[House Document 104-164]
[From the U.S. Government Publishing Office]




        104th Congress, 2d Session - - - - - - - - - - - -  House 
Document 104-164



 
                            VETO OF H.R. 4

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

HIS VETO OF H.R. 4, THE ``PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY 
                             ACT OF 1995''




   January 22, 1996.--Message and accompanying bill referred to the 
         Committee on Ways and Means and ordered to be printed
To the House of Representatives:
    I am returning herewith without my approval H.R. 4, the 
``Personal Responsibility and Work Opportunity Act of 1995.'' 
In disapproving H.R. 4, I am nevertheless determined to keep 
working with the Congress to enact real, bipartisan welfare 
reform. The current welfare system is broken and must be 
replaced, for the sake of the taxpayers who pay for it and the 
people who are trapped by it. But H.R. 4 does too little to 
move people from welfare to work. It is burdened with deep 
budget cuts and structural changes that fall short of real 
reform. I urge the Congress to work with me in good faith to 
produce a bipartisan welfare reform agreement that is tough on 
work and responsibility, but not tough on children and on 
parents who are responsible and who want to work.
    The Congress and the Administration are engaged in serious 
negotiations toward a balanced budget that is consistent with 
our priorities--one of which is to ``reform welfare,'' as 
November's agreement between Republicans and Democrats made 
clear. Welfare reform must be considered in the context of 
other critical and related issues such as Medicaid and the 
Earned Income Tax Credit. Americans know we have to reform the 
broken welfare system, but they also know that welfare reform 
is about moving people from welfare to work, not playing budget 
politics.
    The Administration has and will continue to set forth in 
detail our goals for reform and our objections to this 
legislation. The Administration strongly supported the Senate 
Democratic and House Democratic welfare reform bills, which 
ensured that States would have the resources and incentives to 
move people from welfare to work and that children would be 
protected. I strongly support time limits, work requirements, 
the toughest possible child support enforcement, and requiring 
minor mothers to live at home as a condition of assistance, and 
I am pleased that these central elements of my approach have 
been addressed in H.R. 4.
    We remain ready at any moment to sit down in good faith 
with Republicans and Democrats in the Congress to work out an 
acceptable welfare reform plan that is motivated by the urgency 
of reform rather than by a budget plan that is contrary to 
America's values. There is a bipartisan consensus around the 
country on the fundamental elements of real welfare reform, and 
it would be a tragedy for this Congress to squander this 
historic opportunity to achieve it. It is essential for the 
Congress to address shortcomings in the legislation in the 
following areas:
    Work and Child Care: Welfare reform is first and foremost 
about work. H.R. 4 weakens several important work provisions 
that are vital to welfare reform's success. The final welfare 
reform legislation should provide sufficient child care to 
enable recipients to leave welfare for work; reward States for 
placing people in jobs; restore the guarantee of health 
coverage for poor families; require States to maintain their 
stake in moving people from welfare to work; and protect States 
and families in the event of economic downturn and population 
growth. In addition, the Congress should abandon efforts 
included in the budget reconciliation bill that would gut the 
Earned Income Tax Credit, a powerful work incentive that is 
enabling hundreds of thousands of families to choose work over 
welfare.
    Deep Budget Cuts and Damaging Structural Changes: H.R. 4 
was designed to meet an arbitrary budget target rather than to 
achieve serious reform. The legislation makes damaging 
structural changes and deep budget cuts that would fall hardest 
on children and undermine States' ability to move people from 
welfare to work. We should work together to balance the budget 
and reform welfare, but the Congress should not use the words 
``welfare reform'' as a cover to violate the Nation's values. 
Making $60 billion in budget cuts and massive structural 
changes in a variety of programs, including foster care and 
adoption assistance, help for disabled children, legal 
immigrants, food stamps, and school lunch is not welfare 
reform. The final welfare reform legislation should reduce the 
magnitude of these budget cuts and the sweep of structural 
changes that have little connection to the central goal of 
work-based reform. We must demand responsibility from young 
mothers and young fathers, not penalize children for their 
parents' mistakes.
    I am deeply committed to working with the Congress to reach 
bipartisan agreement on an acceptable welfare reform bill that 
addresses these and other concerns. We owe it to the people who 
sent us here not to let this opportunity slip away by doing the 
wrong thing or failing to act at all.
                                                William J. Clinton.
    The White House, January 9, 1996.
H.R. 4

  One Hundred Fourth Congress of the United States of America, at the 
 First Session, Begun and Held at the City of Washington on Wednesday, 
  the Fourth Day of January, One Thousand Nine Hundred and Ninety-five



                                 An Act



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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

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

Sec. 101. Findings.

Sec. 102. Reference to Social Security Act.

Sec. 103. Block grants to States.

Sec. 104. Services provided by charitable, religious, or private 
organizations.

Sec. 105. Census data on grandparents as primary caregivers for their 
grandchildren.

Sec. 106. Report on data processing.

Sec. 107. Study on alternative outcomes measures.

Sec. 108. Conforming amendments to the Social Security Act.

Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and related 
provisions.

Sec. 110. Conforming amendments to other laws.

Sec. 111. Development of prototype of counterfeit-resistant social security 
card required.

Sec. 112. Disclosure of receipt of Federal funds.

Sec. 113. Modifications to the job opportunities for certain low-income 
individuals program.

Sec. 114. Medicaid eligibility under title IV of the Social Security Act.

Sec. 115. Secretarial submission of legislative proposal for technical and 
conforming amendments.

Sec. 116. Effective date; transition rule.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

                  Subtitle A--Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to have 
fraudulently misrepresented residence in order to obtain benefits 
simultaneously in 2 or more States.

Sec. 202. Denial of SSI benefits for fugitive felons and probation and 
parole violators.

               Subtitle B--Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.

Sec. 212. Eligibility redeterminations and continuing disability reviews.

Sec. 213. Additional accountability requirements.

Sec. 214. Reduction in cash benefits payable to institutionalized 
individuals whose medical costs are covered by private insurance.

Sec. 215. Regulations.

               Subtitle C--State Supplementation Programs

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

   Subtitle D--Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.

Sec. 232. Study of disability determination process.

Sec. 233. Study by General Accounting Office.

       Subtitle E--National Commission on the Future of Disability

Sec. 241. Establishment.

Sec. 242. Duties of the Commission.

Sec. 243. Membership.

Sec. 244. Staff and support services.

Sec. 245. Powers of Commission.

Sec. 246. Reports.

Sec. 247. Termination.

Sec. 248. Authorization of appropriations.

                 Subtitle F--Retirement Age Eligibility

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

                        TITLE III--CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement services.

Sec. 302. Distribution of child support collections.

Sec. 303. Privacy safeguards.

Sec. 304. Rights to notification and hearings.

                  Subtitle B--Locate and Case Tracking

Sec. 311. State case registry.

Sec. 312. Collection and disbursement of support payments.

Sec. 313. State directory of new hires.

Sec. 314. Amendments concerning income withholding.

Sec. 315. Locator information from interstate networks.

Sec. 316. Expansion of the Federal parent locator service.

Sec. 317. Collection and use of social security numbers for use in child 
support enforcement.

          Subtitle C--Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.

Sec. 322. Improvements to full faith and credit for child support orders.

Sec. 323. Administrative enforcement in interstate cases.

Sec. 324. Use of forms in interstate enforcement.

Sec. 325. State laws providing expedited procedures.

                   Subtitle D--Paternity Establishment

Sec. 331. State laws concerning paternity establishment.

Sec. 332. Outreach for voluntary paternity establishment.

Sec. 333. Cooperation by applicants for and recipients of temporary family 
assistance.

             Subtitle E--Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.

Sec. 342. Federal and State reviews and audits.

Sec. 343. Required reporting procedures.

Sec. 344. Automated data processing requirements.

Sec. 345. Technical assistance.

Sec. 346. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 351. Simplified process for review and adjustment of child support 
orders.

Sec. 352. Furnishing consumer reports for certain purposes relating to 
child support.

Sec. 353. Nonliability for financial institutions providing financial 
records to State child support enforcement agencies in child support cases.

                Subtitle G--Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.

Sec. 362. Authority to collect support from Federal employees.

Sec. 363. Enforcement of child support obligations of members of the Armed 
Forces.

Sec. 364. Voiding of fraudulent transfers.

Sec. 365. Work requirement for persons owing past-due child support.

Sec. 366. Definition of support order.

Sec. 367. Reporting arrearages to credit bureaus.

Sec. 368. Liens.

Sec. 369. State law authorizing suspension of licenses.

Sec. 370. Denial of passports for nonpayment of child support.

Sec. 371. International child support enforcement.

Sec. 372. Financial institution data matches.

Sec. 373. Enforcement of orders against paternal or maternal grandparents 
in cases of minor parents.

Sec. 374. Nondischargeability in bankruptcy of certain debts for the 
support of a child.

                       Subtitle H--Medical Support

Sec. 376. Correction to ERISA definition of medical child support order.

Sec. 377. Enforcement of orders for health care coverage.

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

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

                     Subtitle J--Effect of Enactment

Sec. 391. Effective dates.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

              Subtitle A--Eligibility for Federal Benefits

Sec. 401. Aliens who are not qualified aliens ineligible for Federal public 
benefits.

Sec. 402. Limited eligibility of certain qualified aliens for certain 
Federal programs.

Sec. 403. Five-year limited eligibility of qualified aliens for Federal 
means-tested public benefit.

Sec. 404. Notification and information reporting.

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

Sec. 411. Aliens who are not qualified aliens or nonimmigrants ineligible 
for State and local public benefits.

Sec. 412. State authority to limit eligibility of qualified aliens for 
State public benefits.

       Subtitle C--Attribution of Income and Affidavits of Support

Sec. 421. Federal attribution of sponsor's income and resources to alien.

Sec. 422. Authority for States to provide for attribution of sponsor's 
income and resources to the alien with respect to State programs.

Sec. 423. Requirements for sponsor's affidavit of support.

Sec. 424. Cosignature of alien student loans.

                     Subtitle D--General Provisions

Sec. 431. Definitions.

Sec. 432. Reapplication for SSI benefits.

Sec. 433. Verification of eligibility for Federal public benefits.

Sec. 434. Statutory construction.

Sec. 435. Communication between State and local government agencies, and 
the Immigration and Naturalization Service.

Sec. 436. Qualifying quarters.

                    Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

           TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.

Sec. 502. Reductions in Federal bureaucracy.

Sec. 503. Reducing personnel in Washington, D.C. area.

                   TITLE VI--REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance 
programs.

Sec. 602. Fraud under means-tested welfare and public assistance programs.

Sec. 603. Effective date.

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

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

Sec. 701. Establishment of program.

Sec. 702. Conforming amendments.

Sec. 703. Transfer and amendment to foster care protection requirement.

Sec. 704. Effective date; transition rule.

Sec. 705. Sense of the Congress regarding timely adoption of children.

            Subtitle B--Child and Family Services Block Grant

Sec. 751. Child and family services block grant.

Sec. 752. Reauthorizations.

Sec. 753. Repeals.

                         TITLE VIII--CHILD CARE

Sec. 801. Short title and references.

Sec. 802. Goals.

Sec. 803. Authorization of appropriations.

Sec. 804. Lead agency.

Sec. 805. Application and plan.

Sec. 806. Limitation on State allotments.

Sec. 807. Activities to improve the quality of child care.

Sec. 808. Repeal of early childhood development and before- and after-
school care requirement.

Sec. 809. Administration and enforcement.

Sec. 810. Payments.

Sec. 811. Annual report and audits.

Sec. 812. Report by the Secretary.

Sec. 813. Allotments.

Sec. 814. Definitions.

Sec. 815. Repeals.

                   TITLE IX--CHILD NUTRITION PROGRAMS

                  Subtitle A--National School Lunch Act

Sec. 901. State disbursement to schools.

Sec. 902. Nutritional and other program requirements.

Sec. 903. Free and reduced price policy statement.

Sec. 904. Special assistance.

Sec. 905. Miscellaneous provisions and definitions.

Sec. 906. Summer food service program for children.

Sec. 907. Commodity distribution.

Sec. 908. Child care food program.

Sec. 909. Pilot projects.

Sec. 910. Reduction of paperwork.

Sec. 911. Information on income eligibility.

Sec. 912. Nutrition guidance for child nutrition programs.

Sec. 913. Information clearinghouse.

Sec. 914. School nutrition optional block grant demonstration program.

                 Subtitle B--Child Nutrition Act of 1966

Sec. 921. Special milk program.

Sec. 922. Free and reduced price policy statement.

Sec. 923. School breakfast program authorization.

Sec. 924. State administrative expenses.

Sec. 925. Regulations.

Sec. 926. Prohibitions.

Sec. 927. Miscellaneous provisions and definitions.

Sec. 928. Accounts and records.

Sec. 929. Special supplemental nutrition program for women, infants, and 
children.

Sec. 930. Cash grants for nutrition education.

Sec. 931. Nutrition education and training.

Sec. 932. Breastfeeding promotion program.

             TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

Sec. 1001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 1011. Definition of certification period.

Sec. 1012. Definition of coupon.

Sec. 1013. Treatment of children living at home.

Sec. 1014. Optional additional criteria for separate household 
determinations.

Sec. 1015. Adjustment of thrifty food plan.

Sec. 1016. Definition of homeless individual.

Sec. 1017. State option for eligibility standards.

Sec. 1018. Earnings of students.

Sec. 1019. Energy assistance.

Sec. 1020. Deductions from income.

Sec. 1021. Vehicle allowance.

Sec. 1022. Vendor payments for transitional housing counted as income.

Sec. 1023. Doubled penalties for violating food stamp program requirements.

Sec. 1024. Disqualification of convicted individuals.

Sec. 1025. Disqualification.

Sec. 1026. Caretaker exemption.

Sec. 1027. Employment and training.

Sec. 1028. Comparable treatment for disqualification.

Sec. 1029. Disqualification for receipt of multiple food stamp benefits.

Sec. 1030. Disqualification of fleeing felons.

Sec. 1031. Cooperation with child support agencies.

Sec. 1032. Disqualification relating to child support arrears.

Sec. 1033. Work requirement.

Sec. 1034. Encourage electronic benefit transfer systems.

Sec. 1035. Value of minimum allotment.

Sec. 1036. Benefits on recertification.

Sec. 1037. Optional combined allotment for expedited households.

Sec. 1038. Failure to comply with other means-tested public assistance 
programs.

Sec. 1039. Allotments for households residing in centers.

Sec. 1040. Condition precedent for approval of retail food stores and 
wholesale food concerns.

Sec. 1041. Authority to establish authorization periods.

Sec. 1042. Information for verifying eligibility for authorization.

Sec. 1043. Waiting period for stores that fail to meet authorization 
criteria.

Sec. 1044. Operation of food stamp offices.

Sec. 1045. State employee and training standards.

Sec. 1046. Exchange of law enforcement information.

Sec. 1047. Expedited coupon service.

Sec. 1048. Withdrawing fair hearing requests.

Sec. 1049. Income, eligibility, and immigration status verification 
systems.

Sec. 1050. Disqualification of retailers who intentionally submit falsified 
applications.

Sec. 1051. Disqualification of retailers who are disqualified under the WIC 
program.

Sec. 1052. Collection of overissuances.

Sec. 1053. Authority to suspend stores violating program requirements 
pending administrative and judicial review.

Sec. 1054. Expanded criminal forfeiture for violations.

Sec. 1055. Limitation of Federal match.

Sec. 1056. Standards for administration.

Sec. 1057. Work supplementation or support program.

Sec. 1058. Waiver authority.

Sec. 1059. Authorization of pilot projects.

Sec. 1060. Response to waivers.

Sec. 1061. Employment initiatives program.

Sec. 1062. Adjustable food stamp cap.

Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.

Sec. 1064. Simplified food stamp program.

Sec. 1065. State food assistance block grant.

Sec. 1066. American Samoa.

Sec. 1067. Assistance for community food projects.

               Subtitle B--Commodity Distribution Programs

Sec. 1071. Commodity distribution program; commodity supplemental food 
program.

Sec. 1072. Emergency food assistance program.

Sec. 1073. Food bank demonstration project.

Sec. 1074. Hunger prevention programs.

Sec. 1075. Report on entitlement commodity processing.

Sec. 1076. National commodity processing.

                         TITLE XI--MISCELLANEOUS

                     Subtitle A--General Provisions

Sec. 1101. Expenditure of Federal funds in accordance with laws and 
procedures applicable to expenditure of State funds.

Sec. 1102. Elimination of housing assistance with respect to fugitive 
felons and probation and parole violators.

Sec. 1103. Sense of the Senate regarding enterprise zones.

Sec. 1104. Sense of the Senate regarding the inability of the non-custodial 
parent to pay child support.

Sec. 1105. Food stamp eligibility.

Sec. 1106. Establishing national goals to prevent teenage pregnancies.

Sec. 1107. Sense of the Senate regarding enforcement of statutory rape 
laws.

Sec. 1108. Sanctioning for testing positive for controlled substances.

Sec. 1109. Abstinence education.

Sec. 1110. Provisions to encourage electronic benefit transfer systems.

Sec. 1111. Reduction in block grants to States for social services.

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

SEC. 101. FINDINGS.

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

SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

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

SEC. 103. BLOCK GRANTS TO STATES.

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

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

``SEC. 401. PURPOSE.

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

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

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

``SEC. 403. GRANTS TO STATES.

    ``(a) Grants.--
            ``(1) Family assistance grant.--
                    ``(A) In general.--Each eligible State 
                shall be entitled to receive from the 
                Secretary, for each of fiscal years 1996, 1997, 
                1998, 1999, 2000, and 2001 a grant in an amount 
                equal to the State family assistance grant.
                    ``(B) State family assistance grant 
                defined.--As used in this part, the term `State 
                family assistance grant' means the greatest 
                of--
                            ``(i) \1/3\ of the total amount 
                        required to be paid to the State under 
                        former section 403 (as in effect on 
                        September 30, 1995) for fiscal years 
                        1992, 1993, and 1994 (other than with 
                        respect to amounts expended by the 
                        State for child care under subsection 
                        (g) or (i) of former section 402 (as so 
                        in effect));
                            ``(ii)(I) the total amount required 
                        to be paid to the State under former 
                        section 403 for fiscal year 1994 (other 
                        than with respect to amounts expended 
                        by the State for child care under 
                        subsection (g) or (i) of former section 
                        402 (as so in effect)); plus
                            ``(II) an amount equal to 85 
                        percent of the amount (if any) by which 
                        the total amount required to be paid to 
                        the State under former section 
                        403(a)(5) for emergency assistance for 
                        fiscal year 1995 exceeds the total 
                        amount required to be paid to the State 
                        under former section 403(a)(5) for 
                        fiscal year 1994, if, during fiscal 
                        year 1994, the Secretary approved under 
                        former section 402 an amendment to the 
                        former State plan with respect to the 
                        provision of emergency assistance in 
                        the context of family preservation; or
                            ``(iii) \4/3\ of the total amount 
                        required to be paid to the State under 
                        former section 403 (as in effect on 
                        September 30, 1995) for the 1st 3 
                        quarters of fiscal year 1995 (other 
                        than with respect to amounts expended 
                        by the State under the State plan 
                        approved under part F (as so in effect) 
                        or for child care under subsection (g) 
                        or (i) of former section 402 (as so in 
                        effect)), plus the total amount 
                        required to be paid to the State for 
                        fiscal year 1995 under former section 
                        403(l) (as so in effect).
                    ``(C) Total amount required to be paid to 
                the state under former section 403 defined.--As 
                used in this part, the term `total amount 
                required to be paid to the State under former 
                section 403' means, with respect to a fiscal 
                year--
                            ``(i) in the case of a State to 
                        which section 1108 does not apply, the 
                        sum of--
                                    ``(I) the Federal share of 
                                maintenance assistance 
                                expenditures for the fiscal 
                                year, before reduction pursuant 
                                to subparagraph (B) or (C) of 
                                section 403(b)(2) (as in effect 
                                on September 30, 1995), as 
                                reported by the State on ACF 
                                Form 231;
                                    ``(II) the Federal share of 
                                administrative expenditures 
                                (including administrative 
                                expenditures for the 
                                development of management 
                                information systems) for the 
                                fiscal year, as reported by the 
                                State on ACF Form 231;
                                    ``(III) the Federal share 
                                of emergency assistance 
                                expenditures for the fiscal 
                                year, as reported by the State 
                                on ACF Form 231;
                                    ``(IV) the Federal share of 
                                expenditures for the fiscal 
                                year with respect to child care 
                                pursuant to subsections (g) and 
                                (i) of former section 402 (as 
                                in effect on September 30, 
                                1995), as reported by the State 
                                on ACF Form 231; and
                                    ``(V) the aggregate amount 
                                required to be paid to the 
                                State for the fiscal year with 
                                respect to the State program 
                                operated under part F (as in 
                                effect on September 30, 1995), 
                                as determined by the Secretary, 
                                including additional 
                                obligations or reductions in 
                                obligations made after the 
                                close of the fiscal year; and
                            ``(ii) in the case of a State to 
                        which section 1108 applies, the lesser 
                        of--
                                    ``(I) the sum described in 
                                clause (i); or
                                    ``(II) the total amount 
                                certified by the Secretary 
                                under former section 403 (as in 
                                effect during the fiscal year) 
                                with respect to the territory.
                    ``(D) Information to be used in determining 
                amounts.--
                            ``(i) For fiscal years 1992 and 
                        1993.--
                                    ``(I) In determining the 
                                amount described in subclauses 
                                (I) through (IV) of 
                                subparagraph (C)(i) for any 
                                State for each of fiscal years 
                                1992 and 1993, the Secretary 
                                shall use information available 
                                as of April 28, 1995.
                                    ``(II) In determining the 
                                amount described in 
                                subparagraph (C)(i)(V) for any 
                                State for each of fiscal years 
                                1992 and 1993, the Secretary 
                                shall use information available 
                                as of January 6, 1995.
                            ``(ii) For fiscal year 1994.--In 
                        determining the amounts described in 
                        subparagraph (C)(i) for any State for 
                        fiscal year 1994, the Secretary shall 
                        use information available as of April 
                        28, 1995.
                            ``(iii) For fiscal year 1995.--
                                    ``(I) In determining the 
                                amount described in 
                                subparagraph (B)(ii)(II) for 
                                any State for fiscal year 1995, 
                                the Secretary shall use the 
                                information which was reported 
                                by the States and estimates 
                                made by the States with respect 
                                to emergencyassistance 
expenditures and was available as of August 11, 1995.
                                    ``(II) In determining the 
                                amounts described in subclauses 
                                (I) through (IV) of 
                                subparagraph (C)(i) for any 
                                State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 2, 
                                1995.
                                    ``(III) In determining the 
                                amount described in 
                                subparagraph (C)(i)(V) for any 
                                State for fiscal year 1995, the 
                                Secretary shall use information 
                                available as of October 5, 
                                1995.
                    ``(E) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1996, 1997, 1998, 1999, 2000, and 2001 
                such sums as are necessary for grants under 
                this paragraph.
            ``(2) Grant to reward states that reduce out-of-
        wedlock births.--
                    ``(A) In general.--In addition to any grant 
                under paragraph (1), each eligible State shall 
                be entitled to receive from the Secretary for 
                fiscal year 1998 or any succeeding fiscal year, 
                a grant in an amount equal to the State family 
                assistance grant multiplied by--
                            ``(i) 5 percent if--
                                    ``(I) the illegitimacy 
                                ratio of the State for the 
                                fiscal year is at least 1 
                                percentage point lower than the 
                                illegitimacy ratio of the State 
                                for fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the 
                                State for the fiscal year is 
                                less than the rate of induced 
                                pregnancy terminations in the 
                                State for fiscal year 1995; or
                            ``(ii) 10 percent if--
                                    ``(I) the illegitimacy 
                                ratio of the State for the 
                                fiscal year is at least 2 
                                percentage points lower than 
                                the illegitimacy ratio of the 
                                State for fiscal year 1995; and
                                    ``(II) the rate of induced 
                                pregnancy terminations in the 
                                State for the fiscal year is 
                                less than the rate of induced 
                                pregnancy terminations in the 
                                State for fiscal year 1995.
                    ``(B) Illegitimacy ratio.--As used in this 
                paragraph, the term `illegitimacy ratio' means, 
                with respect to a State and a fiscal year--
                            ``(i) the number of out-of-wedlock 
                        births that occurred in the State 
                        during the most recent fiscal year for 
                        which such information is available; 
                        divided by
                            ``(ii) the number of births that 
                        occurred in the State during the most 
                        recent fiscal year for which such 
                        information is available.
                    ``(C) Disregard of changes in data due to 
                changed reporting methods.--For purposes of 
                subparagraph (A), the Secretary shall 
                disregard--
                            ``(i) any difference between the 
                        illegitimacy ratio of a State for a 
                        fiscal year and the illegitimacy ratio 
                        of the State for fiscal year 1995 which 
                        is attributable to a change in State 
                        methods of reporting data used to 
                        calculate the illegitimacy ratio; and
                            ``(ii) any difference between the 
                        rate of induced pregnancy terminations 
                        in a State for a fiscal year and such 
                        rate for fiscal year 1995 which is 
                        attributable to a change in State 
                        methods of reporting data used to 
                        calculate such rate.
                    ``(D) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                year 1998 and for each succeeding fiscal year 
                such sums as are necessary for grants under 
                this paragraph.
            ``(3) Supplemental grant for population increases 
        in certain states.--
                    ``(A) In general.--Each qualifying State 
                shall, subject to subparagraph (F), be entitled 
                to receive from the Secretary--
                            ``(i) for fiscal year 1997 a grant 
                        in an amount equal to 2.5 percent of 
                        the total amount required to be paid to 
                        the State under former section 403 (as 
                        in effect during fiscal year 1994) for 
                        fiscal year 1994; and
                            ``(ii) for each of fiscal years 
                        1998, 1999, and 2000, a grant in an 
                        amount equal to the sum of--
                                    ``(I) the amount (if any) 
                                required to be paid to the 
                                State under this paragraph for 
                                the immediately preceding 
                                fiscal year; and
                                    ``(II) 2.5 percent of the 
                                sum of--
                                            ``(aa) the total 
                                        amount required to be 
                                        paid to the State under 
                                        former section 403 (as 
                                        in effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                            ``(bb) the amount 
                                        (if any) required to be 
                                        paid to the State under 
                                        this paragraph for the 
                                        fiscal year preceding 
                                        the fiscal year for 
                                        which the grant is to 
                                        be made.
                    ``(B) Preservation of grant without 
                increases for states failing to remain 
                qualifying states.--Each State that is not a 
                qualifying State for a fiscal year specified in 
                subparagraph (A)(ii) but was a qualifying State 
                for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from 
                the Secretary for the specified fiscal year, a 
                grant in an amount equal to the amount required 
                to be paid to the State under this paragraph 
                for the most recent fiscal year for which the 
                State was a qualifying State.
                    ``(C) Qualifying state.--
                            ``(i) In general.--For purposes of 
                        this paragraph, a State is a qualifying 
                        State for a fiscal year if--
                                    ``(I) the level of welfare 
                                spending per poor person by the 
                                State for the immediately 
                                preceding fiscal year is less 
                                than the national average level 
                                ofState welfare spending per 
poor person for such preceding fiscal year; and
                                    ``(II) the population 
                                growth rate of the State (as 
                                determined by the Bureau of the 
                                Census for the most recent 
                                fiscal year for which 
                                information is available) 
                                exceeds the average population 
                                growth rate for all States (as 
                                so determined) for such most 
                                recent fiscal year.
                            ``(ii) State must qualify in fiscal 
                        year 1997.--Notwithstanding clause (i), 
                        a State shall not be a qualifying State 
                        for any fiscal year after 1997 by 
                        reason of clause (i) if the State is 
                        not a qualifying State for fiscal year 
                        1997 by reason of clause (i).
                            ``(iii) Certain states deemed 
                        qualifying states.--For purposes of 
                        this paragraph, a State is deemed to be 
                        a qualifying State for fiscal years 
                        1997, 1998, 1999, and 2000 if--
                                    ``(I) the level of welfare 
                                spending per poor person by the 
                                State for fiscal year 1996 is 
                                less than 35 percent of the 
                                national average level of State 
                                welfare spending per poor 
                                person for fiscal year 1996; or
                                    ``(II) the population of 
                                the State increased by more 
                                than 10 percent from April 1, 
                                1990, to July 1, 1994, as 
                                determined by the Bureau of the 
                                Census.
                    ``(D) Definitions.--As used in this 
                paragraph:
                            ``(i) Level of welfare spending per 
                        poor person.--The term `level of State 
                        welfare spending per poor person' 
                        means, with respect to a State and a 
                        fiscal year--
                                    ``(I) the sum of--
                                            ``(aa) the total 
                                        amount required to be 
                                        paid to the State under 
                                        former section 403 (as 
                                        in effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                            ``(bb) the amount 
                                        (if any) paid to the 
                                        State under this 
                                        paragraph for the 
                                        immediately preceding 
                                        fiscal year; divided by
                                    ``(II) the number of 
                                individuals, according to the 
                                1990 decennial census, who were 
                                residents of the State and 
                                whose income was below the 
                                poverty line.
                            ``(ii) National average level of 
                        state welfare spending per poor 
                        person.--The term `national average 
                        level of State welfare spending per 
                        poor person' means, with respect to a 
                        fiscal year, an amount equal to--
                                    ``(I) the total amount 
                                required to be paid to the 
                                States under former section 403 
                                (as in effect during fiscal 
                                year 1994) for fiscal year 
                                1994; divided by
                                    ``(II) the number of 
                                individuals, according to the 
                                1990 decennial census, who were 
                                residents of any State and 
                                whose income was below the 
                                poverty line.
                            ``(iii) State.--The term `State' 
                        means each of the 50 States of the 
                        United States and the District of 
                        Columbia.
                    ``(E) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1997, 1998, 1999, and 2000 such sums as 
                are necessary for grants under this paragraph, 
                in a total amount not to exceed $800,000,000.
                    ``(F) Grants reduced pro rata if 
                insufficient appropriations.--If the amount 
                appropriated pursuant to this paragraph for a 
                fiscal year is less than the total amount of 
                payments otherwise required to be made under 
                this paragraph for the fiscal year, then the 
                amount otherwise payable to any State for the 
                fiscal year under this paragraph shall be 
                reduced by a percentage equal to the amount so 
                appropriated divided by such total amount.
                    ``(G) Budget scoring.--Notwithstanding 
                section 257(b)(2) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985, the 
                baseline shall assume that no grant shall be 
                made under this paragraph after fiscal year 
                2000.
    ``(b) Contingency Fund.--
            ``(1) Establishment.--There is hereby established 
        in the Treasury of the United States a fund which shall 
        be known as the `Contingency Fund for State Welfare 
        Programs' (in this section referred to as the `Fund').
            ``(2) Deposits into fund.--Out of any money in the 
        Treasury of the United States not otherwise 
        appropriated, there are appropriated for fiscal years 
        1997, 1998, 1999, 2000, and 2001 such sums as are 
        necessary for payment to the Fund in a total amount not 
        to exceed $1,000,000,000.
            ``(3) Grants.--From amounts appropriated pursuant 
        to paragraph (2), the Secretary of the Treasury shall 
        pay to each eligible State for a fiscal year an amount 
        equal to the lesser of--
                    ``(A) the Federal medical assistance 
                percentage for the State for the fiscal year 
                (as defined in section 1905(b), as in effect on 
                September 30, 1995) of the amount (if any) by 
                which the expenditures of the State in the 
                fiscal year under the State program funded 
                under this part exceed the historic State 
                expenditures (as defined in section 
                409(a)(7)(B)(iii)) for the State with respect 
                to the fiscal year; or
                    ``(B) 20 percent of the State family 
                assistance grant for the fiscal year.
            ``(4) Eligible state.--For purposes of this 
        subsection, a State is an eligible State for a fiscal 
        year, if--
                    ``(A) the average rate of total 
                unemployment in such State (seasonally 
                adjusted) for the period consisting of the most 
                recent 3 months for which data for all States 
                are published equals or exceeds 6.5 percent;
                    ``(B) the average rate of total 
                unemployment in such State (seasonally 
                adjusted) for the 3-month period equals or 
                exceeds 110 percent of such average rate for 
                either (or both) of the corresponding 3-month 
                periods ending in the 2 preceding calendar 
                years; and
                    ``(C) the total amount expended by the 
                State during the fiscal year under the State 
                program funded under this part is not less than 
                100 percent of the level of historic State 
                expenditures (as defined in section 
                409(a)(7)(B)(iii)) with respect to the fiscal 
                year.
            ``(5) State.--As used in this subsection, the term 
        `State' means each of the 50 States of the United 
        States and the District of Columbia.
            ``(6) Payment priority.--The Secretary shall make 
        payments under paragraph (3) in the order in which the 
        Secretary receives claims for such payments.
            ``(7) Annual reports.--The Secretary of the 
        Treasury shall annually report to the Congress on the 
        status of the Fund.
            ``(8) Budget scoring.--Notwithstanding section 
        257(b)(2) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985, the baseline shall assume that no 
        grant shall be made under this subsection after fiscal 
        year 2001.

``SEC. 404. USE OF GRANTS.

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

``SEC. 405. ADMINISTRATIVE PROVISIONS.

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

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

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

``SEC. 407. MANDATORY WORK REQUIREMENTS.

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

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

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

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

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

                                                             The minimum
          ``If the month is                            average number of
            in fiscal year:                           hours per week is:
              1996......................................           20   
              1997......................................           20   
              1998......................................           20   
              1999......................................           25   
              2000......................................           30   
              2001......................................           30   
              2002......................................           35   
              2003 or thereafter........................           35.  

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

``SEC. 408. PROHIBITIONS; REQUIREMENTS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor 
        child.--A State to which a grant is made under section 
        403 shall not use any part of the grant to provide 
        assistance to a family, unless the family includes--
                    ``(A) a minor child who resides with a 
                custodial parent or other adult caretaker 
                relative of the child; or
                    ``(B) a pregnant individual.
            ``(2) No additional cash assistance for children 
        born to families receiving assistance.--
                    ``(A) General rule.--A State to which a 
                grant is made under section 403 shall not use 
                any part of the grant to provide cash benefits 
                for a minor child who is born to--
                            ``(i) a recipient of assistance 
                        under the program operated under this 
                        part; or
                            ``(ii) a person who received such 
                        assistance at any time during the 10-
                        month period ending with the birth of 
                        the child.
                    ``(B) Exception for children born into 
                families with no other children.--Subparagraph 
                (A) shall not apply to a minor child who is 
                born into a family that does not include any 
                other children.
                    ``(C) Exception for vouchers.--Subparagraph 
                (A) shall not apply to vouchers which are 
                provided in lieu of cash benefits and which may 
                be used only to pay for particular goods and 
                services specified by the State as suitable for 
                the care of the child involved.
                    ``(D) Exception for rape or incest.--
                Subparagraph (A) shall not apply with respect 
                to a child who is born as a result of rape or 
                incest.
                    ``(E) State election to opt out.--
                Subparagraph (A) shall not apply to a State if 
                State law specifically exempts the State 
                program funded under this part from the 
                application of subparagraph (A).
                    ``(F) Substitution of family caps in effect 
                under waivers.--Subparagraph (A) shall not 
                apply to a State--
                            ``(i) if, as of the date of the 
                        enactment of this part, there is in 
                        effect a waiver approved by the 
                        Secretary under section 1115 which 
                        permits the State to deny aid under the 
                        State plan approved under part A of 
                        this title (as in effect without regard 
                        to the amendments made by title I of 
                        the Personal Responsibility and Work 
                        Opportunity Act of 1995) to a family by 
                        reason of the birth of a child to a 
                        family member otherwise eligible for 
                        such aid; and
                            ``(ii) for so long as the State 
                        continues to implement such policy 
                        under the State program funded under 
                        this part, under rules prescribed by 
                        the State.
            ``(3) Reduction or elimination of assistance for 
        noncooperation in child support.--If the agency 
        responsible for administering the State plan approved 
        under part D determines that an individual is not 
        cooperating with the State in establishing, modifying, 
        or enforcing a support order with respect to a child of 
        the individual, then the State--
                    ``(A) shall deduct from the assistance that 
                would otherwise be provided to the family of 
                the individual under the State program funded 
                under this part the share of such assistance 
                attributable to the individual; and
                    ``(B) may deny the family any assistance 
                under the State program.
            ``(4) No assistance for families not assigning 
        certain support rights to the state.--
                    ``(A) In general.--A State to which a grant 
                is made under section 403 shall require, as a 
                condition of providing assistance to a family 
                under the State program funded under this part, 
                that a member of the family assign to the State 
                any rights the family member may have (on 
                behalf of the family member or of any other 
                person for whom the family member has applied 
                for or is receiving such assistance) to support 
                from any other person, not exceeding the total 
                amount of assistance so provided to the family, 
                which accrue (or have accrued) before the date 
                the family leavesthe program, which assignment, 
on and after the date the family leaves the program, shall not apply 
with respect to any support (other than support collected pursuant to 
section 464) which accrued before the family received such assistance 
and which the State has not collected by--
                            ``(i) September 30, 2000, if the 
                        assignment is executed on or after 
                        October 1, 1997, and before October 1, 
                        2000; or
                            ``(ii) the date the family leaves 
                        the program, if the assignment is 
                        executed on or after October 1, 2000.
                    ``(B) Limitation.--A State to which a grant 
                is made under section 403 shall not require, as 
                a condition of providing assistance to any 
                family under the State program funded under 
                this part, that a member of the family assign 
                to the State any rights to support described in 
                subparagraph (A) which accrue after the date 
                the family leaves the program, except to the 
                extent necessary to enable the State to comply 
                with section 457.
            ``(5) No assistance for teenage parents who do not 
        attend high school or other equivalent training 
        program.--A State to which a grant is made under 
        section 403 shall not use any part of the grant to 
        provide assistance to an individual who has not 
        attained 18 years of age, is not married, has a minor 
        child at least 12 weeks of age in his or her care, and 
        has not successfully completed a high-school education 
        (or its equivalent), if the individual does not 
        participate in--
                    ``(A) educational activities directed 
                toward the attainment of a high school diploma 
                or its equivalent; or
                    ``(B) an alternative educational or 
                training program that has been approved by the 
                State.
            ``(6) No assistance for teenage parents not living 
        in adult-supervised settings.--
                    ``(A) In general.--
                            ``(i) Requirement.--Except as 
                        provided in subparagraph (B), a State 
                        to which a grant is made under section 
                        403 shall not use any part of the grant 
                        to provide assistance to an individual 
                        described in clause (ii) of this 
                        subparagraph if the individual and the 
                        minor child referred to in clause 
                        (ii)(II) do not reside in a place of 
                        residence maintained by a parent, legal 
                        guardian, or other adult relative of 
                        the individual as such parent's, 
                        guardian's, or adult relative's own 
                        home.
                            ``(ii) Individual described.-- For 
                        purposes of clause (i), an individual 
                        described in this clause is an 
                        individual who--
                                    ``(I) has not attained 18 
                                years of age; and
                                    ``(II) is not married, and 
                                has a minor child in his or her 
                                care.
                    ``(B) Exception.--
                            ``(i) Provision of, or assistance 
                        in locating, adult-supervised living 
                        arrangement.--In the case of an 
                        individual who is described in clause 
                        (ii), the State agency referred to in 
                        section 402(a)(4) shall provide, or 
                        assist the individual in locating, a 
                        second chance home, maternity home, or 
                        other appropriate adult-supervised 
                        supportive living arrangement, taking 
                        into consideration the needs and 
                        concerns of the individual, unless the 
                        State agency determines that the 
                        individual's current living arrangement 
                        is appropriate, and thereafter shall 
                        require that the individual and the 
                        minor child referred to in subparagraph 
                        (A)(ii)(II) reside in such living 
                        arrangement as a condition of the 
                        continued receipt of assistance under 
                        the State program funded under this 
                        part attributable to funds provided by 
                        the Federal Government (or in an 
                        alternative appropriate arrangement, 
                        should circumstances change and the 
                        current arrangement cease to be 
                        appropriate).
                            ``(ii) Individual described.--For 
                        purposes of clause (i), an individual 
                        is described in this clause if the 
                        individual is described in subparagraph 
                        (A)(ii), and--
                                    ``(I) the individual has no 
                                parent, legal guardian or other 
                                appropriate adult relative 
                                described in subclause (II) of 
                                his or her own who is living or 
                                whose whereabouts are known;
                                    ``(II) no living parent, 
                                legal guardian, or other 
                                appropriate adult relative, who 
                                would otherwise meet applicable 
                                State criteria to act as the 
                                individual's legal guardian, of 
                                such individual allows the 
                                individual to live in the home 
                                of such parent, guardian, or 
                                relative;
                                    ``(III) the State agency 
                                determines that--
                                            ``(aa) the 
                                        individual or the minor 
                                        child referred to in 
                                        subparagraph 
                                        (A)(ii)(II) is being or 
                                        has been subjected to 
                                        serious physical or 
                                        emotional harm, sexual 
                                        abuse, or exploitation 
                                        in the residence of the 
                                        individual's own parent 
                                        or legal guardian; or
                                            ``(bb) substantial 
                                        evidence exists of an 
                                        act or failure to act 
                                        that presents an 
                                        imminent or serious 
                                        harm if the individual 
                                        and the minor child 
                                        lived in the same 
                                        residence with the 
                                        individual's own parent 
                                        or legal guardian; or
                                    ``(IV) the State agency 
                                otherwise determines that it is 
                                in the best interest of the 
                                minor child to waive the 
                                requirement of subparagraph (A) 
                                with respect to the individual 
                                or the minor child.
                            ``(iii) Second-chance home.--For 
                        purposes of this subparagraph, the term 
                        `second-chance home' means an entity 
                        that provides individuals described in 
                        clause (ii) with a supportive and 
                        supervised living arrangement in which 
                        such individuals are required to learn 
                        parenting skills, including child 
                        development, family budgeting, health 
                        and nutrition, and other skills 
topromote their long-term economic independence and the well-being of 
their children.
            ``(7) No medical services.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a State to which a grant is 
                made under section 403 shall not use any part 
                of the grant to provide medical services.
                    ``(B) Exception for family planning 
                services.--As used in subparagraph (A), the 
                term `medical services' does not include family 
                planning services.
            ``(8) No assistance for more than 5 years.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), a State to which a 
                grant is made under section 403 shall not use 
                any part of the grant to provide cash 
                assistance to a family that includes an adult 
                who has received assistance under any State 
                program funded under this part attributable to 
                funds provided by the Federal Government, for 
                60 months (whether or not consecutive) after 
                the date the State program funded under this 
                part commences.
                    ``(B) Minor child exception.--In 
                determining the number of months for which an 
                individual who is a parent or pregnant has 
                received assistance under the State program 
                funded under this part, the State shall 
                disregard any month for which such assistance 
                was provided with respect to the individual and 
                during which the individual was--
                            ``(i) a minor child; and
                            ``(ii) not the head of a household 
                        or married to the head of a household.
                    ``(C) Hardship exception.--
                            ``(i) In general.--The State may 
                        exempt a family from the application of 
                        subparagraph (A) by reason of hardship 
                        or if the family includes an individual 
                        who has been battered or subjected to 
                        extreme cruelty.
                            ``(ii) Limitation.--The number of 
                        families with respect to which an 
                        exemption made by a State under clause 
                        (i) is in effect for a fiscal year 
                        shall not exceed 15 percent of the 
                        average monthly number of families to 
                        which assistance is provided under the 
                        State program funded under this part.
                            ``(iii) Battered or subject to 
                        extreme cruelty defined.--For purposes 
                        of clause (i), an individual has been 
                        battered or subjected to extreme 
                        cruelty if the individual has been 
                        subjected to--
                                    ``(I) physical acts that 
                                resulted in, or threatened to 
                                result in, physical injury to 
                                the individual;
                                    ``(II) sexual abuse;
                                    ``(III) sexual activity 
                                involving a dependent child;
                                    ``(IV) being forced as the 
                                caretaker relative of a 
                                dependent child to engage in 
                                nonconsensual sexual acts or 
                                activities;
                                    ``(V) threats of, or 
                                attempts at, physical or sexual 
                                abuse;
                                    ``(VI) mental abuse; or
                                    ``(VII) neglect or 
                                deprivation of medical care.
                    ``(D) Rule of interpretation.--Subparagraph 
                (A) shall not be interpreted to require any 
                State to provide assistance to any individual 
                for any period of time under the State program 
                funded under this part.
            ``(9) Denial of assistance for 10 years to a person 
        found to have fraudulently misrepresented residence in 
        order to obtain assistance in 2 or more states.--A 
        State to which a grant is made under section 403 shall 
        not use any part of the grant to provide cash 
        assistance to an individual during the 10-year period 
        that begins on the date the individual is convicted in 
        Federal or State court of having made a fraudulent 
        statement or representation with respect to the place 
        of residence of the individual in order to receive 
        assistance simultaneously from 2 or more States under 
        programs that are funded under this title, title XIX, 
        or the Food Stamp Act of 1977, or benefits in 2 or more 
        States under the supplemental security income program 
        under title XVI.
            ``(10) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                    ``(A) In general.--A State to which a grant 
                is made under section 403 shall not use any 
                part of the grant to provide assistance to any 
                individual who is--
                            ``(i) fleeing to avoid prosecution, 
                        or custody or confinement after 
                        conviction, under the laws of the place 
                        from which the individual flees, for a 
                        crime, or an attempt to commit a crime, 
                        which is a felony under the laws of the 
                        place from which the individual flees, 
                        or which, in the case of the State of 
                        New Jersey, is a high misdemeanor under 
                        the laws of such State; or
                            ``(ii) violating a condition of 
                        probation or parole imposed under 
                        Federal or State law.
                    ``(B) Exchange of information with law 
                enforcement agencies.--If a State to which a 
                grant is made under section 403 establishes 
                safeguards against the use or disclosure of 
                information about applicants or recipients of 
                assistance under the State program funded under 
                this part, the safeguards shall not prevent the 
                State agency administering the program from 
                furnishing a Federal, State, or local law 
                enforcement officer, upon the request of the 
                officer, with the current address of any 
                recipient if the officer furnishes the agency 
                with the name of the recipient and notifies the 
                agency that--
                            ``(i) the recipient--
                                    ``(I) is described in 
                                subparagraph (A); or
                                    ``(II) has information that 
                                is necessary for the officer to 
                                conduct the official duties of 
                                the officer; and
                            ``(ii) the location or apprehension 
                        of the recipient is within such 
                        official duties.
            ``(11) Denial of assistance for minor children who 
        are absent from the home for a significant period.--
                    ``(A) In general.--A State to which a grant 
                is made under section 403 shall not use any 
                part of the grant to provide assistance for a 
                minor child who has been, or is expected by a 
                parent (or other caretaker relative) of the 
                child to be, absent from the home for a period 
                of 45 consecutive days or, at the option of the 
                State, such period of not less than 30 and not 
                more than 90 consecutive days as the State may 
                provide for in the State plan submitted 
                pursuant to section 402.
                    ``(B) State authority to establish good 
                cause exceptions.--The State may establish such 
                good cause exceptions to subparagraph (A) as 
                the State considers appropriate if such 
                exceptions are provided for in the State plan 
                submitted pursuant to section 402.
                    ``(C) Denial of assistance for relative who 
                fails to notify state agency of absence of 
                child.--A State to which a grant is made under 
                section 403 shall not use any part of the grant 
                to provide assistance for an individual who is 
                a parent (or other caretaker relative) of a 
                minor child and who fails to notify the agency 
                administering the State program funded under 
                this part of the absence of the minor child 
                from the home for the period specified in or 
                provided for pursuant to subparagraph (A), by 
                the end of the 5-day period that begins with 
                the date that it becomes clear to the parent 
                (or relative) that the minor child will be 
                absent for such period so specified or provided 
                for.
            ``(12) Income security payments not to be 
        disregarded in determining the amount of assistance to 
        be provided to a family.--If a State to which a grant 
        is made under section 403 uses any part of the grant to 
        provide assistance for any individual who is receiving 
        a payment under a State plan for old-age assistance 
        approved under section 2, a State program funded under 
        part B that provides cash payments for foster care, or 
        the supplemental security income program under title 
        XVI, then the State shall not disregard the payment in 
        determining the amount of assistance to be provided 
        under the State program funded under this part, from 
        funds provided by the Federal Government, to the family 
        of which the individual is a member.
    ``(b) Aliens.--For special rules relating to the treatment 
of aliens, see section 402 of the Personal Responsibility and 
Work Opportunity Act of 1995.

``SEC. 409. PENALTIES.

    ``(a) In General.--Subject to this section:
            ``(1) Use of grant in violation of this part.--
                    ``(A) General penalty.--If an audit 
                conducted under chapter 75 of title 31, United 
                States Code, finds that an amount paid to a 
                State under section 403 for a fiscal year has 
                been used in violation of this part, the 
                Secretary shall reduce the grant payable to the 
                State under section 403(a)(1) for the 
                immediately succeeding fiscal year quarter by 
                the amount so used.
                    ``(B) Enhanced penalty for intentional 
                violations.--If the State does not prove to the 
                satisfaction of the Secretary that the State 
                did not intend to use the amount in violation 
                of this part, the Secretary shall further 
                reduce the grant payable to the State under 
                section 403(a)(1) for the immediately 
                succeeding fiscal year quarter by an amount 
                equal to 5 percent of the State family 
                assistance grant.
            ``(2) Failure to submit required report.--
                    ``(A) In general.--If the Secretary 
                determines that a State has not, within 1 month 
                after the end of a fiscal quarter, submitted 
                the report required by section 411(a) for the 
                quarter year, the Secretary shall reduce the 
                grant payable to the State under section 
                403(a)(1) for the immediately succeeding fiscal 
                year by an amount equal to 4 percent of the 
                State family assistance grant.
                    ``(B) Rescission of penalty.--The Secretary 
                shall rescind a penalty imposed on a State 
                under subparagraph (A) with respect to a report 
                for a fiscal quarter if the State submits the 
                report before the end of the immediately 
                succeeding fiscal quarter.
            ``(3) Failure to satisfy minimum participation 
        rates.--
                    ``(A) In general.--If the Secretary 
                determines that a State to which a grant is 
                made under section 403 for a fiscal year has 
                failed to comply with section 407(a) for the 
                fiscal year, the Secretary shall reduce the 
                grant payable to the State under section 
                403(a)(1) for the immediately succeeding fiscal 
                year by an amount equal to not more than 5 
                percent of the State family assistance grant.
                    ``(B) Penalty based on severity of 
                failure.--The Secretary shall impose reductions 
                under subparagraph (A) based on the degree of 
                noncompliance.
            ``(4) Failure to participate in the income and 
        eligibility verification system.--If the Secretary 
        determines that a State program funded under this part 
        is not participating during a fiscal year in the income 
        and eligibility verification system required by section 
        1137, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to not more 
        than 2 percent of the State family assistance grant.
            ``(5) Failure to comply with paternity 
        establishment and child support enforcement 
        requirements under part d.--Notwithstanding any other 
        provision of this Act, if the Secretary determines that 
        the State agency that administers a program funded 
        under this part does not enforce the penalties 
        requested by the agency administering part D against 
        recipients of assistance under the State program who 
        fail to cooperate in establishing paternity in 
        accordance with such part, the Secretary shall reduce 
        the grant payable to the State under section 403(a)(1) 
        for the immediately succeeding fiscal year (without 
        regard to this section) by not more than 5 percent.
            ``(6) Failure to timely repay a federal loan fund 
        for state welfare programs.--If the Secretary 
        determines that a State has failed to repay any amount 
        borrowed from the Federal Loan Fund for State Welfare 
        Programs established under section 406 within the 
        period of maturity applicable to theloan, plus any 
interest owed on the loan, the Secretary shall reduce the grant payable 
to the State under section 403(a)(1) for the immediately succeeding 
fiscal year quarter (without regard to this section) by the outstanding 
loan amount, plus the interest owed on the outstanding amount. The 
Secretary shall not forgive any outstanding loan amount or interest 
owed on the outstanding amount.
            ``(7) Failure of any state to maintain certain 
        level of historic effort.--
                    ``(A) In general.--The Secretary shall 
                reduce the grant payable to the State under 
                section 403(a)(1) for fiscal year 1997, 1998, 
                1999, 2000, or 2001 by the amount (if any) by 
                which qualified State expenditures for the then 
                immediately preceding fiscal year is less than 
                the applicable percentage of historic State 
                expenditures with respect to the fiscal year.
                    ``(B) Definitions.--As used in this 
                paragraph:
                            ``(i) Qualified state 
                        expenditures.--
                                    ``(I) In general.--The term 
                                `qualified State expenditures' 
                                means, with respect to a State 
                                and a fiscal year, the total 
                                expenditures by the State 
                                during the fiscal year, under 
                                all State programs, for any of 
                                the following with respect to 
                                eligible families:
                                            ``(aa) Cash 
                                        assistance.
                                            ``(bb) Child care 
                                        assistance.
                                            ``(cc) Educational 
                                        activities designed to 
                                        increase self-
                                        sufficiency, job 
                                        training, and work.
                                            ``(dd) 
                                        Administrative costs.
                                            ``(ee) Any other 
                                        use of funds allowable 
                                        under section 
                                        404(a)(1).
                                    ``(II) Exclusion of 
                                transfers from other state and 
                                local programs.--Such term does 
                                not include funding supplanted 
                                by transfers from other State 
                                and local programs.
                                    ``(III) Eligible 
                                families.--As used in subclause 
                                (I), the term `eligible 
                                families' means families 
                                eligible for assistance under 
                                the State program funded under 
                                this part, and families who 
                                would be eligible for such 
                                assistance but for the 
                                application of paragraph (2) or 
                                (8) of section 408(a) of this 
                                Act or section 402 of the 
                                Personal Responsibility and 
                                Work Opportunity Act of 1995.
                            ``(ii) Applicable percentage.--The 
                        term `applicable percentage' means--
                                    ``(I) for fiscal year 1996, 
                                75 percent; and
                                    ``(II) for fiscal years 
                                1997, 1998, 1999, and 2000, 75 
                                percent reduced (if 
                                appropriate) in accordance with 
                                subparagraph (C)(iii).
                            ``(iii) Historic state 
                        expenditures.--The term `historic State 
                        expenditures' means, with respect to a 
                        State and a fiscal year specified in 
                        subparagraph (A), the lesser of--
                                    ``(I) the expenditures by 
                                the State under parts A and F 
                                (as in effect during fiscal 
                                year 1994) for fiscal year 
                                1994; or
                                    ``(II) the amount which 
                                bears the same ratio to the 
                                amount described in subclause 
                                (I) as--
                                            ``(aa) the State 
                                        family assistance grant 
                                        for the fiscal year 
                                        immediately preceding 
                                        the fiscal year 
                                        specified in 
                                        subparagraph (A), plus 
                                        the total amount 
                                        required to be paid to 
                                        the State under former 
                                        section 403 for fiscal 
                                        year 1994 with respect 
                                        to amounts expended by 
                                        the State for child 
                                        care under subsection 
                                        (g) or (i) of section 
                                        402 (as in effect 
                                        during fiscal year 
                                        1994); bears to
                                            ``(bb) the total 
                                        amount required to be 
                                        paid to the State under 
                                        former section 403 (as 
                                        in effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994.
                        Such term does not include any 
                        expenditures under the State plan 
                        approved under part A (as so in effect) 
                        on behalf of individuals covered by a 
                        tribal family assistance plan approved 
                        under section 412, as determined by the 
                        Secretary.
                            ``(iv) Expenditures by the state.--
                        The term `expenditures by the State' 
                        does not include--
                                    ``(I) any expenditures from 
                                amounts made available by the 
                                Federal Government;
                                    ``(II) State funds expended 
                                for the medicaid program under 
                                title XIX; or
                                    ``(III) any State funds 
                                which are used to match Federal 
                                funds or are expended as a 
                                condition of receiving Federal 
                                funds under Federal programs 
                                other than under this title.
                    ``(C) Applicable percentage reduced for 
                states with best or most improved performance 
                in certain areas.--
                            ``(i) Scoring of state 
                        performance.--Beginning with fiscal 
                        year 1997, the Secretary shall assign 
                        to each State a score that represents 
                        the performance of the State for the 
                        fiscal year in each category described 
                        in clause (ii).
                            ``(ii) Categories.--The categories 
                        described in this clause are the 
                        following:
                                    ``(I) Increasing the number 
                                of families that received 
                                assistance under a State 
                                program funded under this part 
                                in the fiscal year, and that, 
                                during the fiscal year, become 
                                ineligible for such assistance 
                                as a result of unsubsidized 
                                employment.
                                    ``(II) Reducing the 
                                percentage of families that, 
                                within 18 months after becoming 
                                ineligible for assistance under 
                                the State program funded under 
                                this part, become eligible for 
                                such assistance.
                                    ``(III) Increasing the 
                                average earnings of families 
                                that receive assistance under 
                                this part.
                                    ``(IV) Reducing the 
                                percentage of children in the 
                                State that receive assistance 
                                under the State program funded 
                                under this part.
                            ``(iii) Reduction of maintenance of 
                        effort threshold.--
                                    ``(I) Reduction for states 
                                with 5 greatest scores in each 
                                category of performance.--The 
                                applicable percentage for a 
                                State for a fiscal year shall 
                                be reduced by 2 percentage 
                                points, with respect to each 
                                category described in clause 
                                (ii) for which the score 
                                assigned to the State under 
                                clause (i) for the immediately 
                                preceding fiscal year is 1 of 
                                the 5 highest scores so 
                                assigned to States.
                                    ``(II) Reduction for states 
                                with 5 greatest improvement in 
                                scores in each category of 
                                performance.--The applicable 
                                percentage for a State for a 
                                fiscal year shall be reduced by 
                                2 percentage points for a State 
                                for a fiscal year, with respect 
                                to each category described in 
                                clause (ii) for which the 
                                difference between the score 
                                assigned to the State under 
                                clause (i) for the immediately 
                                preceding fiscal year and the 
                                score so assigned to the State 
                                for the 2nd preceding fiscal 
                                year is 1 of the 5 greatest 
                                such differences.
                                    ``(III) Limitation on 
                                reduction.--The applicable 
                                percentage for a State for a 
                                fiscal year may not be reduced 
                                by more than 8 percentage 
                                points pursuant to this clause.
            ``(8) Substantial noncompliance of state child 
        support enforcement program with requirements of part 
        d.--
                    ``(A) In general.--If a State program 
                operated under part D is found as a result of a 
                review conducted under section 452(a)(4) not to 
                have complied substantially with the 
                requirements of such part for any quarter, and 
                the Secretary determines that the program is 
                not complying substantially with such 
                requirements at the time the finding is made, 
                the Secretary shall reduce the grant payable to 
                the State under section 403(a)(1) for the 
                quarter and each subsequent quarter that ends 
                before the 1st quarter throughout which the 
                program is found not to be in substantial 
                compliance with such requirements by--
                            ``(i) not less than 1 nor more than 
                        2 percent;
                            ``(ii) not less than 2 nor more 
                        than 3 percent, if the finding is the 
                        2nd consecutive such finding made as a 
                        result of such a review; or
                            ``(iii) not less than 3 nor more 
                        than 5 percent, if the finding is the 
                        3rd or a subsequent consecutive such 
                        finding made as a result of such a 
                        review.
                    ``(B) Disregard of noncompliance which is 
                of a technical nature.--For purposes of 
                subparagraph (A) and section 452(a)(4), a State 
                which is not in full compliance with the 
                requirements of this part shall be determined 
                to be in substantial compliance with such 
                requirements only if the Secretary determines 
                that any noncompliance with such requirements 
                is of a technical nature which does not 
                adversely affect the performance of the State's 
                program operated under part D.
            ``(9) Failure of state receiving amounts from 
        contingency fund to maintain 100 percent of historic 
        effort.--If, at the end of any fiscal year during which 
        amounts from the Contingency Fund for State Welfare 
        Programs have been paid to a State, the Secretary finds 
        that the State has failed, during the fiscal year, to 
        expend under the State program funded under this part 
        an amount equal to at least 100 percent of the level of 
        historic State expenditures (as defined in paragraph 
        (7)(B)(iii) of this subsection) with respect to the 
        fiscal year, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by the total of the 
        amounts so paid to the State.
            ``(10) Failure to expend additional state funds to 
        replace grant reductions.--If the grant payable to a 
        State under section 403(a)(1) for a fiscal year is 
        reduced by reason of this subsection, the State shall, 
        during the immediately succeeding fiscal year, expend 
        under the State program funded under this part an 
        amount equal to the total amount of such reductions.
    ``(b) Reasonable Cause Exception.--
            ``(1) In general.--The Secretary may not impose a 
        penalty on a State under subsection (a) with respect to 
        a requirement if the Secretary determines that the 
        State has reasonable cause for failing to comply with 
        the requirement.
            ``(2) Exception.--Paragraph (1) of this subsection 
        shall not apply to any penalty under subsection (a)(7).
    ``(c) Corrective Compliance Plan.--
            ``(1) In general.--
                    ``(A) Notification of violation.--Before 
                imposing a penalty against a State under 
                subsection (a) with respect to a violation of 
                this part, the Secretary shall notify the State 
                of the violation and allow the State the 
                opportunity to enter into a corrective 
                compliance plan in accordance with this 
                subsection which outlines how the State will 
                correct the violation and how the State will 
                insure continuing compliance with this part.
                    ``(B) 60-day period to propose a corrective 
                compliance plan.--During the 60-day period that 
                begins on the date the State receives a notice 
                provided under subparagraph (A) with respect to 
                a violation, the State may submit to the 
                Federal Government a corrective compliance plan 
                to correct the violation.
                    ``(C) Consultation about modifications.--
                During the 60-day period that begins with the 
                date the Secretary receives a corrective 
                compliance plan submitted by a State in 
                accordance with subparagraph (B), the Secretary 
                may consult with the State on modifications to 
                the plan.
                    ``(D) Acceptance of plan.-- A corrective 
                compliance plan submitted by a State in 
                accordance with subparagraph (B) is deemed to 
                be accepted by the Secretary if theSecretary 
does not accept or reject the plan during 60-day period that begins on 
the date the plan is submitted.
            ``(2) Effect of correcting violation.--The 
        Secretary may not impose any penalty under subsection 
        (a) with respect to any violation covered by a State 
        corrective compliance plan accepted by the Secretary if 
        the State corrects the violation pursuant to the plan.
            ``(3) Effect of failing to correct violation.--The 
        Secretary shall assess some or all of a penalty imposed 
        on a State under subsection (a) with respect to a 
        violation if the State does not, in a timely manner, 
        correct the violation pursuant to a State corrective 
        compliance plan accepted by the Secretary.
    ``(d) Limitation on Amount of Penalty.--
            ``(1) In general.--In imposing the penalties 
        described in subsection (a), the Secretary shall not 
        reduce any quarterly payment to a State by more than 25 
        percent.
            ``(2) Carryforward of unrecovered penalties.--To 
        the extent that paragraph (1) of this subsection 
        prevents the Secretary from recovering during a fiscal 
        year the full amount of penalties imposed on a State 
        under subsection (a) of this section for a prior fiscal 
        year, the Secretary shall apply any remaining amount of 
        such penalties to the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal 
        year.

``SEC. 410. APPEAL OF ADVERSE DECISION.

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

``SEC. 411. DATA COLLECTION AND REPORTING.

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

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

    ``(a) Grants for Indian Tribes.--
            ``(1) Tribal family assistance grant.--
                    ``(A) In general.--For each of fiscal years 
                1997, 1998, 1999, and 2000, the Secretary shall 
                pay to each Indian tribe that has an approved 
                tribal family assistance plan a tribal family 
                assistance grant for the fiscal year in an 
                amount equal to the amount determined under 
                subparagraph (B), and shall reduce the grant 
                payable under section 403(a)(1) to any State in 
                which lies the service area or areas of the 
                Indian tribe by that portion of the amount so 
                determined that is attributable to expenditures 
                by the State.
                    ``(B) Amount determined.--
                            ``(i) In general.--The amount 
                        determined under this subparagraph is 
                        an amount equal to the total amount of 
                        the Federal payments to a State or 
                        States under section 403 (as in effect 
                        during such fiscal year) for fiscal 
                        year 1994 attributable to expenditures 
                        (other than child care expenditures) by 
                        the State or States under parts A and F 
                        (as so in effect) for fiscal year 1994 
                        for Indian families residing in the 
                        service area or areas identified by the 
                        Indian tribe pursuant to subsection 
                        (b)(1)(C) of this section.
                            ``(ii) Use of state submitted 
                        data.--
                                    ``(I) In general.--The 
                                Secretary shall use State 
                                submitted data to make each 
                                determination under clause (i).
                                    ``(II) Disagreement with 
                                determination.--If an Indian 
                                tribe or tribal organization 
                                disagrees with State submitted 
                                data described undersubclause 
(I), the Indian tribe or tribal organization may submit to the 
Secretary such additional information as may be relevant to making the 
determination under clause (i) and the Secretary may consider such 
information before making such determination.
            ``(2) Grants for indian tribes that received jobs 
        funds.--
                    ``(A) In general.--The Secretary shall pay 
                to each eligible Indian tribe for each of 
                fiscal years 1996, 1997, 1998, 1999, and 2000 a 
                grant in an amount equal to the amount received 
                by the Indian tribe in fiscal year 1994 under 
                section 482(i) (as in effect during fiscal year 
                1994).
                    ``(B) Eligible indian tribe.--For purposes 
                of subparagraph (A), the term `eligible Indian 
                tribe' means an Indian tribe or Alaska Native 
                organization that conducted a job opportunities 
                and basic skills training program in fiscal 
                year 1995 under section 482(i) (as in effect 
                during fiscal year 1995).
                    ``(C) Use of grant.--Each Indian tribe to 
                which a grant is made under this paragraph 
                shall use the grant for the purpose of 
                operating a program to make work activities 
                available to members of the Indian tribe.
                    ``(D) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, there are appropriated $7,638,474 
                for each fiscal year specified in subparagraph 
                (A) for grants under subparagraph (A).
    ``(b) 3-Year Tribal Family Assistance Plan.--
            ``(1) In general.--Any Indian tribe that desires to 
        receive a tribal family assistance grant shall submit 
        to the Secretary a 3-year tribal family assistance plan 
        that--
                    ``(A) outlines the Indian tribe's approach 
                to providing welfare-related services for the 
                3-year period, consistent with this section;
                    ``(B) specifies whether the welfare-related 
                services provided under the plan will be 
                provided by the Indian tribe or through 
                agreements, contracts, or compacts with 
                intertribal consortia, States, or other 
                entities;
                    ``(C) identifies the population and service 
                area or areas to be served by such plan;
                    ``(D) provides that a family receiving 
                assistance under the plan may not receive 
                duplicative assistance from other State or 
                tribal programs funded under this part;
                    ``(E) identifies the employment 
                opportunities in or near the service area or 
                areas of the Indian tribe and the manner in 
                which the Indian tribe will cooperate and 
                participate in enhancing such opportunities for 
                recipients of assistance under the plan 
                consistent with any applicable State standards; 
                and
                    ``(F) applies the fiscal accountability 
                provisions of section 5(f)(1) of the Indian 
                Self-Determination and Education Assistance Act 
                (25 U.S.C. 450c(f)(1)), relating to the 
                submission of a single-agency audit report 
                required by chapter 75 of title 31, United 
                States Code.
            ``(2) Approval.--The Secretary shall approve each 
        tribal family assistance plan submitted in accordance 
        with paragraph (1).
            ``(3) Consortium of tribes.--Nothing in this 
        section shall preclude the development and submission 
        of a single tribal family assistance plan by the 
        participating Indian tribes of an intertribal 
        consortium.
    ``(c) Minimum Work Participation Requirements and Time 
Limits.--The Secretary, with the participation of Indian 
tribes, shall establish for each Indian tribe receiving a grant 
under this section minimum work participation requirements, 
appropriate time limits for receipt of welfare-related services 
under the grant, and penalties against individuals--
            ``(1) consistent with the purposes of this section;
            ``(2) consistent with the economic conditions and 
        resources available to each tribe; and
            ``(3) similar to comparable provisions in section 
        407(d).
    ``(d) Emergency Assistance.--Nothing in this section shall 
preclude an Indian tribe from seeking emergency assistance from 
any Federal loan program or emergency fund.
    ``(e) Accountability.--Nothing in this section shall be 
construed to limit the ability of the Secretary to maintain 
program funding accountability consistent with--
            ``(1) generally accepted accounting principles; and
            ``(2) the requirements of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450 et seq.).
    ``(f) Penalties.--
            ``(1) Subsections (a)(1), (a)(6), and (b) of 
        section 409, shall apply to an Indian tribe with an 
        approved tribal assistance plan in the same manner as 
        such subsections apply to a State.
            ``(2) Section 409(a)(3) shall apply to an Indian 
        tribe with an approved tribal assistance plan by 
        substituting `meet minimum work participation 
        requirements established under section 412(c)' for 
        `comply with section 407(a)'.
    ``(g) Data Collection and Reporting.--Section 411 shall 
apply to an Indian tribe with an approved tribal family 
assistance plan.
    ``(h) Special Rule for Indian Tribes in Alaska.--
            ``(1) In general.--Notwithstanding any other 
        provision of this section, and except as provided in 
        paragraph (2), an Indian tribe in the State of Alaska 
        that receives a tribal family assistance grant under 
        this section shall use the grant to operate a program 
        in accordance with requirements comparable to the 
        requirements applicable to the program of the State of 
        Alaska funded under this part. Comparability of 
        programs shall be established on the basis of program 
        criteria developed by the Secretary in consultation 
        with the State of Alaska and such Indian tribes.
            ``(2) Waiver.--An Indian tribe described in 
        paragraph (1) may apply to the appropriate State 
        authority to receive a waiver of the requirement of 
        paragraph (1).

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

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

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

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

``SEC. 415. WAIVERS.

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

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

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

``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

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

``SEC. 418. DEFINITIONS.

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

SEC. 106. REPORT ON DATA PROCESSING.

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

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

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

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

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 
        405(c)(2)(C)(vi)), as so redesignated by section 
        321(a)(9)(B) of the Social Security Independence and 
        Program Improvements Act of 1994, is amended--
                    (A) by inserting ``an agency administering 
                a program funded under part A of title IV or'' 
                before ``an agency operating''; and
                    (B) by striking ``A or D of title IV of 
                this Act'' and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is 
        amended by inserting ``under a State program funded 
        under'' before ``part A of title IV''.
    (b) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by 
        striking ``aid'' and inserting ``assistance under a 
        State program funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) 
        is amended--
                    (A) by striking ``aid to families with 
                dependent children'' and inserting ``assistance 
                under a State program funded under part A'';
                    (B) by striking ``such aid'' and inserting 
                ``such assistance''; and
                    (C) by striking ``under section 402(a)(26) 
                or'' and inserting ``pursuant to section 
                408(a)(4) or under section''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) 
        is amended--
                    (A) by striking ``aid under a State plan 
                approved'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking ``in accordance with the 
                standards referred to in section 
                402(a)(26)(B)(ii)'' and inserting ``by the 
                State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in 
        the first sentence by striking ``aid under the State 
        plan approved under part A'' and inserting ``assistance 
        under the State program funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 
        652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and 
        inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is 
        being paid under the State's plan approved under part A 
        or E'' and inserting ``assistance is being provided 
        under the State program funded under part A''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) 
        is amended in the matter following clause (iii) by 
        striking ``aid was being paid under the State's plan 
        approved under part A or E'' and inserting ``assistance 
        was being provided under the State program funded under 
        part A''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is 
        amended in the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent 
                child'' and inserting ``with respect to whom 
                assistance is being provided under the State 
                program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under 
                this part'' after ``found''; and
                    (C) by striking ``under section 
                402(a)(26)'' and inserting ``with the State in 
                establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 408(a)(4)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is 
        amended by striking ``aid under part A of this title'' 
        and inserting ``assistance under a State program funded 
        under part A''.
            (11) Section 454(5)(A) (42 U.S.C. 654(5)(A)) is 
        amended--
                    (A) by striking ``under section 
                402(a)(26)'' and inserting ``pursuant to 
                section 408(a)(4)''; and
                    (B) by striking ``; except that this 
                paragraph shall not apply to such payments for 
                any month following the first month in which 
                the amount collected is sufficient to make such 
                family ineligible for assistance under the 
                State plan approved under part A;'' and 
                inserting a comma.
            (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is 
        amended by striking ``aid under a State plan approved'' 
        and inserting ``assistance under a State program 
        funded''.
            (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is 
        amended by striking ``under section 402(a)(26)''.
            (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) 
        is amended by striking ``402(a)(26)'' and inserting 
        ``408(a)(4)''.
            (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is 
        amended by striking ``aid'' and inserting ``assistance 
        under a State program funded''.
            (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans 
                approved'' and inserting ``assistance under 
                State programs funded''; and
                    (B) by striking ``such aid'' and inserting 
                ``such assistance''.
    (c) Repeal of Part F of Title IV.--Part F of title IV (42 
U.S.C. 681-687) is repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 
402 of this Act'' and inserting ``assistance under a State 
program funded under part A of title IV''.
    (e) Amendments to Title XI.--
            (1) Section 1108 (42 U.S.C. 1308) is amended--
                    (A) by redesignating subsection (c) as 
                subsection (g);
                    (B) by striking all that precedes 
                subsection (c) and inserting the following:
``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE 
            VIRGIN ISLANDS, GUAM, AND AMERICAN SAMOA; 
            LIMITATION ON TOTAL PAYMENTS.
    ``(a) Limitation on Total Payments to Each Territory.--
Notwithstanding any other provision of this Act, the total 
amount certified by the Secretary of Health and Human Services 
under titles I, X, XIV, and XVI, under parts A and B of title 
IV, and under subsection (b) of this section, for payment to 
any territory for a fiscal year shall not exceed the ceiling 
amount for the territory for the fiscal year.
    ``(b) Entitlement to Matching Grant.--
            ``(1) In general.--Each territory shall be entitled 
        to receive from the Secretary for each fiscal year a 
        grant in an amount equal to 75 percent of the amount 
        (if any) by which--
                    ``(A) the total expenditures of the 
                territory during the fiscal year under the 
                territory programs funded under parts A and B 
                of title IV; exceeds
                    ``(B) the sum of--
                            ``(i) the total amount required to 
                        be paid to the territory (other than 
                        with respect to child care) under 
                        former section 403 (as in effect on 
                        September 30, 1995) for fiscal year 
                        1995, which shall be determined by 
                        applying subparagraphs (C) and (D) of 
                        section 403(a)(1) to the territory;
                            ``(ii) the total amount required to 
                        be paid to the territory under former 
                        section 434 (as so in effect) for 
                        fiscal year 1995; and
                            ``(iii) the total amount expended 
                        by the territory during fiscal year 
                        1995 pursuant to parts A, B, and F of 
                        title IV (as so in effect), other than 
                        for child care.
            ``(2) Use of grant.--Any territory to which a grant 
        is made under paragraph (1) may expend the amount under 
        any program operated or funded under any provision of 
        law specified in subsection (a).
    ``(c) Definitions.--As used in this section:
            ``(1) Territory.--The term `territory' means Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
            ``(2) Ceiling amount.--The term `ceiling amount' 
        means, with respect to a territory and a fiscal year, 
        the mandatory ceiling amount with respect to the 
        territory plus the discretionary ceiling amount with 
        respect to the territory, reduced for the fiscal year 
        in accordance with subsection (f).
            ``(3) Mandatory ceiling amount.--The term 
        `mandatory ceiling amount' means--
                    ``(A) $105,538,000 with respect to Puerto 
                Rico;
                    ``(B) $4,902,000 with respect to Guam;
                    ``(C) $3,742,000 with respect to the Virgin 
                Islands; and
                    ``(D) $1,122,000 with respect to American 
                Samoa.
            ``(4) Discretionary ceiling amount.--The term 
        `discretionary ceiling amount' means, with respect to a 
        territory and a fiscal year, the total amount 
        appropriated pursuant to subsection (d)(3) for the 
        fiscal year for payment to the territory.
            ``(5) Total amount expended by the territory.--The 
        term `total amount expended by the territory'--
                    ``(A) does not include expenditures during 
                the fiscal year from amounts made available by 
                the Federal Government; and
                    ``(B) when used with respect to fiscal year 
                1995, also does not include--
                            ``(i) expenditures during fiscal 
                        year 1995 under subsection (g) or (i) 
                        of section 402 (as in effect on 
                        September 30, 1995); or
                            ``(ii) any expenditures during 
                        fiscal year 1995 for which the 
                        territory (but for section 1108, as in 
                        effect on September 30, 1995) would 
                        have received reimbursement from the 
                        Federal Government.
    ``(d) Discretionary Grants.--
            ``(1) In general.--The Secretary shall make a grant 
        to each territory for any fiscal year in the amount 
        appropriated pursuant to paragraph (3) for the fiscal 
        year for payment to the territory.
            ``(2) Use of grant.--Any territory to which a grant 
        is made under paragraph (1) may expend the amount under 
        any program operated or funded under any provision of 
        law specified in subsection (a).
            ``(3) Limitation on authorization of 
        appropriations.--For grants under paragraph (1), there 
        are authorized to be appropriated to the Secretary for 
        each fiscal year--
                    ``(A) $7,951,000 for payment to Puerto 
                Rico;
                    ``(B) $345,000 for payment to Guam;
                    ``(C) $275,000 for payment to the Virgin 
                Islands; and
                    ``(D) $190,000 for payment to American 
                Samoa.
    ``(e) Authority To Transfer Funds Among Programs.--
Notwithstanding any other provision of this Act, any territory 
to which an amount is paid under any provision of law specified 
in subsection (a) may use part or all of the amount to carry 
out any program operated by the territory, or funded, under any 
other such provision of law.
    ``(f) Maintenance of Effort.--The ceiling amount with 
respect to a territory shall be reduced for a fiscal year by an 
amount equal to the amount (if any) by which--
            ``(1) the total amount expended by the territory 
        under all programs of the territory operated pursuant 
        to the provisions of law specified in subsection (a) 
        (as such provisions were in effect for fiscal year 
        1995) for fiscal year 1995; exceeds
            ``(2) the total amount expended by the territory 
        under all programs of the territory that are funded 
        under the provisions of law specified in subsection (a) 
        for the fiscal year that immediately precedes the 
        fiscal year referred to in the matter preceding 
        paragraph (1).''; and
                    (C) by striking subsections (d) and (e).
            (2) Section 1109 (42 U.S.C. 1309) is amended by 
        striking ``or part A of title IV,''.
            (3) Section 1115 (42 U.S.C. 1315) is amended--
                    (A) in subsection (a)(2)--
                            (i) by inserting ``(A)'' after 
                        ``(2)'';
                            (ii) by striking ``403,'';
                            (iii) by striking the period at the 
                        end and inserting ``, and''; and
                            (iv) by adding at the end the 
                        following new subparagraph:
            ``(B) costs of such project which would not 
        otherwise be a permissible use of funds under part A of 
        title IV and which are not included as part of the 
        costs of projects under section 1110, shall to the 
        extent and for the period prescribed by the Secretary, 
        be regarded as a permissible use of funds under such 
        part.''; and
                    (B) in subsection (c)(3), by striking 
                ``under the program of aid to families with 
                dependent children'' and inserting ``part A of 
                such title''.
            (4) Section 1116 (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and 
                (d), by striking ``or part A of title IV,''; 
                and
                    (B) in subsection (a)(3), by striking 
                ``404,''.
            (5) Section 1118 (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title 
                IV,''; and
                    (C) by striking ``, and shall, in the case 
                of American Samoa, mean 75 per centum with 
                respect to part A of title IV''.
            (6) Section 1119 (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; 
                and
                    (B) by striking ``403(a),''.
            (7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is 
        amended by striking ``or part A of title IV,''.
            (8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
            (9) Section 1137 (42 U.S.C. 1320b-7) is amended--
                    (A) in subsection (b), by striking 
                paragraph (1) and inserting the following:
            ``(1) any State program funded under part A of 
        title IV of this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this 
                        subsection--'' and all that follows 
                        through ``(ii) in'' and inserting ``In 
                        this subsection, in'';
                            (ii) by redesignating subclauses 
                        (I), (II), and (III) as clauses (i), 
                        (ii), and (iii); and
                            (iii) by moving such redesignated 
                        material 2 ems to the left.
    (f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
1352(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 
402 of this Act'' and inserting ``assistance under a State 
program funded under part A of title IV''.
    (g) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11), as in effect without regard 
to the amendment made by section 301 of the Social Security 
Amendments of 1972 (42 U.S.C. 1382 note), is amended by 
striking ``aid under the State plan approved'' and inserting 
``assistance under a State program funded''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is 
amended to read as follows: ``(A) a State program funded under 
part A of title IV,''.
    (i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 
1396a(j)) is amended by striking ``1108(c)'' and inserting 
``1108(g)''.
SEC. 109. CONFORMING AMENDMENTS TO 
THE FOOD STAMP ACT OF 1977 AND 
RELATED PROVISIONS.
    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``plan approved'' and all that follows through 
        ``title IV of the Social Security Act'' and inserting 
        ``program funded under part A of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq.)'';
            (2) in subsection (d)--
                    (A) in paragraph (5), by striking 
                ``assistance to families with dependent 
                children'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking paragraph (13) and 
                redesignating paragraphs (14), (15), and (16) 
                as paragraphs (13), (14), and (15), 
                respectively;
            (3) in subsection (j), by striking ``plan approved 
        under part A of title IV of such Act (42 U.S.C. 601 et 
        seq.)'' and inserting ``program funded under part A of 
        title IV of the Act (42 U.S.C. 601 et seq.)''; and
            (4) by striking subsection (m).
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State 
        plan approved'' and inserting ``the State program 
        funded''; and
            (2) in subsection (e)(6), by striking ``aid to 
        families with dependent children'' and inserting 
        ``benefits under a State program funded''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is 
amended by striking ``State plans under the Aid to Families 
with Dependent Children Program under'' and inserting ``State 
programs funded under part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), 
        by striking ``to aid to families with dependent 
        children under part A of title IV of the Social 
        Security Act'' and inserting ``or are receiving 
        assistance under a State program funded under part A of 
        title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.)''; and
            (2) in subsection (b)(3), by adding at the end the 
        following new subparagraph:
             ``(I) The Secretary may not grant a waiver under 
        this paragraph on or after October 1, 1995. Any 
        reference in this paragraph to a provision of title IV 
        of the Social Security Act shall be deemed to be a 
        reference to such provision as in effect on September 
        30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking 
        ``operating--'' and all that follows through ``(ii) any 
        other'' and inserting ``operating any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1) A 
                        household'' and inserting ``(b) A 
                        household''; and
                            (ii) in subparagraph (B), by 
                        striking ``training program'' and 
                        inserting ``activity'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) 
                through (F) as paragraphs (1) through (6), 
                respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer 
Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note) 
is amended by striking ``the program for aid to families with 
dependent children'' and inserting ``the State program 
funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 
1758) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C)(ii)(II)--
                            (i) by striking ``program for aid 
                        to families with dependent children'' 
                        and inserting ``State program funded''; 
                        and
                            (ii) by inserting before the period 
                        at the end the following: ``that the 
                        Secretary determines complies with 
                        standards established by the Secretary 
                        that ensure that the standards under 
                        the State program are comparable to or 
                        more restrictive than those in effect 
                        on June 1, 1995''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``an AFDC 
                                assistance unit (under the aid 
                                to families with dependent 
                                children program authorized'' 
                                and inserting ``a family (under 
                                the State program funded''; and
                                    (II) by striking ``, in a 
                                State'' and all that follows 
                                through ``9902(2)))'' and 
                                inserting ``that the Secretary 
                                determines complies with 
                                standards established by the 
                                Secretary that ensure that the 
                                standards under the State 
                                program are comparable to or 
                                more restrictive than those in 
                                effect on June 1, 1995''; and
                            (ii) in subparagraph (B), by 
                        striking ``aid to families with 
                        dependent children'' and inserting 
                        ``assistance under the State program 
                        funded under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et 
                        seq.) that the Secretary determines 
                        complies with standards established by 
                        the Secretary that ensure that the 
                        standards under the State program are 
                        comparable to or more restrictive than 
                        those in effect on June 1, 1995''; and
            (2) in subsection (d)(2)(C)--
                    (A) by striking ``program for aid to 
                families with dependent children'' and 
                inserting ``State program funded''; and
                    (B) by inserting before the period at the 
                end the following: ``that the Secretary 
                determines complies with standards established 
                by the Secretary that ensure that the standards 
                under the State program are comparable to or 
                more restrictive than those in effect on June 
                1, 1995''.
    (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
            (1) by striking ``program for aid to families with 
        dependent children established'' and inserting ``State 
        program funded''; and
            (2) by inserting before the semicolon the 
        following: ``that the Secretary determines complies 
        with standards established by the Secretary that ensure 
        that the standards under the State program are 
        comparable to or more restrictive than those in effect 
        on June 1, 1995''.

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

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

SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

    (a) In General.--Whenever an organization that accepts 
Federal funds under this Act or the amendments made by this Act 
makes any communication that in any way intends to promote 
public support or opposition to any policy of a Federal, State, 
or local government through any broadcasting station, 
newspaper, magazine, outdoor advertising facility, direct 
mailing, or any other type of general public advertising, such 
communication shall state the following: ``This was prepared 
and paid for by an organization that accepts taxpayer 
dollars.''.
    (b) Failure To Comply.--If an organization makes any 
communication described in subsection (a) and fails to provide 
the statement required by that subsection, such organization 
shall be ineligible to receive Federal funds under this Act or 
the amendments made by this Act.
    (c) Definition.--For purposes of this section, the term 
``organization'' means an organization described in section 
501(c) of the Internal Revenue Code of 1986.
    (d) Effective Dates.--This section shall take effect--
            (1) with respect to printed communications 1 year 
        after the date of enactment of this Act; and
            (2) with respect to any other communication on the 
        date of enactment of this Act.
SEC. 113. MODIFICATIONS TO THE JOB 
OPPORTUNITIES FOR CERTAIN LOW-
INCOME INDIVIDUALS PROGRAM.
    Section 505 of the Family Support Act of 1988 (42 U.S.C. 
1315 note) is amended--
            (1) in the heading, by striking ``DEMONSTRATION'';
            (2) by striking ``demonstration'' each place such 
        term appears;
            (3) in subsection (a), by striking ``in each of 
        fiscal years'' and all that follows through ``10'' and 
        inserting ``shall enter into agreements with'';
            (4) in subsection (b)(3), by striking ``aid to 
        families with dependent children under part A of title 
        IV of the Social Security Act'' and inserting 
        ``assistance under the program funded part A of title 
        IV of the Social Security Act of the State in which the 
        individual resides'';
            (5) in subsection (c)--
                    (A) in paragraph (1)(C), by striking ``aid 
                to families with dependent children under part 
                A of title IV of the Social Security Act'' and 
                inserting ``assistance under a State program 
                funded part A of title IV of the Social 
                Security Act'';
                    (B) in paragraph (2), by striking ``aid to 
                families with dependent children under title IV 
                of such Act'' and inserting ``assistance under 
                a State program funded part A of title IV of 
                the Social Security Act'';
            (6) in subsection (d), by striking ``job 
        opportunities and basic skills training program (as 
        provided for under title IV of the Social Security 
        Act)'' and inserting ``the State program funded under 
        part A of title IV of the Social Security Act''; and
            (7) by striking subsections (e) through (g) and 
        inserting the following:
    ``(e) Authorization of Appropriations.--For the purpose of 
conducting projects under this section, there is authorized to 
be appropriated an amount not to exceed $25,000,000 for any 
fiscal year.''.
SEC. 114. MEDICAID ELIGIBILITY 
UNDER TITLE IV OF THE SOCIAL 
SECURITY ACT.
    (a) In General.--Section 1902(a)(10)(A) (42 U.S.C. 
1396a(a)(10)(A)) is amended--
            (1) in clause (i), by amending subclause (I) to 
        read as follows:
                                    ``(I) who are receiving a 
                                foster care maintenance payment 
                                described in section 
                                423(b)(1)(A) or an adoption 
                                assistance payment described in 
                                section 423(b)(1)(B),''; and
            (2) in clause (ii)--
                    (A) by striking ``or'' at the end of 
                subclause (XI),
                    (B) by adding ``or'' at the end of 
                subclause (XII), and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(XIII) to individuals 
                                (which may include individuals 
                                who receive payment under any 
                                plan of the State approved 
                                under title I, X, XIV, or XVI, 
                                or a program funded under part 
                                A of title IV of this Act, as 
                                amended by the Personal 
                                Responsibility and Work 
                                Opportunity Act of 1995, and 
                                other similar individuals) who 
                                meet such eligibility criteria 
                                as the State establishes, so 
                                long as the State demonstrates 
                                to the satisfaction of the 
                                Secretary that the application 
                                of such criteria does not 
                                result in Federal expenditures 
                                under this title that are 
                                greater than the Federal 
                                expenditures that would have 
                                been made under this title if 
                                such Act had not been 
                                enacted,''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply to medical assistance for items and services 
furnished on or after the date of the enactment of this Act.
SEC. 115. SECRETARIAL SUBMISSION OF 
LEGISLATIVE PROPOSAL FOR TECHNICAL 
AND CONFORMING AMENDMENTS.
    Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Health and Human Services and the 
Commissioner of Social Security, in consultation, as 
appropriate, with the heads of other Federal agencies, shall 
submit to the appropriate committees of Congress a legislative 
proposal proposing such technical and conforming amendments as 
are necessary to bring the law into conformity with the policy 
embodied in this title.

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

    (a) In General.--Except as otherwise provided in this 
title, this title and the amendments made by this title shall 
take effect on October 1, 1996.
    (b) Transition Rules.--
            (1) State option to accelerate effective date.--
                    (A) In general.--If, within 3 months after 
                the date of the enactment of this Act, the 
                Secretary of Health and Human Services receives 
                from a State a plan described in section 402(a) 
                of the Social Security Act (as added by the 
                amendment made by section 103 of this Act), 
                this title and the amendments made by this 
                title (except section 409(a)(7) of the Social 
                Security Act, as added by the amendment made by 
                such section 103) shall also apply with respect 
                to the State during the period that begins on 
                the date of such receipt and ends on September 
                30, 1996, except that the State shall be 
                considered an eligible State for fiscal year 
                1996 for purposes of part A of title IV of the 
                Social Security Act (as in effect pursuant to 
                the amendment made by such section 103).
                    (B) Limitations on federal obligations.--
                            (i) Under afdc program.--If the 
                        Secretary receives from a State the 
                        plan referred to in subparagraph (A), 
                        the total obligations of the Federal 
                        Government to the State under part A of 
                        title IV of the Social Security Act (as 
                        in effect on September 30, 1995) with 
                        respect to expenditures by the State 
                        after the date of the enactment of this 
                        Act shall not exceed an amount equal 
                        to--
                                    (I) the State family 
                                assistance grant (as defined in 
                                section 403(a)(1)(B) of the 
                                Social Security Act (as in 
                                effect pursuant to the 
                                amendment made by section 103 
                                of this Act)); minus
                                    (II) any obligations of the 
                                Federal Government to the State 
                                under part A of title IV of the 
                                Social Security Act (as in 
                                effect on September 30, 1995) 
                                with respect to expenditures by 
                                the State during the period 
                                that begins on October 1, 1995, 
                                and ends on the day before the 
                                date of the enactment of this 
                                Act.
                            (ii) Under temporary family 
                        assistance program.--Notwithstanding 
                        section 403(a)(1) of the Social 
                        Security Act (as in effect pursuant to 
                        the amendment made by section 103 of 
                        this Act), the total obligations of the 
                        Federal Government to a State under 
                        such section 403(a)(1) for fiscal year 
                        1996 after the termination of the State 
                        AFDC program shall not exceed an amount 
                        equal to--
                                    (I) the amount described in 
                                clause (i)(I) of this 
                                subparagraph; minus
                                    (II) any obligations of the 
                                Federal Government to the State 
                                under part A of title IV of 
theSocial Security Act (as in effect on September 30, 1995) with 
respect to expenditures by the State on or after October 1, 1995.
                            (iii) Child care obligations 
                        excluded in determining federal afdc 
                        obligations.--As used in this 
                        subparagraph, the term ``obligations of 
                        the Federal Government to the State 
                        under part A of title IV of the Social 
                        Security Act'' does not include any 
                        obligation of the Federal Government 
                        with respect to child care expenditures 
                        by the State.
                    (C) Submission of state plan for fiscal 
                year 1996 deemed acceptance of grant 
                limitations and formula.--The submission of a 
                plan by a State pursuant to subparagraph (A) is 
                deemed to constitute the State's acceptance of 
                the grant reductions under subparagraph (B)(ii) 
                (including the formula for computing the amount 
                of the reduction).
                    (D) Definitions.--As used in this 
                paragraph:
                            (i) State afdc program.--The term 
                        ``State AFDC program'' means the State 
                        program under parts A and F of title IV 
                        of the Social Security Act (as in 
                        effect on September 30, 1995).
                            (ii) State.--The term ``State'' 
                        means the 50 States and the District of 
                        Columbia.
            (2) Claims, actions, and proceedings.--The 
        amendments made by this title shall not apply with 
        respect to--
                    (A) powers, duties, functions, rights, 
                claims, penalties, or obligations applicable to 
                aid, assistance, or services provided before 
                the effective date of this title under the 
                provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized 
                before such date to be commenced, under such 
                provisions.
            (3) Closing out account for those programs 
        terminated or substantially modified by this title.--In 
        closing out accounts, Federal and State officials may 
        use scientifically acceptable statistical sampling 
        techniques. Claims made with respect to State 
        expenditures under a State plan approved under part A 
        of title IV of the Social Security Act (as in effect 
        before the effective date of this Act) with respect to 
        assistance or services provided on or before September 
        30, 1995, shall be treated as claims with respect to 
        expenditures during fiscal year 1995 for purposes of 
        reimbursement even if payment was made by a State on or 
        after October 1, 1995. Each State shall complete the 
        filing of all claims under the State plan (as so in 
        effect) no later than September 30, 1997. The head of 
        each Federal department shall--
                    (A) use the single audit procedure to 
                review and resolve any claims in connection 
                with the close out of programs under such State 
                plans; and
                    (B) reimburse States for any payments made 
                for assistance or services provided during a 
                prior fiscal year from funds for fiscal year 
                1995, rather than from funds authorized by this 
                title.
            (4) Continuance in office of assistant secretary 
        for family support.--The individual who, on the day 
        before the effective date of this title, is serving as 
        Assistant Secretary for Family Support within the 
        Department of Health and Human Services shall, until a 
        successor is appointed to such position--
                    (A) continue to serve in such position; and
                    (B) except as otherwise provided by law--
                            (i) continue to perform the 
                        functions of the Assistant Secretary 
                        for Family Support under section 417 of 
                        the Social Security Act (as in effect 
                        before such effective date); and
                            (ii) have the powers and duties of 
                        the Assistant Secretary for Family 
                        Support under section 416 of the Social 
                        Security Act (as in effect pursuant to 
                        the amendment made by section 103 of 
                        this Act).

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

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

                  Subtitle A--Eligibility Restrictions

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

               Subtitle B--Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

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

SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

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

        ``Disposal of Resources for Less Than Fair Market Value

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

``Trusts

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

SEC. 215. REGULATIONS.

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

               Subtitle C--State Supplementation Programs

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

   Subtitle D--Studies Regarding Supplemental Security Income Program

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

                       ``ANNUAL REPORT ON PROGRAM

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

SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

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

SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

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

      Subtitle E--National Commission on the Future of Disability

SEC. 241. ESTABLISHMENT.

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

SEC. 242. DUTIES OF THE COMMISSION.

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

SEC. 243. MEMBERSHIP.

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

SEC. 244. STAFF AND SUPPORT SERVICES.

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

SEC. 245. POWERS OF COMMISSION.

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

SEC. 246. REPORTS.

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

SEC. 247. TERMINATION.

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

SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

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

                 Subtitle F--Retirement Age Eligibility

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

                            ``Retirement Age

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

                        TITLE III--CHILD SUPPORT

SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

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

     Subtitle A--Eligibility for Services; Distribution of Payments

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

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

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

SEC. 303. PRIVACY SAFEGUARDS.

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

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

                  Subtitle B--Locate and Case Tracking

SEC. 311. STATE CASE REGISTRY.

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

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

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

SEC. 313. STATE DIRECTORY OF NEW HIRES.

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

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

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

SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

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

SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

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

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

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

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

SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

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

SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

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

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

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

                  Subtitle D--Paternity Establishment

SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

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

SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

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

             Subtitle E--Program Administration and Funding

SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

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

SEC. 343. REQUIRED REPORTING PROCEDURES.

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

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

``SEC. 454A. AUTOMATED DATA PROCESSING.

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

SEC. 345. TECHNICAL ASSISTANCE.

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

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

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

      Subtitle F--Establishment and Modification of Support Orders

SEC. 351. SIMPLIFIED PROCESS FOR 
REVIEW AND ADJUSTMENT OF CHILD 
SUPPORT ORDERS.
    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
read as follows:
            ``(10) Review and adjustment of support orders upon 
        request.--Procedures under which the State shall review 
        and adjust each support order being enforced under this 
        part upon the request of either parent or the State if 
        there is an assignment. Such procedures shall provide 
        the following:
                    ``(A) In general.--
                            ``(i) 3-year cycle.--Except as 
                        provided in subparagraphs (B) and (C), 
                        the State shall review and, as 
                        appropriate, adjust the support order 
                        every 3 years, taking into account the 
                        best interests of the child involved.
                            ``(ii) Methods of adjustment.--The 
                        State may elect to review and, if 
                        appropriate, adjust an order pursuant 
                        to clause (i) by--
                                    ``(I) reviewing and, if 
                                appropriate, adjusting the 
                                order in accordance with the 
                                guidelines established pursuant 
                                to section 467(a) if the amount 
                                of the child support award 
                                under the order differs from 
                                the amount that would be 
                                awarded in accordance with the 
                                guidelines; or
                                    ``(II) applying a cost-of-
                                living adjustment to the order 
                                in accordance with a formula 
                                developed by the State and 
                                permit either party to contest 
                                the adjustment, within 30 days 
                                after the date of the notice of 
                                the adjustment, by making a 
                                request for review and, if 
                                appropriate, adjustment of the 
                                order in accordance with the 
                                child support guidelines 
                                established pursuant to section 
                                467(a).
                            ``(iii) No proof of change in 
                        circumstances necessary.--Any 
                        adjustment under this subparagraph (A) 
                        shall be made without a requirement for 
                        proof or showing of a change in 
                        circumstances.
                    ``(B) Automated method.--The State may use 
                automated methods (including automated 
                comparisons with wage or State income tax data) 
                to identify orders eligible for review, conduct 
                the review, identify orders eligible for 
                adjustment, and apply the appropriate 
                adjustment to the orders eligible for 
                adjustment under the threshold established by 
                the State.
                    ``(C) Request upon substantial change in 
                circumstances.--The State shall, at the request 
                of either parent subject to such an order or of 
                any State child support enforcement agency, 
                review and, if appropriate, adjust the order in 
                accordance with the guidelines established 
                pursuant to section 467(a) based upon a 
                substantial change in the circumstances of 
                either parent.
                    ``(D) Notice of right to review.--The State 
                shall provide notice not less than once every 3 
                years to the parents subject to such an order 
                informing them of their right to request the 
                State to review and, if appropriate, adjust the 
                order pursuant to this paragraph. The notice 
                may be included in the order.''.
SEC. 352. FURNISHING CONSUMER 
REPORTS FOR CERTAIN PURPOSES 
RELATING TO CHILD SUPPORT.
    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
1681b) is amended by adding at the end the following new 
paragraphs:
            ``(4) In response to a request by the head of a 
        State or local child support enforcement agency (or a 
        State or local government official authorized by the 
        head of such an agency), if the person making the 
        request certifies to the consumer reporting agency 
        that--
                    ``(A) the consumer report is needed for the 
                purpose of establishing an individual's 
                capacity to make child support payments or 
                determining the appropriate level of such 
                payments;
                    ``(B) the paternity of the consumer for the 
                child to which the obligation relates has been 
                established or acknowledged by the consumer in 
                accordance with State laws under which the 
                obligation arises (if required by those laws);
                    ``(C) the person has provided at least 10 
                days' prior notice to the consumer whose report 
                is requested, by certified or registered mail 
                to the last known address of the consumer, that 
                the report will be requested; and
                    ``(D) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be 
                used in connection with any other civil, 
                administrative, or criminal proceeding, or for 
                any other purpose.
            ``(5) To an agency administering a State plan under 
        section 454 of the Social Security Act (42 U.S.C. 654) 
        for use to set an initial or modified child support 
        award.''.

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

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

               Subtitle G--Enforcement of Support Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

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

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

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

    ``(a) Consent to Support Enforcement.--Notwithstanding any 
other provision of law (including section 207 of this Act and 
section 5301 of title 38, United States Code), effective 
January 1, 1975, moneys (the entitlement to which is based upon 
remuneration for employment) due from, or payable by, the 
United States or the District of Columbia (including any 
agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United 
States, shall be subject, in like manner and to the same extent 
as if the United States or the District of Columbia were a 
private person, to withholding in accordance with State law 
enacted pursuant to subsections (a)(1) and (b) of section 466 
and regulations of the Secretary under such subsections, and to 
any other legal process brought, by a State agency 
administering a program under a State plan approved under this 
part or by an individual obligee, to enforce the legal 
obligation of the individual to provide child support or 
alimony.
    ``(b) Consent to Requirements Applicable to Private 
Person.--With respect to notice to withhold income pursuant to 
subsection (a)(1) or (b) of section 466, or any other order or 
process to enforce support obligations against an individual 
(if the order or process contains or is accompanied by 
sufficient data to permit prompt identification of the 
individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same 
requirements as would apply if the entity were a private 
person, except as otherwise provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each 
        agency subject to this section shall--
                    ``(A) designate an agent or agents to 
                receive orders and accept service of process in 
                matters relating to child support or alimony; 
                and
                    ``(B) annually publish in the Federal 
                Register the designation of the agent or 
                agents, identified by title or position, 
                mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect 
        pursuant to subsection (a)(1) or (b) of section 466, or 
        is effectively served with any order, process, or 
        interrogatory, with respect to an individual's child 
        support or alimony payment obligations, the agent 
        shall--
                    ``(A) as soon as possible (but not later 
                than 15 days) thereafter, send written notice 
                of the notice or service (together with a copy 
                of the notice or service) to the individual at 
                the duty station or last-known home address of 
                the individual;
                    ``(B) within 30 days (or such longer period 
                as may be prescribed by applicable State law) 
                after receipt of a notice pursuant to such 
                State procedures, comply with all applicable 
                provisions of section 466; and
                    ``(C) within 30 days (or such longer period 
                as may be prescribed by applicable State law) 
                after effective service of any other such 
                order, process, or interrogatory, respond to 
                the order, process, or interrogatory.
    ``(d) Priority of Claims.--If a governmental entity 
specified in subsection (a) receives notice or is served with 
process, as provided in this section, concerning amounts owed 
by an individual to more than 1 person--
            ``(1) support collection under section 466(b) must 
        be given priority over any other process, as provided 
        in section 466(b)(7);
            ``(2) allocation of moneys due or payable to an 
        individual among claimants under section 466(b) shall 
        be governed by section 466(b) and the regulations 
        prescribed under such section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy 
        any other such processes on a first-come, first-served 
        basis, with any such process being satisfied out of 
        such moneys as remain after the satisfaction of all 
        such processes which have been previously served.
    ``(e) No Requirement to Vary Pay Cycles.--A governmental 
entity that is affected by legal process served for the 
enforcement of an individual's child support or alimony payment 
obligations shall not be required to vary its normal pay and 
disbursement cycle in order to comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government 
        of the District of Columbia, nor any disbursing officer 
        shall be liable with respect to any payment made from 
        moneys due or payable from the United States to any 
        individual pursuant to legal process regular on its 
        face, if the payment is made in accordance with this 
        section and the regulations issued to carry out this 
        section.
            ``(2) No Federal employee whose duties include 
        taking actions necessary to comply with the 
        requirements of subsection (a) with regard to any 
        individual shall be subject under any law to any 
        disciplinary action or civil or criminal liability or 
        penalty for, or on account of, any disclosure of 
        information made by the employee in connection with the 
        carrying out of such actions.
    ``(g) Regulations.--Authority to promulgate regulations for 
the implementation of this section shall, insofar as this 
section applies to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative 
        or judicial branches of the Federal Government) or the 
        government of the District of Columbia, be vested in 
        the President (or the designee of the President);
            ``(2) the legislative branch of the Federal 
        Government, be vested jointly in the President pro 
        tempore of the Senate and the Speaker of the House of 
        Representatives (or their designees), and
            ``(3) the judicial branch of the Federal 
        Government, be vested in the Chief Justice of the 
        United States (or the designee of the Chief Justice).
    ``(h) Moneys Subject to Process.--
            ``(1) In general.--Subject to paragraph (2), moneys 
        paid or payable to an individual which are considered 
        to be based upon remuneration for employment, for 
        purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable 
                        for personal services of the 
                        individual, whether the compensation is 
                        denominated as wages, salary, 
                        commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, 
                        sick pay, and incentive pay);
                            ``(ii) periodic benefits (including 
                        a periodic benefit as defined in 
                        section 228(h)(3)) or other payments--
                                    ``(I) under the insurance 
                                system established by title II;
                                    ``(II) under any other 
                                system or fund established by 
                                the United States which 
                                provides for the payment of 
                                pensions, retirement or retired 
                                pay, annuities, dependents' or 
                                survivors' benefits, or similar 
                                amounts payable on account of 
                                personal services performed by 
                                the individual or any other 
                                individual;
                                    ``(III) as compensation for 
                                death under any Federal 
                                program;
                                    ``(IV) under any Federal 
                                program established to provide 
                                `black lung' benefits; or
                                    ``(V) by the Secretary of 
                                Veterans Affairs as 
                                compensation for a service-
                                connected disability paid by 
                                the Secretary to a former 
                                member of the Armed Forces who 
                                is in receipt of retired or 
                                retainer pay if the former 
                                member has waived a portion of 
                                the retired or retainer pay in 
                                order to receive such 
                                compensation; and
                            ``(iii) worker's compensation 
                        benefits paid under Federal or State 
                        law but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or 
                        otherwise, to defray expenses incurred 
                        by the individual in carrying out 
                        duties associated with the employment 
                        of the individual; or
                            ``(ii) as allowances for members of 
                        the uniformed services payable pursuant 
                        to chapter 7 of title 37, United States 
                        Code, as prescribed by the Secretaries 
                        concerned (defined by section 101(5) of 
                        such title) as necessary for the 
                        efficient performance of duty.
            ``(2) Certain amounts excluded.--In determining the 
        amount of any moneys due from, or payable by, the 
        United States to any individual, there shall be 
        excluded amounts which--
                    ``(A) are owed by the individual to the 
                United States;
                    ``(B) are required by law to be, and are, 
                deducted from the remuneration or other payment 
                involved, including Federal employment taxes, 
                and fines and forfeitures ordered by court-
                martial;
                    ``(C) are properly withheld for Federal, 
                State, or local income tax purposes, if the 
                withholding of the amounts is authorized or 
                required by law and if amounts withheld are not 
                greater than would be the case if the 
                individual claimed all dependents to which he 
                was entitled (the withholding of additional 
                amounts pursuant to section 3402(i) of the 
                Internal Revenue Code of 1986 may be permitted 
                only when the individual presents evidence of a 
                tax obligation which supports the additional 
                withholding);
                    ``(D) are deducted as health insurance 
                premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted 
                for supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--For purposes of this section--
            ``(1) United states.--The term `United States' 
        includes any department, agency, or instrumentality of 
        the legislative, judicial, or executive branch of the 
        Federal Government, the United States Postal Service, 
        the Postal Rate Commission, any Federal corporation 
        created by an Act of Congress that is wholly owned by 
        the Federal Government, and the governments of the 
        territories and possessions of the United States.
            ``(2) Child support.--The term `child support', 
        when used in reference to the legal obligations of an 
        individual to provide such support, means amounts 
        required to be paid under a judgment, decree, or order, 
        whether temporary, final, or subject to modification, 
        issued by a court or an administrative agency of 
        competent jurisdiction, for the support and maintenance 
        of a child, including a child who has attained the age 
        of majority under the law of the issuing State, or a 
        child and the parent with whom the child is living, 
        which provides for monetary support, health care, 
        arrearages or reimbursement, and which may include 
        other related costs and fees, interest and penalties, 
        income withholding, attorney's fees, and other relief.
            ``(3) Alimony.--
                    ``(A) In general.--The term `alimony', when 
                used in reference to the legal obligations of 
                an individual to provide the same, means 
                periodic payments of funds for the support and 
                maintenance of the spouse (or former spouse) of 
                the individual, and (subject to and in 
                accordance with State law) includes separate 
                maintenance, alimony pendente lite, 
                maintenance, and spousal support, and includes 
                attorney's fees, interest, and court costs when 
                and to the extent that the same are expressly 
                made recoverable as such pursuant to a decree, 
                order, or judgment issued in accordance with 
                applicable State law by a court of competent 
                jurisdiction.
                    ``(B) Exceptions.--Such term does not 
                include--
                            ``(i) any child support; or
                            ``(ii) any payment or transfer of 
                        property or its value by an individual 
                        to the spouse or a former spouse of the 
                        individual in compliance with any 
                        community property settlement, 
                        equitable distribution of property, or 
                        other division of property between 
                        spouses or former spouses.
            ``(4) Private person.--The term `private person' 
        means a person who does not have sovereign or other 
        special immunity or privilege which causes the person 
        not to be subject to legal process.
            ``(5) Legal process.--The term `legal process' 
        means any writ, order, summons, or other similar 
        process in the nature of garnishment--
                    ``(A) which is issued by--
                            ``(i) a court or an administrative 
                        agency of competent jurisdiction in any 
                        State, territory, or possession of the 
                        United States;
                            ``(ii) a court or an administrative 
                        agency of competent jurisdiction in any 
                        foreign country with which the United 
                        States has entered into an agreement 
                        which requires the United States to 
                        honor the process; or
                            ``(iii) an authorized official 
                        pursuant to an order of such a court or 
                        an administrative agency of competent 
                        jurisdiction or pursuant to State or 
                        local law; and
                    ``(B) which is directed to, and the purpose 
                of which is to compel, a governmental entity 
                which holds moneys which are otherwise payable 
                to an individual to make a payment from the 
                moneys to another party in order tosatisfy a 
legal obligation of the individual to provide child support or make 
alimony payments.''.
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 
        (42 U.S.C. 661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a 
        of title 5, United States Code, is amended, in 
        subsections (h)(2) and (i), by striking ``sections 459, 
        461, and 462 of the Social Security Act (42 U.S.C. 659, 
        661, and 662)'' and inserting ``section 459 of the 
        Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
            (1) Definition of court.--Section 1408(a)(1) of 
        title 10, United States Code, is amended--
                    (A) by striking ``and'' at the end of 
                subparagraph (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding after subparagraph (C) the 
                following: new subparagraph:
                    ``(D) any administrative or judicial 
                tribunal of a State competent to enter orders 
                for support or maintenance (including a State 
                agency administering a program under a State 
                plan approved under part D of title IV of the 
                Social Security Act), and, for purposes of this 
                subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of 
                Puerto Rico, the Virgin Islands, Guam, and 
                American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) 
        of such title is amended--
                    (A) by inserting ``or a support order, as 
                defined in section 453(p) of the Social 
                Security Act (42 U.S.C. 653(p)),'' before 
                ``which--'';
                    (B) in subparagraph (B)(i), by striking 
                ``(as defined in section 462(b) of the Social 
                Security Act (42 U.S.C. 662(b)))'' and 
                inserting ``(as defined in section 459(i)(2) of 
                the Social Security Act (42 U.S.C. 
                662(i)(2)))''; and
                    (C) in subparagraph (B)(ii), by striking 
                ``(as defined in section 462(c) of the Social 
                Security Act (42 U.S.C. 662(c)))'' and 
                inserting ``(as defined in section 459(i)(3) of 
                the Social Security Act (42 U.S.C. 
                662(i)(3)))''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for 
                Benefit of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the 1st sentence, 
                by inserting ``(or for the benefit of such 
                spouse or former spouse to a State disbursement 
                unit established pursuant to section 454B of 
                the Social Security Act or other public payee 
                designated by a State, in accordance with part 
                D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise 
                directed in accordance with such part D)'' 
                before ``in an amount sufficient''.
            (4) Relationship to part d of title iv.--Section 
        1408 of such title is amended by adding at the end the 
        following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving an 
order providing for payment of child support (as defined in 
section 459(i)(2) of the Social Security Act) by a member who 
has never been married to the other parent of the child, the 
provisions of this section shall not apply, and the case shall 
be subject to the provisions of section 459 of such Act.''.
    (d) Effective Date.--The amendments made by this section 
shall become effective 6 months after the date of the enactment 
of this Act.
SEC. 363. ENFORCEMENT OF CHILD 
SUPPORT OBLIGATIONS OF MEMBERS OF 
THE ARMED FORCES.
    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The 
        Secretary of Defense shall establish a centralized 
        personnel locator service that includes the address of 
        each member of the Armed Forces under the jurisdiction 
        of the Secretary. Upon request of the Secretary of 
        Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel 
        locator service.
            (2) Type of address.--
                    (A) Residential address.--Except as 
                provided in subparagraph (B), the address for a 
                member of the Armed Forces shown in the locator 
                service shall be the residential address of 
                that member.
                    (B) Duty address.--The address for a member 
                of the Armed Forces shown in the locator 
                service shall be the duty address of that 
                member in the case of a member--
                            (i) who is permanently assigned 
                        overseas, to a vessel, or to a 
                        routinely deployable unit; or
                            (ii) with respect to whom the 
                        Secretary concerned makes a 
                        determination that the member's 
                        residential address should not be 
                        disclosed due to national security or 
                        safety concerns.
            (3) Updating of locator information.--Within 30 
        days after a member listed in the locator service 
        establishes a new residential address (or a new duty 
        address, in the case of a member covered by paragraph 
        (2)(B)), the Secretary concerned shall update the 
        locator service to indicate the new address of the 
        member.
            (4) Availability of information.--The Secretary of 
        Defense shall make information regarding the address of 
        a member of the Armed Forces listed in the locator 
        service available, on request, to the Federal Parent 
        Locator Service established under section 453 of the 
        Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at 
Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with 
        respect to the Coast Guard when it is not operating as 
        a service in the Navy, shall prescribe regulations to 
        facilitate the granting of leave to a member of the 
        Armed Forces under the jurisdiction of that Secretary 
        in a case in which--
                    (A) the leave is needed for the member to 
                attend a hearing described in paragraph (2);
                    (B) the member is not serving in or with a 
                unit deployed in a contingency operation (as 
                defined in section 101 of title 10, United 
                States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not 
                otherwise require that such leave not be 
                granted.
            (2) Covered hearings.--Paragraph (1) applies to a 
        hearing that is conducted by a court or pursuant to an 
        administrative process established under State law, in 
        connection with a civil action--
                    (A) to determine whether a member of the 
                Armed Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member 
                of the Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection--
                    (A) The term ``court'' has the meaning 
                given that term in section 1408(a) of title 10, 
                United States Code.
                    (B) The term ``child support'' has the 
                meaning given such term in section 459(i) of 
                the Social Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With 
Child Support Orders.--
            (1) Date of certification of court order.--Section 
        1408 of title 10, United States Code, as amended by 
        section 362(c)(4) of this Act, is amended--
                    (A) by redesignating subsections (i) and 
                (j) as subsections (j) and (k), respectively; 
                and
                    (B) by inserting after subsection (h) the 
                following new subsection:
    ``(i) Certification Date.--It is not necessary that the 
date of a certification of the authenticity or completeness of 
a copy of a court order for child support received by the 
Secretary concerned for the purposes of this section be recent 
in relation to the date of receipt by the Secretary.''.
            (2) Payments consistent with assignments of rights 
        to states.--Section 1408(d)(1) of such title is amended 
        by inserting after the 1st sentence the following new 
        sentence: ``In the case of a spouse or former spouse 
        who, pursuant to section 408(a)(4) of the Social 
        Security Act (42 U.S.C. 607(a)(4)), assigns to a State 
        the rights of the spouse or former spouse to receive 
        support, the Secretary concerned may make the child 
        support payments referred to in the preceding sentence 
        to that State in amounts consistent with that 
        assignment of rights.''.
            (3) Arrearages owed by members of the uniformed 
        services.--Section 1408(d) of such title is amended by 
        adding at the end the following new paragraph:
    ``(6) In the case of a court order for which effective 
service is made on the Secretary concerned on or after the date 
of the enactment of this paragraph and which provides for 
payments from the disposable retired pay of a member to satisfy 
the amount of child support set forth in the order, the 
authority provided in paragraph (1) to make payments from the 
disposable retired pay of a member to satisfy the amount of 
child support set forth in a court order shall apply to payment 
of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently 
become due.''.
            (4) Payroll deductions.--The Secretary of Defense 
        shall begin payroll deductions within 30 days after 
        receiving notice of withholding, or for the 1st pay 
        period that begins after such 30-day period.

SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

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

SEC. 366. DEFINITION OF SUPPORT ORDER.

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

SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

SEC. 368. LIENS.

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

SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

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

SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

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

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

SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

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

                      Subtitle H--Medical Support

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

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

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

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

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

                    Subtitle J--Effect of Enactment

SEC. 391. EFFECTIVE DATES.

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

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

              Subtitle A--Eligibility for Federal Benefits

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

SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

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

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

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

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

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

      Subtitle C--Attribution of Income and Affidavits of Support

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

           ``requirements for sponsor's affidavit of support

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

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

SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

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

                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

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

SEC. 432. REAPPLICATION FOR SSI BENEFITS.

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

SEC. 434. STATUTORY CONSTRUCTION.

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

SEC. 436. QUALIFYING QUARTERS.

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

                   Subtitle E--Conforming Amendments

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

          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

SEC. 501. REDUCTIONS.

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

SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

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

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

                   TITLE VI--REFORM OF PUBLIC HOUSING

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

SEC. 603. EFFECTIVE DATE.

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

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

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

SEC. 701. ESTABLISHMENT OF PROGRAM.

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

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

``SEC. 421. PURPOSE.

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

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible 
State' means a State that has submitted to the Secretary, not 
later than October 1, 1996, and every 3 years thereafter, a 
plan which has been signed by the chief executive officer of 
the State and that includes the following:
            ``(1) Outline of child protection program.--A 
        written document that outlines the activities the State 
        intends to conduct to achieve the purpose of this part, 
        including the procedures to be used for--
                    ``(A) receiving and assessing reports of 
                child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) with respect to families in which 
                abuse or neglect has been confirmed, providing 
                services or referral for services for families 
                and children where the State makes a 
                determination that the child may safely remain 
                with the family;
                    ``(D) protecting children by removing them 
                from dangerous settings and ensuring their 
                placement in a safe environment;
                    ``(E) providing training for individuals 
                mandated to report suspected cases of child 
                abuse or neglect;
                    ``(F) protecting children in foster care;
                    ``(G) promoting timely adoptions;
                    ``(H) protecting the rights of families, 
                using adult relatives as the preferred 
                placement for children separated from their 
                parents where such relatives meet the relevant 
                State child protection standards;
                    ``(I) providing services to individuals, 
                families, or communities, either directly or 
                through referral, that are aimed at preventing 
                the occurrence of child abuse and neglect; and
                    ``(J) establishing and responding to 
                citizen review panels under section 426.
            ``(2) Certification of state law requiring the 
        reporting of child abuse and neglect.--A certification 
        that the State has in effect laws that require public 
        officials and other professionals to report, in good 
        faith, actual or suspected instances of child abuse or 
        neglect.
            ``(3) Certification of procedures for screening, 
        safety assessment, and prompt investigation.--A 
        certification that the State has in effect procedures 
        for receiving and responding to reports of child abuse 
        or neglect, including the reports described in 
        paragraph (2), and for the immediate screening, safety 
        assessment, and prompt investigation of such reports.
            ``(4) Certification of state procedures for removal 
        and placement of abused or neglected children.--A 
        certification that the State has in effect procedures 
        for the removal from families and placement of abused 
        or neglected children and of any other child in the 
        same household who may also be in danger of abuse or 
        neglect.
            ``(5) Certification of provisions for immunity from 
        prosecution.--A certification that the State has in 
        effect laws requiring immunity from prosecution under 
        State and local laws and regulations for individuals 
        making good faith reports of suspected or known 
        instances of child abuse or neglect.
            ``(6) Certification of provisions and procedures 
        for expungement of certain records.--A certification 
        that the State has in effect laws and procedures 
        requiring the facilitation of the prompt expungement of 
        any records that are accessible to the general public 
        or are used for purposes of employment or other 
        background checks in cases determined to be 
        unsubstantiated or false.
            ``(7) Certification of provisions and procedures 
        relating to appeals.--A certification that not later 
        then 2 years after the date of the enactment of this 
        part, the State shall have laws and procedures in 
        effect affording individuals an opportunity to appeal 
        an official finding of abuse or neglect.
            ``(8) Certification of state procedures for 
        developing and reviewing written plans for permanent 
        placement ofremoved children.--A certification that the 
State has in effect procedures for ensuring that a written plan is 
prepared for children who have been removed from their families. Such 
plan shall specify the goals for achieving a permanent placement for 
the child in a timely fashion, for ensuring that the written plan is 
reviewed every 6 months (until such placement is achieved), and for 
ensuring that information about such children is collected regularly 
and recorded in case records, and include a description of such 
procedures.
            ``(9) Certification of state program to provide 
        independent living services.--A certification that the 
        State has in effect a program to provide independent 
        living services, for assistance in making the 
        transition to self-sufficient adulthood, to individuals 
        in the child protection program of the State who are 
        16, but who are not 20 (or, at the option of the State, 
        22), years of age, and who do not have a family to 
        which to be returned.
            ``(10) Certification of state procedures to respond 
        to reporting of medical neglect of disabled infants.--
                    ``(A) In general.--A certification that the 
                State has in place for the purpose of 
                responding to the reporting of medical neglect 
                of infants (including instances of withholding 
                of medically indicated treatment from disabled 
                infants with life-threatening conditions), 
                procedures or programs, or both (within the 
                State child protective services system), to 
                provide for--
                            ``(i) coordination and consultation 
                        with individuals designated by and 
                        within appropriate health-care 
                        facilities;
                            ``(ii) prompt notification by 
                        individuals designated by and within 
                        appropriate health-care facilities of 
                        cases of suspected medical neglect 
                        (including instances of withholding of 
                        medically indicated treatment from 
                        disabled infants with life-threatening 
                        conditions); and
                            ``(iii) authority, under State law, 
                        for the State child protective service 
                        to pursue any legal remedies, including 
                        the authority to initiate legal 
                        proceedings in a court of competent 
                        jurisdiction, as may be necessary to 
                        prevent the withholding of medically 
                        indicated treatment from disabled 
                        infants with life-threatening 
                        conditions.
                    ``(B) Withholding of medically indicated 
                treatment.--As used in subparagraph (A), the 
                term `withholding of medically indicated 
                treatment' means the failure to respond to the 
                infant's life-threatening conditions by 
                providing treatment (including appropriate 
                nutrition, hydration, and medication) which, in 
                the treating physician's or physicians' 
                reasonable medical judgment, will be most 
                likely to be effective in ameliorating or 
                correcting all such conditions, except that 
                such term does not include the failure to 
                provide treatment (other than appropriate 
                nutrition, hydration, or medication) to an 
                infant when, in the treating physician's or 
                physicians' reasonable medical judgment--
                            ``(i) the infant is chronically and 
                        irreversibly comatose;
                            ``(ii) the provision of such 
                        treatment would--
                                    ``(I) merely prolong dying;
                                    ``(II) not be effective in 
                                ameliorating or correcting all 
                                of the infant's life-
                                threatening conditions; or
                                    ``(III) otherwise be futile 
                                in terms of the survival of the 
                                infant; or
                            ``(iii) the provision of such 
                        treatment would be virtually futile in 
                        terms of the survival of the infant and 
                        the treatment itself under such 
                        circumstances would be inhumane.
            ``(11) Identification of child protection goals.--
        The quantitative goals of the State child protection 
        program.
            ``(12) Certification of child protection 
        standards.--With respect to fiscal years beginning on 
        or after April 1, 1996, a certification that the 
        State--
                    ``(A) has completed an inventory of all 
                children who, before the inventory, had been in 
                foster care under the responsibility of the 
                State for 6 months or more, which determined--
                            ``(i) the appropriateness of, and 
                        necessity for, the foster care 
                        placement;
                            ``(ii) whether the child could or 
                        should be returned to the parents of 
                        the child or should be freed for 
                        adoption or other permanent placement; 
                        and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or 
                        the placement of the child for adoption 
                        or legal guardianship;
                    ``(B) is operating, to the satisfaction of 
                the Secretary--
                            ``(i) a statewide information 
                        system from which can be readily 
                        determined the status, demographic 
                        characteristics, location, and goals 
                        for the placement of every child who is 
                        (or, within the immediately preceding 
                        12 months, has been) in foster care;
                            ``(ii) a case review system for 
                        each child receiving foster care under 
                        the supervision of the State;
                            ``(iii) a service program designed 
                        to help children--
                                    ``(I) where appropriate, 
                                return to families from which 
                                they have been removed; or
                                    ``(II) be placed for 
                                adoption, with a legal 
                                guardian, or if adoption or 
                                legal guardianship is 
                                determined not to be 
                                appropriate for a child, in 
                                some other planned, permanent 
                                living arrangement; and
                            ``(iv) a preplacement preventive 
                        services program designed to help 
                        children at risk for foster care 
                        placement remain with their families; 
                        and
                    ``(C)(i) has reviewed (or not later than 
                October 1, 1997, will review) State policies 
                and administrative and judicial procedures in 
                effect for children abandoned at or 
shortlyafter birth (including policies and procedures providing for 
legal representation of such children); and
                    ``(ii) is implementing (or not later than 
                October 1, 1997, will implement) such policies 
                and procedures as the State determines, on the 
                basis of the review described in clause (i), to 
                be necessary to enable permanent decisions to 
                be made expeditiously with respect to the 
                placement of such children.
            ``(13) Certification of reasonable efforts before 
        placement of children in foster care.--A certification 
        that the State in each case will--
                    ``(A) make reasonable efforts prior to the 
                placement of a child in foster care, to prevent 
                or eliminate the need for removal of the child 
                from the child's home, and to make it possible 
                for the child to return home; and
                    ``(B) with respect to families in which 
                abuse or neglect has been confirmed, provide 
                services or referral for services for families 
                and children where the State makes a 
                determination that the child may safely remain 
                with the family.
            ``(14) Certification of cooperative efforts.--A 
        certification by the State, where appropriate, that all 
        steps will be taken, including cooperative efforts with 
        the State agencies administering the plans approved 
        under parts A and D, to secure an assignment to the 
        State of any rights to support on behalf of each child 
        receiving foster care maintenance payments under this 
        part.
            ``(15) Certification of confidentiality and 
        requirements for information disclosure.--
                    ``(A) In general.--A certification that the 
                State has in effect and operational--
                            ``(i) requirements ensuring that 
                        reports and records made and maintained 
                        pursuant to the purposes of this part 
                        shall only be made available to--
                                    ``(I) individuals who are 
                                the subject of the report;
                                    ``(II) Federal, State, or 
                                local government entities 
                                having a need for such 
                                information in order to carry 
                                out their responsibilities 
                                under law to protect children 
                                from abuse and neglect;
                                    ``(III) child abuse citizen 
                                review panels;
                                    ``(IV) child fatality 
                                review panels;
                                    ``(V) a grand jury or 
                                court, upon a finding that 
                                information in the record is 
                                necessary for the determination 
                                of an issue before the court or 
                                grand jury; and
                                    ``(VI) other entities or 
                                classes of individuals 
                                statutorily authorized by the 
                                State to receive such 
                                information pursuant to a 
                                legitimate State purpose; and
                            ``(ii) provisions that allow for 
                        public disclosure of the findings or 
                        information about cases of child abuse 
                        or neglect that have resulted in a 
                        child fatality or near fatality.
                    ``(B) Limitation.--Disclosures made 
                pursuant to clause (i) or (ii) shall not 
                include the identifying information concerning 
                the individual initiating a report or complaint 
                alleging suspected instances of child abuse or 
                neglect.
                    ``(C) Definition.--For purposes of this 
                paragraph, the term `near fatality' means an 
                act that, as certified by a physician, places 
                the child in serious or critical condition.
    ``(b) Determinations.--The Secretary shall determine 
whether a plan submitted pursuant to subsection (a) contains 
the material required by subsection (a), other than the 
material described in paragraph (10) of such subsection. The 
Secretary may not require a State to include in such a plan any 
material not described in subsection (a).
                                    ``SEC. 423. GRANTS TO STATES FOR 
                                    CHILD PROTECTION AND PAYMENTS FOR 
                                    FOSTER CARE AND ADOPTION 
                                    ASSISTANCE.
    ``(a) Funding of Block Grants.--
            ``(1) Entitlement component.--Each eligible State 
        shall be entitled to receive from the Secretary for 
        each fiscal year specified in subsection (c)(1) a grant 
        in an amount equal to the State share of the child 
        protection amount for the fiscal year.
            ``(2) Authorization component.--
                    ``(A) In general.--For each eligible State 
                for each fiscal year specified in subsection 
                (c)(1), the Secretary shall supplement the 
                grant under paragraph (1) of this subsection by 
                an amount equal to the State share of the 
                amount (if any) appropriated pursuant to 
                subparagraph (B) of this paragraph for the 
                fiscal year.
                    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph 
                (A), there are authorized to be appropriated to 
                the Secretary an amount not to exceed 
                $325,000,000 for each fiscal year specified in 
                subsection (c)(1).
    ``(b) Maintenance Payments.--
            ``(1) In general.--In addition to the grants 
        described in subsection (a), each eligible State shall 
        be entitled to receive from the Secretary for each 
        quarter of each fiscal year specified in subsection 
        (c)(1) an amount equal to the sum of--
                    ``(A) an amount equal to the Federal 
                medical assistance percentage (as defined in 
                section 1905(b) of this Act as in effect on the 
                day before the date of enactment of this part) 
                of the total amount expended during such 
                quarter as foster care maintenance payments 
                under the child protection program under this 
                part for children in foster family homes or 
                child-care institutions; plus
                    ``(B) an amount equal to the Federal 
                medical assistance percentage (as defined in 
                section 1905(b) of this Act (as so in effect)) 
                of the total amount expended during such 
                quarter as adoption assistance payments under 
                the child protection program under this part 
                pursuant to adoption assistance agreements.
            ``(2) Estimates by the secretary.--
                    ``(A) In general.--The Secretary shall, 
                prior to the beginning of each quarter, 
                estimate the amount to which aState will be 
entitled to receive under paragraph (1) for such quarter, such 
estimates to be based on--
                            ``(i) a report filed by the State 
                        containing its estimate of the total 
                        sum to be expended in such quarter in 
                        accordance with paragraph (1), and 
                        stating the amount appropriated or made 
                        available by the State and its 
                        political subdivisions for such 
                        expenditures in such quarter, and if 
                        such amount is less than the State's 
                        proportionate share of the total sum of 
                        such estimated expenditures, the source 
                        or sources from which the difference is 
                        expected to be derived;
                            ``(ii) records showing the number 
                        of children in the State receiving 
                        assistance under this part; and
                            ``(iii) such other information as 
                        the Secretary may find necessary.
                    ``(B) Payments.--The Secretary shall pay to 
                the States the amounts so estimated under 
                subparagraph (A), reduced or increased to the 
                extent of any overpayment or underpayment which 
                the Secretary determines was made under this 
                subsection to such State for any prior quarter 
                and with respect to which adjustment has not 
                already been made under this paragraph.
                    ``(C) Pro rata share.-- The pro rata share 
                to which the United States is equitably 
                entitled, as determined by the Secretary, of 
                the net amount recovered during any quarter by 
                the State or any political subdivision thereof 
                with respect to foster care and adoption 
                assistance furnished under this part shall be 
                considered an overpayment to be adjusted under 
                this paragraph.
            ``(3) Allowance or disallowance of claim.--
                    ``(A) In general.--Within 60 days after 
                receipt of a State claim for expenditures 
                pursuant to paragraph (2)(A), the Secretary 
                shall allow, disallow, or defer such claim.
                    ``(B) Notice.--Within 15 days after a 
                decision to defer a State claim, the Secretary 
                shall notify the State of the reasons for the 
                deferral and of the additional information 
                necessary to determine the allowability of the 
                claim.
                    ``(C) Decision.--Within 90 days after 
                receiving such necessary information (in 
                readily reviewable form), the Secretary shall--
                            ``(i) disallow the claim, if able 
                        to complete the review and determine 
                        that the claim is not allowable; or
                            ``(ii) in any other case, allow the 
                        claim, subject to disallowance (as 
                        necessary)--
                                    ``(I) upon completion of 
                                the review, if it is determined 
                                that the claim is not 
                                allowable; or
                                    ``(II) on the basis of 
                                findings of an audit or 
                                financial management review.
    ``(c) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child 
        protection amount' means--
                    ``(A) $2,047,000,000 for fiscal year 1997;
                    ``(B) $2,200,000,000 for fiscal year 1998;
                    ``(C) $2,342,000,000 for fiscal year 1999;
                    ``(D) $2,487,000,000 for fiscal year 2000;
                    ``(E) $2,592,000,000 for fiscal year 2001; 
                and
                    ``(F) $2,766,000,000 for fiscal year 2002;
            ``(2) State share.--
                    ``(A) In general.--The term `State share' 
                means the qualified child protection expenses 
                of the State divided by the sum of the 
                qualified child protection expenses of all of 
                the States.
                    ``(B) Qualified child protection 
                expenses.--The term `qualified child protection 
                expenses' means, with respect to a State the 
                greater of--
                            ``(i) the total amount of--
                                    ``(I) one-third of the 
                                Federal grant amounts to the 
                                State under the provisions of 
                                law specified in clauses (i), 
                                (ii), and (iii) of subparagraph 
                                (C) for fiscal years 1992, 
                                1993, and 1994; and
                                    ``(II) one-third of the 
                                Federal share of expenditures 
                                (without regard to disputed 
                                expenditures) with respect to 
                                administration, training, and 
                                statewide mechanized data 
                                collection and information 
                                systems under the provision of 
                                law specified in subparagraph 
                                (C)(iv) as reported by the 
                                State on ACF Form IV-E-12 for 
                                fiscal years 1992, 1993, and 
                                1994; or
                            ``(ii) the total amount of--
                                    ``(I) the Federal grant 
                                amounts to the State under the 
                                provisions of law specified in 
                                clauses (i), (ii), and (iii) of 
                                subparagraph (C) for fiscal 
                                year 1994; and
                                    ``(II) the Federal share of 
                                expenditures (without regard to 
                                disputed expenditures) with 
                                respect to administration, 
                                training, and statewide 
                                mechanized data collection and 
                                information systems under the 
                                provision of law specified in 
                                subparagraph (C)(iv) as 
                                reported by the State on ACF 
                                Form IV-E-12 for fiscal year 
                                1994.
                    ``(C) Provisions of law.--The provisions of 
                law specified in this subparagraph are the 
                following (as in effect with respect to each of 
                the fiscal years referred to in subparagraph 
                (B)):
                            ``(i) Section 423 of this Act.
                            ``(ii) Section 434 of this Act.
                            ``(iii) Section 474(a)(4) of this 
                        Act.
                            ``(iv) Section 474(a)(3) of this 
                        Act.
                    ``(D) Determination of information.--In 
                determining amounts for fiscal years 1992, 
                1993, and 1994 under subclause (I) of clauses 
                (i) and (ii) of subparagraph (B), the Secretary 
                shall use information listed as actual amounts 
                in the Justification for Estimates for 
                Appropriation Committees of the Administration 
                for Children and Families for fiscal years 
                1994, 1995, and 1996, respectively. In 
                determining amounts for fiscal years 1992, 
                1993, and 1994 under subclause (II) of clauses 
                (i) and (ii) of subparagraph(B), the Secretary 
shall use information available as of February 22, 1995.
    ``(d) Use of Grant.--
            ``(1) In general.--A State to which a grant is made 
        under this section may use the grant in any manner that 
        the State deems appropriate to accomplish the purpose 
        of this part.
            ``(2) Timing of expenditures.--A State to which a 
        grant is made under this section for a fiscal year 
        shall expend the total amount of the grant not later 
        than the end of the immediately succeeding fiscal year.
            ``(3) Rule of interpretation.--This part shall not 
        be interpreted to prohibit short- and long-term foster 
        care facilities operated for profit from receiving 
        funds provided under this part.
    ``(e) Timing of Payments.--The Secretary shall pay each 
eligible State the amount of the grant payable to the State 
under this section in quarterly installments.
    ``(f) Penalties.--
            ``(1) For use of grant in violation of this part.--
        If an audit conducted pursuant to chapter 75 of title 
        31, United States Code, finds that an amount paid to a 
        State under this section for a fiscal year has been 
        used in violation of this part, then the Secretary 
        shall reduce the amount of the grant that would (in the 
        absence of this paragraph) be payable to the State 
        under this section for the immediately succeeding 
        fiscal year by the amount so used, plus 5 percent of 
        the grant paid under this section to the State for such 
        fiscal year.
            ``(2) For failure to maintain effort.--
                    ``(A) In general.--If an audit conducted 
                pursuant to chapter 75 of title 31, United 
                States Code, finds that the amount expended by 
                a State (other than from amounts provided by 
                the Federal Government) during the fiscal years 
                specified in subparagraph (B), to carry out the 
                State program funded under this part is less 
                than the applicable percentage specified in 
                such subparagraph of the total amount expended 
                by the State (other than from amounts provided 
                by the Federal Government) during fiscal year 
                1994 under parts B and E of this title (as in 
                effect on the day before the date of the 
                enactment of this part), then the Secretary 
                shall reduce the amount of the grant that would 
                (in the absence of this paragraph) be payable 
                to the State under this section for the 
                immediately succeeding fiscal year by the 
                amount of the difference, plus 5 percent of the 
                grant paid under this section to the State for 
                such fiscal year.
                    ``(B) Specification of fiscal years and 
                applicable percentages.--The fiscal years and 
                applicable percentages specified in this 
                subparagraph are as follows:
                            ``(i) For fiscal years 1997 and 
                        1998, 100 percent.
                            ``(ii) For fiscal years 1999 
                        through 2002, 75 percent.
            ``(3) For failure to submit required report.--
                    ``(A) In general.--The Secretary shall 
                reduce by 3 percent the amount of the grant 
                that would (in the absence of this paragraph) 
                be payable to a State under this section for a 
                fiscal year if the Secretary determines that 
                the State has not submitted the report required 
                by section 427(b) for the immediately preceding 
                fiscal year, within 6 months after the end of 
                the immediately preceding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary 
                shall rescind a penalty imposed on a State 
                under subparagraph (A) with respect to a report 
                for a fiscal year if the State submits the 
                report before the end of the immediately 
                succeeding fiscal year.
            ``(4) For failure to comply with sampling methods 
        requirements.--The Secretary may reduce by not more 
        than 1 percent the amount of the grant that would (in 
        the absence of this paragraph) be payable to a State 
        under this section for a succeeding fiscal year if the 
        Secretary determines that the State has not complied 
        with the Secretary's sampling methods requirements 
        under section 427(c)(2) during the prior fiscal year.
            ``(5) State funds to replace reductions in grant.--
        A State which has a penalty imposed against it under 
        this subsection for a fiscal year shall expend 
        additional State funds in an amount equal to the amount 
        of the penalty for the purpose of carrying out the 
        State program under this part during the immediately 
        succeeding fiscal year.
            ``(6) Reasonable cause exception.--Except in the 
        case of the penalty described in paragraph (2), the 
        Secretary may not impose a penalty on a State under 
        this subsection with respect to a requirement if the 
        Secretary determines that the State has reasonable 
        cause for failing to comply with the requirement.
            ``(7) Corrective compliance plan.--
                    ``(A) In general.--
                            ``(i) Notification of violation.--
                        Before imposing a penalty against a 
                        State under this subsection with 
                        respect to a violation of this part, 
                        the Secretary shall notify the State of 
                        the violation and allow the State the 
                        opportunity to enter into a corrective 
                        compliance plan in accordance with this 
                        paragraph which outlines how the State 
                        will correct the violation and how the 
                        State will insure continuing compliance 
                        with this part.
                            ``(ii) 60-day period to propose a 
                        corrective compliance plan.--During the 
                        60-day period that begins on the date 
                        the State receives a notice provided 
                        under clause (i) with respect to a 
                        violation, the State may submit to the 
                        Federal Government a corrective 
                        compliance plan to correct the 
                        violation.
                            ``(iii) Consultation about 
                        modifications.--During the 60-day 
                        period that begins with the date the 
                        Secretary receives a corrective 
                        compliance plan submitted by a State in 
                        accordance with clause (ii), the 
                        Secretary may consult with the State on 
                        modifications to the plan.
                            ``(iv) Acceptance of plan.-- A 
                        corrective compliance plan submitted by 
                        a State in accordance withclause (ii) 
is deemed to be accepted by the Secretary if the Secretary does not 
accept or reject the plan during the 60-day period that begins on the 
date the plan is submitted.
                    ``(B) Effect of correcting violation.--The 
                Secretary may not impose any penalty under this 
                subsection with respect to any violation 
                covered by a State corrective compliance plan 
                accepted by the Secretary if the State corrects 
                the violation pursuant to the plan.
                    ``(C) Effect of failing to correct 
                violation.--The Secretary shall assess some or 
                all of a penalty imposed on a State under this 
                subsection with respect to a violation if the 
                State does not, in a timely manner, correct the 
                violation pursuant to a State corrective 
                compliance plan accepted by the Secretary.
            ``(8) Limitation on amount of penalty.--
                    ``(A) In general.--In imposing the 
                penalties described in this subsection, the 
                Secretary shall not reduce any quarterly 
                payment to a State by more than 25 percent.
                    ``(B) Carryforward of unrecovered 
                penalties.--To the extent that subparagraph (A) 
                prevents the Secretary from recovering during a 
                fiscal year the full amount of all penalties 
                imposed on a State under this subsection for a 
                prior fiscal year, the Secretary shall apply 
                any remaining amount of such penalties to the 
                grant payable to the State under section 423(a) 
                for the immediately succeeding fiscal year.
    ``(g) Treatment of Territories.--
            ``(1) In general.--A territory, as defined in 
        section 1108(b)(1), shall carry out a child protection 
        program in accordance with the provisions of this part.
            ``(2) Payments.--Subject to the mandatory ceiling 
        amounts specified in section 1108, each territory, as 
        so defined, shall be entitled to receive from the 
        Secretary for any fiscal year an amount equal to the 
        total obligations to the territory under section 434 
        (as in effect on the day before the date of the 
        enactment of this part) for fiscal year 1995.
    ``(h) Limitation on Federal Authority.--Except as expressly 
provided in this Act, the Secretary may not regulate the 
conduct of States under this part or enforce any provision of 
this part.
                                    ``SEC. 424. REQUIREMENTS FOR FOSTER 
                                    CARE MAINTENANCE PAYMENTS.
    ``(a) In general.--Each State operating a program under 
this part shall make foster care maintenance payments under 
section 423(b) with respect to a child who would meet the 
requirements of section 406(a) or of section 407 (as in effect 
on the day before the date of the enactment of this part) but 
for the removal of the child from the home of a relative 
(specified in section 406(a)(as so in effect)), if--
            ``(1) the removal from the home occurred pursuant 
        to a voluntary placement agreement entered into by the 
        child's parent or legal guardian, or was the result of 
        a judicial determination to the effect that 
        continuation therein would be contrary to the welfare 
        of such child and that reasonable efforts of the type 
        described in section 422(a)(13) have been made;
            ``(2) such child's placement and care are the 
        responsibility of--
                    ``(A) the State; or
                    ``(B) any other public agency with whom the 
                State has made an agreement for the 
                administration of the State program under this 
                part which is still in effect;
            ``(3) such child has been placed in a foster family 
        home or child-care institution as a result of the 
        voluntary placement agreement or judicial determination 
        referred to in paragraph (1); and
            ``(4) such child--
                    ``(A) would have been eligible to receive 
                aid under the eligibility standards under the 
                State plan approved under section 402 (as in 
                effect on the day before the date of the 
                enactment of this part and adjusted for 
                inflation, in accordance with regulations 
                issued by the Secretary) in or for the month in 
                which such agreement was entered into or court 
                proceedings leading to the removal of such 
                child from the home were initiated; or
                    ``(B) would have received such aid in or 
                for such month if application had been made 
                therefore, or the child had been living with a 
                relative specified in section 406(a) (as so in 
                effect) within 6 months prior to the month in 
                which such agreement was entered into or such 
                proceedings were initiated, and would have 
                received such aid in or for such month if in 
                such month such child had been living with such 
                a relative and application therefore had been 
                made.
    ``(b) Limitation on Foster Care Payments.--Foster care 
maintenance payments may be made under this part only on behalf 
of a child described in subsection (a) of this section who is--
            ``(1) in the foster family home of an individual, 
        whether the payments therefore are made to such 
        individual or to a public or private child-placement or 
        child-care agency; or
            ``(2) in a child-care institution, whether the 
        payments therefore are made to such institution or to a 
        public or private child-placement or child-care agency, 
        which payments shall be limited so as to include in 
        such payments only those items which are included in 
        the term `foster care maintenance payments' (as defined 
        in section 429(6)).
    ``(c) Voluntary Placements.--
            ``(1) Satisfaction of child protection standards.--
        Notwithstanding any other provision of this section, 
        Federal payments may be made under this part with 
        respect to amounts expended by any State as foster care 
        maintenance payments under this part, in the case of 
        children removed from their homes pursuant to voluntary 
        placement agreements as described in subsection (a), 
        only if (at the time such amounts were expended) the 
        State has fulfilled all of the requirements of section 
        422(a)(12).
            ``(2) Removal in excess of 180 days.--No Federal 
        payment may be made under this part with respect to 
        amounts expended by any State as foster care 
        maintenance payments, inthe case of any child who was 
removed from such child's home pursuant to a voluntary placement 
agreement as described in subsection (a) and has remained in voluntary 
placement for a period in excess of 180 days, unless there has been a 
judicial determination by a court of competent jurisdiction (within the 
first 180 days of such placement) to the effect that such placement is 
in the best interests of the child.
            ``(3) Deemed revocation of agreements.--In any case 
        where--
                    ``(A) the placement of a minor child in 
                foster care occurred pursuant to a voluntary 
                placement agreement entered into by the parents 
                or guardians of such child as provided in 
                subsection (a); and
                    ``(B) such parents or guardians request (in 
                such manner and form as the Secretary may 
                prescribe) that the child be returned to their 
                home or to the home of a relative,
        the voluntary placement agreement shall be deemed to be 
        revoked unless the State opposes such request and 
        obtains a judicial determination, by a court of 
        competent jurisdiction, that the return of the child to 
        such home would be contrary to the child's best 
        interests.

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

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

``SEC. 426. CITIZEN REVIEW PANELS.

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

``SEC. 427. DATA COLLECTION AND REPORTING.

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

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

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

``SEC. 429. DEFINITIONS.

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

SEC. 702. CONFORMING AMENDMENTS.

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

SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

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

           Subtitle B--Child and Family Services Block Grant

SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

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

``SECTION. 1. SHORT TITLE.

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

``SEC. 2. FINDINGS.

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

``SEC. 3. PURPOSES.

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

``SEC. 4. DEFINITIONS.

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

                     ``TITLE I--GENERAL BLOCK GRANT

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

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

``SEC. 102. ELIGIBLE STATES.

    ``(a) In General.--As used in this title, the term 
`eligible State' means a State that has submitted to the 
Secretary, not later than October 1, 1996, and every 3 years 
thereafter, a plan which has been signed by the chief executive 
officer of the State and that includes the following:
            ``(1) Outline of child protection program.--A 
        written document that outlines the activities the State 
        intends to conduct to achieve the purpose of this 
        title, including the procedures to be used for--
                    ``(A) receiving and assessing reports of 
                child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) with respect to families in which 
                abuse or neglect has been confirmed, providing 
                services or referral for services for families 
                and children where the State makes 
adetermination that the child may safely remain with the family;
                    ``(D) protecting children by removing them 
                from dangerous settings and ensuring their 
                placement in a safe environment;
                    ``(E) providing training for individuals 
                mandated to report suspected cases of child 
                abuse or neglect;
                    ``(F) protecting children in foster care;
                    ``(G) promoting timely adoptions;
                    ``(H) protecting the rights of families, 
                using adult relatives as the preferred 
                placement for children separated from their 
                parents where such relatives meet the relevant 
                State child protection standards; and
                    ``(I) providing services to individuals, 
                families, or communities, either directly or 
                through referral, that are aimed at preventing 
                the occurrence of child abuse and neglect.
            ``(2) Certification of state law requiring the 
        reporting of child abuse and neglect.--A certification 
        that the State has in effect laws that require public 
        officials and other professionals to report, in good 
        faith, actual or suspected instances of child abuse or 
        neglect.
            ``(3) Certification of procedures for screening, 
        safety assessment, and prompt investigation.--A 
        certification that the State has in effect procedures 
        for receiving and responding to reports of child abuse 
        or neglect, including the reports described in 
        paragraph (2), and for the immediate screening, safety 
        assessment, and prompt investigation of such reports.
            ``(4) Certification of state procedures for removal 
        and placement of abused or neglected children.--A 
        certification that the State has in effect procedures 
        for the removal from families and placement of abused 
        or neglected children and of any other child in the 
        same household who may also be in danger of abuse or 
        neglect.
            ``(5) Certification of provisions for immunity from 
        prosecution.--A certification that the State has in 
        effect laws requiring immunity from prosecution under 
        State and local laws and regulations for individuals 
        making good faith reports of suspected or known 
        instances of child abuse or neglect.
            ``(6) Certification of provisions and procedures 
        for expungement of certain records.--A certification 
        that the State has in effect laws and procedures 
        requiring the facilitation of the prompt expungement of 
        any records that are accessible to the general public 
        or are used for purposes of employment or other 
        background checks in cases determined to be 
        unsubstantiated or false.
            ``(7) Certification of provisions and procedures 
        relating to appeals.--A certification that not later 
        then 2 years after the date of the enactment of this 
        Act, the State shall have laws and procedures in effect 
        affording individuals an opportunity to appeal an 
        official finding of abuse or neglect.
            ``(8) Certification of state procedures for 
        developing and reviewing written plans for permanent 
        placement of removed children.--A certification that 
        the State has in effect procedures for ensuring that a 
        written plan is prepared for children who have been 
        removed from their families. Such plan shall specify 
        the goals for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the 
        written plan is reviewed every 6 months (until such 
        placement is achieved), and for ensuring that 
        information about such children is collected regularly 
        and recorded in case records, and include a description 
        of such procedures.
            ``(9) Certification of state program to provide 
        independent living services.--A certification that the 
        State has in effect a program to provide independent 
        living services, for assistance in making the 
        transition to self-sufficient adulthood, to individuals 
        in the child protection program of the State who are 
        16, but who are not 20 (or, at the option of the State, 
        22), years of age, and who do not have a family to 
        which to be returned.
            ``(10) Certification of state procedures to respond 
        to reporting of medical neglect of disabled infants.--A 
        certification that the State has in place for the 
        purpose of responding to the reporting of medical 
        neglect of infants (including instances of withholding 
        of medically indicated treatment from disabled infants 
        with life-threatening conditions), procedures or 
        programs, or both (within the State child protective 
        services system), to provide for--
                    ``(A) coordination and consultation with 
                individuals designated by and within 
                appropriate health-care facilities;
                    ``(B) prompt notification by individuals 
                designated by and within appropriate health-
                care facilities of cases of suspected medical 
                neglect (including instances of withholding of 
                medically indicated treatment from disabled 
                infants with life-threatening conditions); and
                    ``(C) authority, under State law, for the 
                State child protective service to pursue any 
                legal remedies, including the authority to 
                initiate legal proceedings in a court of 
                competent jurisdiction, as may be necessary to 
                prevent the withholding of medically indicated 
                treatment from disabled infants with life-
                threatening conditions.
            ``(11) Identification of child protection goals.--
        The quantitative goals of the State child protection 
        program.
            ``(12) Certification of child protection 
        standards.--With respect to fiscal years beginning on 
        or after April 1, 1996, a certification that the 
        State--
                    ``(A) has completed an inventory of all 
                children who, before the inventory, had been in 
                foster care under the responsibility of the 
                State for 6 months or more, which determined--
                            ``(i) the appropriateness of, and 
                        necessity for, the foster care 
                        placement;
                            ``(ii) whether the child could or 
                        should be returned to the parents of 
                        the child or should be freed for 
                        adoption or other permanent placement; 
                        and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or 
                        the placement of the child for adoption 
                        or legal guardianship;
                    ``(B) is operating, to the satisfaction of 
                the Secretary--
                            ``(i) a statewide information 
                        system from which can be readily 
                        determined the status, demographic 
                        characteristics, location, and goals 
                        for the placement of every child who is 
                        (or, within the immediately preceding 
                        12 months, has been) in foster care;
                            ``(ii) a case review system for 
                        each child receiving foster care under 
                        the supervision of the State;
                            ``(iii) a service program designed 
                        to help children--
                                    ``(I) where appropriate, 
                                return to families from which 
                                they have been removed; or
                                    ``(II) be placed for 
                                adoption, with a legal 
                                guardian, or if adoption or 
                                legal guardianship is 
                                determined not to be 
                                appropriate for a child, in 
                                some other planned, permanent 
                                living arrangement; and
                            ``(iv) a preplacement preventive 
                        services program designed to help 
                        children at risk for foster care 
                        placement remain with their families; 
                        and
                    ``(C)(i) has reviewed (or not later than 
                October 1, 1997, will review) State policies 
                and administrative and judicial procedures in 
                effect for children abandoned at or shortly 
                after birth (including policies and procedures 
                providing for legal representation of such 
                children); and
                    ``(ii) is implementing (or not later than 
                October 1, 1997, will implement) such policies 
                and procedures as the State determines, on the 
                basis of the review described in clause (i), to 
                be necessary to enable permanent decisions to 
                be made expeditiously with respect to the 
                placement of such children.
            ``(13) Certification of reasonable efforts before 
        placement of children in foster care.--A certification 
        that the State in each case will--
                    ``(A) make reasonable efforts prior to the 
                placement of a child in foster care, to prevent 
                or eliminate the need for removal of the child 
                from the child's home, and to make it possible 
                for the child to return home; and
                    ``(B) with respect to families in which 
                abuse or neglect has been confirmed, provide 
                services or referral for services for families 
                and children where the State makes a 
                determination that the child may safely remain 
                with the family.
            ``(14) Certification of information disclosure 
        provisions.--A certification that the State has in 
        effect and operational--
                    ``(A) requirements for the prompt 
                disclosure of all relevant information to any 
                Federal, State, or local government entity, 
                citizens review panel, child fatality review 
                panel, or any agent of such government entity 
                determined by the State to have a need for such 
                information in order to carry out its 
                responsibilities under law to protect children 
                from abuse or neglect; and
                    ``(B) provisions that allow for the public 
                disclosure of the findings of information about 
                a case of child abuse or neglect which has 
                resulted in a child fatality or near-fatality, 
                except that the public disclosure of such 
                information shall be made in a manner that 
                protects the privacy rights of individuals 
                involved in the case, unless such individuals 
                have waived such rights or criminal court 
                proceedings have been initiated.
    ``(b) Determinations.--The Secretary shall determine 
whether a plan submitted pursuant to subsection (a) contains 
the material required by subsection (a), other than the 
material described in paragraph (10) of such subsection. The 
Secretary may not require a State to include in such a plan any 
material not described in subsection (a).

``SEC. 103. DATA COLLECTION AND REPORTING.

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

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

``SEC. 201. RESEARCH GRANTS.

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

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

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

``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

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

``SEC. 204. TECHNICAL ASSISTANCE.

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

``SEC. 205. TRAINING RESOURCES.

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

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

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

``SEC. 207. PEER REVIEW FOR GRANTS.

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

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

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

                    ``TITLE III--GENERAL PROVISIONS

``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

``SEC. 303. TRANSITIONAL PROVISION.

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

``SEC. 304. RULE OF CONSTRUCTION.

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

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

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

SEC. 752. REAUTHORIZATIONS.

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

SEC. 753. REPEALS.

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

                         TITLE VIII--CHILD CARE

SEC. 801. SHORT TITLE AND REFERENCES.

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

SEC. 802. GOALS.

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

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 418. FUNDING FOR CHILD CARE.

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

SEC. 804. LEAD AGENCY.

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

SEC. 805. APPLICATION AND PLAN.

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

SEC. 806. LIMITATION ON STATE ALLOTMENTS.

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

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

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

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

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

SEC. 809. ADMINISTRATION AND ENFORCEMENT.

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

SEC. 810. PAYMENTS.

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

SEC. 811. ANNUAL REPORT AND AUDITS.

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

SEC. 812. REPORT BY THE SECRETARY.

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

SEC. 813. ALLOTMENTS.

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

SEC. 814. DEFINITIONS.

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

SEC. 815. REPEALS.

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

SEC. 816. EFFECTIVE DATE.

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

                   TITLE IX--CHILD NUTRITION PROGRAMS

                 Subtitle A--National School Lunch Act

SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

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

SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

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

SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

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

SEC. 904. SPECIAL ASSISTANCE.

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

SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

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

SEC. 907. COMMODITY DISTRIBUTION.

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

SEC. 908. CHILD CARE FOOD PROGRAM.

    (a) Establishment of Program.--Section 17 of the National 
School Lunch Act (42 U.S.C. 1766) is amended--
            (1) in the section heading, by striking ``and 
        adult''; and
            (2) in the first sentence of subsection (a), by 
        striking ``initiate, maintain, and expand'' and 
        inserting ``initiate and maintain''.
    (b) Payments to Sponsor Employees.--Paragraph (2) of the 
last sentence of section 17(a) of the Act (42 U.S.C. 1766(a)) 
is amended--
            (1) by striking ``and'' at the end of subparagraph 
        (B);
            (2) by striking the period at the end of 
        subparagraph (C) and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day 
                care home sponsoring organization that employs 
                more than 1 employee, the organization does not 
                base payments to an employee of the 
                organization on the number of family or group 
                day care homes recruited.''.
    (c) Technical Assistance.--The last sentence of section 
17(d)(1) of the Act is amended by striking ``, and shall 
provide technical assistance'' and all that follows through 
``its application''.
    (d) Reimbursement of Child Care Institutions.--Section 
17(f)(2)(B) of the Act (42 U.S.C. 1766(f)(2)(B)) is amended by 
striking ``two meals and two supplements or three meals and one 
supplement'' and inserting ``two meals and one supplement''.
    (e) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--
        Section 17(f)(3) of the Act is amended by striking 
        ``(3)(A) Institutions'' and all that follows through 
        the end of subparagraph (A) and inserting the 
        following:
            ``(3) Reimbursement of family or group day care 
        home sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution 
                        that participates in the program under 
                        this section as a family or group day 
                        care home sponsoring organization shall 
                        be provided, for payment to a home 
                        sponsored by the organization, 
                        reimbursement factors in accordance 
                        with this subparagraph for the cost of 
                        obtaining and preparing food and 
                        prescribed labor costs involved in 
                        providing meals under this section.
                            ``(ii) Tier i family or group day 
                        care homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I 
                                family or group day care home' 
                                means--
                                            ``(aa) a family or 
                                        group day care home 
                                        that is located in a 
                                        geographic area, as 
                                        defined by the 
                                        Secretary based on 
                                        census data, in which 
                                        at least 50 percent of 
                                        the children residing 
                                        in the area are members 
                                        of households whose 
                                        incomes meet the income 
                                        eligibility guidelines 
                                        for free or reduced 
                                        price meals under 
                                        section 9;
                                            ``(bb) a family or 
                                        group day care home 
                                        that is located in an 
                                        area served by a school 
                                        enrolling elementary 
                                        students in which at 
                                        least 50 percent of the 
                                        total number of 
                                        children enrolled are 
                                        certified eligible to 
                                        receive free or reduced 
                                        price school meals 
                                        under this Act or the 
                                        Child Nutrition Act of 
                                        1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or 
                                        group day care home 
                                        that is operated by a 
                                        provider whose 
                                        household meets the 
                                        income eligibility 
                                        guidelines for free or 
                                        reduced price meals 
                                        under section 9 and 
                                        whose income is 
                                        verified by the 
                                        sponsoringor 
organization of the home under regulations established by the 
Secretary.
                                    ``(II) Reimbursement.--
                                Except as provided in subclause 
                                (III), a tier I family or group 
                                day care home shall be provided 
                                reimbursement factors under 
                                this clause without a 
                                requirement for documentation 
                                of the costs described in 
                                clause (i), except that 
                                reimbursement shall not be 
                                provided under this subclause 
                                for meals or supplements served 
                                to the children of a person 
                                acting as a family or group day 
                                care home provider unless the 
                                children meet the income 
                                eligibility guidelines for free 
                                or reduced price meals under 
                                section 9.
                                    ``(III) Factors.--Except as 
                                provided in subclause (IV), the 
                                reimbursement factors applied 
                                to a home referred to in 
                                subclause (II) shall be the 
                                factors in effect on the date 
                                of enactment of this subclause.
                                    ``(IV) Adjustments.--The 
                                reimbursement factors under 
                                this subparagraph shall be 
                                adjusted on August 1, 1996, 
                                July 1, 1997, and each July 1 
                                thereafter, to reflect changes 
                                in the Consumer Price Index for 
                                food at home for the most 
                                recent 12-month period for 
                                which the data are available. 
                                The reimbursement factors under 
                                this subparagraph shall be 
                                rounded to the nearest lower 
                                cent increment and based on the 
                                unrounded adjustment in effect 
                                on June 30 of the preceding 
                                school year.
                            ``(iii) Tier ii family or group day 
                        care homes.--
                                    ``(I) In general.--
                                            ``(aa) Factors.--
                                        Except as provided in 
                                        subclause (II), with 
                                        respect to meals or 
                                        supplements served 
                                        under this clause by a 
                                        family or group day 
                                        care home that does not 
                                        meet the criteria set 
                                        forth in clause 
                                        (ii)(I), the 
                                        reimbursement factors 
                                        shall be 90 cents for 
                                        lunches and suppers, 25 
                                        cents for breakfasts, 
                                        and 10 cents for 
                                        supplements.
                                            ``(bb) 
                                        Adjustments.--The 
                                        factors shall be 
                                        adjusted on July 1, 
                                        1997, and each July 1 
                                        thereafter, to reflect 
                                        changes in the Consumer 
                                        Price Index for food at 
                                        home for the most 
                                        recent 12-month period 
                                        for which the data are 
                                        available. The 
                                        reimbursement factors 
                                        under this item shall 
                                        be rounded down to the 
                                        nearest lower cent 
                                        increment and based on 
                                        the unrounded 
                                        adjustment for the 
                                        preceding 12-month 
                                        period.
                                            ``(cc) 
                                        Reimbursement.--A 
                                        family or group day 
                                        care home shall be 
                                        provided reimbursement 
                                        factors under this 
                                        subclause without a 
                                        requirement for 
                                        documentation of the 
                                        costs described in 
                                        clause (i), except that 
                                        reimbursement shall not 
                                        be provided under this 
                                        subclause for meals or 
                                        supplements served to 
                                        the children of a 
                                        person acting as a 
                                        family or group day 
                                        care home provider 
                                        unless the children 
                                        meet the income 
                                        eligibility guidelines 
                                        for free or reduced 
                                        price meals under 
                                        section 9.
                                    ``(II) Other factors.--A 
                                family or group day care home 
                                that does not meet the criteria 
                                set forth in clause (ii)(I) may 
                                elect to be provided 
                                reimbursement factors 
                                determined in accordance with 
                                the following requirements:
                                            ``(aa) Children 
                                        eligible for free or 
                                        reduced price meals.--
                                        In the case of meals or 
                                        supplements served 
                                        under this subsection 
                                        to children who are 
                                        members of households 
                                        whose incomes meet the 
                                        income eligibility 
                                        guidelines for free or 
                                        reduced price meals 
                                        under section 9, the 
                                        family or group day 
                                        care home shall be 
                                        provided reimbursement 
                                        factors set by the 
                                        Secretary in accordance 
                                        with clause (ii)(III).
                                            ``(bb) Ineligible 
                                        children.--In the case 
                                        of meals or supplements 
                                        served under this 
                                        subsection to children 
                                        who are members of 
                                        households whose 
                                        incomes do not meet the 
                                        income eligibility 
                                        guidelines, the family 
                                        or group day care home 
                                        shall be provided 
                                        reimbursement factors 
                                        in accordance with 
                                        subclause (I).
                                    ``(III) Information and 
                                determinations.--
                                            ``(aa) In 
                                        general.--If a family 
                                        or group day care home 
                                        elects to claim the 
                                        factors described in 
                                        subclause (II), the 
                                        family or group day 
                                        care home sponsoring 
                                        organization serving 
                                        the home shall collect 
                                        the necessary income 
                                        information, as 
                                        determined by the 
                                        Secretary, from any 
                                        parent or other 
                                        caretaker to make the 
                                        determinations 
                                        specified in subclause 
                                        (II) and shall make the 
                                        determinations in 
                                        accordance with rules 
                                        prescribed by the 
                                        Secretary.
                                            ``(bb) Categorical 
                                        eligibility.--In making 
                                        a determination under 
                                        item (aa), a family or 
                                        group day care home 
                                        sponsoring organization 
                                        may consider a child 
                                        participating in or 
                                        subsidized under, or a 
                                        child with a parent 
                                        participating in or 
                                        subsidized under, a 
                                        federally or State 
                                        supported child care or 
                                        other benefit program 
                                        with an income 
                                        eligibility limit that 
                                        does not exceed the 
                                        eligibility standard 
                                        for free or reduced 
                                        price meals under 
                                        section 9 to be a child 
                                        who is a member of a 
                                        household whose income 
                                        meets the income 
                                        eligibility guidelines 
                                        under section 9.
                                            ``(cc) Factors for 
                                        children only.--A 
                                        family or group day 
                                        care home may elect to 
                                        receive the 
                                        reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) solely for 
                                        the children 
                                        participating in a 
                                        program referred to in 
                                        item (bb) if the home 
                                        elects not to have 
                                        income statements 
                                        collected from parents 
                                        or other caretakers.
                                    ``(IV) Simplified meal 
                                counting and reporting 
                                procedures.--The Secretary 
                                shall prescribe simplified meal 
                                counting and reporting 
                                procedures for use by a family 
                                or group day care home that 
                                elects to claim the factors 
                                under subclause (II) and by a 
                                family or group day care home 
                                sponsoring organization that 
                                sponsors the home. The 
                                procedures the Secretary 
                                prescribes may include 1 or 
                                more of the following:
                                            ``(aa) Setting an 
                                        annual percentage for 
                                        each home of the number 
                                        of meals served that 
                                        are to be reimbursed in 
                                        accordance with the 
                                        reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) and an annual 
                                        percentage of the 
                                        number of meals served 
                                        that are to be 
                                        reimbursed in 
                                        accordance with the 
                                        reimbursement factors 
                                        prescribed under 
                                        subclause (I), based on 
                                        the family income of 
                                        children enrolled in 
                                        the home in a specified 
                                        month or other period.
                                            ``(bb) Placing a 
                                        home into 1 of 2 or 
                                        more reimbursement 
                                        categories annually 
                                        based on the percentage 
                                        of children in the home 
                                        whose households have 
                                        incomes that meet the 
                                        income eligibility 
                                        guidelines under 
                                        section 9, with each 
                                        such reimbursement 
                                        category carrying a set 
                                        of reimbursement 
                                        factors such as the 
                                        factors prescribed 
                                        under clause (ii)(III) 
                                        or subclause (I) or 
                                        factors established 
                                        within the range of 
                                        factors prescribed 
                                        under clause (ii)(III) 
                                        and subclause (I).
                                            ``(cc) Such other 
                                        simplified procedures 
                                        as the Secretary may 
                                        prescribe.
                                    ``(V) Minimum verification 
                                requirements.--The Secretary 
                                may establish any necessary 
                                minimum verification 
                                requirements.''.
            (2) Grants to states to provide assistance to 
        family or group day care homes.--Section 17(f)(3) of 
        the Act is amended by adding at the end the following:
                    ``(D) Grants to states to provide 
                assistance to family or group day care homes.--
                            ``(i) In general.--
                                    ``(I) Reservation.--From 
                                amounts made available to carry 
                                out this section, the Secretary 
                                shall reserve $5,000,000 of the 
                                amount made available for 
                                fiscal year 1996.
                                    ``(II) Purpose.--The 
                                Secretary shall use the funds 
                                made available under subclause 
                                (I) to provide grants to States 
                                for the purpose of providing--
                                            ``(aa) assistance, 
                                        including grants, to 
                                        family and day care 
                                        home sponsoring 
                                        organizations and other 
                                        appropriate 
                                        organizations, in 
                                        securing and providing 
                                        training, materials, 
                                        automated data 
                                        processing assistance, 
                                        and other assistance 
                                        for the staff of the 
                                        sponsoring 
                                        organizations; and
                                            ``(bb) training and 
                                        other assistance to 
                                        family and group day 
                                        care homes in the 
                                        implementation of the 
                                        amendment to 
                                        subparagraph (A) made 
                                        by section 913(e)(1) of 
                                        the Personal 
                                        Responsibility and Work 
                                        Opportunity Act of 
                                        1995.
                            ``(ii) Allocation.--The Secretary 
                        shall allocate from the funds reserved 
                        under clause (i)(I)--
                                    ``(I) $30,000 in base 
                                funding to each State; and
                                    ``(II) any remaining amount 
                                among the States, based on the 
                                number of family day care homes 
                                participating in the program in 
                                a State during fiscal year 1994 
                                as a percentage of the number 
                                of all family day care homes 
                                participating in the program 
                                during fiscal year 1994.
                            ``(iii) Retention of funds.--Of the 
                        amount of funds made available to a 
                        State for fiscal year 1996 under clause 
                        (i), the State may retain not to exceed 
                        30 percent of the amount to carry out 
                        this subparagraph.
                            ``(iv) Additional payments.--Any 
                        payments received under this 
                        subparagraph shall be in addition to 
                        payments that a State receives under 
                        subparagraph (A).''.
            (3) Provision of data.--Section 17(f)(3) of the 
        Act, as amended by paragraph (2), is further amended by 
        adding at the end the following:
                    ``(E) Provision of data to family or group 
                day care home sponsoring organizations.--
                            ``(i) Census data.--The Secretary 
                        shall provide to each State agency 
                        administering a child care food program 
                        under this section data from the most 
                        recent decennial census survey or other 
                        appropriate census survey for which the 
                        data are available showing which areas 
                        in the State meet the requirements of 
                        subparagraph (A)(ii)(I)(aa). The State 
                        agency shall provide the data to family 
                        or group day care home sponsoring 
                        organizations located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State 
                                agency administering the school 
                                lunch program under this Act or 
                                the school breakfast program 
                                under the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et 
                                seq.) shall provide to approved 
                                family or group day care home 
                                sponsoring organizations a list 
                                of schools serving elementary 
                                school children in the State in 
                                which not less than \1/2\ of 
                                the children enrolled are 
                                certified to receive free or 
                                reduced price meals. The State 
                                agency shall collect the data 
                                necessary to create the list 
                                annually and provide the list 
                                on a timely basis to any 
                                approved family or group day 
                                care home sponsoring 
                                organization that requests the 
                                list.
                                    ``(II) Use of data from 
                                preceding school year.--In 
                                determining for a fiscal year 
                                or other annual period whether 
                                a home qualifies as a tier I 
                                family or group day care home 
                                under subparagraph (A)(ii)(I), 
                                the State agency administering 
                                the program under this section, 
                                and a family or group day care 
                                home sponsoring organization, 
                                shall use the most current 
                                available data at the time of 
                                the determination.
                            ``(iii) Duration of 
                        determination.--For purposes of this 
                        section, a determination that a family 
                        or group day care home is located in an 
                        area that qualifies the home as a tier 
                        I family or group day care home (as the 
                        term is defined in subparagraph 
                        (A)(ii)(I)), shall be in effect for 3 
                        years (unless the determination is made 
                        on the basis of census data, in which 
                        case the determination shall remain in 
                        effect until more recent census data 
                        are available) unless the State agency 
                        determines that the area in which the 
                        home is located no longer qualifies the 
                        home as a tier I family or group day 
                        care home.''.
            (4) Conforming amendments.--Section 17(c) of the 
        Act is amended by inserting ``except as provided in 
        subsection (f)(3),'' after ``For purposes of this 
        section,'' each place it appears in paragraphs (1), 
        (2), and (3).
    (f) Reimbursement.--Section 17(f) of the Act is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking the 
                third and fourth sentences; and
                    (B) in subparagraph (C)--
                            (i) in clause (i)--
                                    (I) by striking ``(i)'';
                                    (II) in the first sentence, 
                                by striking ``and expansion 
                                funds'' and all that follows 
                                through ``rural areas'';
                                    (III) by striking the 
                                second sentence; and
                                    (IV) by striking ``and 
                                expansion funds'' each place it 
                                appears; and
                            (ii) by striking clause (ii); and
            (2) by striking paragraph (4).
    (g) Nutritional Requirements.--Section 17(g)(1) of the Act 
is amended--
            (1) in subparagraph (A), by striking the second 
        sentence; and
            (2) in subparagraph (B), by striking the second 
        sentence.
    (h) Elimination of State Paperwork and Outreach Burden.--
Section 17 of the Act is amended by striking subsection (k) and 
inserting the following:
    ``(k) Training and Technical Assistance.--A State 
participating in the program established under this section 
shall provide sufficient training, technical assistance, and 
monitoring to facilitate effective operation of the program. 
The Secretary shall assist the State in developing plans to 
fulfill the requirements of this subsection.''.
    (i) Records.--The second sentence of section 17(m) of the 
Act is amended by striking ``at all times'' and inserting ``at 
any reasonable time''.
    (j) Modification of Adult Care Food Program.--Section 17(o) 
of the Act is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``adult day care centers'' 
                and inserting ``day care centers for 
                chronically impaired disabled persons''; and
                    (B) by striking ``to persons 60 years of 
                age or older or''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``adult day care 
                        center'' and inserting ``day care 
                        center for chronically impaired 
                        disabled persons''; and
                            (ii) in clause (i)--
                                    (I) by striking ``adult'';
                                    (II) by striking ``adults'' 
                                and inserting ``persons''; and
                                    (III) by striking ``or 
                                persons 60 years of age or 
                                older''; and
                    (B) in subparagraph (B), by striking 
                ``adult day care services'' and inserting ``day 
                care services for chronically impaired disabled 
                persons''.
    (k) Unneeded Provision.--Section 17 of the Act is amended 
by striking subsection (q).
    (l) Conforming Amendments.--
            (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) 
        is amended--
                    (A) in the subsection heading, by striking 
                ``and Adult''; and
                    (B) in paragraph (1), by striking ``and 
                adult''.
            (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 
        1769(e)(3)(B)) is amended by striking ``and adult''.
            (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 
        1769f(b)(1)(C)) is amended by striking ``and adult''.
            (4) Section 3(1) of the Healthy Meals for Healthy 
        Americans Act of 1994 (Public Law 103-448) is amended 
        by striking ``and adult''.
    (m) Effective Date.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section shall become 
        effective on the date of enactment of this Act.
            (2) Improved targeting of day care home 
        reimbursements.--The amendments made by paragraphs (1), 
        (3), and (4) of subsection (e) shall become effective 
        on August 1, 1996.
            (3) Regulations.--
                    (A) Interim regulations.--Not later than 
                February 1, 1996, the Secretary shall issue 
                interim regulations to implement--
                            (i) the amendments made by 
                        paragraphs (1), (3), and (4) of 
                        subsection (e); and
                            (ii) section 17(f)(3)(C) of the 
                        National School Lunch Act (42 U.S.C. 
                        1766(f)(3)(C)).
                    (B) Final regulations.--Not later than 
                August 1, 1996, the Secretary shall issue final 
                regulations to implement the provisions of law 
                referred to in subparagraph (A).
    (n) Study of Impact of Amendments on Program Participation 
and Family Day Care Licensing.--
            (1) In general.--The Secretary of Agriculture, in 
        conjunction with the Secretary of Health and Human 
        Services, shall study the impact of the amendments made 
        by this section on--
                    (A) the number of family day care homes 
                participating in the child care food program 
                established under section 17 of the National 
                School Lunch Act (42 U.S.C. 1766);
                    (B) the number of day care home sponsoring 
                organizations participating in the program;
                    (C) the number of day care homes that are 
                licensed, certified, registered, or approved by 
                each State in accordance with regulations 
                issued by the Secretary;
                    (D) the rate of growth of the numbers 
                referred to in subparagraphs (A) through (C);
                    (E) the nutritional adequacy and quality of 
                meals served in family day care homes that--
                            (i) received reimbursement under 
                        the program prior to the amendments 
                        made by this section but do not receive 
                        reimbursement after the amendments made 
                        by this section; or
                            (ii) received full reimbursement 
                        under the program prior to the 
                        amendments made by this section but do 
                        not receive full reimbursement after 
                        the amendments made by this section; 
                        and
                    (F) the proportion of low-income children 
                participating in the program prior to the 
                amendments made by this section and the 
                proportion of low-income children participating 
                in the program after the amendments made by 
                this section.
            (2) Required data.--Each State agency participating 
        in the child care food program under section 17 of the 
        National School Lunch Act (42 U.S.C. 1766) shall submit 
        to the Secretary data on--
                    (A) the number of family day care homes 
                participating in the program on July 31, 1996, 
                and July 31, 1997;
                    (B) the number of family day care homes 
                licensed, certified, registered, or approved 
                for service on July 31, 1996, and July 31, 
                1997; and
                    (C) such other data as the Secretary may 
                require to carry out this subsection.
            (3) Submission of report.--Not later than 2 years 
        after the effective date of this section, the Secretary 
        shall submit the study required under this subsection 
        to the Committee on Economic and Educational 
        Opportunities of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate.

SEC. 909. PILOT PROJECTS.

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

SEC. 910. REDUCTION OF PAPERWORK.

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

SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

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

SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

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

SEC. 913. INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 
1769g) is repealed.
SEC. 914. SCHOOL NUTRITION OPTIONAL 
BLOCK GRANT DEMONSTRATION PROGRAM.
    (a) In General.--The National School Lunch Act is amended 
by inserting after section 4 (42 U.S.C. 1753) the following:
                                      ``SEC. 5. SCHOOL NUTRITION 
                                      OPTIONAL BLOCK GRANT 
                                      DEMONSTRATION PROGRAM.
    ``(a) Definitions.--In this section:
            ``(1) Block grant demonstration program.--The term 
        `block grant demonstration program' means the block 
        grant program demonstration program established under 
        subsection (b).
            ``(2) Department of defense domestic dependents' 
        school.--The term `Department of Defense domestic 
        dependents' school' means an elementary or secondary 
        school established under section 2164 of title 10, 
        United States Code.
            ``(3) Low-income student.--The term `low-income 
        student' means a student who is a member of a family 
        whose income is less than 130 percent of the poverty 
        line.
            ``(4) Needy student.--The term `needy student' 
        means a student who is a member of a family whose 
        income is not less than 130 percent, and not more than 
        185 percent, of the poverty line.
            ``(5) Poverty line.--The term `poverty line' has 
        the meaning provided in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)).
            ``(6) State plan.--The term `State plan' means a 
        State plan submitted to and approved by the Secretary 
        under subsection (d).
    ``(b) Establishment.--The Secretary shall establish an 
optional block grant demonstration program in not more than 1 
State in each of the 7 Food and Consumer Service regions of the 
United States Department of Agriculture to make grants to 
States to carry out a school lunch and breakfast program for 
all schoolchildren that--
            ``(1) safeguards the health and well-being of 
        children through the provision of nutritious, well-
        balanced meals in schools;
            ``(2) provides children who are low-income students 
        access to nutritious free meals;
            ``(3) provides children who are needy students 
        access to nutritious low-cost meals;
            ``(4) ensures that children are receiving the 
        nutrition required to take advantage of educational 
        opportunities;
            ``(5) emphasizes foods that are naturally good 
        sources of vitamins and minerals over foods that have 
        been enriched with vitamins and minerals and are high 
        in fat or sodium content;
            ``(6) provides a comprehensive school nutrition 
        program for children, which may include offering free 
        meals to all children at a school;
            ``(7) minimizes paperwork burdens and 
        administrative expenses for participating schools; and
            ``(8) at the option of the State, provides meal 
        supplements to children in afterschool care.
    ``(c) Election by the State.--
            ``(1) In general.--A State with respect to which an 
        application submitted under subsection (d)(1) is 
        approved may participate in the block grant 
        demonstration program.
            ``(2) Election irrevocable.--A State with respect 
        to which an application under paragraph (1) is approved 
        may not subsequently reverse the decision of the State 
        to participate in the block grant demonstration program 
        until the termination of the program under subsection 
        (n).
            ``(3) Block grant demonstration program 
        exclusive.--Except as otherwise provided in this 
        section, a State that is participating in the block 
        grant demonstration program shall not be subject to, or 
        receive any benefit under--
                    ``(A) the school lunch program established 
                under this Act;
                    ``(B) the school breakfast program 
                established under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773); or
                    ``(C) the commodity distribution programs 
                established under sections 6 and 14.
            ``(4) Maintenance of service to low-income and 
        needy students.--
                    ``(A) Proportions of students served.--A 
                State shall ensure that, during each year in 
                which the State is participating in the block 
                grant demonstration program, the proportions of 
                school lunches and school breakfasts served to 
                low-income students and needy students under 
                the block grant demonstration program are not 
                less than the proportions of school lunches and 
                school breakfasts, respectively, served to low-
                income students and needy students in the last 
                year of participation by the State in the 
                school lunch program established under the 
                other sections of this Act or the school 
                breakfast program established under section 4 
                of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773), respectively.
                    ``(B) Proportions of funds used to provide 
                service.--A State shall ensure that, during 
                each year in which the State is participating 
                in the block grant demonstration program, the 
                proportions of funds used by the State to 
                provide school lunches and school breakfasts 
                for low-income students and needy students 
                under the block grant demonstration program are 
                not less than the proportions of State funds 
                used to provide school lunches and school 
                breakfasts, respectively, for low-income 
                students and needy students in the last year of 
                participation by the State in the school lunch 
                program established under the other sections of 
                this Act or the school breakfast program 
                established under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773), 
                respectively.
    ``(d) Application and State Plan.--
            ``(1) Application.--To be eligible to receive 
        assistance under the block grant demonstration program, 
        a State shall prepare and submit to the Secretary an 
        application at such time, in such manner, and 
        containing such information as the Secretary shall by 
        regulation reasonably require, including--
                    ``(A) an assurance that the State will 
                comply with the requirements of this section;
                    ``(B) a State plan that meets the 
                requirements of paragraph (2);
                    ``(C) an assurance that the State will 
                comply with the requirements of the State plan 
                under paragraph (2); and
                    ``(D) an assurance that the State will 
                submit an annual report in accordance with 
                paragraph (4).
            ``(2) Requirements of state plan.--
                    ``(A) Use of block grant demonstration 
                program funds.--
                            ``(i) In general.--Subject to 
                        clause (ii), the State plan shall 
                        provide that the State shall use the 
                        amounts provided to the State for each 
                        fiscal year under the block grant 
                        demonstration program to provide 
                        assistance to schools to provide 
                        lunches and breakfasts, including--
                                    ``(I) free lunches and 
                                breakfasts in accordance with 
                                subparagraph (E) to low-income 
                                students at the schools;
                                    ``(II) low-cost lunches and 
                                breakfasts to needy students at 
                                the schools;
                                    ``(III) at the option of 
                                the State, lunches and 
                                breakfasts to all students; and
                                    ``(IV) at the option of the 
                                State, meal supplements.
                            ``(ii) Administrative expenses.--A 
                        State may not use the amounts described 
                        in clause (i) for the payment of State 
                        administrative expenses incurred in 
                        carrying out the block grant 
                        demonstration program.
                            ``(iii) Nonprofit operation.--The 
                        school lunch and school breakfast 
                        program under the block grant 
                        demonstration program shall be operated 
                        on a nonprofit basis.
                            ``(iv) Maintenance of state 
                        effort.--For each fiscal year for which 
                        the State participates in the block 
                        grant demonstration program, the amount 
                        of the State revenues (excluding State 
                        revenues derived from the operation of 
                        the program) appropriated or used 
                        specifically for block grant 
                        demonstration program purposes (other 
                        than any State revenues expended for 
                        salaries and administrative expenses of 
                        the program at the State level) shall 
                        be not less than the amount of such 
                        State revenues made available for the 
                        preceding fiscal year under this 
                        section or for the school lunch program 
                        under the other sections of this Act 
                        and the school breakfast program under 
                        section 4 of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1773), as appropriate.
                    ``(B) Nutritional requirements.--
                            ``(i) Prohibition on additional 
                        requirements.--The Secretary may not 
                        impose any additional nutritional 
                        requirement beyond the requirements 
                        specified in this subparagraph.
                            ``(ii) Requirements.--The State 
                        plan shall provide for the 
                        establishment and implementation of 
                        minimum nutritional requirements for 
                        meals provided under the block grant 
                        demonstration program based on the most 
                        recent tested nutritional research 
                        available, except that the requirements 
                        shall not prohibit the substitution of 
                        foods to accommodate the medical or 
                        other special dietary needs of 
                        individual students.
                            ``(iii) Dietary guidelines.--The 
                        nutritional requirements established 
                        under clause (ii) shall be consistent 
                        with the goals of the most recent 
                        Dietary Guidelines for Americans 
                        published under section 301 of the 
                        National Nutrition Monitoring and 
                        Related Research Act of 1990 (7 U.S.C. 
                        5341).
                            ``(iv) Recommended dietary 
                        allowances.--The nutritional 
                        requirements established under clause 
                        (ii) shall require that meals provided 
                        under the block grant demonstration 
                        program provide, on the average over 
                        each week, at least--
                                    ``(I) with respect to 
                                school lunches, one-third of 
                                the daily recommended dietary 
                                allowance established by the 
                                Food and Nutrition Board of the 
                                National Research Council of 
                                the National Academy of 
                                Sciences; and
                                    ``(II) with respect to 
                                school breakfasts, one-quarter 
                                of the daily recommended 
                                dietary allowance established 
                                by the Food and Nutrition Board 
                                of the National Research 
                                Council of the National Academy 
                                of Sciences.
                    ``(C) Review of meal operations.--The State 
                plan shall provide that the State shall review 
                the meal operations of each school food 
                authority participating in the block grant 
                demonstration program not later than 2 years, 
                and not later than 4 years, after the 
                implementation of the block grant demonstration 
                program in the State.
                    ``(D) Groups served.--Subject to subsection 
                (c)(4), the State plan shall describe how the 
                block grant demonstration program will serve 
                specific groups of students in the State.
                    ``(E) Eligibility limitations.--
                            ``(i) In general.--Subject to 
                        clauses (ii) and (iii), the State plan 
                        shall describe the income eligibility 
                        limitations established for the receipt 
                        of free meals and low-cost meals under 
                        the block grant demonstration program.
                            ``(ii) Eligibility for free 
                        meals.--
                                    ``(I) Low-income 
                                students.--A low-income student 
                                who attends a school 
                                participating in the block 
                                grant demonstration program 
                                shall be eligible to receive 
                                free school lunches and school 
                                breakfasts under the block 
                                grant demonstration program.
                                    ``(II) Other students.--The 
                                State plan may provide that a 
                                student who is a member of a 
                                family whose income is equal to 
                                or more than 130 percent of the 
                                poverty line and who attends a 
                                school participating in the 
                                block grant demonstration 
                                program shall be eligible to 
                                receive free school lunches and 
                                school breakfasts under the 
                                block grant demonstration 
                                program.
                            ``(iii) Eligibility for low-cost 
                        meals.--
                                    ``(I) In general.--The 
                                State plan shall provide that a 
                                needy student who attends a 
                                school participating in the 
                                block grant demonstration 
                                program shall be eligible to 
                                receive a low-cost meal under 
                                the block grant demonstration 
                                program.
                                    ``(II) Price.--A low-cost 
                                meal under subclause (I) shall 
                                be offered to a needy student 
                                at a price that is less than 
                                the price charged to a student 
                                who is a member of a family 
                                whose income is more than 185 
                                percent of the poverty line.
                                    ``(III) Group eligibility 
                                criteria.--Subject to the other 
                                provisions of this subparagraph 
                                and to subsection (c)(4), each 
                                State may develop group 
                                eligibility criteria based on 
                                census or other accurate data 
                                that measures the income of 
                                families with school-aged 
                                children in a school district 
                                or based on prior year 
                                participation.
                    ``(F) Opportunity for continued 
                participation.--The State plan shall provide 
                that each school participating in the school 
                lunch program under the other sections of this 
                Act or the school breakfast program under 
                section 4 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1773), or both, on the day before 
                the effective date of this subparagraph shall 
                be provided the opportunity to participate in 
                the block grant demonstration program. Such 
                continued participation shall include the 
                opportunity for the school to provide the meal 
                or combination of meals offered prior to the 
                effective date of this subparagraph.
                    ``(G) Provision of commodities to cash/cloc 
                schools.--
                            ``(i) In general.--A State plan may 
                        not require a school district, 
                        nonprofit private school, or Department 
                        of Defense domestic dependents' school 
                        described in clause (ii), except on 
                        request of the school district, private 
                        school, or domestic dependents' school, 
                        as the case may be, to accept 
                        commodities for use in the school lunch 
                        or school breakfast program of the 
                        school district, private school, or 
                        domestic dependents' school in 
                        accordance with this section. The 
                        school district, private school, or 
                        domestic dependents' school may 
                        continue to receive commodity 
                        assistance in the form that the school 
                        received the assistance as of January 
                        1, 1987.
                            ``(ii) Schools.--Clause (i) applies 
                        to a school district, nonprofit private 
                        school, or Department of Defense 
                        domestic dependents' school, as the 
                        case may be, that as of January 1, 
                        1987, was receiving all cash payments 
                        or all commodity letters of credit in 
                        lieu of entitlement commodities for the 
                        school lunch program of the school 
                        district, private school, or domestic 
                        dependents' school under section 18(b).
                    ``(H) Privacy.--
                            ``(i) In general.--The State plan 
                        shall provide for safeguarding and 
                        restricting the use and disclosure of 
                        information about any student receiving 
                        assistance under the block grant 
                        demonstration program.
                            ``(ii) Recipients of free or low-
                        cost meals.--In providing assistance to 
                        schools to serve meals under the block 
                        grant demonstration program, the State 
                        shall ensure that the schools do not--
                                    ``(I) physically segregate 
                                students eligible to receive 
                                free or low-cost meals on the 
                                basis of the eligibility;
                                    ``(II) provide for the 
                                overt identification of the 
                                students by special tokens or 
                                tickets, announced or published 
                                list of names, or other means; 
                                or
                                    ``(III) otherwise 
                                discriminate against the 
                                students.
                    ``(I) Other information.--The State plan 
                shall contain such other information as may be 
                reasonably required by the Secretary.
            ``(3) Approval of application and state plan.--The 
        Secretary shall approve an application and State plan 
        that meet the requirements of this section.
            ``(4) Report.--The Secretary may provide a grant 
        under the block grant demonstration program to a State 
        for a fiscal year only if the State agrees that the 
        State will submit, for the fiscal year, a report to the 
        Secretary describing--
                    ``(A) the number of students receiving 
                assistance under the block grant demonstration 
                program;
                    ``(B) the different types of assistance 
                provided to the students;
                    ``(C) the extent to which the assistance 
                was effective in achieving the goals described 
                in subsection (b);
                    ``(D) the total number of meals served to 
                students under the block grant demonstration 
                program, including the percentage of the meals 
                served to low-income students and needy 
                students;
                    ``(E) the standards and methods that the 
                State is using to ensure the nutritional 
                quality of the meals served under the block 
                grant demonstration program; and
                    ``(F) any other information that may be 
                reasonably required by the Secretary.
    ``(e) Use of Funds.--Funds made available under this 
section may be expended only for--
            ``(1) school lunches, school breakfasts, and meal 
        supplements; and
            ``(2) the purchase of equipment needed to improve 
        school food services under the block grant 
        demonstration program.
    ``(f) Enforcement.--
            ``(1) Review of compliance with state plan.--The 
        Secretary shall review and monitor State compliance 
        with this section and the State plan.
            ``(2) Noncompliance.--
                    ``(A) In general.--If the Secretary, after 
                providing reasonable notice to a State and 
                opportunity for a hearing, finds that--
                            ``(i) there has been a failure by 
                        the State to comply substantially with 
                        any provision or requirement set forth 
                        in the State plan; or
                            ``(ii) in the operation of any 
                        program or activity for which 
                        assistance is provided under the block 
                        grant demonstration program, there is a 
                        failure by the State to comply 
                        substantially with any provision of 
                        this section;
                the Secretary shall notify the State of the 
                finding and that no further payments will be 
                made to the State under the block grant 
                demonstration program, or, in the case of 
                noncompliance in the operation of a program or 
                activity, that no further payments to the State 
                will be made with respect to the program or 
                activity, until the Secretary determines that 
                there is no longer any failure to comply or 
                that the noncompliance will be promptly 
                corrected.
                    ``(B) Other sanctions.--In the case of a 
                finding of noncompliance made under 
                subparagraph (A), the Secretary may, in 
                addition to, or in lieu of, imposing the 
                sanctions described in subparagraph (A), impose 
                other appropriate sanctions, including 
                recoupment of money improperly expended for 
                purposes prohibited or not authorized by this 
                section and disqualification from the receipt 
                of financial assistance under this section.
                    ``(C) Notice.--The notice required under 
                subparagraph (A) shall include a specific 
                identification of any additional sanction being 
                imposed under subparagraph (B).
            ``(3) Issuance of regulations.--The Secretary shall 
        establish by regulation procedures for--
                    ``(A) receiving, processing, and 
                determining the validity of complaints 
                concerning any failure of a State to comply 
                with the State plan or any requirement of this 
                section; and
                    ``(B) imposing sanctions under this 
                section.
    ``(g) Payments.--
            ``(1) In general.--For each fiscal year, the 
        Secretary shall pay to a State that has an application 
        approved by the Secretary under subsection (d)(3) and 
        that complies with paragraph (3) an amount that is 
        equal to the allotment of the State under subsection 
        (i) for the fiscal year.
            ``(2) Methods of payment.--The Secretary shall make 
        payments to a State for a fiscal year under this 
        section on a quarterly basis--
                    ``(A) by issuing letters of credit for the 
                fiscal year, with necessary adjustments on 
                account of overpayments or underpayments, as 
                determined by the Secretary; and
                    ``(B) by providing not less than 8 percent 
                but not more than 10 percent of the amount of 
                the allotment to the State in the form of 
                commodities.
            ``(3) Expenditure of funds by states.--Payments to 
        a State from an allotment under subsection (i) for a 
        fiscal yearmay be expended by the State only in the 
fiscal year or in the succeeding fiscal year.
            ``(4) Provision of school lunches and breakfasts.--
        Subject to the other provisions of this section, a 
        State may provide school lunches and school breakfasts 
        under the block grant demonstration program in any 
        manner determined appropriate by the State.
    ``(h) Audits.--
            ``(1) Requirement.--After the close of each fiscal 
        year, the Secretary shall carry out an audit of the 
        expenditures from amounts received under this section 
        by each State participating in the block grant 
        demonstration program during the fiscal year.
            ``(2) Records.--Each State described in paragraph 
        (1) shall maintain such records as the Secretary may 
        reasonably require to carry out an audit under this 
        subsection.
            ``(3) Repayment of amounts.--Each State shall repay 
        to the United States any amounts determined through an 
        audit under this subsection to have not been expended 
        in accordance with this section or to have not been 
        expended in accordance with the State plan, or the 
        Secretary may offset the amounts against any other 
        amount paid to the State under this section.
    ``(i) Allotments.--
            ``(1) First fiscal year.--
                    ``(A) In general.--For the first fiscal 
                year in which the State participates in the 
                block grant demonstration program, the 
                Secretary shall allot to the State, from 
                amounts made available under section 3 of this 
                Act and the Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.), an amount that is equal 
                to the amount that the Secretary projects would 
                be made available to the State to carry out the 
                school lunch program under the other sections 
                of this Act and the school breakfast program 
                under section 4 of the Child Nutrition Act of 
                1966 (42 U.S.C. 1773) (including the value of 
                commodities made available under the commodity 
                distribution programs established under 
                sections 6 and 14) for the fiscal year.
                    ``(B) Basis for projections.--In making a 
                projection under subparagraph (A), the 
                Secretary shall take into account--
                            ``(i) participation trends in the 
                        State; and
                            ``(ii) projected changes in 
                        reimbursement rates under the school 
                        lunch program under the other sections 
                        of this Act, and the school breakfast 
                        program under section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773).
                    ``(C) Publication in the federal 
                register.--The Secretary shall publish in the 
                Federal Register--
                            ``(i) not later than February 1, 
                        1996, and each February 1 thereafter, 
                        the amount that the Secretary projects 
                        will be made available to each State 
                        that, as of the date of publication, is 
                        not participating in the block grant 
                        demonstration program to carry out the 
                        school lunch program under the other 
                        sections of this Act and the school 
                        breakfast program under section 4 of 
                        the Child Nutrition Act of 1966 (42 
                        U.S.C. 1773) for the first fiscal year 
                        that begins after the date of 
                        publication; and
                            ``(ii) not later than February 1, 
                        1998, and each February 1 thereafter, 
                        with respect to each State for which a 
                        projection was made under clause (i)--
                                    ``(I) the amount that the 
                                Secretary projected would be 
                                made available to the State for 
                                the fiscal year that ended the 
                                preceding September 30; and
                                    ``(II) the amount that 
                                actually was made available to 
                                the State for the fiscal year 
                                that ended the preceding 
                                September 30.
            ``(2) Later fiscal years.--For each fiscal year 
        after the first fiscal year referred to in paragraph 
        (1), the Secretary shall allot to the State, from 
        amounts made available under section 3 of this Act and 
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.), an amount that is equal to the sum of--
                    ``(A) the amount allotted under paragraph 
                (1); and
                    ``(B) the product of--
                            ``(i) the amount allotted under 
                        paragraph (1); and
                            ``(ii) a factor consisting of the 
                        sum of--
                                    ``(I) one-half of the 
                                percentage change in the series 
                                for food away from home of the 
                                Consumer Price Index for All 
                                Urban Consumers published by 
                                the Bureau of Labor Statistics 
                                of the Department of Labor for 
                                the most recent 12-month period 
                                for which such data are 
                                available; and
                                    ``(II) one-half of the 
                                percentage change in the number 
                                of children projected to be 
                                enrolled in school in the State 
                                in the current school year (as 
                                of the first day of the fiscal 
                                year) as compared to the number 
                                of children enrolled in school 
                                in the State in the preceding 
                                school year.
    ``(j) Relationship to Other Laws.--The value of assistance 
provided to students under the block grant demonstration 
program shall not be considered to be income or resources for 
any purpose under any Federal or State law, including any law 
relating to taxation and welfare and public assistance 
programs.
    ``(k) Alternative Assistance to Certain Students.--
            ``(1) Assistance.--If, by reason of any other 
        provision of law, a State participating in the block 
        grant demonstration program is prohibited from 
        providing assistance from amounts received from a grant 
        under the block grant demonstration program to a 
        nonprofit private school or Department of Defense 
        domestic dependents' school for a fiscal year to carry 
        out the block grant demonstration program, or the 
        Secretary determines that a State has substantially 
        failed or is unwilling to provide the assistance to a 
        nonprofit private school, Department of Defense 
        domestic dependents' school, or public school, for the 
        fiscal year, the Secretary shall, after consultation 
        with appropriate representatives of the State and 
        affected school, arrange for the provision of the 
        assistance to the school for the fiscal year in 
        accordance with the other sections of this Act.
            ``(2) Reduction in amount of state grant.--If the 
        Secretary arranges for the provision of assistance to a 
        nonprofit private school, Department of Defense 
        domestic dependents' school, or public school in a 
        State for a fiscal year under paragraph (1), the amount 
        of the grant to the State for the fiscal year shall be 
        reduced by the amount of the assistance provided to the 
        school.
    ``(l) Transition Provisions.--
            ``(1) Transition into block grant demonstration 
        program.--A State for which an application and State 
        plan are approved under subsection (d)(3) shall be 
        eligible to use a portion (as determined by the 
        Secretary) of the funds and commodities made available 
        to the State for the preceding fiscal year under the 
        school lunch program under the other sections of this 
        Act, and the school breakfast program under section 4 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1773), to 
        make a transition into the block grant demonstration 
        program.
            ``(2) Transition upon termination of block grant 
        demonstration program.--Upon termination of the block 
        grant demonstration program, a State that participated 
        in the block grant demonstration program shall be 
        eligible to use a portion (as determined by the 
        Secretary) of the funds and commodities made available 
        to the State for the preceding fiscal year under the 
        block grant demonstration program to make a transition 
        back to the operation of the school lunch program under 
        the other sections of this Act and the school breakfast 
        program under section 4 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1773).
    ``(m) Evaluations by the Secretary.--
            ``(1) In general.--Not later than 3 years after the 
        establishment of the block grant demonstration program 
        and not later than 180 days prior to the termination 
        date specified in subsection (n), the Secretary shall 
        conduct an evaluation, and submit a report on the 
        evaluation to Congress (including the comments of the 
        Comptroller General of the United States under 
        paragraph (3)), concerning the block grant 
        demonstration program.
            ``(2) Contents.--In carrying out paragraph (1), the 
        Secretary shall evaluate, using, to the extent 
        practicable, data required to be reported by the States 
        under this section--
                    ``(A) the effects of the block grant 
                demonstration program on the nutritional 
                quality of the meals offered;
                    ``(B) the degree to which children, 
                especially children who are low-income students 
                and children who are needy students, 
                participated in the block grant demonstration 
                program during each fiscal year covered by the 
                evaluation as compared to the participation of 
                the children in the block grant demonstration 
                program, or in the school lunch program under 
                the other sections of this Act and the school 
                breakfast program under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773), during 
                the prior fiscal year;
                    ``(C) the income distribution of the 
                children served and the amount of Federal 
                assistance the children received under the 
                block grant demonstration program for each 
                fiscal year;
                    ``(D) the schools participating in, and the 
                types of meals offered under, the block grant 
                demonstration program during each fiscal year 
                covered by the evaluation as compared to the 
                schools participating in, and the types of 
                meals offered under, the block grant 
                demonstration program, or the school lunch 
                program under the other sections of this Act 
                and the school breakfast program under section 
                4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773), during the prior fiscal year;
                    ``(E) how the implementation of the block 
                grant demonstration program differs from the 
                implementation of the school lunch program 
                under the other sections of this Act and the 
                school breakfast program under section 4 of the 
                Child Nutrition Act of 1966 (42 U.S.C. 1773);
                    ``(F) the effect of the block grant 
                demonstration program on the administrative 
                costs paid by States and schools to carry out 
                school lunch and school breakfast programs;
                    ``(G) the effect of the block grant 
                demonstration program on the paperwork required 
                to be completed by schools and parents under 
                school lunch and school breakfast programs; and
                    ``(H) such other issues concerning the 
                block grant demonstration program as the 
                Secretary considers appropriate.
            ``(3) Comments by the comptroller general.--The 
        Comptroller General of the United States shall--
                    ``(A) comment on the evaluation conducted 
                under paragraph (1), including the methodology 
                used by the Secretary in conducting the 
                evaluation; and
                    ``(B) submit the comments to the Secretary 
                for inclusion in the evaluation.
    ``(n) Termination of Authority.--The authority to carry out 
the block grant demonstration program shall terminate on 
September 30, 2000.''.
    (b) State Administrative Expenses.--The first sentence of 
section 7(a)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(a)(1)) is amended by inserting ``5,'' after ``4,''.
    (c) Prohibition on Waivers.--Section 12(l)(4) of the 
National School Lunch Act (42 U.S.C. 1760(l)(4)) is amended--
            (1) in subparagraph (M), by striking ``and'' at the 
        end;
            (2) in subparagraph (N), by striking the period at 
        the end and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(O) the school nutrition optional block 
                grant demonstration program established under 
                section 5.''.

                Subtitle B--Child Nutrition Act of 1966

SEC. 921. SPECIAL MILK PROGRAM.

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

SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

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

SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

SEC. 924. STATE ADMINISTRATIVE EXPENSES.

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

SEC. 925. REGULATIONS.

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

SEC. 926. PROHIBITIONS.

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

SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 928. ACCOUNTS AND RECORDS.

    The second sentence of section 16(a) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ``at all 
times be available'' and inserting ``be available at any 
reasonable time''.
SEC. 929. SPECIAL SUPPLEMENTAL 
NUTRITION PROGRAM FOR WOMEN, 
INFANTS, AND CHILDREN.
    (a) Definitions.--Section 17(b) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(b)) is amended--
            (1) in paragraph (15)(B)(iii), by inserting ``of 
        not more than 90 days'' after ``accommodation''; and
            (2) in paragraph (16)--
                    (A) in subparagraph (A), by adding ``and'' 
                at the end; and
                    (B) in subparagraph (B), by striking ``; 
                and'' and inserting a period; and
                    (C) by striking subparagraph (C).
    (b) Secretary's Promotion of WIC.--Section 17(c) of the Act 
is amended by striking paragraph (5).
    (c) Eligible Participants.--Section 17(d) of the Act is 
amended by striking paragraph (4).
    (d) Nutrition Education and Drug Abuse Education.--Section 
17(e) of the Act is amended--
            (1) in the first sentence of paragraph (1), by 
        striking ``shall ensure'' and all that follows through 
        ``is provided'' and inserting ``shall provide nutrition 
        education and may provide drug abuse education'';
            (2) in paragraph (2), by striking the third 
        sentence;
            (3) by striking paragraph (4) and inserting the 
        following:
            ``(4) Information.--The State agency may provide a 
        local agency with materials describing other programs 
        for which participants in the program may be 
        eligible.'';
            (4) in paragraph (5), by striking ``The State'' and 
        all that follows through ``local agency shall'' and 
        inserting ``A local agency may''; and
            (5) by striking paragraph (6).
    (e) State Plan.--Section 17(f) of the Act is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``annually to the 
                        Secretary, by a date specified by the 
                        Secretary, a'' and inserting ``to the 
                        Secretary, by a date specified by the 
                        Secretary, an initial''; and
                            (ii) by adding at the end the 
                        following: ``After submitting the 
                        initial plan, a State shall only be 
                        required to submit to the Secretary for 
                        approval a substantive change in the 
                        plan.'';
                    (B) in subparagraph (C)--
                            (i) by striking clause (iii) and 
                        inserting the following:
            ``(iii) a plan to coordinate operations under the 
        program with other services or programs that may 
        benefit participants in, and applicants for, the 
        program;'';
                            (ii) in clause (vi), by inserting 
                        after ``in the State'' the following: 
                        ``(including a plan to improve access 
                        to the program for participants and 
                        prospective applicants who are 
                        employed, or who reside in rural 
                        areas)'';
                            (iii) by striking clauses (vii), 
                        (ix), (x), and (xii);
                            (iv) in clause (xiii), by striking 
                        ``may require'' and inserting ``may 
                        reasonably require''; and
                            (v) by redesignating clauses 
                        (viii), (xi), and (xiii), as so 
                        amended, as clauses (vii), (viii), and 
                        (ix), respectively;
                    (C) by striking subparagraph (D); and
                    (D) by redesignating subparagraph (E) as 
                subparagraph (D);
            (2) by striking paragraphs (2), (6), (8), (20), 
        (22), and (24);
            (3) in the second sentence of paragraph (5), by 
        striking ``at all times be available'' and inserting 
        ``be available at any reasonable time'';
            (4) in paragraph (9)(B), by striking the second 
        sentence;
            (5) in the first sentence of paragraph (11), by 
        striking ``, including standards that will ensure 
        sufficient State agency staff'';
            (6) in paragraph (12), by striking the third 
        sentence;
            (7) in paragraph (14), by striking ``shall'' and 
        inserting ``may'';
            (8) in paragraph (17), by striking ``and to 
        accommodate'' and all that follows through 
        ``facilities'';
            (9) in paragraph (19), by striking ``shall'' and 
        inserting ``may''; and
            (10) by redesignating paragraphs (3), (4), (5), 
        (7), (9) through (19), (21), and (23), as so amended, 
        as paragraphs (2), (3), (4), (5), (6) through (16), 
        (17), and (18), respectively.
    (f) Information.--Section 17(g) of the Act is amended--
            (1) in paragraph (5), by striking ``the report 
        required under subsection (d)(4)'' and inserting 
        ``reports on program participant characteristics''; and
            (2) by striking paragraph (6).
    (g) Procurement of Infant Formula.--
            (1) In general.--Section 17(h) of the Act is 
        amended--
                    (A) in paragraph (4)(E), by striking ``and, 
                on'' and all that follows through ``(d)(4)'';
                    (B) in paragraph (8)--
                            (i) by striking subparagraphs (A), 
                        (C), and (M);
                            (ii) in subparagraph (G)--
                                    (I) in clause (i), by 
                                striking ``(i)''; and
                                    (II) by striking clauses 
                                (ii) through (ix);
                            (iii) in subparagraph (I), by 
                        striking ``Secre- tary--'' and all that 
                        follows through ``(v) may'' and 
                        inserting ``Secretary may'';
                            (iv) by redesignating subparagraphs 
                        (B) and (D) through (L) as 
                        subparagraphs (A) and (B) through (J), 
                        respectively;
                            (v) in subparagraph (A)(i), as so 
                        redesignated, by striking 
                        ``subparagraphs (C), (D), and (E)(iii), 
                        in carrying out subparagraph (A),'' and 
                        inserting ``subparagraphs (B) and 
                        (C)(iii),'';
                            (vi) in subparagraph (B)(i), as so 
                        redesignated, by striking 
                        ``subparagraph (B)'' each place it 
                        appears and inserting ``subparagraph 
                        (A)''; and
                            (vii) in subparagraph (C)(iii), as 
                        so redesignated, by striking 
                        ``subparagraph (B)'' and inserting 
                        ``subparagraph (A)''; and
                    (C) in paragraph (10)(A), by striking 
                ``shall'' and inserting ``may''.
            (2) Application.--The amendments made by paragraph 
        (1) shall not apply to a contract for the procurement 
        of infant formula under section 17(h)(8) of the Act 
        that is in effect on the effective date of this 
        subsection.
    (h) National Advisory Council on Maternal, Infant, and 
Fetal Nutrition.--Section 17(k)(3) of the Act is amended by 
striking ``Secretary shall designate'' and inserting ``Council 
shall elect''.
    (i) Completed Study; Community College Demonstration; 
Grants for Information and Data System.--Section 17 of the Act 
is amended by striking subsections (n), (o), and (p).
    (j) Disqualification of Vendors Who Are Disqualified Under 
the Food Stamp Program.--Section 17 of the Act, as so amended, 
is further amended by adding at the end the following:
    ``(n) Disqualification of Vendors Who Are Disqualified 
Under the Food Stamp Program.--
            ``(1) In general.--The Secretary shall issue 
        regulations providing criteria for the disqualification 
        under this section of an approved vendor that is 
        disqualified from accepting benefits under the food 
        stamp program established under the Food Stamp Act of 
        1977 (7 U.S.C. 2011 et seq.).
            ``(2) Terms.--A disqualification under paragraph 
        (1)--
                    ``(A) shall be for the same period as the 
                disqualification from the program referred to 
                in paragraph (1);
                    ``(B) may begin at a later date than the 
                disqualification from the program referred to 
                in paragraph (1); and
                    ``(C) shall not be subject to judicial or 
                administrative review.''.

SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

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

SEC. 931. NUTRITION EDUCATION AND TRAINING.

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

SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

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

            TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

SEC. 1001. SHORT TITLE.

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

                     Subtitle A--Food Stamp Program

SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

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

SEC. 1012. DEFINITION OF COUPON.

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

SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

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

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

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

SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

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

SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

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

SEC. 1018. EARNINGS OF STUDENTS.

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

SEC. 1019. ENERGY ASSISTANCE.

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

SEC. 1020. DEDUCTIONS FROM INCOME.

    (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 
U.S.C. 2014) is amended by striking subsection (e) and 
inserting the following:
    ``(e) Deductions From Income.--
            ``(1) Standard deduction.--The Secretary shall 
        allow a standard deduction for each household in the 48 
        contiguous States and the District of Columbia, Alaska, 
        Hawaii, Guam, and the Virgin Islands of the United 
        States of $134, $229, $189, $269, and $118, 
        respectively.
            ``(2) Earned income deduction.--
                    ``(A) Definition of earned income.--In this 
                paragraph, the term `earned income' does not 
                include income excluded by subsection (d) or 
                any portion of income earned under a work 
                supplementation or support program, as defined 
                under section 16(b), that is attributable to 
                public assistance.
                    ``(B) Deduction.--Except as provided in 
                subparagraph (C), a household with earned 
                income shall be allowed a deduction of 20 
                percent of all earned income (other than income 
                excluded by subsection (d)) to compensate for 
                taxes, other mandatory deductions from salary, 
                and work expenses.
                    ``(C) Exception.--The deduction described 
                in subparagraph (B) shall not be allowed with 
                respect to determining an overissuance due to 
                the failure of a household to report earned 
                income in a timely manner.
            ``(3) Dependent care deduction.--
                    ``(A) In general.--A household shall be 
                entitled, with respect to expenses (other than 
                excluded expenses described in subparagraph 
                (B)) for dependent care, to a dependent care 
                deduction, the maximum allowable level of which 
                shall be $200 per month for each dependent 
                child under 2 years of age and $175 per month 
                for each other dependent, for the actual cost 
                of payments necessary for the care of a 
                dependent if the care enables a household 
                member to accept or continue employment, or 
                training or education that is preparatory for 
                employment.
                    ``(B) Excluded expenses.--The excluded 
                expenses referred to in subparagraph (A) are--
                            ``(i) expenses paid on behalf of 
                        the household by a third party;
                            ``(ii) amounts made available and 
                        excluded for the expenses referred to 
                        in subparagraph (A) under subsection 
                        (d)(3); and
                            ``(iii) expenses that are paid 
                        under section 6(d)(4).
            ``(4) Deduction for child support payments.--
                    ``(A) In general.--A household shall be 
                entitled to a deduction for child support 
                payments made by a household member to or for 
                an individual who is not a member of the 
                household if the household member is legally 
                obligated to make the payments.
                    ``(B) Methods for determining amount.--The 
                Secretary may prescribe by regulation the 
                methods, including calculation on a 
                retrospective basis, that a State agency shall 
                use to determine the amount of the deduction 
                for child support payments.
            ``(5) Homeless shelter allowance.--A State agency 
        may develop a standard homeless shelter allowance, 
        which shall not exceed $139 per month, for such 
        expenses as may reasonably be expected to be incurred 
        by households in which all members are homeless 
        individuals but are not receiving free shelter 
        throughout the month. A State agency that develops the 
        allowance may use the allowance in determining 
        eligibility and allotments for the households, except 
        that the State agency may prohibit the use of the 
        allowance for households with extremely low shelter 
        costs.
            ``(6) Excess medical expense deduction.--
                    ``(A) In general.--A household containing 
                an elderly or disabled member shall be 
                entitled, with respect to expenses other than 
                expenses paid on behalf of the household by a 
                third party, to an excess medical expense 
                deduction for the portion of the actual costs 
                of allowable medical expenses, incurred by the 
                elderly or disabled member, exclusive of 
                special diets, that exceeds $35 per month.
                    ``(B) Method of claiming deduction.--
                            ``(i) In general.--A State agency 
                        shall offer an eligible household under 
                        subparagraph (A) a method of claiming a 
                        deduction for recurring medical 
                        expenses that are initially verified 
                        under the excess medical expense 
                        deduction in lieu of submitting 
                        information or verification on actual 
                        expenses on a monthly basis.
                            ``(ii) Method.--The method 
                        described in clause (i) shall--
                                    ``(I) be designed to 
                                minimize the burden for the 
                                eligible elderly or disabled 
                                household member choosing to 
                                deduct the recurrent medical 
                                expenses of the member pursuant 
                                to the method;
                                    ``(II) rely on reasonable 
                                estimates of the expected 
                                medical expenses of the member 
                                for the certification period 
                                (including changes that can be 
                                reasonably anticipated based on 
                                available information about the 
                                medical condition of the 
                                member, public or private 
                                medical insurance coverage, and 
                                the current verified medical 
                                expenses incurred by the 
                                member); and
                                    ``(III) not require further 
                                reporting or verification of a 
                                change in medical expenses if 
                                such a change has been 
                                anticipated for the 
                                certification period.
            ``(7) Excess shelter expense deduction.--
                    ``(A) In general.--A household shall be 
                entitled, with respect to expenses other than 
                expenses paid on behalf of the household by a 
                third party, to an excess shelter expense 
                deduction to the extent that the monthly amount 
                expended by a household for shelter exceeds an 
                amount equal to 50 percent of monthly household 
                income after all other applicable deductions 
                have been allowed.
                    ``(B) Maximum amount of deduction.--In the 
                case of a household that does not contain an 
                elderly or disabled individual, the excess 
                shelter expense deduction shall not exceed--
                            ``(i) in the 48 contiguous States 
                        and the District of Columbia, $247 per 
                        month; and
                            ``(ii) in Alaska, Hawaii, Guam, and 
                        the Virgin Islands of the United 
                        States, $429, $353, $300, and $182 per 
                        month, respectively.
                    ``(C) Standard utility allowance.--
                            ``(i) In general.--In computing the 
                        excess shelter expense deduction, a 
                        State agency may use a standard utility 
                        allowance in accordance with 
                        regulations promulgated by the 
                        Secretary, except that a State agency 
                        may use an allowance that does not 
                        fluctuate within a year to reflect 
                        seasonal variations.
                            ``(ii) Restrictions on heating and 
                        cooling expenses.--An allowance for a 
                        heating or cooling expense may not be 
                        used in the case of a household that--
                                    ``(I) does not incur a 
                                heating or cooling expense, as 
                                the case may be;
                                    ``(II) does incur a heating 
                                or cooling expense but is 
                                located in a public housing 
                                unit that has central utility 
                                meters and charges households, 
                                with regard to the expense, 
                                only for excess utility costs; 
                                or
                                    ``(III) shares the expense 
                                with, and lives with, another 
                                individual not participating in 
                                the food stamp program, another 
                                household participating in the 
                                food stamp program, or both, 
                                unless the allowance is 
                                prorated between the household 
                                and the other individual, 
                                household, or both.
                            ``(iii) Mandatory allowance.--
                                    ``(I) In general.--A State 
                                agency may make the use of a 
                                standard utility allowance 
                                mandatory for all households 
                                with qualifying utility costs 
                                if--
                                            ``(aa) the State 
                                        agency has developed 1 
                                        or more standards that 
                                        include the cost of 
                                        heating and cooling and 
                                        1 or more standards 
                                        that do not include the 
                                        cost of heating and 
                                        cooling; and
                                            ``(bb) the 
                                        Secretary finds that 
                                        the standards will not 
                                        result in an increased 
                                        cost to the Secretary.
                                    ``(II) Household 
                                election.--A State agency that 
                                has not made the use of a 
                                standard utility allowance 
                                mandatory under subclause (I) 
                                shall allow a household to 
                                switch, at the end of a 
                                certification period, between 
                                the standard utility allowance 
                                and a deduction based on the 
                                actual utility costs of the 
                                household.
                            ``(iv) Availability of allowance to 
                        recipients of energy assistance.--
                                    ``(I) In general.--Subject 
                                to subclause (II), if a State 
                                agency elects to use a standard 
                                utility allowance that reflects 
                                heating or cooling costs, the 
                                standard utility allowance 
                                shall be made available to 
                                households receiving a payment, 
                                or on behalf of which a payment 
                                is made, under the Low-Income 
                                Home Energy Assistance Act of 
                                1981 (42 U.S.C. 8621 et seq.) 
                                or other similar energy 
                                assistance program, if the 
                                household still incurs out-of-
                                pocket heating or cooling 
                                expenses in excess of any 
                                assistance paid on behalf of 
                                the household to an energy 
                                provider.
                                    ``(II) Separate 
                                allowance.--A State agency may 
                                use a separate standard utility 
                                allowance for households on 
                                behalf of which a payment 
                                described in subclause (I) is 
                                made, but may not be required 
                                to do so.
                                    ``(III) States not electing 
                                to use separate allowance.--A 
                                State agency that does not 
                                elect to use a separate 
                                allowance but makes a single 
                                standard utility allowance 
                                available to households 
                                incurring heating or cooling 
                                expenses (other than a 
                                household described in 
                                subclause (I) or (II) of 
                                subparagraph (C)(ii)) may not 
                                be required to reduce the 
                                allowance due to the provision 
                                (directly or indirectly) of 
                                assistance under the Low-Income 
                                Home Energy Assistance Act of 
                                1981 (42 U.S.C. 8621 et seq.).
                                    ``(IV) Proration of 
                                assistance.--For the purpose of 
                                the food stamp program, 
                                assistance provided under the 
                                Low-Income Home Energy 
                                Assistance Act of 1981 (42 
                                U.S.C. 8621 et seq.) shall be 
                                considered to be prorated over 
                                the entire heating or cooling 
                                season for which the assistance 
                                was provided.''.
    (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 
U.S.C. 2020(e)(3)) is amended by striking ``. Under rules 
prescribed'' and all that follows through ``verifies higher 
expenses''.

SEC. 1021. VEHICLE ALLOWANCE.

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

SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

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

SEC. 1025. DISQUALIFICATION.

    (a) In General.--Section 6(d) of the Food Stamp Act of 1977 
(7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless 
otherwise exempted by the provisions'' and all that follows 
through the end of paragraph (1) and inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No physically and 
                mentally fit individual over the age of 15 and 
                under the age of 60 shall be eligible to 
                participate in the food stamp program if the 
                individual--
                            ``(i) refuses, at the time of 
                        application and every 12 months 
                        thereafter, to register for employment 
                        in a manner prescribed by the 
                        Secretary;
                            ``(ii) refuses without good cause 
                        to participate in an employment and 
                        training program under paragraph (4), 
                        to the extent required by the State 
                        agency;
                            ``(iii) refuses without good cause 
                        to accept an offer of employment, at a 
                        site or plant not subject to a strike 
                        or lockout at the time of the refusal, 
                        at a wage not less than the higher of--
                                    ``(I) the applicable 
                                Federal or State minimum wage; 
                                or
                                    ``(II) 80 percent of the 
                                wage that would have governed 
                                had the minimum hourly rate 
                                under section 6(a)(1) of the 
                                Fair Labor Standards Act of 
                                1938 (29 U.S.C. 206(a)(1)) been 
                                applicable to the offer of 
                                employment;
                            ``(iv) refuses without good cause 
                        to provide a State agency with 
                        sufficient information to allow the 
                        State agency to determine the 
                        employment status or the job 
                        availability of the individual;
                            ``(v) voluntarily and without good 
                        cause--
                                    ``(I) quits a job; or
                                    ``(II) reduces work effort 
                                and, after the reduction, the 
                                individual is working less than 
                                30 hours per week; or
                            ``(vi) fails to comply with section 
                        20.
                    ``(B) Household ineligibility.--If an 
                individual who is the head of a household 
                becomes ineligible to participate in the food 
                stamp program under subparagraph (A), the 
                household shall, at the option of the State 
                agency, become ineligible to participate in the 
                food stamp program for a period, determined by 
                the State agency, that does not exceed the 
                lesser of--
                            ``(i) the duration of the 
                        ineligibility of the individual 
                        determined under subparagraph (C); or
                            ``(ii) 180 days.
                    ``(C) Duration of ineligibility.--
                            ``(i) First violation.--The first 
                        time that an individual becomes 
                        ineligible to participate in the food 
                        stamp program under subparagraph (A), 
                        the individual shall remain ineligible 
                        until the later of--
                                    ``(I) the date the 
                                individual becomes eligible 
                                under subparagraph (A);
                                    ``(II) the date that is 1 
                                month after the date the 
                                individual became ineligible; 
                                or
                                    ``(III) a date determined 
                                by the State agency that is not 
                                later than 3 months after the 
                                date the individual became 
                                ineligible.
                            ``(ii) Second violation.--The 
                        second time that an individual becomes 
                        ineligible to participate in the food 
                        stamp program under subparagraph (A), 
                        the individual shall remain ineligible 
                        until the later of--
                                    ``(I) the date the 
                                individual becomes eligible 
                                under subparagraph (A);
                                    ``(II) the date that is 3 
                                months after the date the 
                                individual became ineligible; 
                                or
                                    ``(III) a date determined 
                                by the State agency that is not 
                                later than 6 months after the 
                                date the individual became 
                                ineligible.
                            ``(iii) Third or subsequent 
                        violation.--The third or subsequent 
                        time that an individual becomes 
                        ineligible to participate in the food 
                        stamp program under subparagraph (A), 
                        the individual shall remain ineligible 
                        until the later of--
                                    ``(I) the date the 
                                individual becomes eligible 
                                under subparagraph (A);
                                    ``(II) the date that is 6 
                                months after the date the 
                                individual became ineligible;
                                    ``(III) a date determined 
                                by the State agency; or
                                    ``(IV) at the option of the 
                                State agency, permanently.
                    ``(D) Administration.--
                            ``(i) Good cause.--The Secretary 
                        shall determine the meaning of good 
                        cause for the purpose of this 
                        paragraph.
                            ``(ii) Voluntary quit.--The 
                        Secretary shall determine the meaning 
                        of voluntarily quitting and reducing 
                        work effort for the purpose of this 
                        paragraph.
                            ``(iii) Determination by state 
                        agency.--
                                    ``(I) In general.--Subject 
                                to subclause (II) and clauses 
                                (i) and (ii), a State agency 
                                shall determine--
                                            ``(aa) the meaning 
                                        of any term in 
                                        subparagraph (A);
                                            ``(bb) the 
                                        procedures for 
                                        determining whether an 
                                        individual is in 
                                        compliance with a 
                                        requirement under 
                                        subparagraph (A); and
                                            ``(cc) whether an 
                                        individual is in 
                                        compliance with a 
                                        requirement under 
                                        subparagraph (A).
                                    ``(II) Not less 
                                restrictive.--A State agency 
                                may not determine a meaning, 
                                procedure, or determination 
                                under subclause (I) to be less 
                                restrictive than a comparable 
                                meaning, procedure, or 
                                determination under a State 
                                program funded under part A of 
                                title IV of the Social Security 
                                Act (42 U.S.C. 601 et seq.).
                            ``(iv) Strike against the 
                        government.--For the purpose of 
                        subparagraph (A)(v), an employee of the 
                        Federal Government, a State, or a 
                        political subdivision of a State, who 
                        is dismissed for participating in a 
                        strike against the Federal Government, 
                        the State, or the political subdivision 
                        of the State shall be considered to 
                        have voluntarily quit without good 
                        cause.
                            ``(v) Selecting a head of 
                        household.--
                                    ``(I) In general.--For the 
                                purpose of this paragraph, the 
                                State agency shall allow the 
                                household to select any adult 
                                parent of a child in the 
                                household as the head of the 
                                household if all adult 
                                household members making 
                                application under the food 
                                stamp program agree to the 
                                selection.
                                    ``(II) Time for making 
                                designation.--A household may 
                                designate the head of the 
                                household under subclause (I) 
                                each time the household is 
                                certified for participation in 
                                the food stamp program, but may 
                                not change the designation 
                                during a certification period 
                                unless there is a change in the 
                                composition of the household.
                            ``(vi) Change in head of 
                        household.--If the head of a household 
                        leaves the household during a period in 
                        which the household is ineligible to 
                        participate in the food stamp program 
                        under subparagraph (B)--
                                    ``(I) the household shall, 
                                if otherwise eligible, become 
                                eligible to participate in the 
                                food stamp program; and
                                    ``(II) if the head of the 
                                household becomes the head of 
                                another household, the 
                                household that becomes headed 
                                by the individual shall become 
                                ineligible to participate in 
                                the food stamp program for the 
                                remaining period of 
                                ineligibility.''.
    (b) Conforming Amendment.--
            (1) The second sentence of section 17(b)(2) of the 
        Act (7 U.S.C. 2026(b)(2)) is amended by striking 
        ``6(d)(1)(i)'' and inserting ``6(d)(1)(A)(i)''.
            (2) Section 20 of the Act (7 U.S.C. 2029) is 
        amended by striking subsection (f) and inserting the 
        following:
    ``(f) Disqualification.--An individual or a household may 
become ineligible under section 6(d)(1) to participate in the 
food stamp program for failing to comply with this section.''.

SEC. 1026. CARETAKER EXEMPTION.

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

SEC. 1027. EMPLOYMENT AND TRAINING.

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

SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

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

SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

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

SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

SEC. 1033. WORK REQUIREMENT.

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

SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

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

SEC. 1036. BENEFITS ON RECERTIFICATION.

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

SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

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

SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

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

SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

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

SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

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

SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

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

SEC. 1047. EXPEDITED COUPON SERVICE.

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

SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

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

SEC. 1052. COLLECTION OF OVERISSUANCES.

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

SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

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

SEC. 1055. LIMITATION OF FEDERAL MATCH.

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

SEC. 1056. STANDARDS FOR ADMINISTRATION.

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

SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

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

SEC. 1058. WAIVER AUTHORITY.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended--
            (1) by redesignating subparagraph (B) as 
        subparagraph (C); and
            (2) in subparagraph (A)--
                    (A) by striking the second sentence; and
                    (B) by striking ``benefits to eligible 
                households, including'' and inserting the 
                following: ``benefits to eligible households, 
                and may waive any requirement of this Act to 
                the extent necessary for the project to be 
                conducted.
                    ``(B) Project requirements.--
                            ``(i) Program goal.--The Secretary 
                        may not conduct a project under 
                        subparagraph (A) unless the project is 
                        consistent with the goal of the food 
                        stamp program of providing food 
                        assistance to raise levels of nutrition 
                        among low-income individuals.
                            ``(ii) Permissible projects.--The 
                        Secretary may conduct a project under 
                        subparagraph (A) to--
                                    ``(I) improve program 
                                administration;
                                    ``(II) increase the self-
                                sufficiency of food stamp 
                                recipients;
                                    ``(III) test innovative 
                                welfare reform strategies; and
                                    ``(IV) allow greater 
                                conformity with the rules of 
                                other programs than would be 
                                allowed but for this paragraph.
                            ``(iii) Impermissible projects.--
                        The Secretary may not conduct a project 
                        under subparagraph (A) that--
                                    ``(I) involves the payment 
                                of the value of an allotment in 
                                the form of cash, unless the 
                                project was approved prior to 
                                the date of enactment of this 
                                subparagraph;
                                    ``(II) substantially 
                                transfers funds made available 
                                under this Act to services or 
                                benefits provided primarily 
                                through another public 
                                assistance program; or
                                    ``(III) is not limited to a 
                                specific time period.
                            ``(iv) Additional included 
                        projects.--Pilot or experimental 
                        projects may include''.

SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

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

SEC. 1060. RESPONSE TO WAIVERS.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)), as amended by section 1058, is further amended by 
adding at the end the following:
                    ``(D) Response to waivers.--
                            ``(i) Response.--Not later than 60 
                        days after the date of receiving a 
                        request for a waiver under subparagraph 
                        (A), the Secretary shall provide a 
                        response that--
                                    ``(I) approves the waiver 
                                request;
                                    ``(II) denies the waiver 
                                request and explains any 
                                modification needed for 
                                approval of the waiver request;
                                    ``(III) denies the waiver 
                                request and explains the 
                                grounds for the denial; or
                                    ``(IV) requests 
                                clarification of the waiver 
                                request.
                            ``(ii) Failure to respond.--If the 
                        Secretary does not provide a response 
                        in accordance with clause (i), the 
                        waiver shall be considered approved, 
                        unless the approval is specifically 
                        prohibited by this Act.
                            ``(iii) Notice of denial.--On 
                        denial of a waiver request under clause 
                        (i)(III), the Secretary shall provide a 
                        copy of the waiver request and a 
                        description of the reasons for the 
                        denial to the Committee on Agriculture 
                        of the House of Representatives and the 
                        Committee on Agriculture, Nutrition, 
                        and Forestry of the Senate.''.

SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

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

SEC. 1062. ADJUSTABLE FOOD STAMP CAP.

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

SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.

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

``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) Definition of Federal Costs.--In this section, the 
term `Federal costs' does not include any Federal costs 
incurred under section 17.
    ``(b) Election.--Subject to subsection (d), a State may 
elect to carry out a Simplified Food Stamp Program (referred to 
in this section as a `Program'), statewide or in a political 
subdivision of the State, in accordance with this section.
    ``(c) Operation of Program.--If a State elects to carry out 
a Program, within the State or a political subdivision of the 
State--
            ``(1) a household in which all members receive 
        assistance under a State program funded under part A of 
        title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) shall automatically be eligible to participate in 
        the Program; and
            ``(2) subject to subsection (f), benefits under the 
        Program shall be determined under rules and procedures 
        established by the State under--
                    ``(A) a State program funded under part A 
                of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.);
                    ``(B) the food stamp program (other than 
                section 25); or
                    ``(C) a combination of a State program 
                funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.) and the 
                food stamp program (other than section 25).
    ``(d) Approval of Program.--
            ``(1) State plan.--A State agency may not operate a 
        Program unless the Secretary approves a State plan for 
        the operation of the Program under paragraph (2).
            ``(2) Approval of plan.--The Secretary shall 
        approve any State plan to carry out a Program if the 
        Secretary determines that the plan--
                    ``(A) complies with this section; and
                    ``(B) contains sufficient documentation 
                that the plan will not increase Federal costs 
                for any fiscal year.
    ``(e) Increased Federal Costs.--
            ``(1) Determination.--During each fiscal year and 
        not later than 90 days after the end of each fiscal 
        year, the Secretary shall determine whether a Program 
        being carried out by a State agency is increasing 
        Federal costs under this Act above the Federal costs 
        incurred under the food stamp program in operation in 
        the State or political subdivision of the State for the 
        fiscal year prior to the implementation of the Program, 
        adjusted for any changes in--
                    ``(A) participation;
                    ``(B) the income of participants in the 
                food stamp program that is not attributable to 
                public assistance; and
                    ``(C) the thrifty food plan under section 
                3(o).
            ``(2) Notification.--If the Secretary determines 
        that the Program has increased Federal costs under this 
        Act for any fiscal year or any portion of any fiscal 
        year, the Secretary shall notify the State not later 
        than 30 days after the Secretary makes the 
        determination under paragraph (1).
            ``(3) Enforcement.--
                    ``(A) Corrective action.--Not later than 90 
                days after the date of a notification under 
                paragraph (2), the State shall submit a plan 
                for approval by the Secretary for prompt 
                corrective action that is designed to prevent 
                the Program from increasing Federal costs under 
                this Act.
                    ``(B) Termination.--If the State does not 
                submit a plan under subparagraph (A) or carry 
                out a plan approved by the Secretary, the 
                Secretary shall terminate the approval of the 
                State agency operating the Program and the 
                State agency shall be ineligible to operate a 
                future Program.
    ``(f) Rules and Procedures.--
            ``(1) In general.--In operating a Program, a State 
        or political subdivision of a State may follow the 
        rules and procedures established by the State or 
        political subdivision under a State program funded 
        under part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.) or under the food stamp program.
            ``(2) Standardized deductions.--In operating a 
        Program, a State or political subdivision of a State 
        may standardize the deductions provided under section 
        5(e). In developing the standardized deduction, the 
        State shall consider the work expenses, dependent care 
        costs, and shelter costs of participating households.
            ``(3) Requirements.--In operating a Program, a 
        State or political subdivision shall comply with the 
        requirements of--
                    ``(A) subsections (a) through (g) of 
                section 7;
                    ``(B) section 8(a) (except that the income 
                of a household may be determined under a State 
                program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.));
                    ``(C) subsection (b) and (d) of section 8;
                    ``(D) subsections (a), (c), (d), and (n) of 
                section 11;
                    ``(E) paragraphs (8), (12), (16), (18), 
                (20), (24), and (25) of section 11(e);
                    ``(F) section 11(e)(10) (or a comparable 
                requirement established by the State under a 
                State program funded under part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et 
                seq.)); and
                    ``(G) section 16.
            ``(4) Limitation on eligibility.--Notwithstanding 
        any other provision of this section, a household may 
        not receive benefits under this section as a result of 
        the eligibility of the household under a State program 
        funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.), unless the Secretary 
        determines that any household with income above 130 
        percent of the poverty guidelines is not eligible for 
        the program.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 
U.S.C. 2020(e)), as amended by sections 1028(b) and 1044, is 
further amended by adding at the end the following:
            ``(25) if a State elects to carry out a Simplified 
        Food Stamp Program under section 24, the plans of the 
        State agency for operating the program, including--
                    ``(A) the rules and procedures to be 
                followed by the State agency to determine food 
                stamp benefits;
                    ``(B) how the State agency will address the 
                needs of households that experience high 
                shelter costs in relation to the incomes of the 
                households; and
                    ``(C) a description of the method by which 
                the State agency will carry out a quality 
                control system under section 16(c).''.
    (c) Conforming Amendments.--
            (1) Section 8 of the Act (7 U.S.C. 2017), as 
        amended by section 1039, is further amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as 
                subsection (e).
            (2) Section 17 of the Act (7 U.S.C. 2026) is 
        amended--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsections (j) 
                through (l) as subsections (i) through (k), 
                respectively.

SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Food assistance.--The term `food assistance' 
        means assistance that may be used only to obtain food, 
        as defined in section 3(g).
            ``(2) State.--The term `State' means each of the 50 
        States, the District of Columbia, Guam, and the Virgin 
        Islands of the United States.
    ``(b) Establishment.--The Secretary shall establish a 
program to make grants to States in accordance with this 
section to provide--
            ``(1) food assistance to needy individuals and 
        families residing in the State; and
            ``(2) funds for administrative costs incurred in 
        providing the assistance.
    ``(c) Election.--
            ``(1) In general.--A State may annually elect to 
        participate in the program established under subsection 
        (b) if the State--
                    ``(A) has fully implemented an electronic 
                benefit transfer system that operates in the 
                entire State;
                    ``(B) has a payment error rate under 
                section 16(c) that is not more than 6 percent 
                as announced most recently by the Secretary; or
                    ``(C) has a payment error rate in excess of 
                6 percent and agrees to contribute non-Federal 
                funds for the fiscal year of the grant, for 
                benefits and administration of the State's food 
                assistance program, the amount determined under 
                paragraph (2).
            ``(2) State mandatory contributions.--
                    ``(A) In general.--In the case of a State 
                that elects to participate in the program under 
                paragraph (1)(C), the State shall agree to 
                contribute, for a fiscal year, an amount equal 
                to--
                    ``(A)(i) the benefits issued in the State; 
                multiplied by
                    ``(ii) the payment error rate of the State; 
                minus
                    ``(B)(i) the benefits issued in the State; 
                multiplied by
                    ``(ii) 6 percent.
                    ``(B) Determination.--Notwithstanding 
                sections 13 and 14, the calculation of the 
                contribution shall be based solely on the 
                determination of the Secretary of the payment 
                error rate.
                    ``(C) Data.--For purposes of implementing 
                subparagraph (A) for a fiscal year, the 
                Secretary shall use the data for the most 
                recent fiscal year available.
            ``(3) Election limitation.--
                    ``(A) Re-entering food stamp program.--A 
                State that elects to participate in the program 
                under paragraph (1) may in a subsequent year 
                decline to elect to participate in the program 
                and instead participate in the food stamp 
                program in accordance with the other sections 
                of this Act.
                    ``(B) Limitation.--Subsequent to re-
                entering the food stamp program under 
                subparagraph (A), the State shall only be 
                eligible to participate in the food stamp 
                program in accordance with the other sections 
                of this Act and shall not be eligible to elect 
                to participate in the program established under 
                subsection (b).
            ``(4) Program exclusive.--
                    ``(A) In general.--A State that is 
                participating in the program established under 
                subsection (b) shall not be subject to, or 
                receive any benefit under, this Act except as 
                provided in this section.
                    ``(B) Contract with federal government.--
                Nothing in this section shall prohibit a State 
                from contracting with the Federal Government 
                for the provision of services or materials 
                necessary to carry out a program under this 
                section.
    ``(d) Lead Agency.--A State desiring to receive a grant 
under this section shall designate, in an application submitted 
to the Secretary under subsection (e)(1), an appropriate State 
agency responsible for the administration of the program under 
this section as the lead agency.
    ``(e) Application and Plan.--
            ``(1) Application.--To be eligible to receive 
        assistance under this section, a State shall prepare 
        and submit to the Secretary an application at such 
        time, in such manner, and containing such information 
        as the Secretary shall by regulation require, 
        including--
                    ``(A) an assurance that the State will 
                comply with the requirements of this section;
                    ``(B) a State plan that meets the 
                requirements of paragraph (3); and
                    ``(C) an assurance that the State will 
                comply with the requirements of the State plan 
                under paragraph (3).
            ``(2) Annual plan.--The State plan contained in the 
        application under paragraph (1) shall be submitted for 
        approval annually.
            ``(3) Requirements of plan.--
                    ``(A) Lead agency.--The State plan shall 
                identify the lead agency.
                    ``(B) Use of block grant funds.--The State 
                plan shall provide that the State shall use the 
                amounts provided to the State for each fiscal 
                year under this section--
                            ``(i) to provide food assistance to 
                        needy individuals and families residing 
                        in the State, other than residents of 
                        institutions who are ineligible for 
                        food stamps under section 3(i); and
                            ``(ii) to pay administrative costs 
                        incurred in providing the assistance.
                    ``(C) Groups served.--The State plan shall 
                describe how and to what extent the program 
                will serve specific groups of individuals and 
                families and how the treatment will differ from 
                treatment under the food stamp program under 
                the other sections of this Act of the 
                individuals and families, including--
                            ``(i) elderly individuals and 
                        families;
                            ``(ii) migrants or seasonal 
                        farmworkers;
                            ``(iii) homeless individuals and 
                        families;
                            ``(iv) individuals and families who 
                        live in institutions eligible under 
                        section 3(i);
                            ``(v) individuals and families with 
                        earnings; and
                            ``(vi) members of Indian tribes or 
                        tribal organizations.
                    ``(D) Assistance for entire state.--The 
                State plan shall provide that benefits under 
                this section shall be available throughout the 
                entire State.
                    ``(E) Notice and hearings.--The State plan 
                shall provide that an individual or family who 
                applies for, or receives, assistance under this 
                section shall be provided with notice of, and 
                an opportunity for a hearing on, any action 
                under this section that adversely affects the 
                individual or family.
                    ``(F) Assessment of Needs.--The State plan 
                shall assess the food and nutrition needs of 
                needy persons residing in the State.
                    ``(G) Eligibility standards.--The State 
                plan shall describe the income, resource, and 
                other eligibility standards that are 
                established for the receipt of assistance under 
                this section.
                    ``(H) Disqualification of fleeing felons.--
                The State plan shall provide for the 
                disqualification of any individual who would be 
                disqualified from participating in the food 
                stamp program under section 6(k).
                    ``(I) Disqualification for child support 
                arrears.--The State plan shall provide for the 
                disqualification of any individual who would be 
                disqualified from participating in the food 
                stamp program under section 6(n).
                    ``(J) Receiving benefits in more than 1 
                jurisdiction.--The State plan shall establish a 
                system for the exchange of information with 
                other States to verify the identity and receipt 
                of benefits by recipients.
                    ``(K) Privacy.--The State plan shall 
                provide for safeguarding and restricting the 
                use and disclosure of information about any 
                individual or family receiving assistance under 
                this section.
                    ``(L) Other information.--The State plan 
                shall contain such other information as may be 
                required by the Secretary.
            ``(4) Approval of application and plan.--The 
        Secretary shall approve an application and State plan 
        that satisfies the requirements of this section.
    ``(f) No Individual or Family Entitlement to Assistance.--
Nothing in this section--
            ``(1) entitles any individual or family to 
        assistance under this section; or
            ``(2) limits the right of a State to impose 
        additional limitations or conditions on assistance 
        under this section.
    ``(g) Benefits for Aliens.--
            ``(1) Eligibility.--No individual who is an alien 
        shall be eligible to receive benefits under a State 
        plan approved under subsection (e)(4) if the individual 
        is not eligible to participate in the food stamp 
        program due to the alien status of the individual.
            ``(2) Income.--The State plan shall provide that 
        the income of an alien shall be determined in 
        accordance with section 5(i).
    ``(h) Employment and Training.--
            ``(1) Work requirements.--No individual or 
        household shall be eligible to receive benefits under a 
        State plan funded under this section if the individual 
        or household is not eligible to participate in the food 
        stamp program under subsection (d) or (o) of section 6.
            ``(2) Work programs.--Each State shall implement an 
        employment and training program in accordance with the 
        terms and conditions of section 6(d)(4) for individuals 
        under the program and shall be eligible to receive 
        funding under section 16(h).
    ``(i) Enforcement.--
            ``(1) Review of compliance with state plan.--The 
        Secretary shall review and monitor State compliance 
        with this section and the State plan approved under 
        subsection (e)(4).
            ``(2) Noncompliance.--
                    ``(A) In general.--If the Secretary, after 
                reasonable notice to a State and opportunity 
                for a hearing, finds that--
                            ``(i) there has been a failure by 
                        the State to comply substantially with 
                        any provision or requirement set forth 
                        in the State plan approved under 
                        subsection (e)(4); or
                            ``(ii) in the operation of any 
                        program or activity for which 
                        assistance is provided under this 
                        section, there is a failure by the 
                        State to comply substantially with any 
                        provision of this section;
                the Secretary shall notify the State of the 
                finding and that no further grants will be made 
                to the State under this section (or, in the 
                case of noncompliance in the operation of a 
                program or activity, that no further grants to 
                the State will be made with respect to the 
                program or activity) until the Secretary is 
                satisfied that there is no longer any failure 
                to comply or that the noncompliance will be 
                promptly corrected.
                    ``(B) Other penalties.--In the case of a 
                finding of noncompliance made pursuant to 
                subparagraph (A), the Secretary may, in 
                addition to, or in lieu of, imposing the 
                penalties described in subparagraph (A), impose 
                other appropriate penalties, including 
                recoupment of money improperly expended for 
                purposes prohibited or not authorized by this 
                section and disqualification from the receipt 
                of financial assistance under this section.
                    ``(C) Notice.--The notice required under 
                subparagraph (A) shall include a specific 
                identification of any additional penalty being 
                imposed under subparagraph (B).
            ``(3) Issuance of regulations.--The Secretary shall 
        establish by regulation procedures for--
                    ``(A) receiving, processing, and 
                determining the validity of complaints made to 
                the Secretary concerning anyfailure of a State 
to comply with the State plan or any requirement of this section; and
                    ``(B) imposing penalties under this 
                section.
    ``(j) Grant.--
            ``(1) In general.--For each fiscal year, the 
        Secretary shall pay to a State that has an application 
        approved by the Secretary under subsection (e)(4) an 
        amount that is equal to the grant of the State under 
        subsection (m) for the fiscal year.
            ``(2) Method of Grant.--The Secretary shall make a 
        grant to a State for a fiscal year under this section 
        by issuing 1 or more letters of credit for the fiscal 
        year, with necessary adjustments on account of 
        overpayments or underpayments, as determined by the 
        Secretary.
            ``(3) Spending of grants by state.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a grant to a State determined 
                under subsection (m)(1) for a fiscal year may 
                be expended by the State only in the fiscal 
                year.
                    ``(B) Carryover.--The State may reserve up 
                to 10 percent of a grant determined under 
                subsection (m)(1) for a fiscal year to provide 
                assistance under this section in subsequent 
                fiscal years, except that the reserved funds 
                may not exceed 30 percent of the total grant 
                received under this section for a fiscal year.
            ``(4) Food assistance and administrative 
        expenditures.--In each fiscal year, not more than 6 
        percent of the Federal and State funds required to be 
        expended by a State under this section shall be used 
        for administrative expenses.
            ``(5) Provision of food assistance.--A State may 
        provide food assistance under this section in any 
        manner determined appropriate by the State, such as 
        electronic benefit transfer limited to food purchases, 
        coupons limited to food purchases, or direct provision 
        of commodities.
    ``(k) Quality Control.--Each State participating in the 
program established under this section shall maintain a system 
in accordance with, and shall be subject to section 16(c), 
including sanctions and eligibility for incentive payment under 
section 16(c), adjusted for State specific characteristics 
under regulations issued by the Secretary.
    ``(l) Nondiscrimination.--
            ``(1) In general.--The Secretary shall not provide 
        financial assistance for any program, project, or 
        activity under this section if any person with 
        responsibilities for the operation of the program, 
        project, or activity discriminates with respect to the 
        program, project, or activity because of race, 
        religion, color, national origin, sex, or disability.
            ``(2) Enforcement.--The powers, remedies, and 
        procedures set forth in title VI of the Civil Rights 
        Act of 1964 (42 U.S.C. 2000d et seq.) may be used by 
        the Secretary to enforce paragraph (1).
    ``(m) Grant Calculation.--
            ``(1) State grant.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amounts made 
                available under section 18 for each fiscal 
                year, the Secretary shall provide a grant to 
                each State participating in the program 
                established under this section an amount that 
                is equal to the sum of--
                            ``(i) the greater of, as determined 
                        by the Secretary--
                                    ``(I) the total dollar 
                                value of all benefits issued 
                                under the food stamp program 
                                established under this Act by 
                                the State during fiscal year 
                                1994; or
                                    ``(II) the average per 
                                fiscal year of the total dollar 
                                value of all benefits issued 
                                under the food stamp program by 
                                the State during each of fiscal 
                                years 1992 through 1994; and
                            ``(ii) the greater of, as 
                        determined by the Secretary--
                                    ``(I) the total amount 
                                received by the State for 
                                administrative costs under 
                                section 16(a) (not including 
                                any adjustment under section 
                                16(c)) for fiscal year 1994; or
                                    ``(II) the average per 
                                fiscal year of the total amount 
                                received by the State for 
                                administrative costs under 
                                section 16(a) (not including 
                                any adjustment under section 
                                16(c)) for each of fiscal years 
                                1992 through 1994.
                    ``(B) Insufficient funds.--If the Secretary 
                finds that the total amount of grants to which 
                States would otherwise be entitled for a fiscal 
                year under subparagraph (A) will exceed the 
                amount of funds that will be made available to 
                provide the grants for the fiscal year, the 
                Secretary shall reduce the grants made to 
                States under this subsection, on a pro rata 
                basis, to the extent necessary.
            ``(2) Reduction.--The Secretary shall reduce the 
        grant of a State by the amount a State has agreed to 
        contribute under subsection (c)(1)(C).''.
    (b) Employment and Training Funding.--Section 16(h) of the 
Act (7 U.S.C. 2025(a)), as amended by section 1027(d)(2), is 
further amended by adding at the end the following:
            ``(6) Block grant states.--Each State electing to 
        operate a program under section 25 shall--
                    ``(A) receive the greater of--
                            ``(i) the total dollar value of the 
                        funds received under paragraph (1) by 
                        the State during fiscal year 1994; or
                            ``(ii) the average per fiscal year 
                        of the total dollar value of all funds 
                        received under paragraph (1) by the 
                        State during each of fiscal years 1992 
                        through 1994; and
                    ``(B) be eligible to receive funds under 
                paragraph (2), within the limitations in 
                section 6(d)(4)(K).''.
    (c) Research On Optional State Food Assistance Block 
Grant.--Section 17 of the Act (7 U.S.C. 2026), as amended by 
section 1064(c)(2), is further amended by adding at the end the 
following:
    ``(l) Research On Optional State Food Assistance Block 
Grant.--The Secretary may conduct research on the effects and 
costs of a State program carried out under section 25.''.

SEC. 1066. AMERICAN SAMOA.

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

``SEC. 26. TERRITORY OF AMERICAN SAMOA.

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

SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

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

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

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

              Subtitle B--Commodity Distribution Programs

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

SEC. 1072. EMERGENCY FOOD ASSISTANCE PROGRAM.

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

``SEC. 201A. DEFINITIONS.

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

``SEC. 202A. STATE PLAN.

    ``(a) In General.--To receive commodities under this Act, a 
State shall submit a plan of operation and administration every 
4 years to the Secretary for approval. The plan may be amended 
at any time, with the approval of the Secretary.
    ``(b) Requirements.--Each plan shall--
            ``(1) designate the State agency responsible for 
        distributing the commodities received under this Act;
            ``(2) set forth a plan of operation and 
        administration to expeditiously distribute commodities 
        under this Act;
            ``(3) set forth the standards of eligibility for 
        recipient agencies; and
            ``(4) set forth the standards of eligibility for 
        individual or household recipients of commodities, 
        which shall require--
                    ``(A) individuals or households to be 
                comprised of needy persons; and
                    ``(B) individual or household members to be 
                residing in the geographic location served by 
                the distributing agency at the time of applying 
                for assistance.
    ``(c) State Advisory Board.--The Secretary shall encourage 
each State receiving commodities under this Act to establish a 
State advisory board consisting of representatives of all 
interested entities, both public and private, in the 
distribution of commodities received under this Act in the 
State.''.
    (c) Authorization of Appropriations for Administrative 
Funds.--Section 204(a)(1) of the Act (7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence--
                    (A) by striking ``1991 through 1995'' and 
                inserting ``1996 through 2002''; and
                    (B) by striking ``for State and local'' and 
                all that follows through ``under this title'' 
                and inserting ``to pay for the direct and 
                indirect administrative costs of the State 
                related to the processing, transporting, and 
                distributing to eligible recipient agencies of 
                commodities provided by the Secretary under 
                this Act and commodities secured from other 
                sources''; and
            (2) by striking the fourth sentence.
    (d) Delivery of Commodities.--Section 214 of the Act (7 
U.S.C. 612c note) is amended--
            (1) by striking subsections (a) through (e) and 
        (j);
            (2) by redesignating subsections (f) through (i) as 
        subsections (a) through (d), respectively;
            (3) in subsection (b), as redesignated by paragraph 
        (2)--
                    (A) in the first sentence, by striking 
                ``subsection (f) or subsection (j) if 
                applicable,'' and inserting ``subsection (a)''; 
                and
                    (B) in the second sentence, by striking 
                ``subsection (f)'' and inserting ``subsection 
                (a)'';
            (4) by striking subsection (c), as redesignated by 
        paragraph (2), and inserting the following:
    ``(c) Administration.--
            ``(1) In general.--Commodities made available for 
        each fiscal year under this section shall be delivered 
        at reasonable intervals to States based on the grants 
        calculated under subsection (a), or reallocated under 
        subsection (b), before December 31 of the following 
        fiscal year.
            ``(2) Entitlement.--Each State shall be entitled to 
        receive the value of additional commodities determined 
        under subsection (a).''; and
            (5) in subsection (d), as redesignated by paragraph 
        (2), by striking ``or reduce'' and all that follows 
        through ``each fiscal year''.
    (e) Technical Amendments.--The Act (7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence of section 203B(a), by 
        striking ``203 and 203A of this Act'' and inserting 
        ``203A'';
            (2) in section 204(a), by striking ``title'' each 
        place it appears and inserting ``Act'';
            (3) in the first sentence of section 210(e), by 
        striking ``(except as otherwise provided for in section 
        214(j))''; and
            (4) by striking section 212.
    (f) Report on EFAP.--Section 1571 of the Food Security Act 
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
    (g) Availability of Commodities Under the Food Stamp 
Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
as amended by section 1067, is further amended by adding at the 
end the following:
``SEC. 28. AVAILABILITY OF 
COMMODITIES FOR THE EMERGENCY FOOD 
ASSISTANCE PROGRAM.
    ``(a) Purchase of Commodities.--From amounts appropriated 
under this Act, for each of fiscal years 1997 through 2002, the 
Secretary shall purchase $300,000,000 of a variety of 
nutritious and useful commodities of the types that the 
Secretary has the authority to acquire through the Commodity 
Credit Corporation or under section 32 of the Act entitled `An 
Act to amend the Agricultural Adjustment Act, and for other 
purposes', approved August 24, 1935 (7 U.S.C. 612c), and 
distribute the commodities to States for distribution in 
accordance with section 214 of the Emergency Food Assistance 
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note).
    ``(b) Basis for Commodity Purchases.--In purchasing 
commodities under subsection (a), the Secretary shall, to the 
extent practicable and appropriate, make purchases based on--
            ``(1) agricultural market conditions;
            ``(2) preferences and needs of States and 
        distributing agencies; and
            ``(3) preferences of recipients.''.
    (h) Effective Date.--The amendments made by subsection (d) 
shall become effective on October 1, 1996.

SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.

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

SEC. 1074. HUNGER PREVENTION PROGRAMS.

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

SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

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

SEC. 1076. NATIONAL COMMODITY PROCESSING.

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

                        TITLE XI--MISCELLANEOUS

                                    SEC. 1101. EXPENDITURE OF FEDERAL 
                                    FUNDS IN ACCORDANCE WITH LAWS AND 
                                    PROCEDURES APPLICABLE TO 
                                    EXPENDITURE OF STATE FUNDS.
    (a) In General.--Notwithstanding any other provision of 
law, any funds received by a State under the provisions of law 
specified in subsection (b) shall be expended only in 
accordance with the laws and procedures applicable to 
expenditures of the State's own revenues, including 
appropriation by the State legislature, consistent with the 
terms and conditions required under such provisions of law.
    (b) Provisions of Law.--The provisions of law specified in 
this subsection are the following:
            (1) Part A of title IV of the Social Security Act 
        (relating to block grants for temporary assistance for 
        needy families).
            (2) Section 25 of the Food Stamp Act of 1977 
        (relating to the optional State food assistance block 
        grant).
            (3) The Child Care and Development Block Grant Act 
        of 1990 (relating to block grants for child care).
                                    SEC. 1102. ELIMINATION OF HOUSING 
                                    ASSISTANCE WITH RESPECT TO FUGITIVE 
                                    FELONS AND PROBATION AND PAROLE 
                                    VIOLATORS.
    (a) Eligibility for Assistance.--The United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 6(l)--
                    (A) in paragraph (5), by striking ``and'' 
                at the end;
                    (B) in paragraph (6), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by inserting immediately after 
                paragraph (6) the following new paragraph:
            ``(7) provide that it shall be cause for immediate 
        termination of the tenancy of a public housing tenant 
        if such tenant--
                    ``(A) is fleeing to avoid prosecution, or 
                custody or confinement after conviction, under 
                the laws of the place from which the individual 
                flees, for a crime, or attempt to commit a 
                crime, which is a felony under the laws of the 
                place from which the individual flees, or 
                which, in the case of the State of New Jersey, 
                is a high misdemeanor under the laws of such 
                State; or
            ``(2) is violating a condition of probation or 
        parole imposed under Federal or State law.''; and
            (2) in section 8(d)(1)(B)--
                    (A) in clause (iii), by striking ``and'' at 
                the end;
                    (B) in clause (iv), by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding after clause (iv) the 
                following new clause:
                            ``(v) it shall be cause for 
                        termination of the tenancy of a tenant 
                        if such tenant--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or 
                                confinement after conviction, 
                                under the laws of the place 
                                from which the individual 
                                flees, for a crime, or attempt 
                                to commit a crime, which is a 
                                felony under the laws of the 
                                place from which the individual 
                                flees, or which, in the case of 
                                the State of New Jersey, is a 
                                high misdemeanor under the laws 
                                of such State; or
                                    ``(II) is violating a 
                                condition of probation or 
                                parole imposed under Federal or 
                                State law;''.
    (b) Provision of Information to Law Enforcement Agencies.--
Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), as amended by section 601 of this Act, is 
amended by adding at the end the following:
``SEC. 28. EXCHANGE OF INFORMATION 
WITH LAW ENFORCEMENT AGENCIES.
    ``Notwithstanding any other provision of law, each public 
housing agency that enters into a contract for assistance under 
section 6 or 8 of this Act with the Secretary shall furnish any 
Federal, State, or local law enforcement officer, upon the 
request of the officer, with the current address, Social 
Security number, and photograph (if applicable) of any 
recipient of assistance under this Act, if the officer--
            ``(1) furnishes the public housing agency with the 
        name of the recipient; and
            ``(2) notifies the agency that--
                    ``(A) such recipient--
                            ``(i) is fleeing to avoid 
                        prosecution, or custody or confinement 
                        after conviction, under the laws of the 
                        place from which the individual flees, 
                        for a crime, or attempt to commit a 
                        crime, which is a felony under the laws 
                        of the place from which the individual 
                        flees, or which, in the case of the 
                        State of New Jersey, is a high 
                        misdemeanor under the laws of such 
                        State; or
                            ``(ii) is violating a condition of 
                        probation or parole imposed under 
                        Federal or State law; or
                            ``(iii) has information that is 
                        necessary for the officer to conduct 
                        the officer's official duties;
                    ``(B) the location or apprehension of the 
                recipient is within such officer's official 
                duties; and
                    ``(C) the request is made in the proper 
                exercise of the officer's official duties.''.

SEC. 1103. SENSE OF THE SENATE REGARDING ENTERPRISE ZONES.

    (a) Findings.--The Senate finds that:
            (1) Many of the Nation's urban centers are places 
        with high levels of poverty, high rates of welfare 
        dependency, high crime rates, poor schools, and 
        joblessness;
            (2) Federal tax incentives and regulatory reforms 
        can encourage economic growth, job creation and small 
        business formation in many urban centers;
            (3) Encouraging private sector investment in 
        America's economically distressed urban and rural areas 
        is essential to breaking the cycle of poverty and the 
        related ills of crime, drug abuse, illiteracy, welfare 
        dependency, and unemployment;
            (4) The empowerment zones enacted in 1993 should be 
        enhanced by providing incentives to increase 
        entrepreneurial growth, capital formation, job 
        creation, educational opportunities, and home ownership 
        in the designated communities and zones.
    (b) Sense of the Senate.--Therefore, it is the Sense of the 
Senate that the Congress should adopt enterprise zone 
legislation in the One Hundred Fourth Congress, and that such 
enterprise zone legislation provide the following incentives 
and provisions:
            (1) Federal tax incentives that expand access to 
        capital, increase the formation and expansion of small 
        businesses, and promote commercial revitalization;
            (2) Regulatory reforms that allow localities to 
        petition Federal agencies, subject to the relevant 
        agencies' approval, for waivers or modifications of 
        regulations to improve job creation, small business 
        formation and expansion, community development, or 
        economic revitalization objectives of the enterprise 
        zones;
            (3) Home ownership incentives and grants to 
        encourage resident management of public housing and 
        home ownership of public housing;
            (4) School reform pilot projects in certain 
        designated enterprise zones to provide low-income 
        parents with new and expanded educational options for 
        their children's elementary and secondary schooling.
                                    SEC. 1104. SENSE OF THE SENATE 
                                    REGARDING THE INABILITY OF THE NON-
                                    CUSTODIAL PARENT TO PAY CHILD 
                                    SUPPORT.
    It is the sense of the Senate that--
    (a) States should diligently continue their efforts to 
enforce child support payments by the non-custodial parent to 
the custodial parent, regardless of the employment status or 
location of the non-custodial parent; and
    (b) States are encouraged to pursue pilot programs in which 
the parents of a non-adult, non-custodial parent who refuses to 
or is unable to pay child support must--
            (1) pay or contribute to the child support owed by 
        the non-custodial parent; or
            (2) otherwise fulfill all financial obligations and 
        meet all conditions imposed on the non-custodial 
        parent, such as participation in a work program or 
        other related activity.

SEC. 1105. FOOD STAMP ELIGIBILITY.

    Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(f)) is amended by striking the third sentence and 
inserting the following:
    ``The State agency shall, at its option, consider either 
all income and financial resources of the individual rendered 
ineligible to participate in the food stamp program under this 
subsection, or such income, less a pro rata share, and the 
financial resources of the ineligible individual, to determine 
the eligibility and the value of the allotment of the household 
of which such individual is a member.''.
                                    SEC. 1106. ESTABLISHING NATIONAL 
                                    GOALS TO PREVENT TEENAGE 
                                    PREGNANCIES.
    (a) In General.--Not later than January 1, 1997, the 
Secretary of Health and Human Services shall establish and 
implement a strategy for--
            (1) preventing out-of-wedlock teenage pregnancies, 
        and
            (2) assuring that at least 25 percent of the 
        communities in the United States have teenage pregnancy 
        prevention programs in place.
    (b) Report.--Not later than June 30, 1998, and annually 
thereafter, the Secretary shall report to the Congress with 
respect to the progress that has been made in meeting the goals 
described in paragraphs (1) and (2) of subsection (a).
                                    SEC. 1107. SENSE OF THE SENATE 
                                    REGARDING ENFORCEMENT OF STATUTORY 
                                    RAPE LAWS.
    It is the sense of the Senate that States and local 
jurisdictions should aggressively enforce statutory rape laws.
                                    SEC. 1108. SANCTIONING FOR TESTING 
                                    POSITIVE FOR CONTROLLED SUBSTANCES.
    Notwithstanding any other provision of law, States shall 
not be prohibited by the Federal Government from sanctioning 
welfare recipients who test positive for use of controlled 
substances.

SEC. 1109. ABSTINENCE EDUCATION.

    (a) Increases in Funding.--Section 501(a) of the Social 
Security Act (42 U.S.C. 701(a)) is amended in the matter 
preceding paragraph (1) by striking ``Fiscal year 1990 and each 
fiscal year thereafter'' and inserting ``Fiscal years 1990 
through 1995 and $761,000,000 for fiscal year 1996 and each 
fiscal year thereafter''.
    (b) Abstinence Education.--Section 501(a)(1) of such Act 
(42 U.S.C. 701(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end;
            (2) in subparagraph (D), by adding ``and'' at the 
        end; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(E) to provide abstinence education, and 
                at the option of the State, where appropriate, 
                mentoring, counseling, and adult supervision to 
                promote abstinence from sexual activity, with a 
                focus on those groups which are most likely to 
                bear children out-of-wedlock.''.
    (c) Abstinence Education Defined.--Section 501(b) of such 
Act (42 U.S.C. 701(b)) is amended by adding at the end the 
following new paragraph:
            ``(5) Abstinence education.--For purposes of this 
        subsection, the term `abstinence education' means an 
        educational or motivational program which--
                    ``(A) has as its exclusive purpose, 
                teaching the social, psychological, and health 
                gains to be realized by abstaining from sexual 
                activity;
                    ``(B) teaches abstinence from sexual 
                activity outside marriage as the expected 
                standard for all school age children;
                    ``(C) teaches that abstinence from sexual 
                activity is the only certain way to avoid out-
                of-wedlock pregnancy, sexually transmitted 
                diseases, and other associated health problems;
                    ``(D) teaches that a mutually faithful 
                monogamous relationship in context of marriage 
                is the expected standard of human sexual 
                activity;
                    ``(E) teaches that sexual activity outside 
                of the context of marriage is likely to have 
                harmful psychological and physical effects;
                    ``(F) teaches that bearing children out-of-
                wedlock is likely to have harmful consequences 
                for the child, the child's parents, and 
                society;
                    ``(G) teaches young people how to reject 
                sexual advances and how alcohol and drug use 
                increases vulnerability to sexual advances; and
                    ``(H) teaches the importance of attaining 
                self-sufficiency before engaging in sexual 
                activity.''.
    (d) Set-Aside.--
            (1) In general.--Section 502(c) of such Act (42 
        U.S.C. 702(c)) is amended in the matter preceding 
        paragraph (1) by striking ``From'' and inserting 
        ``Except as provided in subsection (e), from''.
            (2) Set-aside.--Section 502 of such Act (42 U.S.C. 
        702) is amended by adding at the end the following new 
        subsection:
    ``(e) Of the amounts appropriated under section 501(a) for 
any fiscal year, the Secretary shall set aside $75,000,000 for 
abstinence education in accordance with section 
501(a)(1)(E).''.
                                    SEC. 1110. PROVISIONS TO ENCOURAGE 
                                    ELECTRONIC BENEFIT TRANSFER 
                                    SYSTEMS.
    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 
1693b) is amended--
            (1) by striking ``(d) In the event'' and inserting 
        ``(d) Applicability to Service Providers Other Than 
        Certain Financial Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) State and local government electronic benefit 
        transfer programs.--
                    ``(A) Exemption generally.--The 
                disclosures, protections, responsibilities, and 
                remedies established under this title, and any 
                regulation prescribed or order issued by the 
                Board in accordance with this title, shall not 
                apply to any electronic benefit transfer 
                program established under State or local law or 
                administered by a State or local government.
                    ``(B) Exception for direct deposit into 
                recipient's account.--Subparagraph (A) shall 
                not apply with respect to any electronic funds 
                transfer under an electronic benefit transfer 
                program for deposits directly into a consumer 
                account held by the recipient of the benefit.
                    ``(C) Rule of construction.--No provision 
                of this paragraph may be construed as--
                            ``(i) affecting or altering the 
                        protections otherwise applicable with 
                        respect to benefits established by 
                        Federal, State, or local law; or
                            ``(ii) otherwise superseding the 
                        application of any State or local law.
                    ``(D) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the 
                term `electronic benefit transfer program'--
                            ``(i) means a program under which a 
                        government agency distributes needs-
                        tested benefits by establishing 
                        accounts to be accessed by recipients 
                        electronically, such as through 
                        automated teller machines, or point-of-
                        sale terminals; and
                            ``(ii) does not include employment-
                        related payments, including salaries 
                        and pension, retirement, or 
                        unemployment benefits established by 
                        Federal, State, or local 
                        governments.''.
                                    SEC. 1111. REDUCTION IN BLOCK 
                                    GRANTS TO STATES FOR SOCIAL 
                                    SERVICES.
    Section 2003(c) of the Social Security Act (42 U.S.C. 
1397b(c)) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (4); and
            (2) by striking paragraph (5) and inserting the 
        following:
            ``(5) $2,800,000,000 for each of the fiscal years 
        1990 through 1996 and for each fiscal year after fiscal 
        year 2002; and
            ``(6) $2,520,000,000 for each of the fiscal years 
        1997 through 2002.''.

                                   Newt Gingrich,
                           Speaker of the House of Representatives.
                                   Dirk Kempthorne,
                        Acting President of the Senate pro tempore.
    [Endorsement on back of bill:]
    I certify that this Act originated in the House of 
Representatives.
                                             Robin H. Carle, Clerk.

                                
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