[Congressional Record Volume 141, Number 132 (Tuesday, August 8, 1995)]
[Senate]
[Pages S11894-S11935]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page S 11894]]


                          AMENDMENTS SUBMITTED

                                 ______


                THE PERSONAL RESPONSIBILITY ACT OF 1995

                                 ______


                       DASCHLE AMENDMENT NO. 2282

  Mr. DASCHLE proposed an amendment to amendment No. 2282 proposed by 
Mr. Dole to the bill (H.R. 4) to restore the American family, reduce 
illegitimacy, control welfare spending, and reduce welfare dependence; 
as follows:

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Amendment of the Social Security Act.

                TITLE I--TEMPORARY EMPLOYMENT ASSISTANCE

Sec. 101. State plan.

              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

Sec. 201. Work first employment block grant.
Sec. 202. Consolidation and streamlining of services.
Sec. 203. Job creation.

                       TITLE III--SUPPORTING WORK

Sec. 301. Extension of transitional medicaid benefits.
Sec. 302. Consolidated child care development block grant.

       TITLE IV--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

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

            TITLE V--INTERSTATE CHILD SUPPORT RESPONSIBILITY

Sec. 500. Short title.

    Subtitle A--Improvements to the Child Support Collection System

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

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

              Part II--Program Administration and Funding

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

                   Part III--Locate and Case Tracking

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

           Part IV--Streamlining and Uniformity of Procedures

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

                    Part V--Paternity Establishment

Sec. 541. State laws concerning paternity establishment.
Sec. 542. Outreach for voluntary paternity establishment.
Sec. 543. Cooperation requirement and good cause exception.

       Part VI--Establishment and Modification of Support Orders

Sec. 551. National Child Support Guidelines Commission.
Sec. 552. Simplified process for review and adjustment of child support 
              orders.

                Part VII--Enforcement of Support Orders

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

                       Part VIII--Medical Support

Sec. 581. Technical correction to ERISA definition of medical child 
              support order.

           Part IX--Visitation and Support Assurance Projects

Sec. 591. Grants to States for access and visitation programs.
Sec. 592. Child support assurance demonstration projects.

                    Subtitle B--Effect of Enactment

Sec. 595. Effective dates.
Sec. 596. Severability.

             TITLE VI--SUPPLEMENTAL SECURITY INCOME REFORM

                  Subtitle A--Eligibility Restrictions

Sec. 601. Drug addicts and alcoholics under the supplemental security 
              income program.

               Subtitle B--Benefits for Disabled Children

Sec. 611. Definition and eligibility rules.
Sec. 612. Continuing disability reviews.
Sec. 613. Additional accountability requirements.

         Subtitle C--Study of Disability Determination Process

Sec. 621. Annual report on the supplemental security income program.
Sec. 622. Improvements to disability evaluation.
Sec. 623. Study of disability determination process.
Sec. 624. Study by general accounting office.

      Subtitle D--National Commission on the Future of Disability

Sec. 631. Establishment.
Sec. 632. Duties of the commission.
Sec. 633. Membership.
Sec. 634. Staff and support services.
Sec. 635. Powers of commission.
Sec. 636. Reports.
Sec. 637. Termination.

               TITLE VII--PROVISIONS RELATING TO SPONSORS

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

          TITLE VIII--FOOD STAMP PROGRAM INTEGRITY AND REFORM.

Sec. 801. References to the Food Stamp Act of 1977.
Sec. 802. Certification period.
Sec. 803. Expanded definition of coupon.
Sec. 804. Treatment of minors.
Sec. 805. Adjustment to thrifty food plan.
Sec. 806. Earnings of certain high school students counted as income.
Sec. 807. Energy assistance counted as income.
Sec. 808. Exclusion of certain JTPA income.
Sec. 809. 2-year freeze of standard deduction.
Sec. 810. Elimination of household entitlement to switch between actual 
              expenses and allowances during certification period.
Sec. 811. Exclusion of life insurance proceeds.
Sec. 812. Vendor payments for transitional housing counted as income.
Sec. 813. Doubled penalties for violating food stamp program 
              requirements.
Sec. 814. Strengthened work requirements.
Sec. 815. Work requirement for able-bodied recipients.
Sec. 816. Disqualification for participating in 2 or more States.
Sec. 817. Disqualification relating to child support arrears.
Sec. 818. Facilitate implementation of a national electronic benefit 
              transfer delivery system.
Sec. 819. Limiting adjustment of minimum benefit.
Sec. 820. Benefits on recertification.
Sec. 821. State authorization to set requirements appropriate for 
              households.
Sec. 822. Coordination of employment and training programs.
Sec. 823. Simplification of application procedures and standardization 
              of benefits.
Sec. 824. Authority to establish authorization periods.
Sec. 825. Specific period for prohibiting participation of stores based 
              on lack of business integrity.
Sec. 826. Information for verifying eligibility for authorization.
Sec. 827. Waiting period for stores that initially fail to meet 
              authorization criteria.
Sec. 828. Mandatory claims collection methods.
Sec. 829. State authorization to assist law enforcement officers in 
              locating fugitive felons.

[[Page S 11895]]

Sec. 830. Expedited service.
Sec. 831. Bases for suspensions and disqualifications.
Sec. 832. Authority to suspend stores violating program requirements 
              pending administrative and judicial review.
Sec. 833. Disqualification of retailers who are disqualified under the 
              WIC program.
Sec. 834. Permanent debarment of retailers who intentionally submit 
              falsified applications.
Sec. 835. Expanded civil and criminal forfeiture for violations.
Sec. 836. Extending claims retention rates.
Sec. 837. Nutrition assistance for Puerto Rico.
Sec. 838. Expanded authority for sharing information provided by 
              retailers.
Sec. 839. Child and adult care food program.
Sec. 840. Resumption of discretionary funding for nutrition education 
              and training program.

           TITLE IX--EFFECTIVE DATE; MISCELLANEOUS PROVISIONS

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

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

     SEC. 101. STATE PLAN.

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

               ``PART A--TEMPORARY EMPLOYMENT ASSISTANCE

     ``SEC. 400. APPROPRIATION.

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

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

     ``SEC. 401. ELEMENTS OF STATE PLANS.

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

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

       ``(a) In General.--The State plan shall provide that any 
     family--
       ``(1) with 1 or more children (or any expectant family, at 
     the option of the State), defined as needy by the State; and
       ``(2) which fulfills the conditions set forth in subsection 
     (b),
     shall be eligible for cash assistance under the plan, except 
     as otherwise provided under this part.
       ``(b) Parent Empowerment Contract.--The State plan shall 
     provide that not later than 10 days after the approval of the 
     application for temporary employment assistance, a parent 
     qualifying for assistance shall execute a parent empowerment 
     contract as described in section 403. If a child otherwise 
     eligible for assistance under this part is residing with a 
     relative other than a parent, the State plan may require the 
     relative to execute such an empowerment contract as a 
     condition of the family receiving such assistance.
       ``(c) Limitations on Eligibility.--
       ``(1) Length of time.--
       ``(A) In general.--Except as provided in subparagraphs (B), 
     (C), (D), and (E), the State plan shall provide that the 
     family of an individual who, after attaining age 18 years (or 
     age 19 years, at the option of the State), has received 
     assistance under the plan for 60 months, shall no longer be 
     eligible for cash assistance under the plan.
       ``(B) Hardship exception.--With respect to any family, the 
     State plan shall not include in the determination of the 60-
     month period under subparagraph (A) any month in which--
       ``(i) at the option of the State, the family includes an 
     individual working 20 hours per week (or more, at the option 
     of the State);
       ``(ii) the family resides in an area with an unemployment 
     rate exceeding 7.5 percent; or
       ``(iii) the family is experiencing other special hardship 
     circumstances which make it appropriate for the State to 
     provide an exemption for such month, except that the total 
     number of exemptions under this clause for any month shall 
     not exceed 15 percent of the number of families to which the 
     State is providing assistance under the plan.
       ``(C) Exception for teen parents.--With respect to any 
     family, the State plan shall not include in the determination 
     of the 60-month period under subparagraph (A) any month in 
     which the parent--
       ``(i) is under age 18 (or age 19, at the option of the 
     State); and
       ``(ii) is making satisfactory progress while attending high 
     school or an alternative technical preparation school.
       ``(D) Exception for individuals exempt from work 
     requirements.--With respect to any family, the State plan 
     shall not include in the determination of the 60-month period 
     under subparagraph (A) any month in which 1 or each of the 
     parents--
       ``(i) is seriously ill, incapacitated, or of advanced age;
       ``(ii)(I) except for a child described in subclause (II), 
     is responsible for a child under age 1 year (or age 6 months, 
     at the option of the State), or
       ``(II) in the case of a 2nd or subsequent child born during 
     such period, is responsible for a child under age 3 months;
       ``(iii) is pregnant in the 3rd trimester; or
       ``(iv) is caring for a family member who is ill or 
     incapacitated.
       ``(E) Exception for child-only cases.--With respect to any 
     child who has not attained age 18 (or age 19, at the option 
     of the State) and who is eligible for assistance under this 
     part, but not as a member of a family otherwise eligible for 
     assistance under this part (determined without regard to this 
     paragraph), the State plan shall not include in the 
     determination of the 60-month period under subparagraph (A) 
     any month in which such child has not attained such age.
       ``(F) Other program eligibility.--The State plan shall 
     provide that if a family is no longer eligible for cash 
     assistance under the plan solely due to the imposition of the 
     60-month period under subparagraph (A)--
       ``(i) for purposes of determining eligibility for any other 
     Federal or federally assisted program based on need, such 
     family shall continue to be considered eligible for such cash 
     assistance;
       ``(ii) for purposes of determining the amount of assistance 
     under any other Federal or federally assisted program based 
     on need, such family shall continue to be considered 
     receiving such cash assistance; and
       ``(iii) the State shall, after having assessed the needs of 
     the child or children of the family, provide for such needs 
     with a voucher for such family--

       ``(I) determined on the same basis as the State would 
     provide assistance under the State plan to such a family with 
     1 less individual,
       ``(II) designed appropriately to pay third parties for 
     shelter, goods, and services received by the child or 
     children, and
       ``(III) payable directly to such third parties.

       ``(2) Treatment of interstate migrants.--The State plan may 
     apply to a category of families the rules for such category 
     under a plan of another State approved under this part, if a 
     family in such category has moved to the State from the other 
     State and has resided in the State for less than 12 months.
       ``(3) Individuals on old-age assistance or ssi ineligible 
     for temporary employment assistance.--The State plan shall 
     provide that no assistance shall be furnished any individual 
     under the plan with respect to any period with respect to 
     which such individual is receiving old-age assistance under 
     the State plan approved under section 102 of title I or 
     supplemental security income under title XVI, and such 
     individual's assistance or income shall be disregarded in 
     determining the eligibility of the family of such individual 
     for temporary employment assistance.
       ``(4) Children for whom federal, state, or local foster 
     care maintenance or adoption assistance payments are made.--A 
     child with respect to whom foster care maintenance payments 
     or adoption assistance payments are made under part E or 
     under State or local law shall not, for the period for which 
     such payments are made, be regarded as a needy child under 
     this part, and such child's income and resources shall be 
     disregarded in determining the eligibility of the family of 
     such child for temporary employment assistance.
       ``(5) Denial of assistance for 10 years to a person found 
     to have fraudulently misrepresented residence in order to 
     obtain assistance in 2 or more states.--The State plan shall 
     provide that no assistance will be furnished any individual 
     under the plan during the 10-year period that begins on the 
     date the individual is convicted in Federal or State court of 
     having made, a fraudulent statement or representation with 
     respect to the place of residence of the individual in order 
     to receive benefits or services simultaneously from 2 or more 
     States under programs that are funded under this part, title 
     XIX, or the Food Stamp Act of 1977, or benefits in 2 or more 
     States under the supplemental security income program under 
     title XVI.
       ``(6) Denial of assistance for fugitive felons and 
     probation and parole violators.--
       ``(A) In general.--The State plan shall provide that no 
     assistance will be furnished any individual under the plan 
     for any period if during such period the State agency has 
     knowledge that such individual is--

[[Page S 11896]]

       ``(i) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or an attempt 
     to commit a crime, which is a felony under the laws of the 
     place from which the individual flees, or which, in the case 
     of the State of New Jersey, is a high misdemeanor under the 
     laws of such State; or
       ``(ii) violating a condition of probation or parole imposed 
     under Federal or State law.
       ``(B) Exchange of information with law enforcement 
     agencies.--Notwithstanding any other provision of law, the 
     State plan shall provide that the State shall furnish any 
     Federal, State, or local law enforcement officer, upon the 
     request of the officer, with the current address of any 
     recipient of assistance under the plan, if the officer 
     furnishes the agency with the name of the recipient and 
     notifies the agency that--
       ``(i) such recipient--

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

       ``(ii) the location or apprehension of the recipient is 
     within such officer's official duties.
       ``(d) Determination of Eligibility.--
       ``(1) Determination of need.--The State plan shall provide 
     that the State agency take into consideration any income and 
     resources of any individual the State determines should be 
     considered in determining the need of the child or relative 
     claiming temporary employment assistance.
       ``(2) Resource and income determination.--In determining 
     the total resources and income of the family of any needy 
     child, the State plan shall provide the following:
       ``(A) Resources.--The State's resource limit, including a 
     description of the policy determined by the State regarding 
     any exclusion allowed for vehicles owned by family members, 
     resources set aside for future needs of a child, individual 
     development accounts, or other policies established by the 
     State to encourage savings.
       ``(B) Family income.--The extent to which earned or 
     unearned income is disregarded in determining eligibility 
     for, and amount of, assistance.
       ``(C) Child support.--The State's policy, if any, for 
     determining the extent to which child support received in 
     excess of $50 per month on behalf of a member of the family 
     is disregarded in determining eligibility for, and the amount 
     of, assistance.
       ``(D) Child's earnings.--The treatment of earnings of a 
     child living in the home.
       ``(E) Earned income tax credit.--The State agency shall 
     disregard any refund of Federal income taxes made to a family 
     receiving temporary employment assistance by reason of 
     section 32 of the Internal Revenue Code of 1986 (relating to 
     earned income tax credit) and any payment made to such a 
     family by an employer under section 3507 of such Code 
     (relating to advance payment of earned income credit).
       ``(3) Verification System.--The State plan shall provide 
     that information is requested and exchanged for purposes of 
     income and eligibility verification in accordance with a 
     State system which meets the requirements of section 1137.

     ``SEC. 403. PARENT EMPOWERMENT CONTRACT.

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

       ``(I) the 1st act of noncompliance, 1 month,
       ``(II) the 2nd act of noncompliance, 3 months, or
       ``(III) the 3rd or subsequent act of noncompliance, 6 
     months; or

       ``(ii) the period ending with the cessation of such act of 
     noncompliance.
       ``(D) Denial of temporary employment assistance to adults 
     refusing to accept a bona fide offer of employment.--The 
     State plan shall provide that if an unemployed individual who 
     has attained 18 years of age refuses to accept a bona fide 
     offer of employment without good cause, such act of 
     noncompliance shall be considered a 3rd or subsequent act of 
     noncompliance.
       ``(2) State flexibility.--The State plan may provide for 
     different penalties than those specified in paragraph (1).

     ``SEC. 404. PAYMENT OF ASSISTANCE.

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

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

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

[[Page S 11897]]
     child requiring such care, to the extent that such care is determined 
     by the State agency to be necessary for an individual in the 
     family to participate in job search activities, to work, or 
     to participate in the Work First program.

     ``SEC. 406. OTHER PROGRAMS.

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

     SEC. 407. ADMINISTRATIVE REQUIREMENTS FOR STATE PLAN.

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

                 ``Subpart 2--Administrative Provisions

     ``SEC. 411. APPROVAL OF PLAN.

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

     ``SEC. 412. COMPLIANCE.

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

     ``SEC. 413. PAYMENTS TO STATES.

       ``(a) Computation of Amount.--Subject to section 412, from 
     the sums appropriated therefor, the Secretary of the Treasury 
     shall pay to each State which has an approved plan for 
     temporary employment assistance, for each quarter, beginning 
     with the quarter commencing October 1, 1996, an amount equal 
     to the Federal medical assistance percentage (as defined in 
     section 1905(b)) of the expenditures by the State under such 
     plan.
       ``(b) Method of Computation and Payment.--The method of 
     computing and paying such amounts shall be as follows:
       ``(1) The Secretary shall, prior to the beginning of each 
     quarter, estimate the amount to be paid to the State for such 
     quarter under the provisions of subsection (a), such estimate 
     to be based on--
       ``(A) a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter in accordance 
     with the provisions of such subsection and stating the amount 
     appropriated or made available by the State and its political 
     subdivisions for such expenditures in such quarter, and if 
     such amount is less than the State's proportionate share of 
     the total sum of such estimated expenditures, the source or 
     sources from which the difference is expected to be derived;
       ``(B) records showing the number of needy children in the 
     State; and
       ``(C) such other information as the Secretary may find 
     necessary.
       ``(2) The Secretary of Health and Human Services shall then 
     certify to the Secretary of the Treasury the amount so 
     estimated by the Secretary of Health and Human Services--
       ``(A) reduced or increased, as the case may be, by any sum 
     by which the Secretary of Health and Human Services finds 
     that the estimate for any prior quarter was greater or 

[[Page S 11898]]
     less than the amount which should have been paid to the State for such 
     quarter;
       ``(B) reduced by a sum equivalent to the pro rata share to 
     which the Federal Government is equitably entitled, as 
     determined by the Secretary of Health and Human Services, of 
     the net amount recovered during any prior quarter by the 
     State or any political subdivision thereof with respect to 
     temporary employment assistance furnished under the State 
     plan; and
       ``(C) reduced by such amount as is necessary to provide the 
     appropriate reimbursement to the Federal Government that the 
     State is required to make under section 457 out of that 
     portion of child support collections retained by the State 
     pursuant to such section,
     except that such increases or reductions shall not be made to 
     the extent that such sums have been applied to make the 
     amount certified for any prior quarter greater or less than 
     the amount estimated by the Secretary of Health and Human 
     Services for such prior quarter.
       ``(c) Method of Payment.--The Secretary of the Treasury 
     shall thereupon, through the Fiscal Service of the Department 
     of the Treasury and prior to audit or settlement by the 
     General Accounting Office, pay to the State, at the time or 
     times fixed by the Secretary of Health and Human Services, 
     the amount so certified.

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

       ``(a) Applicability; Time Period.--For purposes of 
     determining eligibility for and the amount of assistance 
     under a State plan approved under this part for an individual 
     who is an alien, the income and resources of any person who 
     (as a sponsor of such individual's entry into the United 
     States) executed an affidavit of support or similar agreement 
     with respect to such individual, and the income and resources 
     of the sponsor's spouse, shall be deemed to be the unearned 
     income and resources of such individual (in accordance with 
     subsections (b) and (c)) for a period ending with the date 
     (if any) on which such individual becomes a citizen of the 
     United States under chapter 2 of title III of the Immigration 
     and Nationality Act, except that this section is not 
     applicable if such individual is a needy child and such 
     sponsor (or such sponsor's spouse) is the parent of such 
     child.
       ``(b) Computation.--
       ``(1) Income.--The amount of income of a sponsor (and the 
     sponsor's spouse) which shall be deemed to be the unearned 
     income of an alien for any month shall be determined as 
     follows:
       ``(A) The total amount of earned and unearned income of 
     such sponsor and such sponsor's spouse (if such spouse is 
     living with the sponsor) shall be determined for such month.
       ``(B) The amount determined under subparagraph (A) shall be 
     reduced by an amount equal to the sum of--
       ``(i) the lesser of--

       ``(I) 20 percent of the total of any amounts received by 
     the sponsor and the sponsor's spouse in such month as wages 
     or salary or as net earnings from self-employment, plus the 
     full amount of any costs incurred by them in producing self-
     employment income in such month, or
       ``(II) $175;

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

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

       ``(a) Quality Assurance.--
       ``(1) In general.--Under the State plan, a quality 
     assurance system shall be developed based upon a 
     collaborative effort involving the Secretary, the State, the 
     political subdivisions of the State, and assistance 
     recipients, and shall include quantifiable program outcomes 
     related to self sufficiency in the categories of welfare-to-
     work, payment accuracy, and child support.
       ``(2) Modifications to system.--As deemed necessary, but 
     not more often than every 2 years, the Secretary, in 
     consultation with the State, the political subdivisions of 
     the State, and assistance recipients, shall make appropriate 
     changes in the design and administration of the quality 
     assurance system, including changes in benchmarks, measures, 
     and data collection or sampling procedures.
       ``(b) Data Collection and Reporting.--
       ``(1) In general.--The State plan shall provide for a 
     quarterly report to the Secretary regarding the data 
     described in paragraphs (2) and (3) and such additional data 
     needed for the quality assurance system. The data collection 
     and reporting system under this subsection shall promote 
     accountability, continuous improvement, and integrity in the 
     State plans for temporary employment assistance and Work 
     First.

[[Page S 11899]]

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

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

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

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

       ``(a) In General.--Upon receiving notice from a State 
     agency administering a plan approved under this part that a 
     named individual has been overpaid under the State plan 

[[Page S 11900]]
     approved under this part, the Secretary of the Treasury shall determine 
     whether any amounts as refunds of Federal taxes paid are 
     payable to such individual, regardless of whether such 
     individual filed a tax return as a married or unmarried 
     individual. If the Secretary of the Treasury finds that any 
     such amount is payable, the Secretary shall withhold from 
     such refunds an amount equal to the overpayment sought to be 
     collected by the State and pay such amount to the State 
     agency.
       ``(b) Regulations.--The Secretary of the Treasury shall 
     issue regulations, approved by the Secretary of Health and 
     Human Services, that provide--
       ``(1) that a State may only submit under subsection (a) 
     requests for collection of overpayments with respect to 
     individuals--
       ``(A) who are no longer receiving temporary employment 
     assistance under the State plan approved under this part,
       ``(B) with respect to whom the State has already taken 
     appropriate action under State law against the income or 
     resources of the individuals or families involved; and
       ``(C) to whom the State agency has given notice of its 
     intent to request withholding by the Secretary of the 
     Treasury from the income tax refunds of such individuals;
       ``(2) that the Secretary of the Treasury will give a timely 
     and appropriate notice to any other person filing a joint 
     return with the individual whose refund is subject to 
     withholding under subsection (a); and
       ``(3) the procedures that the State and the Secretary of 
     the Treasury will follow in carrying out this section which, 
     to the maximum extent feasible and consistent with the 
     specific provisions of this section, will be the same as 
     those issued pursuant to section 464(b) applicable to 
     collection of past-due child support.''.
       (b) Payments to Puerto Rico.--Section 1108(a)(1) (42 U.S.C. 
     1308(a)(1)) is amended--
       (1) in subparagraph (F), by striking ``or''; and
       (2) by striking subparagraph (G) and inserting the 
     following:
       ``(G) $82,000,000 with respect to each of fiscal years 1989 
     through 1995, or
       ``(H) $102,500,000 with respect to the fiscal year 1996 and 
     each fiscal year thereafter;''.
       (c) Conforming Amendments Relating To Collection of 
     Overpayments.--
       (1) Section 6402 of the Internal Revenue Code of 1986 
     (relating to authority to make credits or refunds), as 
     amended by section 561(a), is amended--
       (A) in subsection (a), by striking ``(c) and (d)'' and 
     inserting ``(c), (d), and (e)'';
       (B) by redesignating subsections (e) through (i) as 
     subsections (f) through (j), respectively; and
       (C) by inserting after subsection (d) the following:
       ``(g) Collection of Overpayments Under Title IV-A of the 
     Social Security Act.--The amount of any overpayment to be 
     refunded to the person making the overpayment shall be 
     reduced (after reductions pursuant to subsections (c) and 
     (d), but before a credit against future liability for an 
     internal revenue tax) in accordance with section 417 of the 
     Social Security Act (concerning recovery of overpayments to 
     individuals under State plans approved under part A of title 
     IV of such Act).''.
       (2) Section 552a(a)(8)(B)(iv)(III) of title 5, United 
     States Code, is amended by striking ``section 464 or 1137 of 
     the Social Security Act'' and inserting ``section 417, 464, 
     or 1137 of the Social Security Act.''
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall be effective with 
     respect to calendar quarters beginning on or after October 1, 
     1996.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the requirements imposed by the 
     amendment made by subsection (a), the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendment before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

     SEC. 201. WORK FIRST EMPLOYMENT BLOCK GRANT.

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

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

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

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

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

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

                    ``Subpart 2--Program Performance

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

       ``(a) Work Performance Rates.--
       ``(1) Requirement.--A State that operates a program under 
     this part shall achieve a work performance rate for the 
     following fiscal years of not less than the following 
     percentages:
       ``(A) 30 percent for fiscal year 1997.
       ``(B) 35 percent for fiscal year 1998.
       ``(C) 40 percent for fiscal year 1999.
       ``(D) 50 percent for fiscal year 2000 or thereafter.
       ``(2) Work performance rate defined.--
       ``(A) In general.--As used in this subsection, the term 
     `work performance rate' means, with respect to a State and a 
     fiscal year, an amount equal to--
       ``(i) the sum of the average monthly number of individuals 
     eligible for temporary employment assistance under the State 
     plan approved under part A who, during the fiscal year--

       ``(I) obtain employment in an unsubsidized job and cease to 
     receive such temporary employment assistance to the extent 
     allowed under subparagraph (B);
       ``(II) work 20 or more hours per week (or 30 hours, at the 
     option of the State) in an unsubsidized job while still 
     receiving such temporary employment assistance;
       ``(III) work 20 or more hours per week (or 30 hours, at the 
     option of the State) in a subsidized job through the Work 
     First program 

[[Page S 11901]]
     (other than through workfare or community service under section 493); 
     or
       ``(IV) are parents under the age of 18 years (or 19 years, 
     at the option of the State) in school and regularly attending 
     classes obtaining the basic skills needed for work; divided 
     by

       ``(ii) the average monthly number of families with parents 
     eligible for such temporary employment assistance who, during 
     the fiscal year, are not in groups described under section 
     482(b).
       ``(B) Special rules.--
       ``(i) Individuals in unsubsidized jobs.--For purposes of 
     subparagraph (A)(i)(I), an individual shall be considered to 
     be participating under a State plan approved under part A for 
     each of the 1st 12 months (without regard to fiscal year) 
     after an individual ceases to receive temporary employment 
     assistance under such plan as the result of employment in an 
     unsubsidized job and during which such individual does not 
     reapply for such assistance.
       ``(ii) Individuals in work first subsidized jobs.--For 
     purposes of subparagraph (A)(i)(III), individuals in workfare 
     or community service (as defined in section 493) may be 
     counted if such individuals reside in areas--

       ``(I) with an unemployment rate exceeding 7.5 percent; or
       ``(II) with other circumstances deemed sufficient by the 
     Secretary.

       ``(iii) Deemed compliance.--A State shall be deemed to have 
     met the requirement in paragraph (1) if its work performance 
     rate in a given fiscal year exceeds that of the prior fiscal 
     year by 10 percentage points.
       ``(3) Effect of failure to meet work performance rates.--If 
     a State fails to achieve the work performance rate required 
     by paragraph (1) for any fiscal year--
       ``(A) in the case of the 1st failure, the Secretary shall 
     make recommendations for changes in the State Work First 
     program to achieve future required work performance rates; 
     and
       ``(A) in the case of the 2nd or subsequent failure--
       ``(i) the Secretary shall reduce by 10 percentage points 
     (or less, at the discretion of the Secretary based on the 
     degree of failure) the rate of Federal payments for the 
     administrative expenses for the State plan approved under 
     part A for the subsequent fiscal year;
       ``(ii) the Secretary shall make further recommendations for 
     changes in the State Work First program to achieve future 
     required work performance rates which the State may elect to 
     follow; and
       ``(iii) the State shall demonstrate to the Secretary how 
     the State shall achieve the required work performance rate 
     for the subsequent fiscal year.
       ``(b) Performance-Based Bonuses.--
       ``(1) In general.--In addition to any other payment under 
     section 495, each State, beginning in fiscal year 1997, which 
     has achieved its work performance rate for the fiscal year 
     (as determined under subsection (a)) shall be entitled to 
     receive a bonus in the subsequent fiscal year for each 
     individual eligible for temporary employment assistance under 
     the State plan approved under part A who is described in 
     subsection (a)(2)(A)(i) in excess of the number of such 
     individuals necessary to meet such work performance rate, but 
     the aggregate of such bonuses for any fiscal year in the case 
     of any State may not exceed the limitation determined under 
     paragraph (3) with respect to the State.
       ``(2) Use of payments.--Bonus payments under this 
     subsection--
       ``(A) may be used to supplement, not supplant, State 
     funding of Work First or child care activities; and
       ``(B) shall be used in a manner which rewards job 
     retention.
       ``(3) Limitation.--
       ``(A) In general.--The limitation determined under this 
     paragraph with respect to a State for any fiscal year is the 
     amount that bears the same ratio to the amount specified in 
     subparagraph (B) for such fiscal year as the average monthly 
     number of adult recipients (as defined in section 495(a)(6)) 
     in the State in the preceding fiscal year bears to the 
     average monthly number of such recipients in all the States 
     for such preceding year.
       ``(B) Amount specified.--The amount specified in this 
     subparagraph is--
       ``(i) $100,000,000 for fiscal year 1997 rates payable in 
     fiscal year 1998;
       ``(ii) $200,000,000 for fiscal year 1998 rates payable in 
     fiscal year 1999;
       ``(iii) $300,000,000 for fiscal year 1999 rates payable in 
     fiscal year 2000;
       ``(iv) $400,000,000 for fiscal year 2000 rates payable in 
     fiscal year 2001; and
       ``(v) $500,000,000 for fiscal year 2001 rates payable in 
     fiscal year 2002.

                    ``Subpart 3--Program Components

     ``SEC. 486. PROGRAM COMPONENTS.

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

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

       ``(a) In General.--The State through the Work First program 
     may operate its own job placement assistance program or may 
     establish a job placement voucher program under subsection 
     (b).
       ``(b) Job Placement Voucher Program.--A job placement 
     voucher program established by a State under this subsection 
     shall include the following requirements:
       ``(1) List of organizations maintained.--The State shall 
     identify, maintain, and make available to a client a list of 
     State-approved job placement organizations that offer 
     services in the area where the client resides and a 
     description of the job placement and support services each 
     such organization provides. Such organizations may be 
     publicly or privately owned and operated.
       ``(2) Execution of contract.--A client shall, at the time 
     the client becomes eligible for temporary employment 
     assistance--
       ``(A) receive the list and description described in 
     paragraph (1);
       ``(B) agree, in exchange for job placement and support 
     services, to--
       ``(i) execute, within a period of time permitted by the 
     State, a contract with a State-approved job placement 
     organization which provides that the organization shall 
     attempt to find employment for the client; and
       ``(ii) comply with the terms of the contract; and
       ``(C) receive a job placement voucher (in an amount to be 
     determined by the State) for payment to a State-approved job 
     placement organization.
       ``(3) Use of voucher.--At the time a client executes a 
     contract with a State-approved job placement organization, 
     the client shall provide the organization with the job 
     placement voucher that the client received pursuant to 
     paragraph (2)(C).
       ``(4) Redemption.--A State-approved job placement 
     organization may redeem for payment from the State not more 
     than 25 percent of the value of a job placement voucher upon 
     the initial receipt of the voucher for payment of costs 
     incurred in finding and placing a client in an employment 
     position. The remaining value of such voucher shall not be 
     redeemed for payment from the State until the State-approved 
     job placement organization--
       ``(A) finds an employment position (as determined by the 
     State) for the client who provided the voucher; and
       ``(B) certifies to the State that the client remains 
     employed with the employer that the organization originally 
     placed the client with for the greater of--
       ``(i) 6 continuous months; or
       ``(ii) a period determined by the State.
       ``(5) Performance-based standards.--
       ``(A) In general.--The State shall establish performance-
     based standards to evaluate the success of the State job 
     placement voucher program operated under this subsection in 
     achieving employment for clients participating in such 
     voucher program. Such standards shall take into account the 
     economic conditions of the State in determining the rate of 
     success.
       ``(B) Annual evaluation.--The State shall, not less than 
     once a fiscal year, evaluate the job placement voucher 
     program operated under this subsection in accordance with the 
     performance-based standards established under subparagraph 
     (A).
       ``(C) Annual report.--The State shall submit a report 
     containing the results of an evaluation conducted under 
     subparagraph (B) to the Secretary and a description of the 
     performance-based standards used to conduct the evaluation in 
     such form and under such conditions as the Secretary shall 
     require. The Secretary shall review each report submitted 
     under this subparagraph and may require the State to revise 
     the performance-based standards if the Secretary determines 
     that the State is not achieving an adequate rate of success 
     for such State.

     ``SEC. 488. REVAMPED JOBS PROGRAM.

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

     ``SEC. 489. TEMPORARY SUBSIDIZED JOB CREATION.

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

     ``SEC. 490. FAMILY INVESTMENT PROGRAM.

       ``The State through the Work First program may establish a 
     program similar to the program known as the `Family 
     Investment Program' that has been operated by the State of 
     Iowa to move families off of welfare and into self-sufficient 
     employment.
     
[[Page S 11902]]


     ``SEC. 491. MICROENTERPRISE.

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

     ``SEC. 492. WORK SUPPLEMENTATION PROGRAM.

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

     ``SEC. 493. WORKFARE AND COMMUNITY SERVICE.

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

                          ``Subpart 4--Funding

     ``SEC. 495. FUNDING.

       ``(a) Funding for Work First.--
       ``(1) In general.--Each State that is operating a program 
     in accordance with this part shall be entitled to payments 
     under subsection (b) for any fiscal year in an amount equal 
     to the sum of the applicable percentages (specified in such 
     subsection) of its expenditures to carry out such program 
     (subject to limitations prescribed by or pursuant to this 
     part or this section on expenditures that may be included for 
     purposes of determining payments under subsection (b)), but 
     such payments for any fiscal year in the case of any State 
     may not exceed the limitation determined under paragraph (2) 
     with respect to the State.
       ``(2) Limitation.--The limitation determined under this 
     paragraph with respect to a State for any fiscal year is the 
     amount that bears the same ratio to the amount specified in 
     paragraph (3) for such fiscal year as the average monthly 
     number of adult recipients (as defined in paragraph (5)) in 
     the State in the preceding fiscal year bears to the average 
     monthly number of such recipients in all the States for such 
     preceding year.
       ``(3) Amount specified.--Subject to paragraph (4), the 
     amount specified in this paragraph is--
       ``(A) $1,700,000,000 for fiscal year 1997;
       ``(B) $1,900,000,000 for fiscal year 1998;
       ``(C) $2,200,000,000 for fiscal year 1999; and
       ``(D) $2,500,000,000 for fiscal years 2000, 2001, and 2002.
       ``(4) Indian tribal governments.--
       ``(A) Application.--
       ``(i) In general.--An Indian tribe or Alaska Native 
     organization may apply at any time to the Secretary (in such 
     manner as the Secretary prescribes) to conduct a Work First 
     program.
       ``(ii) Participation.--If a tribe or organization chooses 
     to apply and the application is approved, such tribe or 
     organization shall be entitled to a direct payment in the 
     amount determined in accordance with the provisions of 
     subparagraph (B) for each fiscal year beginning after such 
     approval.
       ``(iii) No participation.--If a tribe or organization 
     chooses not to apply, the amount that would otherwise be 
     available to such tribe or organization for the fiscal year 
     shall be payable to the State in which that tribe or 
     organization is located. Such amount shall be used by that 
     State to provide Work First program services to the 
     recipients living within that tribe or organization's 
     jurisdiction.
       ``(iv) No match required.--Indian tribes and Alaska Native 
     organizations shall not be required to submit a monetary 
     match to receive a payment under this paragraph.
       ``(B) Payment amount.--
       ``(i) In general.--The Secretary shall pay directly to each 
     Indian tribe or Alaska Native organization conducting a Work 
     First program for a fiscal year an amount which bears the 
     same ratio to 3 percent of the amount specified under 
     paragraph (3) for such fiscal year as the adult Indian or 
     Alaska Native population receiving temporary employment 
     assistance residing within the area to be served by the tribe 
     or organization bears to the total of such adults receiving 
     such assistance residing within all areas which any such 
     tribe or organization could serve.
       ``(ii) Adjustments.--The Secretary shall from time to time 
     review the components of the ratios established in clause (i) 
     to determine whether the individual payments under this 
     paragraph continue to reflect accurately the distribution of 
     population among the grantees, and shall make adjustments 
     necessary to maintain the correct distribution of funding.
       ``(C) Use in succeeding fiscal year.--A grantee under this 
     paragraph may use not to exceed 20 percent of the amount for 
     the fiscal year under subparagraph (B) to carry out the Work 
     First program in the succeeding fiscal year.
       ``(D) Voluntary termination.--An Indian tribe or Alaska 
     Native organization may voluntarily terminate its Work First 
     program. The amount under subparagraph (B) with respect to 
     such program for the fiscal year shall be payable to the 
     State in which that tribe or organization is located. Such 
     amount shall be used by that State to provide Work First 
     program services to the recipients living within that tribe 
     or organization's jurisdiction. If a voluntary termination of 
     a Work First program occurs under this subparagraph, the 
     tribe or organization shall not be eligible to submit an 
     application under this paragraph before the 6th year 
     following such termination.
       ``(E) Joint programs.--An Indian tribe or Alaska Native 
     organization may also apply to the Secretary jointly with 1 
     or more such tribes or organizations to administer a Work 
     First program as a consortium. The Secretary shall establish 
     such terms and conditions for such consortium as are 
     necessary.
       ``(5) Job creation.--Of the amount specified under 
     paragraph (3), 5 percent shall be set aside by the Secretary 
     for the program described in section 203(b) of the Work First 
     Act of 1995.
       ``(6) Definition.--For purposes of this subsection, the 
     term `adult recipient' in the case of any State means an 
     individual other than a needy child (unless such child is the 
     custodial parent of another needy child) whose needs are met 
     (in whole or in part) with payments of temporary employment 
     assistance.
       ``(b) State Allocations.--
       ``(1) In general.--The Secretary shall pay to each State 
     that is operating a program in accordance with part F, with 
     respect to expenditures by the State to carry out such 

[[Page S 11903]]
     program (including expenditures for child care under section 405(b), 
     but only with respect to a State to which section 1108 
     applies), an amount equal to--
       ``(A) with respect to so much of such expenditures in a 
     fiscal year as do not exceed the State's expenditures in the 
     fiscal year 1987 with respect to which payments were made to 
     such State from its allotment for such fiscal year pursuant 
     to part C of this title as then in effect, 90 percent; and
       ``(B) with respect to so much of such expenditures in a 
     fiscal year as exceed the amount described in subparagraph 
     (A)--
       ``(i) 50 percent, in the case of expenditures for 
     administrative costs (including costs of emergency 
     assistance) made by a State in operating such program for 
     such fiscal year (other than the costs of transportation and 
     the personnel costs for case management staff employed full-
     time in the operation of such program); and
       ``(ii) 70 percent or the Federal medical assistance 
     percentage (as defined in section 1905(b)) increased by 10 
     percentage points, whichever is the greater, in the case of 
     expenditures made by a State in operating such program for 
     such fiscal year (other than for costs described in clause 
     (i)).
       ``(2) Form of payment.--With respect to the amount for 
     which payment is made to a State under paragraph (1)(A), the 
     State's expenditures for the costs of operating such program 
     may be in cash or in kind, fairly evaluated.
       ``(3) Use of funds.--A State may use amounts allocated 
     under this subsection for all costs deemed necessary to 
     assist program clients obtain and retain jobs, including 
     emergency day care assistance or sick day care assistance, 
     uniforms, eyeglasses, transportation, wage subsidies, and 
     other employment-related special needs, as defined by the 
     State. Such assistance may be provided through contract with 
     community-based family resource programs under title II of 
     the Child Abuse Prevention and Treatment Act (42 U.S.C. 5116 
     et seq.).''.
       (b) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by subsection (a) shall be 
     effective with respect to calendar quarters beginning on or 
     after October 1, 1996.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the requirements imposed by the 
     amendment made by subsection (a), the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendment before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
       (3) State option to accelerate applicability.--If a State 
     formally notifies the Secretary of Health and Human Services 
     that the State desires to accelerate the applicability to the 
     State of the amendment made by subsection (a), the amendment 
     shall apply to the State on and after such earlier date as 
     the State may select.
       (4) Authority of the secretary of health and human services 
     to delay applicability to a state.--If a State formally 
     notifies the Secretary of Health and Human Services that the 
     State desires to delay the applicability to the State of the 
     amendment made by subsection (a), the amendment shall apply 
     to the State on and after any later date agreed upon by the 
     Secretary and the State.

     SEC. 202. CONSOLIDATION AND STREAMLINING OF SERVICES.

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

     SEC. 203. JOB CREATION.

       (a) Grants to Community-Based Organizations.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') may make 
     grants in accordance with this subsection using funds 
     described in paragraph (2), and, to the extent allowed by the 
     States, Work First funds under part F of title IV of the 
     Social Security Act, to community-based organizations that 
     move clients of temporary employment assistance under a State 
     plan approved under part A of title IV of the Social Security 
     Act or under other public assistance programs into private 
     sector work.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for fiscal year 1996 and $50,000,000 for fiscal years 1997, 
     1998, 1999, 2000, 2001, and 2002.
       (3) Eligible organizations.--The Secretary shall award 
     grants to community-based organizations that--
       (A) may receive at least 5 percent of their funding from 
     local government sources; and
       (B) move clients referred to in paragraph (1) in the 
     direction of unsubsidized private employment by integrating 
     and co-locating at least 5 of the following services--
       (i) case management;
       (ii) job training;
       (iii) child care;
       (iv) housing;
       (v) health care services;
       (vi) nutrition programs;
       (vii) life skills training; and
       (viii) parenting skills.
       (4) Awarding of grants.--
       (A) In general.--The Secretary shall award grants based on 
     the quality of applications, subject to subparagraphs (B) and 
     (C).
       (B) Preference in awarding grants.--In awarding grants 
     under this subsection, the Secretary shall give preference to 
     organizations which receive more than 50 percent of their 
     funding from State government, local government or private 
     sources.
       (C) Distribution of grant.--The Secretary shall award at 
     least 1 grant to each State from which the Secretary received 
     an application.
       (D) Limitation on size of grant.--The Secretary shall not 
     award any grants under this subsection of more than 
     $1,000,000.
       (5) Issuance of regulations.--Not less than 6 months after 
     the date of the enactment of this subsection, the Secretary 
     shall prescribe such regulations as may be necessary to 
     implement this subsection.
       (b) Grants To Expand the Number of Job Opportunities 
     Available to Certain Low-Income Individuals.--
       (1) In general.--The Secretary shall enter into agreements 
     with nonprofit organizations (including community development 
     corporations) submitting applications under this subsection 
     for the purpose of conducting projects in accordance with 
     paragraph (2) and funded under section 495(a)(5) to create 
     employment opportunities for certain low-income individuals. 

[[Page S 11904]]

       (2) Nature of project.--
       (A) In general.--Each nonprofit organization conducting a 
     project under this subsection shall provide technical and 
     financial assistance to private employers in the community to 
     assist such employers in creating employment and business 
     opportunities for those individuals eligible to participate 
     in the projects as described in this paragraph.
       (B) Nonprofit organizations.--For purposes of this 
     subsection, a nonprofit organization is any organization 
     (including a community development corporation) exempt from 
     taxation under section 501(a) of the Internal Revenue Code of 
     1986 by reason of paragraph (3) or (4) of section 501(c) of 
     such Code.
       (C) Eligible low-income individuals.--For purposes of this 
     subsection, a low-income individual eligible to participate 
     in a project conducted under this subsection is any 
     individual eligible to receive temporary employment 
     assistance under part A of title IV of the Social Security 
     Act (as added by section 101 of this Act) and any other 
     individual whose income level does not exceed 100 percent of 
     the poverty line (as such term is defined in section 673(2) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)), including any revision required by such section).
       (3) Content of applications; selection priority.--
       (A) Content of applications.--Each nonprofit organization 
     submitting an application under this subsection shall, as 
     part of such application, describe--
       (i) the technical and financial assistance that will be 
     made available under the project conducted under this 
     subsection;
       (ii) the geographic area to be served by the project;
       (iii) the percentage of low-income individuals (as 
     described in paragraph (2)(C)) and individuals receiving 
     temporary employment assistance under title IV of the Social 
     Security Act (as so added) in the area to be served by the 
     project; and
       (iv) unemployment rates in the geographic areas to be 
     served and (to the extent practicable) the jobs available and 
     skills necessary to fill those vacancies in such areas.
       (B) Selection priority.--In approving applications under 
     this subsection, the Secretary shall give priority to 
     applications proposing to serve those areas containing the 
     highest percentage of individuals receiving temporary 
     employment assistance under title IV of such Act (as so 
     added).
       (4) Administration.--Each nonprofit organization 
     participating in a project conducted under this subsection 
     shall provide assurances in its agreement with the Secretary 
     that the organization has or will have a cooperative 
     relationship with the agency responsible for administering 
     the Work First program (as provided for under part F of title 
     IV of the Social Security Act, as added by section 201 of 
     this Act) in the area served by the project.
                       TITLE III--SUPPORTING WORK

     SEC. 301. EXTENSION OF TRANSITIONAL MEDICAID BENEFITS.

       (a) Extension of Medicaid Enrollment for Former Temporary 
     Employment Assistance Recipients for 1 Additional Year.--
       (1) In general.--Section 1925(b)(1) (42 U.S.C. 1396r-
     6(b)(1)) is amended by striking the period at the end and 
     inserting the following: ``, and shall provide that the State 
     shall offer to each such family the option of extending 
     coverage under this subsection for an additional 2 succeeding 
     6-month periods in the same manner and under the same 
     conditions as the option of extending coverage under this 
     subsection for the first succeeding 6-month period.''.
       (2) Conforming amendments.--
       (A) In general.--Section 1925 (42 U.S.C. 1396r-6) is 
     amended--
       (i) in subsection (b)--

       (I) in the heading, by striking ``Extension'' and inserting 
     ``Extensions'';
       (II) in the heading of paragraph (1), by striking 
     ``Requirement'' and inserting ``In general'';
       (III) in paragraph (2)(B)(ii)--

       (aa) in the heading, by striking ``period'' and inserting 
     ``periods''; and
       (bb) by striking ``in the period'' and inserting ``in each 
     of the 6-month periods'';

       (IV) in paragraph (3)(A), by striking ``the 6-month 
     period'' and inserting ``any 6-month period'';
       (V) in paragraph (4)(A), by striking ``the extension 
     period'' and inserting ``any extension period''; and
       (VI) in paragraph (5)(D)(i), by striking ``is a 3-month 
     period'' and all that follows and inserting the following: 
     ``is, with respect to a particular 6-month additional 
     extension period provided under this subsection, a 3-month 
     period beginning with the first or fourth month of such 
     extension period.''; and

       (ii) by striking subsection (f).
       (B) Family support act.--Section 303(f)(2) of the Family 
     Support Act of 1988 (42 U.S.C. 602 note) is amended--
       (i) by striking ``(A)''; and
       (ii) by striking subparagraphs (B) and (C).
       (b) Transitional Eligibility for Medicaid.--Part A of title 
     IV, as added by section 101(a) is amended by adding at the 
     end the following new section:

     ``SEC. 417. TRANSITIONAL ELIGIBILITY FOR MEDICAID.

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

     SEC. 302. CONSOLIDATED CHILD CARE DEVELOPMENT BLOCK GRANT.

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

     ``SEC. 658B. APPROPRIATION.

       ``(a) Authorization of appropriations of block grant 
     funds.--For the purpose of providing child care services for 
     eligible children through the awarding of grants to States 
     under this subchapter (other than the grants awarded under 
     subsection (b)) by the Secretary, there are authorized to be 
     appropriated, $949,000,000 for each of the fiscal years 1996 
     through 2002.
       ``(b) Appropriations of Federal Matching Funds.--For the 
     purpose of providing child care services for eligible 
     children through the awarding of matching grants to States 
     under section 658J(d) by the Secretary, there are authorized 
     to be appropriated and are hereby appropriated, 
     $1,155,000,000 for fiscal year 1996, $1,900,000,000 for 
     fiscal year 1997, $2,500,000,000 for fiscal year 1998, 
     $3,200,000,000 for fiscal year 1999, $4,100,000,000 for 
     fiscal year 2000, $4,600,000,000 for fiscal year 2001, and 
     $4,900,000,000 for fiscal year 2002.''.
       (2) Use of funds.--Section 658E(c)(3)(B) of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(3)(B)) is amended--
       (A) in clause (i), by striking ``with very low family 
     incomes (taking into consideration family size)'' and 
     inserting ``described in clause (ii) (in the order so 
     described)'';
       (B) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and realigning the margins 
     accordingly;
       (C) by striking ``Subject'' and inserting the following:
       ``(i) In general.--Subject''; and
       (D) by adding at the end the following new clause:
       ``(ii) Families described.--The families described in this 
     clause are the following:

       ``(I) Families containing an individual receiving temporary 
     employment assistance under a State plan approved under part 
     A of title IV of the Social Security Act and participating in 
     job search, work, or Work First.
       ``(II) Families containing an individual who--

       ``(aa) no longer qualifies for child care assistance under 
     section 405(b) of the Social Security Act because such 
     individual has ceased to receive assistance under the 
     temporary employment assistance program under part A of title 
     IV of the Social Security Act as a result of increased hours 
     of, or increased income from, employment; and
       ``(bb) the State determines requires such child care 
     assistance in order to continue such employment (but only for 
     the 1-year period beginning on the date that the individual 
     no longer qualifies for child care assistance under section 
     405(b) of such Act, and, at the option of the State, for the 
     additional 1-year period beginning after the conclusion of 
     the first 1-year period).

       ``(III) Families containing an individual who--

       ``(aa) is not described in subclause (I) or (II); and
       ``(bb) has an annual income for a fiscal year below the 
     poverty line.


[[Page S 11905]]


     For purposes of item (bb), a State may opt to provide child 
     care services to families at or above the poverty line and 
     below 75 percent of the State median income but only with 
     respect to 10 percent of the State's grant under this 
     subchapter or a greater percentage of the State's grant if 
     such increased amount is necessary to provide child care to 
     families who were receiving such care on the day before the 
     date of the enactment of the Work First Act of 1995.

       (3) Set-asides for quality and expansion.--Section 
     658E(c)(3) of the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858c(c)(3))--
       (A) in subparagraph (C), by striking ``25 percent'' and 
     inserting ``10 percent''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) Expansion of child care.--The State shall reserve not 
     less than 10 percent of the amount provided to the State and 
     available for providing services under this subchapter, to 
     provide for the expansion of child care facilities available 
     to support working families residing in the State.''.
       (4) Sliding fee scale.--Section 658E(c)(5) of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(5)) is amended by inserting ``described in 
     subclauses (II) and (III) of paragraph (3)(B)(ii)'' after 
     ``families''.
       (5) Matching requirement for new funds.--
       (A) In general.--Section 658J of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858h) is 
     amended by adding at the end the following new subsections:
       ``(d) Matching Requirement for Certain New Funds.--
       ``(1) Amount of Federal Payment.--Subject to paragraph (2), 
     the Secretary shall make quarterly payments to each State 
     that has an application approved under section 658E(d) in an 
     amount equal to the greater of--
       ``(A) 70 percent; or
       ``(B) the Federal medical assistance percentage (as defined 
     in section 1905(b)) increased by 10 percentage points,
     of the total amount expended during the quarter under the 
     State plan in excess of the State's quarterly allotment under 
     section 658O.
       ``(2) Limitation.--
       ``(A) In general.--Payments under this subsection to a 
     State for any fiscal year may not exceed the limitation 
     determined under subparagraph (B) with respect to the State.
       ``(B) Limitation determined.--The limitation determined 
     under this subparagraph with respect to a State for any 
     fiscal year is the amount that bears the same ratio to the 
     amount specified in subparagraph (C) as the amount allotted 
     to the State under 658O bears to the amount allotted to all 
     States (after reserving the amount for Indian tribes required 
     under section 658O(a)(2)).
       ``(C) Amount specified.--The amount specified in this 
     subparagraph is the amount appropriated for such fiscal year 
     under section 658B(b) reduced by the amount reserved for 
     Indian tribes under subsection (e).
       ``(D) Limitation raised.--If the limitation determined 
     under subparagraph (A) with respect a State for a fiscal year 
     exceeds the amount paid to the State under this subsection 
     for the fiscal year, the limitation determined under this 
     paragraph with respect to the State for the immediately 
     succeeding fiscal year shall be increased by the amount of 
     such excess.
       ``(3) Form of payment.--With respect to the amount for 
     which payment is made to a State under paragraph (1), the 
     State's expenditures for the costs of operating such programs 
     may be in cash or in kind, fairly evaluated.
       ``(4) Method of Computation and Payment.--The method of 
     computing and paying amounts under paragraph (1) shall be as 
     follows:
       ``(A) Amount based on estimate.--The Secretary shall, prior 
     to the beginning of each quarter, estimate the amount to be 
     paid to the State for such quarter under paragraph (1), such 
     estimate to be based on--
       ``(i) a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter in accordance 
     with the provisions of such paragraph and stating the amount 
     appropriated or made available by the State and its political 
     subdivisions for such expenditures in such quarter, and if 
     such amount is less than the State's proportionate share of 
     the total sum of such estimated expenditures, the source or 
     sources from which the difference is expected to be derived; 
     and
       ``(ii) such other information as the Secretary may find 
     necessary.
       ``(B) Reduction or increase.--The Secretary shall reduce or 
     increase the amount to be paid, as the case may be, by any 
     sum by which the Secretary finds that the estimate for any 
     prior quarter was greater or less than the amount which 
     should have been paid to the State for such quarter, except 
     that such increases or reductions shall not be made to the 
     extent that such sums have been applied to make the amount 
     certified for any prior quarter greater or less than the 
     amount estimated by the Secretary for such prior quarter.
       ``(e) Amounts Reserved for Indian Tribes.--The Secretary 
     shall reserve not more than 3 percent of the amount 
     appropriated under section 658B(b) in each fiscal year for 
     payments to Indian tribes and tribal organizations with 
     applications approved under section 658O(c). The amounts 
     reserved under the prior sentence shall be available to make 
     grants to or enter into contracts with Indian tribes or 
     tribal organizations consistent with section 6580(c) without 
     a requirement of matching funds by the Indian tribes or 
     tribal organizations.
       ``(f) Same Treatment as Allotments.--Amounts paid to a 
     State or Indian tribe under subsections (d) and (e) shall be 
     subject to the same requirements under this subchapter as 
     amounts paid from the allotment under section 658O.''.
       (B) Conforming amendments.--Section 658O of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (i) in subsection (a)--

       (I) in paragraph (1), by striking ``this subchapter'' and 
     inserting section 658B(a); and
       (II) in paragraph (2), by striking ``section 658B'' and 
     inserting ``section 658B(a); and

       (ii) in subsection (b)(1), by striking ``section 658B'' and 
     inserting ``section 658B(a)''.
       (6) Improving quality.--
       (A) Increase in required funding.--Section 658G of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858e) is amended by striking ``not less than 20 percent'' 
     and inserting ``50 percent''.
       (B) Quality improvement incentive initiative.--Section 658G 
     of the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858e) is amended--
       (i) by striking ``A State'' and inserting ``(a) In 
     General.--A State''; and
       (ii) by adding at the end the following new subsection:
       ``(b) Quality Improvement Incentive Initiative.--
       ``(1) In general.--The Secretary shall establish a child 
     care quality improvement incentive initiative to make funds 
     available to States that demonstrate progress in the 
     implementation of--
       ``(A) innovative teacher training programs such as the 
     Department of Defense staff development and compensation 
     program for child care personnel; or
       ``(B) enhanced child care quality standards and licensing 
     and monitoring procedures.
       ``(2) Funding.--From the amounts made available for each 
     fiscal year under subsection (a), the Secretary shall reserve 
     not to exceed $50,000,000 in each such fiscal year to carry 
     out this subsection.''.
       (7) Payments.--Section 658J(a) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858h) is 
     amended by striking ``Subject to the availability of 
     appropriation, a'' and inserting ``A''.
       (8) Definition of eligible child.--Section 658P(4)(B) of 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858n(4)(B)) is amended to read as follows:
       ``(B) who is a member of a family described in section 
     658E(c)(3)(B)(ii); and''.
       (9) Definition of poverty line.--Section 658P of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858n) is amended--
       (A) by redesignating paragraphs (10) through (14) as 
     paragraphs (11) through (15), respectively; and
       (B) by inserting after paragraph (9), the following new 
     paragraph:
       ``(10) Poverty line.--The term `poverty line' means the 
     poverty line (as such term is defined in section 673(2) of 
     the Community Services Block Grant Act (42 U.S.C. 9902(2)), 
     including any revision required by such section) that--
       ``(A) in the case of a family of less than 4 individuals, 
     is applicable to a family of the size involved; and
       ``(B) in the case of a family of 4 or more individuals, is 
     applicable to a family of 4 individuals.''.
       (c) Program Repeals.--
       (1) State dependent care grants.--Subchapter E of chapter 8 
     of subtitle A of title VI of the Omnibus Budget 
     Reconciliation Act of 1981 (42 U.S.C. 9871 et seq.) is 
     repealed.
       (2) Child development associate scholarship assistance 
     act.--The Child Development Associate Scholarship Assistance 
     Act of 1985 (42 U.S.C. 10901 et seq.) is repealed.
       TITLE IV--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

     SEC. 401. SUPERVISED LIVING ARRANGEMENTS FOR MINORS.

       Section 402(c), as added by section 101(a), is amended by 
     adding at the end the following new paragraph:
       ``(7) Supervised living arrangements for minors.--The State 
     plan shall provide that--
       ``(A) except as provided in subparagraph (B), in the case 
     of any individual who is under age 18 and has never married, 
     and who has a needy child in his or her care (or is pregnant 
     and is eligible for temporary employment assistance under the 
     State plan)--
       ``(i) such individual may receive such assistance for the 
     individual and such child (or for herself in the case of a 
     pregnant woman) only if such individual and child (or such 
     pregnant woman) reside in a place of residence maintained by 
     a parent, legal guardian, or other adult relative of such 
     individual as such parent's, guardian's, or adult relative's 
     own home; and
       ``(ii) such assistance (where possible) shall be provided 
     to the parent, legal guardian, or other adult relative on 
     behalf of such individual and child; and
       ``(B)(i) in the case of an individual described in clause 
     (ii)--
       ``(I) the State agency shall assist such individual in 
     locating an appropriate adult-supervised supportive living 
     arrangement taking into consideration the needs and concerns 
     of the individual, unless the State 

[[Page S 11906]]
     agency determines that the individual's current living arrangement is 
     appropriate, and thereafter shall require that the individual 
     (and child, if any) reside in such living arrangement as a 
     condition of the continued receipt of assistance under the 
     plan (or in an alternative appropriate arrangement, should 
     circumstances change and the current arrangement cease to be 
     appropriate), or
       ``(II) if the State agency is unable, after making diligent 
     efforts, to locate any such appropriate living arrangement, 
     the State agency shall provide for comprehensive case 
     management, monitoring, and other social services consistent 
     with the best interests of the individual (and child) while 
     living independently (as determined by the State agency); and
       ``(ii) for purposes of clause (i), an individual is 
     described in this clause if--
       ``(I) such individual has no parent or legal guardian of 
     his or her own who is living and whose whereabouts are known;
       ``(II) no living parent or legal guardian of such 
     individual allows the individual to live in the home of such 
     parent or guardian;
       ``(III) the State agency determines that the physical or 
     emotional health of such individual or any needy child of the 
     individual would be jeopardized if such individual and such 
     needy child lived in the same residence with such 
     individual's own parent or legal guardian; or
       ``(IV) the State agency otherwise determines (in accordance 
     with regulations issued by the Secretary) that it is in the 
     best interest of the needy child to waive the requirement of 
     subparagraph (A) with respect to such individual.''.

     SEC. 402. REINFORCING FAMILIES.

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

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

       ``(a) Entitlement.--
       ``(1) In general.--In addition to any payment under 
     sections 2002 and 2007, beginning with fiscal year 1996, each 
     State shall be entitled to funds under this section for each 
     fiscal year for the establishment, operation, and support of 
     adult-supervised group homes for custodial parents under age 
     18 (or age 19, at the option of the State) and their 
     children.
       ``(2) Payment to states.--
       ``(A) In general.--Each State shall be entitled to payment 
     under this section for each fiscal year in an amount equal to 
     its allotment (determined in accordance with subsection (b)) 
     for such fiscal year, to be used by such State for the 
     purposes set forth in paragraph (1).
       ``(B) Transfers of funds.--The Secretary shall make 
     payments in accordance with section 6503 of title 31, United 
     States Code, to each State from its allotment for use under 
     this title.
       ``(C) Use.--Payments to a State from its allotment for any 
     fiscal year must be expended by the State in such fiscal year 
     or in the succeeding fiscal year.
       ``(D) Technical assistance.--A State may use a portion of 
     the amounts described in subparagraph (A) for the purpose of 
     purchasing technical assistance from public or private 
     entities if the State determines that such assistance is 
     required in developing, implementing, or administering the 
     program funded under this section.
       ``(3) Adult-supervised group home.--For purposes of this 
     section, the term `adult-supervised group home' means an 
     entity that provides custodial parents under age 18 (or age 
     19, at the option of the State) and their children with a 
     supportive and supervised living arrangement in which such 
     parents are required to learn parenting skills, including 
     child development, family budgeting, health and nutrition, 
     and other skills to promote their long-term economic 
     independence and the well-being of their children. An adult-
     supervised group home may also serve as a network center for 
     other supportive services that are available in the 
     community.
       ``(b) Allotment.--
       ``(1) Certain jurisdictions.--The allotment for any fiscal 
     year to each of the jurisdictions of Puerto Rico, Guam, the 
     Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to the 
     amount specified under paragraph (3) as the allotment that 
     the jurisdiction receives under section 2003(a) for the 
     fiscal year bears to the total amount specified for such 
     fiscal year under section 2003(c).
       ``(2) Other states.--The allotment for any fiscal year for 
     each State other than the jurisdictions of Puerto Rico, Guam, 
     the Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to--
       ``(A) the amount specified under paragraph (3), reduced by
       ``(B) the total amount allotted to those jurisdictions for 
     that fiscal year under paragraph (1),

     as the allotment that the State receives under section 
     2003(b) for the fiscal year bears to the total amount 
     specified for such fiscal year under section 2003(c).
       ``(3) Amount specified.--The amount specified for purposes 
     of paragraphs (1) and (2) shall be $95,000,000 for fiscal 
     year 1996 and each subsequent fiscal year.
       ``(c) Local Involvement.--Each State shall seek local 
     involvement from the community in any area in which an adult-
     supervised group home receiving funds pursuant to this 
     section is to be established. In determining criteria for 
     targeting funds received under this section, each State shall 
     evaluate the community's commitment to the establishment and 
     planning of the home.
       ``(d) Limitations on the Use of Funds.--
       ``(1) Construction.--Except as provided in paragraph (2), 
     funds made available under this section may not be used by 
     the State, or any other person with which the State makes 
     arrangements to carry out the purposes of this section, for 
     the purchase or improvement of land, or the purchase, 
     construction, or permanent improvement (other than minor 
     remodeling) of any building or other facility.
       ``(2) Waiver.--The Secretary may waive the limitation 
     contained in paragraph (1) upon the State's request for such 
     a waiver if the Secretary finds that the request describes 
     extraordinary circumstances to justify the waiver and that 
     permitting the waiver will contribute to the State's ability 
     to carry out the purposes of this section.
       ``(e) Treatment of Indian Tribes.--
       ``(1) In general.--An Indian tribe may apply to the 
     Secretary to establish, operate, and support adult-supervised 
     group homes for custodial parents under age 18 (or age 19, at 
     the option of the State) and their children in accordance 
     with an application procedure to be determined by the 
     Secretary. Except as otherwise provided in this subsection, 
     the provisions of this section shall apply to Indian tribes 
     receiving funds under this subsection in the same manner and 
     to the same extent as the other provisions of this section 
     apply to States.
       ``(2) Allotment.--If the Secretary approves an Indian 
     tribe's application, the Secretary shall allot to such tribe 
     for a fiscal year an amount which the Secretary determines is 
     the Indian tribe's fair and equitable share of the amount 
     specified under paragraph (3) for all Indian tribes with 
     applications approved under this subsection (based on 
     allotment factors to be determined by the Secretary). The 
     Secretary shall determine a minimum allotment amount for all 
     Indian tribes with applications approved under this 
     subsection. Each Indian tribe with an application approved 
     under this subsection shall be entitled to such minimum 
     allotment.
       ``(3) Amount specified.--The amount specified under this 
     paragraph for all Indian tribes with applications approved 
     under this subsection is $5,000,000 for fiscal year 1996 and 
     each subsequent fiscal year.
       ``(4) Indian tribe defined.--For purposes of this section, 
     the term `Indian tribe' means any Indian tribe, band, nation, 
     pueblo, or other organized group or community, including any 
     Alaska Native entity which is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indian tribes because of their status as Indians.''.
       (b) Receipt of Payments by Adult-Supervised Group Homes.--
     Section 402(c)(7)(A)(ii), as added by section 401(a), is 
     amended by striking ``or other adult relative'' and inserting 
     ``other adult relative, or adult-supervised group home 
     receiving funds under section 2008''.
       (c) Recommendations on Use of Government Surplus 
     Property.--Not later than 6 months after the date of the 
     enactment of this Act, after consultation with the Secretary 
     of Defense, the Secretary of Housing and Urban Development, 
     and the Administrator of the General Services Administration, 
     the Secretary of Health and Human Services shall submit 
     recommendations to the Congress on the extent to which 
     surplus properties of the United States Government may be 
     used for the establishment of adult-supervised group homes 
     receiving funds under section 2008 of the Social Security 
     Act, as added by this section.

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

       (a) In General.--Section 403(b)(4), as added by section 
     101(a), is amended--
       (1) by inserting ``(A)'' after ``(4)''; and
       (2) by inserting at the end the following new subparagraph:
       ``(B) In the case of a client who is a custodial parent who 
     is under age 18 (or age 19, at the option of the State), has 
     not successfully completed a high-school education (or its 
     equivalent), and is required to participate in the Work First 
     program (including an individual who would otherwise be 
     exempt from participation in the program), provides that--
       ``(i) such parent participate in--
       ``(I) educational activities directed toward the attainment 
     of a high school diploma or its equivalent on a full-time (as 
     defined by the educational provider) basis; or
       ``(II) an alternative educational or training program on a 
     full-time (as defined by the provider) basis; and
       ``(ii) child care be provided in accordance with section 
     405(b) with respect to the family.''.
       (b) State Option To Provide Additional Incentives and 
     Penalties to Encourage Teen Parents to Complete High School 
     and Participate in Parenting Activities.--
       (1) State plan.--Section 403(b)(4), as amended by 
     subsection (a), is amended by inserting after subparagraph 
     (B) the following new subparagraph:
       ``(C) At the option of the State, provides that the client 
     who is a custodial parent or pregnant woman who is under age 
     19 (or age 21, at the option of the State) participate in a 
     program of monetary incentives and penalties which--

[[Page S 11907]]

       ``(i) may, at the option of the State, require full-time 
     participation by such custodial parent or pregnant woman in 
     secondary school or equivalent educational activities, or 
     participation in a course or program leading to a skills 
     certificate found appropriate by the State agency or 
     parenting education activities (or any combination of such 
     activities and secondary education);
       ``(ii) shall require that the needs of such custodial 
     parent or pregnant woman be reviewed and the program assure 
     that, either in the initial development or revision of such 
     individual's parent empowerment contract, there will be 
     included a description of the services that will be provided 
     to the client and the way in which the program and service 
     providers will coordinate with the educational or skills 
     training activities in which the client is participating;
       ``(iii) shall provide monetary incentives (to be treated as 
     assistance under the State plan) for more than minimally 
     acceptable performance of required educational activities;
       ``(iv) shall provide penalties (which may be those required 
     by subsection (c) or, with the approval of the Secretary, 
     other monetary penalties that the State finds will better 
     achieve the objectives of the program) for less than 
     minimally acceptable performance of required activities;
       ``(v) shall provide that when a monetary incentive is 
     payable because of the more than minimally acceptable 
     performance of required educational activities by a custodial 
     parent, the incentive be paid directly to such parent, 
     regardless of whether the State agency makes payment of 
     assistance under the State plan directly to such parent; and
       ``(vi) for purposes of any other Federal or federally-
     assisted program based on need, shall not consider any 
     monetary incentive paid under this subsection as income in 
     determining a family's eligibility for or amount of benefits 
     under such program, and if assistance is reduced by reason of 
     a penalty under this subparagraph, such other program shall 
     treat the family involved as if no such penalty has been 
     applied.''.

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

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

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

       (a) In General.--Section 406(e), as added by section 
     101(a), is amended to read as follows:
       ``(e) Out-of-Wedlock and Teen Pregnancy Programs.--
       ``(1) Out-of-wedlock pregnancies.--The State plan shall 
     provide for the development of a program to reduce the 
     incidence of out-of-wedlock pregnancies, which may include 
     providing unmarried mothers and unmarried fathers with 
     services which will help them--
       ``(A) avoid subsequent pregnancies, and
       ``(B) provide adequate care to their children.
       ``(2) Teen pregnancies.--
       ``(A) In general.--The State plan shall provide that the 
     State agency may, to the extent it determines resources are 
     available, provide for the operation of projects to reduce 
     teenage pregnancy. Such projects shall be operated by 
     eligible entities that have submitted applications described 
     in subparagraph (C) that have been approved in accordance 
     with subparagraph (D).
       ``(B) Eligible entities.--For purposes of this paragraph, 
     the term `eligible entity' includes State agencies, local 
     agencies, publicly supported organizations, private nonprofit 
     organizations, and consortia of such entities.
       ``(C) Applications.--An application described in this 
     subparagraph shall--
       ``(i) describe the project;
       ``(ii) include an endorsement of the project by the chief 
     elected official of the jurisdiction in which the project is 
     to be located;
       ``(iii) demonstrate strong local commitment and local 
     involvement in the planning and implementation of the 
     project; and
       ``(iv) be submitted in such manner and containing such 
     information as the Secretary may require.
       ``(D) Approval.--
       ``(i) In general.--Subject to clause (ii), the chief 
     executive officer of a State may approve an application under 
     this subparagraph based on selection criteria (to be 
     determined by the chief executive officer).
       ``(ii) Preferences.--Preference in approving a project 
     shall be accorded to be projects that target--

       ``(I) both young men and women;
       ``(II) areas with high teenage pregnancy rates; or
       ``(III) areas with a high incidence of individuals 
     receiving temporary employment assistance.

       ``(E) Indian tribes.--
       ``(i) In general.--An Indian tribe may apply to the 
     Secretary to provide for the operation of projects to reduce 
     teenage pregnancy in accordance with an application procedure 
     to be determined by the Secretary. Except as otherwise 
     provided in this subparagraph, the provisions of this 
     paragraph shall apply to Indian tribes receiving funds under 
     this paragraph in the same manner and to the same extent as 
     the other provisions of this paragraph apply to States.
       ``(ii) Limitation.--The Secretary shall limit the number of 
     applications approved under this subparagraph to ensure that 
     payments under section 413(d) to Indian tribes with approved 
     applications would not result in payments of less than a 
     minimum payment amount (to be determined by the Secretary).
       ``(C) Indian tribe defined.--For purposes of this 
     subparagraph, the term `Indian tribe' means any Indian tribe, 
     band, nation, pueblo, or other organized group or community, 
     including any Alaska Native entity which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indian tribes because of their status as 
     Indians.
       ``(F) Project length.--A project conducted under this 
     paragraph shall be conducted for not less than 3 years.
       ``(G) Study.--
       ``(i) In general.--The Secretary shall conduct a study in 
     accordance with clause (ii) to determine the relative 
     effectiveness of the different approaches for preventing 
     teenage pregnancy utilized in the projects conducted under 
     this paragraph.
       ``(ii) Requirements.--The study required under clause (i) 
     shall--
       ``(I) be based on data gathered from projects conducted in 
     5 States chosen by the Secretary from among the States in 
     which projects under this paragraph are operated;
       ``(II) use specific outcome measures (determined by the 
     Secretary) to test the effectiveness of the projects;
       ``(III) use experimental and control groups (to the extent 
     possible) that are composed of a random sample of 
     participants in the projects; and
       ``(IV) be conducted in accordance with an experimental 
     design determined by the Secretary to result in a comparable 
     design among all projects.

       ``(iii) Interim data.--Each eligible entity conducting a 
     project under this paragraph shall provide to the Secretary 
     in such form and with such frequency as the Secretary 
     requires interim data from the projects conducted under this 
     paragraph. The Secretary shall report to the Congress 
     annually on the progress of such projects and shall, not 
     later than January 1, 2003, submit to the Congress a final 
     report on the study required under clause (i).
       ``(iv) Authorization.--There are authorized to be 
     appropriated $500,000 for each of fiscal years 1996 through 
     2002 for the purpose of conducting the study required under 
     clause (i).''.
       (b) Payment.--Section 413, as added by section 101(a), is 
     amended by adding at the end the following new subsection:
       ``(d) Funding for Teen Pregnancy Projects.--
       ``(1) In general.--In addition to any payment under 
     subsection (a), each State shall be entitled to payment from 
     the Secretary for each of fiscal years 1996 through 2002 of 
     an amount equal to the lesser of--
       ``(A) 75 percent of the expenditures by the State in 
     providing for the operation of the projects under section 
     406(e)(2), and in administering the projects under such 
     section; or
       ``(B) the limitation determined under paragraph (2) with 
     respect to the State for the fiscal year.
       ``(2) Limitation.--
       ``(A) In general.--The limitation determined under this 
     paragraph with respect to a State for any fiscal year is the 
     amount that bears the same ratio to $71,250,000 as the 
     population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by such section) in the State in the second 
     preceding fiscal year bears to such population residing in 
     the United States in the second preceding fiscal year.
       ``(B) Adjustment.--If the limitation determined under 
     subparagraph (A) with respect to a State for a fiscal year 
     exceeds the amount paid to the State under this subsection 
     for the fiscal year, the limitation determined under this 
     paragraph with respect to the State for the immediately 
     succeeding fiscal year shall be increased by the amount of 
     such excess.
       ``(3) Indian tribes.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, for purposes of this subsection, an Indian tribe 
     with an application approved under section 406(e)(2)(E) shall 
     be entitled to payment from the Secretary for each of fiscal 
     years 1996 through 2002 of an amount equal to the lesser of--
       ``(i) 75 percent of the expenditures by the Indian tribe in 
     providing for the operation of the projects under section 
     406(e)(2)(E), and in administering the projects under such 
     section; or
       ``(ii) the limitation determined under subparagraph (B) 
     with respect to the Indian tribe for the fiscal year.
       ``(B) Limitation.--
       ``(i) In general.--The limitation determined under this 
     subparagraph with respect to an Indian tribe for any fiscal 
     year is the amount that bears the same ratio to $3,750,000 as 
     the population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)), 

[[Page S 11908]]
     including any revision required by such section) in the Indian tribe in 
     the second preceding fiscal year bears to such population of 
     all Indian tribes with applications approved under section 
     406(e)(2)(E) in the second preceding fiscal year.
       ``(ii) Adjustment.--If the limitation determined under 
     clause (i) with respect to an Indian tribe for a fiscal year 
     exceeds the amount paid to the Indian tribe under this 
     paragraph for the fiscal year, the limitation determined 
     under this subparagraph with respect to the Indian tribe for 
     the immediately succeeding fiscal year shall be increased by 
     the amount of such excess.
       ``(4) Use of appropriations.--Amounts appropriated for a 
     fiscal year to carry out this part shall be made available 
     for payments under this subsection for such fiscal year.''.

     SEC. 406. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

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

     SEC. 407. EFFECTIVE DATES.

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

     SEC. 500. SHORT TITLE.

       This title may be cited as the ``Interstate Child Support 
     Responsibility Act of 1995''.
    Subtitle A--Improvements to the Child Support Collection System

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

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

       (a) State Law Requirements.--Section 466(a) (42 U.S.C. 
     666(a)) is amended by adding at the end the following new 
     paragraph:
       ``(12) Procedures under which--
       ``(A) every child support order established or modified in 
     the State on or after October 1, 1998, is recorded in the 
     central case registry established in accordance with section 
     454A(e); and
       ``(B) child support payments are collected through the 
     centralized collections unit established in accordance with 
     section 454B--
       ``(i) on and after October 1, 1998, under each order 
     subject to wage withholding under section 466(b); and
       ``(ii) on and after October 1, 1999, under each other order 
     required to be recorded in such central case registry under 
     this paragraph or section 454A(e), if requested by either 
     party subject to such order.''.
       (b) State Plan Requirements.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) provide that such State will undertake to provide 
     appropriate services under this part to--
       ``(A) each child with respect to whom an assignment is 
     effective under section 402(c), 471(a)(17), or 1912 (except 
     in cases in which the State agency determines, in accordance 
     with paragraph (25), that it is against the best interests of 
     the child to do so); and
       ``(B) each child not described in subparagraph (A)--
       ``(i) with respect to whom an individual applies for such 
     services; or
       ``(ii) on and after October 1, 1998, with respect to whom a 
     support order is recorded in the central State case registry 
     established under section 454A--

       ``(I) if application is made for services under this part; 
     or
       ``(II) at the option of the State, unless such services are 
     declined;'';

       (2) in paragraph (6)--
       (A) by striking ``(6) provide that'' and all that follows 
     through subparagraph (A) and inserting the following:
       ``(6) provide that--
       ``(A) services under the State plan shall be made available 
     to nonresidents on the same terms as to residents;'';
       (B) in subparagraph (B)--
       (i) by inserting ``on individuals other than indiviudals 
     with respect to whom an assignment under parts A or E or 
     title XIX is effective (except as provided in section 
     457(c))'' after ``such services shall be imposed''; and
       (ii) by inserting ``but no fees or costs shall be imposed 
     on any absent or custodial parent or other individual for 
     inclusion in the central State registry maintained pursuant 
     to section 454A(e),'' after ``(as determined by the 
     State),''; and
       (C) in each of subparagraphs (B), (C), (D), and (E), by 
     indenting such subparagraph and aligning its left margin with 
     the left margin of subparagraph (A); and
       (D) in each of subparagraphs (B), (C), and (D), by striking 
     the final comma and inserting a semicolon;
       (3) in paragraph (23)--
       (A) by striking ``the State will regularly'' and inserting 
     ``the State will--
       ``(A) regularly'';
       (B) by adding at the end the following new subparagraph:
       ``(B) have a plan for outreach to parents designed to 
     disseminate information about and increase access to child 
     support enforcement services, including plans responding to 
     needs--
       ``(i) of working parents to obtain such services without 
     taking time off work; and
       ``(ii) of parents with limited proficiency in English for 
     elimination of language barriers to use of such services; 
     and''; and
       (4)(A) by striking ``and'' at the end of paragraph (23);
       (B) by striking the period at the end of paragraph (24) and 
     inserting ``; and''; and
       (C) by inserting after paragraph (24) the following new 
     paragraph:
       ``(25) provide that the State establish procedures for any 
     absent parent owing child support arrearages to enter into a 
     repayment plan with the State, engage in community service, 
     or face imprisonment.''.
       (c) Conforming Amendments.--
       (1) Paternity establishment percentage.--Section 
     452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended by striking 
     ``454(6)'' each place it appears and inserting 
     ``454(4)(A)(ii)''.
       (2) State plan.--Section 454(23)(A) (42 U.S.C. 654(23)(A)), 
     as amended by subsection (b)(3), is amended, effective 
     October 1, 1998, by striking ``information as to any 
     application fees for such services and''.
       (3) Procedures to improve enforcement.--Section 
     466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking 
     ``in the case of overdue support which a State has agreed to 
     collect under section 454(6)'' and inserting ``in any other 
     case''.
       (4) Definition of overdue support.--Section 466(e) (42 
     U.S.C. 666(e)) is amended by striking ``or (6)''.

     SEC. 502. DISTRIBUTION OF PAYMENTS.

       (a) Distributions Through State Child Support Enforcement 
     Agency to Former Assistance Recipients.--Section 454(5) (42 
     U.S.C. 654(5)) is amended--
       (1) in subparagraph (A)--
       (A) by striking section 402(a)(26) is effective,'' and 
     inserting ``section 403(b)(7)(A) is effective, except as 
     otherwise specifically provided in section 464 or 
     466(a)(3),''; and
       (B) by striking ``except that'' and all that follows 
     through the semicolon; and
       (2) in subparagraph (B), by striking ``, except'' and all 
     that follows through ``medical assistance''.
       (b) Distribution to a Family Currently Receiving Temporary 
     Employment Assistance.--Section 457 (42 U.S.C. 657) is 
     amended--
       (1) by striking subsection (a) and redesignating subsection 
     (b) as subsection (a);
       (2) in subsection (a), as redesignated--
       (A) in the matter preceding paragraph (2), to read as 
     follows:
       ``(a) In the Case of a Family Receiving TEA.--Amounts 
     collected under this part during any month as support of a 
     child who is receiving assistance under part A (or a parent 
     or caretaker relative of such a child) shall (except in the 
     case of a State exercising the option under subsection (b)) 
     be distributed as follows:
       ``(1) an amount equal to the amount that will be 
     disregarded pursuant to section 402(d)(2)(C) shall be taken 
     from each of--
       ``(A) the amounts received in a month which represent 
     payments for that month; and

[[Page S 11909]]

       ``(B) the amounts received in a month which represent 
     payments for a prior month which were made by the absent 
     parent in that prior month;

     and shall be paid to the family without affecting its 
     eligibility for assistance or decreasing any amount otherwise 
     payable as assistance to such family during such month;'';
       (B) in paragraph (4), by striking ``or (B)'' and all that 
     follows through the period and inserting ``; then (B) from 
     any remainder, amounts equal to arrearages of such support 
     obligations assigned, pursuant to part A, to any other State 
     or States shall be paid to such other State or States and 
     used to pay any such arrearages (with appropriate 
     reimbursement of the Federal Government to the extent of its 
     participation in the financing); and then (C) any remainder 
     shall be paid to the family.''; and
       (3) by inserting after subsection (a), as redesignated, the 
     following new subsection:
       ``(b) Alternative Distribution in Case of Family Receiving 
     TEA.--In the case of a State electing the option under this 
     subsection, amounts collected as described in subsection (a) 
     shall be distributed as follows:
       ``(1) an amount equal to the amount that will be 
     disregarded pursuant to section 402(d)(2)(C) shall be taken 
     from each of--
       ``(A) the amounts received in a month which represent 
     payments for that month; and
       ``(B) the amounts received in a month which represent 
     payments for a prior month which were made by the absent 
     parent in that prior month;

     and shall be paid to the family without affecting its 
     eligibility for assistance or decreasing any amount otherwise 
     payable as assistance to such family during such month;
       ``(2) second, from any remainder, amounts equal to the 
     balance of support owed for the current month shall be paid 
     to the family;
       ``(3) third, from any remainder, amounts equal to 
     arrearages of such support obligations assigned, pursuant to 
     part A, to the State making the collection shall be retained 
     and used by such State to pay any such arrearages (with 
     appropriate reimbursement of the Federal Government to the 
     extent of its participation in the financing);
       ``(4) fourth, from any remainder, amounts equal to 
     arrearages of such support obligations assigned, pursuant to 
     part A, to any other State or States shall be paid to such 
     other State or States and used to pay any such arrearages 
     (with appropriate reimbursement of the Federal Government to 
     the extent of its participation in the financing); and
       ``(5) fifth, any remainder shall be paid to the family.''.
       (c) Distribution to a Family Not Receiving TEA.--Section 
     457(c) (42 U.S.C. 657(c)) is amended to read as follows:
       ``(c) Distributions In Case of Family Not Receiving TEA.--
     Amounts collected by a State agency under this part during 
     any month as support of a child who is not receiving 
     assistance under part A (or of a parent or caretaker relative 
     of such a child) shall (subject to the remaining provisions 
     of this section) be distributed as follows:
       ``(1) first, amounts equal to the total of such support 
     owed for such month shall be paid to the family;
       ``(2) second, from any remainder, amounts equal to 
     arrearages of such support obligations for months during 
     which such child did not receive assistance under part A 
     shall be paid to the family;
       ``(3) third, from any remainder, amounts equal to 
     arrearages of such support obligations assigned to the State 
     making the collection pursuant to part A shall be retained 
     and used by such State to pay any such arrearages (with 
     appropriate reimbursement of the Federal Government to the 
     extent of its participation in the financing); and
       ``(4) fourth, from any remainder, amounts equal to 
     arrearages of such support obligations assigned to any other 
     State pursuant to part A shall be paid to such other State or 
     States, and used to pay such arrearages, in the order in 
     which such arrearages accrued (with appropriate reimbursement 
     of the Federal Government to the extent of its participation 
     in the financing).''.
       (d) Distribution to a Child Receiving Assistance Under 
     Title IV-E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in 
     the matter preceding paragraph (1), by striking 
     ``Notwithstanding the preceding provisions of this section, 
     amounts'' and inserting the following:
       ``(d) Distributions In Case of a Child Receiving Assistance 
     Under Title IV-E.--Amounts''.
       (e) Regulations.--The Secretary of Health and Human 
     Services shall promulgate regulations under part A of title 
     IV of the Social Security Act, establishing standards 
     applicable to States electing the alternative formula under 
     section 457(b) of such Act for distribution of collections on 
     behalf of families receiving temporary employment assistance, 
     designed to minimize irregular monthly payments to such 
     families.
       (f) Clerical Amendments.--Section 454 (42 U.S.C. 654) is 
     amended--
       (1) in paragraph (11)--
       (A) by striking ``(11)'' and inserting ``(11)(A)''; and
       (B) by inserting after the semicolon ``and''; and
       (2) by redesignating paragraph (12) as subparagraph (B) of 
     paragraph (11).
       (f) Effective dates.--
       (1) In general.--Execpt as otherwise provided in this 
     subsection, the amendments made by this section shall become 
     effective on October 1, 1996.
       (2) Family not receiving tea.--The amendment made by 
     subsection (c) shall become effective on October 1, 1999.
       (3) Special rules.--
       (A) Applicability.--A State may elect to have the 
     amendments made by this section (other than subsection (c)) 
     become effective only with respect to child support cases 
     beginning on or after October 1, 1996.
       (B) Delayed implementation.--A State may elect to have the 
     amendments made by this section (other than subsection (c)) 
     become effective on a date later than October 1, 1996, which 
     date shall coincide with the operation of the single 
     statewide automated data processing and information retrieval 
     system required by section 454A of the Social Security Act 
     (as added by section 515(a)(2) of this Act) and the State 
     centralized collection unit required by section 454B of the 
     Social Security Act (as added by section 522(b) of this Act).

     SEC. 503. RIGHTS TO NOTIFICATION AND HEARINGS.

       (a) In General.--Section 454 (42 U.S.C. 654), as amended by 
     section 502(f), is amended by inserting after paragraph (11) 
     the following new paragraph:
       ``(12) establish procedures to provide that--
       ``(A) individuals who are applying for or receiving 
     services under this part, or are parties to cases in which 
     services are being provided under this part--
       ``(i) receive notice of all proceedings in which support 
     obligations might be established or modified; and
       ``(ii) receive a copy of any order establishing or 
     modifying a child support obligation, or (in the case of a 
     petition for modification) a notice of determination that 
     there should be no change in the amount of the child support 
     award, within 14 days after issuance of such order or 
     determination;
       ``(B) individuals applying for or receiving services under 
     this part have access to a fair hearing or other formal 
     complaint procedure that ensures prompt consideration and 
     resolution of complaints (but the resort to such procedure 
     shall not stay the enforcement of any support order); and
       ``(C) the State may not provide to any noncustodial parent 
     of a child representation relating to the establishment or 
     modification of an order for the payment of child support 
     with respect to that child, unless the State makes provision 
     for such representation outside the State agency;''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on October 1, 1997.

     SEC. 504. PRIVACY SAFEGUARDS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by section 501(b)(4), is amended--
       (1) by striking ``and'' at the end of paragraph (24);
       (2) by striking the period at the end of paragraph (25) and 
     inserting ``; and''; and
       (3) by adding after paragraph (25) the following:
       ``(26) provide that the State will have in effect 
     safeguards applicable to all sensitive and confidential 
     information handled by the State agency designed to protect 
     the privacy rights of the parties, including--
       ``(A) safeguards against unauthorized use or disclosure of 
     information relating to proceedings or actions to establish 
     paternity, or to establish or enforce support;
       ``(B) prohibitions on the release of information on the 
     whereabouts of 1 party to another party against whom a 
     protective order with respect to the former party has been 
     entered; and
       ``(C) prohibitions on the release of information on the 
     whereabouts of 1 party to another party if the State has 
     reason to believe that the release of the information may 
     result in physical or emotional harm to the former party.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on October 1, 1997.

              PART II--PROGRAM ADMINISTRATION AND FUNDING

     SEC. 511. FEDERAL MATCHING PAYMENTS.

       (a) Increased Base Matching Rate.--Section 455(a)(2) (42 
     U.S.C. 655(a)(2)) is amended to read as follows:
       ``(2) The applicable percent for a quarter for purposes of 
     paragraph (1)(A) is--
       ``(A) for fiscal years 1996, 1997, and 1998, 66 percent,
       ``(B) for fiscal year 1999, 69 percent,
       ``(C) for fiscal year 2000, 72 percent, and
       ``(D) for fiscal year 2001 and succeeding fiscal years, 75 
     percent.''.
       (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
     amended--
       (1) in subsection (a)(1), in the matter preceding 
     subparagraph (A), by striking ``From'' and inserting 
     ``Subject to subsection (c), from''; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Notwithstanding the provisions of subsection (a), 
     total expenditures for the State program under this part for 
     fiscal year 1999 and each succeeding fiscal year (excluding 
     1-time capital expenditures for automation), reduced by the 
     percentage specified for such fiscal year under subsection 
     (a)(2) shall not be less than such total expenditures for 
     fiscal year 1996, reduced by 66 percent.''.
     
[[Page S 11910]]


     SEC. 512. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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


                ``incentive adjustments to matching rate

       ``Sec. 458. (a) Incentive Adjustment.--
       ``(1) In general.--In order to encourage and reward State 
     child support enforcement programs which perform in an 
     effective manner, the Federal matching rate for payments to a 
     State under section 455(a)(1)(A), for each fiscal year 
     beginning on or after October 1, 1998, shall be increased by 
     a factor reflecting the sum of the applicable incentive 
     adjustments (if any) determined in accordance with 
     regulations under this section with respect to Statewide 
     paternity establishment and to overall performance in child 
     support enforcement.
       ``(2) Standards.--
       ``(A) In general.--The Secretary shall specify in 
     regulations--
       ``(i) the levels of accomplishment, and rates of 
     improvement as alternatives to such levels, which States must 
     attain to qualify for incentive adjustments under this 
     section; and
       ``(ii) the amounts of incentive adjustment that shall be 
     awarded to States achieving specified accomplishment or 
     improvement levels, which amounts shall be graduated, ranging 
     up to--

       ``(I) 5 percentage points, in connection with Statewide 
     paternity establishment; and
       ``(II) 10 percentage points, in connection with overall 
     performance in child support enforcement.
       ``(B) Limitation.--In setting performance standards 
     pursuant to subparagraph (A)(i) and adjustment amounts 
     pursuant to subparagraph (A)(ii), the Secretary shall ensure 
     that the aggregate number of percentage point increases as 
     incentive adjustments to all States do not exceed such 
     aggregate increases as assumed by the Secretary in estimates 
     of the cost of this section as of June 1995, unless the 
     aggregate performance of all States exceeds the projected 
     aggregate performance of all States in such cost estimates.
       ``(3) Determination of incentive adjustment.--The Secretary 
     shall determine the amount (if any) of incentive adjustment 
     due each State on the basis of the data submitted by the 
     State pursuant to section 454(15)(B) concerning the levels of 
     accomplishment (and rates of improvement) with respect to 
     performance indicators specified by the Secretary pursuant to 
     this section.
       ``(4) Fiscal year subject to incentive adjustment.--The 
     total percentage point increase determined pursuant to this 
     section with respect to a State program in a fiscal year 
     shall apply as an adjustment to the applicable percent under 
     section 455(a)(2) for payments to such State for the 
     succeeding fiscal year.
       ``(5) Recycling of incentive adjustment.--A State shall 
     expend in the State program under this part all funds paid to 
     the State by the Federal Government as a result of an 
     incentive adjustment under this section.
       ``(b) Meaning of Terms.--
       ``(1) Statewide paternity establishment percentage.--
       ``(A) In general.--For purposes of this section, the term 
     `Statewide paternity establishment percentage' means, with 
     respect to a fiscal year, the ratio (expressed as a 
     percentage) of--
       ``(i) the total number of out-of-wedlock children in the 
     State under 1 year of age for whom paternity is established 
     or acknowledged during the fiscal year, to
       ``(ii) the total number of children requiring paternity 
     establishment born in the State during such fiscal year.
       ``(B) Alternative measurement.--The Secretary shall develop 
     an alternate method of measurement for the Statewide 
     paternity establishment percentage for any State that does 
     not record the out-of-wedlock status of children on birth 
     certificates.
       ``(2) Overall performance in child support enforcement.--
     The term `overall performance in child support enforcement' 
     means a measure or measures of the effectiveness of the State 
     agency in a fiscal year which takes into account factors 
     including--
       ``(A) the percentage of cases requiring a child support 
     order in which such an order was established;
       ``(B) the percentage of cases in which child support is 
     being paid;
       ``(C) the ratio of child support collected to child support 
     due; and
       ``(D) the cost-effectiveness of the State program, as 
     determined in accordance with standards established by the 
     Secretary in regulations.''.
       (b) Adjustment of Payments Under Part D of Title IV.--
     Section 455(a)(2) (42 U.S.C. 655(a)(2)), as amended by 
     section 511(a), is amended--
       (1) by striking the period at the end of subparagraph (C) 
     and inserting a comma; and
       (2) by adding after and below subparagraph (C), flush with 
     the left margin of the paragraph, the following:

     ``increased by the incentive adjustment factor (if any) 
     determined by the Secretary pursuant to section 458.''.
       (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 
     654(22)) is amended--
       (1) by striking ``incentive payments'' the first place it 
     appears and inserting ``incentive adjustments''; and
       (2) by striking ``any such incentive payments made to the 
     State for such period'' and inserting ``any increases in 
     Federal payments to the State resulting from such incentive 
     adjustments''.
       (d) Calculation of IV-D Paternity Establishment 
     Percentage.--
       (1) Overall performance.--Section 452(g)(1) (42 U.S.C. 
     652(g)(1)) is amended in the matter preceding subparagraph 
     (A) by inserting ``its overall performance in child support 
     enforcement is satisfactory (as defined in section 458(b) and 
     regulations of the Secretary), and'' after ``1994,''.
       (2) Definition.--Section 452(g)(2)(A) (42 U.S.C. 
     652(g)(2)(A)) is amended, in the matter preceding clause 
     (i)--
       (A) by striking ``paternity establishment percentage'' and 
     inserting ``IV-D paternity establishment percentage''; and
       (B) by striking ``(or all States, as the case may be)''.
       (3) Modification of requirements.--Section 452(g)(3) (42 
     U.S.C. 652(g)(3)) is amended--
       (A) by striking subparagraph (A) and redesignating 
     subparagraphs (B) and (C) as subparagraphs (A) and (B), 
     respectively;
       (B) in subparagraph (A), as redesignated, by striking ``the 
     percentage of children born out-of-wedlock in the State'' and 
     inserting ``the percentage of children in the State who are 
     born out of wedlock or for whom support has not been 
     established''; and
       (C) in subparagraph (B), as redesignated--
       (i) by inserting ``and overall performance in child support 
     enforcement'' after ``paternity establishment percentages''; 
     and
       (ii) by inserting ``and securing support'' before the 
     period.
       (e) Reduction of Payments Under Part D of Title IV.--
       (1) New requirements.--Section 455 (42 U.S.C. 655) is 
     amended--
       (A) by redesignating subsection (e) as subsection (f); and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(e)(1) Notwithstanding any other provision of law, if the 
     Secretary finds, with respect to a State program under this 
     part in a fiscal year beginning on or after October 1, 1997--
       ``(A)(i) on the basis of data submitted by a State pursuant 
     to section 454(15)(B), that the State program in such fiscal 
     year failed to achieve the IV-D paternity establishment 
     percentage (as defined in section 452(g)(2)(A)) or the 
     appropriate level of overall performance in child support 
     enforcement (as defined in section 458(b)(2)), or to meet 
     other performance measures that may be established by the 
     Secretary, or
       ``(ii) on the basis of an audit or audits of such State 
     data conducted pursuant to section 452(a)(4)(C), that the 
     State data submitted pursuant to section 454(15)(B) is 
     incomplete or unreliable; and
       ``(B) that, with respect to the succeeding fiscal year--
       ``(i) the State failed to take sufficient corrective action 
     to achieve the appropriate performance levels as described in 
     subparagraph (A)(i) of this paragraph, or
       ``(ii) the data submitted by the State pursuant to section 
     454(15)(B) is incomplete or unreliable,

     the amounts otherwise payable to the State under this part 
     for quarters following the end of such succeeding fiscal 
     year, prior to quarters following the end of the first 
     quarter throughout which the State program is in compliance 
     with such performance requirement, shall be reduced by the 
     percentage specified in paragraph (2).
       ``(2) The reductions required under paragraph (1) shall 
     be--
       ``(A) not less than 3 nor more than 5 percent, or
       ``(B) not less than 5 nor more than 7 percent, if the 
     finding is the second consecutive finding made pursuant to 
     paragraph (1), or
       ``(C) not less than 7 nor more than 10 percent, if the 
     finding is the third or a subsequent consecutive such 
     finding.
       ``(3) For purposes of this subsection, section 406(b), and 
     section 452(a)(4), a State which is determined as a result of 
     an audit to have submitted incomplete or unreliable data 
     pursuant to section 454(15)(B), shall be determined to have 
     submitted adequate data if the Secretary determines that the 
     extent of the incompleteness or unreliability of the data is 
     of a technical nature which does not adversely affect the 
     determination of the level of the State's performance.''.
       (2) Conforming amendments.--Subsections (d)(3)(A), (g)(1), 
     and (g)(3)(A) of section 452 (42 U.S.C. 652) are each amended 
     by striking ``403(h)'' and inserting ``455(e)''.
       (f) Effective Dates.--
       (1) Incentive adjustments.--
       (A) In general.--The amendments made by subsections (a), 
     (b), and (c) shall become effective on October 1, 1997, 
     except to the extent provided in subparagraph (B).
       (B) Exception.--Section 458 of the Social Security Act, as 
     in effect prior to the enactment of this section, shall be 
     effective for purposes of incentive payments to States for 
     fiscal years prior to fiscal year 1999.
       (2) Penalty reductions.--
       (A) In general.--The amendments made by subsection (d) 
     shall become effective with respect to calendar quarters 
     beginning on and after the date of the enactment of this Act.
       (B) Reductions.--The amendments made by subsection (e) 
     shall become effective with respect to calendar quarters 
     beginning on and after the date 1 which is year after the 
     date of the enactment of this Act.
     
[[Page S 11911]]


     SEC. 513. FEDERAL AND STATE REVIEWS AND AUDITS.

       (a) State Agency Activities.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) in paragraph (14)--
       (A) by striking ``(14)'' and inserting ``(14)(A)''; and
       (B) by inserting after the semicolon ``and'';
       (2) by redesignating paragraph (15) as subparagraph (B) of 
     paragraph (14); and
       (3) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) provide for--
       ``(A) a process for annual reviews of and reports to the 
     Secretary on the State program under this part--
       ``(i) which shall include such information as may be 
     necessary to measure State compliance with Federal 
     requirements for expedited procedures and timely case 
     processing, using such standards and procedures as are 
     required by the Secretary; and
       ``(ii) under which the State agency will determine the 
     extent to which such program is in conformity with applicable 
     requirements with respect to the operation of State programs 
     under this part (including the status of complaints filed 
     under the procedure required under paragraph (12)(B)); and
       ``(B) a process of extracting from the State automated data 
     processing system and transmitting to the Secretary data and 
     calculations concerning the levels of accomplishment (and 
     rates of improvement) with respect to applicable performance 
     indicators (including IV-D paternity establishment 
     percentages and overall performance in child support 
     enforcement) to the extent necessary for purposes of sections 
     452(g) and 458.''.
       (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 
     652(a)(4)) is amended to read as follows:
       ``(4)(A) review data and calculations transmitted by State 
     agencies pursuant to section 454(15)(B) on State program 
     accomplishments with respect to performance indicators for 
     purposes of section 452(g) and 458, and determine the amount 
     (if any) of penalty reductions pursuant to section 455(e) to 
     be applied to the State;
       ``(B) review annual reports by State agencies pursuant to 
     section 454(15)(A) on State program conformity with Federal 
     requirements; evaluate any elements of a State program in 
     which significant deficiencies are indicated by such report 
     on the status of complaints under the State procedure under 
     section 454(12)(B); and, as appropriate, provide to the State 
     agency comments, recommendations for additional or 
     alternative corrective actions, and technical assistance; and
       ``(C) conduct audits, in accordance with the government 
     auditing standards of the United States Comptroller General--
       ``(i) at least once every 3 years (or more frequently, in 
     the case of a State which fails to meet requirements of this 
     part, or of regulations implementing such requirements, 
     concerning performance standards and reliability of program 
     data) to assess the completeness, reliability, and security 
     of the data, and the accuracy of the reporting systems, used 
     for the calculations of performance indicators specified in 
     subsection (g) and section 458;
       ``(ii) of the adequacy of financial management of the State 
     program, including assessments of--
       ``(I) whether Federal and other funds made available to 
     carry out the State program under this part are being 
     appropriately expended, and are properly and fully accounted 
     for; and
       ``(II) whether collections and disbursements of support 
     payments and program income are carried out correctly and are 
     properly and fully accounted for; and
       ``(iii) for such other purposes as the Secretary may find 
     necessary;''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to calendar quarters 
     beginning on or after the date which is 1 year after the 
     enactment of this section.

     SEC. 514. REQUIRED REPORTING PROCEDURES.

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

     SEC. 515. AUTOMATED DATA PROCESSING REQUIREMENTS.

       (a) Revised Requirements.--
       (1) State plan.--Section 454(16) (42 U.S.C. 654(16)) is 
     amended--
       (A) by striking ``, at the option of the State,'';
       (B) by inserting ``and operation by the State agency'' 
     after ``for the establishment'';
       (C) by inserting ``meeting the requirements of section 
     454A'' after ``information retrieval system'';
       (D) by striking ``in the State and localities thereof, so 
     as (A)'' and inserting ``so as'';
       (E) by striking ``(i)''; and
       (F) by striking ``(including, but not limited to,'' and all 
     that follows and to the semicolon.
       (2) Automated data processing.--Part D of title IV (42 
     U.S.C. 651-669) is amended by inserting after section 454 the 
     following new section:


                      ``automated data processing

       ``Sec. 454A. (a) In General.--In order to meet the 
     requirements of this section, for purposes of the requirement 
     of section 454(16), a State agency shall have in operation a 
     single statewide automated data processing and information 
     retrieval system which has the capability to perform the 
     tasks specified in this section, and performs such tasks with 
     the frequency and in the manner specified in this part or in 
     regulations or guidelines of the Secretary.
       ``(b) Program Management.--The automated system required 
     under this section shall perform such functions as the 
     Secretary may specify relating to management of the program 
     under this part, including--
       ``(1) controlling and accounting for use of Federal, State, 
     and local funds to carry out such program; and
       ``(2) maintaining the data necessary to meet Federal 
     reporting requirements on a timely basis.
       ``(c) Calculation of Performance Indicators.--In order to 
     enable the Secretary to determine the incentive and penalty 
     adjustments required by sections 452(g) and 458, the State 
     agency shall--
       ``(1) use the automated system--
       ``(A) to maintain the requisite data on State performance 
     with respect to paternity establishment and child support 
     enforcement in the State; and
       ``(B) to calculate the IV-D paternity establishment 
     percentage and overall performance in child support 
     enforcement for the State for each fiscal year; and
       ``(2) have in place systems controls to ensure the 
     completeness, and reliability of, and ready access to, the 
     data described in paragraph (1)(A), and the accuracy of the 
     calculations described in paragraph (1)(B).
       ``(d) Information Integrity and Security.--The State agency 
     shall have in effect safeguards on the integrity, accuracy, 
     and completeness of, access to, and use of data in the 
     automated system required under this section, which shall 
     include the following (in addition to such other safeguards 
     as the Secretary specifies in regulations):
       ``(1) Policies restricting access.--Written policies 
     concerning access to data by State agency personnel, and 
     sharing of data with other persons, which--
       ``(A) permit access to and use of data only to the extent 
     necessary to carry out program responsibilities;
       ``(B) specify the data which may be used for particular 
     program purposes, and the personnel permitted access to such 
     data; and
       ``(C) ensure that data obtained or disclosed for a limited 
     program purpose is not used or redisclosed for another, 
     impermissible purpose.
       ``(2) Systems controls.--Systems controls (such as 
     passwords or blocking of fields) to ensure strict adherence 
     to the policies specified under paragraph (1).
       ``(3) Monitoring of access.--Routine monitoring of access 
     to and use of the automated system, through methods such as 
     audit trails and feedback mechanisms, to guard against and 
     promptly identify unauthorized access or use.
       ``(4) Training and information.--The State agency shall 
     have in effect procedures to ensure that all personnel 
     (including State and local agency staff and contractors) who 
     may have access to or be required to use sensitive or 
     confidential program data are fully informed of applicable 
     requirements and penalties, and are adequately trained in 
     security procedures.
       ``(5) Penalties.--The State agency shall have in effect 
     administrative penalties (up to and including dismissal from 
     employment) for unauthorized access to, or disclosure or use 
     of, confidential data.''.
       (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by 
     adding at the end the following new subsection:
       ``(j) The Secretary shall prescribe final regulations for 
     implementation of the requirements of section 454A not later 
     than 2 years after the date of the enactment of this 
     subsection.''.
       (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
     654(24)), as amended by sections 504(a)(2) and 514(b)(1), is 
     amended to read as follows:
       ``(24) provide that the State will have in effect an 
     automated data processing and information retrieval system--
       ``(A) by October 1, 1996, meeting all requirements of this 
     part which were enacted on or before the date of the 
     enactment of the Family Support Act of 1988; and
       ``(B) by October 1, 1999, meeting all requirements of this 
     part enacted on or before the date of the enactment of the 
     Interstate Child Support Responsibility Act of 1995 (but this 
     provision shall not be construed to alter earlier deadlines 
     specified for elements of such system), except that such 
     deadline shall be extended by 1 day for each day (if any) by 
     which the Secretary fails to meet the deadline imposed by 
     section 452(j);''.
       (b) Special Federal Matching Rate for Development Costs of 
     Automated Systems.--

[[Page S 11912]]

       (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
     amended--
       (A) in paragraph (1)(B)--
       (i) by striking ``90 percent'' and inserting ``the percent 
     specified in paragraph (3)'';
       (ii) by striking ``so much of''; and
       (iii) by striking ``which the Secretary'' and all that 
     follows through ``thereof''; and
       (B) by adding at the end the following new paragraph:
       ``(3)(A) The Secretary shall pay to each State, for each 
     quarter in fiscal year 1996, 90 percent of so much of State 
     expenditures described in paragraph (1)(B) as the Secretary 
     finds are for a system meeting the requirements specified in 
     section 454(16), or meeting such requirements without regard 
     to subparagraph (D) thereof, but limited to the amount 
     approved for the State in the advance planning document of 
     such State submitted before May 1, 1995.
       ``(B)(i) The Secretary shall pay to each State, for each 
     quarter in fiscal years 1997 through 2001, the percentage 
     specified in clause (ii) of so much of State expenditures 
     described in paragraph (1)(B) as the Secretary finds are for 
     a system meeting the requirements specified in section 
     454(16) and 454A.
       ``(ii) The percentage specified in this clause, for 
     purposes of clause (i), is the higher of--
       ``(I) 80 percent, or
       ``(II) the percentage otherwise applicable to Federal 
     payments to the State under paragraph (1)(A) (as adjusted 
     pursuant to section 458).''.
       (2) Temporary limitation on payments under special federal 
     matching rate.--
       (A) In general.--The Secretary of Health and Human Services 
     may not pay more than $260,000,000 in the aggregate under 
     section 455(a)(3) of the Social Security Act for fiscal years 
     1996, 1997, 1998, 1999, and 2000.
       (B) Allocation of limitation among states.--The total 
     amount payable to a State under section 455(a)(3) of such Act 
     for fiscal years 1996, 1997, 1998, 1999, and 2000 shall not 
     exceed the limitation determined for the State by the 
     Secretary of Health and Human Services in regulations.
       (C) Allocation formula.--The regulations referred to in 
     subparagraph (B) shall prescribe a formula for allocating the 
     amount specified in subparagraph (A) among States with plans 
     approved under part D of title IV of the Social Security Act, 
     which shall take into account--
       (i) the relative size of State caseloads under such part; 
     and
       (ii) the level of automation needed to meet the automated 
     data processing requirements of such part.
       (c) Conforming Amendment.--Section 123(c) of the Family 
     Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is 
     repealed.

     SEC. 516. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

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

     SEC. 517. FUNDING FOR ASSISTANCE TO STATE PROGRAMS.

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

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

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

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

       (2) Certain data.--Section 452(a)(10)(C) (42 U.S.C. 
     652(a)(10)(C)) is amended--
       (A) in the matter preceding clause (i), by striking ``with 
     the data required under each clause being separately stated 
     for cases'' and all that follows through ``part:'' and 
     inserting ``separately stated for cases where the family of 
     the child is receiving temporary employment assistance (or 
     foster care maintenance payments under part E), or formerly 
     received such assistance or payments and the State is 
     continuing to collect support assigned to it under section 
     402(c), 471(a)(17), or 1912, and all other cases under this 
     part--'';
       (B) in each of clauses (i) and (ii), by striking ``, and 
     the total amount of such obligations'';
       (C) in clause (iii), by striking ``described in'' and all 
     that follows through the semicolon and inserting ``in which 
     support was collected during the fiscal year;'';
       (D) by striking clause (iv); and
       (E) by redesignating clause (v) as clause (vii), and 
     inserting after clause (iii) the following new clauses:
       ``(iv) the total amount of support collected during such 
     fiscal year and distributed as current support;
       ``(v) the total amount of support collected during such 
     fiscal year and distributed as arrearages;
       ``(vi) the total amount of support due and unpaid for all 
     fiscal years; and''.
       (3) Use of federal courts.--Section 452(a)(10)(G) (42 
     U.S.C. 652(a)(10)(G)) is amended by striking ``on the use of 
     Federal courts and''.
       (4) Additional information not necessary.--Section 
     452(a)(10) (42 U.S.C. 652(a)(10)) is amended by striking all 
     that follows subparagraph (I).
       (b) Data Collection and Reporting.--Section 469 (42 U.S.C. 
     669) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) The Secretary shall collect and maintain, on a fiscal 
     year basis, up-to-date statistics, by State, with respect to 
     services to establish paternity and services to establish 
     child support obligations, the data specified in subsection 
     (b), separately stated, in the case of each such service, 
     with respect to--
       ``(1) families (or needy children) receiving assistance 
     under plans approved under part A (or E); and
       ``(2) families not receiving such assistance.
       ``(b) The data referred to in subsection (a) are--
       ``(1) the number of cases in the caseload of the State 
     agency administering the plan under this part in which such 
     service is needed; and
       ``(2) the number of such cases in which the service has 
     been provided.''; and
       (2) in subsection (c), by striking ``(a)(2)'' and inserting 
     ``(b)(2)''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to fiscal year 1996 and 
     succeeding fiscal years.

                   PART III--LOCATE AND CASE TRACKING

     SEC. 521. CENTRAL STATE AND CASE REGISTRY.

       Section 454A, as added by section 515(a)(2), is amended by 
     adding at the end the following new subsections:
       ``(e) Central Case Registry.--
       ``(1) In general.--The automated system required under this 
     section shall perform the functions, in accordance with the 
     provisions of this subsection, of a single central registry 
     containing records with respect to each case in which 
     services are being provided by the State agency (including, 
     on and after October 1, 1998, each order specified in section 
     466(a)(12)), using such standardized data elements (such as 
     names, social security numbers or other uniform 
     identification numbers, dates of birth, and case 
     identification numbers), and containing such other 
     information (such as information on case status) as the 
     Secretary may require.
       ``(2) Payment Records.--Each case record in the central 
     registry shall include a record of--
       ``(A) the amount of monthly (or other periodic) support 
     owed under the support order, 

[[Page S 11913]]
     and other amounts due or overdue (including arrearages, interest or 
     late payment penalties, and fees);
       ``(B) all child support and related amounts collected 
     (including such amounts as fees, late payment penalties, and 
     interest on arrearages);
       ``(C) the distribution of such amounts collected; and
       ``(D) the birth date of the child for whom the child 
     support order is entered.
       ``(3) Updating and monitoring.--The State agency shall 
     promptly establish and maintain, and regularly monitor, case 
     records in the registry required by this subsection, on the 
     basis of--
       ``(A) information on administrative actions and 
     administrative and judicial proceedings and orders relating 
     to paternity and support;
       ``(B) information obtained from matches with Federal, 
     State, or local data sources;
       ``(C) information on support collections and distributions; 
     and
       ``(D) any other relevant information.
       ``(f) Data Matches and Other Disclosures of Information.--
     The automated system required under this section shall have 
     the capacity, and be used by the State agency, to extract 
     data at such times, and in such standardized format or 
     formats, as may be required by the Secretary, and to share 
     and match data with, and receive data from, other data bases 
     and data matching services, in order to obtain (or provide) 
     information necessary to enable the State agency (or 
     Secretary or other State or Federal agencies) to carry out 
     responsibilities under this part. Data matching activities of 
     the State agency shall include at least the following:
       ``(1) Data bank of child support orders.--Furnishing to the 
     Data Bank of Child Support Orders established under section 
     453(h) (and updating as necessary, with information, 
     including notice of expiration of orders) minimal information 
     specified by the Secretary on each child support case in the 
     central case registry.
       ``(2) Federal parent locator service.--Exchanging data with 
     the Federal Parent Locator Service for the purposes specified 
     in section 453.
       ``(3) TEA and medicaid agencies.--Exchanging data with 
     State agencies (of the State and of other States) 
     administering the programs under part A and title XIX, as 
     necessary for the performance of State agency 
     responsibilities under this part and under such programs.
       ``(4) Intrastate and interstate data matches.--Exchanging 
     data with other agencies of the State, agencies of other 
     States, and interstate information networks, as necessary and 
     appropriate to carry out (or assist other States to carry 
     out) the purposes of this part.''.
     SEC. 522. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT 
                   PAYMENTS.

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

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

     SEC. 523. AMENDMENTS CONCERNING INCOME WITHHOLDING.

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

     SEC. 524. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

[[Page S 11914]]
     the entities established under section 453) have access to information 
     in such system or network to the same extent as any other 
     user of such system or network.''.

     SEC. 525. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

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


[[Page S 11915]]
     reimburse the costs incurred by the Secretary in furnishing such data 
     or information, at rates which the Secretary determines to be 
     reasonable (which rates shall include payment for the costs 
     of obtaining, verifying, maintaining, and matching such data 
     or information).
       ``(l) Restriction on Disclosure and Use.--Data in the 
     Federal Parent Locator Service, and information resulting 
     from matches using such data, shall not be used or disclosed 
     except as specifically provided in this section.
       ``(m) Retention of Data.--Data in the Federal Parent 
     Locator Service, and data resulting from matches performed 
     pursuant to this section, shall be retained for such period 
     (determined by the Secretary) as appropriate for the data 
     uses specified in this section.
       ``(n) Information Integrity and Security.--The Secretary 
     shall establish and implement safeguards with respect to the 
     entities established under this section designed to--
       ``(1) ensure the accuracy and completeness of information 
     in the Federal Parent Locator Service; and
       ``(2) restrict access to confidential information in the 
     Federal Parent Locator Service to authorized persons, and 
     restrict use of such information to authorized purposes.
       ``(o) Limit on Liability.--The Secretary shall not be 
     liable to either a State or an individual for inaccurate 
     information provided to a component of the Federal Parent 
     Locator Service and disclosed by the Secretary in accordance 
     with this section.''.
       (g) Conforming Amendments.--
       (1) To part d of title iv of the social security act.--
     Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
     follows:
       ``(B) the Federal Parent Locator Service established under 
     section 453;''.
       (2) To federal unemployment tax act.--Section 3304(16) of 
     the Internal Revenue Code of 1986 (relating to approval of 
     State laws) is amended--
       (A) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears and inserting ``Secretary of 
     Health and Human Services'';
       (B) in subparagraph (B), by striking ``such information'' 
     and all that follows through the semicolon and inserting 
     ``information furnished under subparagraph (A) or (B) is used 
     only for the purposes authorized under such subparagraph;'';
       (C) by striking ``and'' at the end of subparagraph (A);
       (D) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (E) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) wage and unemployment compensation information 
     contained in the records of such agency shall be furnished to 
     the Secretary of Health and Human Services (in accordance 
     with regulations promulgated by such Secretary) as necessary 
     for the purposes of the National Directory of New Hires 
     established under section 453(i) of the Social Security Act, 
     and''.
       (3) To state grant program under title iii of the social 
     security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (8);
       (B) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (C) by adding after paragraph (9) the following new 
     paragraph:
       ``(10) The making of quarterly electronic reports, at such 
     dates, in such format, and containing such information, as 
     required by the Secretary under section 453(i)(3), and 
     compliance with such provisions as such Secretary may find 
     necessary to ensure the correctness and verification of such 
     reports.''.

     SEC. 526. STATE DIRECTORY OF NEW HIRES.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 501(b)(4), 504(a), 514(b), and 522(a) 
     of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (27);
       (2) by striking the period at the end of paragraph (28) and 
     inserting ``; and''; and
       (3) by adding after paragraph (28) the following new 
     paragraph:
       ``(29) provide that, on and after October 1, 1997, the 
     State will operate a State Directory of New Hires in 
     accordance with section 453A.''.
       (b) State Directory of New Hires.--Part D of title IV (42 
     U.S.C. 651-669) is amended by inserting after section 453 the 
     following new section:

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

       ``(a) Establishment.--
       ``(1) In general.--Not later than October 1, 1997, each 
     State shall establish an automated directory (to be known as 
     the `State Directory of New Hires') which shall contain 
     information supplied in accordance with subsection (b) by 
     employers on each newly hired employee.
       ``(2) Definitions.--As used in this section:
       ``(A) Employee.--The term `employee'--
       ``(i) means an individual who is an employee within the 
     meaning of chapter 24 of the Internal Revenue Code of 1986; 
     and
       ``(ii) does not include an employee of a Federal or State 
     agency performing intelligence or counterintelligence 
     functions, if the head of such agency has determined that 
     reporting pursuant to paragraph (1) with respect to the 
     employee could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission.
       ``(B) Employer.--The term `employer' includes--
       ``(i) any governmental entity, and
       ``(ii) any labor organization.
       ``(C) Labor organization.--The term `labor organization' 
     shall have the meaning given such term in section 2(5) of the 
     National Labor Relations Act, and includes any entity (also 
     known as a `hiring hall') which is used by the organization 
     and an employer to carry out requirements described in 
     section 8(f)(3) of such Act of an agreement between the 
     organization and the employer.
       ``(b) Employer Information.--
       ``(1) Reporting requirement.--Each employer shall furnish 
     to the Directory of New Hires of the State in which a newly 
     hired employee works, a report that contains the name, 
     address, and social security number of the employee, and the 
     name of, and identifying number assigned under section 6109 
     of the Internal Revenue Code of 1986 to, the employer.
       ``(2) Timing of report.--The report required by paragraph 
     (1) with respect to an employee shall be made not later than 
     the later of--
       ``(A) 15 days after the date the employer hires the 
     employee; or
       ``(B) in the case of an employer that reports by magnetic 
     or electronic means, the 1st business day of the week 
     following the date on which the employee 1st receives wages 
     or other compensation from the employer.
       ``(c) Reporting Format and Method.--Each report required by 
     subsection (b) shall be made on a W-4 form or the equivalent, 
     and may be transmitted by 1st class mail, magnetically, or 
     electronically.
       ``(d) Civil Money Penalties on Noncomplying Employers.--
       ``(1) In general.--An employer that fails to comply with 
     subsection (b) with respect to an employee shall be subject 
     to a civil money penalty of $250.
       ``(2) Applicability of section 1128.--Section 1128 (other 
     than subsections (a) and (b) of such section) shall apply to 
     a civil money penalty under paragraph (1) of this subsection 
     in the same manner as such section applies to a civil money 
     penalty or proceeding under section 1128A(a).
       ``(e) Entry of Employer Information.--Information shall be 
     entered into the data base maintained by the State Directory 
     of New Hires within 5 business days of receipt from an 
     employer pursuant to subsection (b).
       ``(f) Information Comparisons.--
       ``(1) In general.--Not later than October 1, 1998, an 
     agency designated by the State shall, directly or by 
     contract, conduct automated comparisons of the social 
     security numbers reported by employers pursuant to subsection 
     (b) and the social security numbers appearing in the records 
     of the State case registry for cases being enforced under the 
     State plan.
       ``(2) Notice of match.--When an information comparison 
     conducted under paragraph (1) reveals a match with respect to 
     the social security number of an individual required to 
     provide support under a support order, the State Directory of 
     New Hires shall provide the agency administering the State 
     plan approved under this part of the appropriate State with 
     the name, address, and social security number of the employee 
     to whom the social security number is assigned, and the name 
     of, and identifying number assigned under section 6109 of the 
     Internal Revenue Code of 1986 to, the employer.
       ``(g) Transmission of Information.--
       ``(1) Transmission of wage withholding notices to 
     employers.--Within 5 business days after the date information 
     regarding a newly hired employee is entered into the State 
     Directory of New Hires, the State agency enforcing the 
     employee's child support obligation shall transmit a notice 
     to the employer of the employee directing the employer to 
     withhold from the wages of the employee an amount equal to 
     the monthly (or other periodic) child support obligation of 
     the employee, unless the employee's wages are not subject to 
     withholding pursuant to section 466(b)(3).
       ``(2) Transmissions to the national directory of new 
     hires.--
       ``(A) New hire information.--Within 5 business days after 
     the date information regarding a newly hired employee is 
     entered into the State Directory of New Hires, the State 
     Directory of New Hires shall furnish the information to the 
     National Directory of New Hires.
       ``(B) Wage and unemployment compensation information.--The 
     State Directory of New Hires shall, on a quarterly basis, 
     furnish to the National Directory of New Hires extracts of 
     the reports required under section 303(a)(6) to be made to 
     the Secretary of Labor concerning the wages and unemployment 
     compensation paid to individuals, by such dates, in such 
     format, and containing such information as the Secretary of 
     Health and Human Services shall specify in regulations.
       ``(3) Business day defined.--As used in this subsection, 
     the term `business day' means a day on which State offices 
     are open for regular business.
       ``(h) Other Uses of New Hire Information.--
       ``(1) Location of child support obligors.--The agency 
     administering the State plan approved under this part shall 
     use information received pursuant to subsection (f)(2) to 
     locate individuals for purposes of establishing paternity and 
     establishing, modifying, and enforcing child support 
     obligations.
       ``(2) Verification of eligibility for certain programs.--A 
     State agency responsible 

[[Page S 11916]]
     for administering a program specified in section 1137(b) shall have 
     access to information reported by employers pursuant to 
     subsection (b) of this section for purposes of verifying 
     eligibility for the program.
       ``(3) Administration of employment security and workers' 
     compensation.--State agencies operating employment security 
     and workers' compensation programs shall have access to 
     information reported by employers pursuant to subsection (b) 
     for the purposes of administering such programs.''.

     SEC. 527. USE OF SOCIAL SECURITY NUMBERS.

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

           PART IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

     SEC. 531. ADOPTION OF UNIFORM STATE LAWS.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     501(a) and 527(a), is amended by adding at the end the 
     following new paragraph:
       ``(14)(A) Procedures under which the State adopts in its 
     entirety (with the modifications and additions specified in 
     this paragraph) not later than January 1, 1997, and uses on 
     and after such date, the Uniform Interstate Family Support 
     Act, as approved by the National Conference of Commissioners 
     on Uniform State Laws in August 1992.
       ``(B) The State law adopted pursuant to subparagraph (A) 
     shall be applied to any case--
       ``(i) involving an order established or modified in one 
     State and for which a subsequent modification is sought in 
     another State; or
       ``(ii) in which interstate activity is required to enforce 
     an order.
       ``(C) The State law adopted pursuant to subparagraph (A) of 
     this paragraph may, in lieu of section 501 of the Uniform 
     Interstate Family Support Act described in such subparagraph 
     (A), contain a provision which allows the State to collect 
     and disburse income withholding for multiple income 
     withholding orders and interstate withholding orders in the 
     centralized collections unit described in section 454B.
       ``(D) The State law adopted pursuant to subparagraph (A) of 
     this paragraph shall contain the following provision in lieu 
     of section 611(a)(1) of the Uniform Interstate Family Support 
     Act described in such subparagraph (A):
       `` `(1) the following requirements are met:
       `` `(i) the child, the individual obligee, and the 
     obligor--
       `` `(I) do not reside in the issuing State; and
       `` `(II) either reside in this State or are subject to the 
     jurisdiction of this State pursuant to section 201; and
       `` `(ii) in any case where another State is exercising or 
     seeks to exercise jurisdiction to modify the order, the 
     conditions of section 204 are met to the same extent as 
     required for proceedings to establish orders; or'.
       ``(E) The State law adopted pursuant to subparagraph (A) 
     shall recognize as valid, for purposes of any proceeding 
     subject to such State law, service of process upon persons in 
     the State (and proof of such service) by any means acceptable 
     in another State which is the initiating or responding State 
     in such proceeding.''.

     SEC. 532. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD 
                   SUPPORT ORDERS.

       Section 1738B of title 28, United States Code, is amended--
       (1) in subsection (a)(2), by striking ``subsection (e)'' 
     and inserting ``subsections (e), (f), and (i)'';
       (2) in subsection (b), by inserting after the first 
     undesignated paragraph the following:
       `` `child's home State' means the State in which a child 
     lived with a parent or a person acting as parent for at least 
     6 consecutive months immediately preceding the time of filing 
     of a petition or comparable pleading for support and, if a 
     child is less than 6 months old, the State in which the child 
     lived from birth with any of them. A period of temporary 
     absence of any of them is counted as part of the 6-month 
     period.'';
       (3) in subsection (c), by inserting ``by a court of a 
     State'' before ``is made'';
       (4) in subsection (c)(1), by inserting ``and subsections 
     (e), (f), and (g)'' after ``located'';
       (5) in subsection (d)--
       (A) by inserting ``individual'' before ``contestant''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)'';
       (6) in subsection (e), by striking ``make a modification of 
     a child support order with respect to a child that is made'' 
     and inserting ``modify a child support order issued'';
       (7) in subsection (e)(1), by inserting ``pursuant to 
     subsection (i)'' before the semicolon;
       (8) in subsection (e)(2)--
       (A) by inserting ``individual'' before ``contestant'' each 
     place such term appears; and
       (B) by striking ``to that court's making the modification 
     and assuming'' and inserting ``with the State of continuing, 
     exclusive jurisdiction for a court of another State to modify 
     the order and assume'';
       (9) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (10) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Recognition of Child Support Orders.--If 1 or more 
     child support orders have been issued in this or another 
     State with regard to an obligor and a child, a court shall 
     apply the following rules in determining which order to 
     recognize for purposes of continuing, exclusive jurisdiction 
     and enforcement:
       ``(1) If only 1 court has issued a child support order, the 
     order of that court must be recognized.
       ``(2) If 2 or more courts have issued child support orders 
     for the same obligor and child, and only 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, the order of that court must be recognized.
       ``(3) If 2 or more courts have issued child support orders 
     for the same obligor and child, and only 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, an order issued by a court in the current home State 
     of the child must be recognized, but if an order has not been 
     issued in the current home State of the child, the order most 
     recently issued must be recognized.
       ``(4) If 2 or more courts have issued child support orders 
     for the same obligor and child, and none of the courts would 
     have continuing, exclusive jurisdiction under this section, a 
     court may issue a child support order, which must be 
     recognized.
       ``(5) The court that has issued an order recognized under 
     this subsection is the court having continuing, exclusive 
     jurisdiction.'';
       (11) in subsection (g) (as so redesignated)--
       (A) by striking ``Prior'' and inserting ``Modified''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)''; and
       (12) in subsection (h) (as so redesignated)--
       (A) in paragraph (2), by inserting ``including the duration 
     of current payments and other obligations of support'' before 
     the comma; and
       (B) in paragraph (3), by inserting ``arrears under'' after 
     ``enforce''.

     SEC. 533. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
     as amended by section 523(b), is amended--
       (1) in subsection (a)(2), in the first sentence, to read as 
     follows: ``Expedited administrative and judicial procedures 
     (including the procedures specified in subsection (c)) for 
     establishing paternity and for establishing, modifying, and 
     enforcing support obligations.''; and
       (2) by adding after subsection (b) the following new 
     subsection:
       ``(c) The procedures specified in this subsection are the 
     following:
       ``(1) Procedures which give the State agency the authority 
     (and recognize and enforce the authority of State agencies of 
     other States), without the necessity of obtaining an order 
     from any other judicial or administrative tribunal (but 
     subject to due process safeguards, including (as appropriate) 
     requirements for notice, opportunity to contest the action, 
     and opportunity for an appeal on the record to an independent 
     administrative or judicial tribunal), to take the following 
     actions relating to establishment or enforcement of orders:
       ``(A) To order genetic testing for the purpose of paternity 
     establishment as provided in section 466(a)(5).
       ``(B) To enter a default order, upon a showing of service 
     of process and any additional showing required by State law--
       ``(i) establishing paternity, in the case of any putative 
     father who refuses to submit to genetic testing; and
       ``(ii) establishing or modifying a support obligation, in 
     the case of a parent (or other obligor or obligee) who fails 
     to respond to notice to appear at a proceeding for such 
     purpose.
       ``(C) To subpoena any financial or other information needed 
     to establish, modify, or enforce an order, and to sanction 
     failure to respond to any such subpoena.
       ``(D) To require all entities in the State (including for-
     profit, nonprofit, and governmental employers) to provide 
     promptly, in response to a request by the State agency of 
     that or any other State administering a program under this 
     part, information on the employment, compensation, and 
     benefits of any individual employed by such entity as an 
     employee or contractor, and to sanction failure to respond to 
     any such request.
       ``(E) To obtain access, subject to safeguards on privacy 
     and information security, to the following records (including 
     automated access, in the case of records maintained in 
     automated data bases):
       ``(i) Records of other State and local government agencies, 
     including--

       ``(I) vital statistics (including records of marriage, 
     birth, and divorce);
       ``(II) State and local tax and revenue records (including 
     information on residence address, employer, income and 
     assets);
       ``(III) records concerning real and titled personal 
     property;
       ``(IV) records of occupational and professional licenses, 
     and records concerning the 

[[Page S 11917]]
     ownership and control of corporations, partnerships, and other business 
     entities;
       ``(V) employment security records;
       ``(VI) records of agencies administering public assistance 
     programs;
       ``(VII) records of the motor vehicle department; and
       ``(VIII) corrections records.

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

       ``(I) customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on individuals who owe or are owed support (or 
     against or with respect to whom a support obligation is 
     sought) held by financial institutions (subject to 
     limitations on liability of such entities arising from 
     affording such access).
       ``(F) To order income withholding in accordance with 
     subsection (a)(1) and (b) of section 466.
       ``(G) In cases where support is subject to an assignment 
     under section 402(c), 471(a)(17), or 1912, or to a 
     requirement to pay through the centralized collections unit 
     under section 454B) upon providing notice to obligor and 
     obligee, to direct the obligor or other payor to change the 
     payee to the appropriate government entity.
       ``(H) For the purpose of securing overdue support--
       ``(i) to intercept and seize any periodic or lump-sum 
     payment to the obligor by or through a State or local 
     government agency, including--

       ``(I) unemployment compensation, workers' compensation, and 
     other benefits;
       ``(II) judgments and settlements in cases under the 
     jurisdiction of the State or local government; and
       ``(III) lottery winnings;

       ``(ii) to attach and seize assets of the obligor held by 
     financial institutions;
       ``(iii) to attach public and private retirement funds in 
     appropriate cases, as determined by the Secretary; and
       ``(iv) to impose liens in accordance with paragraph (a)(4) 
     and, in appropriate cases, to force sale of property and 
     distribution of proceeds.
       ``(I) For the purpose of securing overdue support, to 
     increase the amount of monthly support payments to include 
     amounts for arrearages (subject to such conditions or 
     restrictions as the State may provide).
       ``(J) To suspend drivers' licenses of individuals owing 
     past-due support, in accordance with subsection (a)(16).
       ``(2) The expedited procedures required under subsection 
     (a)(2) shall include the following rules and authority, 
     applicable with respect to all proceedings to establish 
     paternity or to establish, modify, or enforce support orders:
       ``(A) Procedures under which--
       ``(i) the parties to any paternity or child support 
     proceedings are required (subject to privacy safeguards) to 
     file with the tribunal before entry of an order, and to 
     update as appropriate, information on location and identity 
     (including social security number, residential and mailing 
     addresses, telephone number, driver's license number, and 
     name, address, and telephone number of employer); and
       ``(ii) in any subsequent child support enforcement action 
     between the same parties, the tribunal shall be authorized, 
     upon sufficient showing that diligent effort has been made to 
     ascertain such party's current location, to deem due process 
     requirements for notice and service of process to be met, 
     with respect to such party, by delivery to the most recent 
     residential or employer address so filed pursuant to clause 
     (i).
       ``(B) Procedures under which--
       ``(i) the State agency and any administrative or judicial 
     tribunal with authority to hear child support and paternity 
     cases exerts statewide jurisdiction over the parties, and 
     orders issued in such cases have statewide effect; and
       ``(ii) in the case of a State in which orders in such cases 
     are issued by local jurisdictions, a case may be transferred 
     between jurisdictions in the State without need for any 
     additional filing by the petitioner, or service of process 
     upon the respondent, to retain jurisdiction over the 
     parties.''.
       (b) Exceptions From State Law Requirements.--Section 466(d) 
     (42 U.S.C. 666(d)) is amended--
       (1) by striking ``(d) If'' and inserting ``(d)(1) Subject 
     to paragraph (2), if''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary shall not grant an exemption from the 
     requirements of--
       ``(A) subsection (a)(5) (concerning procedures for 
     paternity establishment);
       ``(B) subsection (a)(10) (concerning modification of 
     orders);
       ``(C) subsection (a)(12) (concerning recording of orders in 
     the central State case registry);
       ``(D) subsection (a)(13) (concerning recording of social 
     security numbers);
       ``(E) subsection (a)(14) (concerning interstate 
     enforcement); or
       ``(F) subsection (c) (concerning expedited procedures), 
     other than paragraph (1)(A) thereof (concerning establishment 
     or modification of support amount).''.
       (c) Automation of State Agency Functions.--Section 454A, as 
     added by section 515(a)(2) and as amended by sections 521 and 
     522(c), is amended by adding at the end the following new 
     subsection:
       ``(h) Expedited Administrative Procedures.--The automated 
     system required under this section shall be used, to the 
     maximum extent feasible, to implement any expedited 
     administrative procedures required under section 466(c).''.

                    PART V--PATERNITY ESTABLISHMENT

     SEC. 541. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

       (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 
     666(a)(5)) is amended--
       (1) in subparagraph (B)--
       (A) by striking ``(B)'' and inserting ``(B)(i)'';
       (B) in clause (i), as redesignated, by inserting before the 
     period ``, where such request is supported by a sworn 
     statement--
       ``(I) by such party alleging paternity setting forth facts 
     establishing a reasonable possibility of the requisite sexual 
     contact of the parties; or
       ``(II) by such party denying paternity setting forth facts 
     establishing a reasonable possibility of the nonexistence of 
     sexual contact of the parties;''; and
       (C) by inserting after clause (i) (as redesignated) the 
     following new clause:
       ``(ii) Procedures which require the State agency, in any 
     case in which such agency orders genetic testing--
       ``(I) to pay the costs of such tests, subject to recoupment 
     (where the State so elects) from the putative father if 
     paternity is established; and
       ``(II) to obtain additional testing in any case where an 
     original test result is disputed, upon request and advance 
     payment by the disputing party.'';
       (2) by striking subparagraphs (C), (D), (E), and (F) and 
     inserting the following:
       ``(C)(i) Procedures for a simple civil process for 
     voluntarily acknowledging paternity under which the State 
     must provide that, before a mother and a putative father can 
     sign an acknowledgment of paternity, the putative father and 
     the mother must be given notice, orally, in writing, and in a 
     language that each can understand, of the alternatives to, 
     the legal consequences of, and the rights (including, if 1 
     parent is a minor, any rights afforded due to minority 
     status) and responsibilities that arise from, signing the 
     acknowledgment.
       ``(ii) Such procedures must include a hospital-based 
     program for the voluntary acknowledgment of paternity 
     focusing on the period immediately before or after the birth 
     of a child.
       ``(iii) Such procedures must require the State agency 
     responsible for maintaining birth records to offer voluntary 
     paternity establishment services.
       ``(iv) The Secretary shall prescribe regulations governing 
     voluntary paternity establishment services offered by 
     hospitals and birth record agencies. The Secretary shall 
     prescribe regulations specifying the types of other entities 
     that may offer voluntary paternity establishment services, 
     and governing the provision of such services, which shall 
     include a requirement that such an entity must use the same 
     notice provisions used by, the same materials used by, 
     provide the personnel providing such services with the same 
     training provided by, and evaluate the provision of such 
     services in the same manner as, voluntary paternity 
     establishment programs of hospitals and birth record 
     agencies.
       ``(D)(i) Procedures under which a signed acknowledgment of 
     paternity is considered a legal finding of paternity.
       ``(ii)(I) Procedures under which a signed acknowledgment of 
     paternity may be challenged in court only on the basis of 
     fraud, duress, or material mistake of fact, with the burden 
     of proof upon the challenger, and under which the legal 
     responsibilities (including child support obligations) of any 
     signatory arising from the acknowledgment may not be 
     suspended during the challenge, except for good cause shown.
       ``(II) Procedures under which a minor who signs an 
     acknowledgment of paternity other than in the presence of a 
     parent or court-appointed guardian ad litem may rescind the 
     acknowledgment in a judicial or administrative proceeding, 
     until the earlier of--
       ``(aa) attaining the age of majority; or
       ``(bb) the date of the first judicial or administrative 
     proceeding brought (after the signing) to establish a child 
     support obligation, visitation rights, or custody rights with 
     respect to the child whose paternity is the subject of the 
     acknowledgment, and at which the minor is represented by a 
     parent, guardian ad litem, or attorney.
       ``(E) Procedures under which no judicial or administrative 
     proceedings are required or permitted to ratify an 
     unchallenged acknowledgment of paternity.
       ``(F) Procedures requiring--
       ``(i) that the State admit into evidence, for purposes of 
     establishing paternity, results of any genetic test that is--
       ``(I) of a type generally acknowledged, by accreditation 
     bodies designated by the Secretary, as reliable evidence of 
     paternity; and
       ``(II) performed by a laboratory approved by such an 
     accreditation body;
       ``(ii) that any objection to genetic testing results must 
     be made in writing not later than a specified number of days 
     before any hearing at which such results may be introduced 
     into evidence (or, at State option, not later than a 
     specified number of days after receipt of such results); and
       ``(iii) that, if no objection is made, the test results are 
     admissible as evidence of paternity without the need for 
     foundation testimony or other proof of authenticity or 
     accuracy.''; and

[[Page S 11918]]

       (3) by adding after subparagraph (H) the following new 
     subparagraphs:
       ``(I) Procedures providing that the parties to an action to 
     establish paternity are not entitled to a jury trial.
       ``(J) At the option of the State, procedures which require 
     that a temporary order be issued, upon motion by a party, 
     requiring the provision of child support pending an 
     administrative or judicial determination of parentage, where 
     there is clear and convincing evidence of paternity (on the 
     basis of genetic tests or other evidence).
       ``(K) Procedures under which bills for pregnancy, 
     childbirth, and genetic testing are admissible as evidence 
     without requiring third-party foundation testimony, and shall 
     constitute prima facie evidence of amounts incurred for such 
     services and testing on behalf of the child.
       ``(L) At the option of the State, procedures under which 
     the tribunal establishing paternity and support has 
     discretion to waive rights to all or part of amounts owed to 
     the State (but not to the mother) for costs related to 
     pregnancy, childbirth, and genetic testing and for public 
     assistance paid to the family where the father cooperates or 
     acknowledges paternity before or after genetic testing.
       ``(M) Procedures ensuring that the putative father has a 
     reasonable opportunity to initiate a paternity action.''.
       (b) National Paternity Acknowledgment Affidavit.--Section 
     452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, 
     and develop an affidavit to be used for the voluntary 
     acknowledgment of paternity which shall include the social 
     security number of each parent'' before the semicolon.
       (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is 
     amended by striking ``a simple civil process for voluntarily 
     acknowledging paternity and''.

     SEC. 542. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

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

     SEC. 543. COOPERATION REQUIREMENT AND GOOD CAUSE EXCEPTION.

       (a) Child Support Enforcement Requirements.--Section 454 
     (42 U.S.C. 654), as amended by sections 501(b)(4), 504(a), 
     514(b), 522(a), and 526(a) of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (28);
       (2) by striking the period at the end of paragraph (29) and 
     inserting ``; and''; and
       (3) by adding after paragraph (29) the following new 
     paragraph:
       ``(30) provide that the State agency administering the plan 
     under this part--
       ``(A) will make the determination specified under 
     subparagraph (D), as to whether an individual is cooperating 
     with efforts to establish paternity and secure support (or 
     has good cause not to cooperate with such efforts) for 
     purposes of the requirements of sections 403(b)(7)(B) and 
     1912;
       ``(B) will advise individuals, both orally and in writing, 
     of the grounds for good cause exceptions to the requirement 
     to cooperate with such efforts;
       ``(C) will take the best interests of the child into 
     consideration in making the determination whether such 
     individual has good cause not to cooperate with such efforts;
       ``(D)(i) will make the initial determination as to whether 
     an individual is cooperating (or has good cause not to 
     cooperate) with efforts to establish paternity within 10 days 
     after such individual is referred to such State agency by the 
     State agency administering the program under part A of this 
     title or part A of title XIX;
       ``(ii) will make redeterminations as to cooperation or good 
     cause at appropriate intervals; and
       ``(iii) will promptly notify the individual, and the State 
     agencies administering such programs, of each such 
     determination and redetermination;
       ``(E) with respect to any child born on or after the date 
     10 months after the date of the enactment of this paragraph, 
     will not determine (or redetermine) the mother (or other 
     custodial relative) of such child to be cooperating with 
     efforts to establish paternity unless such individual 
     furnishes--
       ``(i) the name of the putative father (or fathers); and
       ``(ii) sufficient additional information to enable the 
     State agency, if reasonable efforts were made, to verify the 
     identity of the person named as the putative father 
     (including such information as the putative father's present 
     address, telephone number, date of birth, past or present 
     place of employment, school previously or currently attended, 
     and names and addresses of parents, friends, or relatives 
     able to provide location information, or other information 
     that could enable service of process on such person),

     unless the State agency is satisfied that the mother (or 
     other custodial relative) of such child is cooperating but 
     lacks knowledge of the required information, and
       ``(F)(i) (in the case of a custodial parent who was 
     initially determined not to be cooperating (or to have good 
     cause not to cooperate) is later determined to be cooperating 
     or to have good cause not to cooperate) will immediately 
     notify the State agencies administering the programs under 
     part A of this title and part A of title XIX that this 
     eligibility condition has been met; and
       ``(ii) (in the case of a custodial parent was initially 
     determined to be cooperating (or to have good cause not to 
     cooperate)) will not later determine such individual not to 
     be cooperating (or not to have good cause not to cooperate) 
     until such individual has been afforded an opportunity for a 
     hearing.''.
       (b) Medicaid Amendments.--Section 1912(a) (42 U.S.C. 
     1396k(a)) is amended--
       (1) in paragraph (1)(B), by inserting ``(except as provided 
     in paragraph (2))'' after ``to cooperate with the State'';
       (2) in subparagraphs (B) and (C) of paragraph (1) by 
     striking ``, unless'' and all that follows and inserting a 
     semicolon; and
       (3) by redesignating paragraph (2) as paragraph (5), and 
     inserting after paragraph (1) the following new paragraphs:
       ``(2) provide that the State agency will immediately refer 
     each applicant or recipient requiring paternity establishment 
     services to the State agency administering the program under 
     part D of title IV;
       ``(3) provide that an individual will not be required to 
     cooperate with the State, as provided under paragraph (1), if 
     the individual is found to have good cause for refusing to 
     cooperate, as determined in accordance with standards 
     prescribed by the Secretary, which standards shall take into 
     consideration the best interests of the individuals 
     involved--
       ``(A) to the satisfaction of the State agency administering 
     the program under part D, as determined in accordance with 
     section 454(30), with respect to the requirements to 
     cooperate with efforts to establish paternity and to obtain 
     support (including medical support) from a parent; and
       ``(B) to the satisfaction of the State agency administering 
     the program under this title, with respect to other 
     requirements to cooperate under paragraph (1);
       ``(4) provide that (except as provided in paragraph (5)) an 
     applicant requiring paternity establishment services (other 
     than an individual eligible for emergency assistance under 
     part A of title IV, or presumptively eligible pursuant to 
     section 1920) shall not be eligible for medical assistance 
     under this title until such applicant--
       ``(i) has furnished to the agency administering the State 
     plan under part D of title IV the information specified in 
     section 454(30)(E); or
       ``(ii) has been determined by such agency to have good 
     cause not to cooperate; and
       ``(5) provide that the provisions of paragraph (4) shall 
     not apply with respect to an applicant--
       ``(i) if such agency has not, within 10 days after such 
     individual was referred to such agency, provided the 
     notification required by section 454(30)(D)(iii), until such 
     notification is received); and
       ``(ii) if such individual appeals a determination that the 
     individual lacks good cause for noncooperation, until after 
     such determination is affirmed after notice and opportunity 
     for a hearing.''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to applications filed in or 
     after the first calendar quarter beginning 10 months or more 
     after enactment of this amendment (or such earlier quarter as 
     the State may select) for assistance under part A of title IV 
     or the Social Security Act or for medical assistance under 
     title XIX of such Act.
     
[[Page S 11919]]


       PART VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

     SEC. 551. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

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

     SEC. 552. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
                   CHILD SUPPORT ORDERS.

       Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
     read as follows:
       ``(10)(A)(i) Procedures under which--
       ``(I) every 3 years, at the request of either parent 
     subject to a child support order, the State shall review and, 
     as appropriate, adjust the order in accordance with the 
     guidelines established under section 467(a) if the amount of 
     the child support award under the order differs from the 
     amount that would be awarded in accordance with such 
     guidelines, without a requirement for any other change in 
     circumstances; and
       ``(II) upon request at any time of either parent subject to 
     a child support order, the State shall review and, as 
     appropriate, adjust the order in accordance with the 
     guidelines established under section 467(a) based on a 
     substantial change in the circumstances of either such 
     parent.
       ``(ii) Such procedures shall require both parents subject 
     to a child support order to be notified of their rights and 
     responsibilities provided for under clause (i) at the time 
     the order is issued and in the annual information exchange 
     form provided under subparagraph (B).
       ``(B) Procedures under which each child support order 
     issued or modified in the State after the effective date of 
     this subparagraph shall require the parents subject to the 
     order to provide each other with a complete statement of 
     their respective financial condition annually on a form which 
     shall be provided by the State. The Secretary shall establish 
     regulations for the enforcement of such exchange of 
     information.''.
                PART VII--ENFORCEMENT OF SUPPORT ORDERS

     SEC. 561. FEDERAL INCOME TAX REFUND OFFSET.

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

[[Page S 11920]]


     SEC. 562. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

     SEC. 563. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL 
                   EMPLOYEES.

       (a) Consolidation and Streamlining of Authorities.--Section 
     459 (42 U.S.C. 659) is amended--
       (1) in the heading, by inserting ``income withholding,'' 
     before ``garnishment'';
       (2) in subsection (a)--
       (A) by striking ``section 207'' and inserting ``section 207 
     and section 5301 of title 38, United States Code''; and
       (B) by striking ``to legal process'' and all that follows 
     through the period and inserting ``to withholding in 
     accordance with State law pursuant to subsections (a)(1) and 
     (b) of section 466 and regulations of the Secretary 
     thereunder, and to any other legal process brought, by a 
     State agency administering a program under this part or by an 
     individual obligee, to enforce the legal obligation of such 
     individual to provide child support or alimony.'';
       (3) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Except as otherwise provided herein, each entity 
     specified in subsection (a) shall be subject, with respect to 
     notice to withhold income pursuant to subsection (a)(1) or 
     (b) of section 466, or to any other order or process to 
     enforce support obligations against an individual (if such 
     order or process contains or is accompanied by sufficient 
     data to permit prompt identification of the individual and 
     the moneys involved), to the same requirements as would apply 
     if such entity were a private person.'';
       (4) by striking subsections (c) and (d) and inserting the 
     following new subsections:
       ``(c)(1) The head of each agency subject to the 
     requirements of this section shall--
       ``(A) designate an agent or agents to receive orders and 
     accept service of process; and
       ``(B) publish--
       ``(i) in the appendix of such regulations;
       ``(ii) in each subsequent republication of such 
     regulations; and
       ``(iii) annually in the Federal Register,

     the designation of such agent or agents, identified by title 
     of position, mailing address, and telephone number.
       ``(2) Whenever an agent designated pursuant to paragraph 
     (1) receives notice pursuant to subsection (a)(1) or (b) of 
     section 466, or is effectively served with any order, 
     process, or interrogatories, with respect to an individual's 
     child support or alimony payment obligations, such agent 
     shall--
       ``(A) as soon as possible (but not later than 15 days) 
     thereafter, send written notice of such notice or service 
     (together with a copy thereof) to such individual at his duty 
     station or last-known home address;
       ``(B) not later than 30 days (or such longer period as may 
     be prescribed by applicable State law) after receipt of a 
     notice pursuant to subsection (a)(1) or (b) of section 466, 
     comply with all applicable provisions of such section 466; 
     and
       ``(C) not later than 30 days (or such longer period as may 
     be prescribed by applicable State law) after effective 
     service of any other such order, process, or interrogatories, 
     respond thereto.
       ``(d) In the event that a governmental entity receives 
     notice or is served with process, as provided in this 
     section, concerning amounts owed by an individual to more 
     than 1 person--
       ``(1) support collection under section 466(b) must be given 
     priority over any other process, as provided in section 
     466(b)(7);
       ``(2) allocation of moneys due or payable to an individual 
     among claimants under section 466(b) shall be governed by the 
     provisions of such section 466(b) and regulations thereunder; 
     and
       ``(3) such moneys as remain after compliance with 
     subparagraphs (A) and (B) shall be available to satisfy any 
     other such processes on a first-come, first-served basis, 
     with any such process being satisfied out of such moneys as 
     remain after the satisfaction of all such processes which 
     have been previously served.'';
       (5) in subsection (f)--
       (A) by striking ``(f)'' and inserting ``(f)(1)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) No Federal employee whose duties include taking 
     actions necessary to comply with the requirements of 
     subsection (a) with regard to any individual shall be subject 
     under any law to any disciplinary action or civil or criminal 
     liability or penalty for, or on account of, any disclosure of 
     information made by him in connection with the carrying out 
     of such duties.''; and
       (6) by adding at the end the following new subsections:
       ``(g) Authority to promulgate regulations for the 
     implementation of the provisions of this section shall, 
     insofar as the provisions of this section are applicable to 
     moneys due from (or payable by)--
       ``(1) the executive branch of the Federal Government 
     (including in such branch, for the purposes of this 
     subsection, the territories and possessions of the United 
     States, the United States Postal Service, the Postal Rate 
     Commission, any wholly owned Federal corporation created by 
     an Act of Congress, and the government of the District of 
     Columbia), be vested in the President (or the President's 
     designee);
       ``(2) the legislative branch of the Federal Government, be 
     vested jointly in the President pro tempore of the Senate and 
     the Speaker of the House of Representatives (or their 
     designees); and
       ``(3) the judicial branch of the Federal Government, be 
     vested in the Chief Justice of the United States (or the 
     Chief Justice's designee).
       ``(h) Subject to subsection (i), moneys paid or payable to 
     an individual which are considered to be based upon 
     remuneration for employment, for purposes of this section--
       ``(1) consist of--
       ``(A) compensation paid or payable for personal services of 
     such individual, whether such compensation is denominated as 
     wages, salary, commission, bonus, pay, allowances, or 
     otherwise (including severance pay, sick pay, and incentive 
     pay);
       ``(B) periodic benefits (including a periodic benefit as 
     defined in section 228(h)(3)) or other payments--
       ``(i) under the insurance system established by title II;
       ``(ii) under any other system or fund established by the 
     United States which provides for the payment of pensions, 
     retirement or retired pay, annuities, dependents' or 
     survivors' benefits, or similar amounts payable on account of 
     personal services performed by the individual or any other 
     individual;
       ``(iii) as compensation for death under any Federal 
     program;
       ``(iv) under any Federal program established to provide 
     `black lung' benefits; or
       ``(v) by the Secretary of Veterans Affairs as pension, or 
     as compensation for a service-connected disability or death 
     (except any compensation paid by such Secretary to a former 
     member of the Armed Forces who is in receipt of retired or 
     retainer pay if such former member has waived a portion of 
     his retired pay in order to receive such compensation); and
       ``(C) worker's compensation benefits paid under Federal or 
     State law; but
       ``(2) do not include any payment--
       ``(A) by way of reimbursement or otherwise, to defray 
     expenses incurred by such individual in carrying out duties 
     associated with his employment; or
       ``(B) as allowances for members of the uniformed services 
     payable pursuant to chapter 7 of title 37, United States 
     Code, as prescribed by the Secretaries concerned (defined by 
     section 101(5) of such title) as necessary for the efficient 
     performance of duty.
       ``(i) In determining the amount of any moneys due from, or 
     payable by, the United States to any individual, there shall 
     be excluded amounts which--
       ``(1) are owed by such individual to the United States;
       ``(2) are required by law to be, and are, deducted from the 
     remuneration or other payment involved, including Federal 
     employment taxes, and fines and forfeitures ordered by court-
     martial;
       ``(3) are properly withheld for Federal, State, or local 
     income tax purposes, if the withholding of such amounts is 
     authorized or required by law and if amounts withheld are not 
     greater than would be the case if such individual claimed all 
     the dependents that the individual was entitled to (the 
     withholding of additional amounts pursuant to section 3402(i) 
     of the Internal Revenue Code of 1986 may be permitted only 
     when such individual presents evidence of a tax obligation 
     which supports the additional withholding);
       ``(4) are deducted as health insurance premiums;
       ``(5) are deducted as normal retirement contributions (not 
     including amounts deducted for supplementary coverage); or
       ``(6) are deducted as normal life insurance premiums from 
     salary or other remuneration for employment (not including 
     amounts deducted for supplementary coverage).
       ``(j) For purposes of this section--''.
       (b) Transfer of Subsections.--Subsections (a) through (d) 
     of section 462 (42 U.S.C. 662), are transferred and 
     redesignated as paragraphs (1) through (4), respectively, of 
     section 459(j) (as added by subsection (a)(6)), and the left 
     margin of each of such paragraphs (1) through (4) is indented 
     2 ems to the right of the left margin of subsection (j) (as 
     added by subsection (a)(6)).
       (c) Conforming Amendments.--
       (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
     661) are repealed.
       (2) To title 5, united states code.--Section 5520a of title 
     5, United States Code, is amended, in subsections (h)(2) and 
     (i), by striking ``sections 459, 461, and 462 of the Social 
     Security Act (42 U.S.C. 659, 661, and 662)'' each place it 
     appears and inserting ``section 459 of the Social Security 
     Act (42 U.S.C. 659)''. 

[[Page S 11921]]

       (d) Military Retired and Retainer Pay.--Section 1408 of 
     title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``and'';
       (ii) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following new subparagraph:
       ``(D) any administrative or judicial tribunal of a State 
     competent to enter orders for support or maintenance 
     (including a State agency administering a State program under 
     part D of title IV of the Social Security Act).'';
       (B) in paragraph (2), by inserting ``or a court order for 
     the payment of child support not included in or accompanied 
     by such a decree or settlement,'' before ``which--'';
       (2) in subsection (d)--
       (A) in the heading, by inserting ``(or for benefit of)'' 
     after ``concerned''; and
       (B) in paragraph (1), in the first sentence, by inserting 
     ``(or for the benefit of such spouse or former spouse to a 
     State central collections unit or other public payee 
     designated by a State, in accordance with part D of title IV 
     of the Social Security Act, as directed by court order, or as 
     otherwise directed in accordance with such part D)'' before 
     ``in an amount sufficient''; and
       (3) by adding at the end the following new subsection:
       ``(j) Relationship to Other Laws.--In any case involving a 
     child support order against a member who has never been 
     married to the other parent of the child, the provisions of 
     this section shall not apply, and the case shall be subject 
     to the provisions of section 459 of the Social Security 
     Act.''.
       (e) Effective Date.--The amendments made by this section 
     shall become effective 6 months after the date of the 
     enactment of this Act.

     SEC. 564. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS 
                   OF THE ARMED FORCES.

       (a) Availability of Locator Information.--
       (1) Maintenance of address information.--The Secretary of 
     Defense shall establish a centralized personnel locator 
     service that includes the address of each member of the Armed 
     Forces under the jurisdiction of the Secretary. Upon request 
     of the Secretary of Transportation, addresses for members of 
     the Coast Guard shall be included in the centralized 
     personnel locator service.
       (2) Type of address.--
       (A) Residential address.--Except as provided in 
     subparagraph (B), the address for a member of the Armed 
     Forces shown in the locator service shall be the residential 
     address of that member.
       (B) Duty address.--The address for a member of the Armed 
     Forces shown in the locator service shall be the duty address 
     of that member in the case of a member--
       (i) who is permanently assigned overseas, to a vessel, or 
     to a routinely deployable unit; or
       (ii) with respect to whom the Secretary concerned makes a 
     determination that the member's residential address should 
     not be disclosed due to national security or safety concerns.
       (3) Updating of locator information.--Not later than 30 
     days after a member listed in the locator service establishes 
     a new residential address (or a new duty address, in the case 
     of a member covered by paragraph (2)(B)), the Secretary 
     concerned shall update the locator service to indicate the 
     new address of the member.
       (4) Availability of information.--The Secretary of Defense 
     shall make information regarding the address of a member of 
     the Armed Forces listed in the locator service available, on 
     request, to the Federal Parent Locator Service.
       (b) Facilitating Granting of Leave for Attendance at 
     Hearings.--
       (1) Regulations.--The Secretary of each military 
     department, and the Secretary of Transportation with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy, shall prescribe regulations to facilitate the 
     granting of leave to a member of the Armed Forces under the 
     jurisdiction of that Secretary in a case in which--
       (A) the leave is needed for the member to attend a hearing 
     described in paragraph (2);
       (B) the member is not serving in or with a unit deployed in 
     a contingency operation (as defined in section 101 of title 
     10, United States Code); and
       (C) the exigencies of military service (as determined by 
     the Secretary concerned) do not otherwise require that such 
     leave not be granted.
       (2) Covered hearings.--Paragraph (1) applies to a hearing 
     that is conducted by a court or pursuant to an administrative 
     process established under State law, in connection with a 
     civil action--
       (A) to determine whether a member of the Armed Forces is a 
     natural parent of a child; or
       (B) to determine an obligation of a member of the Armed 
     Forces to provide child support.
       (3) Definitions.--For purposes of this subsection:
       (A) The term ``court'' has the meaning given that term in 
     section 1408(a) of title 10, United States Code.
       (B) The term ``child support'' has the meaning given such 
     term in section 462 of the Social Security Act (42 U.S.C. 
     662).
       (c) Payment of Military Retired Pay in Compliance With 
     Child Support Orders.--Section 1408 of title 10, United 
     States Code, as amended by section 563(d)(3), is amended--
       (1) by redesignating subsections (i) and (j) as subsections 
     (j) and (k), respectively;
       (2) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Certification Date.--It is not necessary that the 
     date of a certification of the authenticity or completeness 
     of a copy of a court order or an order of an administrative 
     process established under State law for child support 
     received by the Secretary concerned for the purposes of this 
     section be recent in relation to the date of receipt by the 
     Secretary.''; and
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting after the first sentence 
     the following: ``In the case of a spouse or former spouse 
     who, pursuant to section 402(c) of the Social Security Act, 
     assigns to a State the rights of the spouse or former spouse 
     to receive support, the Secretary concerned may make the 
     child support payments referred to in the preceding sentence 
     to that State in amounts consistent with that assignment of 
     rights.''; and
       (B) by adding at the end the following new paragraph:
       ``(6) In the case of a court order or an order of an 
     administrative process established under State law for which 
     effective service is made on the Secretary concerned on or 
     after the date of the enactment of this paragraph and which 
     provides for payments from the disposable retired pay of a 
     member to satisfy the amount of child support set forth in 
     the order, the authority provided in paragraph (1) to make 
     payments from the disposable retired pay of a member to 
     satisfy the amount of child support set forth in a court 
     order or an order of an administrative process established 
     under State law shall apply to payment of any amount of child 
     support arrearages set forth in that order as well as to 
     amounts of child support that currently become due.''.

     SEC. 565. MOTOR VEHICLE LIENS.

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

     SEC. 566. VOIDING OF FRAUDULENT TRANSFERS.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     501(a), 527(a), and 531, is amended by adding at the end the 
     following new paragraph:
       ``(15) Procedures under which--
       ``(A) the State has in effect--
       ``(i) the Uniform Fraudulent Conveyance Act of 1981,
       ``(ii) the Uniform Fraudulent Transfer Act of 1984, or
       ``(iii) another law, specifying indicia of fraud which 
     create a prima facie case that a debtor transferred income or 
     property to avoid payment to a child support creditor, which 
     the Secretary finds affords comparable rights to child 
     support creditors; and
       ``(B) in any case in which the State knows of a transfer by 
     a child support debtor with respect to which such a prima 
     facie case is established, the State must--
       ``(i) seek to void such transfer; or
       ``(ii) obtain a settlement in the best interests of the 
     child support creditor.''.

     SEC. 567. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

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

     SEC. 568. REPORTING ARREARAGES TO CREDIT BUREAUS.

       Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read 
     as follows:
       ``(7)(A) Procedures (subject to safeguards pursuant to 
     subparagraph (B)) requiring the State to report periodically 
     to consumer reporting agencies (as defined in section 603(f) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) the 
     name of any absent parent who is more than 30 days delinquent 
     in the payment of at least $100 of support, and the amount of 
     overdue support owed by such parent. 

[[Page S 11922]]

       ``(B) Procedures ensuring that, in carrying out 
     subparagraph (A), information with respect to an absent 
     parent is reported--
       ``(i) only after such parent has been afforded all due 
     process required under State law, including notice and a 
     reasonable opportunity to contest the accuracy of such 
     information; and
       ``(ii) only to an entity that has furnished evidence 
     satisfactory to the State that the entity is a consumer 
     reporting agency.''.

     SEC. 569. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF 
                   ARREARAGES.

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

     SEC. 570. CHARGES FOR ARREARAGES.

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

     SEC. 571. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD 
                   SUPPORT.

       (a) HHS Certification Procedure.--
       (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
     652), as amended by sections 515(a)(3) and 517, is amended by 
     adding at the end the following new subsection:
       ``(l)(1) If the Secretary receives a certification by a 
     State agency in accordance with the requirements of section 
     454(31) that an individual owes arrearages of child support 
     in an amount exceeding $5,000 or in an amount exceeding 24 
     months' worth of child support, the Secretary shall transmit 
     such certification to the Secretary of State for action (with 
     respect to denial, revocation, or limitation of passports) 
     pursuant to section 571(b) of the Interstate Child Support 
     Responsibility Act of 1995.
       ``(2) The Secretary shall not be liable to an individual 
     for any action with respect to a certification by a State 
     agency under this section.''.
       (2) State cse agency responsibility.--Section 454 (42 
     U.S.C. 654), as amended by sections 501(b)(4), 504(a), 
     514(b), 522(a), 526(a), and 543(a) is amended--
       (A) by striking ``and'' at the end of paragraph (29);
       (B) by striking the period at the end of paragraph (30) and 
     inserting ``; and''; and
       (C) by adding after paragraph (30) the following new 
     paragraph:
       ``(31) provide that the State agency will have in effect a 
     procedure (which may be combined with the procedure for tax 
     refund offset under section 464) for certifying to the 
     Secretary, for purposes of the procedure under section 452(l) 
     (concerning denial of passports) determinations that 
     individuals owe arrearages of child support in an amount 
     exceeding $5,000 or in an amount exceeding 24 months' worth 
     of child support, under which procedure--
       ``(A) each individual concerned is afforded notice of such 
     determination and the consequences thereof, and an 
     opportunity to contest the determination; and
       ``(B) the certification by the State agency is furnished to 
     the Secretary in such format, and accompanied by such 
     supporting documentation, as the Secretary may require.''.
       (b) State Department Procedure for Denial of Passports.--
       (1) In general.--The Secretary of State, upon certification 
     by the Secretary of Health and Human Services, in accordance 
     with section 452(l) of the Social Security Act, that an 
     individual owes arrearages of child support in excess of 
     $5,000, shall refuse to issue a passport to such individual, 
     and may revoke, restrict, or limit a passport issued 
     previously to such individual.
       (2) Limit on liability.--The Secretary of State shall not 
     be liable to an individual for any action with respect to a 
     certification by a State agency under this section.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective October 1, 1996.
     SEC. 572. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

                       PART VIII--MEDICAL SUPPORT

     SEC. 581. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL 
                   CHILD SUPPORT ORDER.

       (a) In General.--Section 609(a)(2)(B) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 
     1169(a)(2)(B)) is amended--
       (1) by striking ``issued by a court of competent 
     jurisdiction'';
       (2) in clause (ii) by striking the period and inserting a 
     comma; and
       (3) by adding after clause (ii), the following flush left 
     language:

     ``if such judgment, decree, or order (I) is issued by a court 
     of competent jurisdiction or (II) is issued by an 
     administrative adjudicator and has the force and effect of 
     law under applicable State law.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     become effective on the date of the enactment of this Act.
       (2) Plan amendments not required until january 1, 1996.--
       (A) In general.--Any amendment to a plan required to be 
     made by an amendment made by this section shall not be 
     required to be made before the first plan year beginning on 
     or after January 1, 1996, if--
       (i) during the period after the date before the date of the 
     enactment of this Act and before such first plan year, the 
     plan is operated in accordance with the requirements of the 
     amendments made by this section; and
       (ii) such plan amendment applies retroactively to the 
     period after the date before the date of the enactment of 
     this Act and before such first plan year.
       (B) No failure for compliance with this paragraph.--A plan 
     shall not be treated as failing to be operated in accordance 
     with the provisions of the plan merely because it operates in 
     accordance with this paragraph.

           PART IX--VISITATION AND SUPPORT ASSURANCE PROJECTS

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

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

       ``Sec. 469A. (a) Purposes; Authorization of 
     Appropriations.--For purposes of enabling States to establish 
     and administer programs to support and facilitate absent 
     parents' access to and visitation of their children, by means 
     of activities including mediation (both voluntary and 
     mandatory), counseling, education, development of parenting 
     plans, visitation enforcement (including monitoring, 
     supervision, and neutral drop-off and pickup), and 
     development of guidelines for visitation and alternative 
     custody arrangements, there are authorized to be appropriated 
     $5,000,000 for each of fiscal years 1996 and 1997, and 
     $10,000,000 for each succeeding fiscal year.
       ``(b) Payments to States.--
       ``(1) In general.--Each State shall be entitled to payment 
     under this section for each fiscal year in an amount equal to 
     its allotment under subsection (c) for such fiscal year, to 
     be used for payment of 90 percent of State expenditures for 
     the purposes specified in subsection (a).
       ``(2) Supplementary use.--Payments under this section shall 
     be used by a State to supplement (and not to substitute for) 
     expenditures by the State, for activities specified in 
     subsection (a), at a level at least equal to the level of 
     such expenditures for fiscal year 1994.
       ``(c) Allotments to States.--
       ``(1) In general.--For purposes of subsection (b), each 
     State shall be entitled (subject to paragraph (2)) to an 
     amount for each fiscal year bearing the same ratio to the 
     amount authorized to be appropriated pursuant to subsection 
     (a) for such fiscal year as the number of children in the 
     State living with only 1 biological parent bears to the total 
     number of such children in all States.
       ``(2) Minimum allotment.--Allotments to States under 
     paragraph (1) shall be adjusted as necessary to ensure that 
     no State is allotted less than $50,000 for fiscal year 1996 
     or 1997, or $100,000 for any succeeding fiscal year.
       ``(d) Federal Administration.--The program under this 
     section shall be administered by the Administration for 
     Children and Families.
       ``(e) State Program Administration.--
       ``(1) In general.--Each State may administer the program 
     under this section directly or through grants to or contracts 
     with courts, local public agencies, or nonprofit private 
     entities.
       ``(2) Statewide plan permissible.--State programs under 
     this section may, but need not, be statewide.
       ``(3) Evaluation.--States administering programs under this 
     section shall monitor, 

[[Page S 11923]]
     evaluate, and report on such programs in accordance with requirements 
     established by the Secretary.''.

     SEC. 592. CHILD SUPPORT ASSURANCE DEMONSTRATION PROJECTS

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

     SEC. 595. EFFECTIVE DATES.

       (a) In General.--Except as otherwise specifically provided 
     (but subject to subsections (b) and (c))--
       (1) provisions of subtitle A requiring enactment or 
     amendment of State laws under section 466 of the Social 
     Security Act, or revision of State plans under section 454 of 
     such Act, shall be effective with respect to periods 
     beginning on and after October 1, 1996; and
       (2) all other provisions of subtitle A shall become 
     effective upon the date of the enactment of this Act.
       (b) Grace Period for State Law Changes.--The provisions of 
     subtitle A shall become effective with respect to a State on 
     the later of--
       (1) the date specified in subtitle A, or
       (2) the effective date of laws enacted by the legislature 
     of such State implementing such provisions,

     but in no event later than the first day of the first 
     calendar quarter beginning after the close of the first 
     regular session of the State legislature that begins after 
     the date of the enactment of this Act. For purposes of the 
     previous sentence, in the case of a State that has a 2-year 
     legislative session, each year of such session shall be 
     deemed to be a separate regular session of the State 
     legislature.
       (c) Grace Period for State Constitutional Amendment.--A 
     State shall not be found out of compliance with any 
     requirement enacted by subtitle A if it is unable to comply 
     without amending the State constitution until the earlier 
     of--
       (1) the date which is 1 year after the effective date of 
     the necessary State constitutional amendment, or
       (2) the date which is 5 years after the date of the 
     enactment of this Act.

     SEC. 596. SEVERABILITY.

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

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

       (a) Termination of SSI Cash Benefits for Drug Addicts and 
     Alcoholics.--Section 1611(e)(3) (42 U.S.C. 1382(e)(3)) is 
     amended--
       (1) by striking ``(B)'' and inserting ``(C)'';
       (2) by striking ``(3)(A) and inserting ``(B)''; and
       (3) by inserting before subparagraph (B) as redesignated by 
     paragraph (2) the following new subparagraph:
       ``(3)(A) No cash benefits shall be payable under this title 
     to any individual who is otherwise eligible for benefits 
     under this title by reason of disability, if such 
     individual's alcoholism or drug addiction is a contributing 
     factor material to the Commissioner's determination that such 
     individual is disabled.''.
       (b) Treatment Requirements.--
       (1) Section 1611(e)(3)(B)(i)(I) (42 U.S.C. 
     1382(e)(3)(B)(i)(I)), as redesignated by subsection (a), is 
     amended to read as follows:
       ``(B)(i)(I)(aa) Any individual who would be eligible for 
     cash benefits under this title but for the application of 
     subparagraph (A) may elect to comply with the provisions of 
     this subparagraph.
       ``(bb) Any individual who is eligible for cash benefits 
     under this title by reason of disability (or whose 
     eligibility for such benefits is suspended) or is eligible 
     for benefits pursuant to section 1619(b), and who was 
     eligible for such benefits by reason of disability, for which 
     such individual's alcoholism or drug addiction was a 
     contributing factor material to the Commissioner's 
     determination that such individual was disabled, for the 
     month preceding the month in which section 601 of the Work 
     First Act of 1995 takes effect, shall be required to comply 
     with the provisions of this subparagraph.
       (2) Section 1611(e)(3)(B)(i)(II) (42 U.S.C. 
     1382(e)(3)(B)(i)(II)), as so redesignated, is amended by 
     striking ``who is required under subclause (I)'' and 
     inserting ``described in division (bb) of subclause (I) who 
     is required''.
       (3) Subclauses (I) and (II) of section 1611(e)(3)(B)(ii) 
     (42 U.S.C. 1382(e)(3)(B)(ii)), as so redesignated, are each 
     amended by striking ``clause (i)'' and inserting ``clause 
     (i)(I)''.
       (4) Section 1611(e)(3)(B) (42 U.S.C. 1382(e)(3)(B)), as so 
     redesignated, is amended by striking clause (v) and by 
     redesignating clause (vi) as clause (v).
       (5) Section 1611(e)(3)(B)(v) (42 U.S.C. 1382(e)(3)(B)(v)), 
     as redesignated by paragraph (4), is amended--
       (A) in subclause (I), by striking ``who is eligible'' and 
     all that follows through ``is disabled'' and inserting 
     ``described in clause (i)(I)''; and
       (B) in subclause (V), by striking ``or v''.
       (6) Section 1611(e)(3)(C)(i) (42 U.S.C. 1382(e)(3)(C)(i)), 
     as redesignated by subsection (a), is amended by striking 
     ``who are receiving benefits under this title and who as a 
     condition of such benefits'' and inserting ``described in 
     subparagraph (B)(i)(I)(aa) who elect to undergo treatment; 
     and the monitoring and testing of all individuals described 
     in subparagraph (B)(i)(I)(bb) who''.
       (7) Section 1611(e)(3)(C)(iii)(II)(aa) (42 U.S.C. 
     1382(e)(3)(C)(iii)(II)(aa)), as so redesignated, is amended 
     by striking ``residing in the State'' and all that follows 
     through ``they are disabled'' and inserting ``described in 
     subparagraph (B)(i)(I) residing in the State''.
       (8) Section 1611(e)(3)(C)(iii) (42 U.S.C. 
     1382(e)(3)(C)(iii)), as so redesignated, is amended by adding 
     at the end the following:
       ``(III) The monitoring requirements of subclause (II) shall 
     not apply in the case of any individual described in 
     subparagraph (B)(i)(I)(aa) who fails to comply with the 
     requirements of subparagraph (B).''.
       (9) Section 1611(e)(3) (42 U.S.C. 1382(e)(3)), as amended 
     by subsection (a), is amended by adding at the end the 
     following new subparagraphs:
       ``(D) The Commissioner shall provide appropriate 
     notification to each individual subject to the limitation on 
     cash benefits contained in subparagraph (A) and the treatment 
     provisions contained in subparagraph (B).
       ``(E) The requirements of subparagraph (B) shall cease to 
     apply to any individual if the Commissioner determines that 
     such individual no longer needs treatment.''.
       (c) Preservation of Medicaid Eligibility.--Section 1634(e) 
     (42 U.S.C. 1382(e)) is amended--
       (1) by striking ``clause (i) or (v) of section 
     1611(e)(3)(A)'' and inserting ``subparagraph (A) or 
     subparagraph (B)(i)(II) of section 1611(e)(3)''; and
       (2) by adding at the end the following: ``This subsection 
     shall cease to apply to any such person if the Commissioner 
     determines that such person no longer needs treatment.''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to applicants for 
     benefits for months beginning on or after the date of the 
     enactment of this Act, without regard to whether regulations 
     have been issued to implement such amendments.
       (2) Application to current recipients.--Notwithstanding any 
     other provision of law, in the case of an individual who is 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     would terminate by reason of the amendments made by this 
     section, such amendments shall apply with respect to the 
     benefits of such individual for months beginning on or after 
     January 1, 1997, and the Commissioner of Social Security 
     shall so notify the individual not later than 90 days after 
     the date of the enactment of this Act.
               Subtitle B--Benefits for Disabled Children

     SEC. 611. DEFINITION AND ELIGIBILITY RULES.

       (a) Definition of Childhood Disability.--Section 1614(a)(3) 
     (42 U.S.C. 1382c(a)(3)) is amended--
       (1) in subparagraph (A), by striking ``An individual'' and 
     inserting ``Except as provided in subparagraph (C), an 
     individual'';
       (2) in subparagraph (A), by striking ``(or, in the case of 
     an individual under the age of 18, if he suffers from any 
     medically determinable physical or mental impairment of 
     comparable severity)'';
       (3) by redesignating subparagraphs (C) through (H) as 
     subparagraphs (D) through (I), respectively;
       (4) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) An individual under the age of 18 shall be considered 
     disabled for the purposes of this title if that individual 
     has a medically determinable physical or mental impairment, 
     which results in marked and severe functional limitations, 
     and which can be expected to result in death or which has 
     lasted or can be expected to last for a continuous period of 
     not less than 12 months.''; and
       (5) in subparagraph (F), as redesignated by paragraph (3), 
     by striking ``(D)'' and inserting ``(E)''.
       (b) Changes to Childhood SSI Regulations.--
       (1) Modification to medical criteria for evaluation of 
     mental and emotional disorders.--The Commissioner of Social 
     Security shall modify sections 112.00C.2. and 

[[Page S 11924]]
     112.02B.2.c.(2) of appendix 1 to subpart P of part 404 of title 20, 
     Code of Federal Regulations, to eliminate references to 
     maladaptive behavior in the domain of personal/behavorial 
     function.
       (2) Discontinuance of individualized functional 
     assessment.--The Commissioner of Social Security shall 
     discontinue the individualized functional assessment for 
     children set forth in sections 416.924d and 416.924e of title 
     20, Code of Federal Regulations.
       (c) Effective Date; Regulations; Application to Current 
     Recipients.--
       (1) In general.--The amendments made by subsections (a) and 
     (b) shall apply to applicants for benefits for months 
     beginning on or after the date of the enactment of this Act, 
     without regard to whether regulations have been issued to 
     implement such amendments.
       (2) Regulations.--The Commissioner of Social Security shall 
     issue such regulations as the Commissioner determines to be 
     necessary to implement the amendments made by subsections (a) 
     and (b) not later than 60 days after the date of the 
     enactment of this Act.
       (3) Application to current recipients.--
       (A) Eligibility determinations.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall redetermine the eligibility of any 
     individual under age 18 who is receiving supplemental 
     security income benefits based on a disability under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     may terminate by reason of the amendments made by subsection 
     (a) or (b). With respect to redeterminations under this 
     subparagraph--
       (i) section 1614(a)(4) of the Social Security Act (42 
     U.S.C. 1382c(a)(4)) shall not apply;
       (ii) the Commissioner of Social Security shall apply the 
     eligibility criteria for new applicants for benefits under 
     title XVI of such Act; and
       (iii) the Commissioner shall give such redeterminations 
     priority over all other reviews under such title.
       (B) Grandfather provision.--The amendments made by 
     subsections (a) and (b), and the redetermination under 
     subparagraph (A), shall only apply with respect to the 
     benefits of an individual described in subparagraph (A) for 
     months beginning on or after January 1, 1997.
       (C) Notice.--Not later than 90 days after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall notify an individual described in subparagraph (A) of 
     the provisions of this paragraph.

     SEC. 612. ELIGIBILITY REDETERMINATIONS AND CONTINUING 
                   DISABILITY REVIEWS.

       (a) Continuing Disability Reviews Relating to Certain 
     Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), 
     as redesignated by section 611(a)(3), is amended--
       (1) by inserting ``(i)'' after ``(H)''; and
       (2) by adding at the end the following new clause:
       ``(ii)(I) Not less frequently than once every 3 years, the 
     Commissioner shall review in accordance with paragraph (4) 
     the continued eligibility for benefits under this title of 
     each individual who has not attained 18 years of age and is 
     eligible for such benefits by reason of an impairment (or 
     combination of impairments) which may improve (or, which is 
     unlikely to improve, at the option of the Commissioner).
       ``(II) A parent or guardian of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.''.
       (b) Disability Eligibility Redetermi nations Required for 
     SSI Recipients Who Attain 18 Years of Age.--
       (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsection (a), is amended by 
     adding at the end the following new clause:
       ``(iii) If an individual is eligible for benefits under 
     this title by reason of disability for the month preceding 
     the month in which the individual attains the age of 18 
     years, the Commissioner shall redetermine such eligibility--
       ``(I) during the 1-year period beginning on the 
     individual's 18th birthday; and
       ``(II) by applying the criteria used in determining the 
     initial eligibility for applicants who have attained the age 
     of 18 years.
     With respect to a redetermination under this clause, 
     paragraph (4) shall not apply and such redetermination shall 
     be considered a substitute for a review or redetermination 
     otherwise required under any other provision of this 
     subparagraph during that 1-year period.''.
       (2) Conforming repeal.--Section 207 of the Social Security 
     Independence and Program Improvements Act of 1994 (42 U.S.C. 
     1382 note; 108 Stat. 1516) is hereby repealed.
       (c) Continuing Disability Review Required for Low Birth 
     Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsections (a) and (b), is 
     amended by adding at the end the following new clause:
       ``(iv)(I) Not later than 12 months after the birth of an 
     individual, the Commissioner shall review in accordance with 
     paragraph (4) the continuing eligibility for benefits under 
     this title by reason of disability of such individual whose 
     low birth weight is a contributing factor material to the 
     Commissioner's determination that the individual is disabled.
       ``(II) A review under subclause (I) shall be considered a 
     substitute for a review otherwise required under any other 
     provision of this subparagraph during that 12-month period.
       ``(III) A parent or guardian of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.''.
       (d) Medicaid for Children Showing Improvement.--Section 
     1634 (42 U.S.C. 1383c) is amended by adding at the end the 
     following new subsection:
       ``(f) In the case of any individual who has not attained 18 
     years of age and who has been determined to be ineligible for 
     benefits under this title--
       ``(1) because of medical improvement following a continuing 
     disability review under section 1631(a)(3)(H), or
       ``(2) as the result of the application of section 611(b)(2) 
     of the Work First Act of 1995,
     such individual shall continue to be considered eligible for 
     such benefits for purposes of determining eligibility under 
     title XIX if such individual is not otherwise eligible for 
     medical assistance under such title and, in the case of an 
     individual described in paragraph (1), such assistance is 
     needed to maintain functional gains, and, in the case of an 
     individual described in paragraph (2), such assistance would 
     be available if such section 611(b)(2) had not been 
     enacted.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.

     SEC. 613. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

       (a) Tightening of Representative Payee Requirements.--
       (1) Clarification of role.--Section 1631(a)(2)(B)(ii) (42 
     U.S.C. 1383(a)(2)(B)(ii)) is amended by striking ``and'' at 
     the end of subclause (II), by striking the period at the end 
     of subclause (IV) and inserting ``; and'', and by adding 
     after subclause (IV) the following new subclause:
       ``(V) advise such person through the notice of award of 
     benefits, and at such other times as the Commissioner of 
     Social Security deems appropriate, of specific examples of 
     appropriate expenditures of benefits under this title and the 
     proper role of a representative payee.''.
       (2) Documentation of expenditures required.--
       (A) In general.--Subparagraph (C)(i) of section 1631(a)(2) 
     (42 U.S.C. 1383(a)(2)) is amended to read as follows:
       ``(C)(i) In any case where payment is made to a 
     representative payee of an individual or spouse, the 
     Commissioner of Social Security shall--
       ``(I) require such representative payee to document 
     expenditures and keep contemporaneous records of transactions 
     made using such payment; and
       ``(II) implement statistically valid procedures for 
     reviewing a sample of such contemporaneous records in order 
     to identify instances in which such representative payee is 
     not properly using such payment.''.
       (B) Conforming amendment with respect to parent payees.--
     Clause (ii) of section 1631(a)(2)(C) (42 U.S.C. 
     1383(a)(2)(C)) is amended by striking ``Clause (i)'' and 
     inserting ``Subclauses (II) and (III) of clause (i)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to benefits paid after the date of the enactment 
     of this Act.
       (b) Dedicated Savings Accounts.--
       (1) In general.--Section 1631(a)(2)(B) (42 U.S.C. 
     1383(a)(2)(B)) is amended by adding at the end the following 
     new clause:
       ``(xiv) Notwithstanding clause (x), the Commissioner of 
     Social Security may, at the request of the representative 
     payee, pay any lump sum payment for the benefit of a child 
     into a dedicated savings account that could only be used to 
     purchase for such child--
       ``(I) education and job skills training;
       ``(II) special equipment or housing modifications or both 
     specifically related to, and required by the nature of, the 
     child's disability; and
       ``(III) appropriate therapy and rehabilitation.''.
       (2) Disregard of trust funds.--Section 1613(a) (42 U.S.C. 
     1382b) is amended--
       (A) by striking ``and'' at the end of paragraph (9),
       (B) by striking the period at the end of paragraph (10) the 
     first place it appears and inserting a semicolon,
       (C) by redesignating paragraph (10) the second place it 
     appears as paragraph (11) and striking the period at the end 
     of such paragraph and inserting ``; and'', and
       (D) by inserting after paragraph (11), as so redesignated, 
     the following new paragraph:
       ``(12) all amounts deposited in, or interest credited to, a 
     dedicated savings account described in section 
     1631(a)(2)(B)(xiv).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to payments made after the date of the enactment 
     of this Act.
     
[[Page S 11925]]

   Subtitle C--Studies Regarding Supplemental Security Income Program

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

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

     ``SEC. 1636. ANNUAL REPORT ON PROGRAM.

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

     SEC. 622. IMPROVEMENTS TO DISABILITY EVALUATION.

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

     SEC. 623. STUDY OF DISABILITY DETERMINATION PROCESS.

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

     SEC. 324. STUDY BY GENERAL ACCOUNTING OFFICE.

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

     SEC. 631. ESTABLISHMENT.

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

     SEC. 632. DUTIES OF THE COMMISSION.

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

     SEC. 633. MEMBERSHIP.

       (a) Number and Appointment.--
       (1) In general.--The Commission shall be composed of 15 
     members, of whom--
       (A) five shall be appointed by the President, of whom not 
     more than 3 shall be of the same major political party;
       (B) three shall be appointed by the Majority Leader of the 
     Senate;
       (C) two shall be appointed by the Minority Leader of the 
     Senate;
       (D) three shall be appointed by the Speaker of the House of 
     Representatives; and
       (E) two shall be appointed by the Minority Leader of the 
     House of Representatives.
       (2) Representation.--The Commission members shall be chosen 
     based on their education, training, or experience. In 
     appointing individuals as members of the Commission, the 
     President and the Majority and Minority Leaders of the Senate 
     and the Speaker and Minority Leader of the House of 
     Representatives shall seek to ensure that the membership of 
     the Commission reflects the diversity of individuals with 
     disabilities in the United States.
       (b) Comptroller General.--The Comptroller General shall 
     serve on the Commission as an ex officio member of the 
     Commission to advise and oversee the methodology and approach 
     of the study of the Commission.
       (c) Prohibition Against Officer or Employee.--No officer or 
     employee of any government shall be appointed under 
     subsection (a).
       (d) Deadline for Appointment; Term of Appointment.--Members 
     of the Commission shall be appointed not later than 60 days 
     after the date of the enactment of this Act. The members 
     shall serve on the Commission for the life of the Commission.

[[Page S 11926]]

       (e) Meetings.--The Commission shall locate its headquarters 
     in the District of Columbia, and shall meet at the call of 
     the Chairperson, but not less than 4 times each year during 
     the life of the Commission.
       (f) Quorum.--Ten members of the Commission shall constitute 
     a quorum, but a lesser number may hold hearings.
       (g) Chairperson and Vice Chairperson.--Not later than 15 
     days after the members of the Commission are appointed, such 
     members shall designate a Chairperson and Vice Chairperson 
     from among the members of the Commission.
       (h) Continuation of Membership.--If a member of the 
     Commission becomes an officer or employee of any government 
     after appointment to the Commission, the individual may 
     continue as a member until a successor member is appointed.
       (i) Vacancies.--A vacancy on the Commission shall be filled 
     in the manner in which the original appointment was made not 
     later than 30 days after the Commission is given notice of 
     the vacancy.
       (j) Compensation.--Members of the Commission shall receive 
     no additional pay, allowances, or benefits by reason of their 
     service on the Commission.
       (k) Travel Expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.

     SEC. 634. STAFF AND SUPPORT SERVICES.

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

     SEC. 635. POWERS OF COMMISSION.

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

     SEC. 636. REPORTS.

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

     SEC. 637. TERMINATION.

       The Commission shall terminate on the date that is 2 years 
     after the date on which the members of the Commission have 
     met and designated a Chairperson and Vice Chairperson.
               TITLE VII--PROVISIONS RELATING TO SPONSORS

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

       (a) Federal and Federally-Assisted Programs.--
       (1) Program eligibility criteria.--
       (A) Temporary employment assistance.--
       (i) In general.--Section 402(c) of the Social Security Act, 
     as added by section 101(a) and amended by section 401, is 
     amended by redesignating paragraphs (2) through (7) as 
     paragraphs (3) through (8), and by inserting after paragraph 
     (1) the following new paragraph:
       ``(2) Alien status.--In determining the eligibility of a 
     family for assistance, the State plan shall provide that no 
     assistance shall be furnished to any family member under the 
     plan who is not--
       ``(A) a citizen or national of the United States, or
       ``(B) a qualified alien (as defined in section 
     1101(a)(10)), provided that such alien is not disqualified 
     from receiving assistance under the State plan by or pursuant 
     to section 210(f) or 245A(h) of the Immigration and 
     Nationality Act or any other provision of law.''.
       (ii) Conforming amendment.--Section 402(d)(1) of the Social 
     Security Act, as added by section 101(a), is amended by 
     striking ``any individual'' and inserting ``any individual 
     (including any family member described in subsection 
     (c)(2))''.
       (B) Supplemental security income.--Section 1614(a)(1)(B)(i) 
     (42 U.S.C. 1382c(a)(1)(B)(i)) is amended to read as follows:
       ``(B)(i) is a resident of the United States, and is either 
     (I) a citizen or national of the United States, or (II) a 
     qualified alien (as defined in section 1101(a)(10)), or''.
       (C) Medicaid--
       (i) In general.--Section 1903(v)(1) (42 U.S.C. 1396b(v)(1)) 
     is amended to read as follows:
       ``(v)(1) Notwithstanding the preceding provisions of this 
     section--
       ``(A) no payment may be made to a State under this section 
     for medical assistance furnished to an individual who is 
     disqualified from receiving such assistance by or pursuant to 
     section 210(f) or 245A(h) of the Immigration and Nationality 
     Act or any other provision of law, and
       ``(B) except as provided in paragraph (2), no such payment 
     may be made for medical assistance furnished to an individual 
     who is not--
       ``(i) a citizen or national of the United States, or
       ``(ii) a qualified alien (as defined in section 
     1101(a)(10)).''.
       (ii) Conforming amendments.--

       (I) Section 1903(v)(2) (42 U.S.C. 1396b(v)(2)) is amended 
     by striking ``paragraph (1)'' and inserting ``paragraph 
     (1)(B)'', and by striking ``alien'' each place it appears and 
     inserting ``individual''.
       (II) Section 1902(a) (42 U.S.C. 1396a(a)) is amended in the 
     last sentence by striking ``alien'' and all that follows and 
     inserting ``individual who is not (A) a citizen or national 
     of the United States, or (B) a qualified alien (as defined in 
     section 1101(a)(10)) only in accordance with section 
     1903(v).''.
       (III) Section 1902(b)(3) (42 U.S.C. 1396a(b)(3)) is amended 
     by inserting ``or national'' after ``citizen''.

       (2) Qualified alien defined.--Section 1101(a) (42 U.S.C. 
     1301(a)) is amended by adding at the end the following new 
     paragraph:
       ``(10) The term `qualified alien' means an alien--
       ``(A) who is lawfully admitted for permanent residence 
     within the meaning of section 101(a)(20) of the Immigration 
     and Nationality Act;
       ``(B) who is admitted as a refugee pursuant to section 207 
     of such Act;
       ``(C) who is granted asylum pursuant to section 208 of such 
     Act;
       ``(D) whose deportation is withheld pursuant to section 
     243(h) of such Act;
       ``(E) whose deportation is suspended pursuant to section 
     244 of such Act;
       ``(F) who is granted conditional entry pursuant to section 
     203(a)(7) of such Act as in effect prior to April 1, 1980;
       ``(G) who is lawfully admitted for temporary residence 
     pursuant to section 210 or 245A of such Act;

[[Page S 11927]]

       ``(H) who is within a class of aliens lawfully present 
     within the United States pursuant to any other provision of 
     such Act, provided that--
       ``(i) the Attorney General determines that the continued 
     presence of such class of aliens serves a humanitarian or 
     other compelling public interest, and
       ``(ii) the Secretary determines that such interest would be 
     further served by treating each alien within such class as a 
     `qualified alien' for purposes of this Act; or
       ``(I) who is the spouse or unmarried child under 21 years 
     of age of a citizen of the United States, or the parent of 
     such a citizen if the citizen is 21 years of age or older, 
     and with respect to whom an application for adjustment to 
     lawful permanent residence is pending;
     such status not having changed.''.
       (3) Conforming amendment.--Section 244A(f)(1) of the 
     Immigration and Nationality Act (8 U.S.C. 1254a(f)(1)) is 
     amended by inserting ``and shall not be considered to be a 
     `qualified alien' within the meaning of section 1101(a)(10) 
     of the Social Security Act'' immediately before the 
     semicolon.
       (b) State and Local Programs.--A State or political 
     subdivision therein may provide that an alien is not eligible 
     for any program of assistance based on need that is furnished 
     by such State or political subdivision unless such alien is a 
     ``qualified alien'' within the meaning of section 1101(a)(10) 
     of the Social Security Act (as added by subsection (a)(2) of 
     this section).
       (c) Effective Date.--
       (1) The amendments made by subsection (a) shall apply with 
     respect to benefits payable on the basis of any application 
     filed after September 30, 1995.
       (2) Subsection (b) shall take effect on October 1, 1995.

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

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

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

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


           ``requirements for sponsor's affidavit of support

       ``Sec. 213A. (a) Enforceability.--
       ``(1) In general.--No affidavit of support may be accepted 
     by the Attorney General or by any consular officer to 
     establish that an alien is not excludable under section 
     212(a)(4) unless such affidavit is executed as a contract--
       ``(A) which, for not more than 5 years after the date the 
     alien last receives any such cash benefit, is legally 
     enforceable against the sponsor by the Federal Government, by 
     a State, or by any political subdivision of a State, 
     providing cash benefits under a public cash assistance 
     program (as defined in subsection (f)(2)); and
       ``(B) in which the sponsor agrees to submit to the 
     jurisdiction of any Federal or State court for the purpose of 
     actions brought under subsection (e)(2).
       ``(2) Expiration of liability.--Such contract shall only 
     apply with respect to cash benefits described in paragraph 
     (1)(A) provided to an alien before the earliest of the 
     following:
       ``(A) Citizenship.--The date the alien becomes a citizen of 
     the United States under chapter 2 of title III.
       ``(B) Veteran.--The first date the alien is a veteran (as 
     defined in section 101 of title 38, United States Code) with 
     a discharge characterized as an honorable discharge.
       ``(C) Payment of social security taxes.--The first date as 
     of which there has been paid with respect to the self-
     employment income or employment of the alien, or of a parent 
     or spouse of the alien, taxes under chapter 2 or chapter 21 
     of the Internal Revenue Code of 1986 in each of 20 different 
     calendar quarters.
       ``(3) Nonapplication during certain periods.--Such contract 
     also shall not apply with respect to cash benefits described 
     in paragraph (1)(A) provided during any period in which the 
     alien is--
       ``(A) on active duty (other than active duty for training) 
     in the Armed Forces of the United States, or
       ``(B) the spouse or unmarried dependent child of an 
     individual described in paragraph (2)(A) or subparagraph (A) 
     of this paragraph;
       ``(b) Forms.--Not later than 90 days after the date of the 
     enactment of this section, the Attorney General, in 
     consultation with the Secretary of State and the Secretary of 
     Health and Human Services, shall formulate an affidavit of 
     support consistent with the provisions of this section.
       ``(c) Notification of Change of Address.--
       ``(1) Requirement.--The sponsor shall notify the Federal 
     Government and the State in which the sponsored alien is 
     currently resident within 30 days of any change of address of 
     the sponsor during the period specified in subsection 
     (a)(1)(A).
       ``(2) Enforcement.--Any person subject to the requirement 
     of paragraph (1) who fails to satisfy such requirement shall 
     be subject to a civil penalty of--
       ``(A) not less than $250 or more than $2,000, or
       ``(B) if such failure occurs with knowledge that the 
     sponsored alien has received any benefit under any means-
     tested public benefits program, not less than $2,000 or more 
     than $5,000.
       ``(d) Reimbursement of Government Expenses.--
       ``(1) Request for reimbursement.--
       ``(A) In general.--Upon notification that a sponsored alien 
     has received any cash benefits described in subsection 
     (a)(1)(A), the appropriate Federal, State, or local official 
     shall request reimbursement by the sponsor in the amount of 
     such cash benefits.
       ``(B) Regulations.--The Attorney General, in consultation 
     with the Secretary of Health and Human Services, shall 
     prescribe such regulations as may be necessary to carry out 
     subparagraph (A).
       ``(2) Initiation of action.--If, not later than 45 days 
     after requesting reimbursement, the appropriate Federal, 
     State, or local agency has not received a response from the 
     sponsor indicating a willingness to commence payments, an 
     action may be brought against the sponsor pursuant to the 
     affidavit of support.
       ``(3) Failure to abide by repayment terms.--If the sponsor 
     fails to abide by the repayment terms established by such 
     agency, the agency may, not later than 60 days after such 
     failure, bring an action against the sponsor pursuant to the 
     affidavit of support.
       ``(4) Limitation on actions.--No cause of action may be 
     brought under this subsection later than 5 years after the 
     date the alien last received any cash benefit described in 
     subsection (a)(1)(A).
       ``(f) Definitions.--For the purposes of this section:
       ``(1) Sponsor.--The term `sponsor' means an individual 
     who--
       ``(A) is a citizen or national of the United States or an 
     alien who is lawfully admitted to the United States for 
     permanent residence;
       ``(B) is 18 years of age or over; and
       ``(C) is domiciled in any State.
       ``(2) Public cash assistance program.--The term `public 
     cash assistance program' means a program of the Federal 
     Government or of a State or political subdivision of a State 
     that provides direct cash assistance for the purpose of 
     income maintenance and in which the eligibility of an 
     individual, household, or family eligibility unit for cash 
     benefits under the program, or the amount of such cash 
     benefits, or both are determined on the basis of income, 
     resources, or financial need of the individual, household, or 
     unit. Such term does not include any program insofar as it 
     provides medical, housing, education, job training, food, or 
     in-kind assistance or social services.''.
       (b) Clerical Amendment.--The table of contents of such Act 
     is amended by inserting after the item relating to section 
     213 the following:

``Sec. 213A. Requirements for sponsor's affidavit of support.''.

       (c) Effective Date.--Subsection (a) of section 213A of the 
     Immigration and Nationality Act, as added by subsection (a) 
     of this section, shall apply to affidavits of support 
     executed on or after a date specified by the Attorney 
     General, which date shall be not earlier than 60 days (and 
     not later than 90 days) after the date the Attorney General 
     formulates the form for such affidavits under subsection (b) 
     of such section 213A.

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

       (A) In General.--Section 212(a)(4) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(4)) is amended to read as 
     follows:
       ``(4) Public charge and affidavits of support.--

[[Page S 11928]]

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

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

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

     SEC. 802. CERTIFICATION PERIOD.

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

     SEC. 803. EXPANDED DEFINITION OF COUPON.

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

     SEC. 804. TREATMENT OF MINORS.

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

     SEC. 805. ADJUSTMENT TO THRIFTY FOOD PLAN.

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

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

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

     SEC. 807. ENERGY ASSISTANCE COUNTED AS INCOME.

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

     SEC. 808. EXCLUSION OF CERTAIN JTPA INCOME.

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

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

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

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

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

     SEC. 811. EXCLUSION OF LIFE INSURANCE PROCEEDS.

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

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

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

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

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

     SEC. 814. STRENGTHENED WORK REQUIREMENTS.

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

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

       ``(iv) voluntarily quits a job without good cause.
       ``(B) Household ineligibility.--If an individual who is the 
     head of a household becomes ineligible to participate in the 
     food stamp program under subparagraph (A), the household 
     shall, at the option of the State agency, become ineligible 
     to participate in the food stamp program for a period not to 
     exceed the period of the individual's ineligibility.
       ``(C) Duration of ineligibility.--
       ``(i) First refusal.--The first time that an individual 
     becomes ineligible to participate in the food stamp program 
     under clause (i), 

[[Page S 11929]]
     (ii), or (iii) of subparagraph (A), the individual shall remain 
     ineligible until the individual becomes eligible under this 
     Act (including subparagraph (A)).
       ``(ii) Second refusal.--The second time that an individual 
     becomes ineligible to participate in the food stamp program 
     under clause (i), (ii), or (iii) of subparagraph (A), the 
     individual shall remain ineligible until the later of--

       ``(I) the date the individual becomes eligible under this 
     Act (including subparagraph (A)); or
       ``(II) the date that is 3 months after the date the 
     individual became ineligible under subparagraph (A).

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

       ``(I) the date the individual becomes eligible under this 
     Act (including subparagraph (A)); or
       ``(II) the date that is 6 months after the date the 
     individual became ineligible under subparagraph (A).

       ``(iv) Voluntary quit.--On the date that an individual 
     becomes ineligible under subparagraph (A)(iv), the individual 
     shall remain ineligible until--

       ``(I) in the case of the first time the individual becomes 
     ineligible, the date that is 3 months after the date the 
     individual became ineligible; and
       ``(II) in the case of the second or subsequent time the 
     individual becomes ineligible, the date that is 6 months 
     after the date the individual became ineligible.

       ``(D) Administration.--
       ``(i) Becoming eligible.--

       ``(I) Waiting period.--A State agency may consider an 
     individual ineligible to participate in the food stamp 
     program not earlier than 14 days after the date the 
     individual becomes ineligible to participate under clause 
     (i), (ii), or (iii) of subparagraph (A).
       ``(II) Remaining eligible.--If an individual remains 
     eligible to participate in the food stamp program under this 
     Act (including subparagraph (A)) at the end of the earliest 
     date for ineligibility under subclause (I), the State agency 
     shall consider the individual to have maintained eligibility 
     during the period preceding the earliest date for 
     ineligibility.

       ``(ii) Good cause.--In this paragraph, the term `good 
     cause' includes the lack of adequate child care for a 
     dependent child under the age of 12.
       ``(iii) Strike against the government.--For the purpose of 
     subparagraph (A)(iv), an employee of the Federal Government, 
     a State, or a political subdivision of a State, who is 
     dismissed for participating in a strike against the Federal 
     Government, the State, or the political subdivision of the 
     State shall be considered to have voluntarily quit without 
     good cause.
       ``(iv) Selecting a head of household.--

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

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

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

       (2) in paragraph (4)(H)(i), by striking ``The Secretary'' 
     and all that follows through ``State agency shall'' and 
     inserting ``A State agency may''.
       (b) Workfare.--Section 20(f) (7 U.S.C. 2029(f)) is amended 
     by striking ``neither that'' and all that follows through 
     ``shall be eligible'' and inserting ``the person and, at the 
     option of a State agency, the household of which the person 
     is a member, shall be ineligible''.
       (c) Conforming Amendment.--The second sentence of section 
     17(b)(2) (7 U.S.C. 2026(b)(2)) is amended by striking 
     ``6(d)(1)(i)'' and inserting ``6(d)(1)(A)(i)''.

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

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

       ``(I) subject to subsection (i);
       ``(II) not employed at least an average of 20 hours per 
     week;
       ``(III) not participating in a workfare program under 
     section 20 (or a comparable State or local program); and
       ``(IV) not subject to a waiver under subsection (i)(4).''.

       (c) Enhanced Employment and Training Program.--Section 
     16(h)(1) (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A), by striking ``$75,000,000 for each 
     of the fiscal years 1991 through 1995'' and inserting 
     ``$150,000,000 for each of fiscal years 1996 through 2000'';
       (2) by striking subparagraphs (B), (C), (E), and (F);
       (3) by redesignating subparagraph (D) as subparagraph (B); 
     and
       (4) in subparagraph (B) (as redesignated by paragraph (3)), 
     by striking ``for each'' and all that follows through ``of 
     $60,000,000'' and inserting ``, the Secretary shall allocate 
     funding''.

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

       Section 6 (7 U.S.C. 2015) (as amended by section 815) is 
     further amended by adding at the end the following:
       ``(j) Disqualification for Participating in 2 or More 
     States.--An individual shall be ineligible to participate in 
     the food stamp program as a member of any household during a 
     10-year period beginning on the date the individual is found 
     by a State to have made, or is convicted in Federal or State 
     court of having made, a fraudulent statement or 
     representation with respect to the place of residence of the 
     individual to receive benefits simultaneously from 2 or more 
     States under--
       ``(1) the food stamp program;
       ``(2) a State program funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.) or under 
     title XIX of the Act (42 U.S.C. 1396 et seq.); or
       ``(3) the supplemental security income program under title 
     XVI of the Act (42 U.S.C. 1381 et seq.).''.

     SEC. 817. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

       Section 6 (7 U.S.C. 2015) (as amended by section 816) is 
     further amended by adding at the end the following:
       ``(k) Disqualification for Child Support Arrears.--
       ``(1) In general.--At the option of a State agency, except 
     as provided in paragraph (2), no individual shall be eligible 
     to participate 

[[Page S 11930]]
     in the food stamp program as a member of any household during any month 
     that the individual is delinquent in any payment due under a 
     court order for the support of a child of the individual.
       ``(2) Exceptions.--Paragraph (1) shall not apply if--
       ``(A) a court is allowing the individual to delay payment; 
     or
       ``(B) the individual is complying with a payment plan 
     approved by a court or the State agency designated under part 
     D of title IV of the Social Security Act (42 U.S.C. 651 et 
     seq.) to provide support for the child of the individual.''.

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

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

     SEC. 819. LIMITING ADJUSTMENT OF MINIMUM BENEFIT.

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

     SEC. 820. BENEFITS ON RECERTIFICATION.

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

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

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

     SEC. 822. COORDINATION OF EMPLOYMENT AND TRAINING PROGRAMS.

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

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

       Section 8 (7 U.S.C. 2019) is amended by striking subsection 
     (e) and inserting the following:
       ``(e) Simplification of Application Procedures and 
     Standardization of Benefits.--
       ``(1) In general.--On the request of a State agency, the 
     Secretary may approve Statewide, or for 1 or more project 
     areas, procedures and standards consistent with this Act 
     under which--
       ``(A) a household in which all members of the household are 
     receiving benefits under a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) may be considered to have satisfied the application, 
     interview, and verification requirements under section 11(e);
       ``(B) the State agency may use income information obtained 
     and used under a State program funded under part A of title 
     IV of the Social Security Act to determine the gross 
     nonexcluded income of the household under this Act;
       ``(C) the State agency may standardize the amount of the 
     deductions under section 5(e), except that a deduction may 
     not be allowed for dependent care costs or earned income if 
     the State program funded under part A of title IV of the 
     Social Security Act allows an income exclusion for the costs 
     or income; and
       ``(D) the State agency may elect to apply different shelter 
     standards to a household that receives a housing subsidy and 
     a household that does not receive a housing subsidy.
       ``(2) Income includes assistance.--The gross nonexcluded 
     income of a household determined under paragraph (1)(B) shall 
     include the assistance provided under a State program funded 
     under part A of title IV of the Social Security Act.
       ``(3) Household size.--A State agency shall base the value 
     of the allotment provided to a household under this paragraph 
     on household size.

[[Page S 11931]]

       ``(4) Alternative plan.--The Secretary may approve an 
     alternative plan submitted by a State agency that is 
     consistent with this Act for simplifying application 
     procedures or standardizing income or benefit determinations 
     for a household in which all members of the household are 
     receiving benefits under a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.).
       ``(5) No increased federal costs.--
       ``(A) Application.--On submission of a request for approval 
     under paragraph (1) or (4), a State agency shall assure the 
     Secretary that approval will not increase Federal costs.
       ``(B) Reduction of costs.--If Federal costs are increased 
     as a result of a State agency carrying out this subsection, 
     the State agency shall take prompt action to reduce costs to 
     the level that existed prior to carrying out this 
     subsection.''.

     SEC. 824. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

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

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

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

     SEC. 826. INFORMATION FOR VERIFYING ELIGIBILITY FOR 
                   AUTHORIZATION.

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

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

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

     SEC. 828. MANDATORY CLAIMS COLLECTION METHODS.

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

     SEC. 829. STATE AUTHORIZATION TO ASSIST LAW ENFORCEMENT 
                   OFFICERS IN LOCATING FUGITIVE FELONS.

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

     SEC. 830. EXPEDITED SERVICE.

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

     SEC. 831. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.

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

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

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

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

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

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

       Section 12 (7 U.S.C. 2021) (as amended by section 833) is 
     amended by adding at the end the following:
       ``(h) Falsified Applications.--
       ``(1) In general.--The Secretary shall issue regulations 
     providing for the permanent disqualification of a retail food 
     store, or wholesale food concern, that knowingly submits an 
     application for approval to accept and redeem coupons that 
     contains false information about a substantive matter that 
     was a basis for approving the application.
       ``(2) Review.--A disqualification under paragraph (1) shall 
     be subject to administrative and judicial review under 
     section 14, except that the disqualification shall remain in 
     effect pending the review.''.
     
[[Page S 11932]]


     SEC. 835. EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR 
                   VIOLATIONS.

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

     SEC. 836. EXTENDING CLAIMS RETENTION RATES.

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

     SEC. 837. NUTRITION ASSISTANCE FOR PUERTO RICO.

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

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

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

     SEC. 839. CHILD AND ADULT CARE FOOD PROGRAM.

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

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

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

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

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

       ``(I) In general.--

       ``(aa) Factors.--Except as provided in subclause (II), with 
     respect to meals or supplements served under this clause by a 
     family or group day care home that does not meet the criteria 
     set forth in clause (ii)(I), the reimbursement factors shall 
     be $1 for lunches and suppers, 40 cents for breakfasts, and 
     20 cents for supplements.
       ``(bb) Adjustments.--The factors shall be adjusted on July 
     1, 1997, and each July 1 thereafter, to reflect changes in 
     the Consumer Price Index for food at home for the most recent 
     12-month period for which the data are available. The 
     reimbursement factors under this item shall be rounded down 
     to the nearest lower cent increment and based on the 
     unrounded adjustment for the preceding 12-month period.
       ``(cc) Reimbursement.--A family or group day care home 
     shall be provided reimbursement factors under this subclause 
     without a 

[[Page S 11933]]
     requirement for documentation of the costs described in clause (i), 
     except that reimbursement shall not be provided under this 
     subclause for meals or supplements served to the children of 
     a person acting as a family or group day care home provider 
     unless the children meet the eligibility standards for free 
     or reduced price meals under section 9.

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

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

       ``(III) Information and determinations.--

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

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

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

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

       (2) Sponsor payments.--Section 17(f)(3)(B) of the Act is 
     amended--
       (A) by striking the period at the end of the second 
     sentence and all that follows through the end of the 
     subparagraph and inserting the following:``, except that the 
     adjustment that otherwise would occur on July 1, 1996, shall 
     be made on August 1, 1996. The maximum allowable levels for 
     administrative expense payments shall be rounded to the 
     nearest lower dollar increment and based on the unrounded 
     adjustment for the preceding 12-month period.'';
       (B) by striking ``(B)'' and inserting ``(B)(i)''; and
       (C) by adding at the end the following new clause:
       ``(ii) The maximum allowable level of administrative 
     expense payments shall be adjusted by the Secretary--
       ``(I) to increase by 7.5 percent the monthly payment to 
     family or group day care home sponsoring organizations both 
     for tier I family or group day care homes and for those tier 
     II family or group day care homes for which the sponsoring 
     organization administers a means test as provided under 
     subparagraph (A)(iii); and
       ``(II) to decrease by 7.5 percent the monthly payment to 
     family or group day care home sponsoring organizations for 
     family or group day care homes that do not meet the criteria 
     for tier I homes and for which a means test is not 
     administered.''.
       (3) Grants to states to provide assistance to family or 
     group day care homes.--Section 17(f)(3) of the Act is amended 
     by adding at the end the following:
       ``(D) Grants to states to provide assistance to family or 
     group day care homes.--
       ``(i) In general.--

       ``(I) Reservation.--From amounts made available to carry 
     out this section, the Secretary shall reserve $5,000,000 of 
     the amount made available for fiscal year 1996.
       ``(II) Purpose.--The Secretary shall use the funds made 
     available under subclause (I) to provide grants to States for 
     the purpose of providing--

       ``(aa) assistance, including grants, to family and day care 
     home sponsoring organizations and other appropriate 
     organizations, in securing and providing training, materials, 
     automated data processing assistance, and other assistance 
     for the staff of the sponsoring organizations; and
       ``(bb) training and other assistance to family and group 
     day care homes in the implementation of the amendments to 
     subparagraph (A) made by section 574(b)(1) of the Family 
     Self-Sufficiency Act of 1995.
       ``(ii) Allocation.--The Secretary shall allocate from the 
     funds reserved under clause (i)(II)--

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

       ``(iii) Retention of funds.--Of the amount of funds made 
     available to a State for a fiscal year under clause (i), the 
     State may retain not to exceed 30 percent of the amount to 
     carry out this subparagraph.
       ``(iv) Additional payments.--Any payments received under 
     this subparagraph shall be in addition to payments that a 
     State receives under subparagraph (A) (as amended by section 
     134(b)(1) of the Family Self-Sufficiency Act of 1995).''.
       (4) Provision of data.--Section 17(f)(3) of the Act (as 
     amended by paragraph (3)) is further amended by adding at the 
     end the following:
       ``(E) Provision of data to family or group day care home 
     sponsoring organizations.--
       ``(i) Census data.--The Secretary shall provide to each 
     State agency administering a child and adult care food 
     program under this section data from the most recent 
     decennial census survey or other appropriate census survey 
     for which the data are available showing which areas in the 
     State meet the requirements of subparagraph (A)(ii)(I)(aa). 
     The State agency shall provide the data to family or group 
     day care home sponsoring organizations located in the State.
       ``(ii) School data.--

       ``(I) In general.--A State agency administering the program 
     under this section shall annually provide to a family or 
     group day care home sponsoring organizations that request the 
     data, a list of schools serving elementary school children in 
     the State in which at least 50 percent of the children 
     enrolled are certified to receive free or reduced price 
     meals. State agencies administering the school lunch program 
     under this Act or the school breakfast program under the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall 
     collect such data annually and provide such data on a timely 
     basis to the State agency administering the program under 
     this section.
       ``(II) Use of data from preceding school year.--In 
     determining for a fiscal year or other annual period whether 
     a home qualifies as a tier I family or group day care home 
     under subparagraph (A)(ii)(I), the State agency administering 
     the program under this section, and a family or group day 
     care home sponsoring organization, shall use the most current 
     available data at the time of the determination.

       ``(iii) Duration of determination.--For purposes of this 
     section, a determination that a family or group day care home 
     is located in an area that qualifies the home as a tier I 
     family or group day care home (as the term is defined in 
     subparagraph (A)(ii)(I)), shall be in effect for 3 years 
     (unless the determination is made on the basis of census 
     data, in which case the determination shall remain in effect 
     until more recent census data are available) unless the State 
     agency determines that the area in which the home is located 
     no longer qualifies the home as a tier I family or group day 
     care home.''.
       (5) Conforming amendments.--Section 17(c) of the Act is 
     amended by inserting ``except as provided in subsection 
     (f)(3),'' after ``For purposes of this section,'' each place 
     it appears in paragraphs (1), (2), and (3).
       (c) Disallowing Meal Claims.--The fourth sentence of 
     section 17(f)(4) of the Act is amended by inserting 
     ``(including institutions that are not family or group day 
     care home sponsoring organizations)'' after ``institutions''.
       (d) Elimination of State Paperwork and Outreach Burden.--
     Section 17 of the Act is amended by striking subsection (k) 
     and inserting the following:
       ``(k) Training and Technical Assistance.--A State 
     participating in the program established under this section 
     shall provide sufficient training, technical assistance, and 
     monitoring to facilitate effective operation 

[[Page S 11934]]
     of the program. The Secretary shall assist the State in developing 
     plans to fulfill the requirements of this subsection.''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall become effective on the 
     date of enactment of this Act.
       (2) Improved targeting of day care home reimbursements.--
     The amendments made by paragraphs (1), (3), and (4) of 
     subsection (b) shall become effective on August 1, 1996.
       (3) Implementation.--The Secretary of Agriculture shall 
     issue regulations to implement the amendments made by 
     paragraphs (1), (2), (3), and (4) of subsection (b) and the 
     provisions of section 17(f)(3)(C) of the National School 
     Lunch Act (42 U.S.C. 1766(f)(3)(C)) not later than February 
     1, 1996. If such regulations are issued in interim form, 
     final regulations shall be issued not later than August 1, 
     1996.

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

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

     SEC. 901. EFFECTIVE DATE.

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

     SEC. 902. TREATMENT OF EXISTING WAIVERS.

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

     SEC. 903. EXPEDITED WAIVER PROCESS.

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

     SEC. 904. COUNTY WELFARE DEMONSTRATION PROJECT.

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

     SEC. 905. WORK REQUIREMENTS FOR STATE OF HAWAII.

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

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

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

     SEC. 907. STUDY BY THE CENSUS BUREAU.

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

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     United States not otherwise appropriated, the Secretary of the Treasury 
     shall pay to the Bureau of the Census $10,000,000 for each of 
     fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out 
     subsection (a).

     SEC. 908. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
                   TECHNICAL AND CONFORMING AMENDMENTS.

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

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