductions.--The Secretary of Defense 
        shall begin payroll deductions within 30 days after receiving 
        notice of withholding, or for the first pay period that begins 
        after such 30-day period.</DELETED>

<DELETED>SEC. 764. VOIDING OF FRAUDULENT TRANSFERS.</DELETED>

<DELETED>    Section 466 (42 U.S.C. 666), as amended by section 721 of 
this Act, is amended by adding at the end the following:</DELETED>
<DELETED>    ``(g) Laws Voiding Fraudulent Transfers.--In order to 
satisfy section 454(20)(A), each State must have in effect--</DELETED>
        <DELETED>    ``(1)(A) the Uniform Fraudulent Conveyance Act of 
        1981;</DELETED>
                <DELETED>    ``(B) the Uniform Fraudulent Transfer Act 
                of 1984; or</DELETED>
                <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) seek to void such transfer; 
                or</DELETED>
                <DELETED>    ``(B) obtain a settlement in the best 
                interests of the child support creditor.''.</DELETED>

<DELETED>SEC. 765. SENSE OF THE CONGRESS THAT STATES SHOULD SUSPEND 
              DRIVERS', BUSINESS, AND OCCUPATIONAL LICENSES OF PERSONS 
              OWING PAST-DUE CHILD SUPPORT.</DELETED>

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

<DELETED>SEC. 766. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD 
              SUPPORT.</DELETED>

<DELETED>    Section 466(a) of the Social Security Act (42 U.S.C. 
666(a)), as amended by sections 701(a), 715, 717(a), and 723 of this 
Act, is amended by adding at the end the following:</DELETED>
        <DELETED>    ``(16) Procedures to ensure that persons owing 
        past-due support work or have a plan for payment of such 
        support.--</DELETED>
                <DELETED>    ``(A) Procedures requiring the State, in 
                any case in which an individual owes past-due support 
                with respect to a child receiving assistance under a 
                State program funded under part A, to seek a court 
                order that requires the individual to--</DELETED>
                        <DELETED>    ``(i) pay such support in 
                        accordance with a plan approved by the court; 
                        or</DELETED>
                        <DELETED>    ``(ii) if the individual is 
                        subject to such a plan and is not 
                        incapacitated, participate in such work 
                        activities (as defined in section 404(b)(1)) as 
                        the court deems appropriate.</DELETED>
                <DELETED>    ``(B) As used in subparagraph (A), the 
                term `past-due support' means the amount of a 
                delinquency, determined under a court order, or an 
                order of an administrative process established under 
                State law, for support and maintenance of a child, or 
                of a child and the parent with whom the child is 
                living.''.</DELETED>

<DELETED>SEC. 767. DEFINITION OF SUPPORT ORDER.</DELETED>

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

<DELETED>SEC. 768. LIENS.</DELETED>

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

<DELETED>SEC. 769. STATE LAW AUTHORIZING SUSPENSION OF 
              LICENSES.</DELETED>

<DELETED>    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
715, 717(a), and 723 of this Act, is amended by adding at the end the 
following:</DELETED>
        <DELETED>    ``(15) 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.''.</DELETED>

             <DELETED>Subtitle H--Medical Support</DELETED>

<DELETED>SEC. 771. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL 
              CHILD SUPPORT ORDER.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) by striking ``issued by a court of competent 
        jurisdiction'';</DELETED>
        <DELETED>    (2) by striking the period at the end of clause 
        (ii) and inserting a comma; and</DELETED>
        <DELETED>    (3) by adding, after and below clause (ii), the 
        following:</DELETED>
                <DELETED>``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.''.</DELETED>
<DELETED>    (b) Effective Date.--</DELETED>
        <DELETED>    (1) In general.--The amendments made by this 
        section shall take effect on the date of the enactment of this 
        Act.</DELETED>
        <DELETED>    (2) Plan amendments not required until january 1, 
        1996.--Any amendment to a plan required to be made by an 
        amendment made by this section shall not be required to be made 
        before the first plan year beginning on or after January 1, 
        1996, if--</DELETED>
                <DELETED>    (A) during the period after the date 
                before the date of the enactment of this Act and before 
                such first plan year, the plan is operated in 
                accordance with the requirements of the amendments made 
                by this section; and</DELETED>
                <DELETED>    (B) such plan amendment applies 
                retroactively to the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year.</DELETED>
        <DELETED>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.</DELETED>

<DELETED>Subtitle I--Enhancing Responsibility and Opportunity for Non- 
                     residential Parents</DELETED>

<DELETED>SEC. 781. GRANTS TO STATES FOR ACCESS AND VISITATION 
              PROGRAMS.</DELETED>

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

<DELETED>``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION 
              PROGRAMS.</DELETED>

<DELETED>    ``(a) In General.--The Administration for Children and 
Families shall make grants under this section to enable States to 
establish and administer programs to support and facilitate absent 
parents' access to and visitation of their children, by means of 
activities including mediation (both voluntary and mandatory), 
counseling, education, development of parenting plans, visitation 
enforcement (including monitoring, supervision and neutral drop-off and 
pickup), and development of guidelines for visitation and alternative 
custody arrangements.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) 90 percent of State expenditures during the 
        fiscal year for activities described in subsection (a); 
        or</DELETED>
        <DELETED>    ``(2) the allotment of the State under subsection 
        (c) for the fiscal year.</DELETED>
<DELETED>    ``(c) Allotments to States.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) $50,000 for fiscal year 1996 or 
                1997; or</DELETED>
                <DELETED>    ``(B) $100,000 for any succeeding fiscal 
                year.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) State Administration.--Each State to which a grant 
is made under this section--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) shall not be required to operate such 
        programs on a statewide basis; and</DELETED>
        <DELETED>    ``(3) shall monitor, evaluate, and report on such 
        programs in accordance with regulations prescribed by the 
        Secretary.''.</DELETED>

           <DELETED>Subtitle J--Effect of Enactment</DELETED>

<DELETED>SEC. 791. EFFECTIVE DATES.</DELETED>

<DELETED>    (a) In General.--Except as otherwise specifically provided 
(but subject to subsections (b) and (c))--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) all other provisions of this title shall 
        become effective upon enactment.</DELETED>
<DELETED>    (b) Grace Period for State Law Changes.--The provisions of 
this title shall become effective with respect to a State on the later 
of--</DELETED>
        <DELETED>    (1) the date specified in this title, or</DELETED>
        <DELETED>    (2) the effective date of laws enacted by the 
        legislature of such State implementing such 
        provisions,</DELETED>
<DELETED>but in no event later than the first day of the first calendar 
quarter beginning after the close of the first regular session of the 
State legislature that begins after the date of the enactment of this 
Act. For purposes of the previous sentence, in the case of a State that 
has a 2-year legislative session, each year of such session shall be 
deemed to be a separate regular session of the State 
legislature.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) 1 year after the effective date of the 
        necessary State constitutional amendment; or</DELETED>
        <DELETED>    (2) 5 years after the date of the enactment of 
        this title.</DELETED>

        <DELETED>TITLE VIII--MISCELLANEOUS PROVISIONS</DELETED>

<DELETED>SEC. 801. SCORING.</DELETED>

<DELETED>    Section 251(b)(2) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended by adding at the end the 
following new subparagraph:</DELETED>
        <DELETED>    ``(H) Special allowance for welfare reform.--For 
        any fiscal year, the adjustments shall be appropriations for 
        discretionary programs resulting from the Personal 
        Responsibility Act of 1995 (as described in the joint 
        explanatory statement accompanying a conference report on that 
        Act) in discretionary accounts and the outlays flowing in all 
        years from such appropriations (but not to exceed amounts 
        authorized for those programs by that Act for that fiscal year) 
        minus appropriations for comparable discretionary programs for 
        fiscal year 1995 (as described in the joint explanatory 
        statement accompanying a conference report on that 
        Act.''.</DELETED>

<DELETED>SEC. 802. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER 
              SYSTEMS.</DELETED>

<DELETED>    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 
1693b) is amended--</DELETED>
        <DELETED>    (1) by striking ``(d) In the event'' and inserting 
        ``(d) Applicability to Service Providers Other Than Certain 
        Financial Institutions.--</DELETED>
        <DELETED>    ``(1) In general.--In the event''; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) State and local government electronic 
        benefit transfer programs.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Rule of construction.--No provision 
                of this paragraph may be construed as--</DELETED>
                        <DELETED>    ``(i) affecting or altering the 
                        protections otherwise applicable with respect 
                        to benefits established by Federal, State, or 
                        local law; or</DELETED>
                        <DELETED>    ``(ii) otherwise superseding the 
                        application of any State or local 
                        law.</DELETED>
                <DELETED>    ``(D) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the term 
                `electronic benefit transfer program'--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) does not include 
                        employment-related payments, including salaries 
                        and pension, retirement, or unemployment 
                        benefits established by Federal, State, or 
                        local governments.''.</DELETED>
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Family Self-
Sufficiency Act of 1995''.
    (b) Reference to Social Security Act.--Except as otherwise 
specifically provided, wherever in this Act 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.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.

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

Sec. 101. Block grants to States.
Sec. 102. Report on data processing.
Sec. 103. Continued application of current standards under medicaid 
                            program.
Sec. 104. Waivers.
Sec. 105. Deemed income requirement for Federal and federally funded 
                            programs under the Social Security Act.
Sec. 106. Conforming amendments to the Social Security Act.
Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and 
                            related provisions.
Sec. 108. Conforming amendments to other laws.
Sec. 109. Secretarial submission of legislative proposal for technical 
                            and conforming amendments.
Sec. 110. Effective date; transition rule.

              TITLE II--MODIFICATIONS TO THE JOBS PROGRAM

Sec. 201. Modifications to the JOBS program.
Sec. 202. Effective date.

                TITLE III--SUPPLEMENTAL SECURITY INCOME

                  Subtitle A--Eligibility Restrictions

Sec. 301. Denial of supplemental security income benefits by reason of 
                            disability to drug addicts and alcoholics.
Sec. 302. Limited eligibility of noncitizens for SSI benefits.
Sec. 303. 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. 304. Denial of SSI benefits for fugitive felons and probation and 
                            parole violators.
Sec. 305. Effective dates; application to current recipients.

               Subtitle B--Benefits for Disabled Children

Sec. 311. Restrictions on eligibility for benefits.
Sec. 312. Continuing disability reviews.
Sec. 313. Treatment requirements for disabled individuals under the age 
                            of 18.

         Subtitle C--Study of Disability Determination Process

Sec. 321. Study of disability determination process.

      Subtitle D--National Commission on the Future of Disability

Sec. 331. Establishment.
Sec. 332. Duties of the Commission.
Sec. 333. Membership.
Sec. 334. Staff and support services.
Sec. 335. Powers of Commission.
Sec. 336. Reports.
Sec. 337. Termination.

                        TITLE IV--CHILD SUPPORT

     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 401. State obligation to provide child support enforcement 
                            services.
Sec. 402. Distribution of child support collections.
Sec. 403. Rights to notification and hearings.
Sec. 404. Privacy safeguards.

                  Subtitle B--Locate and Case Tracking

Sec. 411. State case registry.
Sec. 412. Collection and disbursement of support payments.
Sec. 413. State directory of new hires.
Sec. 414. Amendments concerning income withholding.
Sec. 415. Locator information from interstate networks.
Sec. 416. Expansion of the Federal parent locator service.
Sec. 417. Collection and use of social security numbers for use in 
                            child support enforcement.

         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 421. Adoption of uniform State laws.
Sec. 422. Improvements to full faith and credit for child support 
                            orders.
Sec. 423. Administrative enforcement in interstate cases.
Sec. 424. Use of forms in interstate enforcement.
Sec. 425. State laws providing expedited procedures.

                  Subtitle D--Paternity Establishment

Sec. 431. State laws concerning paternity establishment.
Sec. 432. Outreach for voluntary paternity establishment.
Sec. 433. Cooperation by applicants for and recipients of temporary 
                            family assistance.

             Subtitle E--Program Administration and Funding

Sec. 441. Federal matching payments.
Sec. 442. Performance-based incentives and penalties.
Sec. 443. Federal and State reviews and audits.
Sec. 444. Required reporting procedures.
Sec. 445. Automated data processing requirements.
Sec. 446. Technical assistance.
Sec. 447. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 451. National Child Support Guidelines Commission.
Sec. 452. Simplified process for review and adjustment of child support 
                            orders.
Sec. 453. Furnishing consumer reports for certain purposes relating to 
                            child support.
Sec. 454. Nonliability for depository institutions providing financial 
                            records to State child support enforcement 
                            agencies in child support cases.

               Subtitle G--Enforcement of Support Orders

Sec. 461. Federal income tax refund offset.
Sec. 462. Internal Revenue Service collection of arrearages.
Sec. 463. Authority to collect support from Federal employees.
Sec. 464. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 465. Voiding of fraudulent transfers.
Sec. 466. Work requirement for persons owing child support.
Sec. 467. Definition of support order.
Sec. 468. Reporting arrearages to credit bureaus.
Sec. 469. Liens.
Sec. 470. State law authorizing suspension of licenses.
Sec. 471. Denial of passports for nonpayment of child support.

                      Subtitle H--Medical Support

Sec. 475. Technical correction to ERISA definition of medical child 
                            support order.
Sec. 476. Enforcement of orders for health care coverage.

Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

Sec. 481. Grants to States for access and visitation programs.

                    Subtitle J--Effect of Enactment

Sec. 491. Effective dates.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

SEC. 101. 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 WITH MINOR CHILDREN

``SEC. 401. PURPOSE.

    ``The purpose of this part is to increase the flexibility of States 
in operating a program designed to--
            ``(1) provide assistance to needy families with minor 
        children;
            ``(2) provide job preparation and opportunities for such 
        families; and
            ``(3) prevent and reduce the incidence of out-of-wedlock 
        pregnancies.

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

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of family assistance program.--A written 
        document that outlines how the State intends to do the 
        following:
                    ``(A) Conduct a program designed to serve all 
                political subdivisions in the State to--
                            ``(i) provide assistance to needy families 
                        with not less than 1 minor child; and
                            ``(ii) provide a parent or caretaker in 
                        such families with work experience, assistance 
                        in finding employment, and other work 
                        preparation activities and support services 
                        that the State considers appropriate to enable 
                        such families to leave the program and become 
                        self-sufficient.
                    ``(B) Require a parent or caretaker receiving 
                assistance under the program for more than 24 months 
                (whether or not consecutive), or at the option of the 
                State, a lesser period, to engage in work activities in 
                accordance with section 404 and part F.
                    ``(C) Satisfy the minimum participation rates 
                specified in section 404.
                    ``(D) Treat--
                            ``(i) families with minor children moving 
                        into the State from another State; and
                            ``(ii) noncitizens of the United States.
                    ``(E) Safeguard and restrict the use and disclosure 
                of information about individuals and families receiving 
                assistance under the program.
                    ``(F) Take action to prevent and reduce the 
                incidence of out-of-wedlock pregnancies, with special 
                emphasis on teenage pregnancies.
            ``(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, in a manner that 
        complies with the requirements of such part.
            ``(3) Certification that the state will operate a child 
        protection program.--A certification by the chief executive 
        officer of the State that, during the fiscal year, the State 
        will operate a child protection program in accordance with part 
        B.
            ``(4) Certification that the state will operate a foster 
        care and adoption assistance program.--A certification by the 
        chief executive officer of the State that, during the fiscal 
        year, the State will operate a foster care and adoption 
        assistance program in accordance with part E.
            ``(5) Certification that the state will operate a jobs 
        program.--A certification by the chief executive officer of the 
        State that, during the fiscal year, the State will operate a 
        JOBS program in accordance with part F.
            ``(6) Certification that the state will participate in the 
        income and eligibility verification system.--A certification by 
        the chief executive officer of the State that, during the 
        fiscal year, the State will participate in the income and 
        eligibility verification system required by section 1137.
            ``(7) Certification of the administration of the program.--
        The chief executive officer of the State shall certify which 
        State agency or agencies are responsible for the administration 
        and supervision of the State program for the fiscal year.
            ``(8) Certification that required reports will be 
        submitted.--A certification by the chief executive officer of 
        the State that the State shall provide the Secretary with any 
        reports required under this part and part F.
            ``(9) Estimate of fiscal year state and local 
        expenditures.--An estimate of the total amount of State and 
        local expenditures under the State program for the fiscal year.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a).
    ``(c) Definitions.--For purposes of this part, the following 
definitions shall apply:
            ``(1) Minor child.--The term `minor child' means an 
        individual--
                    ``(A) who--
                            ``(i) has not attained 18 years of age; or
                            ``(ii) has--
                                    ``(I) not attained 19 years of age; 
                                and
                                    ``(II) is a full-time student in a 
                                secondary school (or in the equivalent 
                                level of vocational or technical 
                                training); and
                    ``(B) who resides with such individual's custodial 
                parent or other caretaker relative.
            ``(2) Work activity.--The term `work activity' means an 
        activity described in section 482.
            ``(3) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(4) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.

``SEC. 403. PAYMENTS TO STATES.

    ``(a) Entitlement.--
            ``(1) In general.--Subject to the provisions of section 
        406, the Secretary shall pay to each eligible State for each of 
        fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in an 
        amount equal to the State family assistance grant for the 
        fiscal year.
            ``(2) Appropriation.--
                    ``(A) States.--There are authorized to be 
                appropriated and there are appropriated $16,779,000,000 
                for each fiscal year described in paragraph (1) for the 
                purpose of paying State family assistance grants to 
                States under such paragraph.
                    ``(B) Indian tribes.--There are authorized to be 
                appropriated and there are appropriated $7,638,474 for 
                each fiscal year described in paragraph (1) for the 
                purpose of paying State family assistance grants to 
                Indian tribes under such paragraph in accordance with 
                section 482(i).
    ``(b) State Family Assistance Grant.--
            ``(1) In general.--For purposes of subsection (a), a State 
        family assistance grant for any State for a fiscal year is an 
        amount equal to the total amount of the Federal payments to the 
        State under section 403 for fiscal year 1994 (as such section 
        was in effect before October 1, 1995).
            ``(2) State appropriation of grant.--Notwithstanding any 
        other provision of law, any funds received by a State under 
        this part 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 this 
        part.
            ``(3) Special rule for indian tribes.--For amount of a 
        State family assistance grant for a fiscal year for an Indian 
        tribe, see section 482(i).
    ``(c) Use of Grant.--
            ``(1) In general.--Subject to this part, a State to which a 
        grant is made under this section may use the grant in any 
        manner that is reasonably calculated to accomplish the purpose 
        of this part.
            ``(2) Authority to treat interstate immigrants under rules 
        of former state.--A State to which a grant is made under this 
        section may apply to a family the rules of the program operated 
        under this part of another State if the family has moved to the 
        State from the other State and has resided in the State for 
        less than 12 months.
            ``(3) Authority to reserve certain amounts for 
        assistance.--A State may reserve amounts paid to the State 
        under this part for any fiscal year for the purpose of 
        providing, without fiscal year limitation, assistance under the 
        State program operated under this part.
            ``(4) Authority to provide child care and transitional 
        services.--A State to which a grant is made under this section 
        may provide, at the State's option, child care and transitional 
        services to--
                    ``(A) families at risk of becoming eligible for 
                assistance under the program if child care is not 
                provided; and
                    ``(B) families that cease to receive assistance 
                under the program because of employment.
    ``(d) Timing of Payments.--The Secretary shall pay each grant 
payable to a State under this section in quarterly installments.
    ``(e) Limitation on Federal Authority.--The Secretary may not 
regulate the conduct of States under this part or enforce any provision 
of this part, except to the extent expressly provided in this part.
    ``(f) Supplemental Assistance for Needy Families Federal Loan 
Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a revolving loan fund which shall 
        be known as the `Supplemental Assistance for Needy Families 
        Federal Loan Fund'.
            ``(2) Deposits into fund.--
                    ``(A) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, $1,700,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the Supplemental 
                Assistance for Needy Families Federal Loan Fund.
                    ``(B) Loan repayments.--The Secretary shall deposit 
                into the fund any principal or interest payment 
                received with respect to a loan made under this 
                subsection.
            ``(3) Availability.--Amounts in the fund are authorized to 
        remain available without fiscal year limitation for the purpose 
        of making loans and receiving payments of principal and 
        interest on such loans, in accordance with this subsection.
            ``(4) Use of fund.--
                    ``(A) Loans to states.--The Secretary shall make 
                loans from the fund to any loan-eligible State, as 
                defined in subparagraph (D), for a period to maturity 
                of not more than 3 years.
                    ``(B) Rate of interest.--The Secretary shall charge 
                and collect interest on any loan made under 
                subparagraph (A) at a rate equal to the Federal short 
                term rate, as defined in section 1274(d) of the 
                Internal Revenue Code of 1986.
                    ``(C) Maximum loan.--The cumulative amount of any 
                loans made to a State under subparagraph (A) during 
                fiscal years 1996 through 2000 shall not exceed 10 
                percent of the State family assistance grant under 
                subsection (b) for a fiscal year.
                    ``(D) Loan-eligible state.--For purposes of 
                subparagraph (A), a loan-eligible State is a State 
                which has not had a penalty described in section 406 
                imposed against it at any time prior to the loan being 
                made.
            ``(5) Limitation on use of loan.--A State shall use a loan 
        received under this subsection only for--
                    ``(A) the purpose of providing assistance under the 
                State program funded under this part; or
                    ``(B) welfare anti-fraud activities, systems, or 
                initiatives, including positive client identity 
                verification and computerized data record matching and 
                analysis.

``SEC. 404. MANDATORY WORK REQUIREMENTS.

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

                    
                                                            The minimum
                    
                                                          participation
                    ``If the fiscal year is:
                                                               rate is:
                          1996.......................              20  
                          1997.......................              30  
                          1998.......................              35  
                          1999.......................              40  
                          2000.......................              45  
                          2001 or thereafter.........             50.  
                    ``(B) State option for participation requirement 
                exemptions.--For any fiscal year before fiscal year 
                1999, a State may opt to not require an individual 
                described in section 402(a)(19)(C) (as such section was 
                in effect on September 30, 1995) to engage in work 
                activities and may exclude such individuals from the 
                determination of the minimum participation rate 
                specified for such fiscal year in subparagraph (A).
                    ``(C) Child care for individuals with children 
                under 6 years of age.--If a State requires an 
                individual described in section 402(a)(19)(C)(iii)(II) 
                (as such section was in effect on September 30, 1995) 
                to engage in work activities, the State shall provide 
                the individual with child care.
                    ``(D) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month, 
                        expressed as a percentage, is--
                                    ``(I) the number of families 
                                receiving assistance under the State 
                                program
                                 funded under this part which include 
an individual who is engaged in work activities for the month; divided 
by
                                    ``(II) the total number of families 
                                receiving assistance under the State 
                                program funded under this part during 
                                the month.
                            ``(iii) Engaged.--A recipient is engaged in 
                        work activities for a month in a fiscal year if 
                        the recipient is participating, per the State's 
                        requirement which must be at least 20 hours 
                        each week in the month, in work activities 
                        described in clause (i), (ii), (vi), (vii), 
                        (viii), (ix), or (x) of section 482(d)(1)(A), 
                        (or, in the case of the first 4 weeks for which 
                        the recipient is required under this section to 
                        participate in work activities, an activity 
                        described in any such clause or in clause 
                        (iii), (iv), or (v) of such section).
            ``(2) Requirement applicable to 2-parent families.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 for a fiscal year shall achieve the 
                minimum participation rate specified in the following 
                table for the fiscal year with respect to 2-parent 
                families receiving assistance under the State program 
                funded under this part:
                    
                                                            The minimum
                    
                                                          participation
                    ``If the fiscal year is:
                                                               rate is:
                          1996.......................              60  
                          1997 or 1998...............              75  
                          1999 or thereafter.........             90.  
                    ``(B) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of 2-parent 
                                families receiving assistance under the 
                                State program funded under this part 
                                which include at least 1 adult who is 
                                engaged in work activities for the 
                                month; divided by
                                    ``(II) the total number of 2-parent 
                                families receiving assistance under the 
                                State program funded under this part 
                                during the month.
                            ``(iii) Engaged.--An adult is engaged in 
                        work activities for a month in a fiscal year if 
                        the adult is making progress in such 
                        activities, per the State's requirement which 
                        must be at least 30 hours each week in a month, 
                        in work activities described in clause (vi), 
                        (vii), (viii), (ix), or (x) of section 
                        482(d)(1)(A) (or, in the case of the first 4 
                        weeks for which the recipient is required under 
                        this section to participate in work activities, 
                        an activity described in any such clause or in 
                        clause (iii), (iv), or (v) of such section).
    ``(b) Penalties Against Individuals.--
            ``(1) Applicable to all families.--If an adult in a family 
        receiving assistance under the State program funded under this 
        part refuses to engage (within the meaning of subsection 
        (a)(1)(C)(iii)) in work activities required under this section, 
        a State to which a grant is made under section 403 shall--
                    ``(A) reduce the amount of assistance that would 
                otherwise be payable to the family; or
                    ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State 
        may establish.
            ``(2) Applicable to 2-parent families.--If an adult in a 2-
        parent family refuses to engage (within the meaning of 
        subsection (a)(2)(B)(iii)) in work activities for at least 30 
        hours per week during any month, a State to which a grant is 
        made under section 402 shall--
                    ``(A) reduce the amount of assistance otherwise 
                payable to the family; or
                    ``(B) terminate such assistance,
        subject to such good cause and other exceptions as the State 
        may establish.
            ``(3) Limitation on federal authority.--No officer or 
        employee of the Federal Government may regulate the conduct of 
        States under this paragraph or enforce this paragraph against 
        any State.

``SEC. 405. LIMITATIONS.

    ``(a) No Assistance for More Than 5 Years.--
            ``(1) In general.--Except as provided under paragraph (2), 
        a State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family of an 
        individual who has received assistance under the program 
        operated under this part for the lesser of--
                    ``(A) the period of time established at the option 
                of the State; or
                    ``(B) 60 months (whether or not consecutive) after 
                September 30, 1995.
            ``(2) Minor child exception.--If an individual received 
        assistance under the State program operated under this part as 
        a minor child in a needy family, any period during which such 
        individual's family received assistance shall not be counted 
        for purposes of applying the limitation described in paragraph 
        (1) to an application for assistance under such program by such 
        individual as the head of a household of a needy family with 
        minor children.
            ``(3) Hardship exception.--
                    ``(A) In general.--The State may exempt a family 
                from the application of paragraph (1) by reason of 
                hardship.
                    ``(B) Limitation.--The number of families with 
                respect to which an exemption made by a State under 
                subparagraph (A) is in effect for a fiscal year shall 
                not exceed 15 percent of the average monthly number of 
                families to which the State is providing assistance 
                under the program operated under this part.
    ``(b) Denial of Assistance for 10 Years to a Person Found To Have 
Fraudulently Misrepresented Residence in Order To Obtain Assistance in 
2 or More States.--An individual shall not be considered an eligible 
individual for the purposes of this part during the 10-year period that 
begins on the date the individual is convicted in Federal or State 
court of having made a fraudulent statement or representation with 
respect to the place of residence of the individual in order to receive 
assistance simultaneously from 2 or more States under programs that are 
funded under this title, title XIX, or the Food Stamp Act of 1977, or 
benefits in 2 or more States under the supplemental security income 
program under title XVI.
    ``(c) Denial of Assistance for Fugitive Felons and Probation and 
Parole Violators.--
            ``(1) In general.--An individual shall not be considered an 
        eligible individual for the purposes of this part if such 
        individual is--
                    ``(A) fleeing to avoid prosecution, or custody or 
                confinement after conviction, under the laws of the 
                place from which the individual flees, for a crime, or 
                an attempt to commit a crime, which is a felony under 
                the laws
                 of the place from which the individual flees, or 
which, in the case of the State of New Jersey, is a high misdemeanor 
under the laws of such State; or
                    ``(B) violating a condition of probation or parole 
                imposed under Federal or State law.
            ``(2) Exchange of information with law enforcement 
        agencies.--Notwithstanding any other provision of law, a State 
        shall furnish any Federal, State, or local law enforcement 
        officer, upon the request of the officer, with the current 
        address of any recipient of assistance under this part, if the 
        officer furnishes the agency with the name of the recipient and 
        notifies the agency that--
                    ``(A) such recipient--
                            ``(i) is described in subparagraph (A) or 
                        (B) of paragraph (1); or
                            ``(ii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties; and
                    ``(B) the location or apprehension of the recipient 
                is within such officer's official duties.
    ``(d) State Option To Prohibit Assistance for Certain Aliens.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 may, at its option, prohibit the use of any part of 
        the grant to provide assistance under the State program funded 
        under this part for an individual who is not a citizen or 
        national of the United States.
            ``(2) Deeming of income and resources if assistance is 
        provided.--For deeming of income and resources requirements if 
        assistance is provided to an individual who is not a citizen or 
        national of the United States, see section 1145.

``SEC. 406. STATE PENALTIES.

    ``(a) In General.--Subject to the provisions of subsection (b), the 
Secretary shall deduct from the grant otherwise payable under section 
403 the following penalties:
            ``(1) For use of grant in violation of this part.--If an 
        audit conducted pursuant to 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, 
        then the Secretary shall reduce the amount of the grant 
        otherwise payable to the State under such section for the 
        immediately succeeding fiscal year quarter by the amount so 
        used, plus 5 percent of such grant (determined without regard 
        to this section).
            ``(2) For failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 6 months after the end of a 
                fiscal year, submitted the report required by section 
                408 for the fiscal year, the Secretary shall reduce by 
                5 percent the amount of the grant that would (in the 
                absence of this section) be payable to the State under 
                section 403 for the immediately succeeding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
            ``(3) For failure to satisfy minimum participation rates.--
                    ``(A) In general.--If the Secretary determines that 
                a State has failed to satisfy the minimum participation 
                rates specified in section 404 for a fiscal year, the 
                Secretary shall reduce by not more than 5 percent the 
                amount of the grant that would (in the absence of this 
                section) be payable to the State under section 403 for 
                the immediately succeeding fiscal year.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) on the basis of the degree of noncompliance.
            ``(4) For failure to participate in the income and 
        eligibility verification system.--If the Secretary determines 
        that a State program funded under this part is not 
        participating during a fiscal year in the income and 
        eligibility verification system required by section 1137, the 
        Secretary shall reduce by not more than 5 percent the amount of 
        the grant that would (in the absence of this section) be 
        payable to the State under section 403 for the immediately 
        succeeding fiscal year.
            ``(5) For failure to comply with paternity establishment 
        and child support enforcement requirements under part d.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, if a State's program operated 
                under part D of this title is found as a result of a 
                review conducted under section 452(a)(4) of this title 
                not to have complied substantially with the 
                requirements of such part for any quarter beginning 
                after September 30, 1983, and the Secretary determines 
                that the State's program is not complying substantially 
                with such requirements at the time such finding is 
                made, the amounts otherwise payable to the State under 
                section 403 for such quarter and each subsequent 
                quarter, prior to the first quarter throughout which 
                the State program is found to be in substantial 
                compliance with such requirements, shall be reduced 
                (subject to paragraph (2)) 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 second 
                        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 third or a 
                        subsequent consecutive such finding made as a 
                        result of such a review.
                    ``(B) Suspension of reductions.--
                            ``(i) In general.--The reductions required 
                        under subparagraph (A) shall be suspended for 
                        any quarter if--
                                    ``(I) the State submits a 
                                corrective action plan, within a period 
                                prescribed by the Secretary following 
                                notice of the finding under 
                                subparagraph (A), which contains steps 
                                necessary to achieve substantial 
                                compliance within a time period which 
                                the Secretary finds to be appropriate;
                                    ``(II) the Secretary approves such 
                                corrective action plan (and any 
                                amendments thereto) as being sufficient 
                                to achieve substantial compliance; and
                                    ``(III) the Secretary finds that 
                                the corrective action plan (and any 
                                amendments approved under subclause 
                                (II)) is being fully implemented by the 
                                State and that the State is progressing 
                                in accordance with the timetable 
                                contained in the plan to achieve 
                                substantial compliance with such 
                                requirements.
                            ``(ii) Continuation of suspension.--A 
                        suspension of the penalty under clause (i) 
                        shall continue until such time as the Secretary 
                        determines that--
                                    ``(I) the State has achieved 
                                substantial compliance;
                                    ``(II) the State is no longer 
                                implementing its corrective action 
                                plan; or
                                    ``(III) the State is implementing 
                                or has implemented its corrective 
                                action plan but has failed to achieve 
                                substantial compliance within the 
                                appropriate time period (as specified 
                                in clause (i)(I)).
                            ``(iii) Exceptions.--
                                    ``(I) Achieves compliance.--In the 
                                case of a State whose penalty 
                                suspension ends pursuant to clause 
                                (ii)(I), the penalty shall not be 
                                applied.
                                    ``(II) No longer implementing 
                                corrective action plan.--In the case of 
                                a State whose penalty suspension ends 
                                pursuant to clause (ii)(II), the 
                                penalty shall be applied as if the 
                                suspension had not occurred.
                                    ``(III) Failure to achieve 
                                compliance within appropriate time 
                                period.--In the case of a State whose 
                                penalty suspension ends pursuant to 
                                clause (ii)(III), the penalty shall be 
                                applied to all quarters ending after 
                                the expiration of the time period 
                                specified in such clause and prior to 
                                the first quarter throughout which the 
                                State program is found to be in 
                                substantial compliance.
                    ``(C) Determination of substantial compliance.--For 
                purposes of this paragraph and section 452(a)(4) of 
                this title, a State which is not in full compliance 
                with the requirements of part D 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 child 
                support enforcement program.
            ``(6) For failure to timely repay a supplemental assistance 
        for needy families federal loan.--If the Secretary determines 
        that a State has failed to repay any amount borrowed from the 
        Supplemental Assistance for Needy Families Federal Loan Fund 
        established under section 403(f) within the period of maturity 
        applicable to such loan, plus any interest owed on such loan, 
        then the Secretary shall reduce the amount of the grant 
        otherwise payable to the State under section 403 for the 
        immediately succeeding fiscal year quarter by the outstanding 
        loan amount, plus the interest owed on such outstanding amount.
    ``(b) Requirements.--
            ``(1) Limitation on amount of penalty.--
                    ``(A) In general.--In imposing the penalties 
                described in subsection (a), the Secretary shall not 
                reduce any quarterly payment to a State by more than 25 
                percent.
                    ``(B) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (A) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                all penalties imposed on a State under subsection (a) 
                for a prior fiscal year, the Secretary shall apply any 
                remaining amount of such penalties to the grant 
                otherwise payable to the State under section 403 for 
                the immediately succeeding fiscal year.
            ``(2) State funds to replace reductions in grant.--A State 
        which has a penalty imposed against it under subsection (a) 
        shall expend additional State funds in an amount equal to the 
        amount of the penalty for the purpose of providing assistance 
        under the State program under this part.
            ``(3) Reasonable cause for noncompliance.--The Secretary 
        may not impose a penalty on a State under subsection (a) if the 
        Secretary determines that the State has reasonable cause for 
        failing to comply with a requirement for which a penalty is 
        imposed under such subsection.

``SEC. 407. RELIGIOUS CHARACTER AND FREEDOM.

    ``Notwithstanding any other provision of law, any religious 
organization participating in the State program funded under this part 
shall retain its independence from Federal, State, and local 
government, including such an organization's control over the 
definition, development, practice, and expression of its religious 
beliefs. However, a religious organization participating in the State 
program under this part shall not deny needy families and children any 
assistance provided under this part on the basis of religion, a 
religious belief, or refusal to participate in a religious practice.

``SEC. 408. DATA COLLECTION AND REPORTING.

    ``(a) In General.--Each State to which a grant is made under 
section 403 for a fiscal year shall, not later than 6 months after the 
end of fiscal year 1997, and each fiscal year thereafter, transmit to 
the Secretary the following aggregate information on families to which 
assistance was provided during the fiscal year under the State program 
operated under this part:
            ``(1) The number of adults receiving such assistance.
            ``(2) The number of children receiving such assistance and 
        the average age of the children.
            ``(3) The employment status of such adults, and the average 
        earnings of employed adults receiving such assistance.
            ``(4) The age, race, and educational attainment at the time 
        of application for assistance of the adults receiving such 
        assistance.
            ``(5) The average amount of cash and other assistance 
        provided to the families under the program.
            ``(6) The number of months, since the most recent 
        application for assistance under the program, for which such 
        assistance has been provided to the families.
            ``(7) The total number of months for which assistance has 
        been provided to the families under the program.
            ``(8) Any other data necessary to indicate whether the 
        State is in compliance with the plan most recently submitted by 
        the State pursuant to section 402.
            ``(9) The components of any program carried out by the 
        State to provide employment and training activities in order to 
        comply with section 404 and part F, and the average monthly 
        number of adults in each such component.
            ``(10) The number of part-time job placements and the 
        number of full-time job placements made through the program 
        referred to in paragraph (11), the number of cases with reduced 
        assistance, and the number of cases closed due to employment.
            ``(11) The number of cases closed due to section 405(a).
            ``(12) The increase or decrease in the number of children 
        born out of wedlock to recipients of assistance under the State 
        program funded under this part.
    ``(b) Authority of States To Use Estimates.--A State may comply 
with the requirement to provide precise numerical information described 
in subsection (a) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(c) Report on Use of Federal Funds To Cover Administrative Costs 
and Overhead.--The report required by subsection (a) for a fiscal year 
shall include a statement of--
            ``(1) the total amount and percentage of the Federal funds 
        paid to the State under this part for the fiscal year that are 
        used to cover administrative costs or overhead; and
            ``(2) the total amount of State funds that are used to 
        cover such costs or overhead.
    ``(d) Report on State Expenditures on Programs for Needy 
Families.--The report required by subsection (a) for a fiscal year 
shall include a statement of the total amount expended by the State 
during the fiscal year on the program under this part and the purposes 
for which such amount was spent.
    ``(e) Report on Noncustodial Parents Participating in Work 
Activities.--The report required by subsection (a) for a fiscal year 
shall include the number of noncustodial parents in the State who 
participated in work activities during the fiscal year.
    ``(f) Report on Child Support Collected.--The report required by 
subsection (a) for a fiscal year shall include the total amount of 
child support collected by the State agency administering the State 
program under part D on behalf of a family receiving assistance under 
this part.
    ``(g) Report on Child Care.--The report required by subsection (a) 
for a fiscal year shall include the total amount expended by the State 
for child care under the program under this part, along with a 
description of the types of child care provided, including--
            ``(1) child care provided in the case of a family that has 
        ceased to receive assistance under this part because of 
        employment; or
            ``(2) child care provided in the case of a family that is 
        not receiving assistance under this part but would be at risk 
        of becoming eligible for such assistance if child care was not 
        provided.
    ``(h) Report on Transitional Services.--The report required by 
subsection (a) for a fiscal year shall include the total amount 
expended by the State for providing transitional services to a family 
that has ceased to receive assistance under this part because of 
employment, along with a description of such services.
``SEC. 409. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary may conduct research on the effects 
and costs of State programs funded under this part.
    ``(b) Development and Evaluation of Innovative Approaches To 
Employing Welfare Recipients.--The Secretary may assist States in 
developing, and shall evaluate, innovative approaches to employing 
recipients of assistance under programs funded under this part. In 
performing such evaluations, the Secretary shall, to the maximum extent 
feasible, use random assignment to experimental and control groups.
    ``(c) Studies of Welfare Caseloads.--The Secretary may conduct 
studies of the caseloads of States operating programs funded under this 
part.
    ``(d) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted under this section, including the 
facilitation of the sharing of information and best practices among 
States and localities through the use of computers and other 
technologies.
    ``(e) 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 moving recipients of 
        assistance under the State program funded under this part into 
        long-term private sector jobs.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.
    ``(f) Study on Alternative Outcomes Measures.--
            ``(1) Study.--The Secretary shall, in cooperation with the 
        States, study and analyze outcomes measures for evaluating the 
        success of a State in moving individuals out of the welfare 
        system through employment as an alternative to the minimum 
        participation rates described in section 404. The study shall 
        include a determination as to whether such alternative outcomes 
        measures should be applied on a national or a State-by-State 
        basis.
            ``(2) Report.--Not later than September 30, 1998, the 
        Secretary shall submit to the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives a report containing the findings of the study 
        described in paragraph (1).
``SEC. 410. 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 titles I and II of the Family Self-Sufficiency 
Act of 1995 on a random national sample of recipients of assistance 
under State programs funded under this part and (as appropriate) other 
low-income families, and in doing so, shall pay particular attention to 
the issues of out-of-wedlock births, welfare dependency, the beginning 
and end of welfare spells, and the causes of repeat welfare spells.
    ``(b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, the Secretary of the Treasury 
shall pay to the Bureau of the Census $10,000,000 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).
``SEC. 411. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

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

``SEC. 412. STATE DEMONSTRATION PROGRAMS.

    ``Nothing in this part shall be construed as limiting a State's 
ability to conduct demonstration projects for the purpose of 
identifying innovative or effective program designs in 1 or more 
political subdivisions of the State.

``SEC. 413. NO INDIVIDUAL ENTITLEMENT.

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

SEC. 102. REPORT ON DATA PROCESSING.

    (a) In General.--Not later than 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 in 2 or more States.
    (b) Preferred Contents.--The report required by subsection (a) 
should include--
            (1) a plan for building on the automated data processing 
        systems of the States to establish a system with the 
        capabilities described in subsection (a)(2); and
            (2) an estimate of the amount of time required to establish 
        such a system and of the cost of establishing such a system.

SEC. 103. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    (a) In General.--Title XIX (42 U.S.C. 1396 et seq.) is amended--
            (1) in section 1931, by inserting ``subject to section 
        1931(a),'' after ``under this title,'' and by redesignating 
        such section as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

               ``continued application of afdc standards

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

SEC. 104. WAIVERS.

    (a) Continuation of Waivers.--
            (1) In general.--Except as provided in paragraph (2), if 
        any waiver granted to a State under section 1115 of the Social 
        Security Act or otherwise which relates to the provision of 
        assistance under a State plan under part A of title IV of such 
        Act (42 U.S.C. 1396 et seq.), is in effect or approved by the 
        Secretary of Health and Human Services (in this section 
        referred to as the ``Secretary'') as of October 1, 1995, the 
        amendments made by this 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 terms of the waiver.
            (2) Financing limitation.--Notwithstanding any other 
        provision of law, beginning with fiscal year 1996, a State 
        operating under a waiver described in paragraph (1) shall 
        receive the payment described for such State for such fiscal 
        year under section 403 of the Social Security Act, as added by 
        section 101, in lieu of any other payment provided for in the 
        waiver.
    (b) State Option To Terminate Waiver.--
            (1) In general.--A State may terminate a waiver described 
        in subsection (a) before the expiration of the waiver.
            (2) Report.--A State which terminates a waiver under 
        paragraph (1) shall submit a report to the Secretary 
        summarizing the waiver and any available information concerning 
        the result or effect of such waiver.
            (3) Hold harmless provision.--
                    (A) In general.--A State that, not later than the 
                date described in subparagraph (B), submits a written 
                request to terminate a waiver described in subsection 
                (a) shall be held harmless for accrued cost neutrality 
                liabilities incurred under the terms and conditions of 
                such waiver.
                    (B) Date described.--The date described in this 
                subparagraph is the later of--
                            (i) January 1, 1996; or
                            (ii) 90 days following the adjournment of 
                        the first regular session of the State 
                        legislature that begins after the date of the 
                        enactment of this Act.
    (c) Secretarial Encouragement of Current Waivers.--The Secretary 
shall encourage any State operating a waiver described in subsection 
(a) to continue such waiver and to evaluate, using random sampling and 
other characteristics of accepted scientific evaluations, the result or 
effect of such waiver.

SEC. 105. DEEMED INCOME REQUIREMENT FOR FEDERAL AND FEDERALLY FUNDED 
              PROGRAMS UNDER THE SOCIAL SECURITY ACT.

    (a) In General.--Part A of title XI (42 U.S.C. 1301-1320b-14) is 
amended by adding at the end the following new section:
 ``deemed income requirement for federal and federally funded programs

    ``Sec. 1145. (a) Deeming Requirement for Federal and Federally 
Funded Programs.--For purposes of determining the eligibility of an 
individual (whether a citizen or national of the United States or an 
alien) for assistance, and the amount of assistance, under any Federal 
program of assistance authorized under this Act, or any program of 
assistance authorized under this Act funded in whole or in part by the 
Federal Government for which eligibility is based on need, the income 
and resources described in subsection (b) shall, notwithstanding any 
other provision of law, be deemed to be the income and resources of 
such individual.
    ``(b) Deemed Income and Resources.--The income and resources 
described in this subsection include the following:
            ``(1) The income and resources of any person who, as a 
        sponsor of such individual's entry into the United States (or 
        in order to enable such individual lawfully to remain in the 
        United States), executed an affidavit of support or similar 
        agreement with respect to such individual.
            ``(2) The income and resources of such sponsor's spouse.
    ``(c) Length of Deemed Income Period.--The requirement of 
subsection (a) shall apply for the period for which the sponsor has 
agreed, in such affidavit or agreement, to provide support for such 
individual, or for a period of 5 years beginning on the date such 
individual was first lawfully in the United States after the execution 
of such affidavit or agreement, whichever period is longer.
    ``(d) Deemed Income Authority to State and Local Agencies.--
            ``(1) In general.--For purposes of determining the 
        eligibility of an individual (whether a citizen or national of 
        the United States or an alien) for assistance, and the amount 
        of assistance, under any State or local program of assistance 
        authorized under this Act for which eligibility is based on 
        need, or any need-based program of assistance authorized under 
        this Act and administered by a State or local government other 
        than a program described in subsection (a), the State or local 
        government may, notwithstanding any other provision of law, 
        require that the income and resources described in subsection 
        (b) be deemed to be the income and resources of such 
        individual.
            ``(2) Length of deeming period.--A State or local 
        government may impose a requirement described in paragraph (1) 
        for the period described in subsection (c).''.
    (b) Conforming Amendments.--
            (1) Section 1621 (42 U.S.C. 1382j) is repealed.
            (2) Section 1614(f)(3) (42 U.S.C. 1382c(f)(3)) is amended 
        by striking ``section 1621'' and inserting ``section 1145''.

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

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
        as so redesignated by section 321(a)(9)(B) of the Social 
        Security Independence and Program Improvements Act of 1994, is 
        amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
        inserting ``under a State program funded under'' before ``part 
        A of title IV''.
    (b) Amendment to Part B of Title IV.--Section 422(b)(2) (42 U.S.C. 
622(b)(2)) is amended by
 striking ``under the State plan approved'' and inserting ``under the 
State program funded.''.
    (c) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by striking 
        ``aid'' and inserting ``assistance under a State program 
        funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``assistance under a State 
                program funded under part A''; and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``402(a)(26) or''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
        amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
        first sentence by striking ``aid under the State plan approved 
        under part A'' and inserting ``assistance under a State program 
        funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
        amended by striking ``1115(c)'' and inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved under part A or E'' and 
        inserting ``assistance is being provided under the State 
        program funded under part A or aid is being paid under the 
        State's plan approved under part E''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter following clause (iii) by striking ``aid 
        was being paid under the State's plan approved under part A or 
        E'' and inserting ``assistance was being provided under the 
        State program funded under part A or aid was being paid under 
        the State's plan approved under part E''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
        the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child by 
                reason of the death of a parent'' and inserting ``with 
                respect to whom assistance is being provided under the 
                State program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``with the State in establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (11) Section 454 (42 U.S.C. 654)) is amended--
                    (A) in paragraph (5)(A)--
                            (i) by striking ``under section 
                        402(a)(26)''; and
                            (ii) by striking ``except that this 
                        paragraph shall not apply to such payments for 
                        any month following the first month in which 
                        the amount collected is sufficient to make such 
                        family ineligible for assistance under the 
                        State plan approved under part A;''; and
                    (B) in paragraph (6)(D), by striking ``aid under a 
                State plan approved'' and inserting ``assistance under 
                a State program funded''.
            (12) Section 456 (42 U.S.C. 656) is amended by striking 
        ``under section 402(a)(26)'' each place it appears.
            (13) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``402(a)(26) or''.
            (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (15) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans approved'' and 
                inserting ``assistance under State programs funded''; 
                and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''.
    (d) Amendments to Part E of Title IV.--
            (1) Section 470 (42 U.S.C. 670) is amended by striking 
        ``the State's plan approved'' and inserting ``a State program 
        funded''.
            (2) Section 471(17) (42 U.S.C. 671(17)) is amended by 
        striking ``plans approved under parts A and D'' and inserting 
        ``program funded under part A and plan approved under part D''.
            (3) Section 472(a) (42 U.S.C. 672(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``would meet the requirements of section 
                406(a) or of section 407 but for his removal from the 
                home of a relative (specified in section 406(a))'' and 
                inserting ``would be a minor child in a needy family 
                under the State program funded under part A but for the 
                child's removal from the home of the child's custodial 
                parent or caretaker relative.'; and
                    (B) in paragraph (4)--
                            (i) in subparagraph (A), by striking ``aid 
                        under a State plan approved under section 402'' 
                        and inserting ``assistance under a State 
                        program funded under part A''; and
                            (ii) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``aid'' and inserting ``assistance''; 
                                and
                                    (II) in clause (ii), by striking 
                                ``relative specified in section 
                                406(a)'' and inserting ``the child's 
                                custodial parent or caretaker 
                                relative''.
            (4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as 
        follows:
    ``(h)(1) For purposes of title XIX, any child with respect to whom 
foster care maintenance payments are made under this section shall be 
deemed to be a dependent child as defined in section 406 (as in effect 
as of June 1, 1995) and shall be deemed to be a recipient of aid to 
families with dependent children under part A of this title (as so in 
effect). For purposes of title XX, any child with respect to whom 
foster care maintenance payments are made under this section shall be 
deemed to be a minor child in a needy family under a State program 
funded under part A and shall be deemed to be a recipient of assistance 
under such part.
    ``(2) For purposes of paragraph (1), a child whose costs in a 
foster family home or child care institution are covered by the foster 
care maintenance payments being made with respect to the child's minor 
parent, as provided in section 475(4)(B), shall be considered a child 
with respect to whom foster care maintenance payments are made under 
this section.''.
            (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
                    (A) in subparagraph (A)(i)--
                            (i) by striking ``met the requirements of 
                        section 406(a) or section 407'' and all that 
                        follows through ``specified in section 
                        406(a)),'' and inserting ``was a minor child in 
                        a needy family under the State program funded 
                        under part A or would have met such a standard 
                        except for the child's removal from the home of 
                        the child's custodial parent or caretaker 
                        relative,'' ; and
                            (ii) by striking ``(or 403)'';
                    (B) in subparagraph (B)(i), by striking ``aid under 
                the State plan approved under section 402'' and 
                inserting ``assistance under the State program funded 
                under part A'';
                    (C) in subparagraph (B)(ii)--
                            (i) in subclause (I), by striking ``aid'' 
                        and inserting ``assistance''; and
                            (ii) in subclause (II)--
                                    (I) by striking ``a relative 
                                specified in section 406(a)'' and 
                                inserting ``the child's custodial 
                                parent or caretaker relative''; and
                                    (II) by striking ``aid'' each place 
                                such term appears and inserting 
                                ``assistance''.
            (6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as 
        follows:
    ``(b)(1) For purposes of title XIX, any child who is described in 
paragraph (3) shall be deemed to be a dependent child as defined in 
section 406 (as in effect as of June 1, 1995) and shall be deemed to be 
a recipient of aid to families with dependent children under part A of 
this title (as so in effect) in the State where such child resides.
    ``(2) For purposes of title XX, any child who is described in 
paragraph (3) shall be deemed to be a minor child in a needy family 
under a State program funded under part A and shall be deemed to be a 
recipient of assistance under such part.
    ``(3) A child described in this paragraph is any child--
                    ``(A)(i) who is a child described in subsection 
                (a)(2), and
                    ``(ii) with respect to whom an adoption assistance 
                agreement is in effect under this section (whether or 
                nor adoption assistance payments are provided under the 
                agreement or are being made under this section), 
                including any such child who has been placed for 
                adoption in accordance with applicable State and local 
                law (whether or not an interlocutory or other judicial 
                decree of adoption has been issued), or
                    ``(B) with respect to whom foster care maintenance 
                payments are being made under section 472.
    ``(4) For purposes of paragraphs (1) and (2), a child whose costs 
in a foster family home or child-care institution are covered by the 
foster care maintenance payments being made with respect to the child's 
minor parent, as provided in section 475(4)(B), shall be considered a 
child with respect to whom foster care maintenance payments are being 
made under section 472.''.
    (e) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (f) Amendments to Title XI.--
            (1) Section 1109 (42 U.S.C. 1309) is amended by striking 
        ``or part A of title IV,''.
            (2) Section 1115 (42 U.S.C. 1315) is amended--
                    (A) in subsection (a)(2)--
                            (i) by inserting ``(A)'' after ``(2)'';
                            (ii) by striking ``403,'';
                            (iii) by striking the period at the end and 
                        inserting ``, and''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
            ``(B) costs of such project which would not otherwise be a 
        permissible use of funds under part A of title IV and which are 
        not included as part of the costs of projects under section 
        1110, shall to the extent and for the period prescribed by the 
        Secretary, be regarded as a permissible use of funds under such 
        part.''; and
                    (B) in subsection (c)(3), by striking ``under the 
                program of aid to families with dependent children'' 
                and inserting ``part A of such title''.
            (3) Section 1116 (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,''.
            (4) Section 1118 (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``, and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (5) Section 1119 (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a),''.
            (6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
        striking ``or part A of title IV,''.
            (7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (8) Section 1137 (42 U.S.C. 1320b-7) is amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
    (g) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking ``aid to families with dependent 
children under the State plan approved under section 402 of this Act'' 
and inserting ``assistance under a State program funded under part A of 
title IV''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11), as in effect without regard to the 
amendment made by section 301 of the Social Security Amendments of 1972 
(42 U.S.C. 1382 note), is amended by striking ``aid under the State 
plan approved'' and inserting ``assistance under a State program 
funded''.
    (i) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is amended to 
read as follows: ``(A) a State program funded under part A of title 
IV,''.
SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 AND 
              RELATED PROVISIONS.

    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is 
amended--
            (1) in the second sentence of subsection (a), by striking 
        ``a State plan approved'' and inserting ``a State program 
        funded'';
            (2) in subsection (d)(5)--
                    (A) by striking ``assistance to families with 
                dependent children'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking paragraph (13) and redesignating 
                paragraphs (14), (15), and (16) as paragraphs (13), 
                (14), and (15), respectively;
            (3) in subsection (j), by striking ``a State plan 
        approved'' and inserting ``a State program funded''; and
            (4) in subsection (k)(1)(A), by striking ``a regular 
        benefit payable to the household for living expenses under a 
        State plan for aid to families with dependent children 
        approved'' and inserting ``assistance payable to the household 
        under a State program funded''.
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State plan 
        approved'' and inserting ``the State program funded'';
            (2) in subsection (d)(4)--
                    (A) in subparagraph (B)(i), by striking ``in 
                subparagraphs (A) and (B) of section 402(a)(35) of part 
                A of title IV of the Social Security Act'' and 
                inserting ``under the State program funded under part A 
                of title IV of the Social Security Act'';
                    (B) in subparagraph (I)(i)(II), by striking 
                ``benefits under part A'' and inserting ``assistance 
                under a State program funded under part A''; and
                    (C) in subparagraph (L)(ii) by striking 
                ``training''; and
            (3) in subsection (e)(6), by striking ``aid to families 
        with dependent children'' and inserting ``assistance under a 
        State program funded''.
    (c) Section 8(e) of such Act (7 U.S.C. 2017(e)) is amended--
            (1) in paragraph (1)(A)(i), by striking ``aid to families 
        with dependent children'' and inserting ``assistance under a 
        State program'';
            (2) in paragraph (2)(A)(ii)(I), by striking ``benefits paid 
        to such household under a State plan for aid to families with 
        dependent children approved'' and inserting ``assistance paid 
        to such household under a State program funded''; and
            (3) in paragraph (3), by striking ``such aid to families 
        with dependent children'' and inserting ``the assistance under 
        a State program funded under part A of title IV of the Social 
        Security Act''.
    (d) Section 11 of such Act (7 U.S.C. 2020) is amended--
            (1) in subsection (e)(2), by striking ``the aid to families 
        with dependent children program'' and inserting ``the State 
        program funded''; and
            (2) in subsection (i)(1), by striking ``the aid to families 
        with dependent children program'' and inserting ``the State 
        program funded''.
    (e) 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''.
    (f) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in subsection (b)--
                    (A) the first sentence of paragraph (1)(A), by 
                striking ``aid to families with dependent children'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) in paragraph (3)--
                            (i) in the first sentence of subparagraph 
                        (B), by striking ``aid to families with 
                        dependent children under part F of title IV of 
                        the Social Security Act (42 U.S.C. 681 et 
                        seq.)'' and inserting ``assistance under part
                         A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.)'';
                            (ii) in subparagraph (C)--
                                    (II) in the first sentence, by 
                                striking ``subsections (a)(19) and 
                                (g)'' and all that follows through 
                                ``section 402(g)(1)(A)) and''; and
                                    (III) in the second sentence, by 
                                striking ```aid to families with 
                                dependent children''' and inserting 
                                ```assistance under the State program 
                                funded under part A'''; and
                            (iii) in subparagraph (E), by striking 
                        ``the provisions of section 402, and sections 
                        481 through 487,'' and inserting ``sections 481 
                        through 487''; and
            (2) in subsection (i)--
                    (A) in paragraph (1), by striking ``benefits under 
                a State plan'' and all that follows through ``and 
                without regard'' and inserting ``assistance under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) (referred 
                to in this subsection as an `eligible household') shall 
                be issued monthly allotments following the rules and 
                procedures of the program, and without regard''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (D)--
                                    (I) in the first sentence, by 
                                striking ``benefit provided under'' and 
                                inserting ``assistance provided under a 
                                State program funded under''; and
                                    (II) in the first sentence, by 
                                striking ``section 402(a)(7)(C)'' and 
                                all that follows to the end period and 
                                inserting ``any nonrecurring lump-sum 
                                income and income deemed or allocated 
                                to the household under the State 
                                program funded under such part''; and
                            (ii) in subparagraph (E)--
                                    (I) in the first sentence, by 
                                striking ``section 402(a)(8) of the 
                                Social Security Act (42 U.S.C. 
                                602(a)(8))'' and inserting ``the State 
                                program funded under part A of title IV 
                                of the Social Security Act''; and
                                    (II) in the second sentence, by 
                                striking ``the earned income disregards 
                                provided under 402(a)(8) of the Social 
                                Security Act'' and inserting ``any 
                                earned income disregards provided under 
                                the State program funded under such 
                                part''.
    (g) 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''.
    (h) 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), by striking 
                ``program for aid to families with dependent children'' 
                and inserting ``State program funded''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A)(ii), 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) 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.)''; and
            (2) in subsection (d)(2)(C), by striking ``program for aid 
        to families with dependent children'' and inserting ``State 
        program funded''.
    (i) Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) 
is amended--
            (1) in subsection (d)(2)(A)(ii)(II), by striking ``program 
        for aid to families with dependent children established'' and 
        inserting ``State program funded'';
            (2) in subsection (e)(4)(A), by striking ``program for aid 
        to families with dependent children'' and inserting ``State 
        program funded''; and
            (3) in subsection (f)(1)(C)(iii), by striking ``aid to 
        families with dependent children,'' and inserting ``State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) and with the''.

SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (Public Law 94-566; 90 Stat. 2689) is amended to 
read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)), or
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (c) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is repealed.
    (d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is repealed.
    (e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is repealed.
    (f) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is repealed.
    (g) Section 233 of the Social Security Act Amendments of 1994 (42 
U.S.C. 602 note) is repealed.
    (h) 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''.
    (i) 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''.
    (j) 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''.
    (k) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2701 et seq.) is amended--
            (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
        striking ``Aid to Families with Dependent Children Program'' 
        and inserting ``State program funded under part A of title IV 
        of the Social Security Act'';
            (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
        striking ``the program of aid to families with dependent 
        children under a State plan approved under'' and inserting ``a 
        State program funded under part A of''; and
            (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
                    (A) in subparagraph (A)(xi), by striking ``Aid to 
                Families with Dependent Children benefits'' and 
                inserting ``assistance under a State program funded 
                under part A of title IV of the Social Security Act''; 
                and
                    (B) in subparagraph (B)(viii), by striking ``Aid to 
                Families with Dependent Children'' and inserting 
                ``assistance under the State program funded under part 
                A of title IV of the Social Security Act''.
    (l) 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.''.
    (m) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is 
amended--
            (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking 
        all that follows ``agency as'' and inserting ``being eligible 
        for financial assistance under part A of title IV of the Social 
        Security Act and as having continually received such financial 
        assistance during the 90-day period which immediately precedes 
        the date on which such individual is hired by the employer.'';
            (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by 
        striking ``eligibility for aid or services,'' and all that 
        follows through ``children approved'' and inserting 
        ``eligibility for assistance, or the amount of such assistance, 
        under a State program funded'';
            (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 
        6103(l)(7)(D)(i)), by striking ``aid to families with dependent 
        children provided under a State plan approved'' and inserting 
        ``a State program funded'';
            (4) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
        by striking ``(relating to aid to families with dependent 
        children)''; and
            (5) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
        striking ``aid to families with dependent children'' and 
        inserting ``assistance under a State program funded under part 
        A of title IV of the Social Security Act''.
    (n) 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''.
    (o) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
            (1) 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'';
            (2) in section 501(1) (29 U.S.C. 1791(1)), by striking 
        ``aid to families with dependent children'' and inserting 
        ``assistance under the State program funded'';
            (3) 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''; and
            (4) 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''.
    (p) 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''.
    (q) 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;''.
    (r) 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).
    (s) The Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 900 et seq.) is amended--
            (1) in section 255(h) (2 U.S.C. 905(h), by striking ``Aid 
        to families with dependent children (75-0412-0-1-609);'' and 
        inserting ``Block grants to States for temporary assistance for 
        needy families;''; and
            (2) in section 256 (2 U.S.C. 906)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsection (l) as subsection 
                (k).
    (t) 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''.
    (u) 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''.
    (v) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 
92; 25 U.S.C. 639) is repealed.

SEC. 109. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

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

SEC. 110. EFFECTIVE DATE; TRANSITION RULE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 1995.
    (b) Transition Rule.--
            (1) State option to continue afdc program.--
                    (A) 6-month extension.--A State may continue a 
                State program under parts A and F of title IV of the 
                Social Security Act, as in effect on September 30, 1995 
                (for purposes of this paragraph, the ``State AFDC 
                program'') until March 31, 1996.
                    (B) Reduction of fiscal year 1996 grant.--In the 
                case of any State opting to continue the State AFDC 
                program pursuant to subparagraph (A), the State family 
                assistance grant paid to such State under section 
                403(b) of the Social Security Act (as added by section 
                101 and as in effect on and after October 1, 1995) for 
                fiscal year 1996 (after the termination of the State 
                AFDC program) shall be reduced by an amount equal to 
                the total Federal payment to such State under section 
                403 of the Social Security Act (as in effect on 
                September 30, 1995) for such fiscal year.
            (2) Claims, actions, and proceedings.--The amendments made 
        by this title shall not apply with respect to--
                    (A) powers, duties, functions, rights, claims, 
                penalties, or obligations applicable to aid, 
                assistance, or services provided before the effective 
                date of this title under the provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized before such 
                date to be commenced, under such provisions.

              TITLE II--MODIFICATIONS TO THE JOBS PROGRAM

SEC. 201. MODIFICATIONS TO THE JOBS PROGRAM.

    (a) Increased Employment and Job Retention.--
            (1) Job opportunities and basic skills.--The heading for 
        part F of title IV (42 U.S.C. 681 et seq.) is amended by 
        striking ``Training''.
            (2) Purpose.--Section 481(a) (42 U.S.C. 681(a)) is amended 
        to read as follows:
    ``Sec. 481. (a) Purpose.--It is the purpose of this part to assist 
each State in providing such services as the State determines to be 
necessary to--
            ``(1) enable individuals receiving assistance under part A 
        to enter employment as quickly as possible;
            ``(2) increase job retention among such individuals; and
            ``(3) ensure that needy families with children obtain the 
        supportive services that will help them avoid long-term welfare 
        dependence.''.
    (b) Establishment and Operation of State Programs.--
            (1) State plans for jobs programs.--Section 482(a) (42 
        U.S.C. 682(a)) is amended--
                    (A) in the heading, by striking ``Training'';
                    (B) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``of aid to 
                                families with dependent children'';
                                    (II) by striking ``training''; and
                                    (III) by striking ``under a plan 
                                approved'' and all that follows through 
                                the period and inserting a period;
                            (ii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``plan for 
                                establishing and operating the program 
                                must describe'' and inserting ``shall 
                                submit to the Secretary periodically, 
                                but not less frequently than every 2 
                                years, a plan describing'';
                                    (II) in clause (ii)--
                                            (aa) by striking ``the 
                                        extent to which such services 
                                        are expected to be made 
                                        available by other agencies on 
                                        a nonreimbursable basis,''; and
                                            (bb) by striking ``program, 
                                        and'' and inserting 
                                        ``program.''; and
                                    (III) by striking clause (iii);
                            (iii) by striking subparagraph (C);
                            (iv) in subparagraph (D)(i), by striking 
                        ``Not later than October 1, 1992, each State 
                        shall make'' and inserting ``Each State shall 
                        make appropriate services of''; and
                            (v) by redesignating subparagraph (D) as 
                        subparagraph (C);
                    (C) in paragraph (2)--
                            (i) by striking ``(2) The'' and inserting 
                        ``(2)(A) The'';
                            (ii) by striking ``approved''; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
    ``(B) The State agency shall establish procedures to--
            ``(i) encourage the placement of participants in jobs as 
        quickly as possible, including using performance measures that 
        reward staff performance, or such other management practice as 
        the State may choose; and
            ``(ii) assist participants in retaining employment after 
        they are hired.
    ``(C) The Secretary shall provide technical assistance and training 
to States to assist the States in implementing effective management 
practices and strategies in order to achieve the purpose of this 
part.''; and
                    (D) by striking paragraph (3).
            (2) Employability plan.--Section 482(b)(1) (42 U.S.C. 
        682(b)(1)) is amended--
                    (A) in subparagraph (A), by inserting ``the 
                employability of each participant under the program 
                and, in appropriate circumstances, a subsequent 
                assessment which may include'' after ``assessment of''; 
                and
                    (B) in subparagraph (B)--
                            (i) by striking ``such assessment'' and 
                        inserting ``the subsequent assessment''; and
                            (ii) by striking the last sentence.
            (3) Provision of information.--Section 482(c) (42 U.S.C. 
        682(c)) is amended--
                    (A) in paragraph (1), by striking ``aid to families 
                with dependent children'' and inserting ``assistance 
                under the State program funded under part A'';
                    (B) in paragraph (2), by striking ``aid to families 
                with dependent children'' and inserting ``assistance 
                under the State program funded under part A'';
                    (C) in paragraph (4), by striking ``aid to families 
                with dependent children of the grounds for exemption 
                from participation in the program and the consequences 
                of refusal to participate if not exempt'' and inserting 
                ``assistance under the State program funded under part 
                A of the consequences of refusal to participate in the 
                program under this part''; and
                    (D) by striking paragraph (5).
            (4) Services and activities.--Section 482(d) (42 U.S.C. 
        682(d)) is amended--
                    (A) in paragraph (1)(A), by striking ``Such 
                services and activities--'' and all that follows 
                through the period and inserting ``Such services and 
                activities shall be designed to improve the 
                employability of participants and may include any 
                combination of the following:
            ``(i) Educational activities (as appropriate), including 
        high school or equivalent education (combined with training as 
        needed), basic and remedial education to achieve a basic 
        literacy level, and education for individuals with limited 
        English proficiency.
            ``(ii) Job skills training.
            ``(iii) Job readiness activities to help prepare 
        participants for work.
            ``(iv) Job development and job placement.
            ``(v) Group and individual job search.
            ``(vi) On-the-job training.
            ``(vii) Work supplementation programs as described in 
        subsection (e).
            ``(viii) Community work experience programs as described in 
        subsection (f), or any other community service programs 
        approved by the State.
            ``(ix) A job placement voucher program, as described in 
        subsection (g).
            ``(x) Unsubsidized employment.'';
                    (B) in paragraph (2), by striking the last 
                sentence; and
                    (C) in paragraph (3)--
                            (i) by striking ``the Secretary shall 
                        permit up to 5 States to'' and inserting ``A 
                        State may''; and
                            (ii) by striking the last sentence.
            (5) Work supplementation program.--Section 482(e) (42 
        U.S.C. 682(e)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``aid to families with 
                        dependent children'' each place it appears and 
                        inserting ``assistance under the State program 
                        funded under part A''; and
                            (ii) by striking ``paragraph (3)(C)(i) and 
                        (ii)'' and inserting ``paragraph (3)''; and
                    (B) in paragraph (2)--
                            (i) by striking subparagraphs (A), (C), 
                        (D), (F), and (G);
                            (ii) in subparagraph (B), by striking 
                        ``approved'';
                            (iii) in subparagraph (E)--
                                    (I) by striking ``aid to families 
                                with dependent children'' and inserting 
                                ``assistance'';
                                    (II) by striking ``(as determined 
                                under subparagraph (D))''; and
                                    (III) by striking ``State plan 
                                approved'' and inserting ``State 
                                program''; and
                            (iv) by redesignating subparagraphs (B) and 
                        (E) as subparagraphs (A) and (B), respectively;
                    (C) in paragraph (3) to read as follows:
    ``(3) For purposes of this section, a subsidized job is a job 
provided to an individual for not more than a 12-month period--
            ``(A) by the State or local agency administering the State 
        plan under part A; or
            ``(B) by any other employer for which all or part of the 
        wages are paid by such State or local agency.
A State may provide or subsidize under the program any type of job 
which such State determines to be appropriate.'';
                    (D) by striking paragraph (4);
                    (E) in paragraph (5)(A)--
                            (i) by striking ``eligible'' each place it 
                        appears; and
                            (ii) by redesignating such paragraph as 
                        paragraph (4);
                    (F) in paragraph (6)--
                            (i) by striking ``aid to families with 
                        dependent children under the State plan 
                        approved'' each place it appears and inserting 
                        ``assistance''; and
                            (ii) by redesignating such paragraph as 
                        paragraph (5); and
                    (G) by striking paragraph (7).
            (6) Community work experience program.--Section 482(f) (42 
        U.S.C. 682(f)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``aid to families with dependent 
                                children payable with respect to the 
                                family of which such individual is a 
                                member under the State plan approved 
                                under this part'' and inserting 
                                ``assistance payable with respect to 
                                the family of which such individual is 
                                a member under the State program funded 
                                under part A''; and
                                    (II) in clause (ii), by striking 
                                ``aid to families with dependent 
                                children payable with respect to the 
                                family of which such individual is a 
                                member under the State plan approved 
                                under this part (excluding any portion 
                                of such aid'' and inserting 
                                ``assistance payable with respect to 
                                the family of which such individual is 
                                a member under the State program funded 
                                under part A (excluding any portion of 
                                such assistance'';
                            (ii) by striking subparagraph (C);
                            (iii) in subparagraph (D)--
                                    (I) by striking ``approved''; and
                                    (II) by striking ``community work 
                                experience program'' and all that 
                                follows through the period and 
                                inserting ``community service 
                                program.''; and
                            (iv) by redesignating subparagraphs (D) and 
                        (E) as subparagraphs (C) and (D), respectively.
                    (B) in paragraph (3)--
                            (i) by striking ``any program of job search 
                        under subsection (g),''; and
                            (ii) by striking ``aid to families with 
                        dependent children'' and inserting ``assistance 
                        under the State program funded under part A''; 
                        and
                    (C) by striking paragraph (4).
            (7) Job placement voucher program.--Section 482(g) (42 
        U.S.C. 682(g)) is amended to read as follows:
    ``(g) Job Placement Voucher Program.--(1) The State agency may 
establish and operate a job placement voucher program for individuals 
participating in the program under this part.
    ``(2) A State that elects to operate a job placement voucher 
program under this subsection--
            ``(i) shall establish eligibility requirements for 
        participation in the job placement voucher program; and
            ``(ii) may establish other requirements for such voucher 
        program as the State deems appropriate.
    ``(3) A job placement voucher program operated by a State under 
this subsection shall include the following requirements:
            ``(A) The State shall identify, maintain, and make 
        available to an individual applying for or receiving assistance 
        under part A a list of State-approved job placement 
        organizations that offer services in the area where the 
        individual resides and a description of the job placement and 
        support services each such organization provides. Such 
        organizations may be publicly or privately owned and operated.
            ``(B)(i) An individual determined to be eligible for 
        assistance under part A shall, at the time the individual 
        becomes eligible for such assistance--
                    ``(I) receive the list and description described in 
                subparagraph (A);
                    ``(II) agree, in exchange for job placement and 
                support services, to--
                                    ``(aa) execute, within a period of 
                                time permitted by the State, a contract 
                                with a State-approved job placement 
                                organization which provides that the 
                                organization shall attempt to find 
                                employment for the individual; and
                                    ``(bb) comply with the terms of the 
                                contract; and
                    ``(III) receive a job placement voucher (in an 
                amount to be determined by the State) for payment to a 
                State-approved job placement organization.
            ``(ii) The State shall impose the sanctions provided for in 
        section 404(b) on any individual who does not fulfill the terms 
        of a contract executed with a State-approved job placement 
        organization.
            ``(C) At the time an individual executes a contract with a 
        State-approved job placement organization, the individual shall 
        provide the organization with the job placement voucher that 
        the individual received pursuant to subparagraph (B).
            ``(D)(i) A State-approved job placement organization may 
        redeem for payment from the State not more than 25 percent of 
        the value of a job placement voucher upon the initial receipt 
        of the voucher for payment of costs incurred in finding and 
        placing an individual in an employment position. The remaining 
        value of such voucher shall not be redeemed for payment from 
        the State until the State-approved job placement organization--
                    ``(I) finds an employment position (as determined 
                by the State) for the individual who provided the 
                voucher; and
                    ``(II) certifies to the State that the individual 
                remains employed with the employer that the 
                organization originally placed the individual with for 
                the greater of--
                            ``(aa) 6 continuous months; or
                            ``(bb) a period determined by the State.
            ``(ii) A State may modify, on a case-by-case basis, the 
        requirement of clause (i)(II) under such terms and conditions 
        as the State deems appropriate.
            ``(E)(i) The State shall establish performance-based 
        standards to evaluate the success of the State job placement 
        voucher program operated under this subsection in achieving 
        employment for individuals participating in such voucher 
        program. Such standards shall take into account the economic 
        conditions of the State in determining the rate of success.
            ``(ii) The State shall, not less than once a fiscal year, 
        evaluate the job placement voucher program operated under this 
        subsection in accordance with the performance-based standards 
        established under clause (i).
            ``(iii) The State shall submit a report containing the 
        results of an evaluation conducted under clause (ii) to the 
        Secretary and a description of the performance-based standards 
        used to conduct the evaluation in such form and under such 
        conditions as the Secretary shall require. The Secretary shall 
        review each report submitted under this clause and may require 
        the State to revise the performance-based standards if the 
        Secretary determines that the State is not achieving an 
        adequate rate of success for such State.''.
            (8) Dispute resolution procedures.--Section 482(h) (42 
        U.S.C. 682(h)) is amended by striking ``or through the 
        provision of a hearing pursuant to section 402(a)(4); but in no 
        event shall aid to families with dependent children'' and 
        inserting ``; but in no event shall assistance under the State 
        program funded under part A''.
            (9) Provisions relating to indian tribes.--Section 482(i) 
        (42 U.S.C. 682(i)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``training'' each place it 
                        appears; and
                            (ii) in the second sentence, by inserting 
                        ``, for fiscal years before 1996,'' after 
                        ``State'';
                    (B) in paragraph (2), by inserting ``, for fiscal 
                years before 1996,'' after ``paragraph (1)'';
                    (C) in paragraph (3)--
                            (i) by striking ``training'' each place it 
                        appears; and
                            (ii) by striking ``402(a)(19)'' and 
                        inserting ``404'';
                    (D) in paragraph (4)--
                            (i) by striking ``training''; and
                            (ii) by striking ``and the maximum amount'' 
                        and all that follows through the period at the 
                        end of the second sentence and inserting ``and 
                        the amount that may be paid under section 403 
                        to the State within which the tribe or Alaska 
                        Native organization is located shall be 
                        increased by any portion of the amount retained 
                        by the Secretary with respect to such program 
                        (and not payable to such tribe or Alaska Native 
                        organization for obligations already 
                        incurred).'';
                    (E) in paragraph (7)(D), by striking ``training'' 
                each place it appears;
                    (F) by redesignating paragraphs (3) through (8) as 
                paragraphs (4) through (9), respectively; and
                    (G) by inserting after paragraph (2), the following 
                new paragraph:
    ``(3) For any fiscal year after 1995, the amount of payment to any 
tribe or organization received under this subsection shall be an amount 
equal to the amount such tribe or organization received for fiscal year 
1994.''.
    (c) Coordination Requirements.--Section 483 (42 U.S.C. 683) is 
amended--
            (1) in subsection (a)(2), by striking ``not less than 60 
        days before its submission to the Secretary,'';
            (2) in subsection (b), by striking ``education and training 
        services'' and inserting ``necessary and supportive assistance 
        for employment''; and
            (3) in subsection (c), by striking ``approved''.
    (d) Provisions Generally Applicable.--Section 484 (42 U.S.C. 684) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``family 
                responsibilities,''; and
                    (B) in paragraph (5), by striking ``, the 
                participant's circumstances,'';
            (2) in subsection (c), by striking the last sentence; and
            (3) in subsection (e), by striking ``AFDC program'' and 
        inserting ``State program funded under part A''.
    (e) Contract Authority.--Section 485 (42 U.S.C. 685) is amended in 
subsections (a) and (c), by striking ``approved'' each place it 
appears.
    (f) Performance Standards.--Section 487(c) (42 U.S.C. 687(c)) is 
amended by striking ``matching rate'' and inserting ``payment to the 
States under section 403''.

SEC. 202. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on October 1, 1995, unless a State has exercised the option described 
in section 110(b).
                TITLE III--SUPPLEMENTAL SECURITY INCOME

                  Subtitle A--Eligibility Restrictions

SEC. 301. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY REASON OF 
              DISABILITY TO DRUG ADDICTS AND ALCOHOLICS.

    (a) In General.--Section 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is 
amended by adding at the end the following new subparagraph:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
    (b) Conforming Amendments.--
            (1) Section 1611(e) (42 U.S.C. 1382(e)) is amended by 
        striking paragraph (3).
            (2) Section 1631(a)(2)(A)(ii) (42 U.S.C. 1383(a)(2)(A)(ii)) 
        is amended--
                    (A) by striking ``(I)''; and
                    (B) by striking subclause (II).
            (3) Section 1631(a)(2)(B) (42 U.S.C. 1383(a)(2)(B)) is 
        amended--
                    (A) by striking clause (vii);
                    (B) in clause (viii), by striking ``(ix)'' and 
                inserting ``(viii)'';
                    (C) in clause (ix)--
                            (i) by striking ``(viii)'' and inserting 
                        ``(vii)''; and
                            (ii) in subclause (II), by striking all 
                        that follows ``15 years'' and inserting a 
                        period;
                    (D) in clause (xiii)--
                            (i) by striking ``(xii)'' and inserting 
                        ``(xi)''; and
                            (ii) by striking ``(xi)'' and inserting 
                        ``(x)''; and
                    (E) by redesignating clauses (viii) through (xiii) 
                as clauses (vii) through (xii), respectively.
            (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C. 
        1383(a)(2)(D)(i)(II)) is amended by striking all that follows 
        ``$25.00 per month'' and inserting a period.
            (5) Section 1634 (42 U.S.C. 1383c) is amended by striking 
        subsection (e).
            (6) Section 201(c)(1) of the Social Security Independence 
        and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
        amended--
                    (A) by striking ``--'' and all that follows through 
                ``(A)'' the 1st place it appears;
                    (B) by striking ``and'' the 3rd place it appears;
                    (C) by striking subparagraph (B);
                    (D) by striking ``either subparagraph (A) or 
                subparagraph (B)'' and inserting ``the preceding 
                sentence''; and
                    (E) by striking ``subparagraph (A) or (B)'' and 
                inserting ``the preceding sentence''.

SEC. 302. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI BENEFITS.

    Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a)) is amended--
            (1) in subparagraph (B)(i), by striking ``either'' and all 
        that follows through ``, or'' and inserting ``(I) a citizen; 
        (II) a noncitizen who is granted asylum under section 208 of 
        the Immigration and Nationality Act or whose deportation has 
        been withheld under section 243(h) of such Act for a period of 
        not more than 5 years after the date of arrival into the United 
        States; (III) a noncitizen who is admitted to the United States 
        as a refugee under section 207 of such Act for not more than 
        such 5-year period; (IV) a noncitizen, lawfully present in any 
        State (or any territory or possession of the United States), 
        who is a veteran (as defined in section 101 of title 38, United
         States Code) with a discharge characterized as an honorable 
discharge and not on account of alienage or who is the spouse or 
unmarried dependent child of such veteran; or (V) a noncitizen who has 
worked sufficient calendar quarters of coverage to be a fully insured 
individual for benefits under title II, or''; and
            (2) by adding at the end the following new flush sentence:
``For purposes of subparagraph (B)(i)(IV), the determination of whether 
a noncitizen is lawfully present in the United States shall be made in 
accordance with regulations of the Attorney General. A noncitizen shall 
not be considered to be lawfully present in the United States for 
purposes of this title merely because the noncitizen may be considered 
to be permanently residing in the United States under color of law for 
purposes of any particular program.''.

SEC. 303. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS FOUND TO 
              HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER TO 
              OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR MORE STATES.

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

SEC. 304. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION AND 
              PAROLE VIOLATORS.

    (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by 
section 301(b)(1) of this Act, is amended by inserting after paragraph 
(2) the following new paragraph:
    ``(3) A person shall not be an eligible individual or eligible 
spouse for purposes of this title with respect to any month if during 
such month the person is--
            ``(A) fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which the person flees, for a crime, or an attempt to commit a 
        crime, which is a felony under the laws of the place from which 
        the person flees, or which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State; or
            ``(B) violating a condition of probation or parole imposed 
        under Federal or State law.''.
    (b) Exchange of Information With Law Enforcement Agencies.--Section 
1631(e) (42 U.S.C. 1383(e)) is amended by inserting after paragraph (3) 
the following new paragraph:
    ``(4) Notwithstanding any other provision of law, the Commissioner 
shall furnish any Federal, State, or local law enforcement officer, 
upon the request of the officer, with the current address of any 
recipient of benefits under this title, if the officer furnishes the 
agency with the name of the recipient and notifies the agency that--
            ``(A) the recipient--
                    ``(i) is fleeing to avoid prosecution, or custody 
                or confinement after conviction, under the laws of the 
                place from which the person flees, for a crime, or an 
                attempt to commit a crime, which is a felony under the 
                laws of the place from which the person flees, or 
                which, in the case of the State of New Jersey, is a 
                high misdemeanor under the laws of such State;
                    ``(ii) is violating a condition of probation or 
                parole imposed under Federal or State law; or
                    ``(iii) has information that is necessary for the 
                officer to conduct the officer's official duties; and
            ``(B) the location or apprehension of the recipient is 
        within the officer's official duties.''.

SEC. 305. EFFECTIVE DATES; APPLICATION TO CURRENT RECIPIENTS.

    (a) Sections 301 and 302.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by sections 301 and 302 shall apply to 
        applicants for benefits for months beginning on or after the 
        date of the enactment of this Act, without regard to whether 
        regulations have been issued to implement such amendments.
            (2) Application to current recipients.--
                    (A) Application and notice.--Notwithstanding any 
                other provision of law, in the case of an individual 
                who is receiving supplemental security income benefits 
                under title XVI of the Social Security Act as of the 
                date of the enactment of this Act and whose eligibility 
                for such benefits would terminate by reason of the 
                amendments made by section 301 or 302, such amendments 
                shall apply with respect to the benefits of such 
                individual for months beginning on or after January 1, 
                1997, and the Commissioner of Social Security shall so 
                notify the individual not later than 90 days after the 
                date of the enactment of this Act.
                    (B) Reapplication.--
                            (i) In general.--Not later than 120 days 
                        after the date of the enactment of this Act, 
                        each individual notified pursuant to 
                        subparagraph (A) who desires to reapply for 
                        benefits under title XVI of the Social Security 
                        Act, as amended by this title, shall reapply to 
                        the Commissioner of Social Security.
                            (ii) Determination of eligibility.--Not 
                        later than 1 year after the date of the 
                        enactment of this Act, the Commissioner of 
                        Social Security shall determine the eligibility 
                        of each individual who reapplies for benefits 
                        under clause (i) pursuant to the procedures of 
                        such title.
    (b) Other Amendments.--The amendments made by sections 303 and 304 
shall take effect on the date of the enactment of this Act.

               Subtitle B--Benefits for Disabled Children

SEC. 311. RESTRICTIONS ON ELIGIBILITY FOR BENEFITS.

    (a) Definition of Childhood Disability.--Section 1614(a)(3) (42 
U.S.C. 1382c(a)(3)), as amended by section 301(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, pervasive, and severe functional limitations, and which can be 
expected to result in death or which has lasted or can be expected to 
last for a continuous period of not less than 12 months.''; and
            (5) in subparagraph (F), as redesignated by paragraph (3), 
        by striking ``(D)'' and inserting ``(E)''.
    (b) Changes to Childhood SSI Regulations.--
            (1) Modification to medical criteria for evaluation of 
        mental and emotional disorders.--The Commissioner of Social 
        Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
        of appendix 1 to subpart P of part 404 of title 20, Code of 
        Federal Regulations, to eliminate references to maladaptive 
        behavior in the domain of personal/behavorial function.
            (2) Discontinuance of individualized functional 
        assessment.--The Commissioner of Social Security shall 
        discontinue the individual functional assessment for children 
        set forth in sections 416.924d and 416.924e of title 20, Code 
        of Federal Regulations.
    (c) Effective Date; Application to Current Recipients.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to applicants for benefits for months beginning 
        on or after the date of the enactment of this Act, without 
        regard to whether regulations have been issued to implement 
        such amendments.
            (2) Application to current recipients.--
                    (A) Continuing disability reviews.--Not later than 
                1 year after the date of the enactment of this Act, the 
                Commissioner of Social Security shall redetermine 
                pursuant to the procedures of title XVI of the Social 
                Security Act the eligibility of any individual who is 
                receiving supplemental security income benefits under 
                title XVI of the Social Security Act as of the date of 
                the enactment of this Act and whose eligibility for 
                such benefits would terminate by reason of the 
                amendments made by subsection (a) or (b). The 
                Commissioner of Social Security shall give 
                redetermination reviews under this subparagraph 
                priority over other redetermination reviews.
                    (B) Grandfather and hold harmless.--The amendments 
                made by subsections (a) and (b), and the 
                redetermination under subparagraph (A), shall only 
                apply with respect to the benefits of an individual 
                described in subparagraph (A) for months beginning on 
                or after January 1, 1997, and such individual shall be 
                held harmless for any payment of benefits made until 
                such date.
                    (C) Notice.--Not later than 90 days after the date 
                of the enactment of this Act, the Commissioner of 
                Social Security shall notify an individual described in 
                subparagraph (A) of the provisions of this paragraph.

SEC. 312. CONTINUING DISABILITY REVIEWS.

    (a) Continuing Disability Reviews Relating for Certain Children.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by 
section 311(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 redetermine the 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 disability.
    ``(II) Subclause (I) shall not apply to an individual if the 
individual has an impairment (or combination of impairments) which is 
(or are) not expected to improve.''.
    (b) Disability Review Required for SSI Recipients Who Are 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 such 
        eligibility for applicants who have attained the age of 18 
        years.
A review under this clause shall be considered a substitute for a 
review otherwise required under any other provision of this 
subparagraph during that 1-year period.''.
            (2) Report to the congress.--Not later than October 1, 
        1998, the Commissioner of Social Security shall submit to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate a report on the 
        activities conducted under section 1614(a)(3)(H)(iii) of the 
        Social Security Act, as added by paragraph (1).
            (3) 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) 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 redetermine the 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 redetermination 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.''.
    (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. 313. TREATMENT REQUIREMENTS FOR DISABLED INDIVIDUALS UNDER THE AGE 
              OF 18.

    (a) In General.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is 
amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively; and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
    ``(E)(i) Not later than 3 months after the Commissioner determines 
that an individual under the age of 18 is eligible for benefits under 
this title by reason of disability (and periodically thereafter, as the 
Commissioner may require), the representative payee of such individual 
shall file with the State agency that makes disability determinations 
on behalf of the Commissioner of Social Security in the State in which 
such individual resides, a copy of the treatment plan required by 
clause (ii).
    ``(ii) The treatment plan required by this clause shall be 
developed by the individual's treating physician or other medical 
provider, or if approved by the Commissioner, other service provider, 
and shall describe the services that such physician or provider 
determines is appropriate for the treatment of such individual's 
impairment or combination of impairments. Such plan shall be in such 
form and contain such information as the Commissioner may prescribe.
    ``(iii) The representative payee of any individual described in 
clause (i) shall provide evidence of adherence to the treatment plan 
described in clause (ii) at the time of any redetermination of 
eligibility conducted pursuant to section 1614(a)(3)(G)(ii), and at 
such other time as the Commissioner may prescribe.
    ``(iv) The failure of a representative payee to comply without good 
cause with the requirements of clause (i) or (iii) shall constitute 
misuse of benefits to which subparagraph (A)(iii) (but not subparagraph 
(F)) shall apply. In providing for an alternative representative payee 
as required by subparagraph (A)(iii), the Commissioner shall give 
preference to the State agency that administers the State plan approved 
under title XIX for the State in which the individual described in 
clause (i) resides or any other State agency designated by the State 
for such responsibility, unless the Commissioner determines that 
selection of another organization or person would be appropriate. Any 
such State agency that serves as a representative payee shall be a 
`qualified organization' for purposes of subparagraph (D) of this 
paragraph.
    ``(v) This subparagraph 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 
determinations, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments) 
and the availability of treatment for such impairment (or impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of
 this subparagraph should not apply to an individual's representative 
payee.''.
    (b) Access to Medicaid Records.--
            (1) Requirement to furnish information.--Section 1902(a) 
        (42 U.S.C. 1396a(a)), as amended by section 103(b), is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (62);
                    (B) by striking the period at the end of paragraph 
                (63) and inserting ``; and''; and
                    (C) by adding after paragraph (63) the following 
                new paragraph:
            ``(64) provide that the State agency that administers the 
        plan described in this section shall make available to the 
        Commissioner of Social Security such information as the 
        Commissioner may request in connection with the verification of 
        information furnished to the Commissioner by a representative 
        payee pursuant to section 1631(a)(2)(E)(iii).''.
            (2) Reimbursement of state costs.--Section 1633 (42 U.S.C. 
        1383b) is amended by adding at the end the following new 
        subsection:
    ``(d) The Commissioner of Social Security shall reimburse a State 
for the costs of providing information pursuant to section 1902(a)(64) 
from funds available for carrying out this title.''.
    (c) Report to the Congress.--Not later than the last day of the 
36th month beginning after the date of the enactment of this Act, the 
Inspector General of the Social Security Administration shall report to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on the implementation of this 
section.
    (d) Effective Date.--This section shall take effect on the 1st day 
of the 12th month that begins after the date of the enactment of this 
Act.

         Subtitle C--Study of Disability Determination Process

SEC. 321. STUDY OF DISABILITY DETERMINATION PROCESS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and from funds otherwise appropriated, the 
Commissioner of Social Security shall contract with the National 
Academy of Sciences, or other independent entity, to conduct a 
comprehensive study of the disability determination process under 
titles II and XVI of the Social Security Act, including the validity, 
reliability, equity, and consistency with current scientific knowledge 
and standards of the Listing of Impairments set forth in appendix 1 of 
subpart P of part 404 of title 20, Code of Federal Regulations.
    (b) Study of Definitions.--The study described in subsection (a) 
shall also include an examination of the appropriateness of the 
definitions of disability in titles II and XVI of the Social Security 
Act and the advantages and disadvantages of alternative definitions.
    (c) Reports.--The Commissioner of Social Security shall, through 
the applicable entity, issue 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 12 months 
and 24 months, respectively, from the date of the contract for such 
study.

      Subtitle D--National Commission on the Future of Disability

SEC. 331. ESTABLISHMENT.

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

SEC. 332. 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. 333. MEMBERSHIP.

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

SEC. 334. 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. 335. 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. 336. REPORTS.

    (a) Interim Report.--Not later than 1 year prior to the date on 
which the Commission terminates pursuant to section 337, 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. 337. 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.
                        TITLE IV--CHILD SUPPORT

     Subtitle A--Eligibility for Services; Distribution of Payments

SEC. 401. 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) cash 
                        assistance is provided under the State program 
                        funded under part A of this title, (II) 
                        benefits or services are provided under the 
                        State program funded under part 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 (28)) 
                        that it is against the best interests of the 
                        child to do so; and
                            ``(ii) any other child, if an individual 
                        applies for such services with respect to the 
                        child; and
                    ``(B) enforce any support obligation established 
                with respect to--
                            ``(i) a child with respect to whom the 
                        State provides services under the plan; or
                            ``(ii) the custodial parent of such a 
                        child.''; and
            (2) in paragraph (6)--
                    (A) by striking ``provide that'' and inserting 
                ``provide that--'';
                    (B) by striking subparagraph (A) and inserting the 
                following new subparagraph:
                    ``(A) services under the plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (C) in subparagraph (B), by inserting ``on 
                individuals not receiving assistance under any State 
                program funded under part A'' after ``such services 
                shall be imposed'';
                    (D) in each of subparagraphs (B), (C), (D), and 
                (E)--
                            (i) by indenting the subparagraph in the 
                        same manner as, and aligning the left margin of 
                        the subparagraph with the left margin of, the 
                        matter inserted by subparagraph (B) of this 
                        paragraph; and
                            (ii) by striking the final comma and 
                        inserting a semicolon; and
                    (E) in subparagraph (E), by indenting each of 
                clauses (i) and (ii) 2 additional ems.
    (b) 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. 402. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
            ``(1) Families receiving cash assistance.--In the case of a 
        family receiving cash assistance from the State, the State 
        shall--
                    ``(A) retain, or distribute to the family, the 
                State share of the amount so collected; and
                    ``(B) pay to the Federal Government the Federal 
                share of the amount so collected.
            ``(2) Families that formerly received cash assistance.--In 
        the case of a family that formerly received cash assistance 
        from the State:
                    ``(A) Current support payments.--To the extent that 
                the amount so collected does not exceed the amount 
                required to be paid to the family for the month in 
                which collected, the State shall distribute the amount 
                so collected to the family.
                    ``(B) Payments of arrearages.--To the extent that 
                the amount so collected exceeds the amount required to 
                be paid to the family for the month in which collected, 
                the State shall distribute the amount so collected as 
                follows:
                            ``(i) Distribution to the family to satisfy 
                        arrearages that accrued before or after the 
                        family received cash assistance.--The State 
                        shall distribute the amount so collected to the 
                        family to the extent necessary to satisfy any 
                        support arrearages with respect to the family 
                        that accrued before or after the family 
                        received cash assistance from the State.
                            ``(ii) Reimbursement of governments for 
                        assistance provided to the family.--To the 
                        extent that clause (i) does not apply to the 
                        amount, the State shall retain the State share 
                        of the amount so collected, and pay to the 
                        Federal Government the Federal share of the 
                        amount so collected, to the extent necessary to 
                        reimburse amounts paid to the family as cash 
                        assistance from the State.
                            ``(iii) Distribution of the remainder to 
                        the family.--To the extent that neither clause 
                        (i) nor clause (ii) applies to the amount so 
                        collected, the State shall distribute the 
                        amount to the family.
            ``(3) Families that never received cash assistance.--In the 
        case of any other family, the State shall distribute the amount 
        so collected to the family.
    ``(b) Definitions.--As used in subsection (a):
            ``(1) Cash assistance.--The term `cash assistance from the 
        State' means--
                    ``(A) cash assistance under the State program 
                funded under part A or under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1995); or
                    ``(B) cash benefits under the State program funded 
                under part B or under the State plan approved under 
                part B or E of this title (as in effect before October 
                1, 1995).
            ``(2) Federal share.--The term `Federal share' means, with 
        respect to an amount collected by the State to satisfy a 
        support obligation owed to a family for a time period--
                    ``(A) the greatest Federal medical assistance 
                percentage in effect for the State for fiscal year 1995 
                or any succeeding fiscal year; or
                    ``(B) if support is not owed to the family for any 
                month for which the family received aid to families 
                with dependent children under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1995), the Federal reimbursement percentage for the 
                fiscal year in which the time period occurs.
            ``(3) Federal medical assistance percentage.--The term 
        `Federal medical assistance percentage' means--
                    ``(A) the Federal medical assistance percentage (as 
                defined in section 1905(b)) in the case of any State 
                for which subparagraph (B) does not apply; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.
            ``(4) Federal reimbursement percentage.--The term `Federal 
        reimbursement percentage' means, with respect to a fiscal 
        year--
                    ``(A) the total amount paid to the State under 
                section 403 for the fiscal year; divided by
                    ``(B) the total amount expended by the State to 
                carry out the State program under part A during the 
                fiscal year.
            ``(5) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(c) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--When a family 
with respect to which services are provided under a State plan approved 
under this part ceases to receive assistance under the State program 
funded under part A, the State shall provide appropriate notice to the 
family and continue to provide such services, subject to the same 
conditions and on the same basis as in the case of individuals to whom 
services are furnished under section 454, except that an application or 
other request to continue services shall not be required of such a 
family and section 454(6)(B) shall not apply to the family.''.
    (b) Clerical Amendments.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11)--
                    (A) by striking ``(11)'' and inserting ``(11)(A)''; 
                and
                    (B) by inserting after the semicolon ``and''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (c) Effective Date.--
            (1) General rule.--Except as provided in paragraphs (2) and 
        (3), the amendment made by subsection (a) shall become 
        effective on October 1, 1999.
            (2) Earlier effective date for rules relating to 
        distribution of support collected for families receiving cash 
        assistance.--Section 457(a)(1) of the Social Security Act, as 
        added by the amendment made by subsection (a), shall become 
        effective on October 1, 1995.
            (3) Clerical amendments.--The amendments made by subsection 
        (b) shall become effective on October 1, 1995.

SEC. 403. RIGHTS TO NOTIFICATION AND HEARINGS.

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

SEC. 404. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by adding after paragraph (24) the following new 
        paragraph:
            ``(25) will have in effect safeguards, applicable to all 
        confidential information handled by the State agency, that are 
        designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party against whom a protective order with respect to 
                the former party has been entered; and
                    ``(C) prohibitions against the release of 
                information on the whereabouts of 1 party to another 
                party if the State has reason to believe that the 
                release of the information may result in physical or 
                emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  Subtitle B--Locate and Case Tracking

SEC. 411. STATE CASE REGISTRY.

    Section 454A, as added by section 445(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. 412. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 404(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following new 
        paragraph:
            ``(26) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and
                    ``(B) have sufficient State staff (consisting of 
                State employees), and (at State option) contractors 
                reporting directly to the State agency, to--
                            ``(i) monitor and enforce support 
                        collections through the unit (including 
                        carrying out the automated data processing 
                        responsibilities described in section 454A(g)); 
                        and
                            ``(ii) take the actions described in 
                        section 466(c)(1) in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669), as amended by section 445(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 in all cases being enforced by 
        the State pursuant to section 454(4).
            ``(2) Operation.--The State disbursement unit shall be 
        operated--
                    ``(A) directly by the State agency (or 2 or more 
                State agencies under a regional cooperative agreement), 
                or (to the extent appropriate) by a contractor 
                responsible directly to the State agency; and
                    ``(B) in coordination with the automated system 
                established by the State pursuant to section 454A.
            ``(3) Linking of local disbursement units.--The State 
        disbursement unit may be established by linking local 
        disbursement units through an automated information network, 
        subject to this section. The Secretary must agree that the 
        system will not cost more nor take more time to establish or 
        operate than a centralized system. In addition, employers shall 
        be given 1 location to which income withholding is sent.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the agencies of other 
        States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to any parent, upon request, timely 
        information on the current status of support payments under an 
        order requiring payments to be made by or to the parent.
    ``(c) Timing of Disbursements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        State disbursement unit shall distribute all amounts payable 
        under section 457(a) within 2 business days after receipt from 
        the employer or other source of periodic income, if sufficient 
        information identifying the payee is provided.
            ``(2) Permissive retention of arrearages.--The State 
        disbursement unit may delay the distribution of collections 
        toward arrearages until the resolution of any timely appeal 
        with respect to such arrearages.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
445(a)(2) of this Act and as amended by section 411 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)) where payments are not timely made.
            ``(2) Business day defined.--As used in paragraph (1), the 
        term `business day' means a day on which State offices are open 
        for regular business.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 413. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 404(a) and 412(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, 1997, the 
        State will operate a State Directory of New Hires in accordance 
        with section 453A.''.
    (b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 
651-669) is amended by inserting after section 453 the following new 
section:

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

    ``(a) Establishment.--
            ``(1) In general.--Not later than October 1, 1997, each 
        State shall establish an automated directory (to be known as 
        the `State Directory of New Hires') which shall contain 
        information supplied in accordance with subsection (b) by 
        employers on each newly hired employee.
            ``(2) Definitions.--As used in this section:
                    ``(A) Employee.--The term `employee'--
                            ``(i) means an individual who is an 
                        employee within the meaning of chapter 24 of 
                        the Internal Revenue Code of 1986; and
                            ``(ii) does not include an employee of a 
                        Federal or State agency performing intelligence 
                        or counterintelligence functions, if the head 
                        of such agency has determined that reporting 
                        pursuant to paragraph (1) with respect to the 
                        employee could endanger the safety of the 
                        employee or compromise an ongoing investigation 
                        or intelligence mission.
                    ``(B) Employer.--The term `employer' includes--
                            ``(i) any governmental entity, and
                            ``(ii) any labor organization.
                    ``(C) Labor organization.--The term `labor 
                organization' shall have the meaning given such term in 
                section 2(5) of the National Labor Relations Act, and 
                includes any entity (also known as a `hiring hall') 
                which is used by the organization and an employer to 
                carry out requirements described in section 8(f)(3) of 
                such Act of an agreement between the organization and 
                the employer.
    ``(b) Employer Information.--
            ``(1) Reporting requirement.--Each employer shall furnish 
        to the Directory of New Hires of the State in which a newly 
        hired employee works, a report that contains the name, address, 
        and social security number of the employee, and the name of, 
        and identifying number assigned under section 6109 of the 
        Internal Revenue Code of 1986 to, the employer.
            ``(2) Timing of report.--The report required by paragraph 
        (1) with respect to an employee shall be made not later than 
        the later of--
                    ``(A) 15 days after the date the employer hires the 
                employee; or
                    ``(B) in the case of an employer that reports by 
                magnetic or electronic means, the 1st business day of 
                the week following the date on which the employee 1st 
                receives wages or other compensation from the employer.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or the equivalent, and may 
be transmitted by 1st class mail, magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--
            ``(1) In general.--An employer that fails to comply with 
        subsection (b) with respect to an employee shall be subject to 
        a civil money penalty of--
                    ``(A) $25; or
                    ``(B) $500 if, under State law, the failure is the 
                result of a conspiracy between the employer and the 
                employee to not supply the required report or to supply 
                a false or incomplete report.
            ``(2) Applicability of section 1128.--Section 1128 (other 
        than subsections (a) and (b) of such section) shall apply to a 
        civil money penalty under paragraph (1) of this subsection in 
        the same manner as such section applies to a civil money 
        penalty or proceeding under section 1128A(a).
    ``(e) Entry of Employer Information.--Information shall be entered 
into the data base maintained by the State Directory of New Hires 
within 5 business days of receipt from an employer pursuant to 
subsection (b).
    ``(f) Information Comparisons.--
            ``(1) In general.--Not later than October 1, 1998, an 
        agency designated by the State shall, directly or by contract, 
        conduct automated comparisons of the social security numbers 
        reported by employers pursuant to subsection (b) and the social 
        security numbers appearing in the records of the State case 
        registry for cases being enforced under the State plan.
            ``(2) Notice of match.--When an information comparison 
        conducted under paragraph (1) reveals a match with respect to 
        the social security number of an individual required to provide 
        support under a support order, the State Directory of New Hires 
        shall provide the agency administering the State plan approved 
        under this part of the appropriate State with the name, 
        address, and social security number of the employee to whom the 
        social security number is assigned, and the name of, and 
        identifying number assigned under section 6109 of the Internal 
        Revenue Code of 1986 to, the employer.
    ``(g) Transmission of Information.--
            ``(1) Transmission of wage withholding notices to 
        employers.--Within 2 business days after the date information 
        regarding a newly hired employee is entered into the State 
        Directory of New Hires, the State agency enforcing the 
        employee's child support obligation shall transmit a notice to 
        the employer of the employee directing the employer to withhold 
        from the wages of the employee an amount equal to the monthly 
        (or other periodic) child support obligation of the employee, 
        unless the employee's wages are not subject to withholding 
        pursuant to section 466(b)(3).
            ``(2) Transmissions to the national directory of new 
        hires.--
                    ``(A) New hire information.--Within 2 business days 
                after the date information regarding a newly hired 
                employee is entered into the State Directory of New 
                Hires, the State Directory of New Hires shall furnish 
                the information to the National Directory of New Hires.
                    ``(B) Wage and unemployment compensation 
                information.--The State Directory of New Hires shall, 
                on a quarterly basis, furnish to the National Directory 
                of New Hires extracts of the reports required under 
                section 303(a)(6) to be made to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals, by such dates, in such format, and 
                containing such information as the Secretary of Health 
                and Human Services shall specify in regulations.
            ``(3) Business day defined.--As used in this subsection, 
        the term `business day' means a day on which State offices are 
        open for regular business.
    ``(h) Other Uses of New Hire Information.--
            ``(1) Location of child support obligors.--The agency 
        administering the State plan approved under this part shall use 
        information received pursuant to subsection (f)(2) to locate 
        individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations.
            ``(2) Verification of eligibility for certain programs.--A 
        State agency responsible for administering a program specified 
        in section 1137(b) shall have access to information reported by 
        employers pursuant to subsection (b) of this section for 
        purposes of verifying eligibility for the program.
            ``(3) Administration of employment security and workers' 
        compensation.--State agencies operating employment security and 
        workers' compensation programs shall have access to information 
        reported by employers pursuant to subsection (b) for the 
        purposes of administering such programs.''.
SEC. 414. 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(a)(8)(B)(iii) (42 U.S.C. 
                666(a)(8)(B)(iii)) is amended--
                            (i) by striking ``(5),''; and
                            (ii) by inserting ``, and, at the option of 
                        the State, the requirements of subsection 
                        (b)(5)'' before the period.
                    (B) Section 466(b) (42 U.S.C. 666(b)) is amended in 
                the matter preceding paragraph (1), by striking 
                ``subsection (a)(1)'' and inserting ``subsection 
                (a)(1)(A)''.
                    (C) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is 
                amended to read as follows:
            ``(4)(A) Such withholding must be carried out in full 
        compliance with all procedural due process requirements of the 
        State, and the State must send notice to each absent parent to 
        whom paragraph (1) applies--
                    ``(i) that the withholding has commenced; and
                    ``(ii) of the procedures to follow if the absent 
                parent desires to contest such withholding on the 
                grounds that the withholding or the amount withheld is 
                improper due to a mistake of fact.
            ``(B) The notice under subparagraph (A) shall include the 
        information provided to the employer under paragraph (6)(A).''.
                    (D) 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.''.
                    (E) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) 
                is amended--
                            (i) in clause (i), by striking ``to the 
                        appropriate agency'' and all that follows and 
                        inserting ``to the State disbursement unit 
                        within 2 business days after the date the 
                        amount would (but for this subsection) have 
                        been paid or credited to the employee, for 
                        distribution in accordance with this part.'';
                            (ii) in clause (ii), by inserting ``be in a 
                        standard format prescribed by the Secretary, 
                        and'' after ``shall''; and
                            (iii) by adding at the end the following 
                        new clause:
            ``(iii) As used in this subparagraph, the term `business 
        day' means a day on which State offices are open for regular 
        business.''.
                    (F) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) 
                is amended by striking ``any employer'' and all that 
                follows and inserting ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which it 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State disbursement unit in 
                accordance with this subsection.''.
                    (G) Section 466(b) (42 U.S.C. 666(b)) is amended by 
                adding at the end the following new paragraph:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order through electronic means and without advance notice to 
        the obligor.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 415. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at the end 
the following new paragraph:
            ``(12) Procedures to ensure that all Federal and State 
        agencies conducting activities under this part have access to 
        any system used by the State to locate an individual for 
        purposes relating to motor vehicles or law enforcement.''.
SEC. 416. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting ``, for the purpose of 
        establishing parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations, or enforcing 
        child visitation orders--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support or provide child visitation rights;
                    ``(B) against whom such an obligation is sought;
                    ``(C) to whom such an obligation is owed,
        including the individual's social security number (or numbers), 
        most recent address, and the name, address, and employer 
        identification number of the individual's employer;
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.''; and
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``social security'' and all that follows 
        through ``absent parent'' and inserting ``information described 
        in subsection (a)''.
    (b) Authorized Person for Information Regarding Visitation 
Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
            (1) in paragraph (1), by striking ``support'' and inserting 
        ``support or to seek to enforce orders providing child 
        visitation rights'';
            (2) in paragraph (2), by striking ``, or any agent of such 
        court; and'' and inserting ``or to issue an order against a 
        resident parent for visitation rights, or any agent of such 
        court;'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) the absent parent, only with regard to a court order 
        against a resident parent for child visitation rights.''.
    (c) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (d) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following new 
subsection:
    ``(g) The Secretary may reimburse Federal and State agencies for 
the costs incurred by such entities in furnishing information requested 
by the Secretary under this section in an amount which the Secretary 
determines to be reasonable payment for the information exchange (which 
amount shall not include payment for the costs of obtaining, compiling, 
or maintaining the information).''.
    (e) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
        463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
        and 663(f)) are each amended by inserting ``Federal'' before 
        ``Parent'' each place such term appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (d) of this section, is amended by adding at the end the 
following new subsection:
    ``(h)(1) Not later than October 1, 1998, in order to assist States 
in administering programs under State plans approved under this part 
and programs funded under part A, and for the other purposes specified 
in this section, the Secretary shall establish and maintain in the 
Federal Parent Locator Service an automated registry (which shall be 
known as the `Federal Case Registry of Child Support Orders'), which 
shall contain abstracts of support orders and other information 
described in paragraph (2) with respect to each case in each State case 
registry maintained pursuant to section 454A(e), as furnished (and 
regularly updated), pursuant to section 454A(f), by State agencies 
administering programs under this part.
    ``(2) The information referred to in paragraph (1) with respect to 
a case shall be such information as the Secretary may specify in 
regulations (including the names, social security numbers or other 
uniform identification numbers, and State case identification numbers) 
to identify the individuals who owe or are owed support (or with 
respect to or on behalf of whom support obligations are sought to be 
established), and the State or States which have the case.
    ``(i)(1) In order to assist States in administering programs under 
State plans approved under this part and programs funded under part A, 
and for the other purposes specified in this section, the Secretary 
shall, not later than October 1, 1996, establish and maintain in the 
Federal Parent Locator Service an automated directory to be known as 
the National Directory of New Hires, which shall contain the 
information supplied pursuant to section 453A(g)(2).
    ``(2) Information shall be entered into the data base maintained by 
the National Directory of New Hires within 2 business days of receipt 
pursuant to section 453A(g)(2).
    ``(3) The Secretary of the Treasury shall have access to the 
information in the National Directory of New Hires for purposes of 
administering section 32 of the Internal Revenue Code of 1986, or the 
advance payment of the earned income tax credit under section 3507 of 
such Code, and verifying a claim with respect to employment in a tax 
return.
    ``(j)(1)(A) The Secretary shall transmit information on individuals 
and employers maintained under this section to the Social Security 
Administration to the extent necessary for verification in accordance 
with subparagraph (B).
    ``(B) The Social Security Administration shall verify the accuracy 
of, correct, or supply to the extent possible, and report to the 
Secretary, the following information supplied by the Secretary pursuant 
to subparagraph (A):
            ``(i) The name, social security number, and birth date of 
        each such individual.
            ``(ii) The employer identification number of each such 
        employer.
    ``(2) For the purpose of locating individuals in a paternity 
establishment case or a case involving the establishment, modification, 
or enforcement of a support order, the Secretary shall--
            ``(A) compare information in the National Directory of New 
        Hires against information in the support case abstracts in the 
        Federal Case Registry of Child Support Orders not less often 
        than every 2 business days; and
            ``(B) within 2 such days after such a comparison reveals a 
        match with respect to an individual, report the information to 
        the State agency responsible for the case.
    ``(3) To the extent and with the frequency that the Secretary 
determines to be effective in assisting States to carry out their 
responsibilities under programs operated under this part and programs 
funded under part A, the Secretary shall--
            ``(A) compare the information in each component of the 
        Federal Parent Locator Service maintained under this section 
        against the information in each other such component (other 
        than the comparison required by paragraph (2)), and report 
        instances in which such a comparison reveals a match with 
        respect to an individual to State agencies operating such 
        programs; and
            ``(B) disclose information in such registries to such State 
        agencies.
    ``(4) The National Directory of New Hires shall provide the 
Commissioner of Social Security with all information in the National 
Directory, which shall be used to determine the accuracy of payments 
under the supplemental security income program under title XVI and in 
connection with benefits under title II.
    ``(5) The Secretary may provide access to information reported by 
employers pursuant to section 453A(b) for research purposes found by 
the Secretary to be likely to contribute to achieving the purposes of 
part A or this part, but without personal identifiers.
    ``(k)(1) The Secretary shall reimburse the Commissioner of Social 
Security, at a rate negotiated between the Secretary and the 
Commissioner, for the costs incurred by the Commissioner in performing 
the verification services described in subsection (j).
    ``(2) The Secretary shall reimburse costs incurred by State 
directories of new hires in furnishing information as required by 
subsection (j)(3), at rates which the Secretary determines to be 
reasonable (which rates shall not include payment for the costs of 
obtaining, compiling, or maintaining such information).
    ``(3) A State or Federal agency that receives information from the 
Secretary pursuant to this section shall reimburse the Secretary for 
costs incurred by the Secretary in furnishing the information, at rates 
which the Secretary determines to be reasonable (which rates shall 
include payment for the costs of obtaining, verifying, maintaining, and 
comparing the information).
    ``(l) Information in the Federal Parent Locator Service, and 
information resulting from comparisons using such information, shall 
not be used or disclosed except as expressly provided in this section, 
subject to section 6103 of the Internal Revenue Code of 1986.
    ``(m) The Secretary shall establish and implement safeguards with 
respect to the entities established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.''.
    (f) Quarterly Wage Reporting.--Section 1137(a)(3) (42 U.S.C. 1320b-
7(a)(3)) is amended--
            (1) by inserting ``(including governmental entities)'' 
        after ``employers''; and
            (2) by inserting ``, and except that no report shall be 
        filed with respect to an employee of a Federal or State agency 
        performing intelligence or counterintelligence functions, if 
        the head of such agency has determined that filing such a 
        report could endanger the safety of the employee or compromise 
        an ongoing investigation or intelligence mission'' after 
        ``paragraph (2)''.
    (g) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(a)(16) 
        of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                National Directory of New Hires established under 
                section 453(i) of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking ``and'' at the end of paragraph 
                (9);
                    (C) by striking the period at the end of paragraph 
                (10) and inserting ``; and''; and
                    (D) by adding after paragraph (10) the following 
                new paragraph:
            ``(11) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 417. 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 415 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(13) Procedures requiring that the social security number 
        of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application;
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter; and
                    ``(C) any individual who has died be placed in the 
                records relating to the death and be recorded on the 
                death certificate.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        furnish to the State (or political subdivision thereof), or any 
        State agency having administrative responsibility for the law 
        involved, the social security number of the party.'';
            (3) in clause (vi), by striking ``may'' and inserting 
        ``shall''; and
            (4) by adding at the end the following new clauses:
                            ``(x) An agency of a State (or a political 
                        subdivision thereof) charged with the 
                        administration of any law concerning the 
                        issuance or renewal of a license, certificate, 
                        permit, or other authorization to engage in a 
                        profession, an occupation, or a commercial 
                        activity shall require all applicants for 
                        issuance or renewal of the license, 
                        certificate, permit, or other authorization to 
                        provide the applicant's social security number 
                        to the agency for the purpose of administering 
                        such laws, and for the purpose of responding to 
                        requests for information from an agency 
                        operating pursuant to part D of title IV.
                            ``(xi) All divorce decrees, support orders, 
                        and paternity determinations issued, and all 
                        paternity acknowledgments made, in each State 
                        shall include the social security number of 
                        each party to the decree, order, determination, 
                        or acknowledgement in the records relating to 
                        the matter.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 421. ADOPTION OF UNIFORM STATE LAWS.

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

SEC. 422. 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. 423. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 415 and 
417(a) of this Act, is amended by adding at the end the following new 
paragraph:
            ``(14) Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State; and
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case;
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
                            ``(i) the number of such requests for 
                        assistance received by the State;
                            ``(ii) the number of cases for which the 
                        State collected support in response to such a 
                        request; and
                            ``(iii) the amount of such collected 
                        support.''.

SEC. 424. 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, 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. 425. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 414 of this Act, is amended--
            (1) in subsection (a)(2), by striking the 1st sentence and 
        inserting the following: ``Expedited administrative and 
        judicial procedures (including the procedures specified in 
        subsection (c)) for establishing paternity and for 
        establishing, modifying, and enforcing support obligations.''; 
        and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) The procedures specified in this subsection are the 
following:
            ``(1) Procedures which give the State agency the authority 
        to take the following actions relating to establishment or 
        enforcement of support orders, without the necessity of 
        obtaining an order from any other judicial or administrative 
        tribunal, and to recognize and enforce the authority of State 
        agencies of other States) to take the following actions:
                    ``(A) To order genetic testing for the purpose of 
                paternity establishment as provided in section 
                466(a)(5).
                    ``(B) To enter a default order, upon a showing of 
                service of process and any additional showing required 
                by State law--
                            ``(i) establishing paternity, in the case 
                        of a putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) To subpoena any financial or other 
                information needed to establish, modify, or enforce a 
                support order, and to impose penalties for failure to 
                respond to such a subpoena.
                    ``(D) 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.
                    ``(E) 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).
                    ``(F) In cases where support is subject to an 
                assignment in order to comply with a requirement 
                imposed pursuant to part A or section 1912, or to a 
                requirement to pay through the State disbursement unit 
                established pursuant to section 454B, upon providing 
                notice to obligor and obligee, to direct the obligor or 
                other payor to change the payee to the appropriate 
                government entity.
                    ``(G) To order income withholding in accordance 
                with subsections (a)(1) and (b) of section 466.
                    ``(H) 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.
                    ``(I) For the purpose of securing overdue support, 
                to increase the amount of monthly support payments to 
                include amounts for arrearages, subject to such 
                conditions or limitations as the State may provide.
        Such procedures shall be subject to due process safeguards, 
        including (as appropriate) requirements for notice, opportunity 
        to contest the action, and opportunity for an appeal on the 
        record to an independent administrative or judicial tribunal.
            ``(2) The expedited procedures required under subsection 
        (a)(2) shall include the following rules and authority, 
        applicable with respect to all proceedings to establish 
        paternity or to establish, modify, or enforce support orders:
                    ``(A) Procedures under which--
                            ``(i) each party to any paternity or child 
                        support proceeding is required (subject to 
                        privacy safeguards) to file with the tribunal 
                        and the State case registry upon entry of an 
                        order, and to update as appropriate, 
                        information on location and identity of the 
                        party, including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and name and telephone number of 
                        employer; and
                            ``(ii) in any subsequent child support 
                        enforcement action between the parties, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain the location of such a 
                        party, the tribunal may deem State due process 
                        requirements for notice and service of process 
                        to be met with respect to the party, upon 
                        delivery of written notice to the most recent 
                        residential or employer address filed with the 
                        tribunal pursuant to clause (i).
                    ``(B) Procedures under which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between local 
                        jurisdictions in the State without need for any 
                        additional filing by the petitioner, or service 
                        of process upon the respondent, to retain 
                        jurisdiction over the parties.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 445(a)(2) of this Act and as amended by sections 411 and 
412(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. 431. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
            ``(5)(A)(i) Procedures which permit the establishment of 
        the paternity of a child at any time before the child attains 
        21 years of age.
            ``(ii) As of August 16, 1984, clause (i) shall also apply 
        to a child for whom paternity has not been established or for 
        whom a paternity action was brought but dismissed because a 
        statute of limitations of less than 21 years was then in effect 
        in the State.
            ``(B)(i) Procedures under which the State is required, in a 
        contested paternity case, unless otherwise barred by State law, 
        to require the child and all other parties (other than 
        individuals found under section 454(28) to have good cause for 
        refusing to cooperate) to submit to genetic tests upon the 
        request of any such party if the request is supported by a 
        sworn statement by the party--
                    ``(I) alleging paternity, and setting forth facts 
                establishing a reasonable possibility of the requisite 
                sexual contact between the parties; or
                    ``(II) denying paternity, and setting forth facts 
                establishing a reasonable possibility of the 
                nonexistence of sexual contact between the parties.
            ``(ii) Procedures which require the State agency in any 
        case in which the agency orders genetic testing--
                    ``(I) to pay costs of such tests, subject to 
                recoupment (where the State so elects) from the alleged 
                father if paternity is established; and
                    ``(II) to obtain additional testing in any case 
                where an original test result is contested, upon 
                request and advance payment by the contestant.
            ``(C)(i) Procedures for a simple civil process for 
        voluntarily acknowledging paternity under which the State must 
        provide that, before a mother and a putative father can sign an 
        acknowledgment of paternity, the mother and the putative father 
        must be given notice, orally and in writing, of the 
        alternatives to, the legal consequences of, and the rights 
        (including, if 1 parent is a minor, any rights afforded due to 
        minority status) and responsibilities that arise from, signing 
        the acknowledgment.
            ``(ii) Such procedures must include a hospital-based 
        program for the voluntary acknowledgment of paternity focusing 
        on the period immediately before or after the birth of a child.
            ``(iii)(I) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(II)(aa) The Secretary shall prescribe regulations 
        governing voluntary paternity establishment services offered by 
        hospitals and birth record agencies.
            ``(bb) The Secretary shall prescribe regulations specifying 
        the types of other entities that may offer voluntary paternity 
        establishment services, and governing the provision of such 
        services, which shall include a requirement that such an entity 
        must use the same notice provisions used by, use the same 
        materials used by, provide the personnel providing such 
        services with the same training provided by, and evaluate the 
        provision of such services in the same manner as the provision 
        of such services is evaluated by, voluntary paternity 
        establishment programs of hospitals and birth record agencies.
            ``(iv) Such procedures must require the State to develop 
        and use an affidavit for the voluntary acknowledgment of 
        paternity which includes the minimum requirements of the 
        affidavit developed by the Secretary under section 452(a)(7) 
        for the voluntary acknowledgment of paternity, and to give full 
        faith and credit to such an affidavit signed in any other State 
        according to its procedures.
            ``(D)(i) Procedures under which the name of the father 
        shall be included on the record of birth of the child only if 
        the father and mother have signed an acknowledgment of 
        paternity and under which a signed acknowledgment of paternity 
        is considered a legal finding of paternity, subject to the 
        right of any signatory to rescind the acknowledgment within 60 
        days.
            ``(ii) Procedures under which, after the 60-day period 
        referred to in clause (i), a signed acknowledgment of paternity 
        may be challenged in court only on the basis of fraud, duress, 
        or material mistake of fact, with the burden of proof upon the 
        challenger, and under which the legal responsibilities 
        (including child support obligations) of any signatory arising 
        from the acknowledgment may not be suspended during the 
        challenge, except for good cause shown.
            ``(E) Procedures under which judicial or administrative 
        proceedings are not required or permitted to ratify an 
        unchallenged acknowledgment of paternity.
            ``(F) Procedures--
                    ``(i) requiring the admission into evidence, for 
                purposes of establishing paternity, of the results of 
                any genetic test that is--
                            ``(I) of a type generally acknowledged as 
                        reliable by accreditation bodies designated by 
                        the Secretary; and
                            ``(II) performed by a laboratory approved 
                        by such an accreditation body;
                    ``(ii) requiring an objection to genetic testing 
                results to be made in writing not later than a 
                specified number of days before any hearing at which 
                the results may be introduced into evidence (or, at 
                State option, not later than a specified number of days 
                after receipt of the results); and
                    ``(iii) making the test results admissible as 
                evidence of paternity without the need for foundation 
                testimony or other proof of authenticity or accuracy, 
                unless objection is made.
            ``(G) Procedures which create a rebuttable or, at the 
        option of the State, conclusive presumption of paternity upon 
        genetic testing results indicating a threshold probability that 
        the alleged father is the father of the child.
            ``(H) Procedures requiring a default order to be entered in 
        a paternity case upon a showing of service of process on the 
        defendant and any additional showing required by State law.
            ``(I) Procedures providing that the parties to an action to 
        establish paternity are not entitled to a trial by jury.
            ``(J) Procedures which require that a temporary order be 
        issued, upon motion by a party, requiring the provision of 
        child support pending an administrative or judicial 
        determination of parentage, where there is clear and convincing 
        evidence of paternity (on the basis of genetic tests or other 
        evidence).
            ``(K) Procedures under which bills for pregnancy, 
        childbirth, and genetic testing are admissible as evidence 
        without requiring third-party foundation testimony, and shall 
        constitute prima facie evidence of amounts incurred for such 
        services or for testing on behalf of the child.
            ``(L) Procedures ensuring that the putative father has a 
        reasonable opportunity to initiate a paternity action.
            ``(M) Procedures under which voluntary acknowledgments and 
        adjudications of paternity by judicial or administrative 
        processes are filed with the State registry of birth records 
        for comparison with information in the State case registry.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security number of each parent'' before 
the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 432. 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. 433. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 404(a), 412(a), 
and 413(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (27) the following new 
        paragraph:
            ``(28) 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 
                is cooperating in good faith with the State in 
                establishing the paternity of, or in establishing, 
                modifying, or enforcing a support order for, any child 
                of the individual by providing the State agency with 
                the name of, and such other information as the State 
                agency may require with respect to, the father of the 
                child, subject to such good cause and other exceptions 
                as the State may establish and taking into account the 
                best interests of the child;
                    ``(B) shall require the individual to supply 
                additional necessary information and appear at 
                interviews, hearings, and legal proceedings;
                    ``(C) shall require the individual and the child to 
                submit to genetic tests pursuant to judicial or 
                administrative order; and
                    ``(D) shall promptly notify the individual and the 
                State agency administering the State program funded 
                under part A of each such determination, and if 
                noncooperation is determined, the basis therefore.''.

             Subtitle E--Program Administration and Funding

SEC. 441. FEDERAL MATCHING PAYMENTS.

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

SEC. 442. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

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

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

SEC. 443. 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, which shall 
                include such information as may be necessary to measure 
                State compliance with Federal requirements for 
                expedited procedures, using such standards and 
                procedures as are required by the Secretary, under 
                which the State agency will determine the extent to 
                which the program is operated in compliance with this 
                part; and
                    ``(B) a process of extracting from the automated 
                data processing system required by paragraph (16) and 
                transmitting to the Secretary data and calculations 
                concerning the levels of accomplishment (and rates of 
                improvement) with respect to applicable performance 
                indicators (including IV-D paternity establishment 
                percentages and overall performance in child support 
                enforcement) to the extent necessary for purposes of 
                sections 452(g) and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of subsection (g) of this section and section 458;
            ``(B) review annual reports submitted pursuant to section 
        454(15)(A) and, as appropriate, provide to the State comments, 
        recommendations for additional or alternative corrective 
        actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the Government 
        auditing standards of the Comptroller General of the United 
        States--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                the requirements of this part, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                in calculating performance indicators under subsection 
                (g) of this section and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program operated under the State plan 
                approved under this part, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program are 
                        being appropriately expended, and are properly 
                        and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments are carried 
                        out correctly and are fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning 12 months or more 
after the date of the enactment of this section.

SEC. 444. 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 404(a), 412(a), 413(a), and 433 of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding after paragraph (28) the following new 
        paragraph:
            ``(29) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 445. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds in carrying out the program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required by this 
section, which shall include the following (in addition to such other 
safeguards as the Secretary may specify in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out the State program under 
                this part; and
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies described in paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--Procedures to ensure that 
        all personnel (including State and local agency staff and 
        contractors) who may have access to or be required to use 
        confidential program data are informed of applicable 
        requirements and penalties (including those in section 6103 of 
        the Internal Revenue Code of 1986), and are adequately trained 
        in security procedures.
            ``(5) Penalties.--Administrative penalties (up to and 
        including dismissal from employment) for unauthorized access 
        to, or disclosure or use of, confidential data.''.
            (3) Regulations.--The Secretary of Health and Human 
        Services shall prescribe final regulations for implementation 
        of section 454A of the Social Security Act not later than 2 
        years after the date of the enactment of this Act.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 404(a)(2) and 412(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 Family Self-Sufficiency 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 445(a)(3) of 
                the Family Self-Sufficiency 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), but 
limited to the amount approved for States in the advance planning 
documents of such States submitted before May 1, 1995.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1998 through 2001, the percentage specified in clause (ii) 
of so much of the State expenditures described in paragraph (1)(B) as 
the Secretary finds are for a system meeting the requirements of 
sections 454(16) and 454A.
    ``(ii) The percentage specified in this clause is the greater of--
            ``(I) 80 percent; or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
            (2) Temporary limitation on payments under special federal 
        matching rate.--
                    (A) In general.--The Secretary of Health and Human 
                Services may not pay more than $260,000,000 in the 
                aggregate under section 455(a)(3) of the Social 
                Security Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000.
                    (B) Allocation of limitation among states.--The 
                total amount payable to a State under section 455(a)(3) 
                of such Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000 shall not exceed the limitation determined for 
                the State by the Secretary of Health and Human Services 
                in regulations.
                    (C) Allocation formula.--The regulations referred 
                to in subparagraph (B) shall prescribe a formula for 
                allocating the amount specified in subparagraph (A) 
                among States with plans approved under part D of title 
                IV of the Social Security Act, which shall take into 
                account--
                            (i) the relative size of State caseloads 
                        under such part; and
                            (ii) the level of automation needed to meet 
                        the automated data processing requirements of 
                        such part.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 446. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following new subsection:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary
 as of the end of the 3rd calendar quarter following the end of such 
preceding fiscal year), to cover costs incurred by the Secretary for--
            ``(1) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs under this 
        part (including technical assistance concerning State automated 
        systems required by this part); and
            ``(2) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 416(f) of this Act, is amended by 
adding at the end the following new subsection:
    ``(n) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 2 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for operation of the 
Federal Parent Locator Service under this section, to the extent such 
costs are not recovered through user fees.''.

SEC. 447. 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. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

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

SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10) Procedures under which the State shall review and 
        adjust each support order being enforced under this part upon 
        the request of either parent or the State if there is an 
        assignment. Such procedures shall provide the following:
                    ``(A) The State shall review and, as appropriate, 
                adjust the support order every 3 years, taking into 
                account the best interests of the child involved.
                    ``(B)(i) The State may elect to review and, if 
                appropriate, adjust an order pursuant to subparagraph 
                (A) by--
                            ``(I) reviewing and, if appropriate, 
                        adjusting the order in accordance with the 
                        guidelines established pursuant to section 
                        467(a) if the amount of the child support award 
                        under the order differs from the amount that 
                        would be awarded in accordance with the 
                        guidelines; or
                            ``(II) applying a cost-of-living adjustment 
                        to the order in accordance with a formula 
                        developed by the State and permit either party 
                        to contest the adjustment, within 30 days after 
                        the date of the notice of the adjustment, by 
                        making a request for review and, if 
                        appropriate, adjustment of the order in 
                        accordance with the child support guidelines 
                        established pursuant to section 467(a).
                    ``(ii) Any adjustment under clause (i) shall be 
                made without a requirement for proof or showing of a 
                change in circumstances.
                    ``(C) The State may use automated methods 
                (including automated comparisons with wage or State 
                income tax data) to identify orders eligible for 
                review, conduct the review, identify orders eligible 
                for adjustment, apply the appropriate adjustment to the 
                orders eligible for adjustment under the threshold 
                established by the State.
                    ``(D) The State shall, at the request of either 
                parent subject to such an order or of any State child 
                support enforcement agency, review and, if appropriate, 
                adjust the order in accordance with the guidelines 
                established pursuant to section 467(a) based upon a 
                substantial change in the circumstances of either 
                parent.
                    ``(E) The State shall provide notice to the parents 
                subject to such an order informing them of their right 
                to request the State to review and, if appropriate, 
                adjust the order pursuant to subparagraph (D). The 
                notice may be included in the order.''.

SEC. 453. 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. 454. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

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

SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) In general.--Subsection (c) of section 6402 of the 
        Internal Revenue Code of 1986 (relating to authority to make 
        credits or refunds) is amended by striking the 3rd and 4th 
        sentences and inserting the following new sentences: ``A 
        reduction under this subsection shall be applied 1st to satisfy 
        past-due support, before any other reductions allowed by law 
        (including a credit against future liability for an internal 
        revenue tax) have been made. A reduction under this subsection 
        shall be assigned to the State with respect to past-due support 
        owed to individuals for periods such individuals were receiving 
        assistance under part A or B of title IV of the Social Security 
        Act only after satisfying all other past-due support.''.
            (2) Conforming amendment.--Paragraph (2) of section 6402(d) 
        of such Code is amended by striking ``with respect to past-due 
        support collected pursuant to an assignment under section 
        402(a)(26) of the Social Security Act''.
    (b) Elimination of Disparities in Treatment of Assigned and 
Nonassigned Arrearages.--
            (1) Section 464(a) (42 U.S.C. 664(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Offset 
                Authorized.--'';
                    (B) in paragraph (1)--
                            (i) in the 1st sentence, by striking 
                        ``which has been assigned to such State 
                        pursuant to section 402(a)(26) or section 
                        471(a)(17)''; and
                            (ii) in the 2nd sentence, by striking ``in 
                        accordance with section 457(b)(4) or (d)(3)'' 
                        and inserting ``as provided in paragraph (2)'';
                    (C) by striking paragraph (2) and inserting the 
                following new paragraph:
    ``(2) The State agency shall distribute amounts paid by the 
Secretary of the Treasury pursuant to paragraph (1)--
            ``(A) in accordance with section 457(a), in the case of 
        past-due support assigned to a State; and
            ``(B) to or on behalf of the child to whom the support was 
        owed, in the case of past-due support not so assigned.''; and
                    (D) in paragraph (3)--
                            (i) by striking ``or (2)'' each place such 
                        term appears; and
                            (ii) in subparagraph (B), by striking 
                        ``under paragraph (2)'' and inserting ``on 
                        account of past-due support described in 
                        paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting the following:
    ``(c) Definition.--As''; and
                    (B) by striking paragraphs (2) and (3).

SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

    (a) Amendment to Internal Revenue Code.--Section 6305(a) of the 
Internal Revenue Code of 1986 (relating to collection of certain 
liability) is amended--
            (1) in paragraph (1), by inserting ``except as provided in 
        paragraph (5)'' after ``collected'';
            (2) by striking ``and'' at the end of paragraph (3);
            (3) by striking the period at the end of paragraph (4) and 
        inserting ``, and'';
            (4) 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
            (5) 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. 463. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

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

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

    ``(a) Consent To Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy any other 
        such processes on a 1st-come, 1st-served basis, with any such 
        process being satisfied out of such moneys as remain after the 
        satisfaction of all such processes which have been previously 
        served.
    ``(e) No Requirement To Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government of the 
        District of Columbia, nor any disbursing officer shall be 
        liable with respect to any payment made from moneys due or 
        payable from the United States to any individual pursuant to 
        legal process regular on its face, if the payment is made in 
        accordance with this section and the regulations issued to 
        carry out this section.
            ``(2) No Federal employee whose duties include taking 
        actions necessary to comply with the requirements of subsection 
        (a) with regard to any individual shall be subject under any 
        law to any disciplinary action or civil or criminal liability 
        or penalty for, or on account of, any disclosure of information 
        made by the employee in connection with the carrying out of 
        such actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative or 
        judicial branches of the Federal Government) or the government 
        of the District of Columbia, be vested in the President (or the 
        designee of the President);
            ``(2) the legislative branch of the Federal Government, be 
        vested jointly in the President pro tempore of the Senate and 
        the Speaker of the House of Representatives (or their 
        designees), and
            ``(3) the judicial branch of the Federal Government, be 
        vested in the Chief Justice of the United States (or the 
        designee of the Chief Justice).
    ``(h) Moneys Subject To Process.--
            ``(1) In general.--Subject to paragraph (2), moneys paid or 
        payable to an individual which are considered to be based upon 
        remuneration for employment, for purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable for 
                        personal services of the individual, whether 
                        the compensation is denominated as wages, 
                        salary, commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, sick pay, 
                        and incentive pay);
                            ``(ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                    ``(I) under the insurance system 
                                established by title II;
                                    ``(II) under any other system or 
                                fund established by the United States 
                                which provides for the payment of 
                                pensions, retirement or retired pay, 
                                annuities, dependents' or survivors' 
                                benefits, or similar amounts payable on 
                                account of personal services performed 
                                by the individual or any other 
                                individual;
                                    ``(III) as compensation for death 
                                under any Federal program;
                                    ``(IV) under any Federal program 
                                established to provide `black lung' 
                                benefits; or
                                    ``(V) by the Secretary of Veterans 
                                Affairs as pension, or as compensation 
                                for a service-connected disability or 
                                death (except any compensation paid by 
                                the Secretary to a member of the Armed 
                                Forces who is in receipt of retired or 
                                retainer pay if the member has waived a 
                                portion of the retired pay of the 
                                member in order to receive the 
                                compensation); and
                            ``(iii) workers' compensation benefits paid 
                        under Federal or State law; but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or otherwise, 
                        to defray expenses incurred by the individual 
                        in carrying out duties associated with the 
                        employment of the individual; or
                            ``(ii) as allowances for members of the 
                        uniformed services payable pursuant to chapter 
                        7 of title 37, United States Code, as 
                        prescribed by the Secretaries concerned 
                        (defined by section 101(5) of such title) as 
                        necessary for the efficient performance of 
                        duty.
            ``(2) Certain amounts excluded.--In determining the amount 
        of any moneys due from, or payable by, the United States to any 
        individual, there shall be excluded amounts which--
                    ``(A) are owed by the individual to the United 
                States;
                    ``(B) are required by law to be, and are, deducted 
                from the remuneration or other payment involved, 
                including Federal employment taxes, and fines and 
                forfeitures ordered by court-martial;
                    ``(C) are properly withheld for Federal, State, or 
                local income tax purposes, if the withholding of the 
                amounts is authorized or required by law and if amounts 
                withheld are not greater than would be the case if the 
                individual claimed all dependents to which he was 
                entitled (the withholding of additional amounts 
                pursuant to section 3402(i) of the Internal Revenue 
                Code of 1986 may be permitted only when the individual 
                presents evidence of a tax obligation which supports 
                the additional withholding);
                    ``(D) are deducted as health insurance premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--As used in this section:
            ``(1) United states.--The term `United States' includes any 
        department, agency, or instrumentality of the legislative, 
        judicial, or executive branch of the Federal Government, the 
        United States Postal Service, the Postal Rate Commission, any 
        Federal corporation created by an Act of Congress that is 
        wholly owned by the Federal Government, and the governments of 
        the territories and possessions of the United States.
            ``(2) Child support.--The term `child support', when used 
        in reference to the legal obligations of an individual to 
        provide such support, means periodic payments of funds for the 
        support and maintenance of a child or children with respect to 
        which the individual has such an obligation, and (subject to 
        and in
         accordance with State law) includes payments to provide for 
health care, education, recreation, clothing, or to meet other specific 
needs of such a child or children, and includes attorney's fees, 
interest, and court costs, when and to the extent that the same are 
expressly made recoverable as such pursuant to a decree, order, or 
judgment issued in accordance with applicable State law by a court of 
competent jurisdiction.
            ``(3) Alimony.--The term `alimony', when used in reference 
        to the legal obligations of an individual to provide the same, 
        means periodic payments of funds for the support and 
        maintenance of the spouse (or former spouse) of the individual, 
        and (subject to and in accordance with State law) includes 
        separate maintenance, alimony pendente lite, maintenance, and 
        spousal support, and includes attorney's fees, interest, and 
        court costs when and to the extent that the same are expressly 
        made recoverable as such pursuant to a decree, order, or 
        judgment issued in accordance with applicable State law by a 
        court of competent jurisdiction. Such term does not include any 
        payment or transfer of property or its value by an individual 
        to the spouse or a former spouse of the individual in 
        compliance with any community property settlement, equitable 
        distribution of property, or other division of property between 
        spouses or former spouses.
            ``(4) Private person.--The term `private person' means a 
        person who does not have sovereign or other special immunity or 
        privilege which causes the person not to be subject to legal 
        process.
            ``(5) Legal process.--The term `legal process' means any 
        writ, order, summons, or other similar process in the nature of 
        garnishment--
                    ``(A) which is issued by--
                            ``(i) a court of competent jurisdiction in 
                        any State, territory, or possession of the 
                        United States;
                            ``(ii) a court of competent jurisdiction in 
                        any foreign country with which the United 
                        States has entered into an agreement which 
                        requires the United States to honor the 
                        process; or
                            ``(iii) an authorized official pursuant to 
                        an order of such a court of competent 
                        jurisdiction or pursuant to State or local law; 
                        and
                    ``(B) which is directed to, and the purpose of 
                which is to compel, a governmental entity which holds 
                moneys which are otherwise payable to an individual to 
                make a payment from the moneys to another party in 
                order to satisfy a legal obligation of the individual 
                to provide child support or make alimony payments.''.
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
            (1) Definition of court.--Section 1408(a)(1) of title 10, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding after subparagraph (C) the following 
                new subparagraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                program under a State plan approved under part D of 
                title IV of the Social Security Act), and, for purposes 
                of this subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) of such 
        title is amended by inserting ``or a court order for the 
        payment of child support not included in or accompanied by such 
        a decree or settlement,'' before ``which--''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for Benefit 
                of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the 1st sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following new 
        subsection:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 464. 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 463(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: ``In the case 
        of a spouse or former spouse who assigns to a State the rights 
        of the spouse or former spouse to receive support, the 
        Secretary concerned may make the child support payments 
        referred to in the preceding sentence to that State in amounts 
        consistent with that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the 1st pay period that begins after 
        such 30-day period.

SEC. 465. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 421 of this Act, 
is amended by adding at the end the following new subsection:
    ``(g) In order to satisfy section 454(20)(A), each State must have 
in effect--
            ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
            ``(B) the Uniform Fraudulent Transfer Act of 1984; or
            ``(C) another law, specifying indicia of fraud which create 
        a prima facie case that a debtor transferred income or property 
        to avoid payment to a child support creditor, which the 
        Secretary finds affords comparable rights to child support 
        creditors; and
            ``(2) procedures under which, in any case in which the 
        State knows of a transfer by a child support debtor with 
        respect to which such a prima facie case is established, the 
        State must--
                    ``(A) seek to void such transfer; or
                    ``(B) obtain a settlement in the best interests of 
                the child support creditor.''.

SEC. 466. WORK REQUIREMENT FOR PERSONS OWING CHILD SUPPORT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 401(a), 415, 417(a), and 423 of this Act, is 
amended by adding at the end the following new paragraph:
            ``(16) Procedures requiring the State, in any case in which 
        an individual owes support with respect to a child receiving 
        services under this part, to seek a court order or 
        administrative order that requires the individual to--
                    ``(A) pay such support in accordance with a plan 
                approved by the court; or
                    ``(B) if the individual is not working and is not 
                incapacitated, participate in work activities 
                (including, at State option, work activities as defined 
                in section 482) as the court deems appropriate.''.

SEC. 467. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 416 and 446(b) 
of this Act, is amended by adding at the end the following new 
subsection:
    ``(o) As used in this part, the term `support order' means a 
judgment, decree, or order, whether temporary, final, or subject to 
modification, issued by a court or an administrative agency of 
competent jurisdiction, for the support and maintenance of a child, 
including a child who has attained the age of majority under the law of 
the issuing State, or a child and the parent with whom the child is 
living, which provides for monetary support, health care, arrearages, 
or reimbursement, and which may include related costs and fees, 
interest and penalties, income withholding, attorneys' fees, and other 
relief.''.

SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

SEC. 469. LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as 
follows:
            ``(4) Procedures under which--
                    ``(A) liens arise by operation of law against real 
                and personal property for amounts of overdue support 
                owed by an absent parent who resides or owns property 
                in the State; and
                    ``(B) the State accords full faith and credit to 
                liens described in subparagraph (A) arising in another 
                State, without registration of the underlying order.''.
SEC. 470. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 415, 
417(a), and 423 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(15) 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. 471. 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 446, 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(30) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000 or in an amount exceeding 24 months' worth of child support, 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 471(b) of the Family Self-Sufficiency 
Act of 1995.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 404(a), 412(b), 413(a), 
        433, and 444(a), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (28);
                    (B) by striking the period at the end of paragraph 
                (29) and inserting ``; and''; and
                    (C) by adding after paragraph (29) the following 
                new paragraph:
            ``(30) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(k) 
        (concerning denial of passports) determinations that 
        individuals owe arrearages of child support in an amount 
        exceeding $5,000 or in an amount exceeding 24 months' worth of 
        child support, 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, upon certification 
        by the Secretary of Health and Human Services, in accordance 
        with section 452(k) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of $5,000 
        or in an amount exceeding 24 months' worth of child support, 
        shall 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.

                      Subtitle H--Medical Support

SEC. 475. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

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

SEC. 476. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 415, 
417(a), 423, and 469 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(16) Procedures under which all child support orders 
        enforced under this part shall include a provision for the 
        health care coverage of the child, and in the case in which an 
        absent parent provides such coverage and changes employment, 
        and the new employer provides health care coverage, the State 
        agency shall transfer notice of the provision to the employer, 
        which notice shall operate to enroll the child in the absent 
        parent's health plan, unless the absent parent contests the 
        notice.''.

Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

SEC. 481. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

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

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

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

                    Subtitle J--Effect of Enactment

SEC. 491. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) the provisions of this title requiring the enactment or 
        amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this title shall become 
        effective upon the date of the enactment of this Act.
    (b) Grace Period for State Law Changes.--The provisions of this 
title shall become effective with respect to a State on the later of--
            (1) the date specified in this title, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar quarter 
beginning after the close of the 1st regular session of the State 
legislature that begins after the date of the enactment of this Act. 
For purposes of the previous sentence, in the case of a State that has 
a 2-year legislative session, each year of such session shall be deemed 
to be a separate regular session of the State legislature.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
title if the State is unable to so comply without amending the State 
constitution until the earlier of--
            (1) 1 year after the effective date of the necessary State 
        constitutional amendment; or
            (2) 5 years after the date of the enactment of this title.
    Amend the title so as to read: ``An Act to enhance support and work 
opportunities for families with children, reduce welfare dependence, 
and control welfare spending.''.
HR 4 RS----2
HR 4 RS----3
HR 4 RS----4
HR 4 RS----5
HR 4 RS----6
HR 4 RS----7
HR 4 RS----8
HR 4 RS----9
HR 4 RS----10
HR 4 RS----11
HR 4 RS----12
HR 4 RS----13
HR 4 RS----14
HR 4 RS----15
HR 4 RS----16
HR 4 RS----17
HR 4 RS----18
HR 4 RS----19
HR 4 RS----20
HR 4 RS----21
HR 4 RS----22
HR 4 RS----23
HR 4 RS----24
HR 4 RS----25
HR 4 RS----26
HR 4 RS----27
HR 4 RS----28
HR 4 RS----29
HR 4 RS----30
HR 4 RS----31
HR 4 RS----32
HR 4 RS----33
HR 4 RS----34
HR 4 RS----35
HR 4 RS----36
HR 4 RS----37
HR 4 RS----38
HR 4 RS----39
HR 4 RS----40
HR 4 RS----41
HR 4 RS----42
HR 4 RS----43
HR 4 RS----44