[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 842 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 842

 To replace the Aid to Families With Dependent Children Program with a 
           block grant to the States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 23 (legislative day, May 15), 1995

 Mr. Ashcroft (for himself, Mr. Coverdell, Mr. Craig, Mr. DeWine, Mr. 
 Smith, Mr. Inhofe, and Mr. Kempthorne) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To replace the Aid to Families With Dependent Children Program with a 
           block grant to the States, 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 ``Individual Accountability Act of 
1995''.

SEC. 2. BLOCK GRANTS TO THE STATES FOR AID TO NEEDY FAMILIES WITH 
              CHILDREN.

    Part A of title IV of the Social Security Act (42 U.S.C. 601-617) 
is amended to read as follows:

    ``Part A--Block Grants to States for Aid to Needy Families With 
                                Children

                       ``purpose; implementation

    ``Sec. 401. (a) Purpose.--The purpose of this part is to strengthen 
families by helping them move from dependence on government benefits to 
economic independence by consolidating Federal assistance to the States 
for aid to needy families and children into a single grant for such 
purpose, thereby giving States maximum flexibility to--
            ``(1) require welfare beneficiaries to work, from the first 
        receipt of benefits to the last;
            ``(2) require beneficiaries who are parents to ensure that 
        their school-age children attend school;
            ``(3) require minors who are beneficiaries to attend 
        school;
            ``(4) require parent beneficiaries to ensure that their 
        children receive the full complement of childhood 
        immunizations;
            ``(5) limit the amount of time beneficiaries may receive 
        assistance;
            ``(6) require beneficiaries not to use illegal drugs or 
        abuse other drugs;
            ``(7) reduce and discourage illegitimate births;
            ``(8) require each mother to identify the father of any 
        child for whom she seeks assistance;
            ``(9) provide noncash assistance to children or unwed 
        minors to prevent benefits from being diverted to inappropriate 
        purposes;
            ``(10) provide assistance to children to unwed minor 
        parents only when such minor parents are living in the homes of 
        relatives;
            ``(11) deny assistance to illegal aliens;
            ``(12) require individuals who sponsor the residency of 
        legal aliens to support those they sponsor; and
            ``(13) involve religious and charitable organizations, 
        voluntary associations, civic groups, community organizations, 
        nonprofit entities, benevolent and fraternal orders, 
        philanthropic entities, and other groups in the private sector, 
        as appropriate, in the provision of assistance to needy 
        families
         with the funding States receive under this part.
    ``(b) Implementation.--This purpose shall be implemented in 
accordance with conditions in each State and as determined by State 
law.

                          ``payments to states

    ``Sec. 402. (a) State Mandates for Work by Beneficiaries.--As a 
condition of receiving a payment of funds under this part, a State 
shall require each adult member of any family receiving aid from a 
State under this part to work, as defined by State law. Any individual 
who fails or refuses to work, and any member of such individual's 
family residing with such individual, shall not be eligible for 
assistance from funds provided to the State under this part.
    ``(b) Amount.--
            ``(1) In general.--Each State shall, subject to the 
        requirements of this part, be entitled to receive quarterly 
        payments for fiscal years 1996, 1997, 1998, 1999, and 2000 in 
        an amount equal to 25 percent of the annual amount determined 
        under paragraph (2) for such fiscal year for carrying out the 
        purpose described in section 401.
            ``(2) Annual amount.--The annual amount determined under 
        this paragraph is equal to--
                    ``(A) in fiscal year 1996, 100 percent of the 
                amounts received by a State in fiscal year 1994, or 100 
                percent of the average of amounts received by a State 
                in fiscal years 1992, 1993, and 1994, whichever is 
                greater, under--
                            ``(i) this part (as in effect in fiscal 
                        year 1994, or, if applicable, in fiscal years 
                        1992, 1993, and 1994); and
                            ``(ii) part F (as so in effect); and
                    ``(B) in each fiscal year thereafter, 100 percent 
                of the amount received by a State in the preceding 
                fiscal year under this part (as in effect in such 
                preceding fiscal year).
    ``(c) Funding Requirements.--The Secretary of the Treasury shall 
make quarterly payments described in subsection (b)(1) directly to each 
State in accordance with section 6503 of title 31, United States Code.
    ``(d) Expenditure of Funds; Rainy Day Fund.--Amounts received by a 
State under this part for any fiscal year shall be expended by the 
State in such fiscal year or in the succeeding fiscal year; except for 
such amounts as the State deems necessary to set aside in a separate 
account to provide, without fiscal year limitation, for unexpected 
levels of assistance during periods of high unemployment or other 
events which cause unexpected increases in the need for assistance to 
needy families and children. Any amounts remaining in such segregated 
accounts after fiscal year 2000 shall be expended by a State for the 
purpose described in section 401 of this part as in effect in fiscal 
year 2000.
    ``(e) Prohibition on Use of Funds.--Except as provided in 
subsection (f), a State to which a payment is made under this part may 
not use any part of such payment to provide medical services.
    ``(f) Authority To Use Portion of Grant For Other Purposes.--
            ``(1) For ssi for the disabled, health care services for 
        needy individuals, or food assistance.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the annual amount paid to the State under 
                this part for a fiscal year to carry out a State 
                program pursuant to any or all of the following 
                provisions of law:
                            ``(i) Title XVI of this Act.
                            ``(ii) Title XIX of this Act.
                            ``(iii) The Food Stamp Act.
                    ``(B) Applicable rules.--Any amount paid to the 
                State under this part that is used to carry out a State 
                program pursuant to a provision of law specified in 
                subparagraph (A) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.
            ``(2) For elementary and secondary education and other 
        purposes.--
                    ``(A) In general.--A State may use 2 percent of the 
                annual amount paid to the State under this part for a 
                fiscal year for elementary and secondary education 
                programs, or any other purpose that a State deems 
                necessary, for each 1 percent by which a State reduced, 
                in the most recently completed fiscal year for which 
                statistics are available, as compared to the 
                immediately preceding fiscal year, the rate of out-of-
                wedlock births in the State, provided that the rate of 
                pregnancy terminations in the State for the same fiscal 
                years has not increased.
                    ``(B) Reputable information.--In determining the 
                rate of out-of-wedlock births and pregnancy 
                terminations under subparagraph (A), a State shall use 
                statistical information available from a reputable 
                source such as the National Center for Health 
                Statistics, the Public Health Service, the National 
                Vital Statistics System, or the Centers for Disease 
                Control and Prevention.

   ``operation of a child support and paternity establishment program

    ``Sec. 403. In order to receive payments under section 402, a State 
shall--
            ``(1) have in effect a plan approved under part D of title 
        IV of the Social Security Act; and
            ``(2) operate a child support and paternity establishment 
        program in substantial compliance with such plan.

               ``administrative and fiscal accountability

    ``Sec. 404. (a) Audits; Reimbursement.--
            ``(1) Audits.--
                    ``(A) In general.--A State shall, not less than 
                annually, audit the State expenditures from amounts 
                received under this part. Such audit shall--
                            ``(i) determine the extent to which such 
                        expenditures were or were not expended in 
                        accordance with this part; and
                            ``(ii) be conducted by an approved entity 
                        (as defined in subparagraph (B)) in accordance 
                        with generally accepted auditing principles.
                    ``(B) Approved entity.--For purposes of 
                subparagraph (A), the term `approved entity' means an 
                entity that is--
                            ``(i) approved by the Secretary of the 
                        Treasury;
                            ``(ii) approved by the chief executive 
                        officer of the State; and
                            ``(iii) independent of any agency 
                        administering activities funded under this 
                        part.
            ``(2) Reimbursement.--
                    ``(A) In general.--Not later than 30 days following 
                the completion of an audit under this subsection, a 
                State shall submit a copy of the audit to the State 
                legislature and to the Secretary of the Treasury.
                    ``(B) Repayment.--Each State shall pay to the 
                United States amounts ultimately found by the approved 
                entity under paragraph (1)(A) not to have been expended 
                in accordance with this part plus 10 percent of such 
                amount as a penalty, or the Secretary of the Treasury 
                may offset such amounts plus the 10 percent penalty 
                against any other amount in any other year that the 
                State may be entitled to receive under this part.
    ``(b) Additional Accounting Requirements.--The provisions of 
chapter 75 of title 31, United States Code, shall apply to the audit 
requirements of this section.
    ``(c) Reporting Requirements; Form, Contents.--
            ``(1) Annual reports.--A State shall prepare comprehensive 
        annual reports on the activities carried out with amounts 
        received by the State under this part.
            ``(2) Content.--Reports prepared under this section--
                    ``(A) shall be for the most recently completed 
                fiscal year;
                    ``(B) shall be in accordance with generally 
                accepted accounting principles, including the 
                provisions of chapter 75 of title 31, United States 
                Code;
                    ``(C) shall include the results of the most recent 
                audit conducted in accordance with the requirements of 
                subsection (a) of this section;
                    ``(D) shall include information on any reduction in 
                the illegitimacy rate in a State and the statistics by 
                which such rate is determined pursuant to section 
                402(f)(2); and
                    ``(E) shall be in such form and contain such other 
                information as the State deems necessary--
                            ``(i) to provide an accurate description of 
                        such activities; and
                            ``(ii) to secure a complete record of the 
                        purposes for which amounts were expended in 
                        accordance with this part.
            ``(3) Copies.--A State shall make copies of the reports 
        required under this section available for public inspection 
        within the State. Copies also shall be provided upon request to 
        any interested public agency, and each such agency may provide 
        its views on such reports to the Congress.
    ``(d) Administrative Supervision.--
            ``(1) Role of the secretary of the treasury.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall supervise the amounts received under this part in 
                accordance with subparagraph (B).
                    ``(B) Limited supervision.--The supervision by the 
                Secretary of the Treasury shall be limited to--
                            ``(i) making quarterly payments to the 
                        States in accordance with section 402(b);
                            ``(ii) approving the entities referred to 
                        in subsection (a)(1)(B); and
                            ``(iii) withholding payment to a State 
                        based on the findings of such an entity in 
                        accordance with subsection (a)(2)(B).
            ``(2) Other federal supervision.--No administrative officer 
        or agency of the United States, other than the Secretary of the 
        Treasury and, as provided for in section 405, the Attorney 
        General, shall supervise the amounts received by the States 
        under this part or the use of such amounts by the States.
    ``(e) Limited Federal Oversight.--With the exception of the 
Department of the Treasury as provided for in this section and section 
405 of this part, no Federal department or agency may promulgate 
regulations or issue rules regarding the purpose of this part.

                     ``nondiscrimination provisions

    ``Sec. 405. (a) No Discrimination Against Individuals.--No 
individual shall be excluded from participation in, denied the benefits 
of, or subjected to discrimination under any program or activity funded 
in whole or in part with amounts received under this part on the basis 
of such individual's--
            ``(1) disability under section 504 of the Rehabilitation 
        Act of 1973 (29 U.S.C. 794);
            ``(2) sex under title IX of the Education Amendments of 
        1972 (20 U.S.C. 1681 et seq.); or
            ``(3) race, color, or national origin under title VI of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
    ``(b) Compliance.--If the Secretary of the Treasury determines that 
a State, or an entity that has received funds from amounts received by 
the State under this part, has failed to comply with a provision of law 
referred to in subsection (a), except as provided for in section 406 of 
this part, the Secretary of the Treasury shall notify the chief 
executive officer of the State and shall request the officer to secure 
compliance with such provision of law. If, not later than 60 days after 
receiving such notification, the chief executive officer fails or 
refuses to secure compliance, the Secretary of the Treasury may--
            ``(1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            ``(2) exercise the powers and functions provided under 
        title VI of the Civil
         Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the 
Education Amendments of 1972 (20 U.S.C. 1681 et seq.); or section 505 
of the Rehabilitation Act of 1973 (29 U.S.C. 794a), (as applicable); or
            ``(3) take such other action as may be provided by law.
    ``(c) Authority of Attorney General; Civil Actions.--When a matter 
is referred to the Attorney General pursuant to subsection (b)(1), or 
if the Attorney General has reason to believe that an entity is engaged 
in a pattern or practice in violation of a provision of law referred to 
in subsection (a), the Attorney General may bring a civil action in an 
appropriate district court of the United States for such relief as may 
be appropriate, including injunctive relief.

    ``nondiscrimination and institutional safeguards for religious 
                               providers

    ``Sec. 406. (a) Purpose.--The purpose of this section is to allow 
the participation of religious and charitable organizations as 
providers of assistance funded under this part, on the same basis as 
any other provider, without impairing or diminishing the religious 
character or freedom of such organizations.
    ``(b) Nondiscrimination.--Religious organizations are eligible as 
providers of assistance to needy families and children as provided for 
under this part. Neither the Federal Government nor a State receiving 
funds under this part shall discriminate against an organization which 
is or applies to be a provider of assistance on the basis that the 
organization has a religious mission or purpose.
    ``(c) Religious Character and Freedom.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any religious organization participating as a provider of 
        assistance funded under this part shall retain its independence 
        from Federal, State, and local governments, including such 
        organization's control over the definition, development, 
        practice, and expression of its religious beliefs. Such an 
        organization may select, employ, promote, discipline, and 
        dismiss its clerics and other ecclesiastics, directors, 
        officers, employees, and volunteers on the basis of religion, a 
        religious belief, or a religious practice. However, a religious 
        organization shall not deny needy families and children the 
        benefits of any assistance funded under this part on the basis 
        of religion, a religious belief, or refusal to participate in a 
        religious practice.
            ``(2) Additional Safeguards.--Neither the Federal 
        Government nor a State shall require a religious provider of 
        assistance to--
                    ``(A) alter its form of internal governance, or 
                form a separate, nonprofit corporation to receive and 
                administer the assistance funded under this part; or
                    ``(B) alter real estate or facilities used to 
                provide such assistance, including but not limited to 
                the removal of religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to be a provider of assistance funded 
        under this part.
            ``(3) Fiscal accountability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any religious organization providing 
                assistance funded under this part shall be subject to 
                the same regulations as other providers to account in 
                accord with generally accepted auditing principles for 
                the use of such funds provided under this part.
                    ``(B) Limited audit.--Religious organizations may 
                segregate Federal funds provided under this part into 
                separate accounts, and then only the financial 
                assistance provided with those funds shall be subject 
                to audit.
    ``(d) Compliance.--A religious organization which has its rights 
under this section violated may enforce its claim by asserting a civil 
action for such relief as may be appropriate, including injunctive 
relief or damages, in an appropriate district court of the United 
States against the entity or agency that commits such violation.
    ``(e) Rights of Beneficiaries of Assistance.--
            ``(1) In general.--If a beneficiary has a bona fide 
        objection to the religious character of the organization or 
        institution from which the beneficiary is receiving assistance 
        funded under this part, each State shall provide such 
        beneficiary a certificate, redeemable with any other provider 
        of assistance funded under this part, for services the value of 
        which is no less than the value of the funding received by the 
        religious provider from a State to provide assistance funded 
        under this part for such individual.
            ``(2) Prohibition on providing cash in exchange for 
        certificates.--No provider of assistance funded under this part 
        shall provide a beneficiary a cash amount in exchange for a 
        certificate provided for under paragraph (1).''.

SEC. 3. CONFORMING AMENDMENTS TO THE BUDGET ACT.

    The Balanced Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 900 et seq.) is amended--
            (1) in section 255(h) (2 U.S.C. 905(h), by striking ``Aid 
        to families with dependent children (75-0412-0-1-609);'' and 
        inserting ``Block grants to States for aid to needy families 
        with children;''; and
            (2) in section 256 (2 U.S.C. 906), by striking subsections 
        (c) and (k).

SEC. 4. CONSOLIDATION OF FEDERAL SPENDING.

    Part F of title IV of the Social Security Act (42 U.S.C. 681-687) 
is repealed.

SEC. 5. EFFECTIVE DATE.

    The amendments and repeals made by this Act shall take effect on 
October 1, 1995.
                                 <all>