[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1117 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1117

    To repeal AFDC and establish the Work First Plan, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 3 (legislative day, July 10), 1995

 Mr. Daschle (for himself, Mr. Breaux, Ms. Mikulski, Mr. Rockefeller, 
 Mr. Reid, Mr. Kerrey, Mr. Ford, Mr. Dorgan, Mr. Dodd, Mr. Kerry, Mr. 
  Lieberman, Mr. Conrad, Mr. Bingaman, Mr. Bryan, Mr. Inouye, and Mr. 
Robb) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To repeal AFDC and establish the Work First Plan, and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Work First Act of 1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Amendment of the Social Security Act.
                TITLE I--TEMPORARY EMPLOYMENT ASSISTANCE

Sec. 101. State plan.
              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

Sec. 201. Work first employment block grant.
Sec. 202. Consolidation and streamlining of services.
Sec. 203. Job creation.
                       TITLE III--SUPPORTING WORK

Sec. 301. Extension of transitional medicaid benefits.
Sec. 302. Consolidated child care development block grant.
       TITLE IV--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

Sec. 401. Supervised living arrangements for minors.
Sec. 402. Reinforcing families.
Sec. 403. Required completion of high school or other training for 
                            teenage parents.
Sec. 404. Drug treatment and counseling as part of the Work First 
                            program.
Sec. 405. Targeting youth at risk of teenage pregnancy.
Sec. 406. National Clearinghouse on Teenage Pregnancy.
Sec. 407. Effective dates.
            TITLE V--INTERSTATE CHILD SUPPORT RESPONSIBILITY

Sec. 500. Short title.
    Subtitle A--Improvements to the Child Support Collection System

  Part I--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

Sec. 501. State obligation to provide paternity establishment and child 
                            support enforcement services.
Sec. 502. Distribution of payments.
Sec. 503. Rights to notification and hearings.
Sec. 504. Privacy safeguards.
              Part II--Program Administration and Funding

Sec. 511. Federal matching payments.
Sec. 512. Performance-based incentives and penalties.
Sec. 513. Federal and State reviews and audits.
Sec. 514. Required reporting procedures.
Sec. 515. Automated data processing requirements.
Sec. 516. Director of CSE program; staffing study.
Sec. 517. Funding for assistance to State programs.
Sec. 518. Data collection and reports by the Secretary.
                   Part III--Locate and Case Tracking

Sec. 521. Central State and case registry.
Sec. 522. Centralized collection and disbursement of support payments.
Sec. 523. Amendments concerning income withholding.
Sec. 524. Locator information from interstate networks.
Sec. 525. Expanded Federal parent locator service.
Sec. 526. State directory of new hires.
Sec. 527. Use of social security numbers.
           Part IV--Streamlining and Uniformity of Procedures

Sec. 531. Adoption of uniform State laws.
Sec. 532. Improvements to full faith and credit for child support 
                            orders.
Sec. 533. State laws providing expedited procedures.
                    Part V--Paternity Establishment

Sec. 541. State laws concerning paternity establishment.
Sec. 542. Outreach for voluntary paternity establishment.
Sec. 543. Cooperation requirement and good cause exception.
       Part VI--Establishment and Modification of Support Orders

Sec. 551. National Child Support Guidelines Commission.
Sec. 552. Simplified process for review and adjustment of child support 
                            orders.
                Part VII--Enforcement of Support Orders

Sec. 561. Federal income tax refund offset.
Sec. 562. Internal Revenue Service collection of arrearages.
Sec. 563. Authority to collect support from Federal employees.
Sec. 564. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 565. Motor vehicle liens.
Sec. 566. Voiding of fraudulent transfers.
Sec. 567. State law authorizing suspension of licenses.
Sec. 568. Reporting arrearages to credit bureaus.
Sec. 569. Extended statute of limitation for collection of arrearages.
Sec. 570. Charges for arrearages.
Sec. 571. Denial of passports for nonpayment of child support.
Sec. 572. International child support enforcement.
                       Part VIII--Medical Support

Sec. 581. Technical correction to ERISA definition of medical child 
                            support order.
           Part IX--Visitation and Support Assurance Projects

Sec. 591. Grants to States for access and visitation programs.
Sec. 592. Child support assurance demonstration projects.
                    Subtitle B--Effect of Enactment

Sec. 595. Effective dates.
Sec. 596. Severability.
             TITLE VI--SUPPLEMENTAL SECURITY INCOME REFORM

                  Subtitle A--Eligibility Restrictions

Sec. 601. Drug addicts and alcoholics under the supplemental security 
                            income program.
               Subtitle B--Benefits for Disabled Children

Sec. 611. Definition and eligibility rules.
Sec. 612. Continuing disability reviews.
Sec. 613. Additional accountability requirements.
         Subtitle C--Study of Disability Determination Process

Sec. 621. Annual report on the supplemental security income program.
Sec. 622. Improvements to disability evaluation.
Sec. 623. Study of disability determination process.
Sec. 624. Study by general accounting office.
      Subtitle D--National Commission on the Future of Disability

Sec. 631. Establishment.
Sec. 632. Duties of the commission.
Sec. 633. Membership.
Sec. 634. Staff and support services.
Sec. 635. Powers of commission.
Sec. 636. Reports.
Sec. 637. Termination.
               TITLE VII--PROVISIONS RELATING TO SPONSORS

Sec. 701. Uniform alien eligibility criteria for public assistance 
                            programs.
Sec. 702. Extension of deeming of income and resources under TEA, SSI, 
                            and food stamp programs.
Sec. 703. Requirements for sponsor's affidavits of support.
Sec. 704. Extending requirement for affidavits of support to family-
                            related and diversity immigrants.
          TITLE VIII--FOOD STAMP PROGRAM INTEGRITY AND REFORM.

Sec. 801. References to the Food Stamp Act of 1977.
Sec. 802. Certification period.
Sec. 803. Expanded definition of coupon.
Sec. 804. Treatment of minors.
Sec. 805. Adjustment to thrifty food plan.
Sec. 806. Earnings of certain high school students counted as income.
Sec. 807. Energy assistance counted as income.
Sec. 808. Exclusion of certain JTPA income.
Sec. 809. 2-year freeze of standard deduction.
Sec. 810. Elimination of household entitlement to switch between actual 
                            expenses and allowances during 
                            certification period.
Sec. 811. Exclusion of life insurance proceeds.
Sec. 812. Vendor payments for transitional housing counted as income.
Sec. 813. Doubled penalties for violating food stamp program 
                            requirements.
Sec. 814. Strengthened work requirements.
Sec. 815. Work requirement for able-bodied recipients.
Sec. 816. Disqualification for participating in 2 or more States.
Sec. 817. Disqualification relating to child support arrears.
Sec. 818. Facilitate implementation of a national electronic benefit 
                            transfer delivery system.
Sec. 819. Limiting adjustment of minimum benefit.
Sec. 820. Benefits on recertification.
Sec. 821. State authorization to set requirements appropriate for 
                            households.
Sec. 822. Coordination of employment and training programs.
Sec. 823. Simplification of application procedures and standardization 
                            of benefits.
Sec. 824. Authority to establish authorization periods.
Sec. 825. Specific period for prohibiting participation of stores based 
                            on lack of business integrity.
Sec. 826. Information for verifying eligibility for authorization.
Sec. 827. Waiting period for stores that initially fail to meet 
                            authorization criteria.
Sec. 828. Mandatory claims collection methods.
Sec. 829. State authorization to assist law enforcement officers in 
                            locating fugitive felons.
Sec. 830. Expedited service.
Sec. 831. Bases for suspensions and disqualifications.
Sec. 832. Authority to suspend stores violating program requirements 
                            pending administrative and judicial review.
Sec. 833. Disqualification of retailers who are disqualified under the 
                            WIC program.
Sec. 834. Permanent debarment of retailers who intentionally submit 
                            falsified applications.
Sec. 835. Expanded civil and criminal forfeiture for violations.
Sec. 836. Extending claims retention rates.
Sec. 837. Nutrition assistance for Puerto Rico.
Sec. 838. Expanded authority for sharing information provided by 
                            retailers.
Sec. 839. Child and adult care food program.
Sec. 840. Resumption of discretionary funding for nutrition education 
                            and training program.
           TITLE IX--EFFECTIVE DATE; MISCELLANEOUS PROVISIONS

Sec. 901. Effective date.
Sec. 902. Treatment of existing waivers.
Sec. 903. Expedited waiver process.
Sec. 904. County welfare demonstration project.
Sec. 905. Work requirements for State of Hawaii.
Sec. 906. Requirement that data relating to the incidence of poverty in 
                            the United States be published at least 
                            every 2 years.
Sec. 907. Study by the Census Bureau.
Sec. 908. Secretarial submission of legislative proposal for technical 
                            and conforming amendments.
SEC. 3. AMENDMENT OF THE SOCIAL SECURITY ACT.

    Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Social Security Act.
                TITLE I--TEMPORARY EMPLOYMENT ASSISTANCE

SEC. 101. STATE PLAN.

    (a) In General.--Title IV (42 U.S.C. 601 et seq.) is amended by 
striking part A and inserting the following:

               ``PART A--TEMPORARY EMPLOYMENT ASSISTANCE

``SEC. 400. APPROPRIATION.

    ``For the purpose of providing assistance to families with needy 
children and assisting parents of children in such families to obtain 
and retain private sector work to the extent possible, and public 
sector or volunteer work if necessary, through the Work First 
Employment Block Grant program (hereafter in this title referred to as 
the `Work First program'), there is hereby authorized to be 
appropriated, and is hereby appropriated, for each fiscal year a sum 
sufficient to carry out the purposes of this part. The sums made 
available under this section shall be used for making payments to 
States which have approved State plans for temporary employment 
assistance.

      ``Subpart 1--State Plans for Temporary Employment Assistance

``SEC. 401. ELEMENTS OF STATE PLANS.

    ``A State plan for temporary employment assistance shall provide a 
description of the State program which carries out the purpose 
described in section 400 and shall meet the requirements of the 
following sections of this subpart.

``SEC. 402. FAMILY ELIGIBILITY FOR TEMPORARY EMPLOYMENT ASSISTANCE.

    ``(a) In General.--The State plan shall provide that any family--
            ``(1) with 1 or more children (or any expectant family, at 
        the option of the State), defined as needy by the State; and
            ``(2) which fulfills the conditions set forth in subsection 
        (b),
shall be eligible for cash assistance under the plan, except as 
otherwise provided under this part.
    ``(b) Parent Empowerment Contract.--The State plan shall provide 
that not later than 10 days after the approval of the application for 
temporary employment assistance, a parent qualifying for assistance 
shall execute a parent empowerment contract as described in section 
403. If a child otherwise eligible for assistance under this part is 
residing with a relative other than a parent, the State plan may 
require the relative to execute such an empowerment contract as a 
condition of the family receiving such assistance.
    ``(c) Limitations on Eligibility.--
            ``(1) Length of time.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B), (C), (D), and (E), the State plan 
                shall provide that the family of an individual who, 
                after attaining age 18 years (or age 19 years, at the 
                option of the State), has received assistance under the 
                plan for 60 months, shall no longer be eligible for 
                cash assistance under the plan.
                    ``(B) Hardship exception.--With respect to any 
                family, the State plan shall not include in the 
                determination of the 60-month period under subparagraph 
                (A) any month in which--
                            ``(i) at the option of the State, the 
                        family includes an individual working 20 hours 
                        per week (or more, at the option of the State);
                            ``(ii) the family resides in an area with 
                        an unemployment rate exceeding 7.5 percent; or
                            ``(iii) the family is experiencing other 
                        special hardship circumstances which make it 
                        appropriate for the State to provide an 
                        exemption for such month, except that the total 
                        number of exemptions under this clause for any 
                        month shall not exceed 15 percent of the number 
                        of families to which the State is providing 
                        assistance under the plan.
                    ``(C) Exception for teen parents.--With respect to 
                any family, the State plan shall not include in the 
                determination of the 60-month period under subparagraph 
                (A) any month in which the parent--
                            ``(i) is under age 18 (or age 19, at the 
                        option of the State); and
                            ``(ii) is making satisfactory progress 
                        while attending high school or an alternative 
                        technical preparation school.
                    ``(D) Exception for individuals exempt from work 
                requirements.--With respect to any family, the State 
                plan shall not include in the determination of the 60-
                month period under subparagraph (A) any month in which 
                1 or each of the parents--
                            ``(i) is seriously ill, incapacitated, or 
                        of advanced age;
                            ``(ii)(I) except for a child described in 
                        subclause (II), is responsible for a child 
                        under age 1 year (or age 6 months, at the 
                        option of the State), or
                            ``(II) in the case of a 2nd or subsequent 
                        child born during such period, is responsible 
                        for a child under age 3 months;
                            ``(iii) is pregnant in the 3rd trimester; 
                        or
                            ``(iv) is caring for a family member who is 
                        ill or incapacitated.
                    ``(E) Exception for child-only cases.--With respect 
                to any child who has not attained age 18 (or age 19, at 
                the option of the State) and who is eligible for 
                assistance under this part, but not as a member of a 
                family otherwise eligible for assistance under this 
                part (determined without regard to this paragraph), the 
                State plan shall not include in the determination of 
                the 60-month period under subparagraph (A) any month in 
                which such child has not attained such age.
                    ``(F) Other program eligibility.--The State plan 
                shall provide that if a family is no longer eligible 
                for cash assistance under the plan solely due to the 
                imposition of the 60-month period under subparagraph 
                (A)--
                            ``(i) for purposes of determining 
                        eligibility for any other Federal or federally 
                        assisted program based on need, such family 
                        shall continue to be considered eligible for 
                        such cash assistance;
                            ``(ii) for purposes of determining the 
                        amount of assistance under any other Federal or 
                        federally assisted program based on need, such 
                        family shall continue to be considered 
                        receiving such cash assistance; and
                            ``(iii) the State shall, after having 
                        assessed the needs of the child or children of 
                        the family, provide for such needs with a 
                        voucher for such family--
                                    ``(I) determined on the same basis 
                                as the State would provide assistance 
                                under the State plan to such a family 
                                with 1 less individual,
                                    ``(II) designed appropriately to 
                                pay third parties for shelter, goods, 
                                and services received by the child or 
                                children, and
                                    ``(III) payable directly to such 
                                third parties.
            ``(2) Treatment of interstate migrants.--The State plan may 
        apply to a category of families the rules for such category 
        under a plan of another State approved under this part, if a 
        family in such category has moved to the State from the other 
        State and has resided in the State for less than 12 months.
            ``(3) Individuals on old-age assistance or ssi ineligible 
        for temporary employment assistance.--The State plan shall 
        provide that no assistance shall be furnished any individual 
        under the plan with respect to any period with respect to which 
        such individual is receiving old-age assistance under the State 
        plan approved under section 102 of title I or supplemental 
        security income under title XVI, and such individual's 
        assistance or income shall be disregarded in determining the 
        eligibility of the family of such individual for temporary 
        employment assistance.
            ``(4) Children for whom federal, state, or local foster 
        care maintenance or adoption assistance payments are made.--A 
        child with respect to whom foster care maintenance payments or 
        adoption assistance payments are made under part E or under 
        State or local law shall not, for the period for which such 
        payments are made, be regarded as a needy child under this 
        part, and such child's income and resources shall be 
        disregarded in determining the eligibility of the family of 
        such child for temporary employment assistance.
            ``(5) 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.--The State plan shall 
        provide that no assistance will be furnished any individual 
        under the plan 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 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.
            ``(6) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                    ``(A) In general.--The State plan shall provide 
                that no assistance will be furnished any individual 
                under the plan for any period if during such period the 
                State agency has knowledge that such individual is--
                            ``(i) fleeing to avoid prosecution, or 
                        custody or confinement after conviction, under 
                        the laws of the place from which the individual 
                        flees, for a crime, or an attempt to commit a 
                        crime, which is a felony under the laws of the 
                        place from which the individual flees, or 
                        which, in the case of the State of New Jersey, 
                        is a high misdemeanor under the laws of such 
                        State; or
                            ``(ii) violating a condition of probation 
                        or parole imposed under Federal or State law.
                    ``(B) Exchange of information with law enforcement 
                agencies.--Notwithstanding any other provision of law, 
                the State plan shall provide that the 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 
                the plan, if the officer furnishes the agency with the 
                name of the recipient and notifies the agency that--
                            ``(i) such recipient--
                                    ``(I) is described in clause (i) or 
                                (ii) of subparagraph (A); or
                                    ``(II) has information that is 
                                necessary for the officer to conduct 
                                the officer's official duties; and
                            ``(ii) the location or apprehension of the 
                        recipient is within such officer's official 
                        duties.
    ``(d) Determination of Eligibility.--
            ``(1) Determination of need.--The State plan shall provide 
        that the State agency take into consideration any income and 
        resources of any individual the State determines should be 
        considered in determining the need of the child or relative 
        claiming temporary employment assistance.
            ``(2) Resource and income determination.--In determining 
        the total resources and income of the family of any needy 
        child, the State plan shall provide the following:
                    ``(A) Resources.--The State's resource limit, 
                including a description of the policy determined by the 
                State regarding any exclusion allowed for vehicles 
                owned by family members, resources set aside for future 
                needs of a child, individual development accounts, or 
                other policies established by the State to encourage 
                savings.
                    ``(B) Family income.--The extent to which earned or 
                unearned income is disregarded in determining 
                eligibility for, and amount of, assistance.
                    ``(C) Child support.--The State's policy, if any, 
                for determining the extent to which child support 
                received in excess of $50 per month on behalf of a 
                member of the family is disregarded in determining 
                eligibility for, and the amount of, assistance.
                    ``(D) Child's earnings.--The treatment of earnings 
                of a child living in the home.
                    ``(E) Earned income tax credit.--The State agency 
                shall disregard any refund of Federal income taxes made 
                to a family receiving temporary employment assistance 
                by reason of section 32 of the Internal Revenue Code of 
                1986 (relating to earned income tax credit) and any 
                payment made to such a family by an employer under 
                section 3507 of such Code (relating to advance payment 
                of earned income credit).
            ``(3) Verification System.--The State plan shall provide 
        that information is requested and exchanged for purposes of 
        income and eligibility verification in accordance with a State 
        system which meets the requirements of section 1137.

``SEC. 403. PARENT EMPOWERMENT CONTRACT.

    ``(a) Assessment.--The State plan shall provide that the State 
agency, through a case manager, shall make an initial assessment of the 
skills, prior work experience, and employability of each parent who is 
applying for temporary employment assistance under the plan.
    ``(b) Parent Empowerment Contracts.--On the basis of the assessment 
made under subsection (a) with respect to each parent, the case 
manager, in consultation with the parent or parents of a family 
(hereafter in this title referred to as the `client'), shall develop a 
parent empowerment contract for the client, which meets the following 
requirements:
            ``(1) Sets forth the obligations of the client, including 1 
        or more of the following:
                    ``(A) Search for a job.
                    ``(B) Engage in work-related activities to help the 
                client become and remain employed in the private 
                sector.
                    ``(C) Attend school, if necessary, and maintain 
                certain grades and attendance.
                    ``(D) Keep school age children of the client in 
                school.
                    ``(E) Immunize children of the client.
                    ``(F) Attend parenting and money management 
                classes.
                    ``(G) Any other appropriate activity, at the option 
                of the State.
            ``(2) To the greatest extent possible, is designed to move 
        the client as quickly as possible into whatever type and amount 
        of work as the client is capable of handling, and to increase 
        the responsibility and amount of work over time until the 
        client is able to work full-time.
            ``(3) Provides for participation by the client in job 
        search activities for the first 2 months after the application 
        for temporary employment assistance under the State plan, 
        unless the client is already working at least 20 hours per week 
        or is exempt from the work requirements under the State plan.
            ``(4) If necessary to provide the client with support and 
        skills necessary to obtain and keep employment in the private 
        sector, provides for job counseling or other services, and, if 
        additionally necessary, education or training through the Work 
        First program under part F.
            ``(5) Provides that the client shall accept any bona fide 
        offer of unsubsidized full-time employment, unless the client 
        has good cause for not doing so.
            ``(6) At the option of the State, provides that the client 
        undergo appropriate substance abuse treatment.
            ``(7) Provides that the client--
                    ``(A) assign to the State any rights to support 
                from any other person the client may have in such 
                client's own behalf or in behalf of any other family 
                member for whom the client is applying for or receiving 
                assistance; and
                    ``(B) cooperate with the State--
                            ``(i) in establishing the paternity of a 
                        child born out of wedlock with respect to whom 
                        assistance is claimed, and
                            ``(ii) in obtaining support payments for 
                        such client and for a child with respect to 
                        whom such assistance is claimed, or in 
                        obtaining any other payments or property due 
                        such client or such child,
                         unless (in either case) such client is found 
to have good cause for refusing to cooperate as determined by the State 
agency in accordance with standards prescribed by the Secretary, which 
standards shall take into consideration the best interests of the child 
on whose behalf assistance is claimed.
    ``(c) Penalties for Noncompliance With Parent Empowerment 
Contract.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        following penalties shall apply:
                    ``(A) Progressive reductions in assistance for 1st 
                and 2nd acts of noncompliance.--The State plan shall 
                provide that the amount of temporary employment 
                assistance otherwise payable under the plan to a family 
                that includes a client who, with respect to a parent 
                empowerment contract signed by the client, commits an 
                act of noncompliance without good cause, shall be 
                reduced by--
                            ``(i) 33 percent for the 1st such act of 
                        noncompliance; or
                            ``(ii) 66 percent for the 2nd such act of 
                        noncompliance.
                    ``(B) Denial of assistance for 3rd and subsequent 
                acts of noncompliance.--The State plan shall provide 
                that in the case of the 3rd or subsequent such act of 
                noncompliance, the family of which the client is a 
                member shall not thereafter be eligible for temporary 
                employment assistance under the State plan.
                    ``(C) Length of penalties.--The penalty for an act 
                of noncompliance shall not exceed the greater of--
                            ``(i) in the case of--
                                    ``(I) the 1st act of noncompliance, 
                                1 month,
                                    ``(II) the 2nd act of 
                                noncompliance, 3 months, or
                                    ``(III) the 3rd or subsequent act 
                                of noncompliance, 6 months; or
                            ``(ii) the period ending with the cessation 
                        of such act of noncompliance.
                    ``(D) Denial of temporary employment assistance to 
                adults refusing to accept a bona fide offer of 
                employment.--The State plan shall provide that if an 
                unemployed individual who has attained 18 years of age 
                refuses to accept a bona fide offer of employment 
                without good cause, such act of noncompliance shall be 
                considered a 3rd or subsequent act of noncompliance.
            ``(2) State flexibility.--The State plan may provide for 
        different penalties than those specified in paragraph (1).

``SEC. 404. PAYMENT OF ASSISTANCE.

    ``(a) Standards of Assistance.--The State plan shall specify 
standards of assistance, including--
            ``(1) the composition of the unit for which assistance will 
        be provided;
            ``(2) a standard, expressed in money amounts, to be used in 
        determining the need of applicants and recipients;
            ``(3) a standard, expressed in money amounts, to be used in 
        determining the amount of the assistance payment; and
            ``(4) the methodology to be used in determining the payment 
        amount received by assistance units.
    ``(b) Level of Assistance.--The State plan shall provide that--
            ``(1) the determination of need and the amount of 
        assistance for all applicants and recipients shall be made on 
        an objective and equitable basis;
            ``(2) families of similar composition with similar needs 
        and circumstances shall be treated similarly; and
            ``(3) the State shall not reduce or deny assistance for a 
        needy child solely because such child was conceived or born 
        during a period in which the parent was receiving temporary 
        employment assistance.
    ``(c) Correction of Payments.--The State plan shall provide that 
the State agency will promptly take all necessary steps to correct any 
overpayment or underpayment of assistance under such plan, including 
the request for Federal tax refund intercepts as provided under section 
417.

``SEC. 405. PROVISION OF PROGRAM AND EMPLOYMENT INFORMATION AND CHILD 
              CARE.

    ``(a) Information.--The State plan shall provide for the 
dissemination of information to all applicants for and recipients of 
temporary employment assistance under the plan about all available 
services under the State plan for which such applicants and recipients 
are eligible.
    ``(b) Child Care During Job Search, Work, or Participation in Work 
First.--The State plan shall provide that the State agency shall 
guarantee child care assistance for each family that is receiving 
temporary employment assistance and that has a needy child requiring 
such care, to the extent that such care is determined by the State 
agency to be necessary for an individual in the family to participate 
in job search activities, to work, or to participate in the Work First 
program.

``SEC. 406. OTHER PROGRAMS.

    ``(a) Work First.--The State plan shall provide that the State has 
in effect and operation a Work First program that meets the 
requirements of part F.
    ``(b) State Child Support Agency.--The State plan shall--
            ``(1) provide that the State has in effect a plan approved 
        under part D and operates a child support program in 
        substantial compliance with such plan;
            ``(2) provide that the State agency administering the plan 
        approved under this part shall be responsible for assuring 
        that--
                    ``(A) the benefits and services provided under 
                plans approved under this part and part D are furnished 
                in an integrated manner, including coordination of 
                intake procedures with the agency administering the 
                plan approved under part D;
                    ``(B) all applicants for, and recipients of, 
                temporary employment assistance are encouraged, 
                assisted, and required (as provided under section 
                403(b)(7)(B)) to cooperate in the establishment and 
                enforcement of paternity and child support obligations 
                and are notified about the services available under the 
                State plan approved under part D; and
                    ``(C) procedures require referral of paternity and 
                child support enforcement cases to the agency 
                administering the plan approved under part D not later 
                than 10 days after the application for temporary 
                employment assistance; and
            ``(3) provide for prompt notice (including the transmittal 
        of all relevant information) to the State child support 
        collection agency established pursuant to part D of the 
        furnishing of temporary employment assistance with respect to a 
        child who has been deserted or abandoned by a parent (including 
        a child born out-of-wedlock without regard to whether the 
        paternity of such child has been established).
    ``(c) Child Welfare Services and Foster Care and Adoption 
Assistance.--The State plan shall provide that the State has in 
effect--
            ``(1) a State plan for child welfare services approved 
        under part B; and
            ``(2) a State plan for foster care and adoption assistance 
        approved under part E,
and operates such plans in substantial compliance with the requirements 
of such parts.
    ``(d) Report of Child Abuse, etc.--The State plan shall provide 
that the State agency will--
            ``(1) report to an appropriate agency or official, known or 
        suspected instances of physical or mental injury, sexual abuse 
        or exploitation, or negligent treatment or maltreatment of a 
        child receiving assistance under the State plan under 
        circumstances which indicate that the child's health or welfare 
        is threatened thereby; and
            ``(2) provide such information with respect to a situation 
        described in paragraph (1) as the State agency may have.
    ``(e) Out-of-Wedlock and Teen Pregnancy Programs.--The State plan 
shall provide for the development of a program--
            ``(1) to reduce the incidence of out-of-wedlock 
        pregnancies, which may include providing unmarried mothers and 
        unmarried fathers with services which will help them--
                    ``(A) avoid subsequent pregnancies, and
                    ``(B) provide adequate care to their children; and
            ``(2) to reduce teenage pregnancy, which may include, at 
        the option of the State, providing education and counseling to 
        male and female teenagers.
    ``(f) Availability of Assistance in Rural Areas of State.--The 
State plan shall consider and address the needs of rural areas in the 
State to ensure that families in such areas receive assistance to 
become self-sufficient.
    ``(g) Family Preservation.--
            ``(1) In general.--The State plan shall describe the 
        efforts by the State to promote family preservation and 
        stability, including efforts--
                    ``(A) to encourage fathers to stay home and be a 
                part of the family;
                    ``(B) to keep families together to the extent 
                possible; and
                    ``(C) except to the extent provided in paragraph 
                (2), to treat 2-parent families and 1-parent families 
                equally with respect to eligibility for assistance.
            ``(2) Maintenance of treatment.--The State may impose 
        eligibility limitations relating specifically to 2-parent 
        families to the extent such limitations are no more restrictive 
        than such limitations in effect in the State plan in fiscal 
        year 1995.

SEC. 407. ADMINISTRATIVE REQUIREMENTS FOR STATE PLAN.

    ``(a) Statewide Plan.--The State plan shall be in effect in all 
political subdivisions of the State, and, if administered by the 
subdivisions, be mandatory upon such subdivisions. If such plan is not 
administered uniformly throughout the State, the plan shall describe 
the administrative variations.
    ``(b) Single Administrating Agency.--The State plan shall provide 
for the establishment or designation of a single State agency to 
administer the plan or supervise the administration of the plan.
    ``(c) Financial Participation.--The State plan shall provide for 
financial participation by the State in the same manner and amount as 
such State participates under title XIX, except that with respect to 
the sums expended for the administration of the State plan, the 
percentage shall be 50 percent.
    ``(d) Reasonable Promptness.--The State plan shall provide that all 
individuals wishing to make application for temporary employment 
assistance shall have opportunity to do so, and that such assistance be 
furnished with reasonable promptness to all eligible individuals.
    ``(e) Fair Hearing.--The State plan shall provide for granting an 
opportunity for a fair hearing before the State agency to any 
individual--
            ``(1) whose claim for temporary employment assistance is 
        denied or is not acted upon with reasonable promptness; or
            ``(2) whose assistance is reduced or terminated.
    ``(f) Automated Data Processing System.--The State plan shall, at 
the option of the State, provide for the establishment and operation of 
an automated statewide management information system designed 
effectively and efficiently, to assist management in the administration 
of the State plan approved under this part, so as--
            ``(1) to control and account for--
                    ``(A) all the factors in the total eligibility 
                determination process under such plan for assistance, 
                and
                    ``(B) the costs, quality, and delivery of payments 
                and services furnished to applicants for and recipients 
                of assistance; and
            ``(2) to notify the appropriate officials for child 
        support, food stamp, and social service programs, and the 
        medical assistance program approved under title XIX, whenever a 
        recipient becomes ineligible for such assistance or the amount 
        of assistance provided to a recipient under the State plan is 
        changed.
    ``(g) Disclosure of Information.--The State plan shall provide for 
safeguards which restrict the use or disclosure of information 
concerning applicants or recipients.
    ``(h) Detection of Fraud.--The State plan shall provide, in 
accordance with regulations issued by the Secretary, for appropriate 
measures to detect fraudulent applications for temporary employment 
assistance before the establishment of eligibility for such assistance.

                 ``Subpart 2--Administrative Provisions

``SEC. 411. APPROVAL OF PLAN.

    ``(a) In General.--The Secretary shall approve a State plan which 
fulfills the requirements under subpart 1 within 120 days of the 
submission of the plan by the State to the Secretary.
    ``(b) Deemed Approval.--If a State plan has not been rejected by 
the Secretary during the period specified in subsection (a), the plan 
shall be deemed to have been approved.

``SEC. 412. COMPLIANCE.

    In the case of any State plan for temporary employment assistance 
which has been approved under section 411, if the Secretary, after 
reasonable notice and opportunity for hearing to the State agency 
administering or supervising the administration of such plan, finds 
that in the administration of the plan there is a failure to comply 
substantially with any provision required by subpart 1 to
 be included in the plan, the Secretary shall notify such State agency 
that further payments will not be made to the State (or in the 
Secretary's discretion, that payments will be limited to categories 
under or parts of the State plan not affected by such failure) until 
the Secretary is satisfied that such prohibited requirement is no 
longer so imposed, and that there is no longer any such failure to 
comply. Until the Secretary is so satisfied the Secretary shall make no 
further payments to such State (or shall limit payments to categories 
under or parts of the State plan not affected by such failure).

``SEC. 413. PAYMENTS TO STATES.

    ``(a) Computation of Amount.--Subject to section 412, from the sums 
appropriated therefor, the Secretary of the Treasury shall pay to each 
State which has an approved plan for temporary employment assistance, 
for each quarter, beginning with the quarter commencing October 1, 
1996, an amount equal to the Federal medical assistance percentage (as 
defined in section 1905(b)) of the expenditures by the State under such 
plan.
    ``(b) Method of Computation and Payment.--The method of computing 
and paying such amounts shall be as follows:
            ``(1) The Secretary shall, prior to the beginning of each 
        quarter, estimate the amount to be paid to the State for such 
        quarter under the provisions of subsection (a), such estimate 
        to be based on--
                    ``(A) a report filed by the State containing its 
                estimate of the total sum to be expended in such 
                quarter in accordance with the provisions of such 
                subsection and stating the amount appropriated or made 
                available by the State and its political subdivisions 
                for such expenditures in such quarter, and if such 
                amount is less than the State's proportionate share of 
                the total sum of such estimated expenditures, the 
                source or sources from which the difference is expected 
                to be derived;
                    ``(B) records showing the number of needy children 
                in the State; and
                    ``(C) such other information as the Secretary may 
                find necessary.
            ``(2) The Secretary of Health and Human Services shall then 
        certify to the Secretary of the Treasury the amount so 
        estimated by the Secretary of Health and Human Services--
                    ``(A) reduced or increased, as the case may be, by 
                any sum by which the Secretary of Health and Human 
                Services finds that the estimate for any prior quarter 
                was greater or less than the amount which should have 
                been paid to the State for such quarter;
                    ``(B) reduced by a sum equivalent to the pro rata 
                share to which the Federal Government is equitably 
                entitled, as determined by the Secretary of Health and 
                Human Services, of the net amount recovered during any 
                prior quarter by the State or any political subdivision 
                thereof with respect to temporary employment assistance 
                furnished under the State plan; and
                    ``(C) reduced by such amount as is necessary to 
                provide the appropriate reimbursement to the Federal 
                Government that the State is required to make under 
                section 457 out of that portion of child support 
                collections retained by the State pursuant to such 
                section,
        except that such increases or reductions shall not be made to 
        the extent that such sums have been applied to make the amount 
        certified for any prior quarter greater or less than the amount 
        estimated by the Secretary of Health and Human Services for 
        such prior quarter.
    ``(c) Method of Payment.--The Secretary of the Treasury shall 
thereupon, through the Fiscal Service of the Department of the Treasury 
and prior to audit or settlement by the General Accounting Office, pay 
to the State, at the time or times fixed by the Secretary of Health and 
Human Services, the amount so certified.

``SEC. 414. ATTRIBUTION OF INCOME AND RESOURCES OF SPONSOR AND SPOUSE 
              TO ALIEN.

    ``(a) Applicability; Time Period.--For purposes of determining 
eligibility for and the amount of assistance under a State plan 
approved under this part for an individual who is an alien, the income 
and resources of any person who (as a sponsor of such individual's 
entry into the United States) executed an affidavit of support or 
similar agreement with respect to such individual, and the income and 
resources of the sponsor's spouse, shall be deemed to be the unearned 
income and resources of such individual (in accordance with subsections 
(b) and (c)) for a period ending with the date (if any) on which such 
individual becomes a citizen of the United States under chapter 2 of 
title III of the Immigration and Nationality Act, except that this 
section is not applicable if such individual is a needy child and such 
sponsor (or such sponsor's spouse) is the parent of such child.
    ``(b) Computation.--
            ``(1) Income.--The amount of income of a sponsor (and the 
        sponsor's spouse) which shall be deemed to be the unearned 
        income of an alien for any month shall be determined as 
        follows:
                    ``(A) The total amount of earned and unearned 
                income of such sponsor and such sponsor's spouse (if 
                such spouse is living with the sponsor) shall be 
                determined for such month.
                    ``(B) The amount determined under subparagraph (A) 
                shall be reduced by an amount equal to the sum of--
                            ``(i) the lesser of--
                                    ``(I) 20 percent of the total of 
                                any amounts received by the sponsor and 
                                the sponsor's spouse in such month as 
                                wages or salary or as net earnings from 
                                self-employment, plus the full amount 
                                of any costs incurred by them in 
                                producing self-employment income in 
                                such month, or
                                    ``(II) $175;
                            ``(ii) the needs standard established by 
                        the State under its plan for a family of the 
                        same size and composition as the sponsor and 
                        those other individuals living in the same 
                        household as the sponsor who are claimed by the 
                        sponsor as dependents for
                         purposes of determining the sponsor's Federal 
personal income tax liability;
                            ``(iii) any amounts paid by the sponsor (or 
                        the sponsor's spouse) to individuals not living 
                        in such household who are claimed by the 
                        sponsor as dependents for purposes of 
                        determining the sponsor's Federal personal 
                        income tax liability; and
                            ``(iv) any payments of alimony or child 
                        support with respect to individuals not living 
                        in such household.
            ``(2) Resources.--The amount of resources of a sponsor (and 
        the sponsor's spouse) which shall be deemed to be the resources 
        of an alien for any month shall be determined as follows:
                    ``(A) The total amount of the resources (determined 
                as if the sponsor were applying for assistance under 
                the State plan approved under this part) of such 
                sponsor and such sponsor's spouse (if such spouse is 
                living with the sponsor) shall be determined.
                    ``(B) The amount determined under subparagraph (A) 
                shall be reduced by $1,500.
    ``(c) Provision of Information by Alien Concerning Sponsor; Receipt 
of Information From Departments of State and Justice.--
            ``(1) Provision of information by alien.--Any individual 
        who is an alien and whose sponsor was a public or private 
        agency shall be ineligible for assistance under a State plan 
        approved under this part during the period beginning with the 
        alien's entry into the United States and ending with the date 
        (if any) on which such alien becomes a citizen of the United 
        States under chapter 2 of title III of the Immigration and 
        Nationality Act, unless the State agency administering such 
        plan determines that such sponsor either no longer exists or 
        has become unable to meet such individual's needs; and such 
        determination shall be made by the State agency based upon such 
        criteria as the State agency may specify in the State plan, and 
        upon such documentary evidence as the State agency may therein 
        require. Any such individual, and any other individual who is 
        an alien (as a condition of the alien's eligibility for 
        assistance under a State plan approved under this part during 
        such period), shall be required to provide to the State agency 
        administering such plan such information and documentation with 
        respect to the alien's sponsor as may be necessary in order for 
        the State agency to make any determination required under this 
        section, and to obtain any cooperation from such sponsor 
        necessary for any such determination. Such alien shall also be 
        required to provide to the State agency such information and 
        documentation as the State agency may request and which such 
        alien or the alien's sponsor provided in support of such 
        alien's immigration application.
            ``(2) Provision of information by departments.--The 
        Secretary shall enter into agreements with the Secretary of 
        State and the Attorney General whereby any information 
        available to them and required in order to make any 
        determination under this section will be provided by them to 
        the Secretary (who may, in turn, make such information 
        available, upon request, to a concerned State agency), and 
        whereby the Secretary of State and Attorney General will inform 
        any sponsor of an alien, at the time such sponsor executes an 
        affidavit of support or similar agreement, of the requirements 
        imposed by this section.
    ``(d) Joint and Several Liability of Alien and Sponsor for 
Overpayment of Assistance During Specified Period Following Entry.--Any 
sponsor of an alien, and such alien, shall be jointly and severally 
liable for an amount equal to any overpayment of assistance under the 
State plan made to such alien during the period described in subsection 
(c)(1), on account of such sponsor's failure to provide correct 
information under the provisions of this section, except where such 
sponsor was without fault, or where good cause of such failure existed. 
Any such overpayment which is not repaid to the State or recovered in 
accordance with the procedures generally applicable under the State 
plan to the recoupment of overpayments shall be withheld from any 
subsequent payment to which such alien or such sponsor is entitled 
under any provision of this title.
    ``(e) Division of Income and Resources of Individual Sponsoring 2 
or More Aliens Living in Same Home.--
            ``(1) In general.--In any case where a person is the 
        sponsor of 2 or more alien individuals who are living in the 
        same home, the income and resources of such sponsor (and the 
        sponsor's spouse), to the extent such income and resources 
        would be deemed the income and resources of any 1 of such 
        individuals under the preceding provisions of this section, 
        shall be divided into 2 or more equal shares (the number of 
        shares being the same as the number of such alien individuals) 
        and the income and resources of each such individual shall be 
        deemed to include 1 such share.
            ``(2) Availability.--Income and resources of a sponsor (and 
        the sponsor's spouse) which are deemed under this section to be 
        the income and resources of any alien individual in a family 
        shall not be considered in determining the need of other family 
        members except to the extent such income or resources are 
        actually available to such other members.
    ``(f) Aliens Not Covered.--The provisions of this section shall not 
apply with respect to any alien who is--
            ``(1) admitted to the United States as a result of the 
        application, prior to April 1, 1980, of the provisions of 
        section 203(a)(7) of the Immigration and Nationality Act;
            ``(2) admitted to the United States as a result of the 
        application, after March 31, 1980, of the provisions of section 
        207(c) of such Act;
            ``(3) paroled into the United States as a refugee under 
        section 212(d)(5) of such Act;
            ``(4) granted political asylum by the Attorney General 
        under section 208 of such Act; or
            ``(5) a Cuban and Haitian entrant, as defined in section 
        501(e) of the Refugee Education Assistance Act of 1980 (Public 
        Law 96-422).

``SEC. 415. QUALITY ASSURANCE, DATA COLLECTION, AND REPORTING SYSTEM.

    ``(a) Quality Assurance.--
            ``(1) In general.--Under the State plan, a quality 
        assurance system shall be developed based upon a collaborative 
        effort involving the Secretary, the State, the political 
        subdivisions of the State, and assistance recipients, and shall 
        include quantifiable program outcomes related to self 
        sufficiency in the categories of welfare-to-work, payment 
        accuracy, and child support.
            ``(2) Modifications to system.--As deemed necessary, but 
        not more often than every 2 years, the Secretary, in 
        consultation with the State, the political subdivisions of the 
        State, and assistance recipients, shall make appropriate 
        changes in the design and administration of the quality 
        assurance system, including changes in benchmarks, measures, 
        and data collection or sampling procedures.
    ``(b) Data Collection and Reporting.--
            ``(1) In general.--The State plan shall provide for a 
        quarterly report to the Secretary regarding the data described 
        in paragraphs (2) and (3) and such additional data needed for 
        the quality assurance system. The data collection and reporting 
        system under this subsection shall promote accountability, 
        continuous improvement, and integrity in the State plans for 
        temporary employment assistance and Work First.
            ``(2) Disaggregated data.--The State shall collect the 
        following data items on a monthly basis from disaggregated case 
        records of applicants for and recipients of temporary 
        employment assistance from the previous month:
                    ``(A) The age of adults and children (including 
                pregnant women).
                    ``(B) Marital or familial status of cases: married 
                (2-parent family), widowed, divorced, separated, or 
                never married; or child living with other adult 
                relative.
                    ``(C) The gender, race, educational attainment, 
                work experience, disability status (whether the 
                individual is seriously ill, incapacitated, or caring 
                for a disabled or incapacitated child) of adults.
                    ``(D) The amount of cash assistance and the amount 
                and reason for any reduction in such assistance. Any 
                other data necessary to determine the timeliness and 
                accuracy of benefits and welfare diversions.
                    ``(E) Whether any member of the family receives 
                benefits under any of the following:
                            ``(i) Any housing program.
                            ``(ii) The food stamp program under the 
                        Food Stamp Act of 1977.
                            ``(iii) The Head Start programs carried out 
                        under the Head Start Act.
                            ``(iv) Any job training program.
                    ``(F) The number of months since the most recent 
                application for assistance under the plan.
                    ``(G) The total number of months for which 
                assistance has been provided to the families under the 
                plan.
                    ``(H) The employment status, hours worked, and 
                earnings of individuals while receiving assistance, 
                whether the case was closed due to employment, and 
                other data needed to meet the work performance rate.
                    ``(I) Status in Work First and workfare, including 
                the number of hours an individual participated and the 
                component in which the individual participated.
                    ``(J) The number of persons in the assistance unit 
                and their relationship to the youngest child. 
                Nonrecipients in the household and their relationship 
                to the youngest child.
                    ``(K) Citizenship status.
                    ``(L) Shelter arrangement.
                    ``(M) Unearned income (not including temporary 
                employment assistance), such as child support, and 
                assets.
                    ``(N) The number of children who have a parent who 
                is deceased, incapacitated, or unemployed.
                    ``(O) Geographic location.
            ``(3) Aggregated data.--The State shall collect the 
        following data items on a monthly basis from aggregated case 
        records of applicants for and recipients of temporary 
        employment assistance from the previous month:
                    ``(A) The number of adults receiving assistance.
                    ``(B) The number of children receiving assistance.
                    ``(C) The number of families receiving assistance.
                    ``(D) The number of assistance units who had their 
                grants reduced or terminated and the reason for the 
                reduction or termination, including sanction, 
                employment, and meeting the time limit for assistance).
                    ``(E) The number of applications for assistance; 
                the number approved and the number denied and the 
                reason for denial.
            ``(4) Longitudinal studies.--The State shall submit 
        selected data items for a cohort of individuals who are tracked 
        over time. This longitudinal sample shall be used for selected 
        data items described in paragraphs (2) and (3), as determined 
        appropriate by the Secretary.
    ``(c) Additional Data.--The report required by subsection (b) for a 
fiscal year quarter shall also include the following:
            ``(1) Report on use of federal funds to cover 
        administrative costs and overhead.--A statement of--
                    ``(A) the percentage of the Federal funds paid to 
                the State under this part for the fiscal year quarter 
                that are used to cover administrative costs or 
                overhead; and
                    ``(B) the total amount of State funds that are used 
                to cover such costs or overhead.
            ``(2) Report on state expenditures on programs for needy 
        families.--A statement of the total amount expended by the 
        State during the fiscal year quarter on programs for needy 
        families, with the amount spent on the program under this part, 
        and the purposes for which such amount was spent, separately 
        stated.
            ``(3) Report on noncustodial parents participating in work 
        activities.--The number of noncustodial parents in the State 
        who participated in work activities during the fiscal year 
        quarter.
            ``(4) Report on child support collected.--The total amount 
        of child support collected by the State agency administering 
        the State plan under part D on behalf of a family receiving 
        assistance under this part.
            ``(5) Report on child care.--The total amount expended by 
        the State for child care under this part, along with a 
        description of the types of child care provided, such as child 
        care provided in the case of a family that has ceased to 
        receive assistance under this part because of increased hours 
        of, or increased income from, employment, or 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.
            ``(6) Report on transitional services.--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 increased hours of, or increased income from, 
        employment, along with a description of such services.
    ``(d) Collection Procedures.--The Secretary shall provide case 
sampling plans and data collection procedures as deemed necessary to 
make statistically valid estimates of plan performance.
    ``(e) Verification.--The Secretary shall develop and implement 
procedures for verifying the quality of the data submitted by the 
State, and shall provide technical assistance, funded by the compliance 
penalties imposed under section 412, if such data quality falls below 
acceptable standards.

``SEC. 416. COMPILATION AND REPORTING OF DATA.

    ``(a) Current programs.--The Secretary shall, on the basis of the 
Secretary's review of the reports received from the States under 
section 415, compile such data as the Secretary believes necessary, and 
from time to time, publish the findings as to the effectiveness of the 
programs developed and administered by the States under this part. The 
Secretary shall annually report to the Congress on the programs 
developed and administered by each State under this part.
    ``(b) Research, Demonstration and Evaluation.--Of the amount 
specified under section 413(a), an amount equal to .25 percent is 
authorized to be expended by the Secretary to support the following 
types of research, demonstrations, and evaluations:
            ``(1) State-initiated research.--States may apply for 
        grants to cover 90 percent of the costs of self-evaluations of 
        programs under State plans approved under this part.
            ``(2) Demonstrations.--
                    ``(A) In general.--The Secretary may implement and 
                evaluate demonstrations of innovative and promising 
                strategies to--
                            ``(i) improve child well-being through 
                        reductions in illegitimacy, teen pregnancy, 
                        welfare dependency, homelessness, and poverty;
                            ``(ii) test promising strategies by 
                        nonprofit and for-profit institutions to 
                        increase employment, earning, child support 
                        payments, and self-sufficiency with respect to 
                        temporary employment assistance clients under 
                        State plans; and
                            ``(iii) foster the development of child 
                        care.
                    ``(B) Additional parameters.--Demonstrations 
                implemented under this paragraph--
                            ``(i) may provide one-time capital funds to 
                        establish, expand, or replicate programs;
                            ``(ii) may test performance-based grant to 
                        loan financing in which programs meeting 
                        performance targets receive grants while 
                        programs not meeting such targets repay funding 
                        on a pro-rated basis; and
                            ``(iii) should test stategies in multiple 
                        States and types of communities.
            ``(3) Federal evaluations.--
                    ``(A) In general.--The Secretary shall conduct 
                research on the effects, benefits, and costs of 
                different approaches to operating welfare programs, 
                including an implementation study based on a 
                representative sample of States and localities, 
                documenting what policies
                 were adopted, how such policies were implemented, the 
types and mix of services provided, and other such factors as the 
Secretary deems appropriate.
                    ``(B) Research on related issues.--The Secretary 
                shall also conduct research on issues related to the 
                purposes of this part, such as strategies for moving 
                welfare recipients into the workforce quickly, reducing 
                teen pregnancies and out-of-wedlock births, and 
                providing adequate child care.
                    ``(C) State reimbursement.--The Secretary may 
                reimburse a State for any research-related costs 
                incurred pursuant to research conducted under this 
                paragraph.
                    ``(D) Use of random assignment.--Evaluations 
                authorized under this paragraph should use random 
                assignment to the maximum extent feasible and 
                appropriate.
            ``(4) Regional information centers.--
                    ``(A) In general.--The Secretary shall establish 
                not less than 5, nor more than 7 regional information 
                centers located at major research universities or 
                consortiums of universities to ensure the effective 
                implementation of welfare reform and the efficient 
                dissemination of information about innovations, 
                evaluation outcomes, and training initiatives.
                    ``(B) Center responsibilities.--The Centers shall 
                have the following functions:
                            ``(i) Disseminate information about 
                        effective income support and related programs, 
                        along with suggestions for the replication of 
                        such programs.
                            ``(ii) Research the factors that cause and 
                        sustain welfare dependency and poverty in the 
                        regions served by the respective centers.
                            ``(iii) Assist the States in the region 
                        formulate and implement innovative programs and 
                        improvements in existing programs that help 
                        clients move off welfare and become productive 
                        citizens.
                            ``(iv) Provide training as appropriate to 
                        staff of State agencies to enhance the ability 
                        of the agencies to successfully place Work 
                        First clients in productive employment or self-
                        employment.
                    ``(C) Center eligibility to perform evaluations.--
                The Centers may compete for demonstration and 
                evaluation contracts developed under this section.

``SEC. 417. COLLECTION OF OVERPAYMENTS FROM FEDERAL TAX REFUNDS.

    ``(a) In General.--Upon receiving notice from a State agency 
administering a plan approved under this part that a named individual 
has been overpaid under the State plan approved under this part, the 
Secretary of the Treasury shall determine whether any amounts as 
refunds of Federal taxes paid are payable to such individual, 
regardless of whether such individual filed a tax return as a married 
or unmarried individual. If the Secretary of the Treasury finds that 
any such amount is payable, the Secretary shall withhold from such 
refunds an amount equal to the overpayment sought to be collected by 
the State and pay such amount to the State agency.
    ``(b) Regulations.--The Secretary of the Treasury shall issue 
regulations, approved by the Secretary of Health and Human Services, 
that provide--
            ``(1) that a State may only submit under subsection (a) 
        requests for collection of overpayments with respect to 
        individuals--
                    ``(A) who are no longer receiving temporary 
                employment assistance under the State plan approved 
                under this part,
                    ``(B) with respect to whom the State has already 
                taken appropriate action under State law against the 
                income or resources of the individuals or families 
                involved; and
                    ``(C) to whom the State agency has given notice of 
                its intent to request withholding by the Secretary of 
                the Treasury from the income tax refunds of such 
                individuals;
            ``(2) that the Secretary of the Treasury will give a timely 
        and appropriate notice to any other person filing a joint 
        return with the individual whose refund is subject to 
        withholding under subsection (a); and
            ``(3) the procedures that the State and the Secretary of 
        the Treasury will follow in carrying out this section which, to 
        the maximum extent feasible and consistent with the specific 
        provisions of this section, will be the same as those issued 
        pursuant to section 464(b) applicable to collection of past-due 
        child support.''.
    (b) Payments to Puerto Rico.--Section 1108(a)(1) (42 U.S.C. 
1308(a)(1)) is amended--
            (1) in subparagraph (F), by striking ``or''; and
            (2) by striking subparagraph (G) and inserting the 
        following:
                    ``(G) $82,000,000 with respect to each of fiscal 
                years 1989 through 1995, or
                    ``(H) $102,500,000 with respect to the fiscal year 
                1996 and each fiscal year thereafter;''.
    (c) Conforming Amendments Relating To Collection of Overpayments.--
            (1) Section 6402 of the Internal Revenue Code of 1986 
        (relating to authority to make credits or refunds), as amended 
        by section 561(a), is amended--
                    (A) in subsection (a), by striking ``(c) and (d)'' 
                and inserting ``(c), (d), and (e)'';
                    (B) by redesignating subsections (e) through (i) as 
                subsections (f) through (j), respectively; and
                    (C) by inserting after subsection (d) the 
                following:
    ``(g) Collection of Overpayments Under Title IV-A of the Social 
Security Act.--The amount of any overpayment to be refunded to the 
person making the overpayment shall be reduced (after reductions 
pursuant to subsections (c) and (d), but before a credit against future 
liability for an internal revenue tax) in accordance with section 417 
of the Social Security Act (concerning recovery of overpayments to 
individuals under State plans approved under part A of title IV of such 
Act).''.
            (2) Section 552a(a)(8)(B)(iv)(III) of title 5, United 
        States Code, is amended by striking ``section 464 or 1137 of 
        the Social Security Act'' and inserting ``section 417, 464, or 
        1137 of the Social Security Act.''
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall be effective with respect 
        to calendar quarters beginning on or after October 1, 1996.
            (2) Special rule.--In the case of a State that the 
        Secretary of Health and Human Services determines requires 
        State legislation (other than legislation appropriating funds) 
        in order to meet the requirements imposed by the amendment made 
        by subsection (a), the State shall not be regarded as failing 
        to comply with the requirements of such amendment before 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 enactment of this Act. For 
        purposes of this paragraph, in the case of a State that has a 
        2-year legislative session, each year of the session shall be 
        treated as a separate regular session of the State legislature.
              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

SEC. 201. WORK FIRST EMPLOYMENT BLOCK GRANT.

    (a) In General.--Title IV (42 U.S.C. 601 et seq.) is amended by 
striking part F and inserting the following:
          ``Part F--Work First Employment Block Grant Program

       ``Subpart 1--Establishment and Operation of State Programs

``SEC. 481. GOALS OF THE WORK FIRST PROGRAM.

    ``The goals of a Work First program are as follows:
            ``(1) Objective.--The objective of the program is for each 
        adult receiving temporary employment assistance to find and 
        hold full-time unsubsidized paid employment, and for this 
        objective to be achieved in a cost-effective fashion.
            ``(2) Strategy.--The strategy of the program is to connect 
        clients of temporary employment assistance with the private 
        sector labor market as soon as possible and offer such clients 
        the support and skills necessary to remain in the labor market. 
        Each component of the program should emphasize employment and 
        the understanding that minimum wage jobs are a stepping stone 
        to more highly paid employment.
            ``(3) Job creation.--The creation of jobs, with an emphasis 
        on private sector jobs, through the options available under 
        subpart 2, shall be a component of the block grant program and 
        shall be a priority for each State office with responsibilities 
        under the program.
            ``(4) Forms of assistance.--The State shall provide 
        assistance to clients in the program through a range of 
        components, which may include job placement services (including 
        vouchers for job placement services), work supplementation 
        programs, temporary subsidized job creation, assistance in 
        establishing microenterprises, job counseling services, or 
        other work-related activities, to provide individuals with the 
        support and skills necessary to obtain and keep employment in 
        the private sector (including education and training, if 
        necessary).

``SEC. 482. REQUIREMENT THAT RECIPIENTS ENTER THE WORK FIRST PROGRAM.

    ``(a) In General.--Except as provided in subsection (b), the State 
may place in the Work First program--
            ``(1) clients of temporary employment assistance pursuant 
        to the State plan approved under part A who have signed a 
        parent empowerment contract as described in section 403(b); and
            ``(2) absent parents who are unemployed, on the condition 
        that, once employed, such parents meet their child support 
        obligations.
    ``(b) Exceptions.--A State may not require a client of temporary 
employment assistance to participate in the Work First program 
(although a client may volunteer), if the client--
            ``(1) is seriously ill, incapacitated, or of advanced age;
            ``(2)(A) except for a child described in subparagraph (B), 
        is a parent with a child under age 1 year (or age 6 months, at 
        the option of the State), or
            ``(B) in the case of a 2nd or subsequent child born after a 
        parent has become a client, is a parent with a child under age 
        3 months;
            ``(3) is pregnant in the 3rd trimester;
            ``(4) is caring for a family member who is ill or 
        incapacitated; or
            ``(5) is under age 18 (or age 19, at the option of the 
        State).
    ``(c) Nondisplacement.--
            ``(1) In general.--The Work First program shall not 
        displace any employee or position (including partial 
        displacement, such as a reduction in the hours of nonovertime 
        work, wages, or employment benefits), fill any unfilled 
        vacancy, impair existing contracts for services, be 
        inconsistent with existing laws, regulations, or collective 
        bargaining agreements, or infringe upon the recall rights or 
        promotional opportunities of any worker. Work activities shall 
        be in addition to activities that otherwise would be available 
        and shall not supplant the hiring of employed workers not 
        funded under the program.
            ``(2) Enforcing anti-displacement protections.--The State 
        shall establish and maintain an impartial grievance procedure 
        to resolve any complaints alleging violations of the 
        requirements of paragraph (1) within 60 days and, if a decision 
        is adverse to the party who filed such grievance or no decision 
        has been reached, provide for the completion of an arbitration 
        procedure within 75 days. Appeals may be made to the Secretary 
        who shall make a decision within 75 days. Remedies shall 
        include termination or suspension of payments, prohibition of 
        the placement of the participant, reinstatement of an employee, 
        and other relief to make an aggrieved employee whole. If a 
        grievance is filed regarding a proposed placement of a 
        participant, such placement shall not be made unless such 
        placement is consistent with the resolution of the grievance 
        pursuant to this paragraph.

                    ``Subpart 2--Program Performance

``SEC. 485. WORK PERFORMANCE RATES; PERFORMANCE-BASED BONUSES.

    ``(a) Work Performance Rates.--
            ``(1) Requirement.--A State that operates a program under 
        this part shall achieve a work performance rate for the 
        following fiscal years of not less than the following 
        percentages:
                    ``(A) 30 percent for fiscal year 1997.
                    ``(B) 35 percent for fiscal year 1998.
                    ``(C) 40 percent for fiscal year 1999.
                    ``(D) 50 percent for fiscal year 2000 or 
                thereafter.
            ``(2) Work performance rate defined.--
                    ``(A) In general.--As used in this subsection, the 
                term `work performance rate' means, with respect to a 
                State and a fiscal year, an amount equal to--
                            ``(i) the sum of the average monthly number 
                        of individuals eligible for temporary 
                        employment assistance under the State plan 
                        approved under part A who, during the fiscal 
                        year--
                                    ``(I) obtain employment in an 
                                unsubsidized job and cease to receive 
                                such temporary employment assistance to 
                                the extent allowed under subparagraph 
                                (B);
                                    ``(II) work 20 or more hours per 
                                week (or 30 hours, at the option of the 
                                State) in an unsubsidized job while 
                                still receiving such temporary 
                                employment assistance;
                                    ``(III) work 20 or more hours per 
                                week (or 30 hours, at the option of the 
                                State) in a subsidized job through the 
                                Work First program (other than through 
                                workfare or community service under 
                                section 493); or
                                    ``(IV) are parents under the age of 
                                18 years (or 19 years, at the option of 
                                the State) in school and regularly 
                                attending classes obtaining the basic 
                                skills needed for work; divided by
                            ``(ii) the average monthly number of 
                        families with parents eligible for such 
                        temporary employment assistance who, during the 
                        fiscal year, are not in groups described under 
                        section 482(b).
                    ``(B) Special rules.--
                            ``(i) Individuals in unsubsidized jobs.--
                        For purposes of subparagraph (A)(i)(I), an 
                        individual shall be considered to be 
                        participating under a State plan approved under 
                        part A for each of the 1st 12 months (without 
                        regard to fiscal year) after an individual 
                        ceases to receive temporary employment 
                        assistance under such plan as the result of 
                        employment in an unsubsidized job and during 
                        which such individual does not reapply for such 
                        assistance.
                            ``(ii) Individuals in work first subsidized 
                        jobs.--For purposes of subparagraph 
                        (A)(i)(III), individuals in workfare or 
                        community service (as defined in section 493) 
                        may be counted if such individuals reside in 
                        areas--
                                    ``(I) with an unemployment rate 
                                exceeding 7.5 percent; or
                                    ``(II) with other circumstances 
                                deemed sufficient by the Secretary.
                            ``(iii) Deemed compliance.--A State shall 
                        be deemed to have met the requirement in 
                        paragraph (1) if its work performance rate in a 
                        given fiscal year exceeds that of the prior 
                        fiscal year by 10 percentage points.
            ``(3) Effect of failure to meet work performance rates.--If 
        a State fails to achieve the work performance rate required by 
        paragraph (1) for any fiscal year--
                    ``(A) in the case of the 1st failure, the Secretary 
                shall make recommendations for changes in the State 
                Work First program to achieve future required work 
                performance rates; and
                    ``(A) in the case of the 2nd or subsequent 
                failure--
                            ``(i) the Secretary shall reduce by 10 
                        percentage points (or less, at the discretion 
                        of the Secretary based on the degree of 
                        failure) the rate of Federal payments for the 
                        administrative expenses for the State plan 
                        approved under part A for the subsequent fiscal 
                        year;
                            ``(ii) the Secretary shall make further 
                        recommendations for changes in the State Work 
                        First program to achieve future required work 
                        performance rates which the State may elect to 
                        follow; and
                            ``(iii) the State shall demonstrate to the 
                        Secretary how the State shall achieve the 
                        required work performance rate for the 
                        subsequent fiscal year.
    ``(b) Performance-Based Bonuses.--
            ``(1) In general.--In addition to any other payment under 
        section 495, each State, beginning in fiscal year 1997, which 
        has achieved its work performance rate for the fiscal year (as 
        determined under subsection (a)) shall be entitled to receive a 
        bonus in the subsequent fiscal year for each individual 
        eligible for temporary employment assistance under the State 
        plan approved under part A who is described in subsection 
        (a)(2)(A)(i) in excess of the number of such individuals 
        necessary to meet such work performance rate, but the aggregate 
        of such bonuses for any fiscal year in the case of any State 
        may not exceed the limitation determined under paragraph (3) 
        with respect to the State.
            ``(2) Use of payments.--Bonus payments under this 
        subsection--
                    ``(A) may be used to supplement, not supplant, 
                State funding of Work First or child care activities; 
                and
                    ``(B) shall be used in a manner which rewards job 
                retention.
            ``(3) Limitation.--
                    ``(A) In general.--The limitation determined under 
                this paragraph with respect to a State for any fiscal 
                year is the amount that bears the same ratio to the 
                amount specified in subparagraph (B) for such fiscal 
                year as the average monthly number of adult recipients 
                (as defined in section 495(a)(6)) in the State in the 
                preceding fiscal year bears to the average monthly 
                number of such recipients in all the States for such 
                preceding year.
                    ``(B) Amount specified.--The amount specified in 
                this subparagraph is--
                            ``(i) $100,000,000 for fiscal year 1997 
                        rates payable in fiscal year 1998;
                            ``(ii) $200,000,000 for fiscal year 1998 
                        rates payable in fiscal year 1999;
                            ``(iii) $300,000,000 for fiscal year 1999 
                        rates payable in fiscal year 2000;
                            ``(iv) $400,000,000 for fiscal year 2000 
                        rates payable in fiscal year 2001; and
                            ``(v) $500,000,000 for fiscal year 2001 
                        rates payable in fiscal year 2002.

                    ``Subpart 3--Program Components

``SEC. 486. PROGRAM COMPONENTS.

    ``(a) In General.--Under the Work First program the State shall 
have the option to provide a wide variety of work-related activities to 
clients in the temporary employment assistance program under the State 
plan approved under part A, including job placement services (including 
vouchers for job placement services), work supplementation programs, 
temporary subsidized job creation, assistance in establishing 
microenterprises, and job counseling services described in this 
subpart.
    ``(b) Job Search Activities.--Each client, who is not exempt from 
work requirements, shall begin Work First by participating in job 
search activities designed by the State for 2 months.
    ``(b) Workfare or Community Service.--If, after 2 years, a client 
(who is not exempt from work requirements) who has signed a parent 
empowerment contract is not working at least 20 hours a week (within 
the meaning of section 485(a)(2)), then the State shall offer that 
client a workfare or community service position, with hours per week 
and tasks to be determined by the State.

``SEC. 487. JOB PLACEMENT; USE OF PLACEMENT COMPANIES.

    ``(a) In General.--The State through the Work First program may 
operate its own job placement assistance program or may establish a job 
placement voucher program under subsection (b).
    ``(b) Job Placement Voucher Program.--A job placement voucher 
program established by a State under this subsection shall include the 
following requirements:
            ``(1) List of organizations maintained.--The State shall 
        identify, maintain, and make available to a client a list of 
        State-approved job placement organizations that offer services 
        in the area where the client 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.
            ``(2) Execution of contract.--A client shall, at the time 
        the client becomes eligible for temporary employment 
        assistance--
                    ``(A) receive the list and description described in 
                paragraph (1);
                    ``(B) agree, in exchange for job placement and 
                support services, to--
                            ``(i) 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 client; and
                            ``(ii) comply with the terms of the 
                        contract; and
                    ``(C) receive a job placement voucher (in an amount 
                to be determined by the State) for payment to a State-
                approved job placement organization.
            ``(3) Use of voucher.--At the time a client executes a 
        contract with a State-approved job placement organization, the 
        client shall provide the organization with the job placement 
        voucher that the client received pursuant to paragraph (2)(C).
            ``(4) Redemption.--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 a client 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--
                    ``(A) finds an employment position (as determined 
                by the State) for the client who provided the voucher; 
                and
                    ``(B) certifies to the State that the client 
                remains employed with the employer that the 
                organization originally placed the client with for the 
                greater of--
                            ``(i) 6 continuous months; or
                            ``(ii) a period determined by the State.
            ``(5) Performance-based standards.--
                    ``(A) In general.--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 clients 
                participating in such voucher program. Such standards 
                shall take into account the economic conditions of the 
                State in determining the rate of success.
                    ``(B) Annual evaluation.--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 subparagraph (A).
                    ``(C) Annual report.--The State shall submit a 
                report containing the results of an evaluation 
                conducted under subparagraph (B) 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 
                subparagraph 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.

``SEC. 488. REVAMPED JOBS PROGRAM.

    ``The State through the Work First program may operate a program 
similar to the program known as the `GAIN Program' that has been 
operated by Riverside County, California, under Federal law as in 
effect immediately before the effective date of this subpart.

``SEC. 489. TEMPORARY SUBSIDIZED JOB CREATION.

    ``The State through the Work First program may establish a program 
similar to the program known as `JOBS Plus' that has been operated by 
the State of Oregon under
 Federal law as in effect immediately before the effective date of this 
subpart.

``SEC. 490. FAMILY INVESTMENT PROGRAM.

    ``The State through the Work First program may establish a program 
similar to the program known as the `Family Investment Program' that 
has been operated by the State of Iowa to move families off of welfare 
and into self-sufficient employment.

``SEC. 491. MICROENTERPRISE.

    ``(a) Grants and Loans to Nonprofit Organizations for the Provision 
of Technical Assistance, Training, and Credit to Low Income 
Entrepreneurs.--The State through the Work First program may make 
grants and loans to nonprofit organizations to provide technical 
assistance, training, and credit to low income entrepreneurs for the 
purpose of establishing microenterprises.
    ``(b) Microenterprise Defined.--For purposes of this section, the 
term `microenterprise' means a commercial enterprise which has 5 or 
fewer employees, 1 or more of whom owns the enterprise.

``SEC. 492. WORK SUPPLEMENTATION PROGRAM.

    ``(a) In General.--The State through the Work First program may 
institute a work supplementation program under which the State, to the 
extent it considers appropriate, may reserve the sums that would 
otherwise be payable to clients in the temporary employment assistance 
program under the State plan approved under part A and use the sums 
instead for the purpose of providing and subsidizing jobs for clients 
as an alternative to the temporary employment assistance that would 
otherwise be so payable to the clients.
    ``(b) Sampling Methodology Permitted.--In determining the amounts 
to be reserved and used for providing and subsidizing jobs under this 
section as described in subsection (a), the State may use a sampling 
methodology.
    ``(c) Supplemented Job.--For purposes of this section, a 
supplemented job is--
            ``(1) a job provided to an eligible client by the State or 
        local agency administering the State plan under part A; or
            ``(2) a job provided to an eligible client by any other 
        employer for which at least part of the wages are paid by the 
        State or local agency.
A State may provide or subsidize under the program any job which the 
State determines to be appropriate.
    ``(d) Cost Limitation.--The amount of the Federal payment to a 
State under section 413 for expenditures incurred in making payments to 
clients and employers under a work supplementation program under this 
section shall not exceed an amount equal to the amount which would 
otherwise be payable under such section 413 if the family of each 
client employed in the program established in the State under this 
section had received the maximum amount of temporary employment 
assistance payable under the State plan approved under part A to such a 
family with no income for the number of months in which the client was 
employed in the program.
    ``(e) Rules of Interpretation.--
            ``(1) No employee status required.--This section shall not 
        be construed as requiring the State or local agency 
        administering the State plan approved under part A to provide 
        employee status to an eligible client to whom the State or 
        local agency provides a job under the work supplementation 
        program (or with respect to whom the State or local agency 
        provides all or part of the wages paid to the client by another 
        entity under the program).
            ``(2) Wages are considered earned income.--Wages paid under 
        a work supplementation program shall be considered to be earned 
        income for purposes of any provision of law.
    ``(f) Preservation of Medicaid Eligibility.--Any State that chooses 
to operate a work supplementation program under this section shall 
provide that any client who participates in the program, and any child 
or relative of the client (or other individual living in the same 
household as the client) who would be eligible for temporary employment 
assistance under the State plan approved under part A if the State did 
not have a work supplementation program, shall be considered 
individuals receiving temporary employment assistance under the State 
plan approved under part A for purposes of eligibility for medical 
assistance under the State plan approved under title XIX.

``SEC. 493. WORKFARE AND COMMUNITY SERVICE.

    ``(a) In General.--A State through the Work First program may 
establish and carry out a workfare or community service program that 
meets the requirements of this section.
    ``(b) Workfare Defined.--For purposes of this section, the term 
`workfare' means a job provided to a client by the State administering 
the State plan under part A with respect to which the client works in 
return for assistance under such plan and receives no wages.
    ``(c) Community Service Defined.--For purposes of this section, the 
term `community service' means work of benefit to the community, such 
as volunteer work in schools and community organizations.
    ``(d) Assistance Not Considered Earned Income.--Assistance paid 
under a workfare program shall not be considered to be earned income 
for purposes of any provision of law.
    ``(e) Use of Placement Companies.--A State that establishes a 
workfare or community service program under this section may enter into 
contracts with private companies (whether operated for profit or not 
for profit) for the placement of clients in the program in positions of 
full-time employment, preferably in the private sector, for wages 
sufficient to eliminate the need of such clients for temporary 
employment assistance.

                          ``Subpart 4--Funding

``SEC. 495. FUNDING.

    ``(a) Funding for Work First.--
            ``(1) In general.--Each State that is operating a program 
        in accordance with this part shall be entitled to payments 
        under subsection (b) for any fiscal year in an amount equal to 
        the sum of the applicable percentages (specified in such 
        subsection) of its expenditures to carry out such program 
        (subject to limitations prescribed by or pursuant to this part 
        or this section on expenditures that may be included for 
        purposes of determining payments under subsection (b)), but 
        such payments for any fiscal year
         in the case of any State may not exceed the limitation 
determined under paragraph (2) with respect to the State.
            ``(2) Limitation.--The limitation determined under this 
        paragraph with respect to a State for any fiscal year is the 
        amount that bears the same ratio to the amount specified in 
        paragraph (3) for such fiscal year as the average monthly 
        number of adult recipients (as defined in paragraph (5)) in the 
        State in the preceding fiscal year bears to the average monthly 
        number of such recipients in all the States for such preceding 
        year.
            ``(3) Amount specified.--Subject to paragraph (4), the 
        amount specified in this paragraph is--
                    ``(A) $1,700,000,000 for fiscal year 1997;
                    ``(B) $1,900,000,000 for fiscal year 1998;
                    ``(C) $2,200,000,000 for fiscal year 1999; and
                    ``(D) $2,500,000,000 for fiscal years 2000, 2001, 
                and 2002.
            ``(4) Indian tribal governments.--
                    ``(A) Application.--
                            ``(i) In general.--An Indian tribe or 
                        Alaska Native organization may apply at any 
                        time to the Secretary (in such manner as the 
                        Secretary prescribes) to conduct a Work First 
                        program.
                            ``(ii) Participation.--If a tribe or 
                        organization chooses to apply and the 
                        application is approved, such tribe or 
                        organization shall be entitled to a direct 
                        payment in the amount determined in accordance 
                        with the provisions of subparagraph (B) for 
                        each fiscal year beginning after such approval.
                            ``(iii) No participation.--If a tribe or 
                        organization chooses not to apply, the amount 
                        that would otherwise be available to such tribe 
                        or organization for the fiscal year shall be 
                        payable to the State in which that tribe or 
                        organization is located. Such amount shall be 
                        used by that State to provide Work First 
                        program services to the recipients living 
                        within that tribe or organization's 
                        jurisdiction.
                            ``(iv) No match required.--Indian tribes 
                        and Alaska Native organizations shall not be 
                        required to submit a monetary match to receive 
                        a payment under this paragraph.
                    ``(B) Payment amount.--
                            ``(i) In general.--The Secretary shall pay 
                        directly to each Indian tribe or Alaska Native 
                        organization conducting a Work First program 
                        for a fiscal year an amount which bears the 
                        same ratio to 3 percent of the amount specified 
                        under paragraph (3) for such fiscal year as the 
                        adult Indian or Alaska Native population 
                        receiving temporary employment assistance 
                        residing within the area to be served by the 
                        tribe or organization bears to the total of 
                        such adults receiving such assistance residing 
                        within all areas which any such tribe or 
                        organization could serve.
                            ``(ii) Adjustments.--The Secretary shall 
                        from time to time review the components of the 
                        ratios established in clause (i) to determine 
                        whether the individual payments under this 
                        paragraph continue to reflect accurately the 
                        distribution of population among the grantees, 
                        and shall make adjustments necessary to 
                        maintain the correct distribution of funding.
                    ``(C) Use in succeeding fiscal year.--A grantee 
                under this paragraph may use not to exceed 20 percent 
                of the amount for the fiscal year under subparagraph 
                (B) to carry out the Work First program in the 
                succeeding fiscal year.
                    ``(D) Voluntary termination.--An Indian tribe or 
                Alaska Native organization may voluntarily terminate 
                its Work First program. The amount under subparagraph 
                (B) with respect to such program for the fiscal year 
                shall be payable to the State in which that tribe or 
                organization is located. Such amount shall be used by 
                that State to provide Work First program services to 
                the recipients living within that tribe or 
                organization's jurisdiction. If a voluntary termination 
                of a Work First program occurs under this subparagraph, 
                the tribe or organization shall not be eligible to 
                submit an application under this paragraph before the 
                6th year following such termination.
                    ``(E) Joint programs.--An Indian tribe or Alaska 
                Native organization may also apply to the Secretary 
                jointly with 1 or more such tribes or organizations to 
                administer a Work First program as a consortium. The 
                Secretary shall establish such terms and conditions for 
                such consortium as are necessary.
            ``(5) Job creation.--Of the amount specified under 
        paragraph (3), 5 percent shall be set aside by the Secretary 
        for the program described in section 203(b) of the Work First 
        Act of 1995.
            ``(6) Definition.--For purposes of this subsection, the 
        term `adult recipient' in the case of any State means an 
        individual other than a needy child (unless such child is the 
        custodial parent of another needy child) whose needs are met 
        (in whole or in part) with payments of temporary employment 
        assistance.
    ``(b) State Allocations.--
            ``(1) In general.--The Secretary shall pay to each State 
        that is operating a program in accordance with part F, with 
        respect to expenditures by the State to carry out such program 
        (including expenditures for child care under section 405(b), 
        but only with respect to a State to which section 1108 
        applies), an amount equal to--
                    ``(A) with respect to so much of such expenditures 
                in a fiscal year as do not exceed the State's 
                expenditures in the fiscal year 1987 with respect to 
                which payments were made to such State from its 
                allotment for such fiscal year pursuant to part C of 
                this title as then in effect, 90 percent; and
                    ``(B) with respect to so much of such expenditures 
                in a fiscal year as exceed the amount described in 
                subparagraph (A)--
                            ``(i) 50 percent, in the case of 
                        expenditures for administrative costs 
                        (including costs of emergency assistance) made 
                        by a State in operating such program for such 
                        fiscal year (other than the costs of 
                        transportation and the personnel costs for case 
                        management staff employed full-time in the 
                        operation of such program); and
                            ``(ii) 70 percent or the Federal medical 
                        assistance percentage (as defined in section 
                        1905(b)) increased by 10 percentage points, 
                        whichever is the greater, in the case of 
                        expenditures made by a State in operating such 
                        program for such fiscal year (other than for 
                        costs described in clause (i)).
            ``(2) Form of payment.--With respect to the amount for 
        which payment is made to a State under paragraph (1)(A), the 
        State's expenditures for the costs of operating such program 
        may be in cash or in kind, fairly evaluated.
            ``(3) Use of funds.--A State may use amounts allocated 
        under this subsection for all costs deemed necessary to assist 
        program clients obtain and retain jobs, including emergency day 
        care assistance or sick day care assistance, uniforms, 
        eyeglasses, transportation, wage subsidies, and other 
        employment-related special needs, as defined by the State. Such 
        assistance may be provided through contract with community-
        based family resource programs under title II of the Child 
        Abuse Prevention and Treatment Act (42 U.S.C. 5116 et seq.).''.
    (b) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendment made by subsection (a) shall be 
        effective with respect to calendar quarters beginning on or 
        after October 1, 1996.
            (2) Special rule.--In the case of a State that the 
        Secretary of Health and Human Services determines requires 
        State legislation (other than legislation appropriating funds) 
        in order to meet the requirements imposed by the amendment made 
        by subsection (a), the State shall not be regarded as failing 
        to comply with the requirements of such amendment before 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 enactment of this Act. For 
        purposes of this paragraph, in the case of a State that has a 
        2-year legislative session, each year of the session shall be 
        treated as a separate regular session of the State legislature.
            (3) State option to accelerate applicability.--If a State 
        formally notifies the Secretary of Health and Human Services 
        that the State desires to accelerate the applicability to the 
        State of the amendment made by subsection (a), the amendment 
        shall apply to the State on and after such earlier date as the 
        State may select.
            (4) Authority of the secretary of health and human services 
        to delay applicability to a state.--If a State formally 
        notifies the Secretary of Health and Human Services that the 
        State desires to delay the applicability to the State of the 
        amendment made by subsection (a), the amendment shall apply to 
        the State on and after any later date agreed upon by the 
        Secretary and the State.

SEC. 202. CONSOLIDATION AND STREAMLINING OF SERVICES.

    (a) In General.--Section 407, as added by section 101(a), is 
amended by adding at the end the following new subsections:
    ``(i) Changing the Welfare Bureaucracy.--
            ``(1) In general.--The State plan may describe the State's 
        efforts to streamline and consolidate activities to simplify 
        the process of applying for a range of Federal and State 
        assistance programs, including the use of--
                    ``(A) `one-stop offices' to coordinate the 
                application process for individuals and families with 
                low-incomes or limited resources and to ensure that 
                applicants and recipients receive the information they 
                need with regard to such range of programs; and
                    ``(B) forms which are easy to read and understand 
                or easily explained by State agency employees.
            ``(2) Use of incentives.--The State plan may require the 
        use of incentives (including Work First program funds) to 
        change the culture of each State agency office with 
        responsibilities under the State plan, to improve the 
        performance of employees, and to ensure that the objective of 
        each employee of each such State office is to find unsubsidized 
        paid employment for each program client as efficiently and as 
        quickly as possible.
            ``(3) Caseworker training and retraining.--The State plan 
        may provide such training to caseworkers and related personnel 
        as may be necessary to ensure successful job placements that 
        result in full-time public or private employment (outside the 
        State agencies with responsibilities under part A) for program 
        clients.
    ``(j) Coordination of Services.--The State plan shall provide that 
the State agency may--
            ``(1) establish convenient locations in each community at 
        which individuals and families with low-incomes or limited 
        resources may apply for and (if appropriate) receive, directly 
        or through referral to
         the appropriate provider, in appropriate languages and in a 
culturally sensitive manner--
                    ``(A) temporary employment assistance under the 
                State plan;
                    ``(B) employment and education counseling;
                    ``(C) job placement;
                    ``(D) child care;
                    ``(E) health care;
                    ``(F) transportation assistance;
                    ``(G) housing assistance;
                    ``(H) child support services;
                    ``(I) assistance under the National and Community 
                Service Act of 1990 and the Domestic Volunteer Service 
                Act of 1973;
                    ``(J) unemployment insurance;
                    ``(K) assistance under the Carl D. Perkins 
                Vocational and Applied Technology Education Act;
                    ``(L) assistance under the School-to-Work 
                Opportunities Act of 1994;
                    ``(M) assistance under Federal student loan 
                programs;
                    ``(N) assistance under the Job Training Partnership 
                Act; and
                    ``(O) other types of counseling and support 
                services; and
            ``(2) assign to each recipient of assistance under the 
        State plan, and to each applicant for such assistance, a case 
        manager who--
                    ``(A) is knowledgeable about community resources;
                    ``(B) is qualified to refer the applicant or 
                recipient to appropriate employment programs or 
                education and training programs, or both, and needed 
                health and social services; and
                    ``(C) is required to coordinate the provision of 
                benefits and services by the State to the applicant or 
                recipient, until the applicant or recipient is no 
                longer eligible for--
                            ``(i) assistance under the State plan;
                            ``(ii) child care guaranteed by the State 
                        in accordance with section 405(b); and
                            ``(iii) medical assistance under the State 
                        plan approved under title XIX.''.
    (b) Technical Assistance.--The Secretary of Health and Human 
Services shall provide technical assistance and training to States to 
assist the States in implementing effective management practices and 
strategies in order to make the operation of State offices described in 
section 407(i) of the Social Security Act (as added by subsection (a)) 
efficient and effective.

SEC. 203. JOB CREATION.

    (a) Grants to Community-Based Organizations.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this section referred to as the ``Secretary'') may make 
        grants in accordance with this subsection using funds described 
        in paragraph (2), and, to the extent allowed by the States, 
        Work First funds under part F of title IV of the Social 
        Security Act, to community-based organizations that move 
        clients of temporary employment assistance under a State plan 
        approved under part A of title IV of the Social Security Act or 
        under other public assistance programs into private sector 
        work.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $25,000,000 for 
        fiscal year 1996 and $50,000,000 for fiscal years 1997, 1998, 
        1999, 2000, 2001, and 2002.
            (3) Eligible organizations.--The Secretary shall award 
        grants to community-based organizations that--
                    (A) may receive at least 5 percent of their funding 
                from local government sources; and
                    (B) move clients referred to in paragraph (1) in 
                the direction of unsubsidized private employment by 
                integrating and co-locating at least 5 of the following 
                services--
                            (i) case management;
                            (ii) job training;
                            (iii) child care;
                            (iv) housing;
                            (v) health care services;
                            (vi) nutrition programs;
                            (vii) life skills training; and
                            (viii) parenting skills.
            (4) Awarding of grants.--
                    (A) In general.--The Secretary shall award grants 
                based on the quality of applications, subject to 
                subparagraphs (B) and (C).
                    (B) Preference in awarding grants.--In awarding 
                grants under this subsection, the Secretary shall give 
                preference to organizations which receive more than 50 
                percent of their funding from State government, local 
                government or private sources.
                    (C) Distribution of grant.--The Secretary shall 
                award at least 1 grant to each State from which the 
                Secretary received an application.
                    (D) Limitation on size of grant.--The Secretary 
                shall not award any grants under this subsection of 
                more than $1,000,000.
            (5) Issuance of regulations.--Not less than 6 months after 
        the date of the enactment of this subsection, the Secretary 
        shall prescribe such regulations as may be necessary to 
        implement this subsection.
    (b) Grants To Expand the Number of Job Opportunities Available to 
Certain Low-Income Individuals.--
            (1) In general.--The Secretary shall enter into agreements 
        with nonprofit organizations (including community development 
        corporations) submitting applications under this subsection for 
        the purpose of conducting projects in accordance with paragraph 
        (2) and funded under section 495(a)(5) to create employment 
        opportunities for certain low-income individuals.
            (2) Nature of project.--
                    (A) In general.--Each nonprofit organization 
                conducting a project under this subsection shall 
                provide technical and financial assistance to private 
                employers in the community to assist such employers in 
                creating employment and business opportunities for 
                those individuals eligible to participate in the 
                projects as described in this paragraph.
                    (B) Nonprofit organizations.--For purposes of this 
                subsection, a nonprofit organization is any 
                organization (including a community development 
                corporation) exempt from taxation under section 501(a) 
                of the Internal Revenue Code of 1986 by reason of 
                paragraph (3) or (4) of section 501(c) of such Code.
                    (C) Eligible low-income individuals.--For purposes 
                of this subsection, a low-income individual eligible to 
                participate in a project conducted under this 
                subsection is any individual eligible to receive 
                temporary employment assistance under part A of title 
                IV of the Social Security Act (as added by section 101 
                of this Act) and any other individual whose income 
                level does not exceed 100 percent of the poverty line 
                (as such term is defined in section 673(2) of the 
                Community Services Block Grant Act (42 U.S.C. 9902(2)), 
                including any revision required by such section).
            (3) Content of applications; selection priority.--
                    (A) Content of applications.--Each nonprofit 
                organization submitting an application under this 
                subsection shall, as part of such application, 
                describe--
                            (i) the technical and financial assistance 
                        that will be made available under the project 
                        conducted under this subsection;
                            (ii) the geographic area to be served by 
                        the project;
                            (iii) the percentage of low-income 
                        individuals (as described in paragraph (2)(C)) 
                        and individuals receiving temporary employment 
                        assistance under title IV of the Social 
                        Security Act (as so added) in the area to be 
                        served by the project; and
                            (iv) unemployment rates in the geographic 
                        areas to be served and (to the extent 
                        practicable) the jobs available and skills 
                        necessary to fill those vacancies in such 
                        areas.
                    (B) Selection priority.--In approving applications 
                under this subsection, the Secretary shall give 
                priority to applications proposing to serve those areas 
                containing the highest percentage of individuals 
                receiving temporary employment assistance under title 
                IV of such Act (as so added).
            (4) Administration.--Each nonprofit organization 
        participating in a project conducted under this subsection 
        shall provide assurances in its agreement with the Secretary 
        that the organization has or will have a cooperative 
        relationship with the agency responsible for administering the 
        Work First program (as provided for under part F of title IV of 
        the Social Security Act, as added by section 201 of this Act) 
        in the area served by the project.
                       TITLE III--SUPPORTING WORK

SEC. 301. EXTENSION OF TRANSITIONAL MEDICAID BENEFITS.

    (a) Extension of Medicaid Enrollment for Former Temporary 
Employment Assistance Recipients for 1 Additional Year.--
            (1) In general.--Section 1925(b)(1) (42 U.S.C. 1396r-
        6(b)(1)) is amended by striking the period at the end and 
        inserting the following: ``, and shall provide that the State 
        shall offer to each such family the option of extending 
        coverage under this subsection for an additional 2 succeeding 
        6-month periods in the same manner and under the same 
        conditions as the option of extending coverage under this 
        subsection for the first succeeding 6-month period.''.
            (2) Conforming amendments.--
                    (A) In general.--Section 1925 (42 U.S.C. 1396r-6) 
                is amended--
                            (i) in subsection (b)--
                                    (I) in the heading, by striking 
                                ``Extension'' and inserting 
                                ``Extensions'';
                                    (II) in the heading of paragraph 
                                (1), by striking ``Requirement'' and 
                                inserting ``In general'';
                                    (III) in paragraph (2)(B)(ii)--
                                            (aa) in the heading, by 
                                        striking ``period'' and 
                                        inserting ``periods''; and
                                            (bb) by striking ``in the 
                                        period'' and inserting ``in 
                                        each of the 6-month periods'';
                                    (IV) in paragraph (3)(A), by 
                                striking ``the 6-month period'' and 
                                inserting ``any 6-month period'';
                                    (V) in paragraph (4)(A), by 
                                striking ``the extension period'' and 
                                inserting ``any extension period''; and
                                    (VI) in paragraph (5)(D)(i), by 
                                striking ``is a 3-month period'' and 
                                all that follows and inserting the 
                                following: ``is, with respect to a 
                                particular 6-month additional extension 
                                period provided under this subsection, 
                                a 3-month period beginning with the 
                                first or fourth month of such extension 
                                period.''; and
                            (ii) by striking subsection (f).
                    (B) Family support act.--Section 303(f)(2) of the 
                Family Support Act of 1988 (42 U.S.C. 602 note) is 
                amended--
                            (i) by striking ``(A)''; and
                            (ii) by striking subparagraphs (B) and (C).
    (b) Transitional Eligibility for Medicaid.--Part A of title IV, as 
added by section 101(a) is amended by adding at the end the following 
new section:

``SEC. 417. TRANSITIONAL ELIGIBILITY FOR MEDICAID.

    ``Each needy child, and each relative with whom such a child is 
living (including the spouse of such relative), who becomes ineligible 
for temporary employment assistance as a result (wholly or partly) of 
the collection or increased collection of child or spousal support 
under part D of this title, and who has received such assistance in at 
least 3 of the 6 months immediately preceding the month in which such 
ineligibility begins, shall be deemed to be a recipient of temporary 
employment assistance for purposes of title XIX for an additional 4 
calendar months beginning with the month in which such ineligibility 
begins.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to calendar 
        quarters beginning on or after October 1, 1996, without regard 
        to whether final regulations to carry out such amendments have 
        been promulgated by such date.
            (2) When state legislation is required.--In the case of a 
        State plan for medical assistance under title XIX of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation (other than legislation 
        appropriating funds) in order for the plan to meet the 
        additional requirements imposed by the amendments made by this 
        section, the State plan shall not be regarded as failing to 
        comply with the requirements of such title solely on the basis 
        of its failure to meet these additional requirements before 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.

SEC. 302. CONSOLIDATED CHILD CARE DEVELOPMENT BLOCK GRANT.

    (a) Purpose.--It is the purpose of this section to--
            (1) eliminate program fragmentation and create a seamless 
        system of high quality child care that allows for continuity of 
        care for children as parents move from welfare to work;
            (2) provide for parental choice among high quality child 
        care programs; and
            (3) increase the availability of high quality affordable 
        child care in order to promote self sufficiency and support 
        working families.
    (b) Amendments to Child Care and Development Block Grant Act of 
1990.--
            (1) Appropriations.--Section 658B of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858) is amended 
        to read as follows:

``SEC. 658B. APPROPRIATION.

    ``(a) Authorization of Appropriations of Block Grant Funds.--For 
the purpose of providing child care services for eligible children 
through the awarding of grants to States under this subchapter (other 
than the grants awarded under subsection (b)) by the Secretary, there 
are authorized to be appropriated, $949,000,000 for each of the fiscal 
years 1996 through 2002.
    ``(b) Appropriations of Federal Matching Funds.--For the purpose of 
providing child care services for eligible children through the 
awarding of matching grants to States under section 658J(d) by the 
Secretary, there are authorized to be appropriated and are hereby 
appropriated, $1,155,000,000 for fiscal year 1996, $1,900,000,000 for 
fiscal year 1997, $2,500,000,000 for fiscal year 1998, $3,200,000,000 
for fiscal year 1999, $4,100,000,000 for fiscal year 2000, 
$4,600,000,000 for fiscal year 2001, and $4,900,000,000 for fiscal year 
2002.''.
            (2) Use of funds.--Section 658E(c)(3)(B) of the Child Care 
        and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(3)(B)) is amended--
                    (A) in clause (i), by striking ``with very low 
                family incomes (taking into consideration family 
                size)'' and inserting ``described in clause (ii) (in 
                the order so described)'';
                    (B) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and realigning 
                the margins accordingly;
                    (C) by striking ``Subject'' and inserting the 
                following:
                            ``(i) In general.--Subject''; and
                    (D) by adding at the end the following new clause:
                            ``(ii) Families described.--The families 
                        described in this clause are the following:
                                    ``(I) Families containing an 
                                individual receiving temporary 
                                employment assistance under a State 
                                plan approved under part A of title IV 
                                of the Social Security Act and 
                                participating in job search, work, or 
                                Work First.
                                    ``(II) Families containing an 
                                individual who--
                                            ``(aa) no longer qualifies 
                                        for child care assistance under 
                                        section 405(b) of the Social 
                                        Security Act because such 
                                        individual has ceased to 
                                        receive assistance under the 
                                        temporary employment assistance 
                                        program under part A of title 
                                        IV of the Social Security Act 
                                        as a result of increased hours 
                                        of, or increased income from, 
                                        employment; and
                                            ``(bb) the State determines 
                                        requires such child care 
                                        assistance in order to continue 
                                        such employment (but only for 
                                        the 1-year period beginning on 
                                        the date that the individual no 
                                        longer qualifies for child care 
                                        assistance under section 405(b) 
                                        of such Act, and, at the option 
                                        of the State, for the 
                                        additional 1-year period 
                                        beginning after the conclusion 
                                        of the first 1-year period).
                                    ``(III) Families containing an 
                                individual who--
                                            ``(aa) is not described in 
                                        subclause (I) or (II); and
                                            ``(bb) has an annual income 
                                        for a fiscal year below the 
                                        poverty line.
                                For purposes of item (bb), a State may 
                                opt to provide child care services to 
                                families at or above the poverty line 
                                and below 75 percent of the State 
                                median income but only with respect to 
                                10 percent of the State's grant under 
                                this subchapter or a greater percentage 
                                of the State's grant if such increased 
                                amount is necessary to provide child 
                                care to families who were receiving 
                                such care on the day before the date of 
                                the enactment of the Work First Act of 
                                1995.
            (3) Set-asides for quality and expansion.--Section 
        658E(c)(3) of the Child Care and Development Block Grant Act of 
        1990 (42 U.S.C. 9858c(c)(3))--
                    (A) in subparagraph (C), by striking ``25 percent'' 
                and inserting ``10 percent''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Expansion of child care.--The State shall 
                reserve not less than 10 percent of the amount provided 
                to the State and available for providing services under 
                this subchapter, to provide for the expansion of child 
                care facilities available to support working families 
                residing in the State.''.
            (4) Sliding fee scale.--Section 658E(c)(5) of the Child 
        Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(5)) is amended by inserting ``described in subclauses 
        (II) and (III) of paragraph (3)(B)(ii)'' after ``families''.
            (5) Matching requirement for new funds.--
                    (A) In general.--Section 658J of the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9858h) 
                is amended by adding at the end the following new 
                subsections:
    ``(d) Matching Requirement for Certain New Funds.--
            ``(1) Amount of federal payment.--Subject to paragraph (2), 
        the Secretary shall make quarterly payments to each State that 
        has an application approved under section 658E(d) in an amount 
        equal to the greater of--
                    ``(A) 70 percent; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1905(b)) increased by 10 percentage 
                points,
        of the total amount expended during the quarter under the State 
        plan in excess of the State's quarterly allotment under section 
        658O.
            ``(2) Limitation.--
                    ``(A) In general.--Payments under this subsection 
                to a State for any fiscal year may
                 not exceed the limitation determined under 
subparagraph (B) with respect to the State.
                    ``(B) Limitation determined.--The limitation 
                determined under this subparagraph with respect to a 
                State for any fiscal year is the amount that bears the 
                same ratio to the amount specified in subparagraph (C) 
                as the amount allotted to the State under 658O bears to 
                the amount allotted to all States (after reserving the 
                amount for Indian tribes required under section 
                658O(a)(2)).
                    ``(C) Amount specified.--The amount specified in 
                this subparagraph is the amount appropriated for such 
                fiscal year under section 658B(b) reduced by the amount 
                reserved for Indian tribes under subsection (e).
                    ``(D) Limitation raised.--If the limitation 
                determined under subparagraph (A) with respect to a 
                State for a fiscal year exceeds the amount paid to the 
                State under this subsection for the fiscal year, the 
                limitation determined under this paragraph with respect 
                to the State for the immediately succeeding fiscal year 
                shall be increased by the amount of such excess.
            ``(3) Form of payment.--With respect to the amount for 
        which payment is made to a State under paragraph (1), the 
        State's expenditures for the costs of operating such programs 
        may be in cash or in kind, fairly evaluated.
            ``(4) Method of computation and payment.--The method of 
        computing and paying amounts under paragraph (1) shall be as 
        follows:
                    ``(A) Amount based on estimate.--The Secretary 
                shall, prior to the beginning of each quarter, estimate 
                the amount to be paid to the State for such quarter 
                under paragraph (1), such estimate to be based on--
                            ``(i) a report filed by the State 
                        containing its estimate of the total sum to be 
                        expended in such quarter in accordance with the 
                        provisions of such paragraph and stating the 
                        amount appropriated or made available by the 
                        State and its political subdivisions for such 
                        expenditures in such quarter, and if such 
                        amount is less than the State's proportionate 
                        share of the total sum of such estimated 
                        expenditures, the source or sources from which 
                        the difference is expected to be derived; and
                            ``(ii) such other information as the 
                        Secretary may find necessary.
                    ``(B) Reduction or increase.--The Secretary shall 
                reduce or increase the amount to be paid, as the case 
                may be, by any sum by which the Secretary finds that 
                the estimate for any prior quarter was greater or less 
                than the amount which should have been paid to the 
                State for such quarter, except that such increases or 
                reductions shall not be made to the extent that such 
                sums have been applied to make the amount certified for 
                any prior quarter greater or less than the amount 
                estimated by the Secretary for such prior quarter.
    ``(e) Amounts Reserved for Indian Tribes.--The Secretary shall 
reserve not more than 3 percent of the amount appropriated under 
section 658B(b) in each fiscal year for payments to Indian tribes and 
tribal organizations with applications approved under section 658O(c). 
The amounts reserved under the prior sentence shall be available to 
make grants to or enter into contracts with Indian tribes or tribal 
organizations consistent with section 658O(c) without a requirement of 
matching funds by the Indian tribes or tribal organizations.
    ``(f) Same Treatment as Allotments.--Amounts paid to a State or 
Indian tribe under subsections (d) and (e) shall be subject to the same 
requirements under this subchapter as amounts paid from the allotment 
under section 658O.''.
                    (B) Conforming amendments.--Section 658O of the 
                Child Care and Development Block Grant Act of 1990 (42 
                U.S.C. 9858m) is amended--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), by striking 
                                ``this subchapter'' and inserting 
                                section 658B(a); and
                                    (II) in paragraph (2), by striking 
                                ``section 658B'' and inserting 
                                ``section 658B(a); and
                            (ii) in subsection (b)(1), by striking 
                        ``section 658B'' and inserting ``section 
                        658B(a)''.
            (6) Improving quality.--
                    (A) Increase in required funding.--Section 658G of 
                the Child Care and Development Block Grant Act of 1990 
                (42 U.S.C. 9858e) is amended by striking ``not less 
                than 20 percent'' and inserting ``50 percent''.
                    (B) Quality improvement incentive initiative.--
                Section 658G of the Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9858e) is amended--
                            (i) by striking ``A State'' and inserting 
                        ``(a) In General.--A State''; and
                            (ii) by adding at the end the following new 
                        subsection:
    ``(b) Quality Improvement Incentive Initiative.--
            ``(1) In general.--The Secretary shall establish a child 
        care quality improvement incentive initiative to make funds 
        available to States that demonstrate progress in the 
        implementation of--
                    ``(A) innovative teacher training programs such as 
                the Department of Defense staff development and 
                compensation program for child care personnel; or
                    ``(B) enhanced child care quality standards and 
                licensing and monitoring procedures.
            ``(2) Funding.--From the amounts made available for each 
        fiscal year under subsection (a), the Secretary shall reserve 
        not to exceed $50,000,000 in each such fiscal year to carry out 
        this subsection.''.
            (7) Payments.--Section 658J(a) of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858h) is 
        amended by striking ``Subject to the availability of 
        appropriation, a'' and inserting ``A''.
            (8) Definition of eligible child.--Section 658P(4)(B) of 
        the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858n(4)(B)) is amended to read as follows:
                    ``(B) who is a member of a family described in 
                section 658E(c)(3)(B)(ii); and''.
            (9) Definition of poverty line.--Section 658P of the Child 
        Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n) 
        is amended--
                    (A) by redesignating paragraphs (10) through (14) 
                as paragraphs (11) through (15), respectively; and
                    (B) by inserting after paragraph (9), the following 
                new paragraph:
            ``(10) Poverty line.--The term `poverty line' means the 
        poverty line (as such term is defined in section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2)), 
        including any revision required by such section) that--
                    ``(A) in the case of a family of less than 4 
                individuals, is applicable to a family of the size 
                involved; and
                    ``(B) in the case of a family of 4 or more 
                individuals, is applicable to a family of 4 
                individuals.''.
    (c) Program Repeals.--
            (1) State dependent care grants.--Subchapter E of chapter 8 
        of subtitle A of title VI of the Omnibus Budget Reconciliation 
        Act of 1981 (42 U.S.C. 9871 et seq.) is repealed.
            (2) Child development associate scholarship assistance 
        act.--The Child Development Associate Scholarship Assistance 
        Act of 1985 (42 U.S.C. 10901 et seq.) is repealed.
       TITLE IV--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

SEC. 401. SUPERVISED LIVING ARRANGEMENTS FOR MINORS.

    Section 402(c), as added by section 101(a), is amended by adding at 
the end the following new paragraph:
            ``(7) Supervised living arrangements for minors.--The State 
        plan shall provide that--
                    ``(A) except as provided in subparagraph (B), in 
                the case of any individual who is under age 18 and has 
                never married, and who has a needy child in his or her 
                care (or is pregnant and is eligible for temporary 
                employment assistance under the State plan)--
                            ``(i) such individual may receive such 
                        assistance for the individual and such child 
                        (or for herself in the case of a pregnant 
                        woman) only if such individual and child (or 
                        such pregnant woman) reside in a place of 
                        residence maintained by a parent, legal 
                        guardian, or other adult relative of such 
                        individual as such parent's, guardian's, or 
                        adult relative's own home; and
                            ``(ii) such assistance (where possible) 
                        shall be provided to the parent, legal 
                        guardian, or other adult relative on behalf of 
                        such individual and child; and
                    ``(B)(i) in the case of an individual described in 
                clause (ii)--
                            ``(I) the State agency shall assist such 
                        individual in locating an appropriate adult-
                        supervised supportive living arrangement taking 
                        into consideration the needs and concerns of 
                        the individual, unless the State agency 
                        determines that the individual's current living 
                        arrangement is appropriate, and thereafter 
                        shall require that the individual (and child, 
                        if any) reside in such living arrangement as a 
                        condition of the continued receipt of 
                        assistance under the plan (or in an alternative 
                        appropriate arrangement, should circumstances 
                        change and the current arrangement cease to be 
                        appropriate), or
                            ``(II) if the State agency is unable, after 
                        making diligent efforts, to locate any such 
                        appropriate living arrangement, the State 
                        agency shall provide for comprehensive case 
                        management, monitoring, and other social 
                        services consistent with the best interests of 
                        the individual (and child) while living 
                        independently (as determined by the State 
                        agency); and
                    ``(ii) for purposes of clause (i), an individual is 
                described in this clause if--
                            ``(I) such individual has no parent or 
                        legal guardian of his or her own who is living 
                        and whose whereabouts are known;
                            ``(II) no living parent or legal guardian 
                        of such individual allows the individual to 
                        live in the home of such parent or guardian;
                            ``(III) the State agency determines that 
                        the physical or emotional health of such 
                        individual or any needy child of the individual 
                        would be jeopardized if such individual and 
                        such needy child lived in the same residence 
                        with such individual's own parent or legal 
                        guardian; or
                            ``(IV) the State agency otherwise 
                        determines (in accordance with regulations 
                        issued by the Secretary) that it is in the best 
                        interest of the needy child to waive the 
                        requirement of subparagraph (A) with respect to 
                        such individual.''.

SEC. 402. REINFORCING FAMILIES.

    (a) In General.--Title XX (42 U.S.C. 1397-1397e) is amended by 
adding at the end the following new section:

``SEC. 2008. ADULT-SUPERVISED GROUP HOMES.

    ``(a) Entitlement.--
            ``(1) In general.--In addition to any payment under 
        sections 2002 and 2007, beginning with fiscal year 1996, each 
        State shall be entitled to funds under this section for each 
        fiscal year for the establishment, operation, and support of 
        adult-supervised group homes for custodial parents under age 18 
        (or age 19, at the option of the State) and their children.
            ``(2) Payment to states.--
                    ``(A) In general.--Each State shall be entitled to 
                payment under this section for each fiscal year in an 
                amount equal to its allotment (determined in accordance 
                with subsection (b)) for such fiscal year, to be used 
                by such State for the purposes set forth in paragraph 
                (1).
                    ``(B) Transfers of funds.--The Secretary shall make 
                payments in accordance with section 6503 of title 31, 
                United States Code, to each State from its allotment 
                for use under this title.
                    ``(C) Use.--Payments to a State from its allotment 
                for any fiscal year must be expended by the State in 
                such fiscal year or in the succeeding fiscal year.
                    ``(D) Technical assistance.--A State may use a 
                portion of the amounts described in subparagraph (A) 
                for the purpose of purchasing technical assistance from 
                public or private entities if the State determines that 
                such assistance is required in developing, 
                implementing, or administering the program funded under 
                this section.
            ``(3) Adult-supervised group home.--For purposes of this 
        section, the term `adult-supervised group home' means an entity 
        that provides custodial parents under age 18 (or age 19, at the 
        option of the State) and their children with a supportive and 
        supervised living arrangement in which such parents are 
        required to learn parenting skills, including child 
        development, family budgeting, health and nutrition, and other 
        skills to promote their long-term economic independence and the 
        well-being of their children.
         An adult-supervised group home may also serve as a network 
center for other supportive services that are available in the 
community.
    ``(b) Allotment.--
            ``(1) Certain jurisdictions.--The allotment for any fiscal 
        year to each of the jurisdictions of Puerto Rico, Guam, the 
        Virgin Islands, American Samoa, and the Northern Mariana 
        Islands shall be an amount which bears the same ratio to the 
        amount specified under paragraph (3) as the allotment that the 
        jurisdiction receives under section 2003(a) for the fiscal year 
        bears to the total amount specified for such fiscal year under 
        section 2003(c).
            ``(2) Other states.--The allotment for any fiscal year for 
        each State other than the jurisdictions of Puerto Rico, Guam, 
        the Virgin Islands, American Samoa, and the Northern Mariana 
        Islands shall be an amount which bears the same ratio to--
                    ``(A) the amount specified under paragraph (3), 
                reduced by
                    ``(B) the total amount allotted to those 
                jurisdictions for that fiscal year under paragraph (1),
        as the allotment that the State receives under section 2003(b) 
        for the fiscal year bears to the total amount specified for 
        such fiscal year under section 2003(c).
            ``(3) Amount specified.--The amount specified for purposes 
        of paragraphs (1) and (2) shall be $95,000,000 for fiscal year 
        1996 and each subsequent fiscal year.
    ``(c) Local Involvement.--Each State shall seek local involvement 
from the community in any area in which an adult-supervised group home 
receiving funds pursuant to this section is to be established. In 
determining criteria for targeting funds received under this section, 
each State shall evaluate the community's commitment to the 
establishment and planning of the home.
    ``(d) Limitations on the Use of Funds.--
            ``(1) Construction.--Except as provided in paragraph (2), 
        funds made available under this section may not be used by the 
        State, or any other person with which the State makes 
        arrangements to carry out the purposes of this section, for the 
        purchase or improvement of land, or the purchase, construction, 
        or permanent improvement (other than minor remodeling) of any 
        building or other facility.
            ``(2) Waiver.--The Secretary may waive the limitation 
        contained in paragraph (1) upon the State's request for such a 
        waiver if the Secretary finds that the request describes 
        extraordinary circumstances to justify the waiver and that 
        permitting the waiver will contribute to the State's ability to 
        carry out the purposes of this section.
    ``(e) Treatment of Indian Tribes.--
            ``(1) In general.--An Indian tribe may apply to the 
        Secretary to establish, operate, and support adult-supervised 
        group homes for custodial parents under age 18 (or age 19, at 
        the option of the State) and their children in accordance with 
        an application procedure to be determined by the Secretary. 
        Except as otherwise provided in this subsection, the provisions 
        of this section shall apply to Indian tribes receiving funds 
        under this subsection in the same manner and to the same extent 
        as the other provisions of this section apply to States.
            ``(2) Allotment.--If the Secretary approves an Indian 
        tribe's application, the Secretary shall allot to such tribe 
        for a fiscal year an amount which the Secretary determines is 
        the Indian tribe's fair and equitable share of the amount 
        specified under paragraph (3) for all Indian tribes with 
        applications approved under this subsection (based on allotment 
        factors to be determined by the Secretary). The Secretary shall 
        determine a minimum allotment amount for all Indian tribes with 
        applications approved under this subsection. Each Indian tribe 
        with an application approved under this subsection shall be 
        entitled to such minimum allotment.
            ``(3) Amount specified.--The amount specified under this 
        paragraph for all Indian tribes with applications approved 
        under this subsection is $5,000,000 for fiscal year 1996 and 
        each subsequent fiscal year.
            ``(4) Indian tribe defined.--For purposes of this section, 
        the term `Indian tribe' means any Indian tribe, band, nation, 
        pueblo, or other organized group or community, including any 
        Alaska Native entity which is recognized as eligible for the 
        special programs and services provided by the United States to 
        Indian tribes because of their status as Indians.''.
    (b) Receipt of Payments by Adult-Supervised Group Homes.--Section 
402(c)(7)(A)(ii), as added by section 401(a), is amended by striking 
``or other adult relative'' and inserting ``other adult relative, or 
adult-supervised group home receiving funds under section 2008''.
    (c) Recommendations on Use of Government Surplus Property.--Not 
later than 6 months after the date of the enactment of this Act, after 
consultation with the Secretary of Defense, the Secretary of Housing 
and
 Urban Development, and the Administrator of the General Services 
Administration, the Secretary of Health and Human Services shall submit 
recommendations to the Congress on the extent to which surplus 
properties of the United States Government may be used for the 
establishment of adult-supervised group homes receiving funds under 
section 2008 of the Social Security Act, as added by this section.

SEC. 403. REQUIRED COMPLETION OF HIGH SCHOOL OR OTHER TRAINING FOR 
              TEENAGE PARENTS.

    (a) In General.--Section 403(b)(4), as added by section 101(a), is 
amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by inserting at the end the following new subparagraph:
            ``(B) In the case of a client who is a custodial parent who 
        is under age 18 (or age 19, at the option of the State), has 
        not successfully completed a high-school education (or its 
        equivalent), and is required to participate in the Work First 
        program (including an individual who would otherwise be exempt 
        from participation in the program), provides that--
                    ``(i) such parent participate in--
                            ``(I) educational activities directed 
                        toward the attainment of a high school diploma 
                        or its equivalent on a full-time (as defined by 
                        the educational provider) basis; or
                            ``(II) an alternative educational or 
                        training program on a full-time (as defined by 
                        the provider) basis; and
                    ``(ii) child care be provided in accordance with 
                section 405(b) with respect to the family.''.
    (b) State Option To Provide Additional Incentives and Penalties to 
Encourage Teen Parents to Complete High School and Participate in 
Parenting Activities.--
            (1) State plan.--Section 403(b)(4), as amended by 
        subsection (a), is amended by inserting after subparagraph (B) 
        the following new subparagraph:
            ``(C) At the option of the State, provides that the client 
        who is a custodial parent or pregnant woman who is under age 19 
        (or age 21, at the option of the State) participate in a 
        program of monetary incentives and penalties which--
                    ``(i) may, at the option of the State, require 
                full-time participation by such custodial parent or 
                pregnant woman in secondary school or equivalent 
                educational activities, or participation in a course or 
                program leading to a skills certificate found 
                appropriate by the State agency or parenting education 
                activities (or any combination of such activities and 
                secondary education);
                    ``(ii) shall require that the needs of such 
                custodial parent or pregnant woman be reviewed and the 
                program assure that, either in the initial development 
                or revision of such individual's parent empowerment 
                contract, there will be included a description of the 
                services that will be provided to the client and the 
                way in which the program and service providers will 
                coordinate with the educational or skills training 
                activities in which the client is participating;
                    ``(iii) shall provide monetary incentives (to be 
                treated as assistance under the State plan) for more 
                than minimally acceptable performance of required 
                educational activities;
                    ``(iv) shall provide penalties (which may be those 
                required by subsection (c) or, with the approval of the 
                Secretary, other monetary penalties that the State 
                finds will better achieve the objectives of the 
                program) for less than minimally acceptable performance 
                of required activities;
                    ``(v) shall provide that when a monetary incentive 
                is payable because of the more than minimally 
                acceptable performance of required educational 
                activities by a custodial parent, the incentive be paid 
                directly to such parent, regardless of whether the 
                State agency makes payment of assistance under the 
                State plan directly to such parent; and
                    ``(vi) for purposes of any other Federal or 
                federally-assisted program based on need, shall not 
                consider any monetary incentive paid under this 
                subsection as income in determining a family's 
                eligibility for or amount of benefits under such 
                program, and if assistance is reduced by reason of a 
                penalty under this subparagraph, such other program 
                shall treat the family involved as if no such penalty 
                has been applied.''.

SEC. 404. DRUG TREATMENT AND COUNSELING AS PART OF THE WORK FIRST 
              PROGRAM.

    Section 403(b)(6), as added by section 101(a), is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by inserting at the end the following new subparagraph:
            ``(B) In the case of a client who is a custodial parent and 
        who is under age 18 (or age 19, at the option of the State) 
        (including an individual who would otherwise be exempt from 
        participation in the program), whose contract reflects the need 
        for treatment for substance abuse, requires such individual to 
        participate in substance abuse treatment if appropriate 
        treatment is available.''.

SEC. 405. TARGETING YOUTH AT RISK OF TEENAGE PREGNANCY.

    (a) In General.--Section 406(e), as added by section 101(a), is 
amended to read as follows:
    ``(e) Out-of-Wedlock and Teen Pregnancy Programs.--
            ``(1) Out-of-wedlock pregnancies.--The State plan shall 
        provide for the development of a program to reduce the 
        incidence of out-of-wedlock pregnancies, which may include 
        providing unmarried mothers and unmarried fathers with services 
        which will help them--
                    ``(A) avoid subsequent pregnancies, and
                    ``(B) provide adequate care to their children.
            ``(2) Teen pregnancies.--
                    ``(A) In general.--The State plan shall provide 
                that the State agency may, to the extent it determines 
                resources are available, provide for the operation of 
                projects to reduce teenage pregnancy. Such projects 
                shall be operated by eligible entities that have 
                submitted applications described in subparagraph (C) 
                that have been approved in accordance with subparagraph 
                (D).
                    ``(B) Eligible entities.--For purposes of this 
                paragraph, the term `eligible entity' includes State 
                agencies, local agencies, publicly supported 
                organizations, private nonprofit organizations, and 
                consortia of such entities.
                    ``(C) Applications.--An application described in 
                this subparagraph shall--
                            ``(i) describe the project;
                            ``(ii) include an endorsement of the 
                        project by the chief elected official of the 
                        jurisdiction in which the project is to be 
                        located;
                            ``(iii) demonstrate strong local commitment 
                        and local involvement in the planning and 
                        implementation of the project; and
                            ``(iv) be submitted in such manner and 
                        containing such information as the Secretary 
                        may require.
                    ``(D) Approval.--
                            ``(i) In general.--Subject to clause (ii), 
                        the chief executive officer of a State may 
                        approve an application under this subparagraph 
                        based on selection criteria (to be determined 
                        by the chief executive officer).
                            ``(ii) Preferences.--Preference in 
                        approving a project shall be accorded to be 
                        projects that target--
                                    ``(I) both young men and women;
                                    ``(II) areas with high teenage 
                                pregnancy rates; or
                                    ``(III) areas with a high incidence 
                                of individuals receiving temporary 
                                employment assistance.
                    ``(E) Indian tribes.--
                            ``(i) In general.--An Indian tribe may 
                        apply to the Secretary to provide for the 
                        operation of projects to reduce teenage 
                        pregnancy in accordance with an application 
                        procedure to be determined by the Secretary. 
                        Except as otherwise provided in this 
                        subparagraph, the provisions of this paragraph 
                        shall apply to Indian tribes receiving funds 
                        under this paragraph in the same manner and to 
                        the same extent as the other provisions of this 
                        paragraph apply to States.
                            ``(ii) Limitation.--The Secretary shall 
                        limit the number of applications approved under 
                        this subparagraph to ensure that payments under 
                        section 413(d) to Indian tribes with approved 
                        applications would not result in payments of 
                        less than a minimum payment amount (to be 
                        determined by the Secretary).
                            ``(iii) Indian tribe defined.--For purposes 
                        of this subparagraph, the term `Indian tribe' 
                        means any Indian tribe, band, nation, pueblo, 
                        or other organized group or community, 
                        including any Alaska Native entity which is 
                        recognized as eligible for the special programs 
                        and services provided by the United States to 
                        Indian tribes because of their status as 
                        Indians.
                    ``(F) Project length.--A project conducted under 
                this paragraph shall be conducted for not less than 3 
                years.
                    ``(G) Study.--
                            ``(i) In general.--The Secretary shall 
                        conduct a study in accordance with clause (ii) 
                        to determine the relative effectiveness of the 
                        different approaches for preventing teenage 
                        pregnancy utilized in the projects conducted 
                        under this paragraph.
                            ``(ii) Requirements.--The study required 
                        under clause (i) shall--
                                    ``(I) be based on data gathered 
                                from projects conducted in 5 States 
                                chosen by the Secretary from among the 
                                States in which projects under this 
                                paragraph are operated;
                                    ``(II) use specific outcome 
                                measures (determined by the Secretary) 
                                to test the effectiveness of the 
                                projects;
                                    ``(III) use experimental and 
                                control groups (to the extent possible) 
                                that are composed of a random sample of 
                                participants in the projects; and
                                    ``(IV) be conducted in accordance 
                                with an experimental design determined 
                                by the Secretary to result in a 
                                comparable design among all projects.
                            ``(iii) Interim data.--Each eligible entity 
                        conducting a project under this paragraph shall 
                        provide to the Secretary in such form and with 
                        such frequency as the Secretary requires 
                        interim data from the projects conducted under 
                        this paragraph. The Secretary shall report to 
                        the Congress annually on the progress of such 
                        projects and shall, not later than January 1, 
                        2003, submit to the Congress a final report on 
                        the study required under clause (i).
                            ``(iv) Authorization.--There are authorized 
                        to be appropriated $500,000 for each of fiscal 
                        years 1996 through 2002 for the purpose of 
                        conducting the study required under clause 
                        (i).''.
    (b) Payment.--Section 413, as added by section 101(a), is amended 
by adding at the end the following new subsection:
    ``(d) Funding for Teen Pregnancy Projects.--
            ``(1) In general.--In addition to any payment under 
        subsection (a), each State shall be entitled to payment from 
        the Secretary for each of fiscal years 1996 through 2002 of an 
        amount equal to the lesser of--
                    ``(A) 75 percent of the expenditures by the State 
                in providing for the operation of the projects under 
                section 406(e)(2), and in administering the projects 
                under such section; or
                    ``(B) the limitation determined under paragraph (2) 
                with respect to the State for the fiscal year.
            ``(2) Limitation.--
                    ``(A) In general.--The limitation determined under 
                this paragraph with respect to a State for any fiscal 
                year is the amount that bears the same ratio to 
                $71,250,000 as the population with an income below the 
                poverty line (as such term is defined in section 673(2) 
                of the Community Services Block Grant Act (42 U.S.C. 
                9902(2)), including any revision required by such 
                section) in the State in the second preceding fiscal 
                year bears to such population residing in the United 
                States in the second preceding fiscal year.
                    ``(B) Adjustment.--If the limitation determined 
                under subparagraph (A) with respect to a State for a 
                fiscal year exceeds the amount paid to the State under 
                this subsection for the fiscal year, the limitation 
                determined under this paragraph with respect to the 
                State for the immediately succeeding fiscal year shall 
                be increased by the amount of such excess.
            ``(3) Indian tribes.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this title, for purposes of this 
                subsection, an Indian tribe with an application 
                approved under section 406(e)(2)(E) shall be entitled 
                to payment from the Secretary for each of fiscal years 
                1996 through 2002 of an amount equal to the lesser of--
                            ``(i) 75 percent of the expenditures by the 
                        Indian tribe in providing for the operation of 
                        the projects under section 406(e)(2)(E), and in 
                        administering the projects under such section; 
                        or
                            ``(ii) the limitation determined under 
                        subparagraph (B) with respect to the Indian 
                        tribe for the fiscal year.
                    ``(B) Limitation.--
                            ``(i) In general.--The limitation 
                        determined under this subparagraph with respect 
                        to an Indian tribe for any fiscal year is the 
                        amount that bears the same ratio to $3,750,000 
                        as the population with an income below the 
                        poverty line (as such term is defined in 
                        section 673(2) of the Community Services Block 
                        Grant Act (42 U.S.C. 9902(2)), including any 
                        revision required by such section) in the 
                        Indian tribe in the second preceding fiscal 
                        year bears to such population of all Indian 
                        tribes with applications approved under section 
                        406(e)(2)(E) in the second preceding fiscal 
                        year.
                            ``(ii) Adjustment.--If the limitation 
                        determined under clause (i) with respect to an 
                        Indian tribe for a fiscal year exceeds the 
                        amount paid to the Indian tribe under this 
                        paragraph for the fiscal year, the limitation 
                        determined under this subparagraph with respect 
                        to the Indian tribe for the immediately 
                        succeeding fiscal year shall be increased by 
                        the amount of such excess.
            ``(4) Use of appropriations.--Amounts appropriated for a 
        fiscal year to carry out this part shall be made available for 
        payments under this subsection for such fiscal year.''.

SEC. 406. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

    (a) Establishment.--The Secretary of Education, the Secretary of 
Health and Human Services, and the Chief Executive Officer of the 
Corporation for National and Community Service shall establish a 
national center for the collection and provision of information that 
relates to adolescent pregnancy prevention programs, to be known as the 
``National Clearinghouse on Teenage Pregnancy Prevention Programs''.
    (b) Functions.--The national center established under subsection 
(a) shall serve as a national information and data clearinghouse, and 
as a material development source for adolescent pregnancy prevention 
programs. Such center shall--
            (1) develop and maintain a system for disseminating 
        information on all types of adolescent pregnancy prevention 
        programs and on the state of adolescent pregnancy prevention 
        program development, including information concerning the most 
        effective model programs;
            (2) identify model programs representing the various types 
        of adolescent pregnancy prevention programs;
            (3) develop networks of adolescent pregnancy prevention 
        programs for the purpose of sharing and disseminating 
        information;
            (4) develop technical assistance materials to assist other 
        entities in establishing and improving adolescent pregnancy 
        prevention programs;
            (5) participate in activities designed to encourage and 
        enhance public media campaigns on the issue of adolescent 
        pregnancy; and
            (6) conduct such other activities as the responsible 
        Federal officials find will assist in developing and carrying 
        out programs or activities to reduce adolescent pregnancy.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.

SEC. 407. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall be effective with respect to 
calendar quarters beginning on or after October 1, 1996.
    (b) Special Rule.--In the case of a State that the Secretary of 
Health and Human Services determines requires State legislation (other 
than legislation appropriating funds) in order to meet the additional 
requirements imposed by the amendments made by this title, the State 
shall not be regarded as failing to comply with the requirements of 
such amendments before 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 enactment of this Act. For 
purposes of this subsection, in the case of a State that has a 2-year 
legislative session, each year of the session shall be treated as a 
separate regular session of the State legislature.
            TITLE V--INTERSTATE CHILD SUPPORT RESPONSIBILITY

SEC. 500. SHORT TITLE.

    This title may be cited as the ``Interstate Child Support 
Responsibility Act of 1995''.

    Subtitle A--Improvements to the Child Support Collection System

  PART I--ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV-D PROGRAM 
                                CLIENTS

SEC. 501. STATE OBLIGATION TO PROVIDE PATERNITY ESTABLISHMENT AND CHILD 
              SUPPORT ENFORCEMENT SERVICES.

    (a) State Law Requirements.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Procedures under which--
                    ``(A) every child support order established or 
                modified in the State on or after October 1, 1998, is 
                recorded in the central case registry established in 
                accordance with section 454A(e); and
                    ``(B) child support payments are collected through 
                the centralized collections unit established in 
                accordance with section 454B--
                            ``(i) on and after October 1, 1998, under 
                        each order subject to wage withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, under 
                        each other order required to be recorded in 
                        such central case registry under this paragraph 
                        or section 454A(e), if requested by either 
                        party subject to such order.''.
    (b) 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 such State will undertake to provide 
        appropriate services under this part to--
                    ``(A) each child with respect to whom an assignment 
                is effective under section 402(c), 471(a)(17), or 1912 
                (except in cases in which the State agency determines, 
                in accordance with paragraph (25), that it is against 
                the best interests of the child to do so); and
                    ``(B) each child not described in subparagraph 
                (A)--
                            ``(i) with respect to whom an individual 
                        applies for such services; or
                            ``(ii) on and after October 1, 1998, with 
                        respect to whom a support order is recorded in 
                        the central State case registry established 
                        under section 454A--
                                    ``(I) if application is made for 
                                services under this part; or
                                    ``(II) at the option of the State, 
                                unless such services are declined;'';
            (2) in paragraph (6)--
                    (A) by striking ``(6) provide that'' and all that 
                follows through subparagraph (A) and inserting the 
                following:
            ``(6) provide that--
                    ``(A) services under the State plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (B) in subparagraph (B)--
                            (i) by inserting ``on individuals other 
                        than indiviudals with respect to whom an 
                        assignment under parts A or E or title XIX is 
                        effective (except as provided in section 
                        457(c))'' after ``such services shall be 
                        imposed''; and
                            (ii) by inserting ``but no fees or costs 
                        shall be imposed on any absent or custodial 
                        parent or other individual for inclusion in the 
                        central State registry maintained pursuant to 
                        section 454A(e),'' after ``(as determined by 
                        the State),''; and
                    (C) in each of subparagraphs (B), (C), (D), and 
                (E), by indenting such subparagraph and aligning its 
                left margin with the left margin of subparagraph (A); 
                and
                    (D) in each of subparagraphs (B), (C), and (D), by 
                striking the final comma and inserting a semicolon;
            (3) in paragraph (23)--
                    (A) by striking ``the State will regularly'' and 
                inserting ``the State will--
                    ``(A) regularly'';
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) have a plan for outreach to parents designed 
                to disseminate information about and increase access to 
                child support enforcement services, including plans 
                responding to needs--
                            ``(i) of working parents to obtain such 
                        services without taking time off work; and
                            ``(ii) of parents with limited proficiency 
                        in English for elimination of language barriers 
                        to use of such services; and''; and
            (4)(A) by striking ``and'' at the end of paragraph (23);
            (B) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (C) by inserting after paragraph (24) the following new 
        paragraph:
            ``(25) provide that the State establish procedures for any 
        absent parent owing child support arrearages to enter into a 
        repayment plan with the State, engage in community service, or 
        face imprisonment.''.
    (c) Conforming Amendments.--
            (1) Paternity establishment percentage.--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)''.
            (2) State plan.--Section 454(23)(A) (42 U.S.C. 654(23)(A)), 
        as amended by subsection (b)(3), is amended, effective October 
        1, 1998, by striking ``information as to any application fees 
        for such services and''.
            (3) Procedures to improve enforcement.--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) Definition of overdue support.--Section 466(e) (42 
        U.S.C. 666(e)) is amended by striking ``or (6)''.

SEC. 502. DISTRIBUTION OF PAYMENTS.

    (a) Distributions Through State Child Support Enforcement Agency to 
Former Assistance Recipients.--Section 454(5) (42 U.S.C. 654(5)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking section 402(a)(26) is effective,'' 
                and inserting ``section 403(b)(7)(A) is effective, 
                except as otherwise specifically provided in section 
                464 or 466(a)(3),''; and
                    (B) by striking ``except that'' and all that 
                follows through the semicolon; and
            (2) in subparagraph (B), by striking ``, except'' and all 
        that follows through ``medical assistance''.
    (b) Distribution to a Family Currently Receiving Temporary 
Employment Assistance.--Section 457 (42 U.S.C. 657) is amended--
            (1) by striking subsection (a) and redesignating subsection 
        (b) as subsection (a);
            (2) in subsection (a), as redesignated--
                    (A) in the matter preceding paragraph (2), to read 
                as follows:
    ``(a) In the Case of a Family Receiving TEA.--Amounts collected 
under this part during any month as support of a child who is receiving 
assistance under part A (or a parent or caretaker relative of such a 
child) shall (except in the case of a State exercising the option under 
subsection (b)) be distributed as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(d)(2)(C) shall be taken 
        from each of--
                    ``(A) the amounts received in a month which 
                represent payments for that month; and
                    ``(B) the amounts received in a month which 
                represent payments for a prior month which were made by 
                the absent parent in that prior month;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;'';
                    (B) in paragraph (4), by striking ``or (B)'' and 
                all that follows through the period and inserting ``; 
                then (B) from any remainder, amounts equal to 
                arrearages of such support obligations assigned, 
                pursuant to part A, to any other State or States shall 
                be paid to such other State or States and used to pay 
                any such arrearages (with appropriate reimbursement of 
                the Federal Government to the extent of its 
                participation in the financing); and then (C) any 
                remainder shall be paid to the family.''; and
            (3) by inserting after subsection (a), as redesignated, the 
        following new subsection:
    ``(b) Alternative Distribution in Case of Family Receiving TEA.--In 
the case of a State electing the option under this subsection, amounts 
collected as described in subsection (a) shall be distributed as 
follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(d)(2)(C) shall be taken 
        from each of--
                    ``(A) the amounts received in a month which 
                represent payments for that month; and
                    ``(B) the amounts received in a month which 
                represent payments for a prior month which were made by 
                the absent parent in that prior month;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;
            ``(2) second, from any remainder, amounts equal to the 
        balance of support owed for the current month shall be paid to 
        the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to the State making the collection shall be retained 
        and used by such State to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to any other State or States shall be paid to such 
        other State or States and used to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(5) fifth, any remainder shall be paid to the family.''.
    (c) Distribution to a Family Not Receiving TEA.--Section 457(c) (42 
U.S.C. 657(c)) is amended to read as follows:
    ``(c) Distributions In Case of Family Not Receiving TEA.--Amounts 
collected by a State agency under this part during any month as support 
of a child who is not receiving assistance under part A (or of a parent 
or caretaker relative of such a child) shall (subject to the remaining 
provisions of this section) be distributed as follows:
            ``(1) first, amounts equal to the total of such support 
        owed for such month shall be paid to the family;
            ``(2) second, from any remainder, amounts equal to 
        arrearages of such support obligations for months during which 
        such child did not receive assistance under part A shall be 
        paid to the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to the State 
        making the collection pursuant to part A shall be retained and 
        used by such State to pay any such arrearages (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing); and
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to any other 
        State pursuant to part A shall be paid to such other State or 
        States, and used to pay such arrearages, in the order in which 
        such arrearages accrued (with appropriate reimbursement of the 
        Federal Government to the extent of its participation in the 
        financing).''.
    (d) Distribution to a Child Receiving Assistance Under Title IV-
E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in the matter 
preceding paragraph (1), by striking ``Notwithstanding the preceding 
provisions of this section, amounts'' and inserting the following:
    ``(d) Distributions In Case of a Child Receiving Assistance Under 
Title IV-E.--Amounts''.
    (e) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations under part A of title IV of the Social Security 
Act, establishing standards applicable to States electing the 
alternative formula under section 457(b) of such Act for distribution 
of collections on behalf of families receiving temporary employment 
assistance, designed to minimize irregular monthly payments to such 
families.
    (f) 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).
    (f) Effective dates.--
            (1) In general.--Execpt as otherwise provided in this 
        subsection, the amendments made by this section shall become 
        effective on October 1, 1996.
            (2) Family not receiving tea.--The amendment made by 
        subsection (c) shall become effective on October 1, 1999.
            (3) Special rules.--
                    (A) Applicability.--A State may elect to have the 
                amendments made by this section (other than subsection 
                (c)) become effective only with respect to child 
                support cases beginning on or after October 1, 1996.
                    (B) Delayed implementation.--A State may elect to 
                have the amendments made by this section (other than 
                subsection (c)) become effective on a date later than 
                October 1, 1996, which date shall coincide with the 
                operation of the single statewide automated data 
                processing and information retrieval system required by 
                section 454A of the Social Security Act (as added by 
                section 515(a)(2) of this Act) and the State 
                centralized collection unit required by section 454B of 
                the Social Security Act (as added by section 522(b) of 
                this Act).

SEC. 503. RIGHTS TO NOTIFICATION AND HEARINGS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
502(f), 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;
                    ``(B) individuals applying for or receiving 
                services under this part have access to a fair hearing 
                or other formal complaint procedure that ensures prompt 
                consideration and resolution of complaints (but the 
                resort to such procedure shall not stay the enforcement 
                of any support order); and
                    ``(C) the State may not provide to any noncustodial 
                parent of a child representation relating to the 
                establishment or modification of an order for the 
                payment of child support with respect to that child, 
                unless the State makes provision for such 
                representation outside the State agency;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 504. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 501(b)(4), is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(26) provide that the State will have in effect 
        safeguards applicable to all sensitive and confidential 
        information handled by the State agency 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 on 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 on 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.

              PART II--PROGRAM ADMINISTRATION AND FUNDING

SEC. 511. 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 applicable percent for a quarter for purposes of 
        paragraph (1)(A) is--
                    ``(A) for fiscal years 1996, 1997, and 1998, 66 
                percent,
                    ``(B) for fiscal year 1999, 69 percent,
                    ``(C) for fiscal year 2000, 72 percent, and
                    ``(D) for fiscal year 2001 and succeeding fiscal 
                years, 75 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 the provisions of subsection (a), total 
expenditures for the State program under this part for fiscal year 1999 
and each succeeding fiscal year (excluding 1-time capital expenditures 
for automation), reduced by the percentage specified for such fiscal 
year under subsection (a)(2) shall not be less than such total 
expenditures for fiscal year 1996, reduced by 66 percent.''.

SEC. 512. 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:

                ``incentive adjustments to matching rate

    ``Sec. 458. (a) Incentive Adjustment.--
            ``(1) In general.--In order to encourage and reward State 
        child support enforcement programs which perform in an 
        effective manner, the Federal matching rate for payments to a 
        State under section 455(a)(1)(A), for each fiscal year 
        beginning on or after October 1, 1998, shall be increased by a 
        factor reflecting the sum of the applicable incentive 
        adjustments (if any) determined in accordance with regulations 
        under this section with respect to Statewide paternity 
        establishment and to overall performance in child support 
        enforcement.
            ``(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 States must attain to qualify for 
                        incentive adjustments under this section; and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to States achieving 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 5 percentage points, in 
                                connection with Statewide paternity 
                                establishment; and
                                    ``(II) 10 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 1995, 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 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) Fiscal year subject to incentive adjustment.--The 
        total percentage point increase determined pursuant to this 
        section with respect to a State program in a fiscal year shall 
        apply as an adjustment to the applicable percent under section 
        455(a)(2) for payments to such State for the succeeding fiscal 
        year.
            ``(5) Recycling of incentive adjustment.--A State shall 
        expend in the State program under this part all funds paid to 
        the State by the Federal Government as a result of an incentive 
        adjustment under this section.
    ``(b) Meaning of Terms.--
            ``(1) Statewide paternity establishment percentage.--
                    ``(A) In general.--For purposes of this section, 
                the term `Statewide paternity establishment percentage' 
                means, with respect to a fiscal year, the ratio 
                (expressed as a percentage) of--
                            ``(i) the total number of out-of-wedlock 
                        children in the State under 1 year of age for 
                        whom paternity is established or acknowledged 
                        during the fiscal year, to
                            ``(ii) the total number of children 
                        requiring paternity establishment born in the 
                        State during such fiscal year.
                    ``(B) Alternative measurement.--The Secretary shall 
                develop an alternate method of measurement for the 
                Statewide paternity establishment percentage for any 
                State that does not record the out-of-wedlock status of 
                children on birth certificates.
            ``(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 child 
                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.''.
    (b) Adjustment of Payments Under Part D of Title IV.--Section 
455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section 511(a), is 
amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting a comma; and
            (2) by adding after and below subparagraph (C), flush with 
        the left margin of the paragraph, the following:
``increased by the incentive adjustment factor (if any) determined by 
the Secretary pursuant to section 458.''.
    (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the first place it 
        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''.
    (d) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Overall performance.--Section 452(g)(1) (42 U.S.C. 
        652(g)(1)) is amended 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,''.
            (2) Definition.--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) Modification of requirements.--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 redesignated, by 
                striking ``the percentage of children born out-of-
                wedlock in the State'' and inserting ``the percentage 
                of children in the State who are born out of wedlock or 
                for whom support has not been established''; and
                    (C) in subparagraph (B), as 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.
    (e) Reduction of Payments Under Part D of Title IV.--
            (1) New requirements.--Section 455 (42 U.S.C. 655) is 
        amended--
                    (A) by redesignating subsection (e) as subsection 
                (f); and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e)(1) Notwithstanding any other provision of law, if the 
Secretary finds, with respect to a State program under this part in a 
fiscal year beginning on or after October 1, 1997--
            ``(A)(i) on the basis of data submitted by a State pursuant 
        to section 454(15)(B), that the State program in such fiscal 
        year failed to achieve the IV-D paternity establishment 
        percentage (as defined in section 452(g)(2)(A)) or the 
        appropriate level of overall performance in child support 
        enforcement (as defined in section 458(b)(2)), or to meet other 
        performance measures that may be established by the Secretary, 
        or
            ``(ii) on the basis of an audit or audits of such State 
        data conducted pursuant to section 452(a)(4)(C), that the State 
        data submitted pursuant to section 454(15)(B) is incomplete or 
        unreliable; and
            ``(B) that, with respect to the succeeding fiscal year--
                    ``(i) the State failed to take sufficient 
                corrective action to achieve the appropriate 
                performance levels as described in subparagraph (A)(i) 
                of this paragraph, or
                    ``(ii) the data submitted by the State pursuant to 
                section 454(15)(B) is incomplete or unreliable,
the amounts otherwise payable to the State under this part for quarters 
following the end of such succeeding fiscal year, prior to quarters 
following the end of the first quarter throughout which the State 
program is in compliance with such performance requirement, shall be 
reduced by the percentage specified in paragraph (2).
    ``(2) The reductions required under paragraph (1) shall be--
            ``(A) not less than 3 nor more than 5 percent, or
            ``(B) not less than 5 nor more than 7 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1), or
            ``(C) not less than 7 nor more than 10 percent, if the 
        finding is the third or a subsequent consecutive such finding.
    ``(3) For purposes of this subsection, section 406(b), and section 
452(a)(4), a State which is determined as a result of an audit to have 
submitted incomplete or unreliable data pursuant to section 454(15)(B), 
shall be determined to have submitted adequate data if the Secretary 
determines that the extent of the incompleteness or unreliability of 
the data is of a technical nature which does not adversely affect the 
determination of the level of the State's performance.''.
            (2) Conforming amendments.--Subsections (d)(3)(A), (g)(1), 
        and (g)(3)(A) of section 452 (42 U.S.C. 652) are each amended 
        by striking ``403(h)'' and inserting ``455(e)''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--
                    (A) In general.--The amendments made by subsections 
                (a), (b), and (c) 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 prior to the enactment of this 
                section, shall be effective for purposes of incentive 
                payments to States for fiscal years prior to fiscal 
                year 1999.
            (2) Penalty reductions.--
                    (A) In general.--The amendments made by subsection 
                (d) shall become effective with respect to calendar 
                quarters beginning on and after the date of the 
                enactment of this Act.
                    (B) Reductions.--The amendments made by subsection 
                (e) shall become effective with respect to calendar 
                quarters beginning on and after the date 1 which is 
                year after the date of the enactment of this Act.

SEC. 513. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14)--
                    (A) by striking ``(14)'' and inserting ``(14)(A)''; 
                and
                    (B) by inserting after the semicolon ``and'';
            (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 under this part--
                            ``(i) 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; and
                            ``(ii) under which the State agency will 
                        determine the extent to which such program is 
                        in conformity with applicable requirements with 
                        respect to the operation of State programs 
                        under this part (including the status of 
                        complaints filed under the procedure required 
                        under paragraph (12)(B)); and
                    ``(B) a process of extracting from the State 
                automated data processing system 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 section 452(g) and 458, and determine the amount 
        (if any) of penalty reductions pursuant to section 455(e) to be 
        applied to the State;
            ``(B) review annual reports by State agencies pursuant to 
        section 454(15)(A) on State program conformity with Federal 
        requirements; evaluate any elements of a State program in which 
        significant deficiencies are indicated by such report on the 
        status of complaints under the State procedure under section 
        454(12)(B); and, as appropriate, provide to the State agency 
        comments, recommendations for additional or alternative 
        corrective actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the United States Comptroller General--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                requirements of this part, or of regulations 
                implementing such requirements, 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 
                for the calculations of performance indicators 
                specified in subsection (g) and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program under 
                        this part are being appropriately expended, and 
                        are properly and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments and program 
                        income are carried out correctly and are 
                        properly and 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 on or after the 
date which is 1 year after the enactment of this section.

SEC. 514. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 501(b)(4) and 504(a), is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following:
            ``(27) 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. 515. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) State plan.--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, but not limited to,'' 
                and all that follows and to the 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:

                      ``automated data processing

    ``Sec. 454A. (a) In General.--In order to meet the requirements of 
this section, for purposes of the requirement of section 454(16), a 
State agency 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, and performs such tasks 
with the frequency and in the manner specified in this part or in 
regulations or guidelines of the Secretary.
    ``(b) Program Management.--The automated system required under this 
section shall perform such functions as the Secretary may specify 
relating to management of the program under this part, including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds to carry out such program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements 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 under 
this section, which shall include the following (in addition to such 
other safeguards as the Secretary specifies 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 program responsibilities;
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data; and
                    ``(C) ensure that data obtained or disclosed for a 
                limited program purpose is not used or redisclosed for 
                another, impermissible purpose.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies specified under 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.--The State agency shall 
        have in effect procedures to ensure that all personnel 
        (including State and local agency staff and contractors) who 
        may have access to or be required to use sensitive or 
        confidential program data are fully informed of applicable 
        requirements and penalties, and are adequately trained in 
        security procedures.
            ``(5) Penalties.--The State agency shall have in effect 
        administrative penalties (up to and including dismissal from 
        employment) for unauthorized access to, or disclosure or use 
        of, confidential data.''.
            (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by 
        adding at the end the following new subsection:
    ``(j) The Secretary shall prescribe final regulations for 
implementation of the requirements of section 454A not later than 2 
years after the date of the enactment of this subsection.''.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 504(a)(2) and 514(b)(1), is 
        amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1996, meeting all requirements 
                of this part which were enacted on or before the date 
                of the enactment of the Family Support Act of 1988; and
                    ``(B) by October 1, 1999, meeting all requirements 
                of this part enacted on or before the date of the 
                enactment of the Interstate Child Support 
                Responsibility Act of 1995 (but this provision shall 
                not be construed to alter earlier deadlines specified 
                for elements of such system), 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 452(j);''.
    (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 through ``thereof''; 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 year 1996, 90 percent of so much of State expenditures described 
in paragraph (1)(B) as the Secretary finds are for a system meeting the 
requirements specified in section 454(16), or meeting such requirements 
without regard to subparagraph (D) thereof, but limited to the amount 
approved for the State in the advance planning document of such State 
submitted before May 1, 1995.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 through 2001, the percentage specified in clause (ii) 
of so much of State expenditures described in paragraph (1)(B) as the 
Secretary finds are for a system meeting the requirements specified in 
section 454(16) and 454A.
    ``(ii) The percentage specified in this clause, for purposes of 
clause (i), is the higher of--
            ``(I) 80 percent, or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under paragraph (1)(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. 516. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

    (a) Reporting to Secretary.--Section 452(a) (42 U.S.C. 652(a)) is 
amended in the matter preceding paragraph (1) by striking ``directly''.
    (b) Staffing Studies.--
            (1) Scope.--The Secretary of Health and Human Services (in 
        this subsection referred to as the ``Secretary'') shall, 
        directly or by contract, conduct studies of the staffing of 
        each State child support enforcement program under part D of 
        title IV of the Social Security Act. Such studies shall--
                    (A) include a review of the staffing needs created 
                by requirements for automated data processing, 
                maintenance of a central case registry and centralized 
                collections of child support, and of changes in these 
                needs resulting from changes in such requirements; and
                    (B) examine and report on effective staffing 
                practices used by the States and on recommended 
                staffing procedures.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) not later 
        than October 1, 1997, and may conduct additional studies 
        subsequently at appropriate intervals.
            (3) Report to the congress.--The Secretary shall submit a 
        report to the Congress stating the findings and conclusions of 
        each study conducted under this subsection.

SEC. 517. FUNDING FOR ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 515(a)(3), is 
amended by adding at the end the following new subsection:
    ``(k)(1) There shall be available to the Secretary, from amounts 
appropriated for fiscal year 1996 and each succeeding fiscal year for 
payments to States under this part, the amount specified in paragraph 
(2) for the costs to the Secretary for--
            ``(A) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs (including 
        technical assistance concerning State automated systems);
            ``(B) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part; and
            ``(C) operation of the Federal Parent Locator Service under 
        section 453, to the extent such costs are not recovered through 
        user fees.
    ``(2) The amount specified in this paragraph for a fiscal year is 
the amount equal to a percentage of the reduction in Federal payments 
to States under part A on account of child support (including 
arrearages) collected in the preceding fiscal year on behalf of 
children receiving assistance under such part A in such preceding 
fiscal year (as determined on the basis of the most recent reliable 
data available to the Secretary as of the end of the third calendar 
quarter following the end of such preceding fiscal year), equal to--
            ``(A) 1 percent, for the activities specified in 
        subparagraphs (A) and (B) of paragraph (1); and
            ``(B) 2 percent, for the activities specified in 
        subparagraph (C) of paragraph (1).''.

SEC. 518. DATA COLLECTION AND REPORTS BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) In general.--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 indented 
                clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during such fiscal year to 
                        individuals receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of furnishing such services 
                        to those individuals; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for 
                                assistance under part A during a month 
                                in such fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                same month;''.
            (2) Certain data.--Section 452(a)(10)(C) (42 U.S.C. 
        652(a)(10)(C)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``with the data required under each clause being 
                separately stated for cases'' and all that follows 
                through ``part:'' and inserting ``separately stated for 
                cases where the family of the child is receiving 
                temporary employment assistance (or foster care 
                maintenance payments under part E), or formerly 
                received such assistance or payments and the State is 
                continuing to collect support assigned to it under 
                section 402(c), 471(a)(17), or 1912, and all other 
                cases under this part--'';
                    (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 through the semicolon 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) Use of federal courts.--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) Additional information not necessary.--Section 
        452(a)(10) (42 U.S.C. 652(a)(10)) is amended by striking all 
        that follows subparagraph (I).
    (b) Data Collection and Reporting.--Section 469 (42 U.S.C. 669) is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) The Secretary shall collect and maintain, on a fiscal year 
basis, up-to-date statistics, by State, with respect to services to 
establish paternity and services to establish child support 
obligations, the data specified in subsection (b), separately stated, 
in the case of each such service, with respect to--
            ``(1) families (or needy children) receiving assistance 
        under plans approved under part A (or E); and
            ``(2) families not receiving such assistance.
    ``(b) The data referred to in subsection (a) are--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan under this part in which such 
        service is needed; and
            ``(2) the number of such cases in which the service has 
        been provided.''; and
            (2) in subsection (c), by striking ``(a)(2)'' and inserting 
        ``(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

                   PART III--LOCATE AND CASE TRACKING

SEC. 521. CENTRAL STATE AND CASE REGISTRY.

    Section 454A, as added by section 515(a)(2), is amended by adding 
at the end the following new subsections:
    ``(e) Central Case Registry.--
            ``(1) In general.--The automated system required under this 
        section shall perform the functions, in accordance with the 
        provisions of this subsection, of a single central registry 
        containing records with respect to each case in which services 
        are being provided by the State agency (including, on and after 
        October 1, 1998, each order specified in section 466(a)(12)), 
        using such standardized data elements (such as names, social 
        security numbers or other uniform identification numbers, dates 
        of birth, and case identification numbers), and containing such 
        other information (such as information on case status) as the 
        Secretary may require.
            ``(2) Payment Records.--Each case record in the central 
        registry shall include a record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the support order, and other amounts 
                due or overdue (including arrearages, interest or late 
                payment penalties, and fees);
                    ``(B) all child support and related amounts 
                collected (including such amounts as fees, late payment 
                penalties, and interest on arrearages);
                    ``(C) the distribution of such amounts collected; 
                and
                    ``(D) the birth date of the child for whom the 
                child support order is entered.
            ``(3) Updating and monitoring.--The State agency shall 
        promptly establish and maintain, and regularly monitor, case 
        records in the registry required by this subsection, 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 matches with 
                Federal, State, or local data sources;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Data Matches and Other Disclosures of Information.--The 
automated system required under this section shall have the capacity, 
and be used by the State agency, to extract data at such times, and in 
such standardized format or formats, as may be required by the 
Secretary, and to share and match data with, and receive data from, 
other data bases and data matching services, in order to obtain (or 
provide) information necessary to enable the State agency (or Secretary 
or other State or Federal agencies) to carry out responsibilities under 
this part. Data matching activities of the State agency shall include 
at least the following:
            ``(1) Data bank of child support orders.--Furnishing to the 
        Data Bank of Child Support Orders established under section 
        453(h) (and updating as necessary, with information, including 
        notice of expiration of orders) minimal information specified 
        by the Secretary on each child support case in the central case 
        registry.
            ``(2) Federal parent locator service.--Exchanging data with 
        the Federal Parent Locator Service for the purposes specified 
        in section 453.
            ``(3) TEA and medicaid agencies.--Exchanging data with 
        State agencies (of the State and of other States) administering 
        the programs under part A and title XIX, as necessary for the 
        performance of State agency responsibilities under this part 
        and under such programs.
            ``(4) Intrastate and interstate data matches.--Exchanging 
        data 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. 522. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 501(b)(4), 504(a) and 514(b), is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding after paragraph (27) the following new 
        paragraph:
            ``(28) provide that the State agency, on and after October 
        1, 1998--
                    ``(A) will operate a centralized, automated unit 
                for the collection and disbursement of child support 
                under orders being enforced under this part, in 
                accordance with section 454B; and
                    ``(B) will have sufficient State staff (consisting 
                of State employees), and, at State option, contractors 
                reporting directly to the State agency to monitor and 
                enforce support collections through such centralized 
                unit, including carrying out the automated data 
                processing responsibilities specified in section 
                454A(g) and to impose, as appropriate in particular 
                cases, the administrative enforcement remedies 
                specified in section 466(c)(1).''.
    (b) Establishment of Centralized Collection Unit.--Part D of title 
IV (42 U.S.C. 651-669) is amended by adding after section 454A the 
following new section:

     ``centralized collection and disbursement of support payments

    ``Sec. 454B. (a) In General.--In order to meet the requirement of 
section 454(28), the State agency must operate a single, centralized, 
automated unit for the collection and disbursement of support payments, 
coordinated with the automated data system required under section 454A, 
in accordance with the provisions of this section, which shall be--
            ``(1) operated directly by the State agency (or by 2 or 
        more State agencies under a regional cooperative agreement), or 
        by a single contractor responsible directly to the State 
        agency; and
            ``(2) used for the collection and disbursement (including 
        interstate collection and disbursement) of payments under 
        support orders in all cases being enforced by the State 
        pursuant to section 454(4).
    ``(b) Required Procedures.--The centralized collections 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 State 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 either parent, upon request, timely 
        information on the current status of support payments.''.
    (c) Use of Automated System.--Section 454A, as added by section 
515(a)(2) and as amended by section 521, is amended by adding at the 
end the following new subsection:
    ``(g) Centralized Collection and Distribution of Support 
Payments.--The automated system required under this section shall be 
used, to the maximum extent feasible, to assist and facilitate 
collections and disbursement of support payments through the 
centralized collections unit operated pursuant to section 454B, through 
the performance of functions including at a minimum--
            ``(1) generation of orders and notices to employers (and 
        other debtors) for the withholding of wages (and other 
        income)--
                    ``(A) within 10 working days after receipt from a 
                court, another State, an employer, the Federal Parent 
                Locator Service, or any other source recognized by the 
                State of notice of and the income source subject to 
                such withholding; and
                    ``(B) using uniform formats directed by the 
                Secretary;
            ``(2) ongoing monitoring to promptly identify failures to 
        make timely payment; and
            ``(3) automatic use of enforcement mechanisms (including 
        mechanisms authorized pursuant to section 466(c)) where 
        payments are not timely made.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 523. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) From wages.--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 all child support orders 
        issued (or modified) before October 1, 1996, and which are not 
        otherwise subject to withholding
         under subsection (b), shall become subject to withholding from 
wages as provided in subsection (b) if arrearages occur.''.
            (2) Repeal of certain provisions concerning arrearages.--
        Section 466(a)(8) (42 U.S.C. 666(a)(8)) is repealed.
            (3) Procedures described.--Section 466(b) (42 U.S.C. 
        666(b)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (a)(1)'' and inserting 
                ``subsection (a)(1)(A)'';
                    (B) in paragraph (5), by striking ``a public 
                agency'' and all that follows through the period and 
                inserting ``the State through the centralized 
                collections unit established pursuant to section 454B, 
                in accordance with the requirements of such section 
                454B.'';
                    (C) in paragraph (6)(A)(i)--
                            (i) by inserting ``, in accordance with 
                        timetables established by the Secretary,'' 
                        after ``must be required''; and
                            (ii) by striking ``to the appropriate 
                        agency'' and all that follows through the 
                        period and inserting ``to the State centralized 
                        collections unit within 5 working days after 
                        the date such amount would (but for this 
                        subsection) have been paid or credited to the 
                        employee, for distribution in accordance with 
                        this part.'';
                    (D) in paragraph (6)(A)(ii), by inserting ``be in a 
                standard format prescribed by the Secretary, and'' 
                after ``shall''; and
                    (E) in paragraph (6)(D) to read as follows:
            ``(D) Provision must be made for the imposition of a fine 
        against 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 centralized collections 
                unit in accordance with this subsection.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.
    (c) Definition of Terms.--The Secretary of Health and Human 
Services shall promulgate regulations providing definitions, for 
purposes of part D of title IV of the Social Security Act, for the term 
``income'' and for such other terms relating to income withholding 
under section 466(b) of such Act as the Secretary may find it necessary 
or advisable to define.

SEC. 524. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 523(a)(2), 
is amended by inserting after paragraph (7) the following new 
paragraph:
            ``(8) Procedures ensuring that the State will neither 
        provide funding for, nor use for any purpose (including any 
        purpose unrelated to the purposes of this part), any automated 
        interstate network or system used to locate individuals--
                    ``(A) for purposes relating to the use of motor 
                vehicles; or
                    ``(B) providing information for law enforcement 
                purposes (where child support enforcement agencies are 
                otherwise allowed access by State and Federal law),
        unless all Federal and State agencies administering programs 
        under this part (including the entities established under 
        section 453) have access to information in such system or 
        network to the same extent as any other user of such system or 
        network.''.

SEC. 525. EXPANDED 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 ``information as to the 
        whereabouts'' and all that follows through the period and 
        inserting ``, for the purpose of establishing parentage, 
        establishing, setting the amount of, modifying, or enforcing 
        child support obligations--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(C) to whom such an obligation is owed,
        including such individual's social security number (or 
        numbers), most recent residential address, and the name, 
        address, and employer identification number of such 
        individual's employer; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``social security'' and all that follows 
                through ``absent parent'' and inserting ``information 
                specified in subsection (a)''; and
                    (B) in paragraph (2), by inserting before the 
                period ``, or from any consumer reporting agency (as 
                defined in section 603(f) of the Fair Credit Reporting 
                Act (15 U.S.C. 1681a(f))''; and
            (3) in subsection (e)(1), by inserting before the period 
        ``, or by consumer reporting agencies''.
    (b) Reimbursement for Data From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the fourth sentence by 
inserting before the period ``in an amount which the Secretary 
determines to be reasonable payment for the data exchange (which amount 
shall not include payment for the costs of obtaining, compiling, or 
maintaining the data)''.
    (c) Access to Consumer Reports Under Fair Credit Reporting Act.--
            (1) In general.--Section 608 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681f) is amended--
                    (A) by striking ``, limited to'' and inserting ``to 
                a governmental agency (including the entire consumer 
                report, in the case of a Federal, State, or local 
                agency administering a program under part D of title IV 
                of the Social Security Act, and limited to''; and
                    (B) by striking ``employment, to a governmental 
                agency'' and inserting ``employment, in the case of any 
                other governmental agency)''.
            (2) Reimbursement for reports by state agencies and credit 
        bureaus.--Section 453 (42 U.S.C. 653) is amended by adding at 
        the end the following new subsection:
    ``(g) The Secretary is authorized to reimburse to State agencies 
and consumer credit reporting agencies the costs incurred by such 
entities in furnishing information requested by the Secretary pursuant 
to this section in an amount which the Secretary determines to be 
reasonable payment for the data exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the data).''.
    (d) Disclosure of Tax Return Information.--
            (1) By the secretary of the treasury.--Section 
        6103(l)(6)(A)(ii) of the Internal Revenue Code of 1986 
        (relating to disclosure of return information to Federal, 
        State, and local child support enforcement agencies) is amended 
        by striking ``, but only if'' and all that follows to the 
        period.
            (2) By the social security administration.--Section 
        6103(l)(8) of the Internal Revenue Code of 1986 (relating to 
        disclosure of certain return information by Social Security 
        Administration to State and local child support enforcement 
        agencies) is amended--
                    (A) in subparagraph (A), by striking ``State or 
                local'' and inserting ``Federal, State, or local''; and
                    (B) in subparagraph (C), by inserting ``(including 
                any entity under contract with such agency)'' after 
                ``thereof''.
    (e) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), and 463(e) 
        (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), and 663(e)) are 
        each amended by inserting ``Federal'' before ``Parent'' each 
        place it appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by inserting ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2), is amended by adding at the end the following new 
subsections:
    ``(h) Data Bank of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A and F, and for the other purposes specified in 
        this section, the Secretary shall establish and maintain in the 
        Federal Parent Locator Service an automated registry to be 
        known as the Data Bank of Child Support Orders, which shall 
        contain abstracts of child support orders and other information 
        described in paragraph (2) on each case in each State central 
        case registry maintained pursuant to section 454A(e), as 
        furnished (and regularly updated), pursuant to section 454A(f), 
        by State agencies administering programs under this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1), as specified by the Secretary, shall include 
        sufficient information (including 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 established or modified, or are 
        enforcing or seeking to establish, such an order.
    ``(i) National Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A and F, and for the other purposes specified in 
        this section, the Secretary shall establish and maintain in the 
        Federal Parent Locator Service an automated directory to be 
        known as the National Directory of New Hires, which shall 
        contain the information supplied pursuant to section 
        453A(g)(2).
    ``(2) Entry of data.--Information shall be entered into the data 
base maintained by the National Directory of New Hires within 2 
business days of receipt pursuant to section 453A(g)(2).
    ``(j) Data Matches and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) Transmission of data.--The Secretary shall 
                transmit data on individuals and employers in the 
                registries maintained under this section to the Social 
                Security Administration to the extent necessary for 
                verification in accordance with subparagraph (B).
            ``(B) Verification.--The Commissioner of Social Security 
        shall verify the accuracy of, correct or supply to the extent 
        necessary and feasible, and report to the Secretary, the 
        following information in data supplied by the Secretary 
        pursuant to subparagraph (A):
                    ``(i) the name, social security number, and birth 
                date of each individual; and
                    ``(ii) the employer identification number of each 
                employer.
            ``(2) Child support locator matches.--For the purpose of 
        locating individuals for purposes of paternity establishment 
        and establishment and enforcement of child support, the 
        Secretary shall--
                    ``(A) match data in the National Directory of New 
                Hires against the child support order abstracts in the 
                Data Bank of Child Support Orders not less than every 5 
                working days; and
                    ``(B) report information obtained from a match 
                established under subparagraph (A) to concerned State 
                agencies operating programs under this part not later 
                than 2 working days after such match.
            ``(3) Data matches and disclosures of data in all 
        registries.--
                    ``(A) For title iv program purposes.--The Secretary 
                shall--
                            ``(i) perform matches of data in each 
                        component of the Federal Parent Locator Service 
                        maintained under this section against data in 
                        each other such component (other than the 
                        matches required pursuant to paragraph (1)), 
                        and report information resulting from such 
                        matches to State agencies operating programs 
                        under this part and parts A and F; and
                            ``(ii) disclose data in such registries to 
                        such State agencies,
                to the extent, and with the frequency, that the 
                Secretary determines to be effective in assisting such 
                States to carry out their responsibilities under such 
                programs.
                    ``(B) To social security administration.--The 
                Secretary shall disclose data in the registries 
                maintained under this section to the Social Security 
                Administration--
                            ``(i) for the purpose of determining the 
                        accuracy of payments under the supplemental 
                        security income program under title XVI; or
                            ``(ii) for use in connection with benefits 
                        under title II.
            ``(4) Other disclosures of new hire data.--The Secretary 
        shall disclose data in the National Directory of New Hires--
                    ``(A) to the Secretary of the Treasury for purposes 
                directly connected with--
                            ``(i) the administration of the earned 
                        income tax credit under section 32 of the 
                        Internal Revenue Code of 1986, or the advance 
                        payment of such credit under section 3507 of 
                        such Code; or
                            ``(ii) verification of a claim with respect 
                        to employment in an individual tax return; and
                    ``(B) to State agencies operating employment 
                security and workers compensation programs, for the 
                purpose of assisting such agencies to determine the 
                allowability of claims for benefits under such 
                programs.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, the costs incurred 
        by the Commissioner in performing the verification services 
        specified in subsection (j).
            ``(2) For information furnished to state and federal 
        agencies.--State and Federal agencies receiving data or 
        information from the Secretary pursuant to this section shall 
        reimburse the costs incurred by the Secretary in furnishing 
        such data or information, at rates which the Secretary 
        determines to be reasonable (which rates shall include payment 
        for the costs of obtaining, verifying, maintaining, and 
        matching such data or information).
    ``(l) Restriction on Disclosure and Use.--Data in the Federal 
Parent Locator Service, and information resulting from matches using 
such data, shall not be used or disclosed except as specifically 
provided in this section.
    ``(m) Retention of Data.--Data in the Federal Parent Locator 
Service, and data resulting from matches performed pursuant to this 
section, shall be retained for such period (determined by the 
Secretary) as appropriate for the data uses specified in this section.
    ``(n) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(o) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a component of the Federal Parent Locator Service and disclosed by the 
Secretary in accordance with this section.''.
    (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(16) of 
        the Internal Revenue Code of 1986 (relating to approval of 
        State laws) is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place it appears and inserting 
                ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows through the 
                semicolon 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 the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding after paragraph (9) the following new 
                paragraph:
            ``(10) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary 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. 526. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 501(b)(4), 504(a), 514(b), and 522(a) of this Act, 
is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding after paragraph (28) the following new 
        paragraph:
            ``(29) 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 $250.
            ``(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 5 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 5 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. 527. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 501(a), is amended by adding at the end the 
following new paragraph:
            ``(13) Procedures requiring the recording of social 
        security numbers--
                    ``(A) of both parties on marriage licenses and 
                divorce decrees;
                    ``(B) of both parents, on birth records and child 
                support and paternity orders; and
                    ``(C) on all applications for motor vehicle 
                licenses and professional licenses.''.
    (b) Clarification of Federal Policy.--Section 205(c)(2)(C)(ii) (42 
U.S.C. 405(c)(2)(C)(ii)) is amended by striking the third sentence and 
inserting ``This clause shall not be considered to authorize disclosure 
of such numbers except as provided in the preceding sentence.''.

           PART IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 531. ADOPTION OF UNIFORM STATE LAWS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 501(a) 
and 527(a), is amended by adding at the end the following new 
paragraph:
            ``(14)(A) Procedures under which the State adopts in its 
        entirety (with the modifications and additions specified in 
        this paragraph) not later than January 1, 1997, and uses on and 
        after such date, the Uniform Interstate Family Support Act, as 
        approved by the National Conference of Commissioners on Uniform 
        State Laws in August 1992.
            ``(B) The State law adopted pursuant to subparagraph (A) 
        shall be applied to any case--
                    ``(i) involving an order established or modified in 
                one State and for which a subsequent modification is 
                sought in another State; or
                    ``(ii) in which interstate activity is required to 
                enforce an order.
            ``(C) The State law adopted pursuant to subparagraph (A) of 
        this paragraph may, in lieu of section 501 of the Uniform 
        Interstate Family Support Act described in such subparagraph 
        (A), contain a provision which allows the State to collect and 
        disburse income withholding for multiple income withholding 
        orders and interstate withholding orders in the centralized 
        collections unit described in section 454B.
            ``(D) The State law adopted pursuant to subparagraph (A) of 
        this paragraph shall contain the following provision in lieu of 
        section 611(a)(1) of the Uniform Interstate Family Support Act 
        described in such subparagraph (A):
            ```(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'.
            ``(E) The State law adopted pursuant to subparagraph (A) 
        shall recognize as valid, for purposes of any proceeding 
        subject to such State law, service of process upon persons in 
        the State (and proof of such service) by any means acceptable 
        in another State which is the initiating or responding State in 
        such proceeding.''.

SEC. 532. 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 first 
        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 only 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)''; and
            (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''.

SEC. 533. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 523(b), is amended--
            (1) in subsection (a)(2), in the first sentence, to read as 
        follows: ``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 adding 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 
        (and recognize and enforce the authority of State agencies of 
        other States), 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), to take the following actions relating to 
        establishment or enforcement of orders:
                    ``(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 any 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 an 
                order, and to sanction failure to respond to any such 
                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) To order income withholding in accordance 
                with subsection (a)(1) and (b) of section 466.
                    ``(G) In cases where support is subject to an 
                assignment under section 402(c), 471(a)(17), or 1912, 
                or to a requirement to pay through the centralized 
                collections unit under 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.
                    ``(H) For the purpose of securing overdue support--
                            ``(i) to intercept and seize any periodic 
                        or lump-sum payment to the obligor by or 
                        through a State or local government agency, 
                        including--
                                    ``(I) unemployment compensation, 
                                workers' compensation, and other 
                                benefits;
                                    ``(II) judgments and settlements in 
                                cases under the jurisdiction of the 
                                State or local government; and
                                    ``(III) lottery winnings;
                            ``(ii) to attach and seize assets of the 
                        obligor held by financial institutions;
                            ``(iii) to attach public and private 
                        retirement funds in appropriate cases, as 
                        determined by the Secretary; and
                            ``(iv) to impose liens in accordance with 
                        paragraph (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 restrictions as the State may provide).
                    ``(J) To suspend drivers' licenses of individuals 
                owing past-due support, in accordance with subsection 
                (a)(16).
            ``(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) the parties to any paternity or child 
                        support proceedings are required (subject to 
                        privacy safeguards) to file with the tribunal 
                        before entry of an order, and to update as 
                        appropriate, information on location and 
                        identity (including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and telephone number of employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the same parties, 
                        the tribunal shall be authorized, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain such party's current 
                        location, to deem due process requirements for 
                        notice and service of process to be met, with 
                        respect to such party, by delivery to the most 
                        recent residential or employer address so filed 
                        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 orders issued in such cases have 
                        statewide effect; and
                            ``(ii) in the case of a State in which 
                        orders in such cases are issued by local 
                        jurisdictions, a case may be transferred 
                        between 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) Exceptions From State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting ``(d)(1) Subject 
        to paragraph (2), if''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary shall not grant an exemption from the 
requirements of--
            ``(A) subsection (a)(5) (concerning procedures for 
        paternity establishment);
            ``(B) subsection (a)(10) (concerning modification of 
        orders);
            ``(C) subsection (a)(12) (concerning recording of orders in 
        the central State case registry);
            ``(D) subsection (a)(13) (concerning recording of social 
        security numbers);
            ``(E) subsection (a)(14) (concerning interstate 
        enforcement); or
            ``(F) subsection (c) (concerning expedited procedures), 
        other than paragraph (1)(A) thereof (concerning establishment 
        or modification of support amount).''.
    (c) Automation of State Agency Functions.--Section 454A, as added 
by section 515(a)(2) and as amended by sections 521 and 522(c), is 
amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to implement any expedited administrative procedures required 
under section 466(c).''.

                    PART V--PATERNITY ESTABLISHMENT

SEC. 541. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting ``(B)(i)'';
                    (B) in clause (i), as redesignated, by inserting 
                before the period ``, where such request is supported 
                by a sworn statement--
            ``(I) by such party alleging paternity setting forth facts 
        establishing a reasonable possibility of the requisite sexual 
        contact of the parties; or
            ``(II) by such party denying paternity setting forth facts 
        establishing a reasonable possibility of the nonexistence of 
        sexual contact of the parties;''; and
                    (C) by inserting after clause (i) (as redesignated) 
                the following new clause:
            ``(ii) Procedures which require the State agency, in any 
        case in which such agency orders genetic testing--
                    ``(I) to pay the costs of such tests, subject to 
                recoupment (where the State so elects) from the 
                putative father if paternity is established; and
                    ``(II) to obtain additional testing in any case 
                where an original test result is disputed, upon request 
                and advance payment by the disputing party.'';
            (2) by striking subparagraphs (C), (D), (E), and (F) and 
        inserting the following:
            ``(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 putative father and the mother 
        must be given notice, orally, in writing, and in a language 
        that each can understand, of the alternatives to, the legal 
        consequences of, and the rights (including, if 1 parent is a 
        minor, any rights afforded due to minority status) and 
        responsibilities that arise from, signing the acknowledgment.
            ``(ii) 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) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(iv) The Secretary shall prescribe regulations governing 
        voluntary paternity establishment services offered by hospitals 
        and birth record agencies. 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, 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, voluntary paternity establishment programs of 
        hospitals and birth record agencies.
            ``(D)(i) Procedures under which a signed acknowledgment of 
        paternity is considered a legal finding of paternity.
            ``(ii)(I) Procedures under which 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.
            ``(II) Procedures under which a minor who signs 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--
                    ``(aa) attaining the age of majority; or
                    ``(bb) 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, 
                guardian ad litem, or attorney.
            ``(E) Procedures under which no judicial or administrative 
        proceedings are required or permitted to ratify an unchallenged 
        acknowledgment of paternity.
            ``(F) Procedures requiring--
                    ``(i) that the State admit into evidence, for 
                purposes of establishing paternity, results of any 
                genetic test that is--
                            ``(I) of a type generally acknowledged, by 
                        accreditation bodies designated by the 
                        Secretary, as reliable evidence of paternity; 
                        and
                            ``(II) performed by a laboratory approved 
                        by such an accreditation body;
                    ``(ii) that any objection to genetic testing 
                results must be made in writing not later than a 
                specified number of days before any hearing at which 
                such results may be introduced into evidence (or, at 
                State option, not later than a specified number of days 
                after receipt of such results); and
                    ``(iii) that, if no objection is made, the test 
                results are admissible as evidence of paternity without 
                the need for foundation testimony or other proof of 
                authenticity or accuracy.''; and
            (3) by adding after subparagraph (H) the following new 
        subparagraphs:
            ``(I) Procedures providing that the parties to an action to 
        establish paternity are not entitled to a jury trial.
            ``(J) At the option of the State, 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 and testing on behalf of the child.
            ``(L) At the option of the State, procedures under which 
        the tribunal establishing paternity and support has discretion 
        to waive rights to all or part of amounts owed to the State 
        (but not to the mother) for costs related to pregnancy, 
        childbirth, and genetic testing and for public assistance paid 
        to the family where the father cooperates or acknowledges 
        paternity before or after genetic testing.
            ``(M) Procedures ensuring that the putative father has a 
        reasonable opportunity to initiate a paternity action.''.
    (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. 542. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)), 
as amended by subsections (b)(3) and (c)(2) of section 501 and section 
504(a)(1), is amended by striking ``and'' at the end of subparagraph 
(A), by inserting ``and'' at the end of subparagraph (B), and by adding 
at the end the following new subparagraph:
            ``(C) publicize the availability and encourage the use of 
        procedures for voluntary establishment of paternity and child 
        support through a variety of means, which--
                    ``(i) include distribution of written materials at 
                health care facilities (including hospitals and 
                clinics), and other locations such as schools;
                    ``(ii) may include pre-natal programs to educate 
                expectant couples on individual and joint rights and 
                responsibilities with respect to paternity (and may 
                require all expectant recipients of assistance under 
                part A to participate in such pre-natal programs, as an 
                element of cooperation with efforts to establish 
                paternity and child support);
                    ``(iii) include, with respect to each child 
                discharged from a hospital after birth for whom 
                paternity or child support has not been established, 
                reasonable follow-up efforts, providing--
                            ``(I) in the case of a child for whom 
                        paternity has not been established, information 
                        on the benefits of and procedures for 
                        establishing paternity; and
                            ``(II) in the case of a child for whom 
                        paternity has been established but child 
                        support has not been established, information 
                        on the benefits of and procedures for 
                        establishing a child support order, and an 
                        application for child support services;''.
    (b) Enhanced Federal Matching.--Section 455(a)(1)(C) (42 U.S.C. 
655(a)(1)(C)) is amended--
            (1) by inserting ``(i)'' before ``laboratory costs'', and
            (2) by inserting before the semicolon ``, and (ii) costs of 
        outreach programs designed to encourage voluntary 
        acknowledgment of paternity''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall become effective October 1, 1997.
            (2) Exception.--The amendments made by subsection (b) shall 
        be effective with respect to calendar quarters beginning on and 
        after October 1, 1996.

SEC. 543. COOPERATION REQUIREMENT AND GOOD CAUSE EXCEPTION.

    (a) Child Support Enforcement Requirements.--Section 454 (42 U.S.C. 
654), as amended by sections 501(b)(4), 504(a), 514(b), 522(a), and 
526(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by adding after paragraph (29) the following new 
        paragraph:
            ``(30) provide that the State agency administering the plan 
        under this part--
                    ``(A) will make the determination specified under 
                subparagraph (D), as to whether an individual is 
                cooperating with efforts to establish paternity and 
                secure support (or has good cause not to cooperate with 
                such efforts) for purposes of the requirements of 
                sections 403(b)(7)(B) and 1912;
                    ``(B) will advise individuals, both orally and in 
                writing, of the grounds for good cause exceptions to 
                the requirement to cooperate with such efforts;
                    ``(C) will take the best interests of the child 
                into consideration in making the determination whether 
                such individual has good cause not to cooperate with 
                such efforts;
                    ``(D)(i) will make the initial determination as to 
                whether an individual is cooperating (or has good cause 
                not to cooperate) with efforts to establish paternity 
                within 10 days after such individual is referred to 
                such State agency by the State agency administering the 
                program under part A of this title or part A of title 
                XIX;
                    ``(ii) will make redeterminations as to cooperation 
                or good cause at appropriate intervals; and
                    ``(iii) will promptly notify the individual, and 
                the State agencies administering such programs, of each 
                such determination and redetermination;
                    ``(E) with respect to any child born on or after 
                the date 10 months after the date of the enactment of 
                this paragraph, will not determine (or redetermine) the 
                mother (or other custodial relative) of such child to 
                be cooperating with efforts to establish paternity 
                unless such individual furnishes--
                            ``(i) the name of the putative father (or 
                        fathers); and
                            ``(ii) sufficient additional information to 
                        enable the State agency, if reasonable efforts 
                        were made, to verify the identity of the person 
                        named as the putative father (including such 
                        information as the putative father's present 
                        address, telephone number, date of birth, past 
                        or present place of employment, school 
                        previously or currently attended, and names and 
                        addresses of parents, friends, or relatives 
                        able to provide location information, or other 
                        information that could enable service of 
                        process on such person),
                unless the State agency is satisfied that the mother 
                (or other custodial relative) of such child is 
                cooperating but lacks knowledge of the required 
                information, and
                    ``(F)(i) (in the case of a custodial parent who was 
                initially determined not to be cooperating (or to have 
                good cause not to cooperate) is later determined to be 
                cooperating or to have good cause not to cooperate) 
                will immediately notify the State agencies 
                administering the programs under part A of this title 
                and part A of title XIX that this eligibility condition 
                has been met; and
                    ``(ii) (in the case of a custodial parent was 
                initially determined to be cooperating (or to have good 
                cause not to cooperate)) will not later determine such 
                individual not to be cooperating (or not to have good 
                cause not to cooperate) until such individual has been 
                afforded an opportunity for a hearing.''.
    (b) Medicaid Amendments.--Section 1912(a) (42 U.S.C. 1396k(a)) is 
amended--
            (1) in paragraph (1)(B), by inserting ``(except as provided 
        in paragraph (2))'' after ``to cooperate with the State'';
            (2) in subparagraphs (B) and (C) of paragraph (1) by 
        striking ``, unless'' and all that follows and inserting a 
        semicolon; and
            (3) by redesignating paragraph (2) as paragraph (5), and 
        inserting after paragraph (1) the following new paragraphs:
            ``(2) provide that the State agency will immediately refer 
        each applicant or recipient requiring paternity establishment 
        services to the State agency administering the program under 
        part D of title IV;
            ``(3) provide that an individual will not be required to 
        cooperate with the State, as provided under paragraph (1), if 
        the individual is found to have good cause for refusing to 
        cooperate, as determined in accordance with standards 
        prescribed by the Secretary, which standards shall take into 
        consideration the best interests of the individuals involved--
                    ``(A) to the satisfaction of the State agency 
                administering the program under part D, as determined 
                in accordance with section 454(30), with respect to the 
                requirements to cooperate with efforts to establish 
                paternity and to obtain support (including medical 
                support) from a parent; and
                    ``(B) to the satisfaction of the State agency 
                administering the program under this title, with 
                respect to other requirements to cooperate under 
                paragraph (1);
            ``(4) provide that (except as provided in paragraph (5)) an 
        applicant requiring paternity establishment services (other 
        than an individual eligible for emergency assistance under part 
        A of title IV, or presumptively eligible pursuant to section 
        1920) shall not be eligible for medical assistance under this 
        title until such applicant--
                    ``(i) has furnished to the agency administering the 
                State plan under part D of title IV the information 
                specified in section 454(30)(E); or
                    ``(ii) has been determined by such agency to have 
                good cause not to cooperate; and
            ``(5) provide that the provisions of paragraph (4) shall 
        not apply with respect to an applicant--
                    ``(i) if such agency has not, within 10 days after 
                such individual was referred to such agency, provided 
                the notification required by section 454(30)(D)(iii), 
                until such notification is received); and
                    ``(ii) if such individual appeals a determination 
                that the individual lacks good cause for 
                noncooperation, until after such determination is 
                affirmed after notice and opportunity for a hearing.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to applications filed in or after the first 
calendar quarter beginning 10 months or more after enactment of this 
amendment (or such earlier quarter as the State may select) for 
assistance under part A of title IV or the Social Security Act or for 
medical assistance under title XIX of such Act.

       PART VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 551. 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 of the Social Security Act;
            (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 post-
                secondary 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 non-custodial 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 Majority 
                        Leader of the Senate, and 1 shall be appointed 
                        by the Minority Leader of the Senate;
                            (ii) 2 shall be appointed by the Majority 
                        Leader of the House of Representatives, and 1 
                        shall be appointed by the Minority Leader of 
                        the House of Representatives; and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (e) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (f) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (g) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 552. 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)(A)(i) Procedures under which--
                    ``(I) every 3 years, at the request of either 
                parent subject to a child support order, the State 
                shall review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                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 such guidelines, without a 
                requirement for any other change in circumstances; and
                    ``(II) upon request at any time of either parent 
                subject to a child support order, the State shall 
                review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                section 467(a) based on a substantial change in the 
                circumstances of either such parent.
            ``(ii) Such procedures shall require both parents subject 
        to a child support order to be notified of their rights and 
        responsibilities provided for under clause (i) at the time the 
        order is issued and in the annual information exchange form 
        provided under subparagraph (B).
            ``(B) Procedures under which each child support order 
        issued or modified in the State after the effective date of 
        this subparagraph shall require the parents subject to the 
        order to provide each other with a complete statement of their 
        respective financial condition annually on a form which shall 
        be provided by the State. The Secretary shall establish 
        regulations for the enforcement of such exchange of 
        information.''.
                PART VII--ENFORCEMENT OF SUPPORT ORDERS

SEC. 561. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) In general.--Section 6402(c) of the Internal Revenue 
        Code of 1986 (relating to offset of past-due support against 
        overpayments) is amended--
                    (A) by striking ``The amount'' and inserting
            ``(1) In general.--The amount'';
                    (B) by striking ``paid to the State. A reduction'' 
                and inserting ``paid to the State.
            ``(2) Priorities for offset.--A reduction'';
                    (C) by striking ``shall be applied first''and 
                inserting ``shall be applied (after any reduction under 
                subsection (d) on account of a debt owed to the 
                Department of Education or Department of Health and 
                Human Services with respect to a student loan) first'';
                    (D) by striking ``has been assigned'' and inserting 
                ``has not been assigned''; and
                    (E) by striking ``and shall be applied'' and all 
                that follows and inserting ``and shall thereafter be 
                applied to satisfy any past-due support that has been 
                so assigned.''.
            (2) Conforming amendment.--Section 6402(d)(2) of such Code 
        is amended by striking ``after such overpayment'' and all that 
        follows through ``Social Security Act and'' and inserting ``(A) 
        before such overpayment is reduced pursuant to subsection (c), 
        in the case of a debt owed to the Department of Education or 
        Department of Health and Human Services with respect to a 
        student loan, (B) after such overpayment is reduced pursuant to 
        subsection (c), in the case of any other debt, and (C) in 
        either case,''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--
            (1) In general.--Section 464(a) (42 U.S.C. 664(a)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking 
                        ``which has been assigned to such State 
                        pursuant to section 402(l) or section 
                        471(a)(17)''; and
                            (ii) in the second sentence, by striking 
                        ``in accordance with section 457 (b)(4) or 
                        (d)(3)'' and inserting ``as provided in 
                        paragraph (2)'';
                    (B) in paragraph (2), to read as follows:
            ``(2) The State agency shall distribute amounts paid by the 
        Secretary of the Treasury pursuant to paragraph (1)--
                    ``(A) in accordance with subsection (a)(4) or 
                (d)(3) of section 457, in the case of past-due support 
                assigned to a State pursuant to section 402(c) or 
                section 471(a)(17); 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.'';
                    (C) in paragraph (3)--
                            (i) by striking ``or (2)'' each place it 
                        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) Notices of past-due support.--Section 464(b) (42 U.S.C. 
        664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting ``(b)''; 
                and
                    (B) by striking paragraph (2).
            (3) Definition of past-due support.--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 ``(c) As''; and
                    (B) by striking paragraphs (2) and (3).
    (c) Effective Date.--The amendments made by this section shall 
become effective October 1, 1999.
SEC. 562. 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. 563. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended--
            (1) in the heading, by inserting ``income withholding,'' 
        before ``garnishment'';
            (2) in subsection (a)--
                    (A) by striking ``section 207'' and inserting 
                ``section 207 and section 5301 of title 38, United 
                States Code''; and
                    (B) by striking ``to legal process'' and all that 
                follows through the period and inserting ``to 
                withholding in accordance with State law pursuant to 
                subsections (a)(1) and (b) of section 466 and 
                regulations of the Secretary thereunder, and to any 
                other legal process brought, by a State agency 
                administering a program under this part or by an 
                individual obligee, to enforce the legal obligation of 
                such individual to provide child support or alimony.'';
            (3) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Except as otherwise provided herein, each entity specified in 
subsection (a) shall be subject, with respect to notice to withhold 
income pursuant to subsection (a)(1) or (b) of section 466, or to any 
other order or process to enforce support obligations against an 
individual (if such order or process contains or is accompanied by 
sufficient data to permit prompt identification of the individual and 
the moneys involved), to the same requirements as would apply if such 
entity were a private person.'';
            (4) by striking subsections (c) and (d) and inserting the 
        following new subsections:
    ``(c)(1) The head of each agency subject to the requirements of 
this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process; and
            ``(B) publish--
                    ``(i) in the appendix of such regulations;
                    ``(ii) in each subsequent republication of such 
                regulations; and
                    ``(iii) annually in the Federal Register,
        the designation of such agent or agents, identified by title of 
        position, mailing address, and telephone number.
    ``(2) Whenever an agent designated pursuant to paragraph (1) 
receives notice pursuant to subsection (a)(1) or (b) of section 466, or 
is effectively served with any order, process, or interrogatories, with 
respect to an individual's child support or alimony payment 
obligations, such agent shall--
            ``(A) as soon as possible (but not later than 15 days) 
        thereafter, send written notice of such notice or service 
        (together with a copy thereof) to such individual at his duty 
        station or last-known home address;
            ``(B) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after receipt of a 
        notice pursuant to subsection (a)(1) or (b) of section 466, 
        comply with all applicable provisions of such section 466; and
            ``(C) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after effective service 
        of any other such order, process, or interrogatories, respond 
        thereto.
    ``(d) In the event that a governmental entity 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 the 
        provisions of such section 466(b) and regulations thereunder; 
        and
            ``(3) such moneys as remain after compliance with 
        subparagraphs (A) and (B) shall be available to satisfy any 
        other such processes on a first-come, first-served basis, with 
        any such process being satisfied out of such moneys as remain 
        after the satisfaction of all such processes which have been 
        previously served.'';
            (5) in subsection (f)--
                    (A) by striking ``(f)'' and inserting ``(f)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(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 him in connection with the 
carrying out of such duties.''; and
            (6) by adding at the end the following new subsections:
    ``(g) Authority to promulgate regulations for the implementation of 
the provisions of this section shall, insofar as the provisions of this 
section are applicable to moneys due from (or payable by)--
            ``(1) the executive branch of the Federal Government 
        (including in such branch, for the purposes of this subsection, 
        the territories and possessions of the United States, the 
        United States Postal Service, the Postal Rate Commission, any 
        wholly owned Federal corporation created by an Act of Congress, 
        and the government of the District of Columbia), be vested in 
        the President (or the President's designee);
            ``(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 Chief 
        Justice's designee).
    ``(h) Subject to subsection (i), moneys paid or payable to an 
individual which are considered to be based upon remuneration for 
employment, for purposes of this section--
            ``(1) consist of--
                    ``(A) compensation paid or payable for personal 
                services of such individual, whether such compensation 
                is denominated as wages, salary, commission, bonus, 
                pay, allowances, or otherwise (including severance pay, 
                sick pay, and incentive pay);
                    ``(B) 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 such Secretary to a former 
                        member of the Armed Forces who is in receipt of 
                        retired or retainer pay if such former member 
                        has waived a portion of his retired pay in 
                        order to receive such compensation); and
                    ``(C) worker's compensation benefits paid under 
                Federal or State law; but
            ``(2) do not include any payment--
                    ``(A) by way of reimbursement or otherwise, to 
                defray expenses incurred by such individual in carrying 
                out duties associated with his employment; or
                    ``(B) 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.
    ``(i) In determining the amount of any moneys due from, or payable 
by, the United States to any individual, there shall be excluded 
amounts which--
            ``(1) are owed by such individual to the United States;
            ``(2) 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;
            ``(3) are properly withheld for Federal, State, or local 
        income tax purposes, if the withholding of such amounts is 
        authorized or required by law and if amounts withheld are not 
        greater than would be the case if such individual claimed all 
        the dependents that the individual was entitled to (the 
        withholding of additional amounts pursuant to section 3402(i) 
        of the Internal Revenue Code of 1986 may be permitted only when 
        such individual presents evidence of a tax obligation which 
        supports the additional withholding);
            ``(4) are deducted as health insurance premiums;
            ``(5) are deducted as normal retirement contributions (not 
        including amounts deducted for supplementary coverage); or
            ``(6) are deducted as normal life insurance premiums from 
        salary or other remuneration for employment (not including 
        amounts deducted for supplementary coverage).
    ``(j) For purposes of this section--''.
    (b) Transfer of Subsections.--Subsections (a) through (d) of 
section 462 (42 U.S.C. 662), are transferred and redesignated as 
paragraphs (1) through (4), respectively, of section 459(j) (as added 
by subsection (a)(6)), and the left margin of each of such paragraphs 
(1) through (4) is indented 2 ems to the right of the left margin of 
subsection (j) (as added by subsection (a)(6)).
    (c) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661) 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)'' each place it 
        appears and inserting ``section 459 of the Social Security Act 
        (42 U.S.C. 659)''.
    (d) Military Retired and Retainer Pay.--Section 1408 of title 10, 
United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'';
                            (ii) in subparagraph (C), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end 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 
                State program under part D of title IV of the Social 
                Security Act).'';
                    (B) in paragraph (2), 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--'';
            (2) in subsection (d)--
                    (A) in the heading, by inserting ``(or for benefit 
                of)'' after ``concerned''; and
                    (B) in paragraph (1), in the first sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State central collections unit 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''; and
            (3) by adding at the end the following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving a child 
support order against 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 the 
Social Security Act.''.
    (e) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 564. 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.--Not later than 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.
    (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 462 of the Social Security 
                Act (42 U.S.C. 662).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--Section 1408 of title 10, United States Code, as 
amended by section 563(d)(3), is amended--
            (1) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively;
            (2) 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 or an order of an administrative process established under State 
law 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.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting after the first 
                sentence the following: ``In the case of a spouse or 
                former spouse who, pursuant to section 402(c) of the 
                Social Security Act, assigns to a State the rights of 
                the spouse or former spouse to receive support, the 
                Secretary concerned may make the child support payments 
                referred to in the preceding sentence to that State in 
                amounts consistent with that assignment of rights.''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(6) In the case of a court order or an order of an administrative 
process established under State law 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 or an order of an 
administrative process established under State law 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.''.

SEC. 565. MOTOR VEHICLE LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended--
            (1) by striking ``(4)'' and inserting ``(4)(A)''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) Procedures for placing liens for arrearages of child 
        support on motor vehicle titles of individuals owing such 
        arrearages equal to or exceeding 1 month of support (or other 
        minimum amount set by the State), under which--
                    ``(i) any person owed such arrearages may place 
                such a lien;
                    ``(ii) the State agency administering the program 
                under this part shall systematically place such liens;
                    ``(iii) expedited methods are provided for--
                            ``(I) ascertaining the amount of arrears;
                            ``(II) affording the person owing the 
                        arrears or other titleholder to contest the 
                        amount of arrears or to obtain a release upon 
                        fulfilling the support obligation;
                    ``(iv) such a lien has precedence over all other 
                encumbrances on a vehicle title other than a purchase 
                money security interest; and
                    ``(v) the individual or State agency owed the 
                arrears may execute on, seize, and sell the property in 
                accordance with State law.''.

SEC. 566. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 501(a), 
527(a), and 531, is amended by adding at the end the following new 
paragraph:
            ``(15) Procedures under which--
                    ``(A) the State has in effect--
                            ``(i) the Uniform Fraudulent Conveyance Act 
                        of 1981,
                            ``(ii) the Uniform Fraudulent Transfer Act 
                        of 1984, or
                            ``(iii) 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
                    ``(B) 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--
                            ``(i) seek to void such transfer; or
                            ``(ii) obtain a settlement in the best 
                        interests of the child support creditor.''.

SEC. 567. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 501(a), 
527(a), 531, and 566, is amended by adding at the end the following new 
paragraph:
            ``(16) Procedures under which the State has (and uses in 
        appropriate cases) authority (subject to appropriate due 
        process safeguards) to withhold or suspend, or to restrict the 
        use of driver's licenses and professional and occupational 
        licenses of individuals owing overdue child support or failing, 
        after receiving appropriate notice, to comply with subpoenas or 
        warrants relating to paternity or child support proceedings.''.

SEC. 568. 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 more than 30 days delinquent in the 
        payment of at least $100 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. 569. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF ARREARAGES.

    (a) In General.--Section 466(a)(9) (42 U.S.C. 666(a)(9)) is 
amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by striking ``(9)'' and inserting ``(9)(A)''; and
            (3) by adding at the end the following new subparagraph:
            ``(B) Procedures under which the statute of limitations on 
        any arrearages of child support extends at least until the 
        child owed such support is 30 years of age.''.
    (b) Application of Requirement.--The amendment made by this section 
shall not be interpreted to require any State law to revive any payment 
obligation which had lapsed prior to the effective date of such State 
law.

SEC. 570. CHARGES FOR ARREARAGES.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 501(a), 527(a), 531, 566, and 567, is amended by 
adding at the end the following new paragraph:
            ``(17) Procedures providing for the calculation and 
        collection of interest or penalties for arrearages of child 
        support, and for distribution of such interest or penalties 
        collected for the benefit of the child (except where the right 
        to support has been assigned to the State).''.
    (b) Regulations.--The Secretary of Health and Human Services shall 
establish by regulation a rule to resolve choice of law conflicts 
arising in the implementation of the amendment made by subsection (a).
    (c) Conforming Amendment.--Section 454(21) (42 U.S.C. 654(21)) is 
repealed.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to arrearages accruing on or after October 1, 
1998.

SEC. 571. 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 sections 515(a)(3) and 517, is amended by 
        adding at the end the following new subsection:
    ``(l)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000 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 571(b) of the Interstate Child Support 
Responsibility 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 501(b)(4), 504(a), 514(b), 
        522(a), 526(a), and 543(a) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (29);
                    (B) by striking the period at the end of paragraph 
                (30) and inserting ``; and''; and
                    (C) by adding after paragraph (30) the following 
                new paragraph:
            ``(31) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(l) 
        (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(l) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of 
        $5,000, 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.
SEC. 572. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by sections 501(b)(4), 
504(a), 514(b), 522(a), 526(a), 543(a), and 571(a)(2) of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (30);
            (2) by striking the period at the end of paragraph (31) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (31) the following new 
        paragraph:
            ``(32) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases under the plan.''.
                       PART VIII--MEDICAL SUPPORT

SEC. 581. 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) in clause (ii) by striking the period and inserting a 
        comma; and
            (3) by adding after clause (ii), the following flush left 
        language:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued by an 
                administrative adjudicator and has the force and effect 
                of law under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        become effective on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
                    (A) In general.--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--
                            (i) 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
                            (ii) 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.
                    (B) No failure for compliance with this 
                paragraph.--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.

           PART IX--VISITATION AND SUPPORT ASSURANCE PROJECTS

SEC. 591. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    Part D of title IV is amended by adding at the end the following 
new section:
         ``grants to states for access and visitation programs

    ``Sec. 469A. (a) Purposes; Authorization of Appropriations.--For 
purposes of enabling 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, there 
are authorized to be appropriated $5,000,000 for each of fiscal years 
1996 and 1997, and $10,000,000 for each succeeding fiscal year.
    ``(b) Payments to States.--
            ``(1) In general.--Each State shall be entitled to payment 
        under this section for each fiscal year in an amount equal to 
        its allotment under subsection (c) for such fiscal year, to be 
        used for payment of 90 percent of State expenditures for the 
        purposes specified in subsection (a).
            ``(2) Supplementary use.--Payments under this section shall 
        be used by a State to supplement (and not to substitute for) 
        expenditures by the State, for activities specified in 
        subsection (a), at a level at least equal to the level of such 
        expenditures for fiscal year 1994.
    ``(c) Allotments to States.--
            ``(1) In general.--For purposes of subsection (b), each 
        State shall be entitled (subject to paragraph (2)) to an amount 
        for each fiscal year bearing the same ratio to the amount 
        authorized to be appropriated pursuant to subsection (a) for 
        such 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.--Allotments to States under 
        paragraph (1) shall be adjusted as necessary to ensure that no 
        State is allotted less than $50,000 for fiscal year 1996 or 
        1997, or $100,000 for any succeeding fiscal year.
    ``(d) Federal Administration.--The program under this section shall 
be administered by the Administration for Children and Families.
    ``(e) State Program Administration.--
            ``(1) In general.--Each State may administer the program 
        under this section directly or through grants to or contracts 
        with courts, local public agencies, or nonprofit private 
        entities.
            ``(2) Statewide plan permissible.--State programs under 
        this section may, but need not, be statewide.
            ``(3) Evaluation.--States administering programs under this 
        section shall monitor, evaluate, and report on such programs in 
        accordance with requirements established by the Secretary.''.

SEC. 592. CHILD SUPPORT ASSURANCE DEMONSTRATION PROJECTS

    (a) In General.--In order to encourage States to provide a 
guaranteed minimum level of child support for every eligible child not 
receiving such support, the Secretary of Health and Human Services is 
authorized to allow States to conduct demonstration projects in 1 or 
more political localities for the purpose of establishing or improving 
a system of assured minimum child support payments.
    (b) Submissions by States.--Each State shall provide the Secretary 
of Health and Human Services with a complete description of the 
proposed demonstration project and allow for ongoing and retrospective 
evaluation of the project, providing such data and reports on an annual 
basis as are necessary to accomplish a thorough evaluation of such 
project.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $25,000,000 for each of fiscal years 1996, 1997, and 1998, 
to conduct the demonstration projects and evaluations required under 
this section.

                    Subtitle B--Effect of Enactment

SEC. 595. EFFECTIVE DATES.

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

SEC. 596. SEVERABILITY.

    If any provision of subtitle A or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of subtitle A which can be given 
effect without regard to the invalid provision or application, and to 
this end the provisions of subtitle A shall be severable.
             TITLE VI--SUPPLEMENTAL SECURITY INCOME REFORM

                  Subtitle A--Eligibility Restrictions

SEC. 601. DRUG ADDICTS AND ALCOHOLICS UNDER THE SUPPLEMENTAL SECURITY 
              INCOME PROGRAM.

    (a) Termination of SSI Cash Benefits for Drug Addicts and 
Alcoholics.--Section 1611(e)(3) (42 U.S.C. 1382(e)(3)) is amended--
            (1) by striking ``(B)'' and inserting ``(C)'';
            (2) by striking ``(3)(A) and inserting ``(B)''; and
            (3) by inserting before subparagraph (B) as redesignated by 
        paragraph (2) the following new subparagraph:
    ``(3)(A) No cash benefits shall be payable under this title to any 
individual who is otherwise eligible for benefits under this title by 
reason of disability, if such individual's alcoholism or drug addiction 
is a contributing factor material to the Commissioner's determination 
that such individual is disabled.''.
    (b) Treatment Requirements.--
            (1) Section 1611(e)(3)(B)(i)(I) (42 U.S.C. 
        1382(e)(3)(B)(i)(I)), as redesignated by subsection (a), is 
        amended to read as follows:
    ``(B)(i)(I)(aa) Any individual who would be eligible for cash 
benefits under this title but for the application of subparagraph (A) 
may elect to comply with the provisions of this subparagraph.
    ``(bb) Any individual who is eligible for cash benefits under this 
title by reason of disability (or whose eligibility for such benefits 
is suspended) or is eligible for benefits pursuant to section 1619(b), 
and who was eligible for such benefits by reason of disability, for 
which such individual's alcoholism or drug addiction was a contributing 
factor material to the Commissioner's determination that such 
individual was disabled, for the month preceding the month in which 
section 601 of the Work First Act of 1995 takes effect, shall be 
required to comply with the provisions of this subparagraph.''.
            (2) Section 1611(e)(3)(B)(i)(II) (42 U.S.C. 
        1382(e)(3)(B)(i)(II)), as so redesignated, is amended by 
        striking ``who is required under subclause (I)'' and inserting 
        ``described in division (bb) of subclause (I) who is 
        required''.
            (3) Subclauses (I) and (II) of section 1611(e)(3)(B)(ii) 
        (42 U.S.C. 1382(e)(3)(B)(ii)), as so redesignated, are each 
        amended by striking ``clause (i)'' and inserting ``clause 
        (i)(I)''.
            (4) Section 1611(e)(3)(B) (42 U.S.C. 1382(e)(3)(B)), as so 
        redesignated, is amended by striking clause (v) and by 
        redesignating clause (vi) as clause (v).
            (5) Section 1611(e)(3)(B)(v) (42 U.S.C. 1382(e)(3)(B)(v)), 
        as redesignated by paragraph (4), is amended--
                    (A) in subclause (I), by striking ``who is 
                eligible'' and all that follows through ``is disabled'' 
                and inserting ``described in clause (i)(I)''; and
                    (B) in subclause (V), by striking ``or v''.
            (6) Section 1611(e)(3)(C)(i) (42 U.S.C. 1382(e)(3)(C)(i)), 
        as redesignated by subsection (a), is amended by striking ``who 
        are receiving benefits under this title and who as a condition 
        of such benefits'' and inserting ``described in subparagraph 
        (B)(i)(I)(aa) who elect to undergo treatment; and the 
        monitoring and testing of all individuals described in 
        subparagraph (B)(i)(I)(bb) who''.
            (7) Section 1611(e)(3)(C)(iii)(II)(aa) (42 U.S.C. 
        1382(e)(3)(C)(iii)(II)(aa)), as so redesignated, is amended by 
        striking ``residing in the State'' and all that follows through 
        ``they are disabled'' and inserting ``described in subparagraph 
        (B)(i)(I) residing in the State''.
            (8) Section 1611(e)(3)(C)(iii) (42 U.S.C. 
        1382(e)(3)(C)(iii)), as so redesignated, is amended by adding 
        at the end the following:
    ``(III) The monitoring requirements of subclause (II) shall not 
apply in the case of any individual described in subparagraph 
(B)(i)(I)(aa) who fails to comply with the requirements of subparagraph 
(B).''.
            (9) Section 1611(e)(3) (42 U.S.C. 1382(e)(3)), as amended 
        by subsection (a), is amended by adding at the end the 
        following new subparagraphs:
    ``(D) The Commissioner shall provide appropriate notification to 
each individual subject to the limitation on cash benefits contained in 
subparagraph (A) and the treatment provisions contained in subparagraph 
(B).
    ``(E) The requirements of subparagraph (B) shall cease to apply to 
any individual if the Commissioner determines that such individual no 
longer needs treatment.''.
    (c) Preservation of Medicaid Eligibility.--Section 1634(e) (42 
U.S.C. 1382(e)) is amended--
            (1) by striking ``clause (i) or (v) of section 
        1611(e)(3)(A)'' and inserting ``subparagraph (A) or 
        subparagraph (B)(i)(II) of section 1611(e)(3)''; and
            (2) by adding at the end the following: ``This subsection 
        shall cease to apply to any such person if the Commissioner 
        determines that such person no longer needs treatment.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section 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.--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 this section, 
        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.
               Subtitle B--Benefits for Disabled Children

SEC. 611. DEFINITION AND ELIGIBILITY RULES.

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

SEC. 612. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY 
              REVIEWS.

    (a) Continuing Disability Reviews Relating to Certain Children.--
Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as redesignated by 
section 611(a)(3), is amended--
            (1) by inserting ``(i)'' after ``(H)''; and
            (2) by adding at the end the following new clause:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall review in accordance with paragraph (4) the 
continued eligibility for benefits under this title of each individual 
who has not attained 18 years of age and is eligible for such benefits 
by reason of an impairment (or combination of impairments) which may 
improve (or, which is unlikely to improve, at the option of the 
Commissioner).
    ``(II) A parent or guardian of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this 
title.''.
    (b) Disability Eligibility Redeterminations Required for SSI 
Recipients Who Attain 18 Years of Age.--
            (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
        1382c(a)(3)(H)), as amended by subsection (a), is amended by 
        adding at the end the following new clause:
    ``(iii) If an individual is eligible for benefits under this title 
by reason of disability for the month preceding the month in which the 
individual attains the age of 18 years, the Commissioner shall 
redetermine such eligibility--
            ``(I) during the 1-year period beginning on the 
        individual's 18th birthday; and
            ``(II) by applying the criteria used in determining the 
        initial eligibility for applicants who have attained the age of 
        18 years.
With respect to a redetermination under this clause, paragraph (4) 
shall not apply and such redetermination shall be considered a 
substitute for a review or redetermination otherwise required under any 
other provision of this subparagraph during that 1-year period.''.
            (2) Conforming repeal.--Section 207 of the Social Security 
        Independence and Program Improvements Act of 1994 (42 U.S.C. 
        1382 note; 108 Stat. 1516) is hereby repealed.
    (c) Continuing Disability Review Required for Low Birth Weight 
Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as amended 
by subsections (a) and (b), is amended by adding at the end the 
following new clause:
    ``(iv)(I) Not later than 12 months after the birth of an 
individual, the Commissioner shall review in accordance with paragraph 
(4) the continuing eligibility for benefits under this title by reason 
of disability of such individual whose low birth weight is a 
contributing factor material to the Commissioner's determination that 
the individual is disabled.
    ``(II) A review under subclause (I) shall be considered a 
substitute for a review otherwise required under any other provision of 
this subparagraph during that 12-month period.
    ``(III) A parent or guardian of a recipient whose case is reviewed 
under this clause shall present, at the time of review, evidence 
demonstrating that the recipient is, and has been, receiving treatment, 
to the extent considered medically necessary and available, of the 
condition which was the basis for providing benefits under this 
title.''.
    (d) Medicaid for Children Showing Improvement.--Section 1634 (42 
U.S.C. 1383c) is amended by adding at the end the following new 
subsection:
    ``(f) In the case of any individual who has not attained 18 years 
of age and who has been determined to be ineligible for benefits under 
this title--
            ``(1) because of medical improvement following a continuing 
        disability review under section 1631(a)(3)(H), or
            ``(2) as the result of the application of section 611(b)(2) 
        of the Work First Act of 1995,
such individual shall continue to be considered eligible for such 
benefits for purposes of determining eligibility under title XIX if 
such individual is not otherwise eligible for medical assistance under 
such title and, in the case of an individual described in paragraph 
(1), such assistance is needed to maintain functional gains, and, in 
the case of an individual described in paragraph (2), such assistance 
would be available if such section 611(b)(2) had not been enacted.''.
    (e) 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. 613. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

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

   Subtitle C--Studies Regarding Supplemental Security Income Program

SEC. 621. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

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

``SEC. 1636. ANNUAL REPORT ON PROGRAM.

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

SEC. 622. IMPROVEMENTS TO DISABILITY EVALUATION.

    (a) Request for Comments.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall issue a request for comments in the Federal Register 
        regarding improvements to the disability evaluation and 
        determination procedures for individuals under age 18 to ensure 
        the comprehensive assessment of such individuals, including--
                    (A) additions to conditions which should be 
                presumptively disabling at birth or ages 0 through 3 
                years;
                    (B) specific changes in individual listings in the 
                Listing of Impairments set forth in appendix 1 of 
                subpart P of part 404 of title 20, Code of Federal 
                Regulations;
                    (C) improvements in regulations regarding 
                determinations based on regulations providing for 
                medical and functional equivalence to such Listing of 
                Impairments, and consideration of multiple impairments; 
                and
                    (D) any other changes to the disability 
                determination procedures.
            (2) Review and regulatory action.--The Commissioner of 
        Social Security shall promptly review such comments and issue 
        any regulations implementing any necessary changes not later 
        than 18 months after the date of the enactment of this Act.
SEC. 623. STUDY OF DISABILITY DETERMINATION PROCESS.

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

SEC. 624. STUDY BY GENERAL ACCOUNTING OFFICE.

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

      Subtitle D--National Commission on the Future of Disability

SEC. 631. 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. 632. 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. 633. 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. 634. 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. 635. 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 devices 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 
devices 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. 636. REPORTS.

    (a) Interim Report.--Not later than 1 year prior to the date on 
which the Commission terminates pursuant to section 637, 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. 637. 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 VII--PROVISIONS RELATING TO SPONSORS

SEC. 701. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC ASSISTANCE 
              PROGRAMS.

    (a) Federal and Federally-Assisted Programs.--
            (1) Program eligibility criteria.--
                    (A) Temporary employment assistance.--
                            (i) In general.--Section 402(c) of the 
                        Social Security Act, as added by section 101(a) 
                        and amended by section 401, is amended by 
                        redesignating paragraphs (2) through (7) as 
                        paragraphs (3) through (8), and by inserting 
                        after paragraph (1) the following new 
                        paragraph:
            ``(2) Alien status.--In determining the eligibility of a 
        family for assistance, the State plan shall provide that no 
        assistance shall be furnished to any family member under the 
        plan who is not--
                    ``(A) a citizen or national of the United States, 
                or
                    ``(B) a qualified alien (as defined in section 
                1101(a)(10)), provided that such alien is not 
                disqualified from receiving assistance under the State 
                plan by or pursuant to section 210(f) or 245A(h) of the 
                Immigration and Nationality Act or any other provision 
                of law.''.
                            (ii) Conforming amendment.--Section 
                        402(d)(1) of the Social Security Act, as added 
                        by section 101(a), is amended by striking ``any 
                        individual'' and inserting ``any individual 
                        (including any family member described in 
                        subsection (c)(2))''.
                    (B) Supplemental security income.--Section 
                1614(a)(1)(B)(i) (42 U.S.C. 1382c(a)(1)(B)(i)) is 
                amended to read as follows:
            ``(B)(i) is a resident of the United States, and is either 
        (I) a citizen or national of the United States, or (II) a 
        qualified alien (as defined in section 1101(a)(10)), or''.
                    (C) Medicaid--
                            (i) In general.--Section 1903(v)(1) (42 
                        U.S.C. 1396b(v)(1)) is amended to read as 
                        follows:
    ``(v)(1) Notwithstanding the preceding provisions of this section--
            ``(A) no payment may be made to a State under this section 
        for medical assistance furnished to an individual who is 
        disqualified from receiving such assistance by or pursuant to 
        section 210(f) or 245A(h) of the Immigration and Nationality 
        Act or any other provision of law, and
            ``(B) except as provided in paragraph (2), no such payment 
        may be made for medical assistance furnished to an individual 
        who is not--
                    ``(i) a citizen or national of the United States, 
                or
                    ``(ii) a qualified alien (as defined in section 
                1101(a)(10)).''.
                            (ii) Conforming amendments.--
                                    (I) Section 1903(v)(2) (42 U.S.C. 
                                1396b(v)(2)) is amended by striking 
                                ``paragraph (1)'' and inserting 
                                ``paragraph (1)(B)'', and by striking 
                                ``alien'' each place it appears and 
                                inserting ``individual''.
                                    (II) Section 1902(a) (42 U.S.C. 
                                1396a(a)) is amended in the last 
                                sentence by striking ``alien'' and all 
                                that follows and inserting ``individual 
                                who is not (A) a citizen or national of 
                                the United States, or (B) a qualified 
                                alien (as defined in section 
                                1101(a)(10)) only in accordance with 
                                section 1903(v).''.
                                    (III) Section 1902(b)(3) (42 U.S.C. 
                                1396a(b)(3)) is amended by inserting 
                                ``or national'' after ``citizen''.
            (2) Qualified alien defined.--Section 1101(a) (42 U.S.C. 
        1301(a)) is amended by adding at the end the following new 
        paragraph:
            ``(10) The term `qualified alien' means an alien--
                    ``(A) who is lawfully admitted for permanent 
                residence within the meaning of section 101(a)(20) of 
                the Immigration and Nationality Act;
                    ``(B) who is admitted as a refugee pursuant to 
                section 207 of such Act;
                    ``(C) who is granted asylum pursuant to section 208 
                of such Act;
                    ``(D) whose deportation is withheld pursuant to 
                section 243(h) of such Act;
                    ``(E) whose deportation is suspended pursuant to 
                section 244 of such Act;
                    ``(F) who is granted conditional entry pursuant to 
                section 203(a)(7) of such Act as in effect prior to 
                April 1, 1980;
                    ``(G) who is lawfully admitted for temporary 
                residence pursuant to section 210 or 245A of such Act;
                    ``(H) who is within a class of aliens lawfully 
                present within the United States pursuant to any other 
                provision of such Act, provided that--
                            ``(i) the Attorney General determines that 
                        the continued presence of such class of aliens 
                        serves a humanitarian or other compelling 
                        public interest, and
                            ``(ii) the Secretary determines that such 
                        interest would be further served by treating 
                        each alien within such class as a `qualified 
                        alien' for purposes of this Act; or
                    ``(I) who is the spouse or unmarried child under 21 
                years of age of a citizen of the United States, or the 
                parent of such a citizen if the citizen is 21 years of 
                age or older, and with respect to whom an application 
                for adjustment to lawful permanent residence is 
                pending;
        such status not having changed.''.
            (3) Conforming amendment.--Section 244A(f)(1) of the 
        Immigration and Nationality Act (8 U.S.C. 1254a(f)(1)) is 
        amended by inserting ``and shall not be considered to be a 
        `qualified alien' within the meaning of section 1101(a)(10) of 
        the Social Security Act'' immediately before the semicolon.
    (b) State and Local Programs.--A State or political subdivision 
therein may provide that an alien is not eligible for any program of 
assistance based on need that is furnished by such State or political 
subdivision unless such alien is a ``qualified alien'' within the 
meaning of section 1101(a)(10) of the Social Security Act (as added by 
subsection (a)(2) of this section).
    (c) Effective Date.--
            (1) The amendments made by subsection (a) shall apply with 
        respect to benefits payable on the basis of any application 
        filed after September 30, 1995.
            (2) Subsection (b) shall take effect on October 1, 1995.

SEC. 702. EXTENSION OF DEEMING OF INCOME AND RESOURCES UNDER TEA, SSI, 
              AND FOOD STAMP PROGRAMS.

    (a) In General.--Except as provided in subsections (b) and (c), in 
applying section 1621 of the Social Security Act and section 5(i) of 
the Food Stamp Act of 1977, the period in which each respective section 
otherwise applies with respect to an alien shall be extended through 
the date (if any) on which the alien becomes a citizen of the United 
States under chapter 2 of title III of the Immigration and Nationality 
Act.
    (b) Exclusion.--Notwithstanding sections 414 and 1621 of the Social 
Security Act and section 5(i) of the Food Stamp Act of 1977, the income 
and resources of a sponsor or sponsor's spouse shall not be deemed to 
an alien if--
            (1) the alien--
                    (A) is a veteran (as defined in section 101 of 
                title 38, United States Code) with a discharge 
                characterized as an honorable discharge,
                    (B) is on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) is the spouse or unmarried dependent child of 
                an individual described in subparagraph (A) or (B);
            (2) the alien is the subject of domestic violence or has 
        been battered or subjected to extreme cruelty by a family 
        member in the United States; or
            (3) there has been paid with respect to the self-employment 
        income or employment of the alien, or of a parent or spouse of 
        the alien, taxes under chapter 2 or chapter 21 of the Internal 
        Revenue Code of 1986 in each of 20 different calendar quarters.
    (c) Hold Harmless for Medicaid Eligibility.--Subsection (a) shall 
not apply with respect to determinations of eligibility for benefits 
under part A of title IV of the Social Security Act or under the 
supplemental income security program under title XVI of such Act but 
only insofar as such determinations provide for eligibility for medical 
assistance under title XIX of such Act.
    (d) Effective Date.--This section shall take effect on October 1, 
1995.

SEC. 703. REQUIREMENTS FOR SPONSOR'S AFFIDAVITS OF SUPPORT.

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

           ``requirements for sponsor's affidavit of support

    ``Sec. 213A. (a) Enforceability.--
            ``(1) In general.--No affidavit of support may be accepted 
        by the Attorney General or by any consular officer to establish 
        that an alien is not excludable under section 212(a)(4) unless 
        such affidavit is executed as a contract--
                    ``(A) which, for not more than 5 years after the 
                date the alien last receives any such cash benefit, is 
                legally enforceable against the sponsor by the Federal 
                Government, by a State, or by any political subdivision 
                of a State, providing cash benefits under a public cash 
                assistance program (as defined in subsection (f)(2)); 
                and
                    ``(B) in which the sponsor agrees to submit to the 
                jurisdiction of any Federal or State court for the 
                purpose of actions brought under subsection (e)(2).
            ``(2) Expiration of liability.--Such contract shall only 
        apply with respect to cash benefits described in paragraph 
        (1)(A) provided to an alien before the earliest of the 
        following:
                    ``(A) Citizenship.--The date the alien becomes a 
                citizen of the United States under chapter 2 of title 
                III.
                    ``(B) Veteran.--The first date the alien is a 
                veteran (as defined in section 101 of title 38, United 
                States Code) with a discharge characterized as an 
                honorable discharge.
                    ``(C) Payment of social security taxes.--The first 
                date as of which there has been paid with respect to 
                the self-employment income or employment of the alien, 
                or of a parent or spouse of the alien, taxes under 
                chapter 2 or chapter 21 of the Internal Revenue Code of 
                1986 in each of 20 different calendar quarters.
            ``(3) Nonapplication during certain periods.--Such contract 
        also shall not apply with respect to cash benefits described in 
        paragraph (1)(A) provided during any period in which the alien 
        is--
                    ``(A) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    ``(B) the spouse or unmarried dependent child of an 
                individual described in paragraph (2)(A) or 
                subparagraph (A) of this paragraph;
    ``(b) Forms.--Not later than 90 days after the date of the 
enactment of this section, the Attorney General, in consultation with 
the Secretary of State and the Secretary of Health and Human Services, 
shall formulate an affidavit of support consistent with the provisions 
of this section.
    ``(c) Notification of Change of Address.--
            ``(1) Requirement.--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)(A).
            ``(2) Enforcement.--Any person subject to the requirement 
        of paragraph (1) who fails to satisfy such requirement shall be 
        subject to a civil penalty of--
                    ``(A) not less than $250 or more than $2,000, or
                    ``(B) if such failure occurs with knowledge that 
                the sponsored alien has received any benefit under any 
                means-tested public benefits program, not less than 
                $2,000 or more than $5,000.
    ``(d) Reimbursement of Government Expenses.--
            ``(1) Request for reimbursement.--
                    ``(A) In general.--Upon notification that a 
                sponsored alien has received any cash benefits 
                described in subsection (a)(1)(A), the appropriate 
                Federal, State, or local official shall request 
                reimbursement by the sponsor in the amount of such cash 
                benefits.
                    ``(B) Regulations.--The Attorney General, in 
                consultation with the Secretary of Health and Human 
                Services, shall prescribe such regulations as may be 
                necessary to carry out subparagraph (A).
            ``(2) Initiation of action.--If, not later than 45 days 
        after requesting reimbursement, the appropriate Federal, State, 
        or local agency has not received a response from the sponsor 
        indicating a willingness to commence payments, an action may be 
        brought against the sponsor pursuant to the affidavit of 
        support.
            ``(3) Failure to abide by repayment terms.--If the sponsor 
        fails to abide by the repayment terms established by such 
        agency, the agency may, not later than 60 days after such 
        failure, bring an action against the sponsor pursuant to the 
        affidavit of support.
            ``(4) Limitation on actions.--No cause of action may be 
        brought under this subsection later than 5 years after the date 
        the alien last received any cash benefit described in 
        subsection (a)(1)(A).
    ``(f) Definitions.--For the purposes of this section:
            ``(1) Sponsor.--The term `sponsor' means an individual 
        who--
                    ``(A) is a citizen or national of the United States 
                or an alien who is lawfully admitted to the United 
                States for permanent residence;
                    ``(B) is 18 years of age or over; and
                    ``(C) is domiciled in any State.
            ``(2) Public cash assistance program.--The term `public 
        cash assistance program' means a program of the Federal 
        Government or of a State or political subdivision of a State 
        that provides direct cash assistance for the purpose of income 
        maintenance and in which the eligibility of an individual, 
        household, or family eligibility unit for cash benefits under 
        the program, or the amount of such cash benefits, or both are 
        determined on the basis of income, resources, or financial need 
        of the individual, household, or unit. Such term does not 
        include any program insofar as it provides medical, housing, 
        education, job training, food, or in-kind assistance or social 
        services.''.
    (b) Clerical Amendment.--The table of contents of such Act is 
amended by inserting after the item relating to section 213 the 
following:

``Sec. 213A. Requirements for sponsor's affidavit of support.''.
    (c) Effective Date.--Subsection (a) of section 213A of the 
Immigration and Nationality Act, as added 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 213A.

SEC. 704. EXTENDING REQUIREMENT FOR AFFIDAVITS OF SUPPORT TO FAMILY-
              RELATED AND DIVERSITY IMMIGRANTS.

    (A) In General.--Section 212(a)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1182(a)(4)) is amended to read as follows:
            ``(4) Public charge and affidavits of support.--
                    ``(A) Public charge.--Any alien who, in the opinion 
                of the consular officer at the time of application for 
                a visa, or in the opinion of the Attorney General at 
                the time of application for admission or adjustment of 
                status, is likely at any time to become a public charge 
                is excludable.
                    ``(B) Affidavits of support.--Any immigrant who 
                seeks admission or adjustment of status as any of the 
                following is excludable unless there has been executed 
                with respect to the immigrant an affidavit of support 
                pursuant to section 213A:
                            ``(i) As an immediate relative (under 
                        section 201(b)(2)).
                            ``(ii) As a family-sponsored immigrant 
                        under section 203(a) (or as the spouse or child 
                        under section 203(d) of such an immigrant).
                            ``(iii) As the spouse or child (under 
                        section 203(d)) of an employment-based 
                        immigrant under section 203(b).
                            ``(iv) As a diversity immigrant under 
                        section 203(c) (or as the spouse or child under 
                        section 203(d) of such an immigrant).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to aliens with respect to whom an immigrant visa is issued (or 
adjustment of status is granted) after the date specified by the 
Attorney General under section 703(c).
          TITLE VIII--FOOD STAMP PROGRAM INTEGRITY AND REFORM.

SEC. 801. REFERENCES TO THE FOOD STAMP ACT OF 1977.

    Except as otherwise expressly provided, wherever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Food Stamp Act of 1977 
(7 U.S.C. 2011 et seq.).

SEC. 802. CERTIFICATION PERIOD.

    (a) Definition.--Section 3 (7 U.S.C. 2012(c)) is amended by 
striking subsection (c) and inserting the following:
    ``(c) Certification Period.--The term `certification period' means 
the period specified by the State agency for which a household shall be 
eligible to receive an authorization card, except that the period shall 
be--
            ``(1) not more than 24 months for a household in which all 
        adult members are elderly or disabled members; and
            ``(2) not more than 12 months for another household.''.
    (b) Reporting on Reservations.--Section 6(c)(1)(C) (7 U.S.C. 
2015(c)(1)(C)) is amended--
            (1) in clause (ii), by adding ``and'' at the end;
            (2) in clause (iii), by striking ``; and'' at the end and 
        inserting a period; and
            (3) by striking clause (iv).

SEC. 803. EXPANDED DEFINITION OF COUPON.

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

SEC. 804. TREATMENT OF MINORS.

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

SEC. 805. ADJUSTMENT TO THRIFTY FOOD PLAN.

    The second sentence of section 3(o) (7 U.S.C. 2012(o)) is amended--
            (1) by striking ``shall (1) make'' and inserting the 
        following: ``shall--
            ``(1) make'';
            (2) by striking ``scale, (2) make'' and inserting ``scale;
            ``(2) make'';
            (3) by striking ``Alaska, (3) make'' and inserting the 
        following: ``Alaska;
            ``(3) make''; and
            (4) by striking ``Columbia, (4) through'' and all that 
        follows through the end of the subsection and inserting the 
        following: ``Columbia; and
            ``(4) on October 1, 1995, and each October 1 thereafter, 
        adjust the cost of the diet to reflect the cost of the diet, in 
        the preceding June, and round the result to the nearest lower 
        dollar increment for each household size.''.

SEC. 806. EARNINGS OF CERTAIN HIGH SCHOOL STUDENTS COUNTED AS INCOME.

    Section 5(d)(7) (7 U.S.C. 2014(d)(7)) is amended by striking ``21'' 
and inserting ``18''.

SEC. 807. ENERGY ASSISTANCE COUNTED AS INCOME.

    (a) Limiting Exclusion.--Section 5(d)(11) (7 U.S.C. 2014(d)(11)) is 
amended--
            (1) by striking ``(A) under any Federal law, or (B)''; and
            (2) by inserting before the comma at the end the following: 
        ``, except that no benefits provided under the State program 
        under part A of title IV of the Social Security Act (42 U.S.C. 
        601 et seq.) shall be excluded under this clause''.
    (b) Conforming Amendments.--
            (1) Section 5(e) (7 U.S.C. 2014(e)) is amended by striking 
        sentences nine through twelve.
            (2) Section 5(k)(2) (7 U.S.C. 2014(k)(2)) is amended by 
        striking subparagraph (C) and redesignating subparagraphs (D) 
        through (H) as subparagraphs (C) through (G), respectively.
            (3) Section 5(k) (7 U.S.C. 2014(k)) is amended by adding at 
        the end the following new paragraph:
    ``(4) For purposes of subsection (d)(1), any payments or allowances 
made under any Federal or State law for the purposes of energy 
assistance shall be treated as money payable directly to the 
household.''.
            (4) Section 2605(f) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8634(f)) is amended--
                    (A) in paragraph (1), by striking ``food stamps'';
                    (B) by striking ``(f)(1) Notwithstanding'' and 
                inserting ``(f) Notwithstanding''; and
                    (C) by striking paragraph (2).

SEC. 808. EXCLUSION OF CERTAIN JTPA INCOME.

    Section 5 (7 U.S.C. 2014) is amended--
            (1) in subsection (d)--
                    (A) by striking ``and (16)'' and inserting 
                ``(16)''; and
                    (B) by inserting before the period at the end the 
                following: ``, and (17) income received under the Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.) by a 
                household member who is less than 19 years of age''; 
                and
            (2) in subsection (l), by striking ``under section 
        204(b)(1)(C)'' and all that follows and inserting ``shall be 
        considered earned income for purposes of the food stamp 
        program.''.

SEC. 809. 2-YEAR FREEZE OF STANDARD DEDUCTION.

    The second sentence of section 5(e)(4) (7 U.S.C. 2014(e)(4)) is 
amended by inserting ``, except October 1, 1995, and October 1, 1996'' 
after ``thereafter''.

SEC. 810. ELIMINATION OF HOUSEHOLD ENTITLEMENT TO SWITCH BETWEEN ACTUAL 
              EXPENSES AND ALLOWANCES DURING CERTIFICATION PERIOD.

    The fourteenth sentence of section 5(e) (7 U.S.C. 2014(e)) (as in 
effect before the amendment made by section 807) is amended by striking 
``and up to one additional time during each twelve-month period''.

SEC. 811. EXCLUSION OF LIFE INSURANCE PROCEEDS.

    Section 5(g) (7 U.S.C. 2014(g)) is amended by adding at the end the 
following:
            ``(6) Life insurance policy.--The Secretary shall exclude 
        from financial resources the cash value of any life insurance 
        policy owned by a member of a household.''.

SEC. 812. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME.

    Section 5(k)(2) (7 U.S.C. 2014(k)(2)), as amended by section 
807(b)(2), is amended--
            (1) by striking subparagraph (E); and
            (2) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (E) and (F), respectively.

SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM 
              REQUIREMENTS.

    Section 6(b)(1) (7 U.S.C. 2015(b)(1)) is amended--
            (1) in clause (i)--
                    (A) by striking ``six months upon'' and inserting 
                ``1 year on''; and
                    (B) by adding ``and'' at the end; and
            (2) striking clauses (ii) and (iii) and inserting the 
        following:
            ``(ii) permanently on--
                    ``(I) the second occasion of any such 
                determination; or
                    ``(II) the first occasion of a finding by a 
                Federal, State, or local court of the trading for 
                coupons of--
                            ``(aa) a controlled substance (as defined 
                        in section 102 of the Controlled Substances Act 
                        (21 U.S.C. 802)); or
                            ``(bb) firearms, ammunition, or 
                        explosives.''.

SEC. 814. STRENGTHENED WORK REQUIREMENTS.

    (a) In General.--Section 6(d) (7 U.S.C. 2015(d)) is amended--
            (1) by striking ``(d)(1) Unless otherwise exempted by the 
        provisions'' and all that follows through the end of paragraph 
        (1) and inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No physically and mentally fit 
                individual over the age of 15 and under the age of 60 
                shall be eligible to participate in the food stamp 
                program if the individual--
                            ``(i) refuses, at the time of application 
                        and every 12 months thereafter, to register for 
                        employment in a manner prescribed by the State 
                        agency;
                            ``(ii) refuses without good cause to 
                        participate in an employment and training 
                        program under paragraph (4), to the extent 
                        required under paragraph (4), including any 
                        reasonable employment requirements prescribed 
                        by the State agency under paragraph (4);
                            ``(iii) refuses without good cause to 
                        accept an offer of employment, at a site or 
                        plant not subject to a strike or lockout at the 
                        time of the refusal, at a wage that is not less 
                        than the higher of--
                                    ``(I) the applicable Federal or 
                                State minimum wage; or
                                    ``(II) 80 percent of the wage that 
                                would have governed had the minimum 
                                hourly rate under section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) been applicable 
                                to the offer of employment; or
                            ``(iv) voluntarily quits a job without good 
                        cause.
                    ``(B) Household ineligibility.--If an individual 
                who is the head of a household becomes ineligible to 
                participate in the food stamp program under 
                subparagraph (A), the household shall, at the option of 
                the State agency, become ineligible to participate in 
                the food stamp program for a period not to exceed the 
                period of the individual's ineligibility.
                    ``(C) Duration of ineligibility.--
                            ``(i) First refusal.--The first time that 
                        an individual becomes ineligible to participate 
                        in the food stamp program under clause (i), 
                        (ii), or (iii) of subparagraph (A), the 
                        individual shall remain ineligible until the 
                        individual becomes eligible under this Act 
                        (including subparagraph (A)).
                            ``(ii) Second refusal.--The second time 
                        that an individual becomes ineligible to 
                        participate in the food stamp program under 
                        clause (i), (ii), or (iii) of subparagraph (A), 
                        the individual shall remain ineligible until 
                        the later of--
                                    ``(I) the date the individual 
                                becomes eligible under this Act 
                                (including subparagraph (A)); or
                                    ``(II) the date that is 3 months 
                                after the date the individual became 
                                ineligible under subparagraph (A).
                            ``(iii) Third or subsequent refusal.--The 
                        third or subsequent time that an individual 
                        becomes ineligible to participate in the food 
                        stamp program under clause (i), (ii), or (iii) 
                        of subparagraph (A), the individual shall 
                        remain ineligible until the later of--
                                    ``(I) the date the individual 
                                becomes eligible under this Act 
                                (including subparagraph (A)); or
                                    ``(II) the date that is 6 months 
                                after the date the individual became 
                                ineligible under subparagraph (A).
                            ``(iv) Voluntary quit.--On the date that an 
                        individual becomes ineligible under 
                        subparagraph (A)(iv), the individual shall 
                        remain ineligible until--
                                    ``(I) in the case of the first time 
                                the individual becomes ineligible, the 
                                date that is 3 months after the date 
                                the individual became ineligible; and
                                    ``(II) in the case of the second or 
                                subsequent time the individual becomes 
                                ineligible, the date that is 6 months 
                                after the date the individual became 
                                ineligible.
                    ``(D) Administration.--
                            ``(i) Becoming eligible.--
                                    ``(I) Waiting period.--A State 
                                agency may consider an individual 
                                ineligible to participate in the food 
                                stamp program not earlier than 14 days 
                                after the date the individual becomes 
                                ineligible to participate under clause 
                                (i), (ii), or (iii) of subparagraph 
                                (A).
                                    ``(II) Remaining eligible.--If an 
                                individual remains eligible to 
                                participate in the food stamp program 
                                under this Act (including subparagraph 
                                (A)) at the end of the earliest date 
                                for ineligibility under subclause (I), 
                                the State agency shall consider the 
                                individual to have maintained 
                                eligibility during the period preceding 
                                the earliest date for ineligibility.
                            ``(ii) Good cause.--In this paragraph, the 
                        term `good cause' includes the lack of adequate 
                        child care for a dependent child under the age 
                        of 12.
                            ``(iii) Strike against the government.--For 
                        the purpose of subparagraph (A)(iv), an 
                        employee of the Federal Government, a State, or 
                        a political subdivision of a State, who is 
                        dismissed for participating in a strike against 
                        the Federal Government, the State, or the 
                        political subdivision of the State shall be 
                        considered to have voluntarily quit without 
                        good cause.
                            ``(iv) Selecting a head of household.--
                                    ``(I) In general.--For the purpose 
                                of this paragraph, the State agency 
                                shall allow the household to select any 
                                adult parent of a child in the 
                                household as the head of the household 
                                if all adult members of the household 
                                making application under
                                 the food stamp program agree to the 
selection.
                                    ``(II) Time for making 
                                designation.--A household may designate 
                                the head of the household under 
                                subclause (I) each time the household 
                                is certified for participation in the 
                                food stamp program. The household may 
                                not change the designation during a 
                                certification period unless there is a 
                                change in the composition of the 
                                household.
                            ``(v) Change in head of household.--If the 
                        head of a household leaves the household during 
                        a period in which the household is ineligible 
                        to participate in the food stamp program under 
                        subparagraph (B)--
                                    ``(I) the household shall, if 
                                otherwise eligible, become eligible to 
                                participate in the food stamp program; 
                                and
                                    ``(II) if the head of the household 
                                becomes the head of another household, 
                                the household that becomes headed by 
                                the individual shall become ineligible 
                                to participate in the food stamp 
                                program for the remaining period of 
                                ineligibility.''; and
            (2) in paragraph (4)(H)(i), by striking ``The Secretary'' 
        and all that follows through ``State agency shall'' and 
        inserting ``A State agency may''.
    (b) Workfare.--Section 20(f) (7 U.S.C. 2029(f)) is amended by 
striking ``neither that'' and all that follows through ``shall be 
eligible'' and inserting ``the person and, at the option of a State 
agency, the household of which the person is a member, shall be 
ineligible''.
    (c) Conforming Amendment.--The second sentence of section 17(b)(2) 
(7 U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
inserting ``6(d)(1)(A)(i)''.

SEC. 815. WORK REQUIREMENT FOR ABLE-BODIED RECIPIENTS.

    (a) In General.--Section 6 (7 U.S.C. 2015) is amended by adding at 
the end the following:
    ``(i) Work Requirement.--
            ``(1) Definition of work program.--In this subsection, the 
        term `work program' means--
                    ``(A) a program under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.);
                    ``(B) a program under section 236 of the Trade Act 
                of 1974 (19 U.S.C. 2296); or
                    ``(C) a program of employment or training operated 
                or supervised by a State or local government, as 
                determined appropriate by the Secretary.
            ``(2) Work requirement.--No individual shall be eligible to 
        participate in the food stamp program as a member of any 
        household if, during the preceding 12 months, the individual 
        received food stamp benefits for not less than 6 months during 
        which the individual did not--
                    ``(A) work 20 hours or more per week, averaged 
                monthly;
                    ``(B) participate in a workfare program under 
                section 20 or a comparable State or local workfare 
                program;
                    ``(C) participate in and comply with the 
                requirements of an approved employment and training 
                program under subsection (d)(4); or
                    ``(D) participate in and comply with the 
                requirements of a work program for 20 hours or more per 
                week.
            ``(3) Exception.--Paragraph (2) shall not apply to an 
        individual if the individual is--
                    ``(A) under 18 or over 50 years of age;
                    ``(B) medically certified as physically or mentally 
                unfit for employment;
                    ``(C) a parent or other member of a household with 
                a dependent child under 18 years of age; or
                    ``(D) otherwise exempt under subsection (d)(2).
            ``(4) Waiver.--
                    ``(A) In general.--The Secretary may waive the 
                applicability of paragraph (2) to any group of 
                individuals in the State if the Secretary makes a 
                determination that the area in which the individuals 
                reside--
                            ``(i) has an unemployment rate of over 7 
                        percent; or
                            ``(ii) does not have a sufficient number of 
                        jobs to provide employment for the individuals.
                    ``(B) Report.--The Secretary shall report the basis 
                for a waiver under subparagraph (A) to the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.''.
    (b) Work and Training Programs.--Section 6(d)(4) (7 U.S.C. 
2015(d)(4)) is amended by adding at the end the following:
                    ``(O) Required participation in work and training 
                programs.--A State agency shall provide an opportunity 
                to participate in the employment and training program 
                under this paragraph to any individual who would 
                otherwise become subject to disqualification under 
                subsection (i).
                    ``(P) Coordinating work requirements.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this paragraph, a State 
                        agency that meets the participation 
                        requirements of clause (ii) may operate the 
                        employment and training program of the State 
                        for individuals who are members of households 
                        receiving allotments under this Act as part of 
                        a program operated by the State under part F of 
                        title IV of the Social Security Act (42 U.S.C. 
                        681 et seq.), subject to the requirements of 
                        the Act.
                            ``(ii) Participation requirements.--A State 
                        agency may exercise the option under clause (i) 
                        if the State agency provides an opportunity to 
                        participate in an approved employment and 
                        training program to an individual who is--
                                    ``(I) subject to subsection (i);
                                    ``(II) not employed at least an 
                                average of 20 hours per week;
                                    ``(III) not participating in a 
                                workfare program under section 20 (or a 
                                comparable State or local program); and
                                    ``(IV) not subject to a waiver 
                                under subsection (i)(4).''.
    (c) Enhanced Employment and Training Program.--Section 16(h)(1) (7 
U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A), by striking ``$75,000,000 for each 
        of the fiscal years 1991 through 1995'' and inserting 
        ``$150,000,000 for each of fiscal years 1996 through 2000'';
            (2) by striking subparagraphs (B), (C), (E), and (F);
            (3) by redesignating subparagraph (D) as subparagraph (B); 
        and
            (4) in subparagraph (B) (as redesignated by paragraph (3)), 
        by striking ``for each'' and all that follows through ``of 
        $60,000,000'' and inserting ``, the Secretary shall allocate 
        funding''.

SEC. 816. DISQUALIFICATION FOR PARTICIPATING IN 2 OR MORE STATES.

    Section 6 (7 U.S.C. 2015) (as amended by section 815) is further 
amended by adding at the end the following:
    ``(j) Disqualification for Participating in 2 or More States.--An 
individual shall be ineligible to participate in the food stamp program 
as a member of any household during a 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 
to receive benefits simultaneously from 2 or more States under--
            ``(1) the food stamp program;
            ``(2) a State program funded under part A of title IV of 
        the Social Security Act (42 U.S.C. 601 et seq.) or under title 
        XIX of the Act (42 U.S.C. 1396 et seq.); or
            ``(3) the supplemental security income program under title 
        XVI of the Act (42 U.S.C. 1381 et seq.).''.

SEC. 817. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

    Section 6 (7 U.S.C. 2015) (as amended by section 816) is further 
amended by adding at the end the following:
    ``(k) Disqualification for Child Support Arrears.--
            ``(1) In general.--At the option of a State agency, except 
        as provided in paragraph (2), no individual shall be eligible 
        to participate in the food stamp program as a member of any 
        household during any month that the individual is delinquent in 
        any payment due under a court order for the support of a child 
        of the individual.
            ``(2) Exceptions.--Paragraph (1) shall not apply if--
                    ``(A) a court is allowing the individual to delay 
                payment; or
                    ``(B) the individual is complying with a payment 
                plan approved by a court or the State agency designated 
                under part D of title IV of the Social Security Act (42 
                U.S.C. 651 et seq.) to provide support for the child of 
                the individual.''.

SEC. 818. FACILITATE IMPLEMENTATION OF A NATIONAL ELECTRONIC BENEFIT 
              TRANSFER DELIVERY SYSTEM.

    (a) Implementation of National Electronic Benefits Transfer 
System.--Section 7 (7 U.S.C. 2016) is amended--
            (1) in subsection (g)--
                    (A) by striking ``(1)'';
                    (B) by striking paragraph (2); and
                    (C) by striking ``(A)'' and ``(B)'' and inserting 
                ``(1)'' and ``(2)'', respectively;
            (2) in subsection (i)--
                    (A) in paragraph (2)--
                            (i) by striking ``issue final regulations 
                        effective no later than April 1, 1992, that'';
                            (ii) by striking subparagraph (A); and
                            (iii) by redesignating subparagraphs (B) 
                        through (H) as subparagraphs (A) through (G), 
                        respectively;
                    (B) in paragraph (3)(A), by inserting after 
                ``minority language populations'' the following: ``and 
                those stores a State agency has determined shall be 
                provided the equipment necessary for participation by 
                the store in an electronic benefit transfer delivery 
                system''; and
                    (D) by striking paragraph (5) and redesignating 
                paragraph (6) as paragraph (5); and
            (3) by adding at the end the following:
    ``(j) Electronic Benefit Transfers.--
            ``(1) Applicable law.--
                    ``(A) In general.--Disclosures, protections, 
                responsibilities, and remedies established by the 
                Federal Reserve Board under section 904 of the 
                Electronic Fund Transfer Act (15 U.S.C. 1693b) shall 
                not apply to benefits under this Act delivered through 
                any electronic benefit transfer system.
                    ``(B) Definition of electronic benefit transfer 
                system.--In this paragraph, the term `electronic 
                benefit transfer system' means a system under which a 
                governmental entity distributes benefits under this Act 
                or other benefits or payments by establishing accounts 
                to be accessed by recipients of the benefits 
                electronically, including through the use of an 
                automated teller machine or an intelligent benefit 
                card.
            ``(2) Charging for electronic benefit transfer care 
        replacement.--''.
                    ``(A) In general.--A State agency may charge an 
                individual for the cost of replacing a lost or stolen 
                electronic benefit transfer card.
                    ``(B) Reducing allotment.--A State agency may 
                collect a charge imposed under subparagraph (A) by 
                reducing the monthly allotment of the household of 
                which the individual is a member.
            ``(3) Optional photographic identification.--
                    ``(A) In general.--A State agency may require that 
                an electronic benefit card contain a photograph of 1 or 
                more members of a household.
                    ``(B) Other authorized users.--If a State agency 
                requires a photograph on an electronic benefit card 
                under subparagraph (A), the State agency shall 
                establish procedures to ensure that any other 
                appropriate member of the household or any authorized 
                representative of the household may utilize the 
                card.''.
    (b) Conforming Amendments.--
            (1) The first sentence of section 10 (7 U.S.C. 2019) is 
        amended by striking the period at the end and inserting the 
        following: ``, unless the center, organization, institution, 
        shelter, group living arrangement, or establishment is equipped 
        with a point-of-sale device for the purpose of participating in 
        the electronic benefit transfer system.''.
            (2) Section 16(a)(3) (7 U.S.C. 2025(a)(3)) is amended by 
        inserting after ``households'' the following: ``, including the 
        cost of providing equipment necessary for retail food stores to 
        participate in an electronic benefit transfer system''.
    (c) Effective Date.--The amendments made by this section shall 
become effective on the date that the Secretary of Agriculture 
implements a national electronic benefit transfer system in accordance 
with section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) (as 
amended by subsection (a)).

SEC. 819. LIMITING ADJUSTMENT OF MINIMUM BENEFIT.

    Section 8(a) (7 U.S.C. 2017(a)) is amended by striking ``nearest 
$5'' and inserting ``nearest $10''.

SEC. 820. BENEFITS ON RECERTIFICATION.

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

SEC. 821. STATE AUTHORIZATION TO SET REQUIREMENTS APPROPRIATE FOR 
              HOUSEHOLDS.

    (a) Aggregate Allotment.--Section 8(c)(3) (7 U.S.C. 2017(c)(3)) is 
amended--
            (1) by striking ``agency--'' and all that follows through 
        ``11(e)(9), may'' and inserting ``agency may''; and
            (2) by striking ``; and'' and all that follows and 
        inserting a period.
    (b) State Plan.--Section 11 (7 U.S.C. 2020) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (2)--
                            (i) by striking ``a simplified, uniform 
                        national'' and all that follows through ``such 
                        State forms are'' and inserting ``an 
                        application form for participation in the food 
                        stamp program that is'';
                            (ii) striking ``Each food stamp application 
                        form shall contain'' and all that follows 
                        through ``The State agency shall require'' and 
                        inserting ``The State agency shall require''; 
                        and
                            (iii) by striking the semicolon at the end 
                        and inserting the following: ``. An application 
                        shall be considered filed on the date the 
                        household submits an application that contains 
                        the name, address, and signature of the 
                        applicant;'';
                    (B) by striking paragraph (14) and inserting the 
                following:
            ``(14) that the agency shall evaluate the access needs of 
        special groups, including the elderly, disabled, rural poor, 
        people who do not speak or read English, households that are 
        homeless, and households that reside on an Indian reservation. 
        The State plan of operation required under subsection (d) shall 
        describe the procedures the State agency will follow to address 
        the access needs of the special groups, the actions the State 
        agency will take to provide timely and accurate service to all 
        applicants and recipients, and the means the State agency will 
        use to provide necessary information to applicants and 
        recipients, including the rights and responsibilities of the 
        applicants;'';
                    (C) by striking ``; and'' at the end of paragraph 
                (24) and inserting a period; and
                    (D) by striking paragraph (25);
            (2) in subsection (i)--
                    (A) by striking ``(1) a single'' and all that 
                follows through ``; (2)''; and
                    (B) by striking ``; (3) households'' and all that 
                follows through ``is available in such case file''; and
            (3) in subsection (j), by adding at the end the following:
            ``(3) Independent eligibility determination.--A State 
        agency may not deny an application, nor terminate benefits, 
        under the food stamp program, without a separate determination 
        by the State agency that the household fails to satisfy the 
        eligibility requirements for participation in the food stamp 
        program, on the basis that an application to participate has 
        been denied or benefits have been terminated under a program 
        funded under the Social Security Act (42 U.S.C. 301 et 
        seq.).''.

SEC. 822. COORDINATION OF EMPLOYMENT AND TRAINING PROGRAMS.

    Section 8(d) (7 U.S.C. 2019(d)) is amended--
            (1) by striking ``(d) A household'' and inserting the 
        following:
    ``(d) Noncompliance With Other Welfare or Work Programs.--
            ``(1) In general.--A household''; and
            (2) by inserting ``or a work requirement under a welfare or 
        public assistance program'' after ``assistance program''; and
            (3) by adding at the end the following:
            ``(2) Work requirement.--If a household fails to comply 
        with a work requirement under a State program funded under part 
        A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.), for the duration of the reduction--
                    ``(A) the household may not receive an increased 
                allotment as the result of a decrease in the income of 
                the household to the extent that the decrease is the 
                result of a penalty imposed for the failure to comply; 
                and
                    ``(B) the State agency may reduce the allotment of 
                the household by not more than 25 percent.''.

SEC. 823. SIMPLIFICATION OF APPLICATION PROCEDURES AND STANDARDIZATION 
              OF BENEFITS.

    Section 8 (7 U.S.C. 2019) is amended by striking subsection (e) and 
inserting the following:
    ``(e) Simplification of Application Procedures and Standardization 
of Benefits.--
            ``(1) In general.--On the request of a State agency, the 
        Secretary may approve Statewide, or for 1 or more project 
        areas, procedures and standards consistent with this Act under 
        which--
                    ``(A) a household in which all members of the 
                household are receiving benefits under a State program 
                funded under part A of title IV of the Social Security 
                Act (42 U.S.C. 601 et seq.) may be considered to have 
                satisfied the application, interview, and verification 
                requirements under section 11(e);
                    ``(B) the State agency may use income information 
                obtained and used under a State program funded under 
                part A of title IV of the Social Security Act to 
                determine the gross nonexcluded income of the household 
                under this Act;
                    ``(C) the State agency may standardize the amount 
                of the deductions under section 5(e), except that a 
                deduction may not be allowed for dependent care costs 
                or earned income if the State program funded under part 
                A of title IV of the Social Security Act allows an 
                income exclusion for the costs or income; and
                    ``(D) the State agency may elect to apply different 
                shelter standards to a household that receives a 
                housing subsidy and a household that does not receive a 
                housing subsidy.
            ``(2) Income includes assistance.--The gross nonexcluded 
        income of a household determined under paragraph (1)(B) shall 
        include the assistance provided under a State program funded 
        under part A of title IV of the Social Security Act.
            ``(3) Household size.--A State agency shall base the value 
        of the allotment provided to a household under this paragraph 
        on household size.
            ``(4) Alternative plan.--The Secretary may approve an 
        alternative plan submitted by a State agency that is consistent 
        with this Act for simplifying application procedures or 
        standardizing income or benefit determinations for a household 
        in which all members of the household are receiving benefits 
        under a State program funded under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.).
            ``(5) No increased federal costs.--
                    ``(A) Application.--On submission of a request for 
                approval under paragraph (1) or (4), a State agency 
                shall assure the Secretary that approval will not 
                increase Federal costs.
                    ``(B) Reduction of costs.--If Federal costs are 
                increased as a result of a State agency carrying out 
                this subsection, the State agency shall take prompt 
                action to reduce costs to the level that existed prior 
                to carrying out this subsection.''.

SEC. 824. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

    Section 9(a)(1) (7 U.S.C. 2018(a)(1)) is amended by adding at the 
end the following: ``The Secretary is authorized to issue regulations 
establishing specific time periods during which authorization to accept 
and redeem coupons under the food stamp program shall be valid.''.

SEC. 825. SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF STORES BASED 
              ON LACK OF BUSINESS INTEGRITY.

    Section 9(a)(1) (7 U.S.C. 2018(a)(1)) (as amended by section 824) 
is further amended by adding at the end the following: ``The Secretary 
may issue regulations establishing specific time periods of not less 
than 6 months during which a retail food store or wholesale food 
concern that has an application for approval to accept and redeem 
coupons denied or that has an approval withdrawn on the basis of 
business integrity and reputation cannot submit a new application for 
approval. The periods shall reflect the severity of business integrity 
infractions that are the basis of the denials or withdrawals.''.

SEC. 826. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.

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

SEC. 827. WAITING PERIOD FOR STORES THAT INITIALLY FAIL TO MEET 
              AUTHORIZATION CRITERIA.

    Section 9(d) (7 U.S.C. 2018(d)) is amended by adding at the end the 
following: ``A retail food store or wholesale food concern that has an 
application for approval to accept and redeem coupons denied because 
the store or concern does not meet criteria for approval established by 
the Secretary by regulation may not submit a new application for 6 
months from the date of the denial.''.
SEC. 828. MANDATORY CLAIMS COLLECTION METHODS.

    (a) Disclosure of Information.--Section 11(e)(8) (7 U.S.C. 
2020(e)(8)) is amended by inserting before the semicolon at the end the 
following: ``or from refunds of Federal taxes under section 3720A of 
title 31, United States Code''.
    (b) Collection of Overissuances.--Section 13 (7 U.S.C. 2022) is 
amended--
            (1) in subsection (b)--
                    (A) by striking ``(b)(1)(A) In'' and all that 
                follows through ``(2)(A) State agencies'' and inserting 
                the following:
    ``(b) Collection of Overissuances.--
            ``(1) In general.--A State agency'';
                    (B) by striking ``(B) State agencies'' and 
                inserting the following:
            ``(2) Other means of collection.--A State agency'';
                    (C) in paragraph (1) (as amended by subparagraph 
                (A))--
                            (i) by striking ``, other than claims'' and 
                        all that follows through ``error of the State 
                        agency,'';
                            (ii) by striking ``, except that the 
                        household shall'' and inserting ``. At the 
                        option of the State, the household may''; and
                            (iii) by adding at the end the following: 
                        ``A State agency may waive the use of an 
                        allotment reduction as a means of collecting a 
                        claim arising from an error of the State agency 
                        if the collection would cause a hardship (as 
                        defined by the State agency) on the household, 
                        except that the State agency shall continue to 
                        pursue all other lawful methods of collection 
                        of the claim.''; and
                    (D) in paragraph (2) (as amended by subparagraph 
                (A))--
                            (i) by striking ``may collect'' and 
                        inserting ``shall collect''; and
                            (ii) by striking ``or subparagraph (A)''; 
                        and
            (2) in subsection (d)--
                    (A) by striking ``and except for claims arising 
                from an error of the State agency,'';
                    (B) by striking ``may be recovered'' and inserting 
                ``shall be recovered''; and
                    (C) by inserting before the period at the end the 
                following: ``or a refund of Federal taxes under section 
                3720A of title 31, United States Code.''.
    (c) Disclosure of Return Information.--Section 6103(l) of the 
Internal Revenue Code of 1986 is amended by striking ``officers and 
employees'' each place it appears and inserting ``officers, employees, 
or agents, including State agencies,''.
    (d) State Agency Collection of Federal Tax Refunds.--Section 
6402(d) of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by inserting after ``any Federal 
        agency'' the following: ``(or any State agency that has the 
        responsibility for the administration of the food stamp program 
        operated pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 
        et seq.))''; and
            (2) in the second sentence of paragraph (2), by inserting 
        after ``a Federal agency'' the following: ``(or a State agency 
        that has the responsibility for the administration of the food 
        stamp program operated pursuant to the Food Stamp Act of 
        1977)''.
SEC. 829. STATE AUTHORIZATION TO ASSIST LAW ENFORCEMENT OFFICERS IN 
              LOCATING FUGITIVE FELONS.

    Section 11(e)(8)(B) (7 U.S.C. 2020(e)(8)(B)) is amended by striking 
``Act, and'' and inserting ``Act or of locating a fugitive felon (as 
defined by a State), and''.

SEC. 830. EXPEDITED SERVICE.

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

SEC. 831. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.

    Section 12(a) (7 U.S.C. 2021(a)) is amended by adding at the end 
the following: ``Regulations issued pursuant to this Act shall provide 
criteria for the finding of a violation, and the suspension or 
disqualification of a retail food store or wholesale food concern, on 
the basis of evidence that may include facts established through on-
site investigations, inconsistent redemption data, or evidence obtained 
through transaction reports under electronic benefits transfer 
systems.''.

SEC. 832. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS 
              PENDING ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Authority.--Section 12(a) (7 U.S.C. 2021(a)) (as amended by 
section 834) is amended by adding at the end the following: ``The 
regulations may establish criteria under which the authorization of a 
retail food store or wholesale food concern to accept and redeem 
coupons may be suspended at the time the store or concern is initially 
found to have committed a violation of a requirement of the food stamp 
program. The suspension may coincide with the period of a review under 
section 14. The Secretary shall not be liable for the value of any 
sales lost during a suspension or disqualification period.''.
    (b) Review.--Section 14(a) (7 U.S.C. 2023(a)) is amended--
            (1) in the first sentence, by striking ``disqualified or 
        subjected'' and inserting ``suspended, disqualified, or 
        subjected'';
            (2) in the fifth sentence, by inserting before the period 
        at the end the following: ``, except that, in the case of the 
        suspension of a retail food store or wholesale food concern 
        under section 12(a), the suspension shall remain in effect 
        pending any administrative or judicial review of the proposed 
        disqualification action, and the period of suspension shall be 
        deemed a part of any period of disqualification that is 
        imposed''; and
            (3) by striking the last sentence.

SEC. 833. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE 
              WIC PROGRAM.

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

SEC. 834. PERMANENT DEBARMENT OF RETAILERS WHO INTENTIONALLY SUBMIT 
              FALSIFIED APPLICATIONS.

    Section 12 (7 U.S.C. 2021) (as amended by section 833) is amended 
by adding at the end the following:
    ``(h) Falsified Applications.--
            ``(1) In general.--The Secretary shall issue regulations 
        providing for the permanent disqualification of a retail food 
        store, or wholesale food concern, that knowingly submits an 
        application for approval to accept and redeem coupons that 
        contains false information about a substantive matter that was 
        a basis for approving the application.
            ``(2) Review.--A disqualification under paragraph (1) shall 
        be subject to administrative and judicial review under section 
        14, except that the disqualification shall remain in effect 
        pending the review.''.
SEC. 835. EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR VIOLATIONS.

    (a) Forfeiture of Items Exchanged in Food Stamp Trafficking.--The 
first sentence of section 15(g) (7 U.S.C. 2024(g)) is amended by 
striking ``or intended to be furnished''.
    (b) Civil and Criminal Forfeiture.--Section 15 (7 U.S.C. 2024)) is 
amended by adding at the end the following:
    ``(h) Civil and Criminal Forfeiture.--
            ``(1) Civil forfeiture.--
                    ``(A) In general.--Any food stamp benefits and any 
                property, real or personal, constituting, derived from, 
                or traceable to any proceeds obtained directly or 
                indirectly from, or used, or intended to be used, to 
                commit, or to facilitate, the commission of a violation 
                of subsection (b) or (c) involving food stamp benefits 
                having an aggregate value of not less than $5,000, 
                shall be subject to forfeiture to the United States.
                    ``(B) Procedures.--Chapter 46 of title 18, United 
                States Code, shall apply to a seizure or forfeiture 
                under this subsection, if not inconsistent with this 
                subsection, except that any duties imposed on the 
                Secretary of the Treasury under chapter 46 may also be 
                performed with respect to a seizure or forfeiture under 
                this section by the Secretary of Agriculture.
                    ``(C) Civil and criminal.--Forfeitures imposed 
                under this subsection shall be in addition to any 
                criminal sanctions imposed against the owner of the 
                forfeited property.
            ``(2) Criminal forfeiture.--
                    ``(A) In general.--Any person convicted of 
                violating subsection (b) or (c) involving food stamp 
                benefits having an aggregate value of not less than 
                $5,000, shall forfeit to the United States, 
                irrespective of any State law--
                            ``(i) any food stamp benefits and any 
                        property constituting, or derived from, or 
                        traceable to any proceeds the person obtained 
                        directly or indirectly as a result of the 
                        violation; and
                            ``(ii) any food stamp benefits and any 
                        property of the person used, or intended to be 
                        used, in any manner or part, to commit, or to 
                        facilitate the commission of the violation.
                    ``(B) Sentence.--In imposing a sentence on a person 
                under subparagraph (A), the court shall order that the 
                person forfeit to the United States all property 
                described in this subsection.
                    ``(C) Procedures.--Any food stamp benefits or 
                property subject to forfeiture under this subsection, 
                any seizure or disposition of the benefits or property, 
                and any administrative or judicial proceeding relating 
                to the benefits or property, shall be governed by 
                subsections (b), (c), (e), and (g) through (p) of 
                section 413 of the Comprehensive Drug Abuse Prevention 
                and Control Act of 1970 (21 U.S.C. 853), if not 
                inconsistent with this subsection.
            ``(3) Excluded property.--This subsection shall not apply 
        to property referred to in subsection (g).
            ``(4) Restraining order.--A restraining order available 
        under section 413(e) of the Comprehensive Drug Abuse Prevention 
        and Control Act of 1970 (21 U.S.C. 853(e)) shall apply to 
        assets otherwise subject to forfeiture under section 413(p) of 
        the Act (21 U.S.C. 853(p)).
            ``(5) Rules and regulations.--The Secretary may prescribe 
        such rules and regulations as are necessary to carry out this 
        subsection.
    ``(i) Rules Relating to Forfeitures.--With respect to property 
subject to forfeiture under subsections (g) and (h), the Secretary may 
allocate a division of such property, or the proceeds of the sale of 
such property, as the Secretary determines appropriate, between the 
Secretary of Agriculture under subsection (g) and the Secretary of the 
Treasury under subsection (h).''.

SEC. 836. EXTENDING CLAIMS RETENTION RATES.

    The provisions of the first sentence of section 16(a) (7 U.S.C. 
2025(a)) is amended by striking ``1995'' each place it appears and 
inserting ``2000''.

SEC. 837. NUTRITION ASSISTANCE FOR PUERTO RICO.

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

SEC. 838. EXPANDED AUTHORITY FOR SHARING INFORMATION PROVIDED BY 
              RETAILERS.

    (a) Social Security Act.--Section 205(c)(2)(C)(iii) of the Social 
Security Act (42 U.S.C. 405(c)(2)(C)(iii)) is amended--
            (1) in subclause (II)--
                    (A) in the first sentence, by inserting after 
                ``instrumentality of the United States'' the following: 
                ``, a State government officer or employee with law 
                enforcement or investigative responsibilities, or a 
                State agency that has responsibility for administering 
                the special supplemental nutrition program for women, 
                infants, and children established under section 17 of 
                the Child Nutrition Act of 1966 (7 U.S.C. 1786),''; and
                    (B) in the last sentence, by inserting ``or State'' 
                after ``other Federal''; and
            (2) in subclause (III), by inserting ``or a State'' after 
        ``United States''.
    (b) Internal Revenue Code.--Section 6109(f)(2) of the Internal 
Revenue Code of 1986 (26 U.S.C. 6109(f)(2)) (as added by section 316(b) 
of the Social Security Administrative Reform Act of 1994 (Public Law 
103-296; 108 Stat. 1464)) is amended--
            (1) in subparagraph (A), by inserting after 
        ``instrumentality of the United States'' the following: ``, a 
        State government officer or employee with law enforcement or 
        investigative responsibilities, or a State agency that has 
        responsibility for administering the special supplemental 
        nutrition program for women, infants, and children established 
        under section 17 of the Child Nutrition Act of 1966 (7 U.S.C. 
        1786),'';
            (2) in the last sentence of subparagraph (A), by inserting 
        ``or State'' after ``other Federal''; and
            (3) in subparagraph (B), by inserting ``or a State'' after 
        ``United States''.

SEC. 839. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the National School Lunch Act (42 U.S.C. 
1766(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day care 
                home sponsoring organization that employs more than 1 
                employee, the organization does not base payments to an 
                employee of the organization on the number of family or 
                group day care homes recruited, managed, or 
                monitored.''.
    (b) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--Section 
        17(f)(3) of the Act is amended by striking ``(3)(A) 
        Institutions'' and all that follows through the end of 
        subparagraph (A) and inserting the following:
            ``(3) Reimbursement of family or group day care home 
        sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution that 
                        participates in the program under this section 
                        as a family or group day care home sponsoring 
                        organization shall be provided, for payment to 
                        a home of the organization, reimbursement 
                        factors in accordance with this subparagraph 
                        for the cost of obtaining and preparing food 
                        and prescribed labor costs involved in 
                        providing meals under this section.
                            ``(ii) Tier i family or group day care 
                        homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I family or 
                                group day care home' means--
                                            ``(aa) a family or group 
                                        day care home that is located 
                                        in a geographic area, as 
                                        defined by the Secretary based 
                                        on census data, in which at 
                                        least 50 percent of the 
                                        children residing in the area 
                                        are members of households whose 
                                        incomes meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9;
                                            ``(bb) a family or group 
                                        day care home that is located 
                                        in an area served by a school 
                                        enrolling elementary students 
                                        in which at least 50 percent of 
                                        the total number of children 
                                        enrolled are certified eligible 
                                        to receive free or reduced 
                                        price school meals under this 
                                        Act or the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or group 
                                        day care home that is operated 
                                        by a provider whose household 
                                        meets the eligibility standards 
                                        for free or reduced price meals 
                                        under section 9 and whose 
                                        income is verified by a 
                                        sponsoring organization under 
                                        regulations established by the 
                                        Secretary.
                                    ``(II) Reimbursement.--Except as 
                                provided in subclause (III), a tier I 
                                family or group day care home shall be 
                                provided reimbursement factors under 
                                this clause without a requirement for 
                                documentation of the costs described in 
                                clause (i), except that reimbursement 
                                shall not be provided under this 
                                subclause for meals or supplements 
                                served to the children of a person 
                                acting as a family or group day care 
                                home provider unless the children meet 
                                the eligibility standards for free or 
                                reduced price meals under section 9.
                                    ``(III) Factors.--Except as 
                                provided in subclause (IV), the 
                                reimbursement factors applied to a home 
                                referred to in subclause (II) shall be 
                                the factors in effect on the date of 
                                enactment of this subclause.
                                    ``(IV) Adjustments.--The 
                                reimbursement factors under this 
                                subparagraph shall be adjusted on 
                                August 1, 1996, July 1, 1997, and each 
                                July 1 thereafter, to reflect changes 
                                in the Consumer Price Index for food at 
                                home for the most recent 12-month 
                                period for which the data are 
                                available. The reimbursement factors 
                                under this subparagraph shall be 
                                rounded to the nearest lower cent 
                                increment and based on the unrounded 
                                adjustment for the preceding 12-month 
                                period.
                            ``(iii) Tier ii family or group day care 
                        homes.--
                                    ``(I) In general.--
                                            ``(aa) Factors.--Except as 
                                        provided in subclause (II), 
                                        with respect to meals or 
                                        supplements served under this 
                                        clause by a family or group day 
                                        care home that does not meet 
                                        the criteria set forth in 
                                        clause (ii)(I), the 
                                        reimbursement factors shall be 
                                        $1 for lunches and suppers, 40 
                                        cents for breakfasts, and 20 
                                        cents for supplements.
                                            ``(bb) Adjustments.--The 
                                        factors shall be adjusted on 
                                        July 1, 1997, and each July 1 
                                        thereafter, to reflect changes 
                                        in the Consumer Price Index for 
                                        food at home for the most 
                                        recent 12-month period for 
                                        which the data are available. 
                                        The reimbursement factors under 
                                        this item shall be rounded down 
                                        to the nearest lower cent 
                                        increment and based on the 
                                        unrounded adjustment for the 
                                        preceding 12-month period.
                                            ``(cc) Reimbursement.--A 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors under this subclause 
                                        without a requirement for 
                                        documentation of the costs 
                                        described in clause (i), except 
                                        that reimbursement shall not be 
                                        provided under this subclause 
                                        for meals or supplements served 
                                        to the children of a person 
                                        acting as a family or group day 
                                        care home provider unless the 
                                        children meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9.
                                    ``(II) Other factors.--A family or 
                                group day care home that does not meet 
                                the criteria set forth in clause 
                                (ii)(I) may elect to be provided 
                                reimbursement factors determined in 
                                accordance with the following 
                                requirements:
                                            ``(aa) Children eligible 
                                        for free or reduced price 
                                        meals.--In the case of meals or 
                                        supplements served under this 
                                        subsection to children who are 
                                        members of households whose 
                                        incomes meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9, 
                                        the family or group day care 
                                        home shall be provided 
                                        reimbursement factors
                                         set by the Secretary in 
accordance with clause (ii)(III).
                                            ``(bb) Ineligible 
                                        children.--In the case of meals 
                                        or supplements served under 
                                        this subsection to children who 
                                        are members of households whose 
                                        incomes do not meet the 
                                        eligibility standards, the 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors in accordance with 
                                        subclause (I).
                                    ``(III) Information and 
                                determinations.--
                                            ``(aa) In general.--If a 
                                        family or group day care home 
                                        elects to claim the factors 
                                        described in subclause (II), 
                                        the family or group day care 
                                        home sponsoring organization 
                                        serving the home shall collect 
                                        the necessary income 
                                        information, as determined by 
                                        the Secretary, from any parent 
                                        or other caretaker to make the 
                                        determinations specified in 
                                        subclause (II) and shall make 
                                        the determinations in 
                                        accordance with rules 
                                        prescribed by the Secretary.
                                            ``(bb) Categorical 
                                        eligibility.--In making a 
                                        determination under item (aa), 
                                        a family or group day care home 
                                        sponsoring organization may 
                                        consider a child participating 
                                        in or subsidized under, or a 
                                        child with a parent 
                                        participating in or subsidized 
                                        under, a federally or State 
                                        supported child care or other 
                                        benefit program with an income 
                                        eligibility limit that does not 
                                        exceed the eligibility standard 
                                        for free or reduced price meals 
                                        under section 9 to be a child 
                                        who is a member of a household 
                                        whose income meets the 
                                        eligibility standards under 
                                        section 9.
                                            ``(cc) Factors for children 
                                        only.--A family or group day 
                                        care home may elect to receive 
                                        the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) solely for the 
                                        children participating in a 
                                        program referred to in item 
                                        (bb) if the home elects not to 
                                        have income statements 
                                        collected from parents or other 
                                        caretakers.
                                    ``(IV) Simplified meal counting and 
                                reporting procedures.--The Secretary 
                                shall prescribe simplified meal 
                                counting and reporting procedures for 
                                use by a family or group day care home 
                                that elects to claim the factors under 
                                subclause (II) and by a family or group 
                                day care home sponsoring organization 
                                that serves the home. The procedures 
                                the Secretary prescribes may include 1 
                                or more of the following:
                                            ``(aa) Setting an annual 
                                        percentage for each home of the 
                                        number of meals served that are 
                                        to be reimbursed in accordance 
                                        with the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) and an annual 
                                        percentage of the number of 
                                        meals served that are to be 
                                        reimbursed in accordance with 
                                        the reimbursement factors 
                                        prescribed under subclause (I), 
                                        based on the family income of 
                                        children enrolled in the home 
                                        in a specified month or other 
                                        period.
                                            ``(bb) Placing a home into 
                                        1 of 2 or more reimbursement 
                                        categories annually based on 
                                        the percentage of children in 
                                        the home whose households have 
                                        incomes that meet the 
                                        eligibility standards under 
                                        section 9, with each such 
                                        reimbursement category carrying 
                                        a set of reimbursement factors 
                                        such as the factors prescribed 
                                        under clause (ii)(III) or 
                                        subclause (I) or factors 
                                        established within the range of 
                                        factors prescribed under clause 
                                        (ii)(III) and subclause (I).
                                            ``(cc) Such other 
                                        simplified procedures as the 
                                        Secretary may prescribe.
                                    ``(V) Minimum verification 
                                requirements.--The Secretary may 
                                establish any necessary minimum 
                                verification requirements.''.
            (2) Sponsor payments.--Section 17(f)(3)(B) of the Act is 
        amended--
                    (A) by striking the period at the end of the second 
                sentence and all that follows through the end of the 
                subparagraph and inserting the following:``, except 
                that the adjustment that otherwise would occur on July 
                1, 1996, shall be made on August 1, 1996. The maximum 
                allowable levels for administrative expense payments 
                shall be rounded to the nearest lower dollar increment 
                and based on the unrounded adjustment for the preceding 
                12-month period.'';
                    (B) by striking ``(B)'' and inserting ``(B)(i)''; 
                and
                    (C) by adding at the end the following new clause:
    ``(ii) The maximum allowable level of administrative expense 
payments shall be adjusted by the Secretary--
            ``(I) to increase by 7.5 percent the monthly payment to 
        family or group day care home sponsoring organizations both for 
        tier I family or group day care homes and for those tier II 
        family or group day care homes for which the sponsoring 
        organization administers a means test as provided under 
        subparagraph (A)(iii); and
            ``(II) to decrease by 7.5 percent the monthly payment to 
        family or group day care home sponsoring organizations for 
        family or group day care homes that do not meet the criteria 
        for tier I homes and for which a means test is not 
        administered.''.
            (3) Grants to states to provide assistance to family or 
        group day care homes.--Section 17(f)(3) of the Act is amended 
        by adding at the end the following:
                    ``(D) Grants to states to provide assistance to 
                family or group day care homes.--
                            ``(i) In general.--
                                    ``(I) Reservation.--From amounts 
                                made available to carry out this 
                                section, the Secretary shall reserve 
                                $5,000,000 of the amount made available 
                                for fiscal year 1996.
                                    ``(II) Purpose.--The Secretary 
                                shall use the funds made available 
                                under subclause (I) to provide grants 
                                to States for the purpose of 
                                providing--
                                            ``(aa) assistance, 
                                        including grants, to family and 
                                        day care home sponsoring 
                                        organizations and other 
                                        appropriate organizations, in 
                                        securing and providing 
                                        training, materials, automated 
                                        data processing assistance, and 
                                        other assistance for the staff 
                                        of the sponsoring 
                                        organizations; and
                                            ``(bb) training and other 
                                        assistance to family and group 
                                        day care homes in the 
                                        implementation of the 
                                        amendments to subparagraph (A) 
                                        made by section 574(b)(1) of 
                                        the Family Self-Sufficiency Act 
                                        of 1995.
                            ``(ii) Allocation.--The Secretary shall 
                        allocate from the funds reserved under clause 
                        (i)(II)--
                                    ``(I) $30,000 in base funding to 
                                each State; and
                                    ``(II) any remaining amount among 
                                the States, based on the number of 
                                family day care homes participating in 
                                the program in a State in 1994 as a 
                                percentage of the number of all family 
                                day care homes participating in the 
                                program in 1994.
                            ``(iii) Retention of funds.--Of the amount 
                        of funds made available to a State for a fiscal 
                        year under clause (i), the State may retain not 
                        to exceed 30 percent of the amount to carry out 
                        this subparagraph.
                            ``(iv) Additional payments.--Any payments 
                        received under this subparagraph shall be in 
                        addition to payments that a State receives 
                        under subparagraph (A) (as amended by section 
                        134(b)(1) of the Family Self-Sufficiency Act of 
                        1995).''.
            (4) Provision of data.--Section 17(f)(3) of the Act (as 
        amended by paragraph (3)) is further amended by adding at the 
        end the following:
                    ``(E) Provision of data to family or group day care 
                home sponsoring organizations.--
                            ``(i) Census data.--The Secretary shall 
                        provide to each State agency administering a 
                        child and adult care food program under this 
                        section data from the most recent decennial 
                        census survey or other appropriate census 
                        survey for which the data are available showing 
                        which areas in the State meet the requirements 
                        of subparagraph (A)(ii)(I)(aa). The State 
                        agency shall provide the data to family or 
                        group day care home sponsoring organizations 
                        located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State agency 
                                administering the program under this 
                                section shall annually provide to a 
                                family or group day care home 
                                sponsoring organizations that request 
                                the data, a list of schools serving 
                                elementary school children in the State 
                                in which at least 50 percent of the 
                                children enrolled are certified to 
                                receive free or reduced price meals. 
                                State agencies administering the school 
                                lunch program under this Act or the 
                                school breakfast program under the 
                                Child Nutrition Act of 1966 (42 U.S.C. 
                                1771 et seq.) shall collect such data 
                                annually and provide such data on a 
                                timely basis to the State agency 
                                administering the program under this 
                                section.
                                    ``(II) Use of data from preceding 
                                school year.--In determining for a 
                                fiscal year or other annual period 
                                whether a home qualifies as a tier I 
                                family or group day care home under 
                                subparagraph (A)(ii)(I), the State 
                                agency administering the program under 
                                this section, and a family or group day 
                                care home sponsoring organization, 
                                shall use the most current available 
                                data at the time of the determination.
                            ``(iii) Duration of determination.--For 
                        purposes of this section, a determination that 
                        a family or group day care home is located in 
                        an area that qualifies the home as a tier I 
                        family or group day care home (as the term is 
                        defined in subparagraph (A)(ii)(I)), shall be 
                        in effect for 3 years (unless the determination 
                        is made on the basis of census data, in which 
                        case the determination shall remain in effect 
                        until more recent census data are available) 
                        unless the State agency determines that the 
                        area in which the home is located no longer 
                        qualifies the home as a tier I family or group 
                        day care home.''.
            (5) Conforming amendments.--Section 17(c) of the Act is 
        amended by inserting ``except as provided in subsection 
        (f)(3),'' after ``For purposes of this section,'' each place it 
        appears in paragraphs (1), (2), and (3).
    (c) Disallowing Meal Claims.--The fourth sentence of section 
17(f)(4) of the Act is amended by inserting ``(including institutions 
that are not family or group day care home sponsoring organizations)'' 
after ``institutions''.
    (d) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this section shall provide sufficient 
training, technical assistance, and monitoring to facilitate effective 
operation of the program. The Secretary shall assist the State in 
developing plans to fulfill the requirements of this subsection.''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on the 
        date of enactment of this Act.
            (2) Improved targeting of day care home reimbursements.--
        The amendments made by paragraphs (1), (3), and (4) of 
        subsection (b) shall become effective on August 1, 1996.
            (3) Implementation.--The Secretary of Agriculture shall 
        issue regulations to implement the amendments made by 
        paragraphs (1), (2), (3), and (4) of subsection (b) and the 
        provisions of section 17(f)(3)(C) of the National School Lunch 
        Act (42 U.S.C. 1766(f)(3)(C)) not later than February 1, 1996. 
        If such regulations are issued in interim form, final 
        regulations shall be issued not later than August 1, 1996.

SEC. 840. RESUMPTION OF DISCRETIONARY FUNDING FOR NUTRITION EDUCATION 
              AND TRAINING PROGRAM.

    Section 19(i)(2)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)(2)(A)) is amended--
            (1) by striking ``Out of'' and all that follows through 
        ``and $10,000,000'' and inserting ``To carry out the provisions 
        of this section, there is hereby authorized to be appropriated 
        not to exceed $10,000,000''; and
            (2) by striking the last sentence.
           TITLE IX--EFFECTIVE DATE; MISCELLANEOUS PROVISIONS

SEC. 901. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act shall take effect on October 1, 
1996.
    (b) One Year Extension of JOBS Program.--The authorization for the 
JOBS program under part F of title IV of the Social Security Act, as in 
effect on the date of the enactment of this Act shall be extended 
through fiscal year 1996 for $1,000,000,000 and allocated to the States 
in the same manner as under section 495 of the Social Security Act, as 
added by section 201 of this Act, except that the participation rate 
under clause (vi) of section 403(l)(3)(A) of such Act, as so in effect, 
shall be applied by substituting ``25 percent'' for ``20 percent''.

SEC. 902. TREATMENT OF EXISTING WAIVERS.

    (a) In General.--If any waiver granted to a State under section 
1115 of the Social Security Act (42 U.S.C. 1315) or otherwise which 
relates to the provision of assistance under a State plan approved 
under title IV of the such Act (42 U.S.C. 601 et seq.), is in effect or 
approved by the Secretary of Health and Human Services as of the date 
of the enactment of this Act, the amendments made by this Act, at the 
option of the State, shall not apply with respect to the State before 
the expiration (determined without regard to any extensions) of the 
waiver.
    (b) Funding.--If the State elects the treatment described in 
subsection (a), the State--
            (1) may use so much of the remainder of the Federal funds 
        available for such waiver project as determined by the 
        Secretary of Health and Human Services based on an evaluation 
        of the budget of such waiver project; and
            (2) may have any costs in excess of the cost neutrality 
        requirements forgiven by the Secretary from funds not described 
        in section 414(a)(2).
    (c) Reports.--If the State does not elect the treatment described 
in subsection (a), and unless the Secretary of Health and Human 
Services determines that the waiver project is not of sufficient 
duration, the State shall submit a report on the operation and results 
of the waiver project, including any effects on employment and welfare 
receipt.

SEC. 903. EXPEDITED WAIVER PROCESS.

    Notwithstanding any other provision of law, the Secretary of Health 
and Human Services shall approve or disapprove a waiver submitted under 
section 1115 of the Social Security Act (42 U.S.C. 1315) not later than 
90 days after the date the completed application is received. In 
considering such an application, there shall be the presumption for 
approval in the case of a request for a waiver that is similar in 
substance and scale to a previously approved waiver.

SEC. 904. COUNTY WELFARE DEMONSTRATION PROJECT.

    (a) In general.--The Secretary of Health and Human Services and the 
Secretary of Agriculture may jointly enter into negotiations with any 
county having a population greater than 500,000 for the purpose of 
establishing appropriate rules to govern the establishment and 
operation of a 5-year welfare demonstration project. Under the 
demonstration project--
            (1) the county shall have the authority and duty to 
        administer the operation within the county of 1 or more of the 
        programs established under title I or II of this Act as if the 
        county were considered a State for purposes of such programs; 
        and
            (2) the State in which the county is located shall pass 
        through directly to the county 100 percent of a proportion of 
        the Federal funds received by the State under each of the 
        programs described in paragraph (1) that is administered by the 
        county under such paragraph, which proportion shall be 
        separately calculated for each such program based (to the 
        extent feasible and appropriate) on the formula used by the 
        Federal government to allocate payments to the States under the 
        program. Additionally, any State financial participation in 
        these programs shall be no different for counties participating 
        in the demonstration projects authorized by this section than 
        for other counties within the State.
    (b) Commencement of Project.--After the conclusion of the 
negotiations described in subsection (a), the Secretary of Health and 
Human Services and the Secretary of Agriculture may authorize the 
county to conduct the demonstration project described in such 
subsection in accordance with the rules established under such 
subsection.
    (c) Report.--The Secretary of Agriculture and the Secretary of 
Health and Human Services shall submit to the Congress a joint report 
on any demonstration project conducted under this section not later 
than 6 months after the termination of the project. Such report shall, 
at a minimum, describe the project, the rules negotiated with respect 
to the project under subsection (a), and the innovations (if any) that 
the county was able to initiate under the project.

SEC. 905. WORK REQUIREMENTS FOR STATE OF HAWAII.

    Section 485(a)(2)(B) of the Social Security Act, as added by 
section 201(a), is amended by redesignating clause (iii) as clause 
(iv), and by inserting after clause (ii) the following new clause:
                            ``(iii) Deemed hours of work.--For purposes 
                        of subclauses (II) and (III) of subparagraph 
                        (A)(i), `19 hours' shall be substituted for `20 
                        hours' in determining the State of Hawaii's 
                        work performance rate.''.

SEC. 906. REQUIREMENT THAT DATA RELATING TO THE INCIDENCE OF POVERTY IN 
              THE UNITED STATES BE PUBLISHED AT LEAST EVERY 2 YEARS.

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

SEC. 907. STUDY BY THE CENSUS BUREAU.

    (a) In General.--The Bureau of the Census shall expand the Survey 
of Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact of 
the amendments made by title I of the Work First Act of 1995 on a 
random national sample of recipients of assistance under State programs 
funded under part A of title IV of the Social Security Act and (as 
appropriate) other low income families, and in doing so, shall pay 
particular attention to the issues of out-of-wedlock birth, welfare 
dependency, the beginning and end of welfare spells, and the causes of 
repeat welfare spells.
    (b) Authorization of appropriations.--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. 908. 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 shall submit to the 
appropriate committees of the Congress a legislative proposal providing 
for such technical and conforming amendments in the law as are required 
by the provisions of this Act.
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