[Congressional Record Volume 141, Number 139 (Friday, September 8, 1995)]
[Senate]
[Pages S12968-S13133]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S 12968]]


                          AMENDMENTS SUBMITTED

                                 ______


                    THE WORK OPPORTUNITY ACT OF 1995

                                 ______


                   BINGAMAN AMENDMENTS NOS. 2483-2485

  Mr. BINGAMAN proposed three amendments to amendment No. 2280 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:

                           Amendment No. 2483

       Beginning with page 11, line 8, strike all through page 14, 
     line 16, and insert the following:

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

       ``(a) In General.--As used in this part, the term `eligible 
     State' means, with respect to a fiscal year, a State that has 
     submitted to the Secretary a single comprehensive State 
     Family Assistance Program Strategic Plan (hereafter referred 
     to in this section as the `State Plan') outlining a 5-year 
     strategy for the statewide program.
       ``(b) Family Assistance Program Strategic Plan Parts.--Each 
     State plan shall contain 2 parts:
       ``(1) 5-year plan.--The first part of the State plan shall 
     describe a 5-year strategic plan for the statewide program 
     designed to meet the State goals and reach the State 
     benchmarks for each of the essential program activities of 
     the family assistance program.
       ``(2) Annual certification.--The second part of the State 
     plan shall contain a certification by the chief executive 
     officer of the State that, during the fiscal year, the State 
     family assistance program will include each of the essential 
     program activities specified in subsection (h)(6).
       ``(c) Contents of the State Plan.--The State plan shall 
     include:
       ``(1) State goals.--A description of the goals of the 5-
     year plan, including outcome related goals of and benchmarks 
     for each of the essential program activities of the family 
     assistance program.
       ``(2) Current year plan.--A description of how the goals 
     and benchmarks described in paragraph (1) will be achieved, 
     or how progress toward the goals and benchmarks will be 
     achieved, during the fiscal year in which the plan has been 
     submitted.
       ``(3) Performance indicators.--A description of performance 
     indicators to be used in measuring or assessing the relevant 
     output service levels and outcomes of each of the essential 
     program activities and other relevant program activities.
       ``(4) External factors.--An identification of those key 
     factors external to the program and beyond the control of the 
     State that could significantly affect the attainment of the 
     goals and benchmarks.
       ``(5) Evaluation mechanisms.--A description of a mechanism 
     for conducting program evaluation, to be used to compare 
     actual results with the goals and benchmarks and designate 
     the results on a scale ranging from highly successful to 
     failing to reach the goals and benchmarks of the program.
       ``(6) Minimum participation rates.--A description of how 
     the minimum participation rates specified in section 404 will 
     be satisfied.
       ``(7) Estimate of expenditures.--An estimate of the total 
     amount of State or local expenditures under the program for 
     the fiscal year in which the plan is submitted.
       ``(d) Determinations.--The Secretary shall determine 
     whether a plan submitted pursuant to subsection (a) contains 
     the material required by subsection (b).
       ``(e) State Work Opportunity Planning Boards.--
       ``(1) In general.--A Governor of a State that receives a 
     grant under section 403 may establish a State Work 
     Opportunity Planning Board (referred to in this section as 
     ``the Board'') in accordance with this section.
       ``(2) Membership.--Membership of the Board shall include--
       ``(A) persons with leadership experience in private 
     business, industry, and voluntary organizations;
       ``(B) representatives of State departments or agencies 
     responsible for implementing and overseeing programs funded 
     under this title;
       ``(C) elected officials representing various jurisdictions 
     included in the State plan;
       ``(D) representatives of private and non-profit 
     organizations participating in implementation of the State 
     plan;
       ``(E) the general public; and
       ``(F) any other individuals and representatives of 
     community-based organizations that the Governor may 
     designate.
       ``(3) Chairperson.--The Board shall select a chairperson 
     from among the members of the Board.
       ``(4) Functions.--The functions of the Board shall 
     include--
       ``(A) advising the Governor and State legislature on the 
     development of the statewide family assistance program, the 
     State plan described in subsections (a) and (b), and the 
     State goals and State benchmarks;
       ``(B) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       ``(C) serving as a link between business, industry, labor, 
     non-profit and community-based organizations, and the 
     statewide system;
       ``(D) assisting in preparing annual reports required under 
     this part;
       ``(E) receiving and commenting on the State plan developed 
     under subsection (a); and
       ``(F) assisting in the monitoring and continuous 
     improvement of the performance of the State family assistance 
     program, including evaluation of the effectiveness of 
     activities and program funded under this title.
       On page 14, line 17, strike ``(b)'' and insert ``(f)''.
       On page 15, line 12, strike ``(c)'' and insert ``(g)''.
       On page 15, line 20, strike ``(d)'' and insert ``(h)''.
       On page 16, between lines 22 and 23, insert the following:
       ``(6) Essential program activities.--The term `essential 
     program activities' includes the following activities:
       ``(A) Assistance provided to needy families with not less 
     than 1 minor child (or any expectant family).
       ``(B) Work preparation and work experience activities for 
     parents or caretakers in needy families with not less than 1 
     minor child, including assistance in finding employment, 
     child care assistance, and other support services that the 
     State considers appropriate to enable such families to become 
     self-sufficient and leave the program.
       ``(C) The requirement for parents or caretakers receiving 
     assistance under the program to engage in work activities in 
     accordance with section 404 and to enter into a personal 
     responsibility contract in accordance with section 405(a).
       ``(D) The child protection program operated by the State in 
     accordance with part B.
       ``(E) The foster care and adoption assistance program 
     operated by the State in accordance with part E.
       ``(F) The child support enforcement program operated by the 
     State in accordance with part D.
       ``(G) A teenage pregnancy prevention program, including 
     efforts to reduce and prevent out-of-wedlock pregnancies.
       ``(H) Participation in the income and eligibility 
     verification system required by section 1137.
       ``(I) The establishment and operation of a privacy system 
     that restricts the use and disclosure of information about 
     individuals and families receiving assistance under the 
     program.
       ``(J) A certification identifying the State agencies or 
     entities administering the program.
       ``(K) The establishment and operation of a reporting system 
     for reports required under this part.
                                                                    ____


                           Amendment No. 2484

       At the end of section 201 of the amendment, add the 
     following new subsection:
       (d) Funding of Certain Programs for Drug Addicts and 
     Alcoholics.--
       (1) In general.--Out of any money in the Treasury not 
     otherwise appropriated, there are hereby appropriated--
       (A) for carrying out section 1971 of the Public Health 
     Service Act (as amended by paragraph (2) of this subsection), 
     $95,000,000 for each of the fiscal years 1997 through 2000; 
     and
       (B) for carrying out the medication development project to 
     improve drug abuse and drug treatment research (administered 
     through the National Institute on Drug Abuse), $5,000,000 for 
     each of the fiscal years 1997 through 2000.
       (2) Capacity expansion program regarding drug abuse 
     treatment.--Section 1971 of the Public Health Service Act (42 
     U.S.C. 300y) is amended--
       (A) in subsection (a)(1), by adding at the end the 
     following sentence: ``This paragraph is subject to subsection 
     (j).'';
       (B) by redesignating subsection (j) as subjection (k);
       (C) in subsection (j) (as so redesignated), by inserting 
     before the period the following: ``and for each of the fiscal 
     years 1995 through 2000;'' and
       (D) by inserting after subsection (i) the following 
     subsection:
       ``(j) Formula Grants for Certain Fiscal Years.--
       ``(1) In general.--For each of the fiscal years 1997 
     through 2000, the Director shall, for the purpose described 
     in subsection (a)(1), make a grant to each State that submits 
     to the Director an application in accordance with paragraph 
     (2). Such a grant for a State shall consist of the allotment 
     determined for the State under paragraph (3). For each of the 
     fiscal years 1997 through 2000, grants under this paragraph 
     shall be the exclusive grants under this section.
       ``(2) Requirements.--The Director may make a grant under 
     paragraph (1) only if, by the date specified by the Director, 
     the State submits to the Director an application for the 
     grant that is in such form, is made in such manner, and 
     contain such agreements, assurances, and information as the 
     Director determines to be necessary to carry out this 
     subsection, and if the application contains an agreement by 
     the State in accordance with the following:
       ``(A) The State will expend the grant in accordance with 
     the priority described in subsection (b)(1).
       ``(B) The State will comply with the conditions described 
     in each of subsections (c), (d), (g), and (h).
       ``(3) Allotment.--
       ``(A) For purposes of paragraph (1), the allotment under 
     this paragraph for a fiscal 

[[Page S 12969]]
     year shall, except as provided in subparagraph (B), be the product of--
       ``(i) the amount appropriated in section 601(d)(1)(A) of 
     the Work Opportunity Act of 1995 for the fiscal year, 
     together with any additional amounts appropriated to carry 
     out this section for the fiscal year; and
       ``(ii) the percentage determined for the State under he 
     formula established in section 1933(a).
       ``(B) Subsections (b) through (d) of section 1933 apply to 
     an allotment under subparagraph (A) to the same extent and in 
     the same manner as such subsections apply to an allotment 
     under subsection (a) of section 1933.''.
                                                                    ____


                           Amendment No. 2485

       On page 374, line 2, insert ``and not reserved under 
     paragraph (3)'' after ``734(b)(2)''.
       On page 374, between lines 21 and 22, insert the following:
       (3) Reservation for indian vocational education grants.--
     From amounts made available under section 734(b)(2) for a 
     fiscal year, the Secretary shall reserve $4,000,000 for such 
     year to award grants, to tribally controlled postsecondary 
     vocational institutions to enable such institutions to carry 
     out activities described in subsection (d), on the basis of a 
     formula that--
       (A) takes into consideration--
       (i) the costs of basic operational support at such 
     institutions; and
       (ii) the availability to such institutions of Federal funds 
     not provided under this paragraph for such costs; and
       (B) is consistent with the purpose of section 382 of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2397).
                                 ______


                        LEVIN AMENDMENT NO. 2486

  Mr. LEVIN proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra; as follows:

       On page 12, between lines 22 and 23, insert the following:
       ``(G) Community service.--Not later than 3 years after the 
     date of the enactment of the Work Opportunity Act of 1995, 
     should (and not later than 7 years after such date, shall) 
     offer to, and require participation by, a parent or caretaker 
     receiving assistance under the program who, after receiving 
     such assistance for 6 months--
       ``(i) is not exempt from work requirements; and
       ``(ii) is not engaged in work as determined under section 
     404(c),

     in community service employment, with minimum hours per week 
     and tasks to be determined by the State.
       On page 35, between lines 2 and 3, insert the following:
       ``(6) Certain community service excluded.--An individual 
     performing community service pursuant to the requirement 
     under section 402(a)(1)(G) shall be excluded from the 
     determination of a State's participation rate.
                                 ______


                    BREAUX AMENDMENTS NOS. 2487-2488

  Mr. BREAUX proposed two amendments to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra; as follows:

                           Amendment No. 2487

       On page 23, beginning on line 7, strike all through page 
     24, line 18, and insert the following:
       ``(5) Welfare partnership.--
       ``(A) In general.--the amount of the grant otherwise 
     determined under paragraph (1) for fiscal year 1997, 1998, 
     1999, or 2000 shall be reduced by the amount by which State 
     expenditures under the State program funded under this part 
     for the preceding fiscal year is less than 100 percent of 
     historic State expenditures.
       ``(B) Historic state expenditures.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `historic State expenditures' 
     means expenditures by a State under parts A and F of title IV 
     for fiscal year 1994, as in effect during such fiscal year.
       ``(ii) Hold harmless.--In no event shall the historic State 
     expenditures applicable to any fiscal year exceed the amount 
     which bears the same ratio to the amount determined under 
     clause (i) as--
       ``(I) the grant amount otherwise determined under paragraph 
     (1) of the preceding fiscal year (without regard to section 
     407), bears to
       ``(II) the total amount of Federal payments to the State 
     under section 403 for fiscal year 1994 (as in effect during 
     such fiscal year).
       ``(C) Determination of state expenditures for preceding 
     fiscal year.--
       ``(i) In general.--For purposes of this paragraph, the 
     expenditures of a State under the State program funded under 
     this part for a preceding fiscal year shall be equal to the 
     sum of the State's expenditures under the program in the 
     preceding fiscal year for--
       ``(I) cash assistance;
       ``(II) child care assistance;
       ``(III) education, job training, and work; and
       ``(IV) administrative costs.
       ``(ii) Transfers from other state and local programs.--In 
     determining State expenditures under clause (i), such 
     expenditures shall not include funding supplanted by 
     transfers from other State and local programs.
       ``(D) Exclusion of federal amounts.--For purposes of this 
     paragraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
                                                                    ____


                           Amendment No. 2488

       On page 23, beginning on line 7, strike all through page 
     24, line 18, and insert the following:
       ``(5) Welfare partnership.--
       ``(A) In general.--The amount of the grant otherwise 
     determined under paragraph (1) for fiscal year 1997, 1998, 
     1999, or 2000 shall be reduced by the amount by which State 
     expenditures under the State program funded under this part 
     for the preceding fiscal year is less than 90 percent of 
     historic State expenditures.
       ``(B) Historic state expenditures.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `historic State expenditures' 
     means expenditures by a State under parts A and F of title IV 
     for fiscal year 1994, as in effect during such fiscal year.
       ``(ii) Hold harmless.--In no event shall the historic State 
     expenditures applicable to any fiscal year exceed the amount 
     which bears the same ratio to the amount determined under 
     clause (i) as--
       ``(I) the grant amount otherwise determined under paragraph 
     (1) for the preceding fiscal year (without regard to section 
     407), bears to
       ``(II) the total amount of Federal payments to the State 
     under section 403 for fiscal year 1994 (as in effect during 
     such fiscal year).
       ``(C) Determination of state expenditures for preceding 
     fiscal year.--
       ``(i) In general.--For purposes of this paragraph, the 
     expenditures of a State under the State program funded under 
     this part for a preceding fiscal year shall be equal to the 
     sum of the State's expenditures under the program in the 
     preceding fiscal year for--
       ``(I) cash assistance;
       ``(II) child care assistance;
       ``(III) education, job training, and work; and
       ``(IV) administrative costs.
       ``(ii) Transfers from other state and local programs.--In 
     determining State expenditures under clause (i), such 
     expenditures shall not include funding supplanted by 
     transfers from other State and local programs.
       ``(D) Exclusion of federal amounts.--For purposes of this 
     paragraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
                                 ______


                 BREAUX (AND OTHERS) AMENDMENT NO. 2489

  Mr. BREAUX (for himself, Mr. Daschle, Mr. Kennedy, and Mr. Pell) 
proposed an amendment to amendment No. 2280 proposed by Mr. Dole to the 
bill H.R. 4, supra, as follows:

       In section 703(39), strike ``(8)'' and all that follows and 
     insert ``(9) of section 716(a).''.
       In section 714(c)(2)(B), strike clause (vii) and insert the 
     following:
       ``(vii) the steps the State will take over the 3 years 
     covered by the plan to comply with the requirements specified 
     in section 716(a)(3) relating to the provision of education 
     and training services;''.
       In section 716(a)(1)(A), strike ``and (4)'' and insert 
     ``(4), and (5)''.
       In section 716(a)(1), strike subparagraph (B) and insert 
     the following:
       ``(B) may be used to carry out the activities described in 
     paragraphs (6), (7), (8), and (9).''.
       In section 716(a), strike paragraph (9).
       In section 716(a)(8), strike ``(8)'' and insert ``(9)''.
       In section 716(a)(7), strike ``(7)'' and insert ``(8)''.
       In section 716(a)(6), strike ``(6)'' and insert ``(7)''.
       In section 716(a)(5), strike ``(5)'' and insert ``(6)''.
       In section 716(a)(4), strike ``(4)'' and insert ``(5)''.
       In section 716(a)(3), strike ``(3)'' and insert ``(4)''.
       In section 716(a), insert after paragraph (2) the 
     following:
       ``(3) Education and training services.--
       ``(A) In general.--The State shall use a portion of the 
     funds described in paragraph (1) to provide education and 
     training services in accordance with this paragraph to 
     adults, each of whom--
       ``(i) is unable to obtain employment through core services 
     described in paragraph (2)(B);
       ``(ii) needs the education and training services in order 
     to obtain employment, as determined through--

       ``(I) an initial assessment under paragraph (2)(B)(ii); or
       ``(II) a comprehensive and specialized assessment; and

       ``(iii) is unable to obtain other grant assistance, such as 
     a Pell Grant provided under title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070 et seq.), for such services.
       ``(B) Types of services.--Such education and training 
     services may include the following:
       ``(i) Occupational skills training, including training for 
     nontraditional employment.
       ``(ii) On-the-job training.
       ``(iii) Services that combine workplace training with 
     related instruction.

[[Page S 12970]]

       ``(iv) Skill upgrading and retraining.
       ``(v) Entrepreneurial training.
       ``(vi) Preemployment training to enhance basic workplace 
     competencies, provided to individuals who are determined 
     under guidelines developed by the Federal Partnership to be 
     low-income.
       ``(vii) Customized training conducted with a commitment by 
     an employer or group of employers to employ an individual on 
     successful completion of the training.
       ``(C) Use of vouchers for dislocated workers.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), education and training services described in 
     subparagraph (B) shall be provided to dislocated workers 
     through a system of vouchers that is administered through 
     one-stop delivery described in paragraph (2).
       ``(ii) Exceptions.--Education and training services 
     described in subparagraph (B) may be provided to dislocated 
     workers in a substate area through a contract for services in 
     lieu of a voucher if--

       ``(I) the local partnership described in section 728(a), or 
     local workforce development board described in section 
     728(b), for the substate area determines there are an 
     insufficient number of eligible entities in the substate area 
     to effectively provide the education and training services 
     through a voucher system;
       ``(II) the local partnership or local workforce development 
     board determines that the eligible entities in the substate 
     area are unable to effectively provide the education and 
     training services to special participant populations; or
       ``(III) the local partnership or local workforce 
     development board decides that the education and training 
     services shall be provided through a direct contract with a 
     community-based organization serving special participant 
     populations.

       ``(iii) Prohibition on provision of on-the-job training 
     through vouchers.--On-the-job training provided under this 
     paragraph shall not be provided through a voucher system.
       ``(D) Eligibility of education and training service 
     providers.--
       ``(i) Eligibility requirements.--An entity shall be 
     eligible to provide the education and training services 
     through a program carried out under this paragraph and 
     receive funds from the portion described in subparagraph (A) 
     through the receipt of vouchers if--

       ``(I)(aa) the entity is eligible to carry out the program 
     under title IV of the Higher Education Act of 1965; or
       ``(bb) the entity is eligible to carry out the program 
     under an alternative eligibility procedure established by the 
     Governor of the State that includes criteria for minimum 
     acceptable levels of performance; and
       ``(II) the entity submits accurate performance-based 
     information required pursuant to clause (ii),

       ``(ii) Performance-based information.--The State shall 
     identify performance-based information that is to be 
     submitted by an entity for the entity to be eligible to 
     provide the services, and receive the funds, described in 
     clause (i). Such information include information relating 
     to--

       ``(I) the percentage of students completing the programs, 
     if any, through which the entity provides education and 
     training services described in subparagraph (B), as of the 
     date of the submission;
       ``(II) the rates of licensure of graduates of the programs;
       ``(III) the percentage of graduates of the programs meeting 
     skill standards and certification requirements endorsed by 
     the National Skill Standards Board established under the 
     Goals 2000: Educate America Act;
       ``(IV) the rates of placement and retention in employment, 
     and earnings, of the graduates of the programs;
       ``(V) the percentage of students in such a program who 
     obtained employment in an occupation related to the program; 
     and
       ``(VI) the warranties or guarantees provided by such entity 
     relating to the skill levels or employment to be attained by 
     recipients of the education and training services provided by 
     the entity under this paragraph.

       ``(iii) Administration.--The Governor shall designate a 
     State agency to collect, verify, and disseminate the 
     performance-based information submitted pursuant to clause 
     (ii).
       ``(iv) On-the-job training exception.--Entities shall not 
     be subject to the requirements of clauses (i) through (iii) 
     with respect to on-the-job training activities.''.
       In section 716(a)(7) (as so redesignated), strike 
     subparagraphs (A), (B), and (C).
       In subparagraph (D) of section 716(a)(7) (as so 
     redesignated), strike ``(D)'' and insert ``(A)''.
       In section 716(a)(7) (as so redesignated), strike 
     subparagraph (E).
       In subparagraph (F) of section 716(a)(7) (as so 
     redesignated), strike ``(F)'' and insert ``(B)''.
       In section 716(a)(7) (as so redesignated), strike 
     subparagraph (G).
       In subparagraph (H) of section 716(a)(7) (as so 
     redesignated), strike ``(H)'' and insert ``(C)''.
       In subparagraph (I) of section 716(a)(7) (as so 
     redesignated), strike ``(I)'' and insert ``(D)''.
       In section 716(a)(7) (as so redesignated), strike 
     subparagraph (J).
       In subparagraph (K) of section 716(a)(7) (as so 
     redesignated), strike ``(K)'' and insert ``(E)''.
       In subparagraph (L) of section 716(a)(7) (as so 
     redesignated), strike ``(L)'' and insert ``(F)''.
       In subparagraph (M) of section 716(a)(7) (as so 
     redesignated), strike ``(M)'' and insert ``(G)''.
       In subparagraph (N) of section 716(a)(7) (as so 
     redesignated), strike ``(N)'' and insert ``(H)''.
       In subparagraph (O) of section 716(a)(7) (as so 
     redesignated), strike ``(O)'' and insert ``(I)''.
       In section 716(g)(1)(A), strike ``(a)(6)'' and insert 
     ``(a)(7)''.
       In section 716(g)(1)(B), strike ``(a)(6)'' and insert 
     ``(a)(7)''.
       In section 716(g)(2)(A), strike ``(a)(6)'' and insert 
     ``(a)(7)''.
       In section 716(g)(2)(B)(i), strike ``(a)(6)'' and insert 
     ``(a)(7)''.
       In section 7(38) of the Rehabilitation Act of 1973 (as 
     amended by section 804), strike ``(8)'' and all that follows 
     and insert ``(9) of section 716(a) of the Workforce 
     Development Act of 1995.''.
                                 ______


                 BREAUX (AND OTHERS) AMENDMENT NO. 2490

  Mr. BREAUX (for himself, Mr. Pell, Mr. Kennedy, Mr. Lieberman, Mr. 
Bradley, and Mr. Johnston) proposed an amendment to amendment No. 2280 
proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Strikes titles VII and VIII of the amendment.
                                 ______


              ROCKEFELLER (AND BAUCUS) AMENDMENT NO. 2491

  Mr. ROCKEFELLER (for himself and Mr. Baucus) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       On page 36, between lines 18 and 19, insert the following:
       ``(4) Areas of high unemployment.--
       ``(A) In general.--At the State's option, the State may, on 
     a uniform basis, exempt a family from the application of 
     paragraph (1) if--
       ``(i) such family resides in area of high unemployment 
     designated by the State under subparagraph (B); and
       ``(ii) the State makes available, and requires an 
     individual in the family to participate in, work activities 
     described in subparagraphs (B), (D), or (F) of section 
     404(c)(3).
       ``(B) Areas of high unemployment.--The State may designate 
     a sub-State area as an area of high unemployment if such 
     area--
       ``(i) is a major political subdivision (or is comprised of 
     2 or more geographically contiguous political subdivisions);
       ``(ii) has an average annual unemployment rate (as 
     determined by the Bureau of Labor Statistics) of at least 10 
     percent; and
       ``(iii) has at least 25,000 residents.

     The State may waive the requirement of clause (iii) in the 
     case of a sub-State area that is an Indian reservation.
                                 ______


                     ROCKEFELLER AMENDMENT NO. 2492

  Mr. ROCKEFELLER proposed an amendment to amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 35, between lines 2 and 3, insert the following:
       ``(6) State option for participation requirement 
     exemptions.--For any fiscal year, a State may opt to not 
     require an individual described in subclause (I) or (II) of 
     section 405(a)(3)(B)(ii) to engage in work activities and may 
     exclude such an individual from the determination of the 
     minimum participation rate specified for such fiscal year in 
     subsection (a).
       On page 40, strike lines 6 through 16, and insert the 
     following:
       ``(B) Limitation.--
       ``(i) 15 percent.--In addition to any families provided 
     with exemptions by the State under clause (ii), the number of 
     families with respect to which an exemption made by a State 
     under subparagraph (A) is in effect for a fiscal year shall 
     not exceed 15 percent of the average monthly number of 
     families to which the State is providing assistance under the 
     program operated under this part.
       ``(ii) Certain families.--At the State's option, the State 
     may provide an exemption under subparagraph (A) to a family--
       ``(I) of an individual who is ill, incapacitated, or of 
     advanced age; and
       ``(II) of an individual who is providing full-time care for 
     a disabled dependent of the individual.
                                 ______


                 SNOWE (AND BRADLEY) AMENDMENT NO. 2493

  Ms. SNOWE (for herself and Mr. Bradley) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       Beginning on page 582, strike line 3 and all that follows 
     through line 2 on page 583, and insert the following:
       ``(ii) Distribution to the family to satisfy arrearages 
     that accrued before the family received assistance.--From any 
     remainder after the application of clause (i), in 

[[Page S 12971]]
     order to satisfy arrearages of support obligations that accrued before 
     the family received assistance from the State, the State--
       ``(I) may distribute to the family the amount so collected 
     with respect to such arrearages accruing (and assigned to the 
     State as a condition of receiving assistance) before the 
     effective date of this subsection; and
       ``(II) shall distribute to the family the amount so 
     collected with respect to such arrearages accruing after such 
     effective date.
       ``(iii) Retention by the state of a portion of assigned 
     arrearages to repay assistance furnished to the family.--From 
     any remainder after the application of clauses (i) and (ii), 
     the State shall retain (with appropriate distribution to the 
     Federal Government) amounts necessary to reimburse the State 
     and Federal Government for assistance furnished to the 
     family.
       ``(iv) Distribution of the remainder to the family.--The 
     State shall distribute to the family any remainder after the 
     application of clauses (i), (ii), and (iii).
       On page 585, between lines 10 and 11, insert the following:
       (c) Amendments to Internal Revenue Code Concerning 
     Collection of Child Support Arrearages Through Income Tax 
     Refund Offset.--
       (1) Section 6402(c) of the Internal Revenue Code of 1986 is 
     amended by striking the third sentence.
       (2) Section 6402(d)(2) of such Code is amended in the first 
     sentence by striking all that follows ``subsection (c)'' and 
     inserting a period.
       On page 585, line 11, strike ``(c)'' and insert ``(d)''.
                                 ______


                        SNOWE AMENDMENT NO. 2494

  Ms. SNOWE proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       On page 36, strike lines 14 through 25, and insert the 
     following:
       ``(d) Penalties Against Individuals.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an adult in a family receiving assistance under the State 
     program funded under this part refuses to engage in work 
     required under subsection (c)(1) or (c)(2), a State to which 
     a grant is made under section 403 shall--
       ``(A) reduce the amount of assistance otherwise payable to 
     the family pro rata (or more, at the option of the State) 
     with respect to any period during a month in which the adult 
     so refuses; or
       ``(B) terminate such assistance,

     subject to such good cause and other exceptions as the State 
     may establish.
       ``(2) Exception.--Notwithstanding paragraph (1), a State 
     may not reduce or terminate assistance under the State 
     program based on a refusal of an adult to work if such adult 
     is a single custodial parent caring for a child age 5 or 
     under and has a demonstrated inability to obtain needed child 
     care, for one or more of the following reasons:
       ``(A) Unavailability of appropriate child care within a 
     reasonable distance of the individual's home or work site.
       ``(B) Unavailability or unsuitability of informal child 
     care by a relative or under other arrangements.
       ``(C) Unavailability of appropriate and affordable formal 
     child care arrangements.
                                 ______


                        PRYOR AMENDMENT NO. 2495

  Mr. PRYOR proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place in the bill, insert the following:
       On page 52, lines 4 through 6, strike ``so used, plus 5 
     percent of such grant (determined without regard to this 
     section).'' and insert ``so used. If the Secretary determines 
     that such unlawful expenditure was made by the State in 
     intentional violation of the requirements of this part, then 
     the Secretary shall impose an additional penalty of up to 5 
     percent of such grant (determined without regard to this 
     section).''.
       On page 56, between lines 9 and 10, insert the following:
       ``(d) Compliance Plan.--
       ``(1) In general.--Prior to the deduction from the grant of 
     aggregate penalties under subsection (a) in excess of 5 
     percent of a State's grant payable under section 403, a State 
     may develop jointly with the Secretary a plan which outlines 
     how the State will correct any violations for which such 
     penalties would be deducted and how the State will insure 
     continuing compliance with the requirements of this part.
       ``(2) Failure to correct.--If the Secretary determines that 
     a State has not corrected the violations described in 
     paragraph (1) in a timely manner, the Secretary shall deduct 
     some or all of the penalties described in paragraph (1) from 
     the grant.''.
       On page 56, strike lines 11 through 14, and insert the 
     following:
       ``(1) In general.--The penalties described in paragraphs 
     (2) through (6) of subsection (a) shall apply--
       ``(A) with respect to periods beginning 6 months after the 
     Secretary issues final rules with respect to such penalties; 
     or
       ``(B) with respect to fiscal years beginning on or after 
     October 1, 1996;

     whichever is later.''.
                                 ______


                   BRADLEY AMENDMENTS NOS. 2496-2498

  Mr. BRADLEY proposed three amendments to amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2496

       At the end of section 402(a), insert the following:
       ``(9) Additional requirements.--
       ``(A) Eligibility.--The terms and conditions under which 
     families are deemed needy and eligible for assistance under 
     the program.
       ``(B) Terms and conditions.--The terms and conditions 
     described in subparagraph (A) shall include--
       ``(i) a need standard based on family income and size;
       ``(ii) a standard for benefits or schedule of benefits for 
     families based on family size and income;
       ``(iii) explicit rules regarding the treatment of earned 
     and unearned income, resources, and assets; and
       ``(iv) a description of any variations in the terms and 
     conditions described in clauses (i), (ii), and (iii) that are 
     applicable in--
       ``(I) regions or localities within the State; or
       ``(II) particular circumstances.
       ``(C) Identification of families categorically ineligible 
     for assistance--Identification of any categories of families, 
     or individuals within such families, that are deemed by the 
     State to be categorically ineligible for assistance under the 
     program, regardless of family income or other terms and 
     conditions developed under subparagraph (A).
       ``(D) Assurances regarding the provision of assistance.--
     Assurances that all families deemed eligible for assistance 
     under the program under subparagraph (A) shall be provided 
     assistance under the standard for benefits or the benefit 
     schedule described in subparagraph (B)(ii), unless--
       ``(i) the family or an individual member of the family is 
     categorically ineligible for assistance under subparagraph 
     (C); or
       ``(ii) the family is subject to sanctions or reductions in 
     benefits under terms of another provision of the State plan, 
     this part, Federal or State law, or an agreement between an 
     individual recipient of assistance in such family and the 
     State that may contain terms and conditions applicable only 
     to the individual recipient.
       ``(E) Procedures for ensuring the availability of funds.--
     The procedures under which the State shall ensure that funds 
     will remain available to provide assistance under the program 
     to all eligible families during a fiscal year if the State 
     exhausts the grant provided to the State for such fiscal year 
     under section 403.
       ``(F) Waiting lists.--Assurances that no family otherwise 
     eligible for assistance under the program shall be placed on 
     a waiting list for assistance or instructed to reapply at 
     such time that additional Federal funds may become available.
                                                                    ____

                           Amendment No. 2497

       At the end of section 405, insert the following:
       ``(f) No Unfunded Local Mandates.--A State to which a grant 
     is made under section 403 may not, by mandate or policy, 
     shift the costs of providing aid or assistance that, prior to 
     October 1, 1995 (or March 31, 1996, in the case of a State 
     exercising the option described in section 110(b) of the 
     Family Self-Sufficiency Act of 1995) was provided under the 
     aid to families with dependent children or the JOBS programs 
     (as such programs were in effect on September 30, 1995) to--
       ``(1) counties;
       ``(2) localities;
       ``(3) school boards; or
       ``(4) other units of local government.
                                                                    ____


                           Amendment No. 2498

       At the appropriate place at the end of Title I, add the 
     following:
       Nothing in this Act shall in interpreted to preempt the 
     enforcement of existing civil rights laws.
                                 ______


                        BOND AMENDMENT NO. 2499

  Mr. BOND proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place in the bill, insert the following: 
     ``Notwithstanding any other provision of law, States shall 
     not be prohibited by the federal government from sanctioning 
     welfare recipients who test positive for use of controlled 
     substances.''
                                 ______


                        GLENN AMENDMENT NO. 2500

  Mr. GLENN proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       On page 322, strike lines 8 through 14 and insert the 
     following:
       (8) Displaced homemaker.--The term ``displaced homemaker'' 
     means an individual who--
       (A) has been dependent
       (i) on assistance under part A of title IV of the Social 
     Security Act and whose youngest child is not younger than 16; 
     or
       (ii) on the income of another family member, but is no 
     longer supported by such income; and

[[Page S 12972]]

       (B) is unemployed or underemployed, and is experiencing 
     difficulty in obtaining or upgrading employment.
       On page 359, line 13, strike ``and''.
       On page 359, line 16, strike the period and insert 
     ``;and''.
       On page 359, between lines 16 and 17, insert the following;
       (P) Preemployment training for displaced homemakers.
       On page 364, between lines 9 and 10, insert the following:
       (6) providing programs for single parents, displaced 
     homemakers, and single pregnant women;
       On page 364, line 10, strike ``(6)'' and insert ``(7)''.
       On page 364, line 12, strike ``(7)'' and insert ``(8)''.
       On page 412, line 4, strike ``and''.
       On page 412, line 5, strike the period and insert ``; 
     and''.
       On page 412, between lines 5 and 6, insert the following:
       (G) displaced homemakers.
                                 ______


                      PRESSLER AMENDMENT NO. 2501

  Mr. GRASSLEY (for Mr. Pressler) proposed an amendment to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 77, line 21, strike the end quotation marks and the 
     end period.
       On page 77, between lines 21 and 22, insert the following:

     ``SEC. 418. COLLECTION OF OVERPAYMENTS FROM FEDERAL TAX 
                   REFUNDS.

       ``(a) In General.--Upon receiving notice from the Secretary 
     of Health and Human Services that a State agency 
     administering a plan approved under this part has notified 
     the Secretary that a named individual has been overpaid under 
     the State plan approved under this part, the Secretary of the 
     Treasury shall determine whether any amounts as refunds of 
     Federal taxes paid are payable to such individual, regardless 
     of whether such individual filed a tax return as a married or 
     unmarried individual. If the Secretary of the Treasury finds 
     that any such amount is payable, the Secretary shall withhold 
     from such refunds an amount equal to the overpayment sought 
     to be collected by the State and pay such amount to the State 
     agency.
       ``(b) Regulations.--The Secretary of the Treasury shall 
     issue regulations, after review 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 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 to collect 
     the past-due legally enforceable debt; 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.''.
       (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) 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:
       ``(e) Collection of Overpayments Under Title IV-A of the 
     Social Security Act.--The amount of any overpayment to be 
     refunded to the person making the overpayment shall be 
     reduced (after reductions pursuant to subsections (c) and 
     (d), but before a credit against future liability for an 
     internal revenue tax) in accordance with section 418 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) Paragraph (10) of section 6103(l) of such Code is 
     amended--
       (A) by striking ``(c) or (d)'' each place it appears and 
     inserting ``(c), (d), or (e)''; and
       (B) by adding at the end of subparagraph (B) the following 
     new sentence: ``Any return information disclosed with respect 
     to section 6402(e) shall only be disclosed to officers and 
     employees of the State agency requesting such information.''.
       (3) The matter preceding subparagraph (A) of section 
     6103(p)(4) of such Code is amended--
       (A) by striking ``(5), (10)'' and inserting ``(5)''; and
       (B) by striking ``(9), or (12)'' and inserting ``(9), (10), 
     or (12)''.
       (4) 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 418, 464, 
     or 1137 of the Social Security Act.''
                                 ______


                  WELLSTONE AMENDMENTS NOS. 2503-2500

  Mr. WELLSTONE proposed four amendments to amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2503

       On page 229, between lines 13 and 14, insert the following:
       ``(4) Sunset of election upon increase in number of hungry 
     children.--
       ``(A) Findings.--The Congress finds that--
       ``(i) on March 29, 1995 the Senate adopted a resolution 
     stating that Congress should not enact or adopt any 
     legislation that will increase the number of children who are 
     hungry;
       ``(ii) it is not the intent of this bill to cause more 
     children to be hungry;
       ``(iii) the Food Stamp Program serves to prevent child 
     hunger;
       ``(iv) a State's election to participate in the optional 
     state food assistance block grant program should not serve to 
     increase the number of hungry children in that State; and
       ``(v) one indicator of hunger among children is the child 
     poverty rate.
       ``(B) Sunset.--If the Secretary of Health and Human 
     Services makes two successive findings that the poverty rate 
     among children in a State is significantly higher in a State 
     that has elected to participate in a program established 
     under subsection (a) than it would have been had there been 
     no such election, 180 days after the second such finding such 
     election shall be permanently and irreversibly revoked and 
     the provisions of paragraphs (1) and (2) shall not be 
     applicable to that State.
       ``(C) Procedure for finding by secretary.--In making the 
     finding described in subparagraph (B), the Secretary shall 
     adhere to the following procedure:
       ``(i) Every three years, the Secretary shall develop data 
     and report to Congress with respect to each State that has 
     elected to participate in a program established under 
     subsection (a) whether the child poverty rate in such State 
     is significantly higher than it would have been had the State 
     not made such election.
       ``(ii) The Secretary shall provide the report required 
     under clause (i) to all States that have elected to 
     participate in a program established under subsection (a), 
     and the Secretary shall provide each State for which the 
     Secretary determined that the child poverty rate is 
     significantly higher than it would have been had the State 
     not made such election with an opportunity to respond to such 
     determination.
       ``(iii) If the response by a State under clause (ii) does 
     not result in the Secretary reversing the determination that 
     the child poverty rate in that State is significantly higher 
     than it would have been had the State not made such election, 
     then the Secretary shall publish a finding as described in 
     subparagraph (B)
                                                                    ____

                           Amendment No. 2504

       On page 124, between lines 12 and 13, insert the following:

     ``SEC. 113. SUNSET UPON OF INCREASE IN NUMBER OF HUNGRY OR 
                   HOMELESS CHILDREN.

       ``(a) Findings.--The Congress finds that--
       ``(1) on March 29, 1995 the Senate adopted a resolution 
     stating that Congress should not enact or adopt any 
     legislation that will increase the number of children who are 
     hungry or homeless;
       ``(2) it is not the intent of this bill to cause more 
     children to be hungry or homeless;
       ``(3) the Aid to Families with Dependent Children program, 
     which is repealed by this title, has helped prevent hunger 
     and homelessness among children;
       ``(4) the operation of block grants for temporary 
     assistance for needy families under this title should not 
     serve to increase significantly the number of hungry or 
     homeless children in any State; and
       ``(5) one indicator of hunger and homelessness among 
     children is the child poverty rate.
       ``(b) Sunset.--If the Secretary of Health and Human 
     Services makes two successive findings that the poverty rate 
     among children in a State is significantly higher in the 
     State than it would have been had this title not been 
     implemented, then all of the provisions of this title shall 
     cease to be effective with regard to that State 180 days 
     after the second such finding, making effective any 
     provisions of law repealed by this title.
       ``(c) Procedure for Finding by Secretary.--In making the 
     finding described in subsection (b), the Secretary shall 
     adhere to the following procedure:

[[Page S 12973]]

       ``(1) Every three years, the Secretary shall develop data 
     and report to Congress with respect to each State whether the 
     child poverty rate in that State is significantly higher than 
     it would have been had this title not been implemented.
       ``(2) The Secretary shall provide the report required under 
     paragraph (1) to all States, and the Secretary shall provide 
     each State for which the Secretary determined that the child 
     poverty rate is significantly higher than it would have been 
     had this title not been implemented with an opportunity to 
     respond to such determination.
       ``(3) If the response by a State under paragraph (2) does 
     not result in the Secretary reversing the determination that 
     the child poverty rate in that State is significantly higher 
     than it would have been had this title not been implemented, 
     then the Secretary shall publish a finding as described in 
     subsection (b), and the State must implement a plan to 
     decrease the child poverty rate.''
                                                                    ____


                           Amendment No. 2505

       On page 86, between lines 3 and 4, insert the following:

     SEC. 104A. SENSE OF THE SENATE REGARDING CONTINUING MEDICAID 
                   COVERAGE.

       (a) Findings.--The Senate finds that--
       (1) the potential loss of medicaid coverage represents a 
     large disincentive for recipients of welfare benefits to 
     accept jobs that offer no health insurance;
       (2) thousands of the Nation's employers continue to find 
     the cost of health insurance out of reach;
       (3) the percentage of working people who receive health 
     insurance from their employer has dipped to its lowest point 
     since the early 1980s; and
       (4) children have accounted for the largest proportion of 
     the increase in the number of uninsured in recent years.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that any medicaid reform enacted by the Senate this year 
     should require that States continue to provide medicaid for 
     12 months to families who lose eligibility for welfare 
     benefits because of more earnings or hours of employment.
                                                                    ____

                           Amendment No. 2506

       On page 86; between lines 3 and 4, insert the following:

     SEC. 104A. EXTENSION OF TRANSITIONAL MEDICAID BENEFITS.

       (a) Findings.--The Senate finds that--
       (1) the potential loss of Medicaid coverage represents a 
     large disincentive for recipients of welfare benefits to 
     accept jobs that offer no health insurance;
       (2) thousands of the Nation's employers continue to find 
     the cost of health insurance out of reach;
       (3) the percentage of working people who receive health 
     insurance from their employer has dipped to its lowest point 
     since the early 1980s; and
       (4) children have accounted for the largest proportion of 
     the increase in the number of uninsured in recent years.
       (b) 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).
       (c) Effective Date.--The amendments made by this section 
     shall apply to medical assistance furnished for calendar 
     quarters beginning on or after October 1, 1995.
                                 ______


                        COHEN AMENDMENT NO. 2502

  Mr. GRASSLEY (for Mr. Cohen) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 78, line 18, insert after ``subsection (a)(2)'' the 
     following:
       ``so long as the programs are implemented consistent with 
     the Establishment Clause of the United States Constitution''
       On page 80, line 13, add ``;'' after ``governance'' and 
     delete lines 14-16.
                                 ______


              WELLSTONE (AND FEINGOLD) AMENDMENT NO. 2507

  Mr. WELLSTONE (for himself and Mr. Feingold) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       Beginning on page 161, strike line 7 and all that follows 
     through page 163, line 1, and insert the following:

     SEC. 308. ENERGY ASSISTANCE.

       (a) In General.--Section 5(d)(11) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(d)(11)) is amended by striking ``any 
     payments or allowances'' and inserting the following: ``a 
     one-time payment or allowance for the costs of weatherization 
     or emergency repair or replacement of an unsafe or 
     inoperative furnace or other heating or cooling device.''.
       (b) Conforming Amendment.--Section 5(k)(1)(A) of the Act (7 
     U.S.C. 2014(k)(1)(A)) is amended by striking ``plan for aid 
     to families with dependent children approved'' and inserting 
     ``program funded''.
                                 ______


                        BROWN AMENDMENT NO. 2508

  Mr. BROWN proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       On page 25, strike line 4 and insert the following:

     1, 1995;

     except that not more than 15 percent of the grant may be used 
     for administrative purposes.
                                 ______


                    SIMON AMENDMENTS NOS. 2509-2510

  Mr. SIMON proposed two amendments to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2509

       On page 289, lines 2 through 5, strike ``, or for a period 
     of 5 years beginning on the day such individual was first 
     lawfully in the United States after the execution of such 
     affidavit or agreement, whichever period is longer''.
                                                                    ____

                           Amendment No. 2510

       In title VII, strike chapters 1 and 2 of subtitle C and 
     insert the following:
                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 741. DEFINITIONS.

       As used in this subtitle:
       (1) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24;
       (B) is low-income (as defined in section 723(e));
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) Involved in the juvenile justice system.
       (vi) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 743.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 743.
       (6) Operator.--The term ``operator'' means an individual 
     selected under this chapter to operate a Job Corps center.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
                          CHAPTER 2--JOB CORPS

     SEC. 742. PURPOSES.

       The purposes of this chapter are--
       (1) to maintain a national Job Corps program, carried out 
     in partnership with States and communities, to assist at-risk 
     youth who need and can benefit from an unusually intensive 
     program, operated in a group setting, to become more 
     responsible, employable, and productive citizens;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of Job Corps centers in 
     which enrollees will participate in intensive programs of 
     workforce development activities; and
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps.

     SEC. 743. ESTABLISHMENT.

       There shall be established in the Department of Labor a Job 
     Corps program, to carry out activities described in this 
     chapter for individuals enrolled in the Job Corps and 
     assigned to a center. 

[[Page S 12974]]


     SEC. 744. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be an at-risk youth.

     SEC. 745. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps, after considering 
     recommendations from the Governors, State workforce 
     development boards established under section 715, local 
     partnerships and local workforce development boards 
     established under section 728, and other interested parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1) for the screening and selection of Job Corps 
     applicants, the Secretary shall--
       (A) require enrollees to take drug tests within 30 days of 
     enrollment in the Job Corps;
       (B) allocate, where necessary, additional resources to 
     increase the applicant pool;
       (C) establish performance standards for outreach to and 
     screening of Job Corps applicants;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting such 
     screening; and
       (E) require Job Corps applicants to pass behavorial 
     background checks, conducted in accordance with procedures 
     established by the Secretary.
       (3) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) one-stop career centers;
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     considered for selection can participate successfully in 
     group situations and activities, is not likely to engage in 
     behavior that would prevent other enrollees from receiving 
     the benefit of the program or be incompatible with the 
     maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.

     SEC. 746. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--After the Secretary has determined that an 
     enrollee is to be assigned to a Job Corps center, the 
     enrollee shall be assigned to the center that is closest to 
     the residence of the enrollee, except that the Secretary may 
     waive this requirement for good cause, including to ensure an 
     equitable opportunity for at-risk youth from various sections 
     of the Nation to participate in the Job Corps program, to 
     prevent undue delays in assignment of an enrollee, to 
     adequately meet the educational or other needs of an 
     enrollee, and for efficiency and economy in the operation of 
     the program.
       (c) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 748(d) would require an 
     individual to participate for more than 2 years; or
       (2) as the Secretary may authorize in a special case.

     SEC. 747. JOB CORPS CENTERS.

       (a) Operators.--
       (1) Eligible entities.--The Secretary shall enter into an 
     agreement with a Federal, State, or local agency, which may 
     be a State board or agency that operates or wishes to develop 
     an area vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     operation of each Job Corps center. The Secretary shall enter 
     into an agreement with an appropriate entity to provide 
     services for a Job Corps center.
       (2) Selection process.--Except as provided in subsection 
     (c)(2), the Secretary shall select an entity to operate a Job 
     Corps center on a competitive basis, after reviewing the 
     operating plans described in section 750. In selecting a 
     private organization to serve as an operator, the Secretary 
     may convene and obtain the recommendation of a selection 
     panel described in section 752(b). In selecting an entity to 
     serve as an operator or to provide services for a Job Corps 
     center, the Secretary shall take into consideration the 
     previous performance of the entity, if any, relating to 
     operating or providing services for a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 748. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (c) Civilian Conservation Centers.--
       (1) In general.--The Job Corps centers may include Civilian 
     Conservation Centers, located primarily in rural areas, which 
     shall provide, in addition to other training and assistance, 
     programs of work experience to conserve, develop, or manage 
     public natural resources or public recreational areas or to 
     develop community projects in the public interest.
       (2) Selection process.--The Secretary may select an entity 
     to operate a Civilian Conservation Center on a competitive 
     basis, if the center fails to meet such national performance 
     standards as the Secretary shall establish.

     SEC. 748. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     716(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the
      enrollees, including providing work-based learning 
     throughout the enrollment of the enrollees and assisting 
     the enrollees in obtaining meaningful unsubsidized 
     employment, participating successfully in secondary 
     education or postsecondary education programs, enrolling 
     in other suitable training programs, or satisfying Armed 
     Forces requirements, on completion of their enrollment.
       (b) Arrangements.--The Secretary shall arrange for 
     enrollees assigned to Job Corps centers to receive workforce 
     development activities through the statewide system, 
     including workforce development activities provided through 
     local public or private educational agencies, vocational 
     educational institutions, or technical institutes.
       (c) Job Placement Accountability.--Each Job Corps center 
     shall be connected to the job placement accountability system 
     described in section 731(d) in the State in which the center 
     is located.
       (d) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees would otherwise be limited.
       (2) Postsecondary educational institutions.--The advanced 
     career training may be provided through a postsecondary 
     educational institution for an enrollee who has obtained a 
     secondary school diploma or its recognized equivalent, has 
     demonstrated commitment and capacity in previous Job Corps 
     participation, and has an identified occupational goal.
       (3) Company-sponsored training programs.--The Secretary may 
     enter into contracts with private for-profit businesses and 
     labor unions to provide the advanced career training through 
     intensive training in company-sponsored training programs, 
     combined with internships in work settings.
       (4) Benefits.--
       (A) In general.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (B) Calculation.--The total amount for which an enrollee 
     shall be eligible under subparagraph (A) shall be reduced by 
     the amount of any scholarship or other educational grant 
     assistance received by such enrollee for advanced career 
     training.
       (5) Demonstration.--Each year, any operator seeking to 
     enroll additional enrollees in an advanced career training 
     program shall demonstrate that participants in such program 
     have achieved a reasonable rate of completion and placement 
     in training-related jobs before the operator may carry out 
     such additional enrollment.

     SEC. 749. SUPPORT.

       The Secretary shall provide enrollees assigned to Job Corps 
     centers with such personal allowances, including readjustment 
     allowances, as the Secretary may determine to be necessary or 
     appropriate to meet the needs of the enrollees.

     SEC. 750. OPERATING PLAN.

       (a) In General.--To be eligible to operate a Job Corps 
     center, an entity shall prepare and submit an operating plan 
     to the Secretary for approval. Prior to submitting the plan 
     to the Secretary, the entity shall submit the plan to the 
     Governor of the State in which the center is located for 
     review and comment. The entity shall submit any comments 
     prepared by the Governor on the plan to the Secretary with 
     the plan. Such plan shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan 
     submitted under section 714 for the State in which the center 
     is located;

[[Page S 12975]]

       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the region in which the center is located;
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 716(a)(2) by the State; and
       (4) an implementation strategy to ensure that the curricula 
     of all such enrollees is integrated into the school-to-work 
     activities of the State, including work-based learning, work 
     experience, and career-building activities, and that such 
     enrollees have the opportunity to obtain secondary school 
     diplomas or their recognized equivalent.
       (b) Approval.--The Secretary shall not approve an operating 
     plan described in subsection (a) for a center if the 
     Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities carried out through the 
     statewide system of the State in which the center is located.

     SEC. 751. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The Secretary shall 
     provide, and directors of Job Corps center shall stringently 
     enforce, standards of conduct within the centers. Such 
     standards of conduct shall include provisions forbidding the 
     actions described in subsection (b)(2)(A).
       (b) Disciplinary Measures.--
       (1) In general.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Job Corps if the director determines that the retention of 
     the enrollee in the Job Corps will jeopardize the enforcement 
     of such standards or diminish the opportunities of other 
     enrollees.
       (2) Zero tolerance policy.--
       (A) Guidelines.--The director shall adopt guidelines 
     establishing a zero tolerance policy for an act of violence, 
     for use, sale, or possession of a controlled substance, for 
     abuse of alcohol, or for another illegal or disruptive 
     activity, as determined by the Secretary.
       (B) Definitions.--As used in this paragraph:
       (i) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (ii) Zero tolerance policy.--The term ``zero tolerance 
     policy'' means a policy under which an enrollee shall be 
     automatically dismissed from the Job Corps after a 
     determination by the director that the enrollee has carried 
     out an action described in subparagraph (A).
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the Secretary.

     SEC. 752. COMMUNITY PARTICIPATION.

       (a) Activities.--The Secretary shall encourage and 
     cooperate in activities to establish a mutually beneficial 
     relationship between Job Corps centers in the State and 
     nearby communities. The activities shall include the use of 
     any local partnerships or local workforce development boards 
     established in the State under section 728 to provide a 
     mechanism for joint discussion of common problems and for 
     planning programs of mutual interest.
       (b) Selection Panels.--The Governor may recommend 
     individuals to serve on a selection panel convened by the 
     Secretary to provide recommendations to the Secretary 
     regarding any competitive selection of a private organization 
     to serve as an operator for a center in the State. In 
     recommending individuals to serve on the panel, the Governor 
     may recommend members of State workforce development boards 
     established under section 715, if any, members of any local 
     partnerships or local workforce development boards 
     established in the State under section 728, or other 
     representatives selected by the Governor.
       (c) Activities.--Each Job Corps center director shall--
       (1) give officials of nearby communities appropriate 
     advance notice of changes in the rules, procedures, or 
     activities of the Job Corps center that may affect or be of 
     interest to the communities;
       (2) afford the communities a meaningful voice in the 
     affairs of the Job Corps center that are of direct concern to 
     the communities, including policies governing the issuance 
     and terms of passes to enrollees; and
       (3) encourage the participation of enrollees in programs 
     for improvement of the communities, with appropriate advance 
     consultation with business, labor, professional, and other 
     interested groups, in the communities.

     SEC. 753. COUNSELING AND PLACEMENT.

       The Secretary shall ensure that enrollees assigned to Job 
     Corps centers receive academic and vocational counseling and 
     job placement services, which shall be provided, to the 
     maximum extent practicable, through the delivery of core 
     services described in section 716(a)(2).

     SEC. 754. ADVISORY COMMITTEES.

       The Secretary is authorized to make use of advisory 
     committees in connection with the operation of the Job Corps 
     program, and the operation of Job Corps centers, whenever the 
     Secretary determines that the availability of outside advice 
     and counsel on a regular basis would be of substantial 
     benefit in identifying and overcoming problems, in planning 
     program or center development, or in strengthening 
     relationships between the Job Corps and agencies, 
     institutions, or groups engaged in related activities.
     SEC. 755. APPLICATION OF PROVISIONS OF FEDERAL LAW.

       (a) Enrollees Not Considered To Be Federal Employees.--
       (1) In general.--Except as otherwise provided in this 
     subsection and in section 8143(a) of title 5, United States 
     Code, enrollees shall not be considered to be Federal 
     employees and shall not be subject to the provisions of law 
     relating to Federal employment, including such provisions 
     regarding hours of work, rates of compensation, leave, 
     unemployment compensation, and Federal employee benefits.
       (2) Provisions relating to taxes and social security 
     benefits.--For purposes of the Internal Revenue Code of 1986 
     and title II of the Social Security Act (42 U.S.C. 401 et 
     seq.), enrollees shall be deemed to be employees of the 
     United States and any service performed by an individual as 
     an enrollee shall be deemed to be performed in the employ of 
     the United States.
       (3) Provisions relating to compensation to federal 
     employees for work injuries.--For purposes of subchapter I of 
     chapter 81 of title 5, United States Code (relating to 
     compensation to Federal employees for work injuries), 
     enrollees shall be deemed to be civil employees of the 
     Government of the United States within the meaning of the 
     term ``employee'' as defined in section 8101 of title 5, 
     United States Code, and the provisions of such subchapter 
     shall apply as specified in section 8143(a) of title 5, 
     United States Code.
       (4) Federal tort claims provisions.--For purposes of the 
     Federal tort claims provisions in title 28, United States 
     Code, enrollees shall be considered to be employees of the 
     Government.
       (b) Adjustments and Settlements.--Whenever the Secretary 
     finds a claim for damages to a person or property resulting 
     from the operation of the Job Corps to be a proper charge 
     against the United States, and the claim is not cognizable 
     under section 2672 of title 28, United States Code, the 
     Secretary may adjust and settle the claim in an amount not 
     exceeding $1,500.
       (c) Personnel of the Uniformed Services.--Personnel of the 
     uniformed services who are detailed or assigned to duty in 
     the performance of agreements made by the Secretary for the 
     support of the Job Corps shall not be counted in computing 
     strength under any law limiting the strength of such services 
     or in computing the percentage authorized by law for any 
     grade in such services.

     SEC. 756. SPECIAL PROVISIONS.

       (a) Enrollment of Women.--The Secretary shall immediately 
     take steps to achieve an enrollment of 50 percent women in 
     the Job Corps program, consistent with the need to--
       (1) promote efficiency and economy in the operation of the 
     program;
       (2) promote sound administrative practice; and
       (3) meet the socioeconomic, educational, and training needs 
     of the population to be served by the program.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Gross Receipts.--Transactions conducted by a private 
     for-profit contractor or a nonprofit contractor in connection 
     with the operation by the contractor of a Job Corps center or 
     the provision of services by the contractor for a Job Corps 
     center shall not be considered to be generating gross 
     receipts. Such a contractor shall not be liable, directly or 
     indirectly, to any State or subdivision of a State (nor to 
     any person acting on behalf of such a State or subdivision) 
     for any gross receipts taxes, business privilege taxes 
     measured by gross receipts, or any similar taxes imposed on, 
     or measured by, gross receipts in connection with any 
     payments made to or by such contractor for operating or 
     providing services for a Job Corps center. Such a contractor 
     shall not be liable to any State or subdivision of a State to 
     collect or pay any sales, excise, use, or similar tax imposed 
     on the sale to or use by such contractor of any property, 
     service, or other item in connection with the operation of or 
     provision of services for a Job Corps center.
       (d) Management Fee.--The Secretary shall provide each 
     operator or entity providing services for a Job Corps center 
     with an equitable and negotiated management fee of not less 
     than 1 percent of the contract amount.
       (e) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this chapter.

     SEC. 757. REVIEW OF JOB CORPS CENTERS.

       (a) National Job Corps Review.--Not later than March 31, 
     1997, an advisory committee established by the Secretary 
     shall conduct a review of the activities carried out under 
     part B of title IV of the Job Training Partnership Act (29 
     U.S.C. 1691 et seq.), and submit to the appropriate 
     committees of Congress a report containing the results of the 
     review, including--

[[Page S 12976]]

       (1) information on the amount of funds expended for fiscal 
     year 1996 to carry out activities under such part, for each 
     State and for the United States;
       (2) for each Job Corps center funded under such part, 
     information on the amount of funds expended for fiscal year 
     1996 under such part to carry out activities related to the 
     direct operation of the center, including funds expended for 
     student training, outreach or intake activities, meals and 
     lodging, student allowances, medical care, placement or 
     settlement activities, and administration;
       (3) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part through 
     contracts to carry out activities not related to the direct 
     operation of the center, including funds expended for student 
     travel, national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part for 
     facility construction, rehabilitation, and acquisition 
     expenses;
       (5) information on the amount of funds required to be 
     expended under such part to complete each new or proposed Job 
     Corps center, and to rehabilitate and repair each existing 
     Job Corps center, as of the date of the submission of the 
     report;
       (6) a summary of the information described in paragraphs 
     (2) through (5) for all Job Corps centers;
       (7) an assessment of the need to serve at-risk youth in the 
     Job Corps program, including--
       (A) a cost-benefit analysis of the residential component of 
     the Job Corps program;
       (B) the need for residential education and training 
     services for at-risk youth, analyzed for each State and for 
     the United States; and
       (C) the distribution of training positions in the Job Corps 
     program, as compared to the need for the services described 
     in subparagraph (B), analyzed for each State;
       (8) an overview of the Job Corps program as a whole and an 
     analysis of individual Job Corps centers, including a 5-year 
     performance measurement summary that includes information, 
     analyzed for the program and for each Job Corps center, on--
       (A) the number of enrollees served;
       (B) the number of former enrollees who entered employment, 
     including the number of former enrollees placed in a position 
     related to the job training received through the program and 
     the number placed in a position not related to the job 
     training received;
       (C) the number of former enrollees placed in jobs for 32 
     hours per week or more;
       (D) the number of former enrollees who entered employment 
     and were retained in the employment for more than 13 weeks;
       (E) the number of former enrollees who entered the Armed 
     Forces;
       (F) the number of former enrollees who completed vocational 
     training, and the rate of such completion, analyzed by 
     vocation;
       (G) the number of former enrollees who entered 
     postsecondary education;
       (H) the number and percentage of early dropouts from the 
     Job Corps program;
       (I) the average wage of former enrollees, including wages 
     from positions described in subparagraph (B);
       (J) the number of former enrollees who obtained a secondary 
     school diploma or its recognized equivalent;
       (K) the average level of learning gains for former 
     enrollees; and
       (L) the number of former enrollees that did not--
       (i) enter employment or postsecondary education;
       (ii) complete a vocational education program; or
       (iii) make identifiable learning gains;
       (9) information regarding the performance of all existing 
     Job Corps centers over the 3 years preceding the date of 
     submission of the report; and
       (10) job placement rates for each Job Corps center and each 
     entity providing services to a Job Corps center.
       (b) Recommendations of Advisory Committee.--
       (1) Recommendations.--The advisory committee shall, based 
     on the results of the review described in subsection (a), 
     make recommendations to the Secretary of Labor, regarding 
     improvements in the operation of the Job Corps program, 
     including--
       (A) closing Job Corps centers described in paragraph (2) in 
     cases in which prospects for performance improvement are poor 
     or facility rehabilitation, renovation, or repair is not 
     cost-effective;
       (B) relocating Job Corps centers described in paragraph 
     (2)(A)(iii) in cases in which facility rehabilitation, 
     renovation, or repair is not cost-effective; and
       (C) taking any other action that would improve the 
     operation of a Job Corps center.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the advisory 
     committee shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the review described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the review 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the advisory committee may determine 
     to be appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the advisory committee shall not recommend 
     that the Secretary of Labor close the only Job Corps center 
     in a State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the advisory committee shall not evaluate the center 
     under this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the advisory 
     committee shall submit a report to the Secretary of Labor, 
     which shall contain a detailed statement of the findings and 
     conclusions of the advisory committee resulting from the 
     review described in subsection (a) together with the 
     recommendations described in paragraph (1).
       (c) Implementation of Performance Improvements.--The 
     Secretary shall, after reviewing the report submitted under 
     subsection (b)(3), implement improvements in the operation of 
     the Job Corps program, including the appropriate closings of 
     individual Job Corps centers by September 30, 1997. Funds 
     saved through the implementation of such improvements shall 
     be used to maintain overall Job Corps program service levels, 
     improve facilities at existing Job Corps centers, relocate 
     Job Corps centers, initiate new Job Corps centers, and make 
     other performance improvements in the Job Corps program.
       (d) Report to Congress.--The Secretary shall annually 
     report to Congress the information specified in paragraphs 
     (8), (9), and (10) of subsection (a) and such additional 
     information relating to the Job Corps program as the 
     Secretary may determine to be appropriate.

     SEC. 758. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Report.--Section 757 shall take effect on the date of 
     enactment of this Act.
       In section 759(a), strike ``to States to assist the States 
     in paying for the cost of carrying out'' and insert ``for 
     States, to enable the Secretary of Labor to carry out in the 
     States, and to assist the States in paying for the cost of 
     carrying out,''.
       In section 759(b)(1), strike ``The State shall use a 
     portion of the funds made available to the State through an 
     allotment received under subsection (c)'' and insert ``The 
     Secretary of Labor shall use the funds made available for a 
     State through an allotment made under subsection (c)(2), and, 
     at the election of the State, a portion of the funds made 
     available to the State through an allotment received under 
     subsection (c)(3),''.
       In section 759(b)(1), strike ``section 755'' and insert 
     ``section 757''.
       In section 759(b)(2), strike ``the funds described in 
     paragraph (1)'' and insert ``the funds made available to a 
     State through an allotment received under subsection 
     (c)(3)''.
       In section 759(c)(1), in the matter preceding subparagraph 
     (A), strike ``allot to'' and insert ``allot for''.
       In section 759(c)(1)(A), strike ``available to'' and insert 
     ``available for''.
       In section 759(c)(2), strike ``to each State'' and insert 
     ``for each State''.
       In section 759(c)(2), strike ``to carry out'' and insert 
     ``to enable the Secretary of Labor to carry out''.
       In section 759(c)(2), strike ``section 755(a)(2)'' and 
     insert ``section 757(a)(2)''.
       In section 759(d)(1), strike ``subsection (c)'' and insert 
     ``subsection (c)(3)''.
       In section 771(b), strike ``this title'' and insert ``this 
     title (other than subtitle C)''.
       In section 772(a)(4)(B), strike ``this title'' and insert 
     ``this title (other than subtitle C)''.
       In section 776(c)(2)(H), strike ``this title'' and insert 
     ``this title (other than subtitle C)''.
       In the first sentence of section 776(c)(5)(A), strike 
     ``this title'' and insert ``this title (other than subtitle 
     C)''.
       In the second sentence of section 776(c)(5)(A), strike 
     ``this title'' and insert ``this title (other than subtitle 
     C)''.
                                 ______


               ABRAHAM (AND LIEBERMAN) AMENDMENT NO. 2511

  Mr. ABRAHAM (for himself and Mr. Lieberman) proposed an amendment to 
amendment No. 2280 proposed by Mr. 

[[Page S 12977]]
Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place in the bill, add the following new 
     section:

     ``SEC. ------. SENSE OF THE SENATE REGARDING ENTERPRISE 
                   ZONES.

       (a) Findings.--The Senate finds that--
       (1) Many of the Nation's urban centers are places with high 
     levels of poverty, high rates of welfare dependency, high 
     crime rates, poor schools, and joblessness;
       (2) Federal tax incentives and regulatory reforms can 
     encourage economic growth, job creation and small business 
     formation in many urban centers;
       (3) Encouraging private sector investment in America's 
     economically distressed urban and rural areas is essential to 
     breaking the cycle of poverty and the related ills of crime, 
     drug abuse, illiteracy, welfare dependency, and unemployment;
       (4) The empowerment zones enacted in 1993 should be 
     enhanced by providing incentives to increase entrepreneurial 
     growth, capital formation, job creation, educational 
     opportunities, and home ownership in the designated 
     communities and zones;
       (b) Sense of the Senate.--Therefore, it is the Sense of the 
     Senate that the Congress should adopt enterprise zone 
     legislation in the 104th Congress, and that such enterprise 
     zone legislation provide the following incentives and 
     provisions:
       (1) Federal tax incentives that expand access to capital, 
     increase the formation and expansion of small businesses, and 
     promote commercial revitalization;
       (2) Regulatory reforms that allow localities to petition 
     Federal agencies, subject to the relevant agencies' approval, 
     for waivers or modifications of regulations to improve job 
     creation, small business formation and expansion, community 
     development, or economic revitalization objectives of the 
     enterprise zones;
       (3) Home ownership incentives and grants to encourage 
     resident management of public housing and home ownership of 
     public housing;
       (4) School reform pilot projects in certain designated 
     enterprise zones to provide low-income parents with new and 
     expanded educational options for their children's elementary 
     and secondary schooling.
                                 ______


                      ABRAHAM AMENDMENT NO. 25121

  Mr. ABRAHAM proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 46, after line 24, insert the following:
       ``(a) Grant Increased to Reward States That Reduce Out-of-
     Wedlock Births.--
       ``(1) In general.--The amount of the grant payable to a 
     State under section 403(a)(1)(A) for fiscal years 1998, 1999, 
     and 2000 shall be increased by--
       ``(A) 5 percent if--
       ``(i) the illegitimacy ratio of the State for the fiscal 
     year is at least 1 percentage point lower than the 
     illegitimacy ratio of the State for fiscal year 1995; and
       ``(ii) the rate of induced pregnancy terminations in the 
     State for the same fiscal year is not higher than the rate of 
     induced pregnancy terminations in the State for fiscal year 
     1995; or
       ``(B) 10 percent if--
       ``(i) the illegitimacy ratio of the State for the fiscal 
     year is at least 2 percentage points lower than the 
     illegitimacy ratio of the State for fiscal year 1995; and
       ``(ii) the rate of induced pregnancy terminations in the 
     State for the same fiscal year is not higher than the rate of 
     induced pregnancy terminations in the State for fiscal year 
     1995.
       ``(2) Determination of the secretary.--The Secretary shall 
     not increase the grant amount under paragraph (1) if the 
     Secretary determines that the relevant difference between the 
     illegitimacy ratio of a State for an applicable fiscal year 
     and the illegitimacy ratio of such State for fiscal year 1995 
     is the result of a change in State methods of reporting data 
     used to calculate the illegitimacy ratio or if the Secretary 
     determines that the relevant non-increase in the rate of 
     induced pregnancy terminations for an applicable fiscal year 
     as compared to fiscal year 1995 is the result of a change in 
     State methods of reporting data used to calculate the rate of 
     induced pregnancy terminations.
       ``(3) Illegitimacy ratio.--For purposes of this subsection, 
     the term `illegitimacy ratio' means, with respect to a State 
     and a fiscal year--
       ``(A) the number of out-of-wedlock births that occurred in 
     the State during the fiscal year; divided by
       ``(B) the number of births that occurred in the State 
     during the same fiscal year
       ``(4) Availability of amounts.--There are authorized to be 
     appropriated and there are appropriated such sums as may be 
     necessary for fiscal years 1998, 1990, and 2000 for the 
     purpose of increasing the amount of the grant payable to a 
     State under section 403(a)(1) in accordance with this 
     subsection.
                                 ______


                      FEINSTEIN AMENDMENT NO. 2513

  Mrs. FEINSTEIN proposed an amendment to amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 276, line 22, strike ``or''.
       On page 276, line 23, insert ``, or (VI)'' after ``(V)''.
       On page 277, line 10, strike ``and''.
       On page 277, line 16, strike the period and insert a 
     semicolon.
       On page 277, between lines 16 and 17, insert the following:
       (F) assistance or services provided to abused or neglected 
     children and their families; and
       (G) assistance or benefits under other Federal non-cash 
     programs.
       On page 278, line 22, strike ``or''.
       On page 278, line 25, insert ``; or (VI) an alien lawfully 
     admitted to the United States for permanent residence who has 
     been subjected to domestic violence, or whose household 
     members have been subjected to domestic violence, by the 
     alien's sponsor or by members of the sponsor's household'' 
     after ``title II''.
                                 ______


               LIEBERMAN (AND OTHERS) AMENDMENT NO. 2514

  Mr. MOYNIHAN (for Mr. Lieberman for himself, Mr. Breaux, and Mr. 
Conrad) proposed an amendment to amendment NO. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       On page 17, line 8, insert ``and for each of fiscal years 
     1998, 1999, and 2000, the amount of the State's job placement 
     performance bonus determined under subsection (f)(1) for the 
     fiscal year'' after ``year''.
       On page 17, line 22, insert ``and the applicable percent 
     specified under subsection (f)(2)(B)(ii) for such fiscal 
     year'' after ``(B)''.
       On page 29, between lines 15 and 16, insert:
       ``(f) Job Placement Performance Bonus.--
       ``(1) In general.--The job placement performance bonus 
     determined with respect to a State and a fiscal year is an 
     amount equal to the amount of the State's allocation of the 
     job placement performance fund determined in accordance with 
     the formula developed under paragraph (2).
       ``(2) Allocation formula; bonus fund.--
       ``(A) Allocation formula.--
       ``(i) In general.--Not later than September 30, 1996, the 
     Secretary of Health and Human Services shall develop and 
     publish in the Federal Register a formula for allocating 
     amounts in the job placement performance bonus fund to States 
     based on the number of families that received assistance 
     under a State program funded under this part in the preceding 
     fiscal year that became ineligible for assistance under the 
     State program as a result of unsubsidized employment during 
     such year.
       ``(ii) Factors to consider.--In developing the allocation 
     formula under clause (i), the Secretary shall--
       ``(I) provide a greater financial bonus for individuals in 
     families described in clause (i) who remain employed for 
     greater periods of time or are at greater risk of long-term 
     welfare dependency; and
       ``(II) take into account the unemployment conditions of 
     each State or geographic area.
       ``(B) Job placement performance bonus fund.--
       ``(i) In general.--The amount in the job placement 
     performance bonus fund for a fiscal year shall be an amount 
     equal to--
       ``(I) the applicable percentage of the amount appropriated 
     under section 403(a)(2)(A) for such fiscal year; and
       ``(II) the amount of the reduction in grants made under 
     this section for the preceding fiscal year resulting from the 
     application of section 407.
       ``(ii) Applicable percentage.--For purposes of clause 
     (i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

``For fiscal year:                        The applicable percentage is:
    1998..............................................................3
    1999..............................................................4
    2000 and each fiscal year thereafter..............................5

       On page 29, line 16, strike ``(f)'' and insert ``(g)''.
       On page 66, line 13, insert ``and a preliminary assessment 
     of the job placement performance bonus established under 
     section 403(f)'' before the end period.
                                 ______


                      LIEBERMAN AMENDMENT NO. 2515

  Mr. MOYNIHAN (for Mr. Lieberman) proposed an amendment to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place, insert:

     SEC.  . NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--The Secretary of Education and the 
     Secretary of Health and Human Services 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; 

[[Page S 12978]]

       (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. --. ESTABLISHING NATIONAL GOALS TO REDUCE OUT-OF-WEDLOCK 
                   PREGNANCIES AND TO PREVENT TEENAGE PREGNANCIES.

       (a) In General.--Not later than January 1, 1997, the 
     Secretary of Health and Human Services shall establish and 
     implement a strategy for--
       (1) reducing out-of-wedlock teenage pregnancies by at least 
     5 percent a year, and
       (2) assuring that at least 25 percent of the communities in 
     the United States have teenage pregnancy prevention programs 
     in place.
       (b) Report.--Not later than June 30, 1998, and annually 
     thereafter, the Secretary shall report to the Congress with 
     respect to the progress that has been made in meeting the 
     goals described in paragraphs (1) and (2) of subsection (a).
       (b) Out-of-Wedlock and Teenage Pregnancy Prevention 
     Programs.--Section 2002 (42 U.S.C. 1397a) is amended by 
     adding at the end the following new subsection:
       ``(f)(1) Beginning in fiscal year 1996 and each fiscal year 
     thereafter, each State shall use at least 5 percent of its 
     allotment under section 2003 for the fiscal year to develop 
     and implement a State program to reduce the incidence of out-
     of-wedlock and teenage pregnancies in the State.
       ``(2) The Secretary shall conduct a study with respect to 
     the State programs implemented under paragraph (1) to 
     determine the relative effectiveness of the different 
     approaches for reducing out-of-wedlock pregnancies and 
     preventing teenage pregnancy utilized in the programs 
     conducted under this subsection and the approaches that can 
     be best replicated by other States.
       ``(3) Each State conducting a program under this subsection 
     shall provide to the Secretary, in such form and with such 
     frequency as the Secretary requires, data from the programs 
     conducted under this subsection. The Secretary shall report 
     to the Congress annually on the progress of the programs and 
     shall, not later than June 30, 1998, submit to the Congress a 
     report on the study required under paragraph (2).''.

     SEC. --. SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
                   STATUTORY RAPE LAWS.

       It is the sense of the Senate that States and local 
     jurisdictions should aggressively enforce statutory rape 
     laws.
                                 ______


                  HATCH (AND KOHL) AMENDMENT NO. 2516

  Mr. HATCH (for himself and Mr. Kohl) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       Beginning on page 10, strike line 13 and all that follows 
     through line 4 on page 69, and insert the following:
     ``for such families; and
       ``(3) prevent and reduce the incidence of out-of-wedlock 
     pregnancies; and
       ``(4) provide child care assistance to eligible parents and 
     providers.

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

       ``(a) In General.--As used in this part, the term `eligible 
     State' means, with respect to a fiscal year, a State that has 
     submitted to the Secretary a plan that includes the 
     following:
       ``(1) Outline of family assistance program.--A written 
     document that outlines how the State intends to do the 
     following:
       ``(A) Conduct a program designed to serve all political 
     subdivisions in the State to--
       ``(i) provide assistance to needy families with not less 
     than 1 minor child; and
       ``(ii) provide a parent or caretaker in such families with 
     work experience, assistance in finding employment, and other 
     work preparation activities and support services that the 
     State considers appropriate to enable such families to leave 
     the program and become self-sufficient.
       ``(B) Require a parent or caretaker receiving assistance 
     under the program to engage in work (as defined by the State) 
     when the State determines the parent or caretaker is ready to 
     engage in work, or after 24 months (whether or not 
     consecutive) of receiving assistance under the program, 
     whichever is earlier.
       ``(C) Satisfy the minimum participation rates specified in 
     section 404.
       ``(D) Treat--
       ``(i) families with minor children moving into the State 
     from another State; and
       ``(ii) noncitizens of the United States.
       ``(E) Safeguard and restrict the use and disclosure of 
     information about individuals and families receiving 
     assistance under the program.
       ``(F) Establish goals and take action to prevent and reduce 
     the incidence of out-of-wedlock pregnancies, with special 
     emphasis on teenage pregnancies.
       ``(G) With respect to a State that desires to receive a 
     grant under section 403(b)(6), conduct a program designed to 
     serve all political subdivisions in the State to provide 
     child care assistance to eligible parents and providers and 
     safeguard and restrict the use and disclosure of information 
     about individuals receiving assistance under the program.
       ``(2) Certification that the state will operate a child 
     support enforcement program.--A certification by the chief 
     executive officer of the State that, during the fiscal year, 
     the State will operate a child support enforcement program 
     under the State plan approved under part D.
       ``(3) Certification that the state will operate a child 
     protection program.--A certification by the chief executive 
     officer of the State that, during the fiscal year, the State 
     will operate a child protection program under the State plan 
     approved under part B.
       ``(4) Certification that the state will operate a foster 
     care and adoption assistance program.--A certification by the 
     chief executive officer of the State that, during the fiscal 
     year, the State will operate a foster care and adoption 
     assistance program under the State plan approved under part 
     E.
       ``(5) Certification that the state will participate in the 
     income and eligibility verification system.--A certification 
     by the chief executive officer of the State that, during the 
     fiscal year, the State will participate in the income and 
     eligibility verification system required by section 1137.
       ``(6) Certification of the administration of the program.--
     A certification by the chief executive officer of the State 
     specifying which State agency or agencies are responsible for 
     the administration and supervision of the State program for 
     the fiscal year.
       ``(7) Certification that required reports will be 
     submitted.--A certification by the chief executive officer of 
     the State that the State shall provide the Secretary with any 
     reports required under this part.
       ``(8) Estimate of fiscal year state and local 
     expenditures.--An estimate of the total amount of State and 
     local expenditures under the State program for the fiscal 
     year.
       ``(b) Certification That the State Will Provide Access to 
     Indians.--
       ``(1) In general.--In recognition of the Federal 
     Government's trust responsibility to, and government-to-
     government relationship with, Indian tribes, the Secretary 
     shall ensure that Indians receive at least their equitable 
     share of services under the State program, by requiring a 
     certification by the chief executive officer of each State 
     described in paragraph (2) that, during the fiscal year, the 
     State shall provide Indians in each Indian tribe that does 
     not have a tribal family assistance plan approved under 
     section 414 for a fiscal year with equitable access to 
     assistance under the State program funded under this part.
       ``(2) State described.--For purposes of paragraph (1), a 
     State described in this paragraph is a State in which there 
     is an Indian tribe that does not have a tribal family 
     assistance plan approved under section 414 for a fiscal year.
       ``(c) Definitions.--For purposes of this part, the 
     following definitions shall apply:
       ``(1) Adult.--The term `adult' means an individual who is 
     not a minor child.
       ``(2) Minor child.--The term `minor child' means an 
     individual--
       ``(A) who--
       ``(i) has not attained 18 years of age; or
       ``(ii) has not attained 19 years of age and is a full-time 
     student in a secondary school (or in the equivalent level of 
     vocational or technical training); and
       ``(B) who resides with such individual's custodial parent 
     or other caretaker.
       ``(3) Fiscal year.--The term `fiscal year' means any 12-
     month period ending on September 30 of a calendar year.
       ``(4) Indian, indian tribe, and tribal organization.--The 
     terms `Indian', `Indian tribe', and `tribal organization' 
     have the meaning given such terms by section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).
       ``(5) State.--Except as otherwise specifically provided, 
     the term `State' includes the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, and American Samoa.
       ``(6) Child care certificate.--The term `child care 
     certificate' means a certificate (that may be a check or 
     other disbursement) that is issued by a State or local 
     government under this title directly to a parent who may use 
     such certificate only as payment for child care services. 
     Nothing in this title shall preclude the use of such 
     certificates for sectarian child care services if freely 
     chosen by the parent. For purposes of this title, child care 
     certificates shall not be considered to be grants or 
     contracts.
       ``(7) Eligible child.--The term `eligible child' means an 
     individual--
       ``(A) who is less than 13 years of age; and
       ``(B) who--
       ``(i) resides with a parent or parents who are working or 
     attending a job training or educational program; or
       ``(ii) is receiving, or needs to receive, protective 
     services and resides with a parent or parents not described 
     in clause (i).
       ``(8) Eligible child care provider.--The term `eligible 
     child care provider' means--

[[Page S 12979]]

       ``(A) a center-based child care provider, a group home 
     child care provider, a family child care provider, or other 
     provider of child care services for compensation that--
       ``(i) is licensed, regulated, or registered under State 
     law; and
       ``(ii) satisfies the State and local requirements;
     applicable to the child care services it provides; or
       ``(B) a child care provider that is 18 years of age or 
     older who provides child care services only to eligible 
     children who are, by affinity or consanguinity, or by court 
     decree, the grandchild, niece, or nephew of such provider, if 
     such provider is registered and complies with any State 
     requirements that govern child care provided by the relative 
     involved.
       ``(9) Family child care provider.--The term `family child 
     care provider' means one individual who provides child care 
     services for fewer than 24 hours per day, as the sole 
     caregiver, and in a private residence.
       ``(10) Parent.--The term `parent' includes a legal guardian 
     or other person standing in loco parentis.

     ``SEC. 403. PAYMENTS TO STATES AND INDIAN TRIBES.

       ``(a) Grant Amount.--
       ``(1) In general.--Subject to the provisions of paragraph 
     (3), section 407 (relating to penalties), and section 414(g), 
     for each of fiscal years 1996, 1997, 1998, 1999, and 2000, 
     the Secretary shall pay--
       ``(A) each eligible State a grant in an amount equal to the 
     State family assistance grant for the fiscal year; and
       ``(B) each Indian tribe with an approved tribal family 
     assistance plan a tribal family assistance grant in 
     accordance with section 414.
       ``(2) State family assistance grant.--
       ``(A) In general.--For purposes of paragraph (1)(A), a 
     State family assistance grant for any State for a fiscal year 
     is an amount equal to the total amount of the Federal 
     payments to the State under section 403 for fiscal year 1994 
     (as such section was in effect during such fiscal year and as 
     such payments were reported by the State on February 14, 
     1995), reduced by the amount (if any) determined under 
     subparagraph (B).
       ``(B) Amount attributable to certain indian families served 
     by indian tribes.--
       ``(i) In general.--For purposes of subparagraph (A), the 
     amount determined under this subparagraph is an amount equal 
     to the Federal payments to the State under section 403 for 
     fiscal year 1994 (as in effect during such fiscal year) 
     attributable to expenditures by the State under parts A and F 
     of this title (as so in effect) for Indian families described 
     in clause (ii).
       ``(ii) Indian families described.--For purposes of clause 
     (i), Indian families described in this clause are Indian 
     families who reside in a service area or areas of an Indian 
     tribe receiving a tribal family assistance grant under 
     section 414.
       ``(C) Notification.--Not later than 3 months prior to the 
     payment of each quarterly installment of a State grant under 
     subsection (a)(1), the Secretary shall notify the State of 
     the amount of the reduction determined under subparagraph (B) 
     with respect to the State.
       ``(3) Supplemental grant amount for population increases in 
     certain states.--
       ``(A) In general.--The amount of the grant payable under 
     paragraph (1) to a qualifying State for each of fiscal years 
     1997, 1998, 1999, and 2000 shall be increased by an amount 
     equal to 2.5 percent of the amount that the State received 
     under this section in the preceding fiscal year.
       ``(B) Increase to remain in effect even if state fails to 
     qualify in later years.--Subject to section 407, in no event 
     shall the amount of a grant payable under paragraph (1) to a 
     State for any fiscal year be less than the amount the State 
     received under this section for the preceding fiscal year.
       ``(C) Qualifying state.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `qualifying State', with respect to any fiscal year, means a 
     State that--

       ``(I) had an average level of State welfare spending per 
     poor person in the preceding fiscal year that was less than 
     the national average level of State welfare spending per poor 
     person in the preceding fiscal year; and
       ``(II) had an estimated rate of State population growth as 
     determined by the Bureau of the Census for the most recent 
     fiscal year for which information is available that was 
     greater than the average rate of population growth for all 
     States as determined by the Bureau of the Census for such 
     fiscal year.

       ``(ii) Certain states deemed qualifying states.--For 
     purposes of this paragraph, a State shall be deemed to be a 
     qualifying State for fiscal years 1997, 1998, 1999, and 2000 
     if the level of State welfare spending per poor person in 
     fiscal year 1996 was less than 35 percent of the national 
     average level of State welfare spending per poor person in 
     fiscal year 1996.
       ``(iii) State must qualify in fiscal year 1997.--A State 
     shall not be eligible to be a qualifying State under clause 
     (i) for fiscal years after 1997 if the State was not a 
     qualifying State under clause (i) in fiscal year 1997.
       ``(D) Definitions.--For purposes of this paragraph:
       ``(i) Level of state welfare spending per poor person.--The 
     term `level of State welfare spending per poor person' means, 
     with respect to a State for any fiscal year--

       ``(I) the amount of the grant received by the State under 
     this section (prior to the application of section 407); 
     divided by
       ``(II) the number of the individuals in the State who had 
     an income below the poverty line according to the 1990 
     decennial census.

       ``(ii) National average level of state welfare spending per 
     poor person.--The term `national average level of State 
     welfare spending per poor person' means an amount equal to--

       ``(I) the amount paid in grants under this section (prior 
     to the application of section 407); divided by
       ``(II) the number of individuals in all States with an 
     income below the poverty line according to the 1990 decennial 
     census.

       ``(iii) Poverty line.--The term `poverty line' has the same 
     meaning given such term in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)).
       ``(iv) State.--The term `State' means each of the 50 States 
     of the United States.
       ``(4) Appropriation.--
       ``(A) States.--There are authorized to be appropriated and 
     there are appropriated $16,795,323,000 for each fiscal year 
     described in paragraph (1) for the purpose of paying--
       ``(i) grants to States under paragraph (1)(A); and
       ``(ii) tribal family assistance grants under paragraph 
     (1)(B).
       ``(B) Adjustment for qualifying states.--For the purpose of 
     increasing the amount of the grant payable to a State under 
     paragraph (1) in accordance with paragraph (3), there are 
     authorized to be appropriated and there are appropriated--
       ``(i) for fiscal year 1997, $85,860,000;
       ``(ii) for fiscal year 1998, $173,276,000;
       ``(iii) for fiscal year 1999, $263,468,000; and
       ``(iv) for fiscal year 2000, $355,310,000.
       ``(5) Child care grant.--
       ``(A) In general.--Subject to the provisions of section 
     406, the Secretary shall pay to each eligible State 
     submitting a State plan that complies with section 
     402(a)(1)(G) for each of fiscal years 1996, 1997, 1998, 1999, 
     and 2000 a grant in an amount equal to the State child care 
     grant for the fiscal year.
       ``(B) Funding.--
       ``(i) States.--Of the amounts appropriated under paragraph 
     (4)(A) for a fiscal year, the Secretary shall make available 
     $979,877,626 for each such fiscal year for the purpose of 
     paying State child care grants to States under subsection 
     (b)(6).
       ``(ii) Indian tribes.--The Secretary shall make available 
     ____ percent of the amount made available under clause (i) 
     for each such fiscal year for the purpose of paying State 
     child care grants to Indian tribes under such paragraph.
       ``(b) Use of Grant.--
       ``(1) In general.--Subject to this part, a State to which a 
     grant is made under this section may use the grant--
       ``(A) in any manner that is reasonably calculated to 
     accomplish the purpose of this part; or
       ``(B) in any manner that such State used amounts received 
     under part A or F of this title, as such parts were in effect 
     before October 1, 1995.
       ``(2) Authority to treat interstate immigrants under rules 
     of former state.--A State to which a grant is made under this 
     section may apply to a family the rules of the program 
     operated under this part of another State if the family has 
     moved to the State from the other State and has resided in 
     the State for less than 12 months.
       ``(3) Authority to reserve certain amounts for 
     assistance.--A State may reserve amounts paid to the State 
     under this part for any fiscal year for the purpose of 
     providing, without fiscal year limitation, assistance under 
     the State program operated under this part.
       ``(4) Authority to operate employment placement program.--A 
     State to which a grant is made under this section may use a 
     portion of the grant to make payments (or provide job 
     placement vouchers) to State-approved public and private job 
     placement agencies that provide employment placement services 
     to individuals who receive assistance under the State program 
     funded under this part.
       ``(5) Transferability of grant amounts.--A State may use up 
     to 30 percent of amounts received from a grant under this 
     part for a fiscal year to carry out State activities under 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858 et seq.) (relating to child care block grants).
       ``(6) State child care grant.--
       ``(A) In general.--For purposes of subsection (a)(5)(A), a 
     State child care grant for any State for a fiscal year is an 
     amount equal to the total amount of the Federal payments to 
     the State under section--
       ``(i) 402(g)(3)(A) of the Social Security Act (as such 
     section was in effect before October 1, 1995) for amounts 
     expended for child care pursuant to paragraph (1) of such 
     section;
       ``(ii) 403(l)(1)(A) of the Social Security Act (as such 
     section was in effect before October 1, 1995) for amounts 
     expended for child care pursuant to section 402(g)(1)(A) of 
     such Act, in the case of a State with respect to which 
     section 1108 of such Act applies; and
       ``(iii) 403(n) of the Social Security Act (as such section 
     was in effect before October 1, 1995) for child care services 
     pursuant to section 402(i) of such Act.
       ``(B) Use of funds.--Subject to this title, a State to 
     which a State child care grant is made under subsection 
     (a)(5)(A), may use the grant in any manner that is reasonably 
     calculated to accomplish the purpose of this title, including 
     making child care services available through--

[[Page S 12980]]

       ``(i) the provision of child care certificates to parents 
     on behalf of an eligible child;
       ``(ii) the reimbursement of, or contracting with, eligible 
     child care providers; and
       ``(iii) any other activities to increase child care access 
     or affordability as determined appropriate by the State.
       ``(c) Timing of Payments.--The Secretary shall pay each 
     grant payable to a State under this section in quarterly 
     installments.
       ``(d) Federal Loan Fund for State Welfare Programs.--
       ``(1) Establishment.--There is hereby established in the 
     Treasury of the United States a revolving loan fund which 
     shall be known as the `Federal Loan Fund for State Welfare 
     Programs' (hereafter for purposes of this section referred to 
     as the `fund').
       ``(2) Deposits into fund.--
       ``(A) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, $1,700,000,000 
     are hereby appropriated for fiscal year 1996 for payment to 
     the fund.
       ``(B) Loan repayments.--The Secretary shall deposit into 
     the fund any principal or interest payment received with 
     respect to a loan made under this subsection.
       ``(3) Availability.--Amounts in the fund are authorized to 
     remain available without fiscal year limitation for the 
     purpose of making loans and receiving payments of principal 
     and interest on such loans, in accordance with this 
     subsection.
       ``(4) Use of fund.--
       ``(A) Loans to states.--The Secretary shall make loans from 
     the fund to any loan-eligible State, as defined in 
     subparagraph (D), for a period to maturity of not more than 3 
     years.
       ``(B) Rate of interest.--The Secretary shall charge and 
     collect interest on any loan made under subparagraph (A) at a 
     rate equal to the Federal short-term rate, as defined in 
     section 1274(d) of the Internal Revenue Code of 1986.
       ``(C) Maximum loan.--The cumulative amount of any loans 
     made to a State under subparagraph (A) during fiscal years 
     1996 through 2000 shall not exceed 10 percent of the State 
     family assistance grant under subsection (a)(2) for a fiscal 
     year.
       ``(D) Loan-eligible state.--For purposes of subparagraph 
     (A), a loan-eligible State is a State which has not had a 
     penalty described in section 407(a)(1) imposed against it at 
     any time prior to the loan being made.
       ``(5) Limitation on use of loan.--A State shall use a loan 
     received under this subsection only for any purpose for which 
     grant amounts received by the State under subsection (a) may 
     be used including--
       ``(A) welfare anti-fraud activities; and
       ``(B) the provision of assistance under the State program 
     to Indian families that have moved from the service area of 
     an Indian tribe with a tribal family assistance plan approved 
     under section 414.
       ``(e) Special Rule for Indian Tribes That Received JOBS 
     Funds.--
       ``(1) In general.--The Secretary shall pay to each eligible 
     Indian tribe for each of fiscal years 1996, 1997, 1998, 1999, 
     and 2000 a grant in an amount equal to the amount received by 
     such Indian tribe in fiscal year 1995 under section 482(i) 
     (as in effect during such fiscal year) for the purpose of 
     operating a program to make work activities available to 
     members of the Indian tribe.
       ``(2) Eligible indian tribe.--For purposes of paragraph 
     (1), the term `eligible Indian tribe' means an Indian tribe 
     or Alaska Native organization that conducted a job 
     opportunities and basic skills training program in fiscal 
     year 1995 under section 482(i) (as in effect during such 
     fiscal year).
       ``(3) Appropriation.--There are authorized to be 
     appropriated and there are hereby appropriated $7,638,474 for 
     each fiscal year described in paragraph (1) for the purpose 
     of paying grants in accordance with such paragraph.
       ``(f) Secretary.--For purposes of this section, the term 
     `Secretary' means the Secretary of the Treasury.

     ``SEC. 404. MANDATORY WORK REQUIREMENTS.

       ``(a) Participation Rate Requirements.--A State to which a 
     grant is made under section 403 for a fiscal year shall 
     achieve the minimum participation rate specified in the 
     following tables for the fiscal year with respect to--
       ``(1) all families receiving assistance under the State 
     program funded under this part:
                                                            The minimum
                                                          participation
                                                           rate for all
      ``If the fiscal year is:                             families is:
        1996.......................................................25  
        1997.......................................................30  
        1998.......................................................35  
        1999.......................................................40  
        2000 or thereafter......................................50; and

       ``(2) with respect to 2-parent families receiving such 
     assistance:

                                                            The minimum
                                                          participation
      ``If the fiscal year is:                                 rate is:
        1996.......................................................60  
        1997 or 1998...............................................75  
        1999 or thereafter........................................90.  

       ``(b) Calculation of Participation Rates.--
       ``(1) For all families.--
       ``(A) Average monthly rate.--For purposes of subsection 
     (a)(1), the participation rate for all families of a State 
     for a fiscal year is the average of the participation rates 
     for all families of the State for each month in the fiscal 
     year.
       ``(B) Monthly participation rates.--The participation rate 
     of a State for all families of the State for a month, 
     expressed as a percentage, is--
       ``(i) the sum of--

       ``(I) the number of all families receiving assistance under 
     the State program funded under this part that include an 
     adult who is engaged in work for the month;
       ``(II) the number of all families receiving assistance 
     under the State program funded under this part that are 
     subject in such month to a penalty described in paragraph 
     (1)(A) or (2)(A) of subsection (d) but have not been subject 
     to such penalty for more than 3 months within the preceding 
     12-month period (whether or not consecutive);
       ``(III) the number of all families receiving assistance 
     under the State program funded under this part that have 
     become ineligible for assistance under the State program 
     within the previous 6-month period because of employment and 
     that include an adult who is employed for the month; and
       ``(IV) beginning in the first month beginning after the 
     promulgation of the regulations described in paragraph (3) 
     and in accordance with such regulations, the average monthly 
     number of all families that are not receiving assistance 
     under the State program funded under this part as a result of 
     the State's diversion of such families from the State program 
     prior to such families receipt of assistance under the 
     program; divided by

       ``(ii) the total number of all families receiving 
     assistance under the State program funded under this part 
     during the month that include an adult.
       ``(2) 2-parent families.--
       ``(A) Average monthly rate.--For purposes of subsection 
     (a)(2), the participation rate for 2-parent families of a 
     State for a fiscal year is the average of the participation 
     rates for 2-parent families of the State for each month in 
     the fiscal year.
       ``(B) Monthly participation rates.--The participation rate 
     of a State for 2-parent families of the State for a month, 
     expressed as a percentage, is--
       ``(i) the total number of 2-parent families described in 
     paragraph (1)(B)(i); divided by
       ``(ii) the total number of 2-parent families receiving 
     assistance under the State program funded under this part 
     during the month that include an adult.
       ``(3) Regulations relating to calculation of families 
     diverted from assistance.--
       ``(A) In general.--Not later than 1 year after the date of 
     the enactment of the Work Opportunity Act of 1995, the 
     Secretary shall consult with the States and establish, by 
     regulation, a method to measure the number of families 
     diverted by a State from the State program funded under this 
     part prior to such families receipt of assistance under the 
     program.
       ``(B) Eligibility changes not counted.--The regulations 
     described in subparagraph (A) shall not take into account 
     families that are diverted from a State program funded under 
     this part as a result of differences in eligibility criteria 
     under a State program funded under this part and eligibility 
     criteria under such State's plan under the aid to families 
     with dependent children program, as such plan was in effect 
     on the day before the date of the enactment of the Work 
     Opportunity Act of 1995.
       ``(4) State option to include individuals receiving 
     assistance under a tribal family assistance plan.--For 
     purposes of paragraphs (1)(B) and (2)(B), a State may, at its 
     option, include families receiving assistance under a tribal 
     family assistance plan approved under section 414. For 
     purposes of the previous sentence, an individual who receives 
     assistance under a tribal family assistance plan approved 
     under section 414 shall be treated as being engaged in work 
     if the individual is participating in work under standards 
     that are comparable to State standards for being engaged in 
     work.
       ``(c) Engaged in Work.--
       ``(1) All families.--For purposes of subsection 
     (b)(1)(B)(i)(I), an adult is engaged in work for a month in a 
     fiscal year if the adult is participating in work for at 
     least the minimum average number of hours per week specified 
     in the following table during the month, not fewer than 20 
     hours per week of which are attributable to a work activity:

                                                            The minimum
         ``If the month is                            average number of
           in fiscal year:                           hours per week is:
           1996....................................................20  
           1997....................................................20  
           1998....................................................20  
           1999................................................25  

           2000....................................................30  
           2001....................................................30  
           2002....................................................35  
           2003 or thereafter.....................................35.  

       ``(2) 2-parent families.--For purposes of subsection 
     (b)(2)(A), an adult is engaged in work for a month in a 
     fiscal year if the adult is participating in work for at 
     least 35 hours per week during the month, not fewer than 30 
     hours per week of which are attributable to work activities 
     described in paragraph (3).
       ``(3) Definition of work activities.--For purposes of this 
     subsection, the term `work activities' means--
       ``(A) unsubsidized employment;
       ``(B) subsidized employment;
       ``(C) on-the-job training;
       ``(D) community service programs; and
       ``(E) job search (only for the first 4 weeks in which an 
     individual is required to participate in work activities 
     under this section).
       ``(d) Penalties Against Individuals.--If an adult in a 
     family receiving assistance 

[[Page S 12981]]
     under the State program funded under this part refuses to engage in 
     work required under subsection (c)(1) or (c)(2), a State to 
     which a grant is made under section 403 shall--
       ``(1) reduce the amount of assistance that would otherwise 
     be payable to the family; or
       ``(2) terminate such assistance,

     subject to such good cause and other exceptions as the State 
     may establish.
       ``(e) Nondisplacement in Work Activities.--
       ``(1) In general.--Subject to paragraph (2), an adult in a 
     family receiving assistance under this part may fill a vacant 
     employment position in order to engage in a work activity 
     described in subsection (c)(3).
       ``(2) No filling of certain vacancies.--No adult described 
     in paragraph (1) shall be employed, or job opening filled, by 
     such an adult--
       ``(A) when any other individual is on layoff from the same 
     or any substantially equivalent job; or
       ``(B) when the employer has terminated the employment of 
     any regular employee or otherwise reduced its workforce with 
     the intention of filling the vacancy so created by hiring an 
     adult described in paragraph (1).
       ``(f) Sense of the Congress.--It is the sense of the 
     Congress that in complying with this section, each State that 
     operates a program funded under this part is encouraged to 
     assign the highest priority to requiring adults in 2-parent 
     families and adults in single-parent families that include 
     older preschool or school-age children to be engaged in work 
     activities.
       ``(g) Delivery Through Statewide System.--
       ``(1) In general.--Each work program carried out by the 
     State to provide work activities in order to comply with this 
     section shall be delivered through the statewide workforce 
     development system established in section 711 of the Work 
     Opportunity Act of 1995 unless a required work activity is 
     not available locally through the statewide workforce 
     development system.
       ``(2) Effective date.--The provisions of paragraph (1) 
     shall take effect--
       ``(A) in a State described in section 815(b)(1) of the Work 
     Opportunity Act of 1995; and
       ``(B) in any other State, on July 1, 1998.

     ``SEC. 405. REQUIREMENTS AND LIMITATIONS.

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

     ``SEC. 406. PROMOTING RESPONSIBLE PARENTING.

       ``(a) Findings.--The Congress makes the following findings:
       ``(1) Marriage is the foundation of a successful society.
       ``(2) Marriage is an essential institution of a successful 
     society which promotes the interests of children.
       ``(3) Promotion of responsible fatherhood and motherhood is 
     integral to successful child rearing and the wellbeing of 
     children.
       ``(4) In 1992, only 54 percent of single-parent families 
     with children had a child support order established and, of 
     that 54 percent, only about one half received the full amount 
     due. Of the cases enforced through the public child support 
     enforcement system, only 18 percent of the caseload has a 
     collection.
       ``(5) The number of individuals receiving aid to families 
     with dependent children (hereafter in this subsection 
     referred to as `AFDC') has more than tripled since 1965. More 
     than two-thirds of these recipients are children. Eighty-nine 
     percent of children receiving AFDC benefits now live in homes 
     in which no father is present.
       ``(A)(i) The average monthly number of children receiving 
     AFDC benefits--
       ``(I) was 3,300,000 in 1965;
       ``(II) was 6,200,000 in 1970;
       ``(III) was 7,400,000 in 1980; and
       ``(IV) was 9,300,000 in 1992.
       ``(ii) While the number of children receiving AFDC benefits 
     increased nearly threefold between 1965 and 1992, the total 
     number of children in the United States aged 0 to 18 has 
     declined by 5.5 percent.
       ``(B) The Department of Health and Human Services has 
     estimated that 12,000,000 children will receive AFDC benefits 
     within 10 years.
       ``(C) The increase in the number of children receiving 
     public assistance is closely related to the increase in 
     births to unmarried women. Between 1970 and 1991, the 
     percentage of live births to unmarried women increased nearly 
     threefold, from 10.7 percent to 29.5 percent.
       ``(6) The increase of out-of-wedlock pregnancies and births 
     is well documented as follows:
       ``(A) It is estimated that the rate of nonmarital teen 
     pregnancy rose 23 percent from 54 pregnancies per 1,000 
     unmarried teenagers in 1976 to 66.7 pregnancies in 1991. The 
     overall rate of nonmarital pregnancy rose 14 percent from 
     90.8 pregnancies per 1,000 unmarried women in 1980 to 103 in 
     both 1991 and 1992. In contrast, the overall pregnancy rate 
     for married couples decreased 7.3 percent between 1980 and 
     1991, from 126.9 pregnancies per 1,000 married women in 1980 
     to 117.6 pregnancies in 1991.
       ``(B) The total of all out-of-wedlock births between 1970 
     and 1991 has risen from 10.7 percent to 29.5 percent and if 
     the current trend continues, 50 percent of all births by the 
     year 2015 will be out-of-wedlock.
       ``(7) The negative consequences of an out-of-wedlock birth 
     on the mother, the child, the family, and society are well 
     documented as follows:
       ``(A) Young women 17 and under who give birth outside of 
     marriage are more likely to go on public assistance and to 
     spend more years on welfare once enrolled. These combined 
     effects of `younger and longer' increase total AFDC costs per 
     household by 25 percent to 30 percent for 17-year olds.
       ``(B) Children born out-of-wedlock have a substantially 
     higher risk of being born at a very low or moderately low 
     birth weight.
       ``(C) Children born out-of-wedlock are more likely to 
     experience low verbal cognitive attainment, as well as more 
     child abuse, and neglect.
       ``(D) Children born out-of-wedlock were more likely to have 
     lower cognitive scores, lower educational aspirations, and a 
     greater likelihood of becoming teenage parents themselves.
       ``(E) Being born out-of-wedlock significantly reduces the 
     chances of the child growing up to have an intact marriage.
       ``(F) Children born out-of-wedlock are 3 more times likely 
     to be on welfare when they grow up.
       ``(8) Currently 35 percent of children in single-parent 
     homes were born out-of-wedlock, nearly the same percentage as 
     that of children in single-parent homes whose parents are 
     divorced (37 percent). While many parents find themselves, 
     through divorce or tragic circumstances beyond their control, 
     facing the difficult task of raising children alone, 
     nevertheless, the negative consequences of raising children 
     in single-parent homes are well documented as follows:

[[Page S 12982]]

       ``(A) Only 9 percent of married-couple families with 
     children under 18 years of age have income below the national 
     poverty level. In contrast, 46 percent of female-headed 
     households with children under 18 years of age are below the 
     national poverty level.
       ``(B) Among single-parent families, nearly \1/2\ of the 
     mothers who never married received AFDC while only \1/5\ of 
     divorced mothers received AFDC.
       ``(C) Children born into families receiving welfare 
     assistance are 3 times more likely to be on welfare when they 
     reach adulthood than children not born into families 
     receiving welfare.
       ``(D) Mothers under 20 years of age are at the greatest 
     risk of bearing low birth-weight babies.
       ``(E) The younger the single parent mother, the less likely 
     she is to finish high school.
       ``(F) Young women who have children before finishing high 
     school are more likely to receive welfare assistance for a 
     longer period of time.
       ``(G) Between 1985 and 1990, the public cost of births to 
     teenage mothers under the aid to families with dependent 
     children program, the food stamp program, and the medicaid 
     program has been estimated at $120,000,000,000.
       ``(H) The absence of a father in the life of a child has a 
     negative effect on school performance and peer adjustment.
       ``(I) Children of teenage single parents have lower 
     cognitive scores, lower educational aspirations, and a 
     greater likelihood of becoming teenage parents themselves.
       ``(J) Children of single-parent homes are 3 times more 
     likely to fail and repeat a year in grade school than are 
     children from intact two-parent families.
       ``(K) Children from single-parent homes are almost 4 times 
     more likely to be expelled or suspended from school.
       ``(L) Neighborhoods with larger percentages of youth aged 
     12 through 20 and areas with higher percentages of single-
     parent households have higher rates of violent crime.
       ``(M) Of those youth held for criminal offenses within the 
     State juvenile justice system, only 29.8 percent lived 
     primarily in a home with both parents. In contrast to these 
     incarcerated youth, 73.9 percent of the 62,800,000 children 
     in the Nation's resident population were living with both 
     parents.
       ``(9) Therefore, in light of this demonstration of the 
     crisis in our Nation, it is the sense of the Congress that 
     prevention of out-of-wedlock pregnancy and reduction in out-
     of-wedlock birth are very important Government interests and 
     the policy contained in provisions of this title is intended 
     to address the crisis.
       ``(b) State Option To Deny Assistance For Out-of-Wedlock 
     Births to Minors.--At the option of the State, a State to 
     which a grant is made under section 403 may provide that the 
     grant shall not be used to provide assistance for a child 
     born out-of-wedlock to an individual who has not attained 18 
     years of age, or for the individual, until the individual 
     attains such age.
       ``(c) State Option To Deny Assistance for Children Born to 
     Families Receiving Assistance.--At the option of the State, a 
     State to which a grant is made under section 403 may provide 
     that the grant shall not be used to provide assistance for a 
     minor child who is born to--
       ``(1) a recipient of assistance under the program funded 
     under this part; or
       ``(2) an individual who received such benefits at any time 
     during the 10-month period ending with the birth of the 
     child.
       ``(d) Requirement That Teenage Parents Live In an Adult-
     Supervised Setting and Attend School.--
       ``(1) In general.--A State to which a grant is made under 
     section 403 shall not use any part of the grant to provide 
     assistance to an individual described in paragraph (2) if--
       ``(A) the individual and the minor child of the individual 
     do not reside in--
       ``(i) 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; or
       ``(ii) another adult-supervised setting; and
       ``(B) the individual does not participate in--
       ``(i) educational activities directed toward the attainment 
     of a high school diploma or its equivalent; or
       ``(ii) an alternative educational or training program that 
     has been approved by the State.
       ``(2) Individual described.--An individual described in 
     this paragraph is an individual who--
       ``(A) is under the age of 18 and is not married; and
       ``(B) has a minor child in his or her care.

     ``SEC. 407. STATE PENALTIES.

       ``(a) In General.--Subject to the provisions of subsection 
     (b), the Secretary shall deduct from the grant otherwise 
     payable under section 403 the following penalties:
       ``(1) For use of grant in violation of this part.--If an 
     audit conducted under section 408 finds that an amount paid 
     to a State under section 403 for a fiscal year has been used 
     in violation of this part, then the Secretary shall reduce 
     the amount of the grant otherwise payable to the State under 
     such section for the immediately succeeding fiscal year 
     quarter by the amount so used, plus 5 percent of such grant 
     (determined without regard to this section).
       ``(2) For failure to submit required report.--
       ``(A) In general.--If the Secretary determines that a State 
     has not, within 6 months after the end of a fiscal year, 
     submitted the report required by section 409 for the fiscal 
     year, the Secretary shall reduce by 5 percent the amount of 
     the grant that would (in the absence of this section) be 
     payable to the State under section 403 for the immediately 
     succeeding fiscal year.
       ``(B) Rescission of penalty.--The Secretary shall rescind a 
     penalty imposed on a State under subparagraph (A) with 
     respect to a report for a fiscal year if the State submits 
     the report before the end of the immediately succeeding 
     fiscal year.
       ``(3) For failure to satisfy minimum participation rates.--
       ``(A) In general.--If the Secretary determines that a State 
     has failed to satisfy the minimum participation rates 
     specified in section 404(a) for a fiscal year, the Secretary 
     shall reduce by not more than 5 percent the amount of the 
     grant that would (in the absence of this section) be payable 
     to the State under section 403 for the immediately succeeding 
     fiscal year.
       ``(B) Penalty based on severity of failure.--The Secretary 
     shall impose reductions under subparagraph (A) on the basis 
     of the degree of noncompliance.
       ``(4) For failure to participate in the income and 
     eligibility verification system.--If the Secretary determines 
     that a State program funded under this part is not 
     participating during a fiscal year in the income and 
     eligibility verification system required by section 1137, the 
     Secretary shall reduce by not more than 5 percent the amount 
     of the grant that would (in the absence of this section) be 
     payable to the State under section 403 for the immediately 
     succeeding fiscal year.
       ``(5) For failure to comply with paternity establishment 
     and child support enforcement requirements under part d.--
     Notwithstanding any other provision of this Act, if the 
     Secretary determines that the State agency that administers a 
     program funded under this part does not enforce the penalties 
     requested by the agency administering part D against 
     recipients of assistance under the State program who fail to 
     cooperate in establishing paternity in accordance with such 
     part, the Secretary shall reduce by not more than 5 percent 
     the amount of the grant that would (in the absence of this 
     section) be payable to the State under section 403 for the 
     immediately succeeding fiscal year.
       ``(6) For failure to timely repay a federal loan fund for 
     state welfare programs.--If the Secretary determines that a 
     State has failed to repay any amount borrowed from the 
     Federal Loan Fund for State Welfare Programs established 
     under section 403(d) within the period of maturity applicable 
     to such loan, plus any interest owed on such loan, then the 
     Secretary shall reduce the amount of the grant otherwise 
     payable to the State under section 403 for the immediately 
     succeeding fiscal year quarter by the outstanding loan 
     amount, plus the interest owed on such outstanding amount.
       ``(b) Requirements.--
       ``(1) Limitation on amount of penalty.--
       ``(A) In general.--In imposing the penalties described in 
     subsection (a), the Secretary shall not reduce any quarterly 
     payment to a State by more than 25 percent.
       ``(B) Carryforward of unrecovered penalties.--To the extent 
     that subparagraph (A) prevents the Secretary from recovering 
     during a fiscal year the full amount of all penalties imposed 
     on a State under subsection (a) for a prior fiscal year, the 
     Secretary shall apply any remaining amount of such penalties 
     to the grant otherwise payable to the State under section 403 
     for the immediately succeeding fiscal year.
       ``(2) State funds to replace reductions in grant.--A State 
     which has a penalty imposed against it under subsection (a) 
     shall expend additional State funds in an amount equal to the 
     amount of the penalty for the purpose of providing assistance 
     under the State program under this part.
       ``(3) Reasonable cause for noncompliance.--The Secretary 
     may not impose a penalty on a State under subsection (a) if 
     the Secretary determines that the State has reasonable cause 
     for failing to comply with a requirement for which a penalty 
     is imposed under such subsection.
       ``(c) Certification of Amount of Penalties.--If the 
     Secretary is required to reduce the amount of any grant under 
     this section, the Secretary shall certify the amount of such 
     reduction to the Secretary of the Treasury and the Secretary 
     of the Treasury shall reduce the amount paid to the State 
     under section 403 by such amount.
       ``(d) Effective Dates.--
       ``(1) In general.--The penalties described in paragraphs 
     (2) through (6) of subsection (a) shall apply with respect to 
     fiscal years beginning on or after October 1, 1996.
       ``(2) Misuse of funds.--The penalties described in 
     subsection (a)(1) shall apply with respect to fiscal years 
     beginning on or after October 1, 1995.

     ``SEC. 408. AUDITS.

       ``(a) In General.--Each State shall, not less than 
     annually, audit the State expenditures from amounts received 
     under this part. Such audit shall--
       ``(1) determine the extent to which such expenditures were 
     or were not expended in accordance with this part; and 

[[Page S 12983]]

       ``(2) be conducted by an approved entity (as defined in 
     subsection (b)) in accordance with generally accepted 
     auditing principles.
       ``(b) Approved Entity.--For purposes of subsection (a), the 
     term `approved entity' means an entity that--
       ``(1) is approved by the Secretary of the Treasury;
       ``(2) is approved by the chief executive officer of the 
     State; and
       ``(3) is independent of any agency administering activities 
     funded under this part.
       ``(c) Audit Report.--Not later than 30 days following the 
     completion of an audit under this subsection, a State shall 
     submit a copy of the audit to the State legislature, the 
     Secretary of the Treasury, and the Secretary of Health and 
     Human Services.
       ``(d) Additional Accounting Requirements.--The provisions 
     of chapter 75 of title 31, United States Code, shall apply to 
     the audit requirements of this section.

     ``SEC. 409. DATA COLLECTION AND REPORTING.

       ``(a) In General.--Each State to which a grant is made 
     under section 403 for a fiscal year shall, not later than 6 
     months after the end of fiscal year 1997, and each fiscal 
     year thereafter, transmit to the Secretary the following 
     aggregate information on families to which assistance was 
     provided during the fiscal year under the State program 
     operated under this part:
       ``(1) The number of adults receiving such assistance.
       ``(2) The number of children receiving such assistance and 
     the average age of the children.
       ``(3) The employment status of such adults, and the average 
     earnings of employed adults receiving such assistance.
       ``(4) The age, race, and educational attainment at the time 
     of application for assistance of the adults receiving such 
     assistance.
       ``(5) The average amount of cash and other assistance 
     provided to the families under the program.
       ``(6) The number of months, since the most recent 
     application for assistance under the program, for which such 
     assistance has been provided to the families.
       ``(7) The total number of months for which assistance has 
     been provided to the families under the program.
       ``(8) Any other data necessary to indicate whether the 
     State is in compliance with the plan most recently submitted 
     by the State pursuant to section 402.
       ``(9) The components of any program carried out by the 
     State to provide work activities in order to comply with 
     section 404, and the average monthly number of adults in each 
     such component.
       ``(10) The number of part-time job placements and the 
     number of full-time job placements made through the program 
     referred to in paragraph (9), the number of cases with 
     reduced assistance, and the number of cases closed due to 
     employment.
       ``(11) The number of cases closed due to section 405(b).
       ``(12) The increase or decrease in the number of children 
     born out of wedlock to recipients of assistance under the 
     State program funded under this part and the State's success 
     in meeting its goals established under section 402(a)(1)(F).
       ``(13) With respect to a State child care grant under 
     section 403(a)(5), information concerning--
       ``(A) the number of eligible parents and children receiving 
     assistance under such grant;
       ``(B) the number of individuals described in section 
     402(a)(19)(C)(iii)(II) of the Social Security Act (as such 
     section was in effect on September 30, 1995) not 
     participating in work activities due to the unavailability of 
     child care; and
       ``(C) other data described in paragraphs (1) through (12) 
     relevant to the State child care grant.
       ``(b) Authority of States To Use Estimates.--A State may 
     comply with the requirement to provide precise numerical 
     information described in subsection (a) by submitting an 
     estimate which is obtained through the use of scientifically 
     acceptable sampling methods.
       ``(c) Report on Use of Federal Funds To Cover 
     Administrative Costs and Overhead.--The report required by 
     subsection (a) for a fiscal year shall include a statement 
     of--
       ``(1) the total amount and percentage of the Federal funds 
     paid to the State under this part for the fiscal year that 
     are used to cover administrative costs or overhead; and
       ``(2) the total amount of State funds that are used to 
     cover such costs or overhead.
       ``(d) Report on State Expenditures on Programs for Needy 
     Families.--The report required by subsection (a) for a fiscal 
     year shall include a statement of the total amount expended 
     by the State during the fiscal year on the program under this 
     part and the purposes for which such amount was spent.
       ``(e) Report on Noncustodial Parents Participating in Work 
     Activities.--The report required by subsection (a) for a 
     fiscal year shall include the number of noncustodial parents 
     in the State who participated in work activities during the 
     fiscal year.
       ``(f) Report on Child Support Collected.--The report 
     required by subsection (a) for a fiscal year shall include 
     the total amount of child support collected by the State 
     agency administering the State program under part D on behalf 
     of a family receiving assistance under this part.
       ``(g) Report on Child Care.--The report required by 
     subsection (a) for a fiscal year shall include the total 
     amount expended by the State for child care under the program 
     under this part, along with a description of the types of 
     child care provided, including child care provided in the 
     case of a family that--
       ``(1) has ceased to receive assistance under this part 
     because of employment; or
       ``(2) is not receiving assistance under this part but would 
     be at risk of becoming eligible for such assistance if child 
     care was not provided.
       ``(h) Report on Transitional Services.--The report required 
     by subsection (a) for a fiscal year shall include the total 
     amount expended by the State for providing transitional 
     services to a family that has ceased to receive assistance 
     under this part because of employment, along with a 
     description of such services.
       ``(i) Secretary's Report on Data Processing.--
       ``(1) In general.--Not later than 6 months after the date 
     of the enactment of the Work Opportunity Act of 1995, the 
     Secretary shall prepare and submit to the Congress a report 
     on--
       ``(A) the status of the automated data processing systems 
     operated by the States to assist management in the 
     administration of State programs under this part (whether in 
     effect before or after October 1, 1995); and
       ``(B) what would be required to establish a system capable 
     of--
       ``(i) tracking participants in public programs over time; 
     and
       ``(ii) checking case records of the States to determine 
     whether individuals are participating in public programs in 2 
     or more States.
       ``(2) Preferred contents.--The report required by paragraph 
     (1) should include--
       ``(A) a plan for building on the automated data processing 
     systems of the States to establish a system with the 
     capabilities described in paragraph (1)(B); and
       ``(B) an estimate of the amount of time required to 
     establish such a system and of the cost of establishing such 
     a system.

     ``SEC. 410. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

       ``(a) Research.--The Secretary may conduct research on the 
     effects and costs of State programs funded under this part.
       ``(b) Development and Evaluation of Innovative Approaches 
     To Employing Welfare Recipients.--The Secretary may assist 
     States in developing, and shall evaluate, innovative 
     approaches to employing recipients of assistance under 
     programs funded under this part. In performing such 
     evaluations, the Secretary shall, to the maximum extent 
     feasible, use random assignment to experimental and control 
     groups.
       ``(c) Studies of Welfare Caseloads.--The Secretary may 
     conduct studies of the caseloads of States operating programs 
     funded under this part.
       ``(d) Dissemination of Information.--The Secretary shall 
     develop innovative methods of disseminating information on 
     any research, evaluations, and studies conducted under this 
     section, including the facilitation of the sharing of 
     information and best practices among States and localities 
     through the use of computers and other technologies.
       ``(e) Annual Ranking of States and Review of Most and Least 
     Successful Work Programs.--
       ``(1) Annual ranking of states.--The Secretary shall rank 
     annually the States to which grants are paid under section 
     403 in the order of their success in moving recipients of 
     assistance under the State program funded under this part 
     into long-term private sector jobs.
       ``(2) Annual review of most and least successful work 
     programs.--The Secretary shall review the programs of the 3 
     States most recently ranked highest under paragraph (1) and 
     the 3 States most recently ranked lowest under paragraph (1) 
     that provide parents with work experience, assistance in 
     finding employment, and other work preparation activities and 
     support services to enable the families of such parents to 
     leave the program and become self-sufficient.
       ``(f) Study on Alternative Outcomes Measures.--
       ``(1) Study.--The Secretary shall, in cooperation with the 
     States, study and analyze outcomes measures for evaluating 
     the success of a State in moving individuals out of the 
     welfare system through employment as an alternative to the 
     minimum participation rates described in section 404. The 
     study shall include a determination as to whether such 
     alternative outcomes measures should be applied on a national 
     or a State-by-State basis.
       ``(2) Report.--Not later than September 30, 1998, the 
     Secretary shall submit to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives a report containing the findings of the study 
     described in paragraph (1).
     ``SEC. 411. 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 Opportunity Act of 1995 on a random national sample 
     of recipients of assistance under State programs funded under 
     this part and (as appropriate) other low-income families, and 
     in doing so, shall pay particular attention to the issues of 
     out-of-wedlock births, 

[[Page S 12984]]
     welfare dependency, the beginning and end of welfare spells, and the 
     causes of repeat welfare spells.
       ``(b) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, the Secretary 
     of the Treasury shall pay to the Bureau of the Census 
     $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 
     and 2000 to carry out subsection (a).

     ``SEC. 412. WAIVERS.

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

     ``SEC. 413. STATE DEMONSTRATION PROGRAMS.

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

     ``SEC. 414. DIRECT FUNDING AND ADMINISTRATION BY INDIAN 
                   TRIBES.

       ``(a) Purpose.--The purpose of this section is--
       ``(1) to strengthen and enhance the control and flexibility 
     of local governments over local programs; and
       ``(2) in recognition of the principles contained in the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450 et seq.)--
       ``(A) to provide direct Federal funding to Indian tribes 
     for the tribal administration of the program funded under 
     this part; or
       ``(B) to enable Indian tribes to enter into agreements, 
     contracts, or compacts with intertribal consortia, States, or 
     other entities for the administration of such program on 
     behalf of the Indian tribe.
       ``(b) Grant Amounts for Indian Tribes.--
       ``(1) In general.--For each of fiscal years 1996, 1997, 
     1998, 1999, and 2000, the Secretary shall pay to each Indian 
     tribe that has an approved tribal family assistance plan a 
     tribal family assistance grant for the fiscal year in an 
     amount equal to the amount determined under paragraph (2).
       ``(2) Amount determined.--
       ``(A) In general.--The amount determined under this 
     paragraph is an amount equal to the total amount of the 
     Federal payments to a State or States under section 403 for 
     fiscal year 1994 (as in effect during such fiscal year) 
     attributable to expenditures by the State or States under 
     part A and part F of this title (as so in effect) in such 
     year for Indian families residing in the service area or 
     areas identified by the Indian tribe in subsection (c)(1)(C).
       ``(B) Use of State submitted data.--
       ``(i) In general.--The Secretary shall use State submitted 
     data to make each determination under subparagraph (A).
       ``(ii) Disagreement with determination.--If an Indian tribe 
     or tribal organization disagrees with State submitted data 
     described under clause (i), the Indian tribe or tribal 
     organization may submit to the Secretary such additional 
     information as may be relevant to making the determination 
     under subparagraph (A) and the Secretary may consider such 
     information before making such determination.
       ``(c) 3-Year Tribal Family Assistance Plan.--
       ``(1) In general.--Any Indian tribe that desires to receive 
     a tribal family assistance grant shall submit to the 
     Secretary a 3-year tribal family assistance plan that--
       ``(A) outlines the Indian tribe's approach to providing 
     welfare-related services for the 3-year period, consistent 
     with the purposes of this section;
       ``(B) specifies whether the welfare-related services 
     provided under the plan will be provided by the Indian tribe 
     or through agreements, contracts, or compacts with 
     intertribal consortia, States, or other entities;
       ``(C) identifies the population and service area or areas 
     to be served by such plan;
       ``(D) provides that a family receiving assistance under the 
     plan may not receive duplicative assistance from other State 
     or tribal programs funded under this part;
       ``(E) identifies the employment opportunities in or near 
     the service area or areas of the Indian tribe and the manner 
     in which the Indian tribe will cooperate and participate in 
     enhancing such opportunities for recipients of assistance 
     under the plan consistent with any applicable State 
     standards; and
       ``(F) applies the fiscal accountability provisions of 
     section 5(f)(1) of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to 
     the submission of a single-agency audit report required by 
     chapter 75 of title 31, United States Code.
       ``(2) Approval.--The Secretary shall approve each tribal 
     family assistance plan submitted in accordance with paragraph 
     (1).
       ``(3) Consortium of tribes.--Nothing in this section shall 
     preclude the development and submission of a single plan by 
     the participating Indian tribes of an intertribal consortium.
       ``(d) Minimum Work Participation Requirements and Time 
     Limits.--The Secretary, with the participation of Indian 
     tribes, shall establish for each Indian tribe receiving a 
     grant under this section minimum work participation 
     requirements, appropriate time limits for receipt of welfare-
     related services under such grant, and penalties against 
     individuals--
       ``(1) consistent with the purposes of this section;
       ``(2) consistent with the economic conditions and resources 
     available to each tribe; and
       ``(3) similar to comparable provisions in section 404(d).
       ``(e) Emergency Assistance.--Nothing in this section shall 
     preclude an Indian tribe from seeking emergency assistance 
     from any Federal loan program or emergency fund.
       ``(f) Accountability.--Nothing in this section shall be 
     construed to limit the ability of the Secretary to maintain 
     program funding accountability consistent with--
       ``(1) generally accepted accounting principles; and
       ``(2) the requirements of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.).
       ``(g) Tribal Penalties.--For the purpose of ensuring the 
     proper use of tribal family assistance grants, the following 
     provisions shall apply to an Indian tribe with an approved 
     tribal assistance plan:
       ``(1) The provisions of subsections (a)(1), (a)(6), and (b) 
     of section 407, in the same manner as such subsections apply 
     to a State.
       ``(2) The provisions of section 407(a)(3), except that such 
     subsection shall be applied by substituting `the minimum 
     requirements established under subsection (d) of section 414' 
     for `the minimum participation rates specified in section 
     404'.
       ``(h) Data Collection and Reporting.--For the purpose of 
     ensuring uniformity in data collection, section 409 shall 
     apply to an Indian tribe with an approved tribal family 
     assistance plan.''.
     ``SEC. 415. ADMINISTRATION.

       ``(a) Assistant Secretary.--The programs under this part 
     and part D of this title shall be administered by an 
     Assistant Secretary for Family Support within the Department 
     of Health and Human Services, who shall be appointed by the 
     President, by and with the advice and consent of the Senate, 
     and who shall be in addition to any other Assistant Secretary 
     of Health and Human Services provided for by law.
       ``(b) State Child Care Grant.--A State may administer the 
     programs under the State child care grant under section 
     403(a)(5) in conjunction with the programs administered under 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9801 et seq.).
       ``(c) Transfer of Funds.--
       ``(1) Authority.--Of the aggregate amount of payments 
     received by a State under this part in each fiscal year, the 
     State may transfer not more than 30 percent of the amounts 
     received under any such program under this part for use by 
     the State to carry out State programs under this title, 
     except that such funds may only be transferred if the program 
     out of which such funds will be transferred continues to 
     provide services at a level that is adequate under the 
     requirements applicable under such program.
       ``(2) Requirements.--Funds transferred under paragraph (1) 
     to carry out a State program operated under this part shall 
     be subject to the same requirements that apply to Federal 
     funds provided directly under the program into which such 
     funds are transferred.''.
                                 ______


                    DEWINE AMENDMENTS NOS. 2517-2519

  Mr. HATCH (for Mr. DeWine) proposed three amendments to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

[[Page S 12985]]


                           Amendment No. 2517

       On page 712, between lines 9 and 10, insert the following:

     SEC. ____. QUARTERLY REPORTS WITH RESPECT TO COMMON TRUST 
                   FUNDS.

       (a) In General.--Section 6032 of the Internal Revenue Code 
     of 1986 (relating to returns of banks with respect to common 
     trust funds) is amended by striking ``each taxable year'' and 
     inserting ``each quarter of the taxable year''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                                                    ____


                           Amendment No. 2518

       On page 31, line 15, insert ``and'' after the semicolon.
       On page 31, line 23, strike ``and'' and insert ``divided 
     by''.
       Beginning on page 31, line 24, strike all through page 32, 
     line 10.
       Beginning on page 33, line 10, strike all through page 34, 
     line 5, and insert the following:
       ``(3) Pro Rata Reduction of Participation Rate Due to 
     Caseload Reductions Not Required By Federal Law.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations for reducing the minimum participation rate 
     otherwise required by this section for a fiscal year by the 
     number of percentage points equal to the number of percentage 
     points (if any) by which--
       ``(i) the number of families receiving assistance during 
     the fiscal year under the State program funded under this 
     part is less than
       ``(ii) the number of families that received aid under the 
     State plan approved under part A of this title (as in effect 
     before October 1, 1995) during the fiscal year immediately 
     preceding such effective date.
       The minimum participation rate shall not be reduced to the 
     extent that the Secretary determines that the reduction in 
     the number of families receiving such assistance is required 
     by Federal law.
       ``(B) Eligibility changes not counted.--The regulations 
     described in subparagraph (A) shall not take into account 
     families that are diverted from a State program funded under 
     this part as a result of differences in eligibility criteria 
     under a State program funded under this part and eligibility 
     criteria under such State's plan under the aid to families 
     with dependent children program, as such plan was in effect 
     on the day before the date of the enactment of the Work 
     Opportunity Act of 1995.
                                                                    ____


                           Amendment No. 2519

       On page 29, between lines 17 and 18, insert the following:
       ``(g) Rainy Day Contingency Fund.--
       ``(1) Establishment.--There is hereby established in the 
     Treasury of the United States a fund which shall be known as 
     the `Rainy Day Contingency Fund' (hereafter in this section 
     referred to as the `Rainy Day Fund').
       ``(2) Deposits into fund.--Out of any money in the Treasury 
     of the United States not otherwise appropriated, there are 
     hereby appropriated for fiscal
      years 1996, 1997, 1998, 1999, and 2000 such sums as are 
     necessary for payment to the Rainy Day Fund in a total 
     amount not to exceed $525,000,000.
       ``(3) Computation of grant.--
       ``(A) In general.--The Secretary of the Treasury shall pay 
     to each State for each quarter in a fiscal year following the 
     quarter in which such State becomes an eligible State under 
     this subsection, an amount equal to the Federal medical 
     assistance percentage for such State for such fiscal year (as 
     defined in section 1905(b)) of so much of the expenditures by 
     the State in such year under the State program funded under 
     this part as exceed the historic State expenditures for such 
     State.
       ``(B) Method of computation, payment, and reconciliation.--
       ``(i) Method of computation.--The method of computing and 
     paying such amounts shall be as follows:

       ``(I) The Secretary of Health and Human Services shall 
     estimate the amount to be paid to the State for such quarter 
     under the provisions of subparagraph (A), such estimate to be 
     based on a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter and such 
     other information as the Secretary may find necessary.
       ``(II) 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.

       ``(ii) 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.
       ``(iii) Method of reconciliation.--If at the end of each 
     fiscal year, the Secretary of Health and Human Services finds 
     that a State which received amounts from the Rainy Day Fund 
     in such fiscal year did not meet the maintenance of effort 
     requirement under paragraph (5)(B) for such fiscal year, the 
     Secretary shall reduce the State family assistance grant for 
     such State for the succeeding fiscal year by such amounts.
       ``(4) Use of grant.--
       ``(A) In general.--An eligible State may use the grant--
       ``(i) in any manner that is reasonably calculated to 
     accomplish the purpose of this part; or
       ``(ii) in any manner that such State used amounts received 
     under part A or F of this title, as such parts were in effect 
     before October 1, 1995.
       ``(B) Refund of unused portion.--Any amount of a grant 
     under this subsection not used during the fiscal year shall 
     be returned to the Rainy Day Fund.
       ``(5) Eligible state.--
       ``(A) In general.--For purposes of this subsection, a State 
     is an eligible State with respect to any quarter in a fiscal 
     year, if such State--
       ``(i) has an average total unemployment rate for such 
     quarter which exceeds
      by at least 2 percentage points such average total rate for 
     the same quarter of either the preceding or second 
     preceding fiscal year; and
       ``(ii) has met the maintenance of effort requirement under 
     subparagraph (B) for the State program funded under this part 
     for the preceding fiscal year.
       ``(B) Maintenance of effort.--
       ``(i) In general.--The maintenance of effort requirement 
     for any State under this subparagraph for any fiscal year is 
     the expenditure of an amount at least equal to 100 percent of 
     the level of historic State expenditures for such State.
       ``(ii) Historic state expenditures.--For purposes of this 
     subparagraph, the term `historic State expenditures' means 
     payments of cash assistance to recipients of aid to families 
     with dependent children under the State plan under part A of 
     title IV for fiscal year 1994, as in effect during such 
     fiscal year.
       ``(iii) Determining state expenditures.--For purposes of 
     this subparagraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
                                 ______


                        BURNS AMENDMENT NO. 2520

  Mr. HATCH (for Mr. Burns) proposed an amendment to amendment No. 2280 
proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Amend section 105 (a) to read:
       (a) In General.--The Secretary of Health and Human Services 
     shall take such actions as may be necessary, including 
     reduction in force actions, consistent with sections 3502 and 
     3595 of title 5, United States Code, to ensure that at least 
     50 percent of the personnel in positions that relate to a 
     covered activity are separated from service. Where possible, 
     reductions should come from headquarters before reductions 
     are made in the field. In the case of a program that is 
     repealed, 100% of the positions shall be eliminated.
       Elimination of positions may begin upon passage of this Act 
     but shall be completed no later than six (6) months following 
     the date of implementation.
                                 ______


                       SIMPSON AMENDMENT NO. 2521

  Mr. HATCH (for Mr. Simpson) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 287, strike lines 13-17 and insert the following:
       ``(a) In General.--(1) Subject to paragraph (2) and 
     subsection (b), a State may, at its option, limit or restrict 
     the eligibility of noncitizens of the United States for any 
     means-tested public assistance program, whether funded by the 
     Federal Government or by the State.
       ``(2)(A) The authority under subsection (a) may be 
     exercised only to the extent that any prohibitions, 
     limitations, or restrictions are not more restrictive or of a 
     longer duration than comparable Federal programs.
       ``(B) For the purposes of this subsection, attribution to a 
     noncitizen of the income or resources of any person who (as a 
     sponsor of such noncitizen's entry into the United States) 
     executed an affidavit of support or similar agreement with 
     respect to such noncitizen, for purposes of determining the 
     eligibility for or amount of benefits of such noncitizen, 
     shall not be considered more restrictive than a prohibition 
     of eligibility.''
                                 ______


                      KASSEBAUM AMENDMENT NO. 2522

  Mr. HATCH (for Mrs. Kassebaum) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Beginning on page 313, strike line 13 and all that follows 
     through line 5 on page 314, and insert the following new 
     subsection:
       (l) Application of Subchapter.--The Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) 
     is amended by adding at the end thereof the following new 
     section:

     ``SEC. 658T. APPLICATION TO OTHER PROGRAMS.

       ``Notwithstanding any other provision of law, a State that 
     uses funding for child care services under any Federal 
     program shall ensure that activities carried out using such 
     funds meet the requirements, standards, and criteria of this 
     subchapter, except for the quality set-aside provisions of 
     section 658G, and the regulations promulgated under this 
     subchapter. Such sums shall be administered through a uniform 
     State plan. To the maximum extent practicable, amounts 
     provided to a State under such programs shall be transferred 
     to the lead agency and integrated into the program 
     established under this subchapter by the State.''.
                                 ______

                                 
[[Page S 12986]]


                 HELMS (AND OTHERS) AMENDMENT NO. 2523

  Mr. HELMS (for himself, Mr. Faircloth, Mr. Shelby, and Mr. Grams) 
proposed an amendment to amendment No. 2280 proposed by Mr. Dole to the 
bill H.R. 4, supra, as follows:

       Beginning on page 195, strike line 22 and all that follows 
     through page 198, line 14, and insert the following:

     SEC. 319. WORK REQUIREMENT.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 318) is further amended by inserting after 
     subsection (m) the following:
       ``(n) Work Requirement.--
       ``(1) In general.--Subject to paragraph (3), no individual 
     shall be eligible to participate in the food stamp program as 
     a member of any household if the individual did not work at 
     least 40 hours during the preceding 4-week period.
       ``(2) Work program.--For purposes of paragraph (1), an 
     individual may perform community service or work for a State 
     or political subdivision of a State through a program 
     established by the State or political subdivision.
       ``(3) Exemptions.--Paragraph (1) shall not apply to an 
     individual if the individual is--
       ``(A) a parent residing with a dependent child under 18 
     years of age;
       ``(B) a member of a house with responsibility for the care 
     of an incapacitated person;
       ``(C) mentally or physically unfit;
       ``(D) under 18 years of age; or
       ``(E) 55 years of age or older.''.
                                 ______


                 CRAIG (AND SHELBY) AMENDMENT NO. 2524

  Mr. CRAIG (for himself and Mr. Shelby) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       On page 643, line 16, insert ``, subject to such good cause 
     and other exceptions as the State shall establish and taking 
     into account the best interests of the child'' before the end 
     period.
                                 ______


                        EXON AMENDMENT NO. 2525

  Mr. EXON proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       On page 302, between lines 5 and 6, insert the following:

     SEC. 506. PROHIBITION ON PAYMENT OF FEDERAL BENEFITS TO 
                   CERTAIN PERSONS.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsection (b), Federal benefits 
     shall not be paid or provided to any person who is not a 
     person lawfully present within the United States.
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following benefits:
       (1) Emergency medical services under title XIX of the 
     Social Security Act.
       (2) Short-term emergency disaster relief.
       (3) Assistance or benefits under the National School Lunch 
     Act.
       (4) Assistance or benefits under the Child Nutrition Act of 
     1966.
       (5) Public health assistance for immunizations and, if the 
     Secretary of Health and Human Services determines that it is 
     necessary to prevent the spread of a serious communicable 
     disease, for testing and treatment of such disease.
       (c) Definitions.--For purposes of this section:
       (1) Federal benefit.--The term ``Federal benefit'' means--
       (A) the issuance of any grant, contract, loan, professional 
     license, or commercial license provided by an agency of the 
     United States or by appropriated funds of the United States; 
     and
       (B) any retirement, welfare, Social Security, health, 
     disability, veterans benefit, public housing, education, food 
     stamps, unemployment benefit, or any other similar benefit 
     for which
      payments or assistance are provided by an agency of the 
     United States or by appropriated funds of the United 
     States.
       (2) Veterans benefit.--The term ``veterans benefit'' means 
     all benefits provided to veterans, their families, or 
     survivors by virtue of the service of a veteran in the Armed 
     Forces of the United States.
       (3) Person lawfully present within the united states.--The 
     term ``person lawfully present within the United States'' 
     means a person who, at the time the person applies for, 
     receives, or attempts to receive a Federal benefit, is a 
     United States citizen, a permanent resident alien, an alien 
     whose deportation has been withheld under section 243(h) of 
     the Immigration and Nationality Act (8 U.S.C. 1253(h)), an 
     asylee, a refugee, a parolee who has been paroled for a 
     period of at least 1 year, a national, or a national of the 
     United States for purposes of the immigration laws of the 
     United States (as defined in section 101(a)(17) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(17)).
       (d) State Obligation.--Notwithstanding any other provision 
     of law, a State that administers a program that provides a 
     Federal benefit (described in section 506(c)(1)) or provides 
     State benefits pursuant to such a program shall not be 
     required to provide such benefit to a person who is not a 
     person lawfully present within the United States (as defined 
     in section 506(c)(3)) through a State agency or with 
     appropriated funds of such State.
       (e) Verification of Eligibility.
       (1) In general.--Not later than 18 months after the date of 
     the enactment of this Act, the Attorney General of the United 
     States, after consultation with the Secretary of Health and 
     Human Services, shall promulgate regulations requiring 
     verification that a person applying for a Federal benefit, 
     including a benefit described in section 506(b), is a person 
     lawfully present within the United States and is eligible to 
     receive such benefit. Such regulations shall, to the extent 
     feasible, require that information requested and exchanged be 
     similar in form and manner to information requested and 
     exchanged under section 1137 of the Social Security Act.
       (2) State Compliance.--Not later than 24 months after the 
     date the regulations described in subsection (1) are adopted, 
     a State that administers a program that provides a Federal 
     benefit described in such subsection shall have in effect a 
     verification system that complies with the regulations.
       (3) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purpose of this section.
       (f) Severability.--If any provision of this title or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this title 
     and the application of the provisions of such to any person 
     or circumstance shall not be affected thereby.
                                 ______


                 SHELBY (AND OTHERS) AMENDMENT NO. 2526

  Mr. SHELBY (for himself, Mr. Craig, Mr. Hatfield, Mr. Grams, and Mr. 
Santorum) proposed an amendment to amendment No. 2280 proposed by Mr. 
Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place, insert:

     SEC. ____. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. ADOPTION EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this subtitle for the taxable year the amount of the 
     qualified adoption expenses paid or incurred by the taxpayer 
     during such taxable year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The aggregate amount of qualified 
     adoption expenses which may be taken into account under 
     subsection (a) with respect to the adoption of a child shall 
     not exceed $5,000.
       ``(2) Income limitation.--The amount allowable as a credit 
     under subsection (a) for any taxable year shall be reduced 
     (but not below zero) by an amount which bears the same ratio 
     to the amount so allowable (determined without regard to this 
     paragraph but with regard to paragraph (1)) as--
       ``(A) the amount (if any) by which the taxpayer's adjusted 
     gross income exceeds $60,000, bears to
       ``(B) $40,000.
       ``(3) Denial of double benefit.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any expense for which a deduction or 
     credit is allowable under any other provision of this 
     chapter.
       ``(B) Grants.--No credit shall be allowed under subsection 
     (a) for any expense to the extent that funds for such expense 
     are received under any Federal, State, or local program.
       ``(c) Qualified Adoption Expenses.--For purposes of this 
     section, the term `qualified adoption expenses' means 
     reasonable and necessary adoption fees, court costs, attorney 
     fees, and other expenses which are directly related to the 
     legal and finalized adoption of a child by the taxpayer and 
     which are not incurred in violation of State or Federal law 
     or in carrying out any surrogate parenting arrangement. The 
     term `qualified adoption expenses' shall not include any 
     expenses in connection with the adoption by an individual of 
     a child who is the child of such individual's spouse.
       ``(d) Married Couples Must File Joint Returns.--Rules 
     similar to the rules of paragraphs (2), (3), and (4) of 
     section 21(e) shall apply for purposes of this section.''
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 35 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the last item and inserting the 
     following:

``Sec. 35. Adoption expenses.
``Sec. 36. Overpayments of tax.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. ____. EXCLUSION OF ADOPTION ASSISTANCE.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by redesignating 
     section 137 as section 138 and by inserting after section 136 
     the following new section:

[[Page S 12987]]


     ``SEC. 137. ADOPTION ASSISTANCE.

       ``(a) In General.--Gross income of an employee does not 
     include employee adoption assistance benefits, or military 
     adoption assistance benefits, received by the employee with 
     respect to the employee's adoption of a child.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Employee adoption assistance benefits.--The term 
     `employee adoption assistance benefits' means payment by an 
     employer of qualified adoption expenses with respect to an 
     employee's adoption of a child, or reimbursement by the 
     employer of such qualified adoption expenses paid or incurred 
     by the employee in the taxable year.
       ``(2) Employer and employee.--The terms `employer' and 
     `employee' have the respective meanings given such terms by 
     section 127(c).
       ``(3) Military adoption assistance benefits.--The term 
     `military adoption assistance benefits' means benefits 
     provided under section 1052 of title 10, United States Code, 
     or section 514 of title 14, United States Code.
       ``(4) Qualified adoption expenses.--
       ``(A) In general.--The term `qualified adoption expenses' 
     means reasonable and necessary adoption fees, court costs, 
     attorney fees, and other expenses--
       ``(i) which are directly related to, and the principal 
     purpose of which is for, the legal and finalized adoption of 
     an eligible child by the taxpayer, and
       ``(ii) which are not incurred in violation of State or 
     Federal law or in carrying out any surrogate parenting 
     arrangement.
       ``(B) Eligible child.--The term `eligible child' means any 
     individual--
       ``(i) who has not attained age 18 as of the time of the 
     adoption, or
       ``(ii) who is physically or mentally incapable of caring 
     for himself.
       ``(c) Coordination With Other Provisions.--The Secretary 
     shall issue regulations to coordinate the application of this 
     section with the application of any other provision of this 
     title which allows a credit or deduction with respect to 
     qualified adoption expenses.''
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 137 and inserting the 
     following new items:

``Sec. 137. Adoption assistance.
``Sec. 138. Cross references to other Acts.''

       (c) Effective Date.--The amendments made this section shall 
     apply to taxable years beginning after December 31, 1995.

     SEC. ____. WITHDRAWAL FROM IRA FOR ADOPTION EXPENSES.

       (a) In General.--Subsection (d) of section 408 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(8) Qualified adoption expenses.--
       ``(A) In general.--Any amount which is paid or distributed 
     out of an individual retirement plan of the taxpayer, and 
     which would (but for this paragraph) be includible in gross 
     income, shall be excluded from gross income to the extent 
     that--
       ``(i) such amount exceeds the sum of--
       ``(I) the amount excludable under section 137, and
       ``(II) any amount allowable as a credit under this title 
     with respect to qualified adoption expenses; and
       ``(ii) such amount does not exceed the qualified adoption 
     expenses paid or incurred by the taxpayer during the taxable 
     year.
       ``(B) Qualified adoption expenses.--For purposes of this 
     paragraph, the term `qualified adoption expenses' has the 
     meaning given such term by section 137, except that such term 
     shall not include any expense in connection with the adoption 
     by an individual of a child who is the child of such 
     individual's spouse.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
                                 ______


                       SHELBY AMENDMENT NO. 2527

  Mr. SHELBY proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 216, strike lines 4 through 6 and insert the 
     following:
       ``(3) at the option of a State, funds to--
       ``(A) operate an employment and training program for needy 
     individuals under the program; or
       ``(B) operate a work program under section 404 of the 
     Social Security Act;
       ``(4) at the option of a State, funds to provide benefits 
     to individuals with incomes below 185 percent of the poverty 
     line under subsection (d)(3)(B)(v); and
       On page 216, line 7, strike ``(4)'' and insert ``(5)''.
       On page 216, strike lines 13 through 17 and insert the 
     following:
       ``(2) Four-year election.--
       ``(A) Period.--A State may elect to participate in the 
     program established under subsection (a) for a period of not 
     less than 4 years.
       ``(B) Election.--At the end of each 4-year period, a State 
     may elect to participate in the program established under 
     subsection (a) or in the food stamp program in accordance 
     with the other sections of this Act.
       On page 219, strike lines 11 through 13 and insert the 
     following:
       ``(iii) at the option of a State--
       ``(I) to operate an employment and training program for 
     needy individuals under the program; or
       ``(II) to operate a work program under section 404 of the 
     Social Security Act;
       On page 219, line 15, strike the period at the end and 
     insert ``; and''.
       On page 219, between lines 15 and 16, insert the following:
       ``(v) to provide other forms of benefits to individuals 
     with incomes below 185 percent of the poverty line, as 
     defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2)), except that not more than 20 
     percent of the amount allotted to a State under subsection 
     (l)(2) may be used under this clause.
       On page 220, strike line 14 and insert the following:
       ``(E) Notice and hearings.--
       ``(i) In general.--The State
       On page 220, between lines 20 and 21, insert the following:
       ``(ii) Limitation.--Clause (i) shall not impede the ability 
     of the State to promptly and efficiently alter or reduce 
     benefits in response to a failure by a recipient to perform 
     work or other required activities.
       On page 223, strike lines 7 and 8 and insert the following:
       ``(g) Employment and Training.--No individual or
       On page 223, strike lines 14 through 17.
       On page 227, strike line 8 and insert the following:
       ``(5) Provision of food assistance.--
       ``(A) In general.--A
       On page 227, strike lines 14 and 15 and insert the 
     following:

     to food purchases, direct provision of commodities or cash 
     aid in lieu of coupons under subparagraph (B).
       ``(B) Cash aid in lieu of coupons.--
       ``(i) Eligible individuals.--An individual shall be 
     eligible under this subparagraph if the individual is--
       ``(I) receiving benefits under this Act;
       ``(II) 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.); and
       ``(III) participating in unsubsidized employment, 
     subsidized employment, on-the-job training, or a community 
     service program under section 404 of the Social Security Act.
       ``(ii) State option.--In the case of an individual 
     described in clause (i), a State may--
       ``(I) convert the food stamp benefits of the household in 
     which the individual is a member to cash, and provide the 
     cash in a single integrated payment with cash aid under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.); and
       ``(II) sanction an individual, or a household that contains 
     an individual, or reduce the benefits of the individual or 
     household under the same rules and procedures as the State 
     uses under part A of title IV of the Act (42 U.S.C. 601 et 
     seq.).
       On page 229, strike line 24 and all that follows through 
     page 231, line 2, and insert the following:

     97 percent of the federal funds the Director of the Office of 
     Management and Budget estimates would have been expended 
     under the food stamp program in the State for the fiscal year 
     if the State had not elected to participate in the program 
     under this section.
                                 ______


                CONRAD (AND LIBERMAN) AMENDMENT NO. 2528

  Mr. MOYNIHAN (for Mr. Conrad for himself and Mr. Lieberman) proposed 
an amendment to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

       On page 50, strike line 6 and all that follows through page 
     51, line 11, and insert the following:
       ``(d) Requirement That Teenage Parents Live in Adult-
     supervised Settings.--
       ``(1) In general.--
       ``(A) Requirement.--Except as provided in paragraph (2), if 
     a State provides assistance under the State program funded 
     under this part to an individual described in subparagraph 
     (B), such individual may only receive assistance under the 
     program if such individual and the child of the individual 
     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.
       ``(B) Individual described.-- For purposes of subparagraph 
     (A), an individual described in this subparagraph is an 
     individual who is--
       ``(i) under the age of 18; and
       ``(ii) not married and has a minor child in his or her 
     care.
       ``(2) Exception.--
       ``(A) Provision of, or assistance in locating, adult-
     supervised living arrangement.--In the case of an individual 
     who is described in subparagraph (B), the State agency shall 
     provide, or assist such individual in locating, an 
     appropriate adult-supervised supportive living arrangement, 
     including a second chance home, another responsible adult, or 
     a foster home, taking into consideration the needs and 
     concerns of the such individual, unless the State agency 
     determines that the individual's current living arrangement 
     is appropriate, and thereafter shall require that such parent 
     and the child of such parent reside in such living 
     arrangement as a condition of the continued receipt 

[[Page S 12988]]
     of assistance under the plan (or in an alternative appropriate 
     arrangement, should circumstances change and the current 
     arrangement cease to be appropriate).
       ``(B) Individual described.--For purposes of subparagraph 
     (A), an individual is described in this subparagraph if the 
     individual is described in paragraph (1)(B) and--
       ``(ii) such individual has no parent or legal guardian of 
     his or her own who is living or whose whereabouts are known;
       ``(iii) no living parent or legal guardian of such 
     individual allows the individual to live in the home of such 
     parent or guardian;
       ``(iv) the State agency determines that the physical or 
     emotional health of such individual or any minor child of the 
     individual would be jeopardized if such individual and such 
     minor child lived in the same residence with such 
     individual's own parent or legal guardian; or
       ``(v) the State agency otherwise determines that it is in 
     the best interest of the minor child to waive the requirement 
     of paragraph (1) with respect to such individual.
       ``(C) Second-chance home.--For purposes of this paragraph, 
     the term `second-chance home' means an entity that provides 
     individuals described in subparagraph (B) with a supportive 
     and supervised living arrangement in which such individuals 
     are required to learn parenting skills, including child 
     development, family budgeting, health and nutrition, and 
     other skills to promote their long-term economic independence 
     and the well-being of their children.
       ``(3) Assistance to states in providing or locating adult-
     supervised supportive living arrangements for unmarried 
     teenage parents.--
       ``(A) In general.--For each of fiscal years 1998 through 
     2002, each State that provides assistance under the State 
     program to individuals described in paragraph (1)(B) shall be 
     entitled to receive a grant in an amount determined under 
     subparagraph (B) for the purpose of providing or locating 
     adult-supervised supportive living arrangements for 
     individuals described in paragraph (1)(B) in accordance with 
     this subsection.
       ``(B) Amount determined.--
       ``(i) In general.--The amount determined under this 
     subparagraph is an amount that bears the same ratio to the 
     amount specified under clause (ii) as the amount of the State 
     family assistance grant for the State for such fiscal year 
     (described in section 403(a)(2)) bears to the amount 
     appropriated for such fiscal year in accordance with section 
     403(a)(4)(A).
       ``(ii) Amount specified.--The amount specified in this 
     subparagraph is--

       ``(I) for fiscal year 1998, $20,000,000;
       ``(II) for fiscal year 1999, $40,000,000; and
       ``(III) for each of fiscal years 2000, 2001, and 2002, 
     $80,000,000.

       ``(C) Assistance to states in providing or locating adult-
     supervised supportive living arrangements for unmarried 
     teenage parents.--There are authorized to be appropriated and 
     there are appropriated for fiscal years 1998, 1999, and 2000 
     such sums as may be necessary for the purpose of paying 
     grants to States in accordance with the provisions of this 
     paragraph.
       ``(e) Requirement That Teenage Parents Attend High School 
     or Other Equivalent Training Program.--If a State provides 
     assistance under the State program funded under this part to 
     an individual described in subsection (d)(1)(B) who has not 
     successfully completed a high-school education (or its 
     equivalent) and whose minor child is at least 12 weeks of 
     age, the State shall not provide such individual with 
     assistance under the program (or, at the option of the State, 
     shall provide a reduced level of such assistance) if the 
     individual does not participate in--
       ``(1) educational activities directed toward the attainment 
     of a high school diploma or its equivalent; or
       ``(2) an alternative educational or training program that 
     has been approved by the State.
       On page 51, strike ``(e)'' and insert ``(f)''.
       At the appropriate place, insert the following:

     SEC. ____. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--The Secretary of Education and the 
     Secretary of Health and Human Services 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. ____. ESTABLISHING NATIONAL GOALS TO REDUCE OUT-OF-
                   WEDLOCK PREGNANCIES AND TO PREVENT TEENAGE 
                   PREGNANCIES.

       (a) In General.--Not later than January 1, 1997, the 
     Secretary of Health and Human Services shall establish and 
     implement a strategy for--
       (1) reducing out-of-wedlock teenage pregnancies by at least 
     2 percent a year, and
       (2) assuring that at least 25 percent of the communities in 
     the United States have teenage pregnancy prevention programs 
     in place.
       (b) Report.--Not later than June 30, 1998, and annually 
     thereafter, the Secretary shall report to the Congress with 
     respect to the progress that has been made in meeting the 
     goals described in paragraphs (1) and (2) of subsection (a).
       (b) Out-of-Wedlock and Teenage Pregnancy Prevention 
     Programs.--Section 2002 of the Social Security Act (42 U.S.C. 
     1397a) is amended by adding at the end the following new 
     subsection:
       ``(f)(1) Beginning in fiscal year 1996 and each fiscal year 
     thereafter, each State shall use at least 5 percent of its 
     allotment under section 2003 for the fiscal year to develop 
     and implement a State program to reduce the incidence of out-
     of-wedlock and teenage pregnancies in the State.
       ``(2) The Secretary shall conduct a study with respect to 
     the State programs implemented under paragraph (1) to 
     determine the relative effectiveness of the different 
     approaches for reducing out-of-wedlock pregnancies and 
     preventing teenage pregnancy utilized in the programs 
     conducted under this subsection and the approaches that can 
     be best replicated by other States.
       ``(3) Each State conducting a program under this subsection 
     shall provide to the Secretary, in such form and with such 
     frequency as the Secretary requires, data from the programs 
     conducted under this subsection. The Secretary shall report 
     to the Congress annually on the progress of the programs and 
     shall, not later than June 30, 1998, submit to the Congress a 
     report on the study required under paragraph (2).''.

     SEC. ____. SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
                   STATUTORY RAPE LAWS.

       It is the sense of the Senate that States and local 
     jurisdictions should aggressively enforce statutory rape 
     laws.
                                 ______


                CONRAD (AND BRADLEY) AMENDMENT NO. 2529

  Mr. MOYNIHAN (for Mr. Conrad, for himself and Mr. Bradley) proposed 
an amendment to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

       On page 9, between lines 9 and 10, insert the following:

     SEC. 100A. ELECTION OF STATE PROGRAM.

       (a) Initial Election.--Not later than the effective date 
     under section 112, and prior to the expiration of any 
     election under this section thereafter, each State shall 
     elect whether it chooses to participate in--
       (1) the State program funded under part A of title IV of 
     the Social Security Act, as amended by title I of this Act; 
     or
       (2) the transitional aid program and the work and gainful 
     employment program under the Work and Gainful Employment Act, 
     as added by title XIII of this Act.

     A State may receive Federal funds for operating either the 
     program described in paragraph (1) or the programs described 
     in paragraph (2), but not both.
       (b) Effect of Election.--An election made under subsection 
     (a) shall remain in effect for a period of 4 years beginning 
     on the date that the State begins participation in the 
     programs elected by the State.
       (c) Information and Administration.--The Secretary shall--
       (1) provide the States with information about the programs 
     described in subsection (a); and
       (2) coordinate and administer the election process 
     described under subsection (a).
       (d) Electing To Participate in TAP and WAGE.--If, after 
     having elected under this section to participate in the 
     program described in subsection (a)(1) during the preceding 
     4-year period, a State elects under subsection (a) to 
     participate in the programs described in subsection (a)(2), 
     the State shall provide that total State and Federal 
     expenditures in each fiscal year under the programs described 
     in subsection (a)(2) shall not be less than the grant amount 
     that the State received under section 403 of the Social 
     Security Act for operating the program described in 
     subsection (a)(1).
       On page 792, after line 22, add the following:
         TITLE XIII--TRANSITIONAL AID PROGRAM AND WAGE PROGRAM

     SEC. 1300. SHORT TITLE.

       This title may be cited as the ``Work and Gainful 
     Employment Act''.

[[Page S 12989]]

                  Subtitle A--Transitional Aid Program

     SEC. 1301. PURPOSE AND APPROPRIATION.

       (a) Purpose.--It is the purpose of this subtitle to provide 
     a program of transitional aid to families with needy children 
     to enhance the well-being of such needy children, and to 
     enable parents of children in such families to obtain and 
     retain work and to become self-sufficient.
       (b) Appropriations.--There is hereby authorized to be 
     appropriated and are appropriated for each fiscal year such 
     sums as may be necessary to carry out the purposes of this 
     subtitle. The sums made available under this subsection shall 
     be used for making payments to States which have submitted, 
     and had approved by the Secretary, State plans for providing 
     a program of transitional aid.

     SEC. 1302. STATE PLANS FOR, AND GENERAL REQUIREMENTS OF, 
                   TRANSITIONAL AID PROGRAM.

       (a) State Plans.--A State plan for a transitional aid 
     program shall meet the requirements of the following 
     paragraphs:
       (1) Election of options in program design.--The State plan 
     shall describe the State's policies regarding eligibility, 
     services, assistance amounts, and program requirements, 
     including a description of:
       (A) The support and benefits (including benefit levels) 
     provided to individuals eligible to participate and whether 
     such support is in the form of wages in subsidized public or 
     nonprofit employment or direct subsidies to employers.
       (B) The extent to which earned or unearned income is 
     disregarded in determining eligibility for, and amount of, 
     assistance.
       (C) The State's policy for determining the extent to which 
     child support received on behalf of a member of the family is 
     disregarded in determining eligibility for, and the amount 
     of, assistance.
       (D) The treatment of earnings of a child living in the 
     home.
       (E) 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.
       (F) Any restrictions the State elects to impose relating to 
     eligibility for assistance of two-parent families.
       (G) The criteria for participating in the program including 
     requirements that a family must comply with as a condition of 
     receiving aid, such as school attendance, participation in 
     appropriate preemployment activities, and receipt of 
     appropriate childhood immunizations. The plan shall specify 
     whether the State elects to provide incentives for compliance 
     with the requirements, sanctions for noncompliance, or a 
     combination of incentives and sanctions that the State 
     determines appropriate.
       (H) The sanctions imposed on individuals who fail to comply 
     with the State's program requirements without good cause, 
     including the amount and length of time of such sanctions, 
     provided that if the sanction results in complete elimination 
     of aid to the family, the State plan shall describe the 
     procedures used to ensure the well-being of children.
       (I) Whether payment is made or denied for a child conceived 
     during a period in which such child's parent was receiving 
     aid under the program.
       (J) Whether the State elects to establish a time limit 
     after which an individual must comply with continuous or 
     additional work requirements under subtitle B as a condition 
     for receiving aid under the State plan approved under this 
     subtitle.
       (2) Parental responsibility agreements and wage plans.--
       (A) In general.--The State plan shall provide that the 
     State require the parent or caretaker relative to enter 
     into--
       (i) a Parental Responsibility Agreement in accordance with 
     subparagraph (B), or
       (ii) a Parental Responsibility Agreement in accordance with 
     subparagraph (B) and a Wage Plan in accordance with section 
     1391(b) if such parent or caretaker relative is required to 
     participate in the WAGE program.
       (B) Description of parental responsibility agreement.--A 
     Parental Responsibility Agreement is a statement signed by 
     the applicant for aid that--
       (i) specifies that the transitional aid program is a 
     privilege,
       (ii) the transitional aid program is a transitional program 
     to move recipients into work and self-sufficiency, and
       (iii) the individual must abide by any requirements of the 
     State or risk forfeiting eligibility for transitional aid.
       (3) Statewide plan.--The State plan shall be in effect in 
     all political subdivisions of the State. If such plan is not 
     administered uniformly throughout the State, the plan shall 
     describe the variations.
       (4) General eligibility requirement.--
       (A) In general.--The State plan shall ensure that 
     transitional aid is provided to all families with needy 
     children and that such aid is furnished with reasonable 
     promptness to individuals found eligible under the State 
     plan. In providing such assistance, States will take into 
     account the income and needs of a parent of a needy child if 
     the parent is living in the same home as the child.
       (B) Needy child.--For purposes of subparagraph (A), a needy 
     child shall be determined by the State, but shall be a child 
     who--
       (i) is under the age of 18, or
       (ii) at the option of the State, under the age of 19 and a 
     full-time student in a secondary school (or in the equivalent 
     level of vocational or technical training).
       (C) Pregnant woman.--At the option of the State, the State 
     may provide transitional aid to an individual who does not 
     have a needy child if such individual is pregnant, and such 
     transitional aid is provided--
       (i) in order to meet the needs of the individual occasioned 
     by or resulting from her pregnancy, and
       (ii) not more than 3 months before and after the date the 
     woman's child is expected to be born.
       (D) Persons other than parents.--For purposes of this 
     paragraph, a State may provide that the following individuals 
     shall constitute a family with a needy child if such 
     individuals are living in the same home as the child:
       (i) Any relative or legal guardian of the child.
       (ii) Any person who participates in the Food Stamp program 
     with the child.
       (iii) Any other person who provides--

       (I) care for an incapacitated family member (which, for 
     purposes of this subparagraph only, may include a child 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act; or
       (II) child care to enable a caretaker relative to work 
     outside the home or to participate in the WAGE program.

       (5) Child care services.--The State plan shall provide that 
     no individual shall be sanctioned for failure to comply with 
     the State's WAGE program requirements if such individual 
     needs child care assistance in order to participate, and the 
     State fails to provide such assistance.
       (6) 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 of the 
     Social Security Act, unless the State has established an 
     alternative system under section 1310 of this Act to prevent 
     fraud and abuse.
       (7) Alien eligibility.--The State plan shall provide that 
     in order for an individual to be eligible for transitional 
     aid under this subtitle, the individual shall be--
       (A) a citizen or national of the United States, or
       (B) an individual described in subclause (II), (III), (IV), 
     or (V) of section 1614(a)(1)(B)(i) of the Social Security Act 
     (42 U.S.C. 1382c(a)(1)(B)(i)).
       (8) Detection of fraud.--
       (A) In general.--The State plan shall provide (in 
     accordance with regulations issued by the Secretary) for 
     appropriate measures to detect fraudulent applications for 
     transitional aid to families with needy children before 
     establishing eligibility for such aid.
       (B) Description of fraud control program.--If the State has 
     elected to establish and operate a fraud control program 
     under section 1310, the State shall submit to the Secretary 
     (with such revisions as may from time to time be necessary) a 
     description of such program and will operate such program in 
     full compliance with such section 1310.
       (9) Participation in child support enforcement.--The State 
     plan shall provide--
       (A) that the State has in effect a plan approved under part 
     D of title IV of the Social Security Act and operates a child 
     support enforcement program in substantial compliance with 
     such plan, and
       (B) that, as a condition of eligibility for aid, each 
     applicant or recipient will be required (subject to 
     subparagraph (D))--
       (i) to assign the State any rights to support from any 
     other person such applicant may have in such applicant's own 
     behalf or in behalf of any other family member for whom the 
     applicant is applying for or receiving aid; and
       (ii) to cooperate with the State--

       (I) in establishing the paternity of a child born out of 
     wedlock with respect to whom aid is claimed, and
       (II) in obtaining support payments for such applicant and 
     for a child with respect to whom such aid is claimed;

       (C) that the State agency will immediately refer each 
     applicant requiring paternity establishment, award 
     establishment, or child support enforcement services to the 
     State agency administering the program under part D of title 
     IV of the Social Security Act;
       (D) that an individual shall be required to cooperate with 
     the State, as provided under subparagraph (B), unless 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 child on whose behalf 
     aid is claimed to the satisfaction of the State agency 
     administering the program under part D of title IV of the 
     Social Security Act, as determined in accordance with section 
     454(29) of such Act;
       (E) that--
       (i) (except as provided in clause (ii)) an applicant 
     requiring services provided under part D of title IV of the 
     Social Security Act shall not be eligible for any aid under 
     this subtitle until such applicant--

       (I) has furnished to the agency administering the State 
     plan under part D of such title the information specified in 
     section 454(29) of such Act; or
       (II) has been determined by such agency to have good cause 
     not to cooperate; and

       (ii) that the provisions of clause (i) shall not apply--

       (I) if the agency specified in clause (i) has not within 10 
     days after such individual was 

[[Page S 12990]]
     referred to such agency, provided the notification required by section 
     454(29)(D)(iii) of such Act, 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; and

       (F) that, if the relative with whom a child is living is 
     found to be ineligible because of failure to comply with the 
     requirements of subparagraph (B), the State may authorize 
     protective payments as provided for in section 1305.
       (10) Automated data processing system.--The State plan may, 
     at the option of the State, provide for the establishment and 
     operation, in accordance with an (initial and annually 
     updated) advance automated data processing planning document 
     approved under subsection (c), of an automated statewide 
     management information system designed effectively and 
     efficiently to assist management in the administration of the 
     State plan for transitional aid to families with needy 
     children approved under this subtitle, so as--
       (A) to control and account for--
       (i) all the factors in the total eligibility determination 
     process under such plan for aid (including but not limited to 
     (I) identifiable correlation factors (such as social security 
     numbers, names, dates of birth, home addresses, and mailing 
     addresses (including postal ZIP codes) of all applicants and 
     recipients of such aid and the relative with whom any child 
     who is such an applicant or recipient is living) to assure 
     sufficient compatibility among the systems of different 
     jurisdictions to permit periodic screening to determine 
     whether an individual is or has been receiving benefits from 
     more than one jurisdiction, (II) checking records of 
     applicants and recipients of such aid on a periodic basis 
     with other agencies, both intra- and inter-State, for 
     determination and verification of eligibility and payment 
     pursuant to requirements imposed by other provisions of this 
     title or title IV of the Social Security Act),
       (ii) the costs, quality, and delivery of funds and services 
     furnished to applicants for and recipients of such aid;
       (B) to notify the appropriate officials of child support, 
     food stamp, social service, and medical assistance programs 
     approved under title XIX of the Social Security Act whenever 
     the recipient becomes ineligible or the amount of aid or 
     services is changed; and
       (C) to provide for security against unauthorized access to, 
     or use of, the data in such system.
       (11) Participation in wage.--The State plan shall provide--
       (A) that the State operate a WAGE program in accordance 
     with subtitle B, and
       (B) a description of individuals required to participate in 
     the WAGE program in the State; such individuals may not 
     include the following:
       (i) Parents of children under 12 weeks of age or, at the 
     State's option, up to 1 year.
       (ii) Individuals who are ill or incapacitated, as defined 
     by the State.
       (iii) Individuals who are needed in the home on a full-time 
     basis to care for a disabled child or other household member.
       (iv) Individuals who are over 60 years of age.
       (v) Individuals under age 16 other than teenage parents.
       (12) Report of child abuse.--The State plan shall provide 
     that the State agency will--
       (A) 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 aid under this subtitle under 
     circumstances which indicate that the child's health or 
     welfare is threatened thereby; and
       (B) provide such information with respect to a situation 
     described in subparagraph (A) as the State agency may have.
       (b) Approval of State Plans.--
       (1) In general.--Not later than 60 days after the date a 
     State submits to the Secretary a plan that provides for the 
     establishment and operation of a program or an amendment to 
     such plan that meets the requirements of subsection (a), the 
     Secretary shall approve the plan.
       (2) Authority to extend deadline.--The 60-day deadline 
     established in paragraph (1) with respect to a State may be 
     extended in accordance with an agreement between the 
     Secretary and the State.
       (c) Approval of Automatic Data Processing Planning 
     Document; Review of Management Information Systems; Failure 
     To Comply; Reduction of Payments.--
       (1) Approval of automated data processing planning 
     document.--The Secretary shall not approve the initial and 
     annually updated advance automated data processing planning 
     document, referred to in paragraph (2), unless the Secretary 
     finds that such document, when implemented, will generally 
     carry out the objectives of the statewide management system 
     referred to in such paragraph, and such document--
       (A) provides for the conduct of, and reflects the results 
     of, requirements analysis studies, which include 
     consideration of the program mission, functions, 
     organization, services, constraints, and current support, of, 
     in, or relating to, such system,
       (B) contains a description of the proposed statewide 
     management system, including a description of information 
     flows, input data, and output reports and uses,
       (C) sets forth the security and interface requirements to 
     be employed in such statewide management system,
       (D) describes the projected resource requirements for staff 
     and other needs, and the resources available or expected to 
     be available to meet such requirements,
       (E) includes cost-benefit analyses of each alternative 
     management system, data processing services and equipment, 
     and a cost allocation plan containing the basis for rates, 
     both direct and indirect, to be in effect under such 
     statewide management system,
       (F) contains an implementation plan with charts of 
     development events, testing descriptions, proposed acceptance 
     criteria, and backup and fallback procedures to handle 
     possible failure of contingencies, and
       (G) contains a summary of proposed improvements of such 
     statewide management system in terms of qualitative and 
     quantitative benefits.
       (2) Secretarial review.--
       (A) In general.--The Secretary shall, on a continuing 
     basis, review, assess, and inspect the planning, design, and 
     operation of, statewide management information systems 
     referred to in section 1303(a)(2), with a view to determining 
     whether, and to what extent, such systems meet and continue 
     to meet requirements imposed under such section and the 
     conditions specified under paragraph (10) of subsection (a).
       (B) Suspension of approval.--If the Secretary finds with 
     respect to any statewide management information system 
     referred to in section 1303(a)(2) that there is a failure 
     substantially to comply with criteria, requirements, and 
     other undertakings, prescribed by the advance automated data 
     processing planning document previously approved by the 
     Secretary with respect to such system, then the Secretary 
     shall suspend his approval of such document until there is no 
     longer any such failure of such system to comply with such 
     criteria, requirements, and other undertakings so prescribed.
       (C) Reduction of payments under section 1303.--If the 
     Secretary determines that such a system has not been 
     implemented by the State by the date specified for 
     implementation in the State's advance automated data 
     processing planning document, then the Secretary shall reduce 
     payments to such State, in accordance with section 1303(b), 
     in an amount equal to 40 percent of the expenditures referred 
     to in section 1303(a)(2) with respect to which payments were 
     made to the State under section 1303(a)(2). The Secretary may 
     extend the deadline for implementation if the State 
     demonstrates to the satisfaction of the Secretary that the 
     State cannot implement such system by the date specified in 
     such planning document due to circumstances beyond the 
     State's control.
       (d) Impact on Medicaid Benefits of Noncompliance With 
     Certain TAP and WAGE Requirements.--If a family becomes 
     ineligible to receive transitional aid under the State 
     transitional aid program because an individual in such family 
     fails to comply with the requirements of this subtitle--
       (1) a needy child of such family shall remain eligible for 
     medical assistance under the State's plan approved under 
     title XIX of the Social Security Act, and
       (2) the family shall be appropriately notified of such 
     extension (in the State agency's notice to the family of the 
     termination of its eligibility for such aid) as required by 
     section 1925(a)(2) of the Social Security Act.

     SEC. 1303. PAYMENTS TO STATES.

       (a) Computation of Amounts.--From the sums appropriated 
     therefor, the Secretary of the Treasury shall pay to each 
     State which has an approved plan for a transitional aid 
     program, for each quarter, beginning with the quarter 
     commencing October 1, 1995, an amount equal to--
       (1) the Federal medical assistance percentage (as defined 
     in section 1905(b) of the Social Security Act) of the 
     expenditures by the State for benefits and assistance under 
     such plan, and
       (2) 50 percent of so much of the sums expended during such 
     quarter as are attributable to the planning, design, 
     development, or installation of such statewide mechanized 
     claims processing and information retrieval systems as--
       (A) meet the conditions of section 1302(a)(10), and
       (B) the Secretary determines are likely to provide more 
     efficient, economical, and effective administration of the 
     plan and to be compatible with the claims processing and 
     information retrieval systems utilized in the administration 
     of State plans approved under title XIX of the Social 
     Security Act, and State programs with respect to which there 
     is Federal financial participation under title XX of the 
     Social Security Act.
       (b) Method of Computation and Payment.--The method of 
     computing and paying such amounts shall be as follows:
       (1) Estimates.--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) of 
     this section, 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 

[[Page S 12991]]
     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) Adjustments for prior quarters.--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 finds that the Secretary's estimate for 
     any prior quarter was greater or less than the amount which 
     should have been paid to the State for such quarter,
       (B) reduced by a sum equivalent to the pro rata share to 
     which the United States 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 transitional 
     aid to families with needy children furnished under the State 
     plan, and
       (C) reduced by such amount as is necessary to provide the 
     ``appropriate reimbursement of the Federal Government'' that 
     the State is required to make under section 457 of the Social 
     Security Act 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.
       (3) Payment of the amount certified.--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.
       (c) Uniform Reporting Requirements.--In order to assist in 
     obtaining the information needed to carry out subsection 
     (b)(1) and otherwise to perform the Secretary's duties under 
     this subtitle, the Secretary shall establish uniform 
     reporting requirements under which each State will be 
     required to furnish data regarding--
       (1) the monthly number of families assisted under this 
     subtitle;
       (2) the types of such families;
       (3) the monthly number of children assisted under this 
     subtitle;
       (4) the amounts expended to serve such families and 
     children;
       (5) the length of time for which such families and children 
     are assisted;
       (6) the number of families and children receiving child 
     care assistance;
       (7) the number of families receiving transitional medicaid 
     assistance; and
       (8) in what form the amounts of assistance are being spent 
     (the amount spent on wage subsidies compared to the amount 
     spent on cash benefits).
       (d) Bonus Amount.--
       (1) In general.--For fiscal year 1997 and each fiscal year 
     thereafter, a State operating a transitional aid program 
     under subtitle A in the preceding fiscal year meeting the 
     requirements of paragraph (2) shall receive a bonus amount 
     equal to 10 percent of the base payment amount determined for 
     such State under section 1381(b).
       (2) Requirements.--A transitional aid program meets the 
     requirements of this paragraph if the program--
       (A) provides for disregards of earned income for families 
     receiving transitional aid to ensure that a family in which a 
     family member worked part-time in a minimum wage job did not 
     have a lower monthly income after calculation of reasonable 
     work-related expenses than a family of the same size in which 
     a family member did not work;
       (B) provides that calculation of the level of transitional 
     aid under the program for a family is based only on the needs 
     of needy children and the caretaker relatives of such 
     children; and
       (C) provides for equal treatment of one-parent and two-
     parent families.

     SEC. 1304. DEVIATION FROM PLAN.

       (a) Stoppage of Payments.--In the case of any State plan 
     for transitional aid to families with needy children which 
     has been approved by the Secretary, 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 section 1302(a) 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).
       (b) Misuse of Funds.--In any case in which the Secretary 
     finds that a State has misappropriated or misused funds 
     appropriated pursuant to section 1303, the Secretary shall 
     reduce the payment to which the State would otherwise be 
     entitled under this subtitle for the fiscal year following 
     the fiscal year in which such finding is made by an amount 
     equal to two times the amount of funds found to be misused or 
     misappropriated.

     SEC. 1305. USE OF PAYMENTS FOR BENEFIT OF CHILDREN.

       Whenever the State agency has reason to believe that any 
     payments of transitional aid to families with needy children 
     made with respect to a child are not being or may not be used 
     in the best interests of the child, the State agency may 
     provide for such counseling and guidance services with 
     respect to the use of such payments and the management of 
     other funds by the relative receiving such payments as it 
     deems advisable in order to assure use of such payments in 
     the best interests of such child, and may provide for 
     advising such relative that continued failure to so use such 
     payments will result in substitution therefor of such 
     protective payments as the State may authorize, or in seeking 
     appointment of a guardian or legal representative as provided 
     in section 1111 of the Social Security Act, or in the 
     imposition of criminal or civil penalties authorized under 
     State law if it is determined by a court of competent 
     jurisdiction that such relative is not using or has not used 
     for the benefit of the child any such payments made for that 
     purpose; and the provision of such services or advice by the 
     State agency (or the taking of the action specified in such 
     advice) shall not serve as a basis for withholding funds from 
     such State under section 1304 and shall not prevent such 
     payments with respect to such child from being considered 
     transitional aid to families with needy children.

     SEC. 1306. SPECIAL RULE.

       Each needy child, and each relative with whom such a child 
     is living (including the spouse of such relative), who 
     becomes ineligible for transitional aid to families with 
     needy children as a result (wholly or partly) of the 
     collection or increased collection of child or spousal 
     support under part D of title IV of the Social Security Act, 
     and who has received such aid 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 transitional aid 
     to families with needy children for purposes of title XIX of 
     such Act for an additional 4 calendar months beginning with 
     the month in which such ineligibility begins.
     SEC. 1307. PERFORMANCE MEASUREMENT SYSTEM.

       (a) In General.--Not later than July 1, 1996, the 
     Secretary, in consultation with the States, shall submit 
     recommendations to Congress to streamline the system for 
     monitoring the accuracy of payments made for transitional aid 
     to families with needy children and for transforming the 
     transitional aid program into a system that measures a 
     State's performance in moving recipients of such aid into 
     permanent employment.
       (b) Details of Recommendations.--The recommendations 
     required by subsection (a) shall--
       (1) be based on a system which replaces the AFDC quality 
     control system (described in section 408 of the Social 
     Security Act as in effect on the day before the date of the 
     enactment of the Work and Gainful Employment Act),
       (2) include an effort to ensure the continuity of recipient 
     data collected under the AFDC quality control system and the 
     new streamlined system, and
       (3) integrate the performance measurements under the WAGE 
     program and any other applicable performance measurements 
     that are designed to measure the effectiveness of States in 
     promoting work.

     SEC. 1308. EXCLUSION FROM TRANSITIONAL AID PROGRAM UNIT OF 
                   INDIVIDUALS FOR WHOM CERTAIN PAYMENTS ARE MADE.

       (a) Exclusion of Children Receiving Foster Care, Etc.--
     Notwithstanding any other provision of this title (other than 
     subsection (b))--
       (1) a child with respect to whom foster care maintenance 
     payments or adoption assistance payments are made under part 
     E of title IV of the Social Security Act or under State or 
     local law, or a child or parent receiving benefits under 
     title XVI of such Act, shall not, for the period for which 
     such payments are made, be regarded as a member of a family 
     for purposes of determining the amount of benefits of the 
     family under this subtitle; and
       (2) the income and resources of such child or parent shall 
     be excluded from the income and resources of a family under 
     this subtitle.
       (b) Limitation.--Subsection (a) of this section shall not 
     apply in the case of a child with respect to whom adoption 
     assistance payments are made under part E of title IV of the 
     Social Security Act or under State or local law, if 
     application of such subsection would reduce the benefits 
     under this subtitle of the family of which the child would 
     otherwise be regarded as a member.

     SEC. 1309. TECHNICAL ASSISTANCE FOR DEVELOPING MANAGEMENT 
                   INFORMATION SYSTEMS.

       The Secretary shall provide such technical assistance to 
     States as the Secretary determines necessary to assist States 
     to plan, design, develop, or install and provide for the 
     security of, the management information systems referred to 
     in section 1303(a)(2).
     SEC. 1310. FRAUD CONTROL.

       (a) Election for Fraud Control Program.--Any State, in the 
     administration of its State plan approved under section 1302, 


[[Page S 12992]]
     may elect to establish and operate a fraud control program in 
     accordance with this section.
       (b) Penalty for False or Misleading Statement or 
     Misrepresentation of Fact.--Under any such program, if an 
     individual who is a member of a family applying for or 
     receiving aid under the State plan approved under section 
     1302 is found by a Federal or State court or pursuant to an 
     administrative hearing meeting requirements determined in 
     regulations of the Secretary, on the basis of a plea of 
     guilty or nolo contendere or otherwise, to have 
     intentionally--
       (1) made a false or misleading statement or misrepresented, 
     concealed, or withheld facts, or
       (2) committed any act intended to mislead, misrepresent, 
     conceal, or withhold facts or propound a falsity, for the 
     purpose of establishing or maintaining the family's 
     eligibility for aid under such State plan or of increasing 
     (or preventing a reduction in) the amount of such aid, then 
     the needs of such individual shall not be taken into account 
     by the State in determining eligibility for transitional aid 
     under this subtitle with respect to his or her family--
       (A) for a period of 6 months upon the first occasion of any 
     such offense,
       (B) for a period of 12 months upon the second occasion of 
     any such offense, and
       (C) permanently upon the third or a subsequent occasion of 
     any such offense.
       (c) Proceedings Against Violators by State Agency.--The 
     State agency involved shall proceed against any individual 
     alleged to have committed an offense described in subsection 
     (b) either by way of administrative hearing or by referring 
     the matter to the appropriate authorities for civil or 
     criminal action in a court of law. The State agency shall 
     coordinate its actions under this section with any 
     corresponding actions being taken under the food stamp 
     program in any case where the factual issues involved arise 
     from the same or related circumstances.
       (d) Duration of Period of Sanctions; Review.--Any period 
     for which sanctions are imposed under subsection (b) shall 
     remain in effect, without possibility of administrative stay, 
     unless and until the finding upon which the sanctions were 
     imposed is subsequently reversed by a court of appropriate 
     jurisdiction; but in no event shall the duration of the 
     period for which such sanctions are imposed be subject to 
     review.
       (e) Additional Sanctions Provided by Law.--The sanctions 
     provided under subsection (b) shall be in addition to, and 
     not in substitution for, any other sanctions which may be 
     provided for by law with respect to the offenses involved.
       (f) Written Notice of Penalties for Fraud.--Each State 
     which has elected to establish and operate a fraud control 
     program under this section must provide all applicants for 
     transitional aid to families with needy children under its 
     approved State plan, at the time of their application for 
     such aid, with a written notice of the penalties for fraud 
     which are provided for under this section.

     SEC. 1311. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

       The programs under this title and part D of title IV of the 
     Social Security Act shall be administered by an Assistant 
     Secretary for Family Support within the Department of Health 
     and Human Services, who shall be appointed by the President, 
     by and with the advice and consent of the Senate, and who 
     shall be in addition to any other Assistant Secretary of 
     Health and Human Services provided for by law.
     SEC. 1312. TRANSITION FROM AFDC TO TRANSITIONAL AID PROGRAM.

       In the case of any individual who is an applicant for or 
     recipient of aid to families with dependent children under 
     part A of title IV of the Social Security Act, as in effect 
     on the day before the effective date of this title, the State 
     may, at the State's option, provide that--
       (1) such individual be treated as an applicant for or 
     recipient of (as the case may be) transitional aid to 
     families with needy children under this subtitle as in effect 
     on such effective date, or
       (2) such individual submit an application for transitional 
     aid in accordance with the provisions of the State plan 
     approved under this subtitle as so in effect.
         Subtitle B--Work And Gainful Employment (Wage) Program

     SEC. 1380. PURPOSE.

       It is the purpose of this subtitle to provide States with 
     flexibility to design programs to ensure that needy families 
     with children obtain employment and avoid long-term welfare 
     dependence.

                          PART 1--BLOCK GRANT

     SEC. 1381. BLOCK GRANT.

       (a) Block Grant Amount.--Subject to section 1382, each 
     State that operates a WAGE program in accordance with part 2 
     shall be entitled to receive for each fiscal year a block 
     grant amount equal to--
       (1) the base payment amount determined under subsection (b) 
     and the additional amount described in subsection (b)(3); 
     plus
       (2) the performance award amount (if any) determined under 
     subsection (c).
       (b) Base Payment Amount.--
       (1) In general.--Subject to the limitation of paragraph 
     (3), the base payment amount determined under this subsection 
     with respect to each State is--
       (A) for fiscal year 1996, an amount equal to the base 
     amount determined under paragraph (2); and
       (B) for fiscal year 1997 and each subsequent fiscal year, 
     an amount equal to 103 percent of the base payment amount 
     determined under this subsection for the prior fiscal year.
       (2) Base amount.--The base amount determined under this 
     paragraph with respect to each State is an amount equal to 
     the greater of--
       (A) 103 percent of the Federal payments made to the State 
     in fiscal year 1995--
       (i) for child care services described in clause (i) or (ii) 
     of section 402(g)(1)(a) (relating to AFDC-JOBS child care and 
     transitional child care);
       (ii) under section 403(a)(3) (relating to administrative 
     costs of operating the AFDC program), other than any payments 
     made under such section for automated data processing 
     systems; and
       (iii) under section 403(a)(5) (relating to emergency 
     assistance); or
       (B) 103 percent of the average of the Federal payments 
     described in clauses (i), (ii), and (iii) of subparagraph (A) 
     made to the State in fiscal years 1993, 1994, and 1995.
       (3) Additional payments.--
       (A) In general.--In addition to the amounts specified in 
     paragraph (2), each State operating a program under the 
     subtitle shall be entitled to receive an amount that bears 
     the same ratio to the amount specified in subparagraph (B) 
     for such fiscal year as the average monthly number of 
     families with needy children receiving transitional aid in 
     the State in the preceding fiscal year bears to the average 
     monthly number of families receiving transitional aid or cash 
     assistance under the State program funded under part A of 
     title IV of the Social Security Act in all the States for 
     such preceding year.
       (B) Amount specified.--The amount specified in this 
     subparagraph is--
       (i) for fiscal year 1996, $1,200,000,000;
       (ii) for fiscal year 1997, $1,700,000,000;
       (iii) for fiscal year 1998, $2,100,000,000;
       (iv) for fiscal year 1999, $2,700,000,000; and
       (v) for fiscal year 2000, $3,200,000,000.
       (c) Performance Award.--
       (1) In general.--Subject to the limitation of paragraph 
     (4), the performance award determined under this subsection 
     for a fiscal year for a State is an amount equal to the sum 
     of--
       (A) the full-time employment savings of the State, plus
       (B) the part-time employment savings of the State.
       (2) Full-time employment savings.--For purposes of this 
     subsection--
       (A) In general.--The full-time employment savings of a 
     State for any fiscal year is an amount equal to the product 
     of--
       (i) the total number of full-time performance award 
     employees, and
       (ii) an amount equal to 6 times the Federal share of the 
     average monthly transitional aid paid to individuals in 
     accordance with the State plan under subtitle A for the 
     preceding fiscal year.
       (B) Full-time performance award employees.--The term `full-
     time performance award employees' means, with respect to any 
     fiscal year, a number of employees equal to the applicable 
     percentage of the average monthly number of individuals who, 
     during the preceding fiscal year, received transitional aid 
     under the program operated in accordance with the State plan 
     under subtitle A.
       (C) Applicable percentage.--The term `applicable 
     percentage' means, with respect to any fiscal year, the 
     number of whole percentage points (if any) by which--
       (i) the percentage which--

       (I) the average monthly number of individuals who became 
     ineligible during the preceding fiscal year to receive 
     transitional aid under the program operated in accordance 
     with the State plan under subtitle A by reason of earnings 
     from employment, bears to
       (II) the number of individuals receiving transitional aid 
     under the program operated in accordance with the State plan 
     under subtitle A for such preceding fiscal year, exceeds

       (ii) the percentage determined under clause (i) for fiscal 
     year 1996.
       (D) Special rule for short-term employees.--An individual 
     shall not be taken into account under subclause (I) of 
     subparagraph (C)(i) unless the employment described in such 
     subclause has continued for 6 consecutive months. If an 
     individual is not taken into account for a fiscal year by 
     reason of this subparagraph, such individual shall be taken 
     into account in the following fiscal year if such 6-month 
     period ends in such following fiscal year.
       (3) Part-time employment savings.--For purposes of this 
     subsection--
       (A) In general.--The part-time employment savings of a 
     State for any fiscal year is an amount equal to the product 
     of--
       (i) the total number of part-time performance award 
     employees, and
       (ii) an amount equal to 6 times the Federal share of the 
     average monthly transitional aid (weighted for family size) 
     which would otherwise be paid to individuals described in 
     subparagraph (C)(i)(I) in accordance with the State plan 
     under subtitle A for the preceding fiscal year but for the 
     fact the individual worked at least 20 hours per week.
       (B) Part-time performance award employees.--The term `part-
     time performance award employees' means, with respect to any 
     fiscal year, a number of employees equal to the applicable 
     percentage of the average 

[[Page S 12993]]
     monthly number of individuals who, during the preceding fiscal year, 
     received transitional aid under the program operated in 
     accordance with the State plan under subtitle A.
       (C) Applicable percentage.--The term `applicable 
     percentage' means, with respect to any fiscal year, the 
     number of whole percentage points (if any) by which--
       (i) the percentage which--

       (I) the average monthly number of individuals who were 
     eligible to receive transitional aid under the program 
     operated in accordance with the State plan under subtitle A 
     during the preceding fiscal year, and worked at least 20 
     hours a week in a position which was not subsidized by the 
     State, bears to
       (II) the number of individuals receiving transitional aid 
     under the program operated in accordance with the State plan 
     under subtitle A for such preceding fiscal year, exceeds

       (ii) the percentage determined under clause (i) for fiscal 
     year 1996.
       (D) Special rule for areas of high unemployment.--In the 
     case of any State (or any area of a State) which has an 
     average monthly unemployment rate which is more than 6.5 
     percent (as determined by the Secretary of Labor) for the 
     fiscal year for which the percentage described in 
     subparagraph (C)(i) is being determined, such State may, in 
     applying subparagraph (C)(i)(I), include individuals residing 
     in such State (or area) who worked at least 20 hours a week 
     in positions fully subsidized by the State.
       (4) Limitation.--
       (A) In general.--The performance award under paragraph (1) 
     for a State for any fiscal year shall not exceed the amount 
     that bears the same ratio to the amount specified in clause 
     (ii) for such fiscal year as the amount of full-time and 
     part-time performance award employees of the State for a 
     fiscal year bears to the amount of such employees for all 
     States participating in the program under this subtitle for 
     such fiscal year.
       (B) Amount specified.--The amount specified in this 
     subparagraph is--
       (i) for fiscal year 1998, $200,000,000;
       (ii) for fiscal year 1999, $400,000,000; and
       (iii) for fiscal year 2000 and each fiscal year thereafter, 
     $600,000,000.
       (5) Award beginning with fiscal year 1998.--No amount shall 
     be paid to a State as a performance award determined under 
     this subsection before October 1, 1997.
       (d) Payments to Indian Tribes.--The Secretary shall reserve 
     for payment to Indian tribes and Alaska Native organizations 
     with an application approved under section 1392(a)(1)(A) an 
     amount equal to not more than 2 percent of the amount 
     appropriated under subsection (a). Such amounts shall be 
     distributed to each tribe and Alaska Native organization in 
     an amount that bears the same ratio to the total amount 
     reserved under this subsection as the number of the 
     participants required to be served in the preceding fiscal 
     year in the tribe's or Alaska Native organization's service 
     area bears to the number of participants to be served by all 
     tribes and Alaska Native organizations in such preceding 
     year. In making such distributions, the Secretary shall take 
     into account such other factors as the Secretary deems 
     appropriate, including unique geographic, economic, 
     demographic, and administrative conditions of individual 
     Indian tribes and Alaska Native organizations.
     SEC. 1382. PARTICIPATION RATES.

       (a) Participation Rate Requirement.--
       (1) In general.--Notwithstanding section 1381, the 
     Secretary shall pay to a State an amount equal to 95 percent 
     of the base payment amount determined for the State for a 
     fiscal year if the State's participation rate determined 
     under subsection (c) for the preceding fiscal year does not 
     exceed or equal the following percentage:

``Fiscal year:                                              Percentage:
  1996...........................................................35....

  1997...........................................................40....

  1998...........................................................45....

  1999...........................................................50....

  2000..........................................................55.....

       (2) Required work activity.--A State shall not be treated 
     as having a participation rate meeting the requirements of 
     this subsection if the number of individuals described in 
     subsection (c)(1) engaged in work activities is not at least 
     50 percent of the total number of individuals described in 
     subsection (c)(1).
       (b) Election by the State.--In lieu of the reduction 
     described in subsection (a), a State that does not meet the 
     participation rate requirements described in subsection (a), 
     may elect to receive the full amount of the payments 
     described in section 1381(a)(1) to which the State is 
     otherwise entitled for the fiscal year if the State makes 
     available non-Federal contributions for the fiscal year in an 
     amount equal to not less than 5 percent of the State's non-
     Federal contributions for the preceding fiscal year.
       (c) Determination of Participation Rate.--The State's 
     participation rate for a fiscal year shall be the number, 
     expressed as a percentage, equal to--
       (1) the sum of--
       (A) the average monthly number of individuals in the State 
     who have participated in work activities or work preparation 
     activities under the WAGE program under part 2 for an average 
     of at least 20 hours a week,
       (B) the average monthly number of individuals who within 
     the previous 6-month period have become ineligible for 
     transitional aid under subtitle A or the WAGE program because 
     the individuals are employed, and
       (C) the average monthly number of individuals under 
     sanctions for failing to comply with a WAGE Plan, divided by
       (2) the average monthly number of families with an adult 
     recipient, not including those who are exempt under section 
     1302(a)(11).
       (d) Definition of Work Activities.--For purposes of this 
     section, the term `work activities' means--
       (1) unsubsidized employment;
       (2) subsidized private sector employment;
       (3) subsidized public sector employment or work experience 
     (including work associated with the refurbishing of publicly 
     assisted housing) only if sufficient private sector 
     employment is not available;
       (4) on-the-job training; and
       (5) microenterprise employment.
       (e) Two-Year Limit.--For purposes of subsection (c)(1)(A), 
     an individual who has participated in the WAGE program for 2 
     years may not be counted in determining the State's 
     participation rate unless such individual is engaged in a 
     work activity.

          PART 2--ESTABLISHMENT AND OPERATION OF WAGE PROGRAM

     SEC. 1390. REQUIREMENT TO ESTABLISH A WAGE PROGRAM.

       A State shall establish a work and gainful employment 
     program (hereafter in this part referred to as the `WAGE 
     program') in accordance with section 1391.

     SEC. 1391. ESTABLISHMENT AND OPERATION OF FLEXIBLE STATE 
                   PROGRAMS.

       (a) Program Requirements.--Any State with a State plan 
     approved under subsection (c) shall establish and operate a 
     program that meets the following requirements:
       (1) Objective.--The objective of the program is for each 
     program participant to find and hold a full-time unsubsidized 
     paid job, and for this goal to be achieved in a cost-
     effective fashion.
       (2) Methods of obtaining objective.--The objective of the 
     program under paragraph (1) shall be achieved by connecting 
     recipients of transitional aid with the private sector labor 
     market as soon as possible and offering them the support and 
     skills necessary to remain in the labor market. Each 
     component of the program should seek to attain the objective 
     by emphasizing employment and conveying an understanding that 
     minimum wage jobs are a stepping stone to more highly paid 
     employment. The program is intended to provide recipients 
     with job search and placement, education, training, wage 
     supplementation, temporary subsidized jobs, or such other 
     services as the State deems necessary to help a recipient 
     obtain private sector employment.
       (3) Job creation.--The creation of jobs, with an emphasis 
     on private sector jobs, shall be a component of the program 
     and shall be a priority for each State office that has 
     responsibility under the program.
       (4) Assistance.--The State may provide assistance to 
     participants in the program in the following forms:
       (A) State job placement services, which may include 
     employment opportunity centers that act as one-stop placement 
     entities through which the State makes available to each 
     program participant services under programs carried out under 
     one or more of the following provisions of law:
       (i) Part A of title II of the Job Training Partnership Act 
     (29 U.S.C. 1601 et seq.) (relating to the adult training 
     program).
       (ii) Part B of title II of such Act (29 U.S.C. 1630 et 
     seq.) (relating to the summer youth employment and training 
     programs).
       (iii) Part C of title II of such Act (29 U.S.C. 1641 et 
     seq.) (relating to the youth training program).
       (iv) Title III of such Act (29 U.S.C. 1651 et seq.) 
     (relating to employment and training assistance for 
     dislocated workers).
       (v) Part B of title IV of such Act (29 U.S.C. 1691 et seq.) 
     (relating to the Job Corps).
       (vi) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (vii) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (viii) Part B of chapter 1 of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 2741 et seq.) 
     (relating to Even Start family literacy programs).
       (ix) Subtitle A of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11421) (relating to adult 
     education for the homeless).
       (x) Subtitle B of title VII of such Act (42 U.S.C. 11431 et 
     seq.) (relating to education for homeless children and 
     youth).
       (xi) Subtitle C of title VII of such Act (42 U.S.C. 11441) 
     (relating to job training for the homeless).
       (xii) The School-to-Work Opportunities Act of 1994.
       (xiii) The National and Community Service Act of 1990 (42 
     U.S.C. 12501 et seq.).
       (xiv) The National Skill Standards Act of 1994.
       (B) Private placement company services, which may include 
     contracts the State enters into with private companies 
     (whether operated for profit or not for profit) or community 
     action agencies for placement of participants in the program 
     in positions of full-time or part-time employment, preferably 
     in the private sector, for wages sufficient to eliminate the 
     need of such participants for cash assistance.
       (C) Microenterprise programs, including programs under 
     which the State makes grants and loans to public and private 
     organizations, agencies, and other entities (whether operated 
     for profit or not for profit) to enable such entities to 
     facilitate economic development by--

[[Page S 12994]]

       (i) providing technical assistance, advice, and business 
     support services (including assistance, advice, and support 
     relating to business planning, financing, marketing, and 
     other microenterprise development activities) to owners of 
     microenterprises and persons developing microenterprises; and
       (ii) providing general support (such as peer support and 
     self-esteem programs) to owners of microenterprises and 
     persons developing microenterprises.
       (D) Work supplementation programs, under which the State 
     may use part or all of the sums that would otherwise be 
     payable to participants in the program as transitional aid 
     under subtitle A for the purpose of providing and subsidizing 
     jobs for such participants as an alternative to the 
     transitional aid that would otherwise be so payable to them.
       (E) Innovative JOBS programs, including programs similar 
     to--
       (i) the program known as the `GAIN Program' that has been 
     operated by Riverside County, California, under Federal law 
     in effect immediately before the date this section first 
     applies to the State of California;
       (ii) the program known as `JOBS Plus' that has been 
     operated by the State of Oregon under Federal law in effect 
     immediately before the date this section first applies to the 
     State of Oregon; and
       (iii) the program known as `JOBS' that has been operated by 
     Kenosha County, Wisconsin, under Federal law in effect 
     immediately before the date this section first applies to the 
     State of Wisconsin.
       (F) Temporary subsidized job creation, which may include 
     workfare programs.
       (G) Education or training services.
       (H) Any other service which provides individuals with the 
     support and skills necessary to obtain and keep employment in 
     the private sector.
     For purposes of subparagraph (C), the term `microenterprise' 
     means a commercial enterprise which has 5 or fewer employees, 
     one or more of whom owns the enterprise.
       (5) WAGE plan.--The State agency shall develop a WAGE Plan 
     in accordance with subsection (b) with each program 
     participant.
       (6) Hours of participation requirement.--The State shall 
     provide that each participant in the program under this 
     section shall participate in activities in accordance with 
     this section for at least 20 hours per week (or, at the 
     State's option, a greater number of hours per week), 
     including job search in cases where the individual is not 
     employed in an unsubsidized job in the private sector.
       (7) Time limit.--A State may establish a time limit of any 
     duration for participation by an individual in the WAGE 
     program. A State shall not terminate any participant subject 
     to such time limit if the participant has complied with the 
     requirements set forth in the WAGE Plan established in 
     accordance with paragraph (5).
       (8) Child care services.--The State shall offer each 
     individual participating in the program child care services 
     (as determined by the State) if such individual requires 
     child care services in order to participate.
       (9) Nondisplacement.--The program shall comply with the 
     requirements of subsection (g).
       (10) Noncustodial parents.--
       (A) In general.--The State may provide services under the 
     program, on a voluntary or mandatory basis, to noncustodial 
     parents of needy children who are recipients of transitional 
     aid.
       (B) Participation rate.--Noncustodial parents who 
     participate in the WAGE program shall be treated as 
     participants for purposes of determining the participation 
     rate under section 1382.
       (b) WAGE Plan.--
       (1) In general.--On the basis of an initial assessment of 
     the skills, prior work experience, and employability of each 
     individual who the State requires to participate in the WAGE 
     program, the State agency shall, together with the 
     individual, develop a WAGE Plan, which--
       (A) sets forth an employment goal for the individual and 
     contains an individualized comprehensive plan developed by 
     the State agency with the participant for moving the 
     individual into the workforce;
       (B) provides that the participant shall spend at least 20 
     hours per week (or, at the option of the State, a greater 
     number of hours per week) in activities provided for in the 
     WAGE Plan, including job search in cases where the individual 
     is not employed in an unsubsidized job in the private sector;
       (C) sets forth the obligations of the individual, which may 
     include a requirement that the individual attend school, 
     maintain certain grades and attendance, keep school age 
     children of the individual in school, immunize children, 
     attend parenting and money management classes, or do other 
     things that will help the individual become and remain 
     employed in the private sector;
       (D) provides that the participant shall accept any bona 
     fide offer of unsubsidized full-time employment, unless the 
     participant has good cause for not doing so;
       (E) describes the child care and other social services and 
     assistance which the State will provide in order to allow the 
     individual to take full advantage of the activities under the 
     program operated in accordance with this section;
       (F) at the option of the State, provides that aid under the 
     transitional aid program is to be paid to the participant 
     based on the number of hours that the participant spends in 
     activities provided for in the agreement; and
       (G) at the option of the State, requires the participant to 
     undergo appropriate substance abuse treatment.
       (2) Timing.--The State agency shall comply with paragraph 
     (1) with respect to an individual--
       (A) within 90 days (or, at the option of the State, 180 
     days) after the effective date of this part, in the case of 
     an individual who, as of such effective date, is a recipient 
     of aid under the State plan approved under subtitle A; or
       (B) within 30 days (or, at the option of the State, 90 
     days) after the individual is determined to be eligible for 
     such aid, in the case of any other individual.
       (c) State Plans.--
       (1) In general.--Within 60 days after the date a State 
     submits to the Secretary a plan that provides for the 
     establishment and operation of a program that meets the 
     requirements of subsection (a), the Secretary shall approve 
     the plan.
       (2) Authority to extend deadline.--The 60-day deadline 
     established in paragraph (1) with respect to a State may be 
     extended in accordance with an agreement between the 
     Secretary and the State.
       (d) Annual Reports.--
       (1) Compliance with performance measures.--Each State that 
     operates a program under this section shall submit to the 
     Secretary annual reports that compare the achievements of the 
     program with the performance-based measures established under 
     subsection (e).
       (2) Compliance with participation rates.--Each State that 
     operates a program under this section for a fiscal year shall 
     submit to the Secretary a report on the participation rate 
     determined under section 1382 of the State for the fiscal 
     year.
       (e) Performance-Based Measures.--The Secretary shall, by 
     regulation, establish measures of the effectiveness of the 
     State's program established under this section in moving 
     recipients of transitional aid under the State plan approved 
     under subtitle A into full-time unsubsidized employment, 
     based on the performance of such programs.
       (f) Effect of Failure To Meet Participation Rates.--
       (1) In general.--If a State fails to achieve the 
     participation rate required by section 1382(a) for the fiscal 
     year, the Secretary may make recommendations for changes in 
     the program. The State may elect to follow such 
     recommendations, and shall demonstrate to the Secretary how 
     the State will achieve the required participation rates.
       (2) Second consecutive failure.--Notwithstanding paragraph 
     (1), if the State has failed to achieve the participation 
     rates required by section 1382(a) for 2 consecutive fiscal 
     years, the Secretary may require the State to make changes in 
     the State program established under this section.
       (g) No Displacement.--No work assignment under the program 
     shall result in--
       (1) the displacement of any currently employed worker or 
     position (including partial displacement such as a reduction 
     in the hours of nonovertime work, wages, or employment 
     benefits), or result in the impairment of existing contracts 
     for services or collective bargaining agreements;
       (2) the employment or assignment of a participant of the 
     filling of a position when--
       (A) any other individual is on layoff from the same or any 
     equivalent position, or
       (B) the employer has terminated the employment of any 
     regular employee or otherwise reduced its workforce with the 
     effect of filling the vacancy so created with a participant 
     subsidized under the program; or
       (3) any infringement of the promotional opportunities of 
     any currently employed individual.
     No participant may be assigned under work supplementation 
     programs or under workfare programs to fill any established 
     unfilled position vacancy.

     SEC. 1392. SPECIAL PROVISIONS RELATING TO INDIAN TRIBES AND 
                   ALASKA NATIVE ORGANIZATIONS.

       (a) Special Provisions Relating to Tribes and Native 
     Organizations.--
       (1) In general.--
       (A) WAGE programs.--An Indian tribe or Alaska Native 
     organization may apply to the Secretary to conduct a WAGE 
     program under this part. An application to conduct a WAGE 
     program in a fiscal year shall be submitted not later than 
     July 1 of the preceding fiscal year. Upon approval of the 
     application, payment in the amount determined in accordance 
     with section 1382(d) shall be made directly to the tribe or 
     organization involved.
       (B) Waiver of certain requirements.--The Secretary may 
     waive any requirements of this part with respect to a WAGE 
     program conducted under this part by an Indian tribe or 
     Alaska Native organization as the Secretary determines to be 
     appropriate.
       (C) Termination.--The WAGE program conducted by any Indian 
     tribe or Alaska Native organization may be terminated 
     voluntarily by such tribe or organization or may be 
     terminated by the Secretary upon a finding that such program 
     is not being conducted in substantial conformity with the 
     terms of the application approved under subparagraph (A). If 
     a WAGE program of an Indian tribe or Alaska Native 
     organization is terminated, such tribe or organization shall 
     not be eligible to submit a new application under 
     subparagraph (A) with respect to any year before the 6th year 
     following such termination.

[[Page S 12995]]

       (D) Consortium of tribes.--An Indian tribe may enter into 
     an agreement with other Indian tribes for the provision of 
     WAGE program services by a tribal consortium providing for 
     centralized administration of WAGE program services for the 
     region served by the Indian tribes so agreeing. In the case 
     of such an agreement, a single application under this part 
     may be submitted by the tribal consortium and the consortium 
     shall be entitled to receive an amount equal to the aggregate 
     amount that all of the tribes in the consortium would have 
     been entitled to receive if each tribe applied separately. In 
     any case in which an application is submitted by a tribal 
     consortium, the approval of each Indian tribe included in the 
     consortium shall be a prerequisite to the distribution of 
     funds to the tribal consortium.
       (2) Determination of exempt individual.--An application 
     under this section shall provide that upon approval the 
     Indian tribe or Alaska Native organization, as the case may 
     be, will be responsible for determining whether an individual 
     (within the service area of the tribe or organization) is 
     exempt under section 1302(a)(11).
       (b) Other Requirements.--
       (1) Child care.--Each Indian tribe and Alaska Native 
     organization submitting an application under this section may 
     also submit to the Secretary (as a part of the application) a 
     description of the program that the tribe or organization 
     will implement to meet the child care needs of WAGE program 
     participants and may request funds to provide such child 
     care. The Secretary may waive any other requirement of this 
     part with respect to child care services as the Secretary 
     determines inappropriate for such child care program, other 
     than the requirement described in section 1391(a)(8).
       (2) Payment for child care.--The Secretary shall adjust the 
     payment for a fiscal year under section 1381(d) to reflect 
     the cost of child care for the number of required 
     participants in need of such care in the preceding fiscal 
     year (and other recipients in need of such care) in the 
     tribe's or Alaska Native organization's service area, subject 
     to the limitation on total funding for tribes and Alaska 
     Native organizations.
       (3) Data collection.--The Secretary shall establish data 
     collection and reporting requirements with respect to child 
     care services implemented under this subsection.
       (c) Definitions.--For purposes of this section--
       (1) Tribal consortium.--The term `tribal consortium' means 
     any group, association, partnership, corporation, or other 
     legal entity which is controlled, sanctioned, or chartered by 
     the governing body of more than 1 Indian tribe.
       (2) Indian tribe.--The term `Indian tribe' means any tribe, 
     band, nation, or other organized group or community of 
     Indians that--
       (A) is recognized as eligible for the special programs and 
     services provided by the United States to Indians because of 
     their status as Indians; and
       (B) for which a reservation exists.

     For purposes of subparagraph (B), a reservation includes 
     Indian reservations, public domain Indian allotments, and 
     former Indian reservations in Oklahoma.
       (3) Alaska native organization.--
       (A) In general.--The term `Alaska Native organization' 
     means any organized group of Alaska Natives eligible to 
     operate a Federal program under Public Law 93-638 or such 
     group's designee.
       (B) Boundaries.--The boundaries of an Alaska Native 
     organization shall be those of the geographical region, 
     established pursuant to section 7(a) of the Alaska Native 
     Claims Settlement Act, within which the Alaska Native 
     organization is located (without regard to the ownership of 
     the land within the boundaries).
       (C) Limits on applications.--The Secretary may approve only 
     one application from an Alaska Native organization for each 
     of the 12 geographical regions established pursuant to 
     section 7(a) of the Alaska Native Claims Settlement Act.

     Nothing in this paragraph shall be construed to grant or 
     defer any status or powers other than those expressly granted 
     in this paragraph or to validate or invalidate any claim by 
     Alaska Natives of sovereign authority over lands or people.
                  Subtitle C--Miscellaneous Provisions

     SEC. 1395. DEFINITIONS.

       For purposes of this title:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (2) State.--the term ``State'' has the meaning given such 
     term by section 402(c)(4) of the Social Security Act.

     SEC. 1396. REGULATIONS.

       The Secretary shall prescribe such regulations as may be 
     necessary to implement this title.

     SEC. 1397. APPLICABILITY TO STATES.

       (a) State Option To Accelerate Applicability.--If a State 
     formally notifies the Secretary that the State desires to 
     accelerate the applicability to the State of this title, this 
     title shall apply to the State on and after such earlier date 
     as the State may select.
       (b) State Option To Delay Applicability Until Waivers 
     Expire.--This title shall not apply to a State with respect 
     to which there is in effect a waiver issued under section 
     1115 of the Social Security Act for the State program 
     established under part F of title IV of such Act until the 
     waiver expires, if the State formally notifies the Secretary 
     that the State desires to so delay such effective date.
       (c) Authority of the Secretary of Health and Human Services 
     To Delay Applicability to a State.--If a State formally 
     notifies the Secretary that the State desires to delay the 
     applicability to the State of this title, this title shall 
     apply to the State on and after any later date agreed upon by 
     the Secretary and the State.
                                 ______


                       CONRAD AMENDMENT NO. 2530

  Mr. MOYNIHAN (for Mr. Conrad) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 50, strike line 6 and all that follows through page 
     51, line 11, and insert the following:
       ``(d) Requirement That Teenage Parents Live in Adult-
     supervised Settings.--
       ``(1) In general.--
       ``(A) Requirement.--Except as provided in paragraph (2), if 
     a State provides assistance under the State program funded 
     under this part to an individual described in subparagraph 
     (B), such individual may only receive assistance under the 
     program if such individual and the child of the individual 
     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.
       ``(B) Individual described.--For purposes of subparagraph 
     (A), an individual described in this subparagraph is an 
     individual who is--
       ``(i) under the age of 18; and
       ``(ii) not married and has a minor child in his or her 
     care.
       ``(2) Exception.--
       ``(A) Provision of, or assistance in locating, adult-
     supervised living arrangement.--In the case of an individual 
     who is described in subparagraph (B), the State agency shall 
     provide, or assist such individual in locating, an 
     appropriate adult-supervised supportive living arrangement, 
     including a second chance home, another responsible adult, or 
     a foster home, taking into consideration the needs and 
     concerns of the such individual, unless the State agency 
     determines that the individual's current living arrangement 
     is appropriate, and thereafter shall require that such parent 
     and the child of such parent 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).
       ``(B) Individual described.--For purposes of subparagraph 
     (A), an individual is described in this subparagraph if the 
     individual is described in paragraph (1)(B) and--
       ``(ii) such individual has no parent or legal guardian of 
     his or her own who is living or whose whereabouts are known;
       ``(iii) no living parent or legal guardian of such 
     individual allows the individual to live in the home of such 
     parent or guardian;
       ``(iv) the State agency determines that the physical or 
     emotional health of such individual or any minor child of the 
     individual would be jeopardized if such individual and such 
     minor child lived in the same residence with such 
     individual's own parent or legal guardian; or
       ``(v) the State agency otherwise determines that it is in 
     the best interest of the minor child to waive the requirement 
     of paragraph (1) with respect to such individual.
       ``(C) Second-chance home.--For purposes of this paragraph, 
     the term `second-chance home' means an entity that provides 
     individuals described in subparagraph (B) with a supportive 
     and supervised living arrangement in which such individuals 
     are required to learn parenting skills, including child 
     development, family budgeting, health and nutrition, and 
     other skills to promote their long-term economic independence 
     and the well-being of their children.
       ``(3) Assistance to states in providing or locating adult-
     supervised supportive living arrangements for unmarried 
     teenage parents.--
       ``(A) In general.--For each of fiscal years 1998 through 
     2002, each State that provides assistance under the State 
     program to individuals described in paragraph (1)(B) shall be 
     entitled to receive a grant in an amount determined under 
     subparagraph (B) for the purpose of providing or locating 
     adult-supervised supportive living arrangements for 
     individuals described in paragraph (1)(B) in accordance with 
     this subsection.
       ``(B) Amount determined.--
       ``(i) In general.--The amount determined under this 
     subparagraph is an amount that bears the same ratio to the 
     amount specified under clause (ii) as the amount of the State 
     family assistance grant for the State for such fiscal year 
     (described in section 403(a)(2)) bears to the amount 
     appropriated for such fiscal year in accordance with section 
     403(a)(4)(A).
       ``(ii) Amount specified.--The amount specified in this 
     subparagraph is--

       ``(I) for fiscal year 1998, $20,000,000;
       ``(II) for fiscal year 1999, $40,000,000; and
       ``(III) for each of fiscal years 2000, 2001, and 2002, 
     $80,000,000.
       ``(C) Assistance to states in providing or locating adult-
     supervised supportive living arrangements for unmarried 
     teenage parents.--There are authorized to be appropriated and 
     there are appropriated for fiscal years 1998, 1999, and 2000 
     such sums as may be necessary for the purpose of paying 
     grants 

[[Page S 12996]]
     to States in accordance with the provisions of this paragraph.
       ``(e) Requirement That Teenage Parents Attend High School 
     or Other Equivalent Training Program.--If a State provides 
     assistance under the State program funded under this part to 
     an individual described in subsection (d)(1)(B) who has not 
     successfully completed a high-school education (or its 
     equivalent) and whose minor child is at least 12 weeks of 
     age, the State shall not provide such individual with 
     assistance under the program (or, at the option of the State, 
     shall provide a reduced level of such assistance) if the 
     individual does not participate in--
       ``(1) educational activities directed toward the attainment 
     of a high school diploma or its equivalent; or
       ``(2) an alternative educational or training program that 
     has been approved by the State.
       On page 51, strike ``(e)'' and insert ``(f)''.
                                 ______


                       CONRAD AMENDMENT NO. 2531

  Mr. MOYNIHAN (for Mr. Conrad) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 31, line 23, strike ``and''.
       On page 32, line 10, strike ``divided by'' and insert 
     ``and''.
       On page 32, between lines 10 and 11, insert the following:
       ``(V) the number of all families that became ineligible to 
     receive assistance under the State program during the 
     previous 6-month period as a result of section 405(b) that 
     include an adult who is engaged in work (in accordance with 
     subsection (c)) for the month; divided by
       On page 32, strike lines 11 through 15, and insert the 
     following:
       ``(ii) the sum of--

       ``(I) the total number of all families receiving assistance 
     under the State program funded under this part during the 
     month that include an adult; and
       ``(II) the number of all families that became ineligible to 
     receive assistance under the State program during the 
     previous 6-month period as a result of section 405(b) that do 
     not include an adult who is engaged in work (in accordance 
     with subsection (c)) for the month.

                                 ______


                       CONRAD AMENDMENT NO. 2532

  Mr. MOYNIHAN (for Mr. Conrad) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:
     SEC. 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Work and 
     Gainful Employment Act''.
       (b) Reference.--Except as otherwise specifically provided, 
     wherever in this Act an amendment is expressed in terms of an 
     amendment to or repeal of a section or other provision, the 
     reference shall be considered to be made to that section or 
     other provision of the Social Security Act.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                   TITLE I--TRANSITIONAL AID PROGRAM

Sec. 101. Transitional aid program.

          TITLE II--WORK AND GAINFUL EMPLOYMENT (WAGE) PROGRAM

Sec. 201. Wage program.
Sec. 202. Regulations.
Sec. 203. Applicability to States.

               TITLE III--CHILD CARE FOR WORKING PARENTS

Sec. 301. Purpose.

 Subtitle A--Amendments to the Child Care and Development Block Grant 
                              Act of 1990

Sec. 311. Amendments to the child care and development block grant act 
              of 1990.
Sec. 312. Sense of the Senate.
Sec. 313. Repeals and technical and conforming amendments.

                     Subtitle B--At-Risk Child Care

Sec. 321. Provision of child care to certain low-income families.
Sec. 322. Use of funds.
Sec. 323. Payments to States.
Sec. 324. State defined.
Sec. 325. Appropriations.

                 TITLE IV--CHILD SUPPORT RESPONSIBILITY

Sec. 400. Short title.

    Subtitle A--Improvements to the Child Support Collection System

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

Sec. 401. State obligation to provide paternity establishment and child 
              support enforcement services.
Sec. 402. Distribution of payments.
Sec. 403. Rights to notification and hearings.
Sec. 404. Privacy safeguards.
Sec. 405. Cooperation requirements and good cause exceptions.

              Part II--Program Administration and Funding

Sec. 411. Federal matching payments.
Sec. 412. Performance-based incentives and penalties.
Sec. 413. Federal and State reviews and audits.
Sec. 414. Required reporting procedures.
Sec. 415. Automated data processing requirements.
Sec. 416. Director of child support enforcement program; staffing 
              study.
Sec. 417. Funding for secretarial assistance to State programs.
Sec. 418. Data collection and reports by the Secretary.

                   Part III--Locate and Case Tracking

Sec. 421. Central State and case registry.
Sec. 422. Centralized collection and disbursement of support payments.
Sec. 423. State directory of new hires.
Sec. 424. Amendments concerning income withholding.
Sec. 425. Locator information from interstate networks.
Sec. 426. Expansion of the Federal parent locator service.
Sec. 427. Use of social security numbers.

           Part IV--Streamlining and Uniformity of Procedures

Sec. 431. Adoption of uniform State laws.
Sec. 432. Improvements to full faith and credit for child support 
              orders.
Sec. 433. State laws providing expedited procedures.
Sec. 434. Administrative enforcement in interstate cases.
Sec. 435. Use of forms in interstate enforcement.

                    Part V--Paternity Establishment

Sec. 441. State laws concerning paternity establishment.
Sec. 442. Outreach for voluntary paternity establishment.

       Part VI--Establishment and Modification of Support Orders

Sec. 451. National child support guidelines commission.
Sec. 452. Simplified process for review and adjustment of child support 
              orders.

                Part VII--Enforcement of Support Orders

Sec. 461. Federal income tax refund offset.
Sec. 462. Internal revenue service collection of arrearages.
Sec. 463. Authority to collect support from Federal employees.
Sec. 464. Enforcement of child support obligations of members of the 
              armed forces.
Sec. 465. Motor vehicle liens.
Sec. 466. Voiding of fraudulent transfers.
Sec. 467. State law authorizing suspension of licenses.
Sec. 468. Reporting arrearages to credit bureaus.
Sec. 469. Extended statute of limitation for collection of arrearages.
Sec. 470. Charges for arrearages.
Sec. 471. Denial of passports for nonpayment of child support.
Sec. 472. International child support enforcement.

                       Part VIII--Medical Support

Sec. 481. Technical correction to ERISA definition of medical child 
              support order.

                Part IX--Access and Visitation Programs

Sec. 491. Grants to States for access and visitation programs.

   Subtitle B--Child Support Enforcement and Assurance Demonstrations

Sec. 494. Child support enforcement and assurance demonstrations.

   Subtitle C--Demonstration Projects To Provide Services to Certain 
                          Noncustodial Parents

Sec. 495. Establishment of demonstration projects for providing 
              services to certain noncustodial parents.

                        Subtitle D--Severability

Sec. 496. Severability.

                     TITLE V--TRANSITIONAL MEDICAID

Sec. 501. State option to extend transitional medicaid benefits.

                 TITLE VI--TEENAGE PREGNANCY PREVENTION

Sec. 601. Supervised living arrangements for minors.
Sec. 602. Reinforcing families.
Sec. 603. Required completion of high school or other training for 
              teenage parents.
Sec. 604. Targeting youth at risk of teenage pregnancy.
Sec. 605. National Clearinghouse on Teenage Pregnancy.
Sec. 606. Denial of Federal housing benefits to minors who bear 
              children out-of-wedlock.
Sec. 607. National campaign against teenage pregnancy.

   TITLE VII--CHILDREN'S ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME

Sec. 701. Definition and eligibility rules.
Sec. 702. Eligibility redeterminations and continuing disability 
              reviews.
Sec. 703. Additional accountability requirements.

            TITLE VIII--FINANCING AND FOOD ASSISTANCE REFORM

                    Subtitle A--Treatment of Aliens

Sec. 801. Uniform alien eligibility criteria for public assistance 
              programs.
Sec. 802. Extension of deeming of income and resources under 
              transitional aid, SSI, and food stamp programs.
Sec. 803. Requirements for sponsor's affidavit of support.
Sec. 804. Extending requirement for affidavits of support to family-
              related and diversity immigrants.

[[Page S 12997]]


                 Subtitle B--Food Assistance Provisions

Sec. 821. Mandatory claims collection methods.
Sec. 822. Reduction of basic benefit level.
Sec. 823. Prorating benefits after interruptions in participation.
Sec. 824. Work requirement for able-bodied recipients.
Sec. 825. Extending current claims retention rates.
Sec. 826. Two-year freeze of standard deduction.
Sec. 827. Nutrition assistance for Puerto Rico.
Sec. 828. Repeal of special rule for persons who do not purchase and 
              prepare food separately.
Sec. 829. Earnings of certain high school students counted as income.
Sec. 830. Energy assistance counted as income.
Sec. 831. Vendor payments for transitional housing counted as income.
Sec. 832. Denial of food stamp benefits for 10 years to certain 
              individuals found to have fraudulently misrepresented 
              residence to obtain benefits.
Sec. 833. Disqualification relating to child support arrears.
Sec. 834. Limiting adjustment of minimum benefit.
Sec. 835. Penalty for failure to comply with work requirements of other 
              programs.
Sec. 836. Resumption of discretionary funding for nutrition education 
              and training program.
Sec. 837. Improvement of child and adult care food program operated 
              under the national school lunch act.

                Subtitle C--Supplemental Security Income

Sec. 841. Verification of eligibility for certain SSI disability 
              benefits.
Sec. 842. Nonpayment of SSI disability benefits to substance abusers.

            TITLE IX--LEGISLATIVE PROPOSALS; EFFECTIVE DATE

Sec. 901. Secretarial submission.
Sec. 902. Effective date.

                   TITLE I--TRANSITIONAL AID PROGRAM

     SEC. 101. TRANSITIONAL AID PROGRAM.

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

                   ``PART A--TRANSITIONAL AID PROGRAM

     ``SEC. 401. PURPOSE AND APPROPRIATION.

       ``(a) Purpose.--It is the purpose of this part to provide a 
     program of transitional aid to families with needy children 
     to enhance the well-being of such needy children, and to 
     enable parents of children in such families to obtain and 
     retain work and to become self-sufficient.
       ``(b) Appropriations.--There is hereby authorized to be 
     appropriated and are appropriated for each fiscal year such 
     sums as may be necessary to carry out the purposes of this 
     part. The sums made available under this subsection shall be 
     used for making payments to States which have submitted, and 
     had approved by the Secretary, State plans for providing a 
     program of transitional aid.

     ``SEC. 402. STATE PLANS FOR, AND GENERAL REQUIREMENTS OF, 
                   TRANSITIONAL AID PROGRAM.

       ``(a) State Plans.--A State plan for a transitional aid 
     program shall meet the requirements of the following 
     paragraphs:
       ``(1) Election of options in program design.--The State 
     plan shall describe the State's policies regarding 
     eligibility, services, assistance amounts, and program 
     requirements, including a description of:
       ``(A) The support and benefits (including benefit levels) 
     provided to individuals eligible to participate and whether 
     such support is in the form of wages in subsidized public or 
     nonprofit employment or direct subsidies to employers.
       ``(B) The extent to which earned or unearned income is 
     disregarded in determining eligibility for, and amount of, 
     assistance.
       ``(C) The State's policy for determining the extent to 
     which child support received on behalf of a member of the 
     family is disregarded in determining eligibility for, and the 
     amount of, assistance.
       ``(D) The treatment of earnings of a child living in the 
     home.
       ``(E) 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.
       ``(F) Any restrictions the State elects to impose relating 
     to eligibility for assistance of two-parent families.
       ``(G) The criteria for participating in the program 
     including requirements that a family must comply with as a 
     condition of receiving aid, such as school attendance, 
     participation in appropriate preemployment activities, and 
     receipt of appropriate childhood immunizations. The plan 
     shall specify whether the State elects to provide incentives 
     for compliance with the requirements, sanctions for 
     noncompliance, or a combination of incentives and sanctions 
     that the State determines appropriate.
       ``(H) The sanctions imposed on individuals who fail to 
     comply with the State's program requirements without good 
     cause, including the amount and length of time of such 
     sanctions,
      provided that if the sanction results in complete 
     elimination of aid to the family, the State plan shall 
     describe the procedures used to ensure the well-being of 
     children.
       ``(I) Whether payment is made or denied for a child 
     conceived during a period in which such child's parent was 
     receiving aid under the program.
       ``(J) Whether the State elects to establish a time limit 
     after which an individual must comply with continuous or 
     additional work requirements under part F as a condition for 
     receiving aid under the State plan approved under this part.
       ``(2) Parental responsibility agreements and wage plans.--
       ``(A) In general.--The State plan shall provide that the 
     State require the parent or caretaker relative to enter 
     into--
       ``(i) a Parental Responsibility Agreement in accordance 
     with subparagraph (B), or
       ``(ii) a Parental Responsibility Agreement in accordance 
     with subparagraph (B) and a Wage Plan in accordance with 
     section 491(b) if such parent or caretaker relative is 
     required to participate in the WAGE program.
       ``(B) Description of parental responsibility agreement.--A 
     Parental Responsibility Agreement is a statement signed by 
     the applicant for aid that--
       ``(i) specifies that the transitional aid program is a 
     privilege,
       ``(ii) the transitional aid program is a transitional 
     program to move recipients into work and self-sufficiency, 
     and
       ``(iii) the individual must abide by any requirements of 
     the State or risk forfeiting eligibility for transitional 
     aid.
       ``(3) Statewide plan.--The State plan shall be in effect in 
     all political subdivisions of the State. If such plan is not 
     administered uniformly throughout the State, the plan shall 
     describe the variations.
       ``(4) General eligibility requirement.--
       ``(A) In general.--The State plan shall ensure that 
     transitional aid is provided to all families with needy 
     children and that such aid is furnished with reasonable 
     promptness to individuals found eligible under the State 
     plan. In providing such assistance, States will take into 
     account the income and needs of a parent of a needy child if 
     the parent is living in the same home as the child.
       ``(B) Needy child.--For purposes of subparagraph (A), a 
     needy child shall be determined by the State, but shall be a 
     child who--
       ``(i) is under the age of 18, or
       ``(ii) at the option of the State, under the age of 19 and 
     a full-time student in a secondary school (or in the 
     equivalent level of vocational or technical training).
       ``(C) Pregnant woman.--At the option of the State, the 
     State may provide transitional aid to an individual who does 
     not have a needy child if such individual is pregnant, and 
     such transitional aid is provided--
       ``(i) in order to meet the needs of the individual 
     occasioned by or resulting from her pregnancy, and
       ``(ii) not more than 3 months before and after the date the 
     woman's child is expected to be born.
       ``(D) Persons other than parents.--For purposes of this 
     paragraph, a State may provide that the following individuals 
     shall constitute a family with a needy child if such 
     individuals are living in the same home as the child:
       ``(i) Any relative or legal guardian of the child.
       ``(ii) Any person who participates in the Food Stamp 
     program with the child.
       ``(iii) Any other person who provides--

       ``(I) care for an incapacitated family member (which, for 
     purposes of this subparagraph only, may include a child 
     receiving supplemental security income benefits under title 
     XVI; or
       ``(II) child care to enable a caretaker relative to work 
     outside the home or to participate in the WAGE program.

       ``(5) Child care services.--The State plan shall provide 
     that no individual shall be sanctioned for failure to comply 
     with the State's WAGE program requirements if such individual 
     needs child care assistance in order to participate, and the 
     State fails to provide such assistance.
       ``(6) 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, 
     unless the State has established an alternative system under 
     section 411 to prevent fraud and abuse.
       ``(7) Alien eligibility.--The State plan shall provide that 
     in order for an individual to be eligible for transitional 
     aid under this part, the individual shall be--
       ``(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 aid under this part by reason of section 
     210(f) or 245A(h) of the Immigration and Nationality Act (8 
     U.S.C. 1160(f) or 1255a(h)) or any other provision of law.
       ``(8) Detection of fraud.--
       ``(A) In general.--The State plan shall provide (in 
     accordance with regulations issued by the Secretary) for 
     appropriate measures to detect fraudulent applications for 
     transitional aid to families with needy children before 
     establishing eligibility for such aid.
       ``(B) Description of fraud control program.--If the State 
     has elected to establish and operate a fraud control program 
     under section 411, the State shall submit to the 

[[Page S 12998]]
     Secretary (with such revisions as may from time to time be necessary) a 
     description of such program and will operate such program in 
     full compliance with such section 411.
       ``(9) Participation in child support enforcement.--The 
     State plan shall provide--
       ``(A) that the State has in effect a plan approved under 
     part D and operates a child support enforcement program in 
     substantial compliance with such plan, and
       ``(B) that, as a condition of eligibility for aid, each 
     applicant or recipient will be required (subject to 
     subparagraph (D))--
       ``(i) to assign the State any rights to support from any 
     other person such applicant may have in such applicant's own 
     behalf or in behalf of any other family member for whom the 
     applicant is applying for or receiving aid; and
       ``(ii) to cooperate with the State--

       ``(I) in establishing the paternity of a child born out of 
     wedlock with respect to whom aid is claimed, and
       ``(II) in obtaining support payments for such applicant and 
     for a child with respect to whom such aid is claimed;

       ``(C) that the State agency will immediately refer each 
     applicant requiring paternity establishment, award 
     establishment, or child support enforcement services to the 
     State agency administering the program under part D;
       ``(D) that an individual shall be required to cooperate 
     with the State, as provided under subparagraph (B), unless 
     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 child on whose behalf 
     aid is claimed to the satisfaction of the State agency 
     administering the program under part D, as determined in 
     accordance with section 454(26);
       ``(E) that--
       ``(i) (except as provided in clause (ii)) an applicant 
     requiring services provided under part D shall not be 
     eligible for any aid under this part until such applicant--

       ``(I) has furnished to the agency administering the State 
     plan under part D the information specified in section 
     454(26)(E); or
       ``(II) has been determined by such agency to have good 
     cause not to cooperate; and

       ``(ii) that the provisions of clause (i) shall not apply--

       ``(I) if the agency specified in clause (i) has not within 
     10 days after such individual was referred to such agency, 
     provided the notification required by section 
     454(26)(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; and

       ``(F) that, if the relative with whom a child is living is 
     found to be ineligible because of failure to comply with the 
     requirements of subparagraph (B), the State may authorize 
     protective payments as provided for in section 405.
       ``(10) Automated data processing system.--The State plan 
     may, at the option of the State, provide for the 
     establishment and operation, in accordance with an (initial 
     and annually updated) advance automated data processing 
     planning document approved under subsection (c) of an 
     automated statewide management information system designed 
     effectively and efficiently, to assist management in the 
     administration of the State plan for transitional aid to 
     families with needy children approved under this part, so 
     as--
       ``(A) to control and account for--
       ``(i) all the factors in the total eligibility 
     determination process under such plan for aid (including but 
     not limited to (I) identifiable correlation factors (such as 
     social security numbers, names, dates of birth, home 
     addresses, and mailing addresses (including postal ZIP codes) 
     of all applicants and recipients of such aid and the relative 
     with whom any child who is such an applicant or recipient is 
     living) to assure sufficient compatibility among the systems 
     of different jurisdictions to permit periodic screening to 
     determine whether an individual is or has been receiving 
     benefits from more than one jurisdiction, (II) checking 
     records of applicants and recipients of such aid on a 
     periodic basis with other agencies, both intra- and inter-
     State, for determination and verification of eligibility and 
     payment pursuant to requirements imposed by other provisions 
     of this title),
       ``(ii) the costs, quality, and delivery of funds and 
     services furnished to applicants for and recipients of such 
     aid;
       ``(B) to notify the appropriate officials of child support, 
     food stamp, social service, and medical assistance programs 
     approved under title XIX whenever the recipient becomes 
     ineligible or the amount of aid or services is changed; and
       ``(C) to provide for security against unauthorized access 
     to, or use of, the data in such system.
       ``(11) Participation in wage.--The State plan shall 
     provide--
       ``(A) that the State operate a WAGE program in accordance 
     with part F, and
       ``(B) a description of individuals required to participate 
     in the WAGE program in the State; such individuals may not 
     include the following:
       ``(i) Parents of children under 12 weeks of age or, at the 
     State's option, up to 1 year.
       ``(ii) Individuals who are ill or incapacitated, as defined 
     by the State.
       ``(iii) Individuals who are needed in the home on a full-
     time basis to care for a disabled child or other household 
     member.
       ``(iv) Individuals who are over 60 years of age.
       ``(v) Individuals under age 16 other than teenage parents.
       ``(12) Report of child abuse.--The State plan shall provide 
     that the State agency will--
       ``(A) 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 aid under this part under circumstances 
     which indicate that the child's health or welfare is 
     threatened thereby; and
       ``(B) provide such information with respect to a situation 
     described in subparagraph (A) as the State agency may have.
       ``(b) Approval of State Plans.--
       ``(1) In general.--Not later than 60 days after the date a 
     State submits to the Secretary a plan that provides for the 
     establishment and operation of a program or an amendment to 
     such plan that meets the requirements of subsection (a), the 
     Secretary shall approve the plan.
       ``(2) Authority to extend deadline.--The 60-day deadline 
     established in paragraph (1) with respect to a State may be 
     extended in accordance with an agreement between the 
     Secretary and the State.
       ``(c) Approval of Automatic Data Processing Planning 
     Document; Review of Management Information Systems; Failure 
     To Comply; Reduction of Payments.--
       ``(1) Approval of automated data processing planning 
     document.--The Secretary shall not approve the initial and 
     annually updated advance automated data processing planning 
     document, referred to in paragraph (2), unless the Secretary 
     finds that such document, when implemented, will generally 
     carry out the objectives of the statewide management system 
     referred to in such paragraph, and such document--
       ``(A) provides for the conduct of, and reflects the results 
     of, requirements analysis studies, which include 
     consideration of the program mission, functions, 
     organization, services, constraints, and current support, of, 
     in, or relating to, such system,
       ``(B) contains a description of the proposed statewide 
     management system, including a description of information 
     flows, input data, and output reports and uses,
       ``(C) sets forth the security and interface requirements to 
     be employed in such statewide management system,
       ``(D) describes the projected resource requirements for 
     staff and other needs, and the resources available or 
     expected to be available to meet such requirements,
       ``(E) includes cost-benefit analyses of each alternative 
     management system, data processing services and equipment, 
     and a cost allocation plan containing the basis for rates, 
     both direct and indirect, to be in effect under such 
     statewide management system,
       ``(F) contains an implementation plan with charts of 
     development events, testing descriptions, proposed acceptance 
     criteria, and backup and fallback procedures to handle 
     possible failure of contingencies, and
       ``(G) contains a summary of proposed improvements of such 
     statewide management system in terms of qualitative and 
     quantitative benefits.
       ``(2) Secretarial review.--
       ``(A) In general.--The Secretary shall, on a continuing 
     basis, review, assess, and inspect the planning, design, and 
     operation of, statewide management information systems 
     referred to in section 403(a)(2), with a view to determining 
     whether, and to what extent, such systems meet and continue 
     to meet requirements imposed under such section and the 
     conditions specified under paragraph (10) of subsection (a).
       ``(B) Suspension of approval.--If the Secretary finds with 
     respect to any statewide management information system 
     referred to in section 403(a)(2) that there is a failure 
     substantially to comply with criteria, requirements, and 
     other undertakings, prescribed by the advance automated data 
     processing planning document previously approved by the 
     Secretary with respect to such system, then the Secretary 
     shall suspend his approval of such document until there is no 
     longer any such failure of such system to comply with such 
     criteria, requirements, and other undertakings so prescribed.
       ``(C) Reduction of payments under section 403.--If the 
     Secretary determines that such a system has not been 
     implemented by the State by the date specified for 
     implementation in the State's advance automated data 
     processing planning document, then the Secretary shall reduce 
     payments to such State, in accordance with section 403(b), in 
     an amount equal to 40 percent of the expenditures referred to 
     in section 403(a)(2) with respect to which payments were made 
     to the State under section 403(a)(2). The Secretary may 
     extend the deadline for implementation if the State 
     demonstrates to the satisfaction of the Secretary that the 
     State cannot implement such system by the date specified in 
     such planning document due to circumstances beyond the 
     State's control.
       ``(d) Temporary Disqualification of Certain Newly Legalized 
     Aliens.--For temporary disqualification of certain newly 
     legalized aliens from receiving transitional aid to families 
     with needy children, see subsection (h) of section 245A of 
     the Immigration and Nationality Act (8 U.S.C. 1255a), 
     subsection (f) of section 210 of such Act (8 U.S.C. 1160), 
     and subsection (d)(7) of section 210A of such Act (8 U.S.C. 
     1161).

[[Page S 12999]]

       ``(e) Impact on Medicaid Benefits of Noncompliance With 
     Certain TAP and WAGE Requirements.--If a family becomes 
     ineligible to receive transitional aid under the State 
     transitional aid program because an individual in such family 
     fails to comply with the requirements of this part--
       ``(1) a needy child of such family shall remain eligible 
     for medical assistance under the State's plan approved under 
     title XIX, and
       ``(2) the family shall be appropriately notified of such 
     extension (in the State agency's notice to the family of the 
     termination of its eligibility for such aid) as required by 
     section 1925(a)(2).

     ``SEC. 403. PAYMENTS TO STATES.

       ``(a) Computation of Amounts.--From the sums appropriated 
     therefor, the Secretary of the Treasury shall pay to each 
     State which has an approved plan for a transitional aid 
     program, for each quarter, beginning with the quarter 
     commencing October 1, 1995, an amount equal to--
       ``(1) the Federal medical assistance percentage (as defined 
     in section 1905(b)) of the expenditures by the State for 
     benefits and assistance under such plan, and
       ``(2) 50 percent of so much of the sums expended during 
     such quarter as are attributable to the planning, design, 
     development, or installation of
      such statewide mechanized claims processing and information 
     retrieval systems as--
       ``(A) meet the conditions of section 402(a)(10), and
       ``(B) the Secretary determines are likely to provide more 
     efficient, economical, and effective administration of the 
     plan and to be compatible with the claims processing and 
     information retrieval systems utilized in the administration 
     of State plans approved under title XIX, and State programs 
     with respect to which there is Federal financial 
     participation under title XX.
       ``(b) Method of Computation and Payment.--The method of 
     computing and paying such amounts shall be as follows:
       ``(1) Estimates.--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) of this section, 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) Adjustments for prior quarters.--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 finds that the Secretary's estimate 
     for any prior quarter was greater or less than the amount 
     which should have been paid to the State for such quarter,
       ``(B) reduced by a sum equivalent to the pro rata share to 
     which the United States 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 transitional 
     aid to families with needy children furnished under the State 
     plan, and
       ``(C) reduced by such amount as is necessary to provide the 
     `appropriate reimbursement of 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.
       ``(3) Payment of the amount certified.--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.
       ``(c) Uniform Reporting Requirements.--In order to assist 
     in obtaining the information needed to carry out subsection 
     (b)(1) and otherwise to perform the Secretary's duties under 
     this part, the Secretary shall establish uniform reporting 
     requirements under which each State will be required to 
     furnish data regarding--
       ``(1) the monthly number of families assisted under this 
     part;
       ``(2) the types of such families;
       ``(3) the monthly number of children assisted under this 
     part;
       ``(4) the amounts expended to serve such families and 
     children;
       ``(5) the length of time for which such families and 
     children are assisted;
       ``(6) the number of families and children receiving child 
     care assistance;
       ``(7) the number of families receiving transitional 
     medicaid assistance; and
       ``(8) in what form the amounts of assistance are being 
     spent (the amount spent on wage subsidies compared to the 
     amount spent on cash benefits).
       ``(d) Bonus Amount.--
       ``(1) In general.--For fiscal year 1997 and each fiscal 
     year thereafter, a State operating a transitional aid program 
     under part A in the preceding fiscal year meeting the 
     requirements of paragraph (2) shall receive a bonus amount 
     equal to 10 percent of the base payment amount determined for 
     such State under section 481(b).
       ``(2) Requirements.--A transitional aid program meets the 
     requirements of this paragraph if the program--
       ``(A) provides for disregards of earned income for families 
     receiving transitional aid to ensure that a family in which a 
     family member worked part-time in a minimum wage job did not 
     have a lower monthly income after calculation of reasonable 
     work-related expenses than a family of the same size in which 
     a family member did not work;
       ``(B) provides that calculation of the level of 
     transitional aid under the program for a family is based only 
     on the needs of needy children and the caretaker relatives of 
     such children; and
       ``(C) provides for equal treatment of one-parent and two-
     parent families.

     ``SEC. 404. DEVIATION FROM PLAN.

       ``(a) Stoppage of Payments.--In the case of any State plan 
     for transitional aid to families with needy children which 
     has been approved by the Secretary, 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 section 402(a) 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).
       ``(b) Misuse of Funds.--In any case in which the Secretary 
     finds that a State has misappropriated or misused funds 
     appropriated pursuant to section 403, the Secretary shall 
     reduce the payment to which the State would otherwise be 
     entitled under this part for the fiscal year following the 
     fiscal year in which such finding is made by
      an amount equal to two times the amount of funds found to be 
     misused or misappropriated.

     ``SEC. 405. USE OF PAYMENTS FOR BENEFIT OF CHILDREN.

       ``Whenever the State agency has reason to believe that any 
     payments of transitional aid to families with needy children 
     made with respect to a child are not being or may not be used 
     in the best interests of the child, the State agency may 
     provide for such counseling and guidance services with 
     respect to the use of such payments and the management of 
     other funds by the relative receiving such payments as it 
     deems advisable in order to assure use of such payments in 
     the best interests of such child, and may provide for 
     advising such relative that continued failure to so use such 
     payments will result in substitution therefor of such 
     protective payments as the State may authorize, or in seeking 
     appointment of a guardian or legal representative as provided 
     in section 1111, or in the imposition of criminal or civil 
     penalties authorized under State law if it is determined by a 
     court of competent jurisdiction that such relative is not 
     using or has not used for the benefit of the child any such 
     payments made for that purpose; and the provision of such 
     services or advice by the State agency (or the taking of the 
     action specified in such advice) shall not serve as a basis 
     for withholding funds from such State under section 404 and 
     shall not prevent such payments with respect to such child 
     from being considered transitional aid to families with needy 
     children.

     ``SEC. 406. SPECIAL RULE.

       ``Each needy child, and each relative with whom such a 
     child is living (including the spouse of such relative), who 
     becomes ineligible for transitional aid to families with 
     needy children 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 
     aid 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 transitional aid to families with needy 
     children for purposes of title XIX for an additional 4 
     calendar months beginning with the month in which such 
     ineligibility begins.
     ``SEC. 407. PERFORMANCE MEASUREMENT SYSTEM.

       ``(a) In General.--Not later than July 1, 1996, the 
     Secretary, in consultation with the States, shall submit 
     recommendations to Congress to streamline the system for 
     monitoring the accuracy of payments made for transitional aid 
     to families with needy children and for transforming the 
     transitional aid program into a system that measures a 

[[Page S 13000]]
     State's performance in moving recipients of such aid into permanent 
     employment.
       ``(b) Details of Recommendations.--The recommendations 
     required by subsection (a) shall--
       ``(1) be based on a system which replaces the AFDC quality 
     control system (described in section 408 of the Social 
     Security Act as in effect on the day before the date of the 
     enactment of the Work and Gainful Employment Act),
       ``(2) include an effort to ensure the continuity of 
     recipient data collected under the AFDC quality control 
     system and the new streamlined system, and
       ``(3) integrate the performance measurements under the WAGE 
     program and any other applicable performance measurements 
     that are designed to measure the effectiveness of States in 
     promoting work.

     ``SEC. 408. EXCLUSION FROM TRANSITIONAL AID PROGRAM UNIT OF 
                   INDIVIDUALS FOR WHOM CERTAIN PAYMENTS ARE MADE.

       ``(a) Exclusion of Children Receiving Foster Care, Etc.--
     Notwithstanding any other provision of this title (other than 
     subsection (b))--
       ``(1) a child with respect to whom foster care maintenance 
     payments or adoption assistance payments are made under part 
     E of this title or under State or local law, or a child or 
     parent receiving benefits under title XVI of this Act, shall 
     not, for the period for which such payments are made, be 
     regarded as a member of a family for purposes of determining 
     the amount of benefits of the family under this part; and
       ``(2) the income and resources of such child or parent 
     shall be excluded from the income and resources of a family 
     under this part.
       ``(b) Limitation.--Subsection (a) of this section shall not 
     apply in the case of a child with respect to whom adoption 
     assistance payments are made under part E of this title or 
     under State or local law, if application of such subsection 
     would reduce the benefits under this part of the family of 
     which the child would otherwise be regarded as a member.

     ``SEC. 409. TECHNICAL ASSISTANCE FOR DEVELOPING MANAGEMENT 
                   INFORMATION SYSTEMS.

       ``The Secretary shall provide such technical assistance to 
     States as the Secretary determines necessary to assist States 
     to plan, design, develop, or install and provide for the 
     security of, the management information systems referred to 
     in section 403(a)(2).
     ``SEC. 410. 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 benefits under 
     a State plan approved under this part for an individual who 
     is a qualified alien described in section 402(a)(7), 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) of this section) for a period 
     determined under section 802 of the Work and Gainful 
     Employment 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) Amount deemed unearned income.--The amount of income 
     of a sponsor (and his spouse) which shall be deemed to be the 
     unearned income of a qualified 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 his 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 cash 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 him as dependents 
     for purposes of determining his Federal personal income tax 
     liability but whose needs are not taken into account by the 
     State for the purpose of determining eligibility for 
     transitional aid under this part;
       ``(iii) any amounts paid by the sponsor (or his spouse) to 
     individuals not living in such household who are claimed by 
     him as dependents for purposes of determining his Federal 
     personal income tax liability; and
       ``(iv) any payments of alimony or child support with 
     respect to individuals not living in such household.
       ``(2) Amount deemed resources.--The amount of resources of 
     a sponsor (and his spouse) which shall be deemed to be the 
     resources of a qualified alien for any month shall be 
     determined as follows:
       ``(A) The total amount of the resources (determined as if 
     the sponsor were applying for aid 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 the 
     Alien's Sponsor; Receipt of Information From Departments of 
     State and Justice.--
       ``(1) Information required.--Any individual who is an alien 
     and whose sponsor was a public or private agency shall be 
     ineligible for aid under a State plan approved under this 
     part during the period determined under section 802 of the 
     Work and Gainful Employment 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 it may specify 
     in the State plan, and upon such documentary evidence as it 
     may therein require. Any such individual, and any other 
     individual who is a qualified alien (as a condition of his or 
     her eligibility for aid under a State plan approved under 
     this part during the period determined under section 802 of 
     the Work and Gainful Employment Act, shall be required to 
     provide to the State agency administering such plan such 
     information and documentation with respect to his 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 it 
     may request and which such alien or his sponsor provided in 
     support of such alien's immigration application.
       ``(2) Cooperation with secretary of state and attorney 
     general.--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 Aid During Specified Period Following Entry.--
     Any sponsor of a qualified alien, and such alien, shall be 
     jointly and severally liable for an amount equal to any 
     overpayment of aid under the State plan made to such alien 
     during the period determined under section 802 of the Work 
     and Gainful Employment Act, 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 Act.
       ``(e) Division of Income and Resources of Individual 
     Sponsoring Two or More Aliens Living in Same Home.--
       ``(1) In general.--In any case where a person is the 
     sponsor of two or more alien individuals who are living in 
     the same home, the income and resources of such sponsor (and 
     his spouse), to the extent they would be deemed the income 
     and resources of any one of such individuals under the 
     preceding provisions of this section, shall be divided into 
     two 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 
     one such share.
       ``(2) Deemed income and resources.--Income and resources of 
     a sponsor (and his 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 (8 
     U.S.C. 1153(a)(7));
       ``(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 or Haitian entrant, as defined in section 
     501(e) of the Refugee Education Assistance Act of 1980 
     (Public Law 96-422).

     ``SEC. 411. FRAUD CONTROL.

       ``(a) Election for Fraud Control Program.--Any State, in 
     the administration of its State plan approved under section 
     402, may elect to establish and operate a fraud control 
     program in accordance with this section.
       ``(b) Penalty for False or Misleading Statement or 
     Misrepresentation of 

[[Page S 13001]]
     Fact.--Under any such program, if an individual who is a member of a 
     family applying for or receiving aid under the State plan 
     approved under section 402 is found by a Federal or State 
     court or pursuant to an administrative hearing meeting 
     requirements determined in regulations of the Secretary, on 
     the basis of a plea of guilty or nolo contendere or 
     otherwise, to have intentionally--
       ``(1) made a false or misleading statement or 
     misrepresented, concealed, or withheld facts, or
       ``(2) committed any act intended to mislead, misrepresent, 
     conceal, or withhold facts or propound a falsity, for the 
     purpose of establishing or maintaining the family's 
     eligibility for aid under such State plan or of increasing 
     (or preventing a reduction in) the amount of such aid, then 
     the needs of such individual shall not be taken into account 
     by the State in determining eligibility for transitional aid 
     under this part with respect to his or her family--
       ``(A) for a period of 6 months upon the first occasion of 
     any such offense,
       ``(B) for a period of 12 months upon the second occasion of 
     any such offense, and
       ``(C) permanently upon the third or a subsequent occasion 
     of any such offense.
       ``(c) Proceedings Against Violators by State Agency.--The 
     State agency involved shall proceed against any individual 
     alleged to have committed an offense described in subsection 
     (b) either by way of administrative hearing or by referring 
     the matter to the appropriate authorities for civil or 
     criminal action in a court of law. The State agency shall 
     coordinate its actions under this section with any 
     corresponding actions being taken under the food stamp 
     program in any case where the factual issues involved arise 
     from the same or related circumstances.
       ``(d) Duration of Period of Sanctions; Review.--Any period 
     for which sanctions are imposed under subsection (b) shall 
     remain in effect, without possibility of administrative stay, 
     unless and until the finding upon which the sanctions were 
     imposed is subsequently reversed by a court of appropriate 
     jurisdiction; but in no event shall the duration of the 
     period for which such sanctions are imposed be subject to 
     review.
       ``(e) Additional Sanctions Provided by Law.--The sanctions 
     provided under subsection (b) shall be in addition to, and 
     not in substitution for, any other sanctions which may be 
     provided for by law with respect to the offenses involved.
       ``(f) Written Notice of Penalties for Fraud.--Each State 
     which has elected to establish and operate a fraud control 
     program under this section must provide all applicants for 
     transitional aid to families with needy children under its 
     approved State plan, at the time of their application for 
     such aid, with a written notice of the penalties for fraud 
     which are provided for under this section.

     ``SEC. 412. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

       ``The programs under this part, part D, and part F of this 
     title shall be administered by an Assistant Secretary for 
     Family Support within the Department of Health and Human 
     Services, who shall be appointed by the President, by and 
     with the advice and consent of the Senate, and who shall be 
     in addition to any other Assistant Secretary of Health and 
     Human Services provided for by law.''.
       (b) Transition From AFDC to Transitional Aid Program.--In 
     the case of any individual who is an applicant for or 
     recipient of aid to families with dependent children under 
     part A of title IV of the Social Security Act, as in effect 
     on the day before the effective date of this title, the State 
     may, at the State's option, provide that--
       (1) such individual be treated as an applicant for or 
     recipient of (as the case may be) transitional aid to 
     families with needy children under part A of title IV of the 
     Social Security Act as in effect on such effective date, or
       (2) such individual submit an application for transitional 
     aid in accordance with the provisions of the State plan 
     approved under such part A as so in effect.
          TITLE II--WORK AND GAINFUL EMPLOYMENT (WAGE) PROGRAM

     SEC. 201. WAGE PROGRAM.

       Part F of title IV of the Social Security Act (42 U.S.C. 
     681 et seq.) is amended to read as follows:

                         ``PART F--WAGE PROGRAM

     ``SEC. 480. PURPOSE.

       ``It is the purpose of this part to provide States with 
     flexibility to design programs to ensure that needy families 
     with children obtain employment and avoid long-term welfare 
     dependence.

                        ``Subpart 1--Block Grant

     ``SEC. 481. BLOCK GRANT.

       ``(a) Block Grant Amount.--Subject to section 482, each 
     State that operates a WAGE program in accordance with subpart 
     2 shall be entitled to receive for each fiscal year a block 
     grant amount equal to--
       ``(1) the base payment amount determined under subsection 
     (b) and the additional amount described in subsection (b)(3); 
     plus
       ``(2) the performance award amount (if any) determined 
     under subsection (c).
       ``(b) Base Payment Amount.--
       ``(1) In general.--Subject to the limitation of paragraph 
     (3), the base payment amount determined under this subsection 
     with respect to each State is--
       ``(A) for fiscal year 1996, an amount equal to the base 
     amount determined under paragraph (2); and
       ``(B) for fiscal year 1997 and each subsequent fiscal year, 
     an amount equal to 103 percent of the base payment amount 
     determined under this subsection for the prior fiscal year.
       ``(2) Base amount.--The base amount determined under this 
     paragraph with respect to each State is an amount equal to 
     the greater of--
       ``(A) 103 percent of the Federal payments made to the State 
     in fiscal year 1995--
       ``(i) for child care services described in clause (i) or 
     (ii) of section 402(g)(1)(a) (relating to AFDC-JOBS child 
     care and transitional child care);
       ``(ii) under section 403(a)(3) (relating to administrative 
     costs of operating the AFDC program), other than any payments 
     made under such section for automated data processing 
     systems; and
       ``(iii) under section 403(a)(5) (relating to emergency 
     assistance); or
       ``(B) 103 percent of the average of the Federal payments 
     described in clauses (i), (ii), and (iii) of subparagraph (A) 
     made to the State in fiscal years 1993, 1994, and 1995.
       ``(3) Additional payments.--
       ``(A) In general.--In addition to the amounts specified in 
     paragraph (2), each State shall be entitled to receive an 
     amount that bears the same ratio to the amount specified in 
     subparagraph (B) for such fiscal year as the average monthly 
     number of families with needy children receiving transitional 
     aid in the State in the preceding fiscal year bears to the 
     average monthly number of such families in all the States for 
     such preceding year.
       ``(B) Amount specified.--The amount specified in this 
     subparagraph is--
       ``(i) for fiscal year 1996, $1,200,000,000;
       ``(ii) for fiscal year 1997, $1,700,000,000;
       ``(iii) for fiscal year 1998, $2,100,000,000;
       ``(iv) for fiscal year 1999, $2,700,000,000; and
       ``(v) for fiscal year 2000, $3,200,000,000.
       ``(c) Performance Award.--
       ``(1) In general.--Subject to the limitation of paragraph 
     (4), the performance award determined under this subsection 
     for a fiscal year for a State is an amount equal to the sum 
     of--
       ``(A) the full-time employment savings of the State, plus
       ``(B) the part-time employment savings of the State.
       ``(2) Full-time employment savings.--For purposes of this 
     subsection--
       ``(A) In general.--The full-time employment savings of a 
     State for any fiscal year is an amount equal to the product 
     of--
       ``(i) the total number of full-time performance award 
     employees, and
       ``(ii) an amount equal to 6 times the Federal share of the 
     average monthly transitional aid paid to individuals in 
     accordance with the State plan under part A for the preceding 
     fiscal year.
       ``(B) Full-time performance award employees.--The term 
     `full-time performance award employees' means, with respect 
     to any fiscal year, a number of employees equal to the 
     applicable percentage of the average monthly number of 
     individuals who, during the preceding fiscal year, received 
     transitional aid under the program operated in accordance 
     with the State plan under part A.
       ``(C) Applicable percentage.--The term `applicable 
     percentage' means, with respect to any fiscal year, the 
     number of whole percentage points (if any) by which--
       ``(i) the percentage which--

       ``(I) the average monthly number of individuals who became 
     ineligible during the preceding fiscal year to receive 
     transitional aid under the program operated in accordance 
     with the State plan under part A by reason of earnings from 
     employment, bears to
       ``(II) the number of individuals receiving transitional aid 
     under the program operated in accordance with the State plan 
     under part A for such preceding fiscal year, exceeds

       ``(ii) the percentage determined under clause (i) for 
     fiscal year 1996.
       ``(D) Special rule for short-term employees.--An individual 
     shall not be taken into account under subclause (I) of 
     subparagraph (C)(i) unless the employment described in such 
     subclause has continued for 6 consecutive months. If an 
     individual is not taken into account for a fiscal year by 
     reason of this subparagraph, such individual shall be taken 
     into account in the following fiscal year if such 6-month 
     period ends in such following fiscal year.
       ``(3) Part-time employment savings.--For purposes of this 
     subsection--
       ``(A) In general.--The part-time employment savings of a 
     State for any fiscal year is an amount equal to the product 
     of--
       ``(i) the total number of part-time performance award 
     employees, and
       ``(ii) an amount equal to 6 times the Federal share of the 
     average monthly transitional aid (weighted for family size) 
     which would otherwise be paid to individuals described in 
     subparagraph (C)(i)(I) in accordance with the State plan 
     under part A for the preceding fiscal year but for the fact 
     the individual worked at least 20 hours per week.
       ``(B) Part-time performance award employees.--The term 
     `part-time performance award employees' means, with respect 
     to any fiscal year, a number of employees equal to the 
     applicable percentage of the average monthly number of 
     individuals who, during the preceding fiscal year, received 
     transitional aid under the program operated in accordance 
     with the State plan under part A.

[[Page S 13002]]

       ``(C) Applicable percentage.--The term `applicable 
     percentage' means, with respect to any fiscal year, the 
     number of whole percentage points (if any) by which--
       ``(i) the percentage which--

       ``(I) the average monthly number of individuals who were 
     eligible to receive transitional aid under the program 
     operated in accordance with the State plan under part A 
     during the preceding fiscal year, and worked at
      least 20 hours a week in a position which was not subsidized 
     by the State, bears to

       ``(II) the number of individuals receiving transitional aid 
     under the program operated in accordance with the State plan 
     under part A for such preceding fiscal year, exceeds

       ``(ii) the percentage determined under clause (i) for 
     fiscal year 1996.
       ``(D) Special rule for areas of high unemployment.--In the 
     case of any State (or any area of a State) which has an 
     average monthly unemployment rate which is more than 6.5 
     percent (as determined by the Secretary of Labor) for the 
     fiscal year for which the percentage described in 
     subparagraph (C)(i) is being determined, such State may, in 
     applying subparagraph (C)(i)(I), include individuals residing 
     in such State (or area) who worked at least 20 hours a week 
     in positions fully subsidized by the State.
       ``(4) Limitation.--
       ``(A) In general.--The performance award under paragraph 
     (1) for a State for any fiscal year shall not exceed the 
     amount that bears the same ratio to the amount specified in 
     clause (ii) for such fiscal year as the amount of full-time 
     and part-time performance award employees of the State for a 
     fiscal year bears to the amount of such employees for all 
     States for such fiscal year.
       ``(B) Amount specified.--The amount specified in this 
     subparagraph is--
       ``(i) for fiscal year 1998, $200,000,000;
       ``(ii) for fiscal year 1999, $400,000,000; and
       ``(iii) for fiscal year 2000 and each fiscal year 
     thereafter, $600,000,000.
       ``(5) Award beginning with fiscal year 1998.--No amount 
     shall be paid to a State as a performance award determined 
     under this subsection before October 1, 1997.
       ``(d) Payments to Indian Tribes.--The Secretary shall 
     reserve for payment to Indian tribes and Alaska Native 
     organizations with an application approved under section 
     492(a)(1)(A) an amount equal to not more than 2 percent of 
     the amount appropriated under subsection (a). Such amounts 
     shall be distributed to each tribe and Alaska Native 
     organization in an amount that bears the same ratio to the 
     total amount reserved under this subsection as the number of 
     the participants required to be served in the preceding 
     fiscal year in the tribe's or Alaska Native organization's 
     service area bears to the number of participants to be served 
     by all tribes and Alaska Native organizations in such 
     preceding year. In making such distributions, the Secretary 
     shall take into account such other factors as the Secretary 
     deems appropriate, including unique geographic, economic, 
     demographic, and administrative conditions of individual 
     Indian tribes and Alaska Native organizations.
     ``SEC. 482. PARTICIPATION RATES.

       ``(a) Participation Rate Requirement.--
       ``(1) In general.--Notwithstanding section 481, the 
     Secretary shall pay to a State an amount equal to 95 percent 
     of the base payment amount determined for the State for a 
     fiscal year if the State's participation rate determined 
     under subsection (c) for the preceding fiscal year does not 
     exceed or equal the following percentage:

``Fiscal year:                                              Percentage:
  1996...........................................................35....

  1997...........................................................40....

  1998...........................................................45....

  1999...........................................................50....

  2000..........................................................55.....
       ``(2) Required work activity.--A State shall not be treated 
     as having a participation rate meeting the requirements of 
     this subsection if the number of individuals described in 
     subsection (c)(1) engaged in work activities is not at least 
     50 percent of the total number of individuals described in 
     subsection (c)(1).
       ``(b) Election by the State.--In lieu of the reduction 
     described in subsection (a), a State that does not meet the 
     participation rate requirements described in subsection (a), 
     may elect to receive the full amount of the payments 
     described in section 481(a)(1) to which the State is 
     otherwise entitled for the fiscal year if the State makes 
     available non-Federal contributions for the fiscal year in an 
     amount equal to not less than 5 percent of the State's non-
     Federal contributions for the preceding fiscal year.
       ``(c) Determination of Participation Rate.--The State's 
     participation rate for a fiscal year shall be the number, 
     expressed as a percentage, equal to--
       ``(1) the sum of--
       ``(A) the average monthly number of individuals in the 
     State who have participated in work activities or work 
     preparation activities under the WAGE program under subpart 2 
     for an average of at least 20 hours a week,
       ``(B) the average monthly number of individuals who within 
     the previous 6-month period have become ineligible for 
     transitional aid under part A or the WAGE program because the 
     individuals are employed, and
       ``(C) the average monthly number of individuals under 
     sanctions for failing to comply with a WAGE Plan, divided by
       ``(2) the average monthly number of families with an adult 
     recipient, not including those who are exempt under section 
     402(a)(11).
       ``(d) Definition of Work Activities.--For purposes of this 
     section, the term `work activities' means--
       ``(1) unsubsidized employment;
       ``(2) subsidized private sector employment;
       ``(3) subsidized public sector employment or work 
     experience (including work associated with the refurbishing 
     of publicly assisted housing) only if sufficient private 
     sector employment is not available;
       ``(4) on-the-job training; and
       ``(5) microenterprise employment.
       ``(e) Two-Year Limit.--For purposes of subsection 
     (c)(1)(A), an individual who has participated in the WAGE 
     program for 2 years may not be counted in determining the 
     State's participation rate unless such individual is engaged 
     in a work activity.

        ``Subpart 2--Establishment and Operation of WAGE Program

     ``SEC. 490. REQUIREMENT TO ESTABLISH A WAGE PROGRAM.

       ``A State shall establish a work and gainful employment 
     program (hereafter in this part referred to as the `WAGE 
     program') in accordance with section 491.

     ``SEC. 491. ESTABLISHMENT AND OPERATION OF FLEXIBLE STATE 
                   PROGRAMS.

       ``(a) Program Requirements.--Any State with a State plan 
     approved under subsection (c) shall establish and operate a 
     program that meets the following requirements:
       ``(1) Objective.--The objective of the program is for each 
     program participant to find and hold a full-time unsubsidized 
     paid job, and for this goal to be achieved in a cost-
     effective fashion.
       ``(2) Methods of obtaining objective.--The objective of the 
     program under paragraph (1) shall be achieved by connecting 
     recipients of transitional aid with the private sector labor 
     market as soon as possible and offering them the support and 
     skills necessary to remain in the labor market. Each 
     component of the program should seek to attain the objective 
     by emphasizing employment and conveying an understanding that 
     minimum wage jobs are a stepping stone to more highly paid 
     employment. The program is intended to provide recipients 
     with job search and placement, education, training, wage 
     supplementation, temporary subsidized jobs, or such other 
     services as the State deems necessary to help a recipient 
     obtain private sector employment.
       ``(3) Job creation.--The creation of jobs, with an emphasis 
     on private sector jobs, shall be a component of the program 
     and shall be a priority for each State office that has 
     responsibility under the program.
       ``(4) Assistance.--The State may provide assistance to 
     participants in the program in the following forms:
       ``(A) State job placement services, which may include 
     employment opportunity centers that act as one-stop placement 
     entities through which the State makes available to each 
     program participant services under programs carried out under 
     one or more of the following provisions of law:
       ``(i) Part A of title II of the Job Training Partnership 
     Act (29 U.S.C. 1601 et seq.) (relating to the adult training 
     program).
       ``(ii) Part B of title II of such Act (29 U.S.C. 1630 et 
     seq.) (relating to the summer youth employment and training 
     programs).
       ``(iii) Part C of title II of such Act (29 U.S.C. 1641 et 
     seq.) (relating to the youth training program).
       ``(iv) Title III of such Act (29 U.S.C. 1651 et seq.) 
     (relating to employment and training assistance for 
     dislocated workers).
       ``(v) Part B of title IV of such Act (29 U.S.C. 1691 et 
     seq.) (relating to the Job Corps).
       ``(vi) The Carl D. Perkins Vocational and Applied 
     Technology Education Act (20 U.S.C. 2301 et seq.).
       ``(vii) The Adult Education Act (20 U.S.C. 1201 et seq.).
       ``(viii) Part B of chapter 1 of title I of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 2741 et seq.) 
     (relating to Even Start family literacy programs).
       ``(ix) Subtitle A of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11421) (relating to adult 
     education for the homeless).
       ``(x) Subtitle B of title VII of such Act (42 U.S.C. 11431 
     et seq.) (relating to education for homeless children and 
     youth).
       ``(xi) Subtitle C of title VII of such Act (42 U.S.C. 
     11441) (relating to job training for the homeless).
       ``(xii) The School-to-Work Opportunities Act of 1994.
       ``(xiii) The National and Community Service Act of 1990 (42 
     U.S.C. 12501 et seq.).
       ``(xiv) The National Skill Standards Act of 1994.
       ``(B) Private placement company services, which may include 
     contracts the State enters into with private companies 
     (whether operated for profit or not for profit) or community 
     action agencies for placement of participants in the program 
     in positions of full-time or part-time employment, preferably 
     in the private sector, for wages sufficient to eliminate the 
     need of such participants for cash assistance.
       ``(C) Microenterprise programs, including programs under 
     which the State makes grants and loans to public and private 
     organizations, agencies, and other entities (whether operated 
     for profit or not for profit) to enable such entities to 
     facilitate economic development by--
       ``(i) providing technical assistance, advice, and business 
     support services (including assistance, advice, and support 
     relating to 

[[Page S 13003]]
     business planning, financing, marketing, and other microenterprise 
     development activities) to owners of microenterprises and 
     persons developing microenterprises; and
       ``(ii) providing general support (such as peer support and 
     self-esteem programs) to owners of microenterprises and 
     persons developing microenterprises.
       ``(D) Work supplementation programs, under which the State 
     may use part or all of the sums that would otherwise be 
     payable to participants in the program as transitional aid 
     under part A for the purpose of providing and subsidizing 
     jobs for such participants as an alternative to the 
     transitional aid that would otherwise be so payable to them.
       ``(E) Innovative JOBS programs, including programs similar 
     to--
       ``(i) the program known as the `GAIN Program' that has been 
     operated by Riverside County, California, under Federal law 
     in effect immediately before the date this section first 
     applies to the State of California;
       ``(ii) the program known as `JOBS Plus' that has been 
     operated by the State of Oregon under Federal law in effect 
     immediately before the date this section first applies to the 
     State of Oregon; and
       ``(iii) the program known as `JOBS' that has been operated 
     by Kenosha County, Wisconsin, under Federal law in effect 
     immediately before the date this section first applies to the 
     State of Wisconsin.
       ``(F) Temporary subsidized job creation, which may include 
     workfare programs.
       ``(G) Education or training services.
       ``(H) Any other service which provides individuals with the 
     support and skills necessary to obtain and keep employment in 
     the private sector.

     For purposes of subparagraph (C), the term `microenterprise' 
     means a commercial enterprise which has 5 or fewer employees, 
     one or more of whom owns the enterprise.
       ``(5) WAGE plan.--The State agency shall develop a WAGE 
     Plan in accordance with subsection (b) with each program 
     participant.
       ``(6) Hours of participation requirement.--The State shall 
     provide that each participant in the program under this 
     section shall participate in activities in accordance with 
     this section for at least 20 hours per week (or, at the 
     State's option, a greater number of hours per week), 
     including job search in cases where the individual is not 
     employed in an unsubsidized job in the private sector.
       ``(7) Time limit.--A State may establish a time limit of 
     any duration for participation by an individual in the WAGE 
     program. A State shall not terminate any participant subject 
     to such time limit if the participant has complied with the 
     requirements set forth in the WAGE Plan established in 
     accordance with paragraph (5).
       ``(8) Child care services.--The State shall offer each 
     individual participating in the program child care services 
     (as determined by the State) if such individual requires 
     child care services in order to participate.
       ``(9) Nondisplacement.--The program shall comply with the 
     requirements of subsection (g).
       ``(10) Noncustodial parents.--
       ``(A) In general.--The State may provide services under the 
     program, on a voluntary or mandatory basis, to noncustodial 
     parents of needy children who are recipients of transitional 
     aid.
       ``(B) Participation rate.--Noncustodial parents who 
     participate in the WAGE program shall be treated as 
     participants for purposes of determining the participation 
     rate under section 482.
       ``(b) WAGE Plan.--
       ``(1) In general.--On the basis of an initial assessment of 
     the skills, prior work experience, and employability of each 
     individual who the State requires to participate in the WAGE 
     program, the State agency shall, together with the 
     individual, develop a WAGE Plan, which--
       ``(A) sets forth an employment goal for the individual and 
     contains an individualized comprehensive plan developed by 
     the State agency with the participant for moving the 
     individual into the workforce;
       ``(B) provides that the participant shall spend at least 20 
     hours per week (or, at the option of the State, a greater 
     number of hours per week) in activities provided for in the 
     WAGE Plan, including job search in cases where the individual 
     is not employed in an unsubsidized job in the private sector;
       ``(C) sets forth the obligations of the individual, which 
     may include a requirement that the individual attend school, 
     maintain certain grades and attendance, keep school age 
     children of the individual in school, immunize children, 
     attend parenting and money management classes, or do other 
     things that will help the individual become and remain 
     employed in the private sector;
       ``(D) provides that the participant shall accept any bona 
     fide offer of unsubsidized full-time employment, unless the 
     participant has good cause for not doing so;
       ``(E) describes the child care and other social services 
     and assistance which the State will provide in order to allow 
     the individual to take full advantage of the activities under 
     the program operated in accordance with this section;
       ``(F) at the option of the State, provides that aid under 
     the transitional aid program is to be paid to the participant 
     based on the number of hours that the participant spends in 
     activities provided for in the agreement; and
       ``(G) at the option of the State, requires the participant 
     to undergo appropriate substance abuse treatment.
       ``(2) Timing.--The State agency shall comply with paragraph 
     (1) with respect to an individual--
       ``(A) within 90 days (or, at the option of the State, 180 
     days) after the effective date of this part, in the case of 
     an individual who, as of such effective date, is a recipient 
     of aid under the State plan approved under part A; or
       ``(B) within 30 days (or, at the option of the State, 90 
     days) after the individual is determined to be eligible for 
     such aid, in the case of any other individual.
       ``(c) State Plans.--
       ``(1) In general.--Within 60 days after the date a State 
     submits to the Secretary a plan that provides for the 
     establishment and operation of a program that meets the 
     requirements of subsection (a), the Secretary shall approve 
     the plan.
       ``(2) Authority to extend deadline.--The 60-day deadline 
     established in paragraph (1) with respect to a State may be 
     extended in accordance with an agreement between the 
     Secretary and the State.
       ``(d) Annual Reports.--
       ``(1) Compliance with performance measures.--Each State 
     that operates a program under this section shall submit to 
     the Secretary annual reports that compare the achievements of 
     the program with the performance-based measures established 
     under subsection (e).
       ``(2) Compliance with participation rates.--Each State that 
     operates a program under this section for a fiscal year shall 
     submit to the Secretary a report on the participation rate 
     determined under section 482 of the State for the fiscal 
     year.
       ``(e) Performance-Based Measures.--The Secretary shall, by 
     regulation, establish measures of the effectiveness of the 
     State's program established under this section in moving 
     recipients of transitional aid under the State plan approved 
     under part A into full-time unsubsidized employment, based on 
     the performance of such programs.
       ``(f) Effect of Failure To Meet Participation Rates.--
       ``(1) In general.--If a State fails to achieve the 
     participation rate required by section 482(a) for the fiscal 
     year, the Secretary may make recommendations for changes in 
     the program. The State may elect to follow such 
     recommendations, and shall demonstrate to the Secretary how 
     the State will achieve the required participation rates.
       ``(2) Second consecutive failure.--Notwithstanding 
     paragraph (1), if the State has failed to achieve the 
     participation rates required by section 482(a) for 2 
     consecutive fiscal years, the Secretary may require the State 
     to make changes in the State program established under this 
     section.
       ``(g) No Displacement.--No work assignment under the 
     program shall result in--
       ``(1) the displacement of any currently employed worker or 
     position (including partial displacement such as a reduction 
     in the hours of nonovertime work, wages, or employment 
     benefits), or result in the impairment of existing contracts 
     for services or collective bargaining agreements;
       ``(2) the employment or assignment of a participant of the 
     filling of a position when--
       ``(A) any other individual is on layoff from the same or 
     any equivalent position, or
       ``(B) the employer has terminated the employment of any 
     regular employee or otherwise reduced its workforce with the 
     effect of filling the vacancy so created with a participant 
     subsidized under the program; or
       ``(3) any infringement of the promotional opportunities of 
     any currently employed individual.

     No participant may be assigned under work supplementation 
     programs or under workfare programs to fill any established 
     unfilled position vacancy.

     ``SEC. 492. SPECIAL PROVISIONS RELATING TO INDIAN TRIBES AND 
                   ALASKA NATIVE ORGANIZATIONS.

       ``(a) Special Provisions Relating to Tribes and Native 
     Organizations.--
       ``(1) In general.--
       ``(A) WAGE programs.--An Indian tribe or Alaska Native 
     organization may apply to the Secretary to conduct a WAGE 
     program under this part. An application to conduct a WAGE 
     program in a fiscal year shall be submitted not later than 
     July 1 of the preceding fiscal year. Upon approval of the 
     application, payment in the amount determined in accordance 
     with section 482(d) shall be made directly to the tribe or 
     organization involved.
       ``(B) Waiver of certain requirements.--The Secretary may 
     waive any requirements of this part with respect to a WAGE 
     program conducted under this part by an Indian tribe or 
     Alaska Native organization as the Secretary determines to be 
     appropriate.
       ``(C) Termination.--The WAGE program conducted by any 
     Indian tribe or Alaska Native organization may be terminated 
     voluntarily by such tribe or organization or may be 
     terminated by the Secretary upon a finding that such program 
     is not being conducted in substantial conformity with the 
     terms of the application approved under subparagraph (A). If 
     a WAGE program of an Indian tribe or Alaska Native 
     organization is terminated, such tribe or organization shall 
     not be eligible to submit a new application under 
     subparagraph (A) with respect to any year before the 6th year 
     following such termination.
       ``(D) Consortium of tribes.--An Indian tribe may enter into 
     an agreement with other Indian tribes for the provision of 

[[Page S 13004]]
     WAGE program services by a tribal consortium providing for centralized 
     administration of WAGE program services for the region served 
     by the Indian tribes so agreeing. In the case of such an 
     agreement, a single application under this part may be 
     submitted by the tribal consortium and the consortium shall 
     be entitled to receive an amount equal to the aggregate 
     amount that all of the tribes in the consortium would have 
     been entitled to receive if each tribe applied separately. In 
     any case in which an application is submitted by a tribal 
     consortium, the approval of each Indian tribe included in the 
     consortium shall be a prerequisite to the distribution of 
     funds to the tribal consortium.
       ``(2) Determination of exempt individual.--An application 
     under this section shall provide that upon approval the 
     Indian tribe or Alaska Native organization, as the case may 
     be, will be responsible for determining whether an individual 
     (within the service area of the tribe or organization) is 
     exempt under section 402(a)(11).
       ``(b) Other Requirements.--
       ``(1) Child care.--Each Indian tribe and Alaska Native 
     organization submitting an application under this section may 
     also submit to the Secretary (as a part of the application) a 
     description of the program that the tribe or organization 
     will implement to meet the child care needs of WAGE program 
     participants and may request funds to provide such child 
     care. The Secretary may waive any other requirement of this 
     part with respect to child care services as the Secretary 
     determines inappropriate for such child care program, other 
     than the requirement described in section 491(a)(8).
       ``(2) Payment for child care.--The Secretary shall adjust 
     the payment for a fiscal year under section 481(d) to reflect 
     the cost of child care for the number of required 
     participants in need of such care in the preceding fiscal 
     year (and other recipients in need of such care) in the 
     tribe's or Alaska Native organization's service area, subject 
     to the limitation on total funding for tribes and Alaska 
     Native organizations.
       ``(3) Data collection.--The Secretary shall establish data 
     collection and reporting requirements with respect to child 
     care services implemented under this subsection.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Tribal consortium.--The term `tribal consortium' 
     means any group, association, partnership, corporation, or 
     other legal entity which is controlled, sanctioned, or 
     chartered by the governing body of more than 1 Indian tribe.
       ``(2) Indian tribe.--The term `Indian tribe' means any 
     tribe, band, nation, or other organized group or community of 
     Indians that--
       ``(A) is recognized as eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians; and

       ``(B) for which a reservation exists.
     For purposes of subparagraph (B), a reservation includes 
     Indian reservations, public domain Indian allotments, and 
     former Indian reservations in Oklahoma.
       ``(3) Alaska native organization.--
       ``(A) In general.--The term `Alaska Native organization' 
     means any organized group of Alaska Natives eligible to 
     operate a Federal program under Public Law 93-638 or such 
     group's designee.
       ``(B) Boundaries.--The boundaries of an Alaska Native 
     organization shall be those of the geographical region, 
     established pursuant to section 7(a) of the Alaska Native 
     Claims Settlement Act, within which the Alaska Native 
     organization is located (without regard to the ownership of 
     the land within the boundaries).
       ``(C) Limits on applications.--The Secretary may approve 
     only one application from an Alaska Native organization for 
     each of the 12 geographical regions established pursuant to 
     section 7(a) of the Alaska Native Claims Settlement Act.

     Nothing in this paragraph shall be construed to grant or 
     defer any status or powers other than those expressly granted 
     in this paragraph or to validate or invalidate any claim by 
     Alaska Natives of sovereign authority over lands or 
     people.''.

     SEC. 202. REGULATIONS.

       The Secretary of Health and Human Services shall prescribe 
     such regulations as may be necessary to implement the 
     amendments made by this title.

     SEC. 203. APPLICABILITY TO STATES.

       (a) 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 amendments made by this title, the amendments 
     shall apply to the State on and after such earlier date as 
     the State may select.
       (b) State Option To Delay Applicability Until Waivers 
     Expire.--The amendments made by this title shall not apply to 
     a State with respect to which there is in effect a waiver 
     issued under section 1115 of the Social Security Act for the 
     State program established under part F of title IV of such 
     Act until the waiver expires, if the State formally notifies 
     the Secretary of Health and Human Services that the State 
     desires to so delay such effective date.
       (c) 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 
     amendments made by this title, the amendments shall apply to 
     the State on and after any later date agreed upon by the 
     Secretary and the State.
               TITLE III--CHILD CARE FOR WORKING PARENTS

     SEC. 301. PURPOSE.

       It is the purpose of this title to--
       (1) eliminate fragmentation of child care programs; and
       (2) increase the availability of affordable child care in 
     order to promote self sufficiency and support working 
     families.
 Subtitle A--Amendments to the Child Care and Development Block Grant 
                              Act of 1990

     SEC. 311. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK 
                   GRANT ACT OF 1990.

       (a) Authorization of Appropriations.--Section 658B of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858) is amended to read as follows:

     ``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subchapter $1,000,000,000 for fiscal year 1996, and such sums 
     as may be necessary for each of the fiscal years 1997 through 
     2000.''.
       (b) Lead Agency.--Section 658D(b) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858b(b)) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``State'' and 
     inserting ``governmental or nongovernmental''; and
       (B) in subparagraph (C), by inserting ``with sufficient 
     time and Statewide distribution of the notice of such 
     hearing,'' after ``hearing in the State''; and
       (2) in paragraph (2), by striking the second sentence.
       (c) Application and Plan.--Section 658E of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858c) is 
     amended--
       (1) in subsection (b), by striking ``implemented--'' and 
     all that follows through ``plans.'' and inserting 
     ``implemented during a 2-year period.'';
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) in clause (iii) by striking the semicolon and inserting 
     a period; and
       (II) by striking ``except'' and all that follows through 
     ``1992.''; and

       (ii) in subparagraph (E)--

       (I) by striking clause (ii) and inserting the following new 
     clause:

       ``(ii) the State will implement mechanisms to ensure that 
     appropriate payment mechanisms exist so that proper payments 
     under this subchapter will be made to providers within the 
     State and to permit the State to furnish information to such 
     providers.''; and

       (II) by adding at the end thereof the following new 
     sentence: ``In lieu of any licensing and regulatory 
     requirements applicable under State and local law, the 
     Secretary, in consultation with Indian tribes and tribal 
     organizations, shall develop minimum child care standards 
     (that appropriately reflect tribal needs and available 
     resources) that shall be applicable to Indian tribes and 
     tribal organization receiving assistance under this 
     subchapter.''; and

       (iii) by striking subparagraphs (H) and (I); and
       (B) in paragraph (3)--
       (i) in subparagraph (C)--

       (I) in the subparagraph heading, by striking ``and to 
     increase'' and all that follows through ``care services'';
       (II) by striking ``25 percent'' and inserting ``15 
     percent''; and
       (III) by striking ``and to provide before-'' and all that 
     follows through ``658H)''; and

       (ii) by adding at the end thereof the following new 
     subparagraph:
       ``(D) Limitation on administrative costs.--Not more than 5 
     percent of the aggregate amount of payments received under 
     this subchapter by a State in each fiscal year may be 
     expended for administrative costs incurred by such State to 
     carry out all its functions and duties under this 
     subchapter.''.
       (d) Sliding Fee Scale.--
       (1) In general.--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 before the period the following: 
     ``and that ensures a representative distribution of funding 
     among the working poor and recipients of Federal welfare 
     assistance''.
       (2) Eligibility.--Section 658P(4)(B) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)) 
     is amended by striking ``75 percent'' and inserting ``100 
     percent''.
       (e) Quality.--Section 658G of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858e) is 
     amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``A State'' and inserting ``(a) In 
     General.--A State'';
       (B) by striking ``not less than 20 percent of''; and
       (C) by striking ``one or more of the following'' and 
     inserting ``carrying out the resource and referral activities 
     described in subsection (b), and for one or more of the 
     activities described in subsection (c).'';
       (2) in paragraph (1), by inserting before the period the 
     following: ``, including providing comprehensive consumer 
     education to parents and the public, referrals that honor 
     parental choice, and activities designed to improve the 
     quality and availability of child care'';

[[Page S 13005]]

       (3) by striking ``(1) Resource and Referral Programs.--
     Operating'' and inserting the following:
       ``(b) Resource and Referral Programs.--The activities 
     described in this subsection are operating'';
       (4) by redesignating paragraphs (2) through (5) as 
     paragraphs (1) through (4), respectively;
       (5) by inserting before paragraph (1) (as so redesignated) 
     the following:
       ``(c) Other Activities.--The activities described in this 
     section are the following:''; and
       (6) by adding at the end thereof the following:
       ``(5) Before- and after-school activities.--Increasing the 
     availability of before- and after-school care.
       ``(6) Infant care.--Increasing the availability of child 
     care for infants under the age of 18 months.
       ``(7) Nontraditional work hours.--Increasing the 
     availability of child care between the hours of 5:00 p.m. and 
     8:00 a.m.
       ``(d) Nondiscrimination.--With respect to child care 
     providers that comply with applicable State law but which are 
     otherwise not required to be licensed by the State, the 
     State, in carrying out this section, may not discriminate 
     against such a provider if such provider desires to 
     participate in resource and referral activities carried out 
     under subsection (b).''.
       (f) Repeal.--Section 658H of the Child Care and Development 
     Block Grant Act of 1990 (42 U.S.C. 9858f) is repealed.
       (g) Enforcement.--Section 658I(b)(2) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)(2)) 
     is amended--
       (1) in the matter following clause (ii) of subparagraph 
     (A), by striking ``finding and that'' and all that follows 
     through the period and inserting ``finding and may impose 
     additional program requirements on the State, including a 
     requirement that the State reimburse the Secretary for any 
     funds that were improperly expended for purposes prohibited 
     or not authorized by this subchapter, that the Secretary 
     deduct from the administrative portion of the State allotment 
     for the following fiscal year an amount that is less than or 
     equal to any improperly expended funds, or a combination of 
     such options.''; and
       (2) by striking subparagraphs (B) and (C).
       (h) Reports.--Section 658K of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858i) is 
     amended--
       (1) in the section heading, by striking ``ANNUAL REPORT'' 
     and inserting ``REPORTS''; and
       (2) in subsection (a)--
       (A) in the subsection heading, by striking ``Annual 
     Report'' and inserting ``Reports'';
       (B) by striking ``December 31, 1992, and annually 
     thereafter'' and inserting ``December 31, 1996, and every 2 
     years thereafter'';
       (C) in paragraph (2)--
       (i) in subparagraph (A), by inserting before the semicolon 
     ``and the types of child care programs under which such 
     assistance is provided'';
       (ii) by striking subparagraph (B); and
       (iii) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively;
       (D) by striking paragraph (4);
       (E) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively;
       (F) in paragraph (4), as so redesignated, by striking 
     ``and'' at the end thereof;
       (G) in paragraph (5), as so redesignated, by adding ``and'' 
     at the end thereof; and
       (H) by inserting after paragraph (5), as so redesignated, 
     the following new paragraph:
       ``(6) describing the extent and manner to which the 
     resource and referral activities are being carried out by the 
     State;''.
       (i) Report by Secretary.--Section 658L of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858j) is 
     amended--
       (1) by striking ``1993'' and inserting ``1997'';
       (2) by striking ``annually'' and inserting ``bi-annually''; 
     and
       (3) by striking ``Education and Labor'' and inserting 
     ``Economic and Educational Opportunities''.
       (j) Allotments.--Section 658O of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (1) in subsection (c), by adding at the end thereof the 
     following new paragraph:
       ``(6) Construction or Renovation of Facilities.--
       ``(A) Request for use of funds.--An Indian tribe or tribal 
     organization may submit to the Secretary a request to use 
     amounts provided under this subsection for construction or 
     renovation purposes.
       ``(B) Determination.--With respect to a request submitted 
     under subparagraph (A), and except as provided in 
     subparagraph (C), upon a determination by the Secretary that 
     adequate facilities are not otherwise available to an Indian 
     tribe or tribal organization to enable such tribe or 
     organization to carry out child care programs in accordance 
     with this subchapter, and that the lack of such facilities 
     will inhibit the operation of such programs in the future, 
     the Secretary may permit the tribe or organization to use 
     assistance provided under this subsection to make payments 
     for the construction or renovation of facilities that will be 
     used to carry out such programs.
       ``(C) Limitation.--The Secretary may not permit an Indian 
     tribe or tribal organization to use amounts provided under 
     this subsection for construction or renovation if such use 
     will result in a decrease in the level of child care services 
     provided by the tribe or organization as compared to the 
     level of such services provided by the tribe or organization 
     in the fiscal year preceding the year for which the 
     determination under subparagraph (A) is being made.
       ``(D) Uniform procedures.--The Secretary shall develop and 
     implement uniform procedures for the solicitation and 
     consideration of requests under this paragraph.''; and
       (2) in subsection (e)--
       (A) in paragraph (1), by striking ``Any'' and inserting 
     ``Except as provided in paragraph (4), any''; and
       (B) by adding at the end thereof the following new 
     paragraph:
       ``(4) Indian tribes or tribal organizations.--Any portion 
     of a grant or contract made to an Indian tribe or tribal 
     organization under subsection (c) that the Secretary 
     determines is not being used in a manner consistent with the 
     provision of this subchapter in the period for with the grant 
     or contract is made available, shall be reallocated by the 
     Secretary to other tribes or organization that have submitted 
     applications under subsection (c) in proportion to the 
     original allocations to such tribes or organization.''.
       (k) Definitions.--Section 658P of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n) is 
     amended--
       (1) in paragraph (2), in the first sentence by inserting 
     ``or as a deposit for child care services if such a deposit 
     is required of other children being cared for by the 
     provider'' after ``child care services''; and
       (2) in paragraph (5)(B)--
       (A) by inserting ``great grandchild, sibling (if the 
     provider lives in a separate residence),'' after 
     ``grandchild,'';
       (B) by striking ``is registered and''; and
       (C) by striking ``State'' and inserting ``applicable''.
       (l) Application of Subchapter.--The Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) 
     is amended by adding at the end thereof the following new 
     section:

     ``SEC. 658T. APPLICATION TO OTHER PROGRAMS.

       ``Notwithstanding any other provision of law, a State that 
     uses funding for child care services under any Federal 
     program shall ensure that activities carried out using such 
     funds meet the requirements, standards, and criteria of this 
     subchapter and the regulations promulgated under this 
     subchapter. Such sums shall be administered through a uniform 
     State plan. To the maximum extent practicable, amounts 
     provided to a State under such programs shall be transferred 
     to the lead agency and integrated into the program 
     established under this subchapter by the State.''.

     SEC. 312. SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that--
       (1) the availability and accessibility of quality child 
     care will be critical to any welfare reform effort;
       (2) as parents move from welfare into the workforce or into 
     job preparation and education, child care must be affordable 
     and safe;
       (3) whether parents are pursuing job training, 
     transitioning off welfare, or are already in the work force 
     and attempting to remain employed, no parent can be expected 
     to leave his or her child in a dangerous situation;
       (4) affordable and accessible child care is a prerequisite 
     for job training and for entering the workforce; and
       (5) studies have shown that the lack of quality child care 
     is the most frequently cited barrier to employment and self-
     sufficiency.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Federal Government has a responsibility to provide 
     funding and leadership with respect to child care.

     SEC. 313. REPEALS AND TECHNICAL AND CONFORMING AMENDMENTS.

       (a) State Dependent Care Development Grants Act.--The State 
     Dependent Care Development Grants Act (42 U.S.C. 9871 et 
     seq.) is repealed.
       (b) Child Development Associate Scholarship Assistance Act 
     of 1985.--The Child Development Associate Scholarship 
     Assistance Act of 1985 (42 U.S.C. 10901 et seq.) is repealed.
       (c) Additional Conforming Amendments.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of the Congress and the Director of 
     the Office of Management and Budget, the Secretary of Health 
     and Human Services shall prepare and submit to the Congress a 
     legislative proposal in the form of an implementing bill 
     containing technical and conforming amendments to reflect the 
     amendments and repeals made by this Act.
       (2) Submission to congress.--Not later than 6 months after 
     the date of enactment of this Act, the Secretary of Health 
     and Human Services shall submit the implementing bill 
     referred to under paragraph (1).
                     Subtitle B--At-Risk Child Care

     SEC. 321. PROVISION OF CHILD CARE TO CERTAIN LOW-INCOME 
                   FAMILIES.

       (a) In General.--Each State agency administering the State 
     plan approved under part A of title IV of the Social Security 
     Act may, to the extent that it determines that resources are 
     available, provide child care in accordance with the 
     requirements of the Child Care and Development Block Grant 
     Act of 1990 (42 U.S.C. 9858 et seq.) to any low-income family 
     that the State determines--

[[Page S 13006]]

       (1) is not receiving transitional aid under the State plan 
     approved under part A of title IV of the Social Security Act;
       (2) needs such care in order to work; and
       (3) would be at risk of becoming eligible for transitional 
     aid under the State plan approved under such part if such 
     care were not provided.

     SEC. 322. USE OF FUNDS.

       Amounts expended by the State agency for child care under 
     section 321 shall be treated as amounts for which payment may 
     be made to a State under section 323 only to the extent that 
     such amounts are expended to provide child care in accordance 
     with the requirements of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858 et seq.).

     SEC. 323. PAYMENTS TO STATES.

       (a) Payment Amount.--Each State shall be entitled to 
     payment from the Secretary in an amount equal to the lesser 
     of--
       (1) the Federal medical assistance percentage (as defined 
     in section 1905(b) of the Social Security Act (42 U.S.C. 
     1396d(b)) of the expenditures by the State in providing child 
     care services pursuant to this section, and in administering 
     the provision of such child care services, for any fiscal 
     year; or
       (2) the limitation determined under subsection (b) with 
     respect to the State for the fiscal year.
       (b) Limitation.--
       (1) Limitation described.--The limitation determined under 
     this subsection with respect to a State for any fiscal year 
     is the amount that bears the same ratio to the amount 
     specified in paragraph (2) for such fiscal year as the number 
     of children residing in the State in the second year 
     preceding such fiscal year bears to the number of children 
     residing in the United States in such second preceding fiscal 
     year.
       (2) Amount specified.--The amount specified in this 
     subparagraph is $300,000,000 for fiscal year 1996, and each 
     fiscal year thereafter.
       (3) Carryforward of state limitation.--If the limitation 
     determined under paragraph (1) with respect to a State for a 
     fiscal year exceeds the amount paid to the State under this 
     section for the fiscal year, the limitation determined under 
     this subsection with respect to the State for the immediately 
     succeeding fiscal year shall be increased by the amount of 
     such excess.

     SEC. 324. STATE DEFINED.

       For purposes of this subtitle, the term ``State'' shall 
     have the meaning given such term in section 1101(1) of the 
     Social Security Act (42 U.S.C. 1301(1)) with respect to the 
     use of such term in title IV of such Act (42 U.S.C. 601 et 
     seq.).

     SEC. 325. APPROPRIATIONS.

       For fiscal year 1996 and each succeeding fiscal year, there 
     are authorized to be appropriated and there are appropriated 
     $300,000,000 for the purpose of carrying out the provisions 
     of this title.
                 TITLE IV--CHILD SUPPORT RESPONSIBILITY

     SEC. 400. SHORT TITLE.

       This title may be cited as the ``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. 401. 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(a)(9), 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, if application is made for 
     services under this part;''; and
       (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 not receiving assistance 
     under part A'' 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)'';
       (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.
       (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) (42 U.S.C. 654(23)) 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. 402. 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 inserting ``except as otherwise specifically 
     provided in section 464 or 466(a)(3),'' after ``is 
     effective,''; 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 Aid Under 
     Part A of Title IV of the Social Security Act.--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 Aid Under Part A of 
     Title IV of the Social Security Act.--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(a)(1)(C) shall be taken 
     from each of--
       ``(A) the amounts received in a month which represent 
     payments for that month; and
       ``(B) the amounts received in a month which represent 
     payments for a prior month which were made by the absent 
     parent in that prior month;

     and shall be paid to the family without affecting its 
     eligibility for assistance or decreasing any amount otherwise 
     payable as assistance to such family during such month;'';
       (B) in paragraph (4), by striking ``or (B)'' and all that 
     follows through the period and inserting ``; then (B) from 
     any remainder, amounts equal to arrearages of such support 
     obligations assigned, pursuant to part A, to any other State 
     or States shall be paid to such other State or States and 
     used to pay any such arrearages (with appropriate 
     reimbursement of the Federal Government to the extent of its 
     participation in the financing); and then (C) any remainder 
     shall be paid to the family.''; and
       (3) by inserting after subsection (a), as redesignated, the 
     following new subsection:
       ``(b) Alternative Distribution in Case of Family Receiving 
     Aid Under Part A of Title IV of the Social Security Act.--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(a)(1)(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 

[[Page S 13007]]
     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 Aid Under Part A 
     of Title IV of the Social Security Act.--
       (1) In general.--Section 457(c) (42 U.S.C. 657(c)) is 
     amended to read as follows:
       ``(c) Distributions in Case of Family Not Receiving Aid 
     Under Part A of Title IV of the Social Security Act.--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).''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall become effective on October 1, 1999.
       (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--
       (1) under part D of title IV of the Social Security Act, 
     establishing a uniform nationwide standard for allocation of 
     child support collections from an obligor owing support to 
     more than 1 family; and
       (2) under part A of such title, 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 transitional aid, 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).
       (g) Effective Date.--The amendments made by this section 
     shall be effective with respect to calendar quarters 
     beginning on or after October 1, 1999 or earlier at State's 
     option.

     SEC. 403. RIGHTS TO NOTIFICATION AND HEARINGS.

       (a) In General.--Section 454 (42 U.S.C. 654), as amended by 
     section 402(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 meets standards established by the 
     Secretary and ensures prompt consideration and resolution of 
     complaints (but the resort to such procedure shall not stay 
     the enforcement of any support order); 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. 404. PRIVACY SAFEGUARDS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 454) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (23);
       (2) by striking the period at the end of paragraph (24) and 
     inserting ``; and''; and
       (3) by adding after paragraph (24) the following:
       ``(25) 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.

     SEC. 405. COOPERATION REQUIREMENTS AND GOOD CAUSE EXCEPTIONS.

       (a) Child Support Enforcement Requirements.--Section 454, 
     as amended by section 405, 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 at the end the following new paragraph:
       ``(26) provide that the State agency administering the plan 
     under this part--
       ``(A) will make the determination specified under paragraph 
     (4), 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 part A of this title and section 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) within 10 days after such individual is referred 
     to such State agency by the State agency administering the 
     program under part A or section 1912;
       ``(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 enactment of this provision, 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), and
       ``(F)(i) (where 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 or 
     section 1912 that this eligibility condition has been met; 
     and
       ``(ii) (where 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) 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;

[[Page S 13008]]

       ``(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(26), 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 who is presumptively eligible pursuant to 
     section 1920) shall not be eligible for medical assistance 
     under this title until such applicant--
       ``(A) has furnished to the agency administering the State 
     plan under part D of title IV the information specified in 
     section 454(26)(E); or
       ``(B) 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--
       ``(A) if such agency has not, within 10 days after such 
     individual was referred to such agency, provided the 
     notification required by section 454(26)(D)(iii), until such 
     notification is received; and
       ``(B) 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 the date of the enactment of this amendment (or such 
     earlier quarter as the State may select) for transitional aid 
     under part A of title IV of the Social Security Act or for 
     medical assistance under title XIX of such Act.

              PART II--PROGRAM ADMINISTRATION AND FUNDING

     SEC. 411. 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 year 1997, 69 percent,
       ``(B) for fiscal year 1998, 72 percent, and
       ``(C) for fiscal year 1999 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 1997 and each succeeding fiscal year (excluding 
     1-time capital expenditures for automation), reduced by the 
     percentage specified for such fiscal year under subsection 
     (a)(2) shall not be less than such total expenditures for 
     fiscal year 1996, reduced by 66 percent.''.

     SEC. 412. 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 411(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--

[[Page S 13009]]

       (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 402(a)(9), 
     and section 452(a)(4), a State which is determined as a 
     result of an audit to have submitted incomplete or unreliable 
     data pursuant to section 454(15)(B), shall be determined to 
     have submitted adequate data if the Secretary determines that 
     the extent of the incompleteness or unreliability of the data 
     is of a technical nature which does not adversely affect the 
     determination of the level of the State's performance.''.
       (2) Conforming amendments.--Subsections (d)(3)(A), (g)(1), 
     and (g)(3)(A) of section 452 (42 U.S.C. 652) are each amended 
     by striking ``403(h)'' and inserting ``455(e)''.
       (f) Effective Dates.--
       (1) Incentive adjustments.--
       (A) In general.--The amendments made by subsections (a), 
     (b), and (c) shall become effective on October 1, 1997, 
     except to the extent provided in subparagraph (B).
       (B) Exception.--Section 458 of the Social Security Act, as 
     in effect prior to the enactment of this section, shall be 
     effective for purposes of incentive payments to States for 
     fiscal years prior to fiscal year 1999.
       (2) Penalty reductions.--
       (A) In general.--The amendments made by subsection (d) 
     shall become effective with respect to calendar quarters 
     beginning on and after the date of the enactment of this Act.
       (B) Reductions.--The amendments made by subsection (e) 
     shall become effective with respect to calendar quarters 
     beginning on and after the date 1 which is year after the 
     date of the enactment of this Act.

     SEC. 413. 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. 414. 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 404(a) and 405, 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. 415. 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

[[Page S 13010]]

       ``(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 404(a)(2) and 414(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.--Section 455(a) (42 U.S.C. 655(a)) is 
     amended--
       (1) in paragraph (1)(B)--
       (A) by striking ``90 percent'' and inserting ``the percent 
     specified in paragraph (3)'';
       (B) by striking ``so much of''; and
       (C) by striking ``which the Secretary'' and all that 
     follows through ``thereof''; and
       (2) 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.
       ``(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).''.
       (c) Conforming Amendment.--Section 123(c) of the Family 
     Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is 
     repealed.

     SEC. 416. DIRECTOR OF CHILD SUPPORT ENFORCEMENT 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, 1998, 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. 417. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE 
                   PROGRAMS.

       Section 452 (42 U.S.C. 652), as amended by section 
     415(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 aid 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 2 
     percent, for the activities specified in subparagraphs (A), 
     (B), and (C) of paragraph (1).''.

     SEC. 418. 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 aid 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 child is 
     receiving aid to families with dependent children (or foster 
     care maintenance payments under part E), or formerly received 
     such aid or payments and the State is continuing to collect 
     support assigned to it under section 402(a)(9), 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:

[[Page S 13011]]

       ``(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 dependent children) receiving aid under 
     plans approved under part A (or E); and
       ``(2) families not receiving such aid.
       ``(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. 421. CENTRAL STATE AND CASE REGISTRY.

       Section 454A, as added by section 415(a)(2), is amended by 
     adding at the end the following new subsections:
       ``(e) Central Case Registry.--
       ``(1) In general.--The automated system required under this 
     section shall perform the functions, in accordance with the 
     provisions of this subsection, of a single central registry 
     containing records with respect to each case in which 
     services are being provided by the State agency (including, 
     on and after October 1, 1998, each order specified in section 
     466(a)(12)), using such standardized data elements (such as 
     names, social security numbers or other uniform 
     identification numbers, dates of birth, and case 
     identification numbers), and containing such other 
     information (such as information on case status) as the 
     Secretary may require.
       ``(2) Payment Records.--Each case record in the central 
     registry shall include a record of--
       ``(A) the amount of monthly (or other periodic) support 
     owed under the support order, and other amounts due or 
     overdue (including arrearages, interest or late payment 
     penalties, and fees);
       ``(B) all child support and related amounts collected 
     (including such amounts as fees, late payment penalties, and 
     interest on arrearages);
       ``(C) the distribution of such amounts collected; and
       ``(D) the birth date of the child for whom the child 
     support order is entered.
       ``(3) Updating and monitoring.--The State agency shall 
     promptly establish and maintain, and regularly monitor, case 
     records in the registry required by this subsection, on the 
     basis of--
       ``(A) information on administrative actions and 
     administrative and judicial proceedings and orders relating 
     to paternity and support;
       ``(B) information obtained from matches with Federal, 
     State, or local data sources;
       ``(C) information on support collections and distributions; 
     and
       ``(D) any other relevant information.
       ``(f) Data Matches and Other Disclosures of Information.--
     The automated system required under this section shall have 
     the capacity, and be used by the State agency, to extract 
     data at such times, and in such standardized format or 
     formats, as may be required by the Secretary, and to share 
     and match data with, and receive data from, other data bases 
     and data matching services, in order to obtain (or provide) 
     information necessary to enable the State agency (or 
     Secretary or other State or Federal agencies) to carry out 
     responsibilities under this part. Data matching activities of 
     the State agency shall include at least the following:
       ``(1) Data bank of child support orders.--Furnishing to the 
     Data Bank of Child Support Orders established under section 
     453(h) (and updating as necessary, with information, 
     including notice of expiration of orders) minimal information 
     specified by the Secretary on each child support case in the 
     central case registry.
       ``(2) Federal parent locator service.--Exchanging data with 
     the Federal Parent Locator Service for the purposes specified 
     in section 453.
       ``(3) Title iv-a 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) Intra- 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. 422. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT 
                   PAYMENTS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 404(a), 405, and 414(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 415(a)(2) and as amended by section 421, 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 2 working days after receipt (from the 
     directory of New Hires established under section 453(i) or 
     any other source) 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. 423. STATE DIRECTORY OF NEW HIRES.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 404(a), 405, 414(b), and 422(a)(2) 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:
       ``(28) provide that, on and after October 1, 1998, 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:

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

       ``(a) Establishment.--
       ``(1) In general.--Not later than October 1, 1998, each 
     State shall establish an automated directory (to be known as 
     the `State Directory of New Hires') which shall contain 
     information supplied in accordance with subsection (b) by 
     employers and labor organizations on each newly hired 
     employee.
       ``(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 

[[Page S 13012]]
     safety of the employee or compromise an ongoing investigation or 
     intelligence mission.
       ``(B) Governmental employers.--The term `employer' includes 
     any governmental entity.
       ``(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.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each employer (or labor organization) 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.
       ``(B) Multistate employers.--An employer who has employees 
     who are employed in 2 or more States may comply with 
     subparagraph (A) by transmitting the report described in 
     subparagraph (A) magnetically or electronically to the State 
     in which the greatest number of employees of the employer are 
     employed.
       ``(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;
       ``(B) the date the employee first receives wages or other 
     compensation from the employer; or
       ``(C) in the case of a payroll processing service or an 
     employer that processes more than one payroll and reports by 
     electronic or magnetic means, the first business day of the 
     week following the date on which the employee first 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 first class mail, magnetically, or 
     electronically.
       ``(d) Civil Money Penalties on Noncomplying Employers.--
       ``(1) In general.--An employer that fails to comply with 
     subsection (b) with respect to an employee shall be subject 
     to a civil money penalty of--
       ``(A) $25; or
       ``(B) $500 if, under State law, the failure is the result 
     of a conspiracy between the employer and the employee to not 
     supply the required report or to supply a false or incomplete 
     report.
       ``(2) Applicability of section 1128.--Section 1128 (other 
     than subsections (a) and (b) of such section) shall apply to 
     a civil money penalty under paragraph (1) of this subsection 
     in the same manner as such section applies to a civil money 
     penalty or proceeding under section 1128A(a).
       ``(e) 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.
       ``(f) Transmission of Information.--
       ``(1) Transmission of wage withholding notices to 
     employers.--Within 2 business days after the date information 
     regarding a newly hired employee is entered into the State 
     Directory of New Hires, the State agency enforcing the 
     employee's child support obligation shall transmit a notice 
     to the employer of the employee directing the employer to 
     withhold from the wages of the employee an amount equal to 
     the monthly (or other periodic) child support obligation of 
     the employee, unless the employee's wages are not subject to 
     withholding pursuant to section 466(b)(3).
       ``(2) Transmissions to the national directory of new 
     hires.--
       ``(A) New hire information.--Within 4 business days after 
     the State Directory of New Hires receives information from 
     employers pursuant to this section, the State Directory of 
     New Hires shall furnish the information to the National 
     Directory of New Hires.
       ``(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.
       ``(g) 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 (e)(2) to 
     locate individuals for purposes of establishing paternity and 
     establishing, modifying, and enforcing child support 
     obligations.
       ``(2) Verification of eligibility for certain programs.--A 
     State agency responsible for administering a program 
     specified in section 1137(b) shall have access to information 
     reported by employers pursuant to subsection (b) of this 
     section for purposes of verifying eligibility for the 
     program.
       ``(3) Administration of employment security and workers 
     compensation.--State agencies operating employment security 
     and workers' compensation programs shall have access to 
     information reported by employers pursuant to subsection (b) 
     for the purposes of administering such programs.''.
     SEC. 424. 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, without the need for a 
     judicial or administrative hearing.''.
       (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. 425. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

     unless all Federal and State agencies administering programs 
     under this part (including the entities established under 
     section 453) have access to information in such system or 
     network to the same extent as any other user of such system 
     or network.''.
     SEC. 426. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

       (a) Expanded Authority To Locate Individuals and Assets.--
     Section 453 (42 U.S.C. 653) is amended--
       (1) in subsection (a), by striking all that follows 
     ``subsection (c))'' and inserting ``, for 

[[Page S 13013]]
     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 the individual's social security number (or 
     numbers), most recent address, and the name, address, and 
     employer identification number of the individual's employer;
       ``(2) information on the individual's wages (or other 
     income) from, and benefits of, employment (including rights 
     to or enrollment in group health care coverage); and
       ``(3) information on the type, status, location, and amount 
     of any assets of, or debts owed by or to, any such 
     individual.'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``social security'' and all that follows through ``absent 
     parent'' and inserting ``information described in subsection 
     (a)''; and
       (B) in 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 Information From Federal Agencies.--
     Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th 
     sentence by inserting before the period ``in an amount which 
     the Secretary determines to be reasonable payment for the 
     information exchange (which amount shall not include payment 
     for the costs of obtaining, compiling, or maintaining the 
     information)''.
       (c) Reimbursement for Reports by State Agencies.--Section 
     453 (42 U.S.C. 653) is amended by adding at the end the 
     following:
       ``(g) The Secretary may reimburse Federal and State 
     agencies for the costs incurred by such entities in 
     furnishing information requested by the Secretary under this 
     section in an amount which the Secretary determines to be 
     reasonable payment for the information exchange (which amount 
     shall not include payment for the costs of obtaining, 
     compiling, or maintaining the information).''.
       (d) Technical Amendments.--
       (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
     463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
     and 663(f)) are each amended by inserting ``Federal'' before 
     ``Parent'' each place such term appears.
       (2) Section 453 (42 U.S.C. 653) is amended in the heading 
     by adding ``federal'' before ``parent''.
       (e) New Components.--Section 453 (42 U.S.C. 653), as 
     amended by subsection (c) of this section, is amended by 
     adding at the end the following:
       ``(h) Federal Case Registry of Child Support Orders.--
       ``(1) In general.--Not later than October 1, 1999, in order 
     to assist States in administering programs under State plans 
     approved under this part and programs funded under part A, 
     and for the other purposes specified in this section, the 
     Secretary shall establish and maintain in the Federal Parent 
     Locator Service an automated registry (which shall be known 
     as the `Federal Case Registry of Child Support Orders'), 
     which shall contain abstracts of support orders and other 
     information described in paragraph (2) with respect to each 
     case in each State case registry maintained pursuant to 
     section 454A(e), as furnished (and regularly updated), 
     pursuant to section 454A(f), by State agencies administering 
     programs under this part.
       ``(2) Case information.--The information referred to in 
     paragraph (1) with respect to a case shall be such 
     information as the Secretary may specify in regulations 
     (including the names, social security numbers or other 
     uniform identification numbers, and State case identification 
     numbers) to identify the individuals who owe or are owed 
     support (or with respect to or on behalf of whom support 
     obligations are sought to be established), and the State or 
     States which have the case.
       ``(i) National Directory of New Hires.--
       ``(1) In general.--In order to assist States in 
     administering programs under State plans approved under this 
     part and programs funded under part A, and for the other 
     purposes specified in this section, the Secretary shall, not 
     later than October 1, 1999, establish and maintain in the 
     Federal Parent Locator Service an automated directory to be 
     known as the National Directory of New Hires, which shall 
     contain the information supplied pursuant to section 
     453A(f)(2).
       ``(2) Administration of federal tax laws.--The Secretary of 
     the Treasury shall have access to the information in the 
     Federal Directory of New Hires for purposes of administering 
     section 32 of the Internal Revenue Code of 1986, or the 
     advance payment of the earned income tax credit under section 
     3507 of such Code, and verifying a claim with respect to 
     employment in a tax return.
       ``(j) Information Comparisons and Other Disclosures.--
       ``(1) Verification by social security administration.--
       ``(A) The Secretary shall transmit information on 
     individuals and employers maintained under this section to 
     the Social Security Administration to the extent necessary 
     for verification in accordance with subparagraph (B).
       ``(B) The Social Security Administration shall verify the 
     accuracy of, correct, or supply to the extent possible, and 
     report to the Secretary, the following information supplied 
     by the Secretary pursuant to subparagraph (A):
       ``(i) The name, social security number, and birth date of 
     each such individual.
       ``(ii) The employer identification number of each such 
     employer.
       ``(2) Information comparisons.--For the purpose of locating 
     individuals in a paternity establishment case or a case 
     involving the establishment, modification, or enforcement of 
     a support order, the Secretary shall--
       ``(A) compare information in the National Directory of New 
     Hires against information in the Federal Case Registry of 
     Child Support Orders not less often than every 2 business 
     days; and
       ``(B) within 2 such days after such a comparison reveals a 
     match with respect to an individual, report the information 
     to the State agency responsible for the case.
       ``(3) Information comparisons and disclosures of 
     information in all registries for title iv program 
     purposes.--To the extent and with the frequency that the 
     Secretary determines to be effective in assisting States to 
     carry out their responsibilities under programs operated 
     under this part and programs funded under part A, the 
     Secretary shall--
       ``(A) compare the information in each component of the 
     Federal Parent Locator Service maintained under this section 
     against the information in each other such component (other 
     than the comparison required by paragraph (2)), and report 
     instances in which such a comparison reveals a match with 
     respect to an individual to State agencies operating such 
     programs; and
       ``(B) disclose information in such registries to such State 
     agencies.
       ``(4) Provision of new hire information to the social 
     security administration.--The National Directory of New Hires 
     shall provide the Commissioner of Social Security with all 
     information in the National Directory, which shall be used to 
     determine the accuracy of payments under the supplemental 
     security income program under title XVI and in connection 
     with benefits under title II.
       ``(5) Research.--The Secretary may provide access to 
     information reported by employers pursuant to section 453A(b) 
     for research purposes found by the Secretary to be likely to 
     contribute to achieving the purposes of part A or this part, 
     but without personal identifiers.
       ``(k) Fees.--
       ``(1) For ssa verification.--The Secretary shall reimburse 
     the Commissioner of Social Security, at a rate negotiated 
     between the Secretary and the Commissioner, for the costs 
     incurred by the Commissioner in performing the verification 
     services described in subsection (j).
       ``(2) For information from state directories of new 
     hires.--The Secretary shall reimburse costs incurred by State 
     directories of new hires in furnishing information as 
     required by subsection (j)(3), at rates which the Secretary 
     determines to be reasonable (which rates shall not include 
     payment for the costs of obtaining, compiling, or maintaining 
     such information).
       ``(3) For information furnished to state and federal 
     agencies.--A State or Federal agency that receives 
     information from the Secretary pursuant to this section shall 
     reimburse the Secretary for costs incurred by the Secretary 
     in furnishing the information, at rates which the Secretary 
     determines to be reasonable (which rates shall include 
     payment for the costs of obtaining, verifying, maintaining, 
     and comparing the information).
       ``(l) Restriction on Disclosure and Use.--Information in 
     the Federal Parent Locator Service, and information resulting 
     from comparisons using such information, shall not be used or 
     disclosed except as expressly provided in this section, 
     subject to section 6103 of the Internal Revenue Code of 1986.
       ``(m) Information Integrity and Security.--The Secretary 
     shall establish and implement safeguards with respect to the 
     entities established under this section designed to--
       ``(1) ensure the accuracy and completeness of information 
     in the Federal Parent Locator Service; and
       ``(2) restrict access to confidential information in the 
     Federal Parent Locator Service to authorized persons, and 
     restrict use of such information to authorized purposes.''.
       (f) Quarterly Wage Reporting.--Section 1137(a)(3) (42 
     U.S.C. 1320b-7(a)(3)) is amended--
       (1) by inserting ``(including any governmental entity)'' 
     after ``employers'',
       (2) by striking ``except that'' and inserting ``except 
     that--'',
       (3) by inserting ``(A)'' before ``the Secretary of Labor'',
       (4) by striking ``paragraph (2)'' and inserting ``paragraph 
     (2), and'',
       (5) by indenting the text so as to align it with new 
     subparagraph (B) (as added by paragraph (6) of this 
     subsection); and
       (6) by adding at the end the following new subparagraph:
       ``(B) no report shall be filed with respect to an employee 
     of a Federal or State agency performing intelligence or 
     counterintelligence functions, if the head of such agency has 
     determined that filing a report with respect to the employee 
     could endanger the 

[[Page S 13014]]
     safety of the employee or compromise an ongoing investigation or 
     intelligence mission;''.
       (g) Conforming Amendments.--
       (1) To part d of title iv of the social security act.--
     Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
     follows:
       ``(B) the Federal Parent Locator Service established under 
     section 453;''.
       (2) To federal unemployment tax act.--Section 3304(a)(16) 
     of the Internal Revenue Code of 1986 is amended--
       (A) by striking ``Secretary of Health, Education, and 
     Welfare'' each place such term appears and inserting 
     ``Secretary of Health and Human Services'';
       (B) in subparagraph (B), by striking ``such information'' 
     and all that follows and inserting ``information furnished 
     under subparagraph (A) or (B) is used only for the purposes 
     authorized under such subparagraph;'';
       (C) by striking ``and'' at the end of subparagraph (A);
       (D) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (E) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) wage and unemployment compensation information 
     contained in the records of such agency shall be furnished to 
     the Secretary of Health and Human Services (in accordance 
     with regulations promulgated by such Secretary) as necessary 
     for the purposes of the National Directory of New Hires 
     established under section 453(i) of the Social Security Act, 
     and''.
       (3) To state grant program under title iii of the social 
     security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (8);
       (B) by striking ``and'' at the end of paragraph (9);
       (C) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (D) by adding after paragraph (10) the following:
       ``(11) The making of quarterly electronic reports, at such 
     dates, in such format, and containing such information, as 
     required by the Secretary of Health and Human Services under 
     section 453(i)(3), and compliance with such provisions as 
     such Secretary may find necessary to ensure the correctness 
     and verification of such reports.''.

     SEC. 427. USE OF SOCIAL SECURITY NUMBERS.

       (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
     666(a)), as amended by section 401(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 acknowledgements;
       ``(C) on all applications for motor vehicle licenses and 
     professional licenses; and
       ``(D) of decedents on death certificates.''.
       (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
     405(c)(2)(C)) is amended--
       (1) in clause (i), by striking ``may require'' and 
     inserting ``shall require'';
       (2) in clause (ii)--
       (A) by inserting after the first sentence the following: 
     ``In the administration of any law involving the issuance of 
     a marriage certificate or license, each State shall require 
     each party named in the certificate or license to furnish to 
     the State (or political subdivision thereof) or any State 
     agency having administrative responsibility for the law 
     involved, the social security number of the party.''; and
       (B) by striking ``Such numbers shall not be recorded on the 
     birth certificate.'' and inserting ``This clause shall not be 
     considered to authorize disclosure of such numbers except as 
     provided in the preceding sentence.'';
       (3) in clause (vi), by striking ``may'' and inserting 
     ``shall''; and
       (4) by adding at the end the following:
       ``(x) An agency of a State (or a political subdivision 
     thereof) charged with the administration of any law 
     concerning the issuance or renewal of a license, certificate, 
     permit, or other authorization to engage in a profession, an 
     occupation, or a commercial activity shall require all 
     applicants for issuance or renewal of the license, 
     certificate, permit, or other authorization to provide the 
     applicant's social security number to the agency for the 
     purpose of administering such laws, and for the purpose of 
     responding to requests for information from an agency 
     operating pursuant to part D of title IV.
       ``(xi) All divorce decrees, support orders, and paternity 
     determinations issued, and all paternity acknowledgments 
     made, in each State shall include the social security number 
     of each party to the decree, order, determination, or 
     acknowledgement in the records relating to the matter.''.

           PART IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

     SEC. 431. ADOPTION OF UNIFORM STATE LAWS.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     401(a) and 427(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 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'.
       ``(D) 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. 432. 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)'';
       (12) in subsection (h) (as so redesignated)--
       (A) in paragraph (2), by inserting ``including the duration 
     of current payments and other obligations of support'' before 
     the comma; and
       (B) in paragraph (3), by inserting ``arrears under'' after 
     ``enforce''; and
       (13) by adding at the end the following new subsection:

[[Page S 13015]]

       ``(i) Registration for Modification.--If there is no 
     individual contestant or child residing in the issuing State, 
     the party or support enforcement agency seeking to modify, or 
     to modify and enforce, a child support order issued in 
     another State shall register that order in a State with 
     jurisdiction over the nonmovant for the purpose of 
     modification.''.

     SEC. 433. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
     as amended by section 424(b), is amended--
       (1) in subsection (a)(2), in the first sentence, to read as 
     follows: ``Expedited administrative and judicial procedures 
     (including the procedures specified in subsection (c)) for 
     establishing paternity and for establishing, modifying, and 
     enforcing support obligations.''; and
       (2) by adding after subsection (b) the following new 
     subsection:
       ``(c) The procedures specified in this subsection are the 
     following:
       ``(1) Procedures which give the State agency the authority 
     (and recognize and enforce the authority of State agencies of 
     other States), without the necessity of obtaining an order 
     from any other judicial or administrative tribunal (but 
     subject to due process safeguards, including (as appropriate) 
     requirements for notice, opportunity to contest the action, 
     and opportunity for an appeal on the record to an independent 
     administrative or judicial tribunal), to take the following 
     actions relating to establishment or enforcement of orders:
       ``(A) To order genetic testing for the purpose of paternity 
     establishment as provided in section 466(a)(5).
       ``(B) To enter a default order, upon a showing of service 
     of process and any additional showing required by State law--
       ``(i) establishing paternity, in the case of any putative 
     father who refuses to submit to genetic testing; and
       ``(ii) establishing or modifying a support obligation, in 
     the case of a parent (or other obligor or obligee) who fails 
     to respond to notice to appear at a proceeding for such 
     purpose.
       ``(C) To subpoena any financial or other information needed 
     to establish, modify, or enforce an order, and to sanction 
     failure to respond to any such subpoena.
       ``(D) To require all entities in the State (including for-
     profit, nonprofit, and governmental employers) to provide 
     promptly, in response to a request by the State agency of 
     that or any other State administering a program under this 
     part, information on the employment, compensation, and 
     benefits of any individual employed by such entity as an 
     employee or contractor, and to sanction failure to respond to 
     any such request.
       ``(E) To obtain access, subject to safeguards on privacy 
     and information security, to the following records (including 
     automated access, in the case of records maintained in 
     automated data bases):
       ``(i) Records of other State and local government agencies, 
     including--

       ``(I) vital statistics (including records of marriage, 
     birth, and divorce);
       ``(II) State and local tax and revenue records (including 
     information on residence address, employer, income and 
     assets);
       ``(III) records concerning real and titled personal 
     property;
       ``(IV) records of occupational and professional licenses, 
     and records concerning the ownership and control of 
     corporations, partnerships, and other business entities;
       ``(V) employment security records;
       ``(VI) records of agencies administering public assistance 
     programs;
       ``(VII) records of the motor vehicle department; and
       ``(VIII) corrections records.

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

       ``(I) customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on individuals who owe or are owed support (or 
     against or with respect to whom a support obligation is 
     sought) held by financial institutions (subject to 
     limitations on liability of such entities arising from 
     affording such access).
       ``(F) To order income withholding in accordance with 
     subsection (a)(1) and (b) of section 466.
       ``(G) In cases where support is subject to an assignment 
     under section 402(a)(9), 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 415(a)(2) and as amended by sections 421 and 
     422(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).''.

     SEC. 434. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     401(a), 427, and 431, is amended by adding at the end the 
     following:
       ``(15) Procedures under which--
       ``(A)(i) the State shall respond within 5 business days to 
     a request made by another State to enforce a support order; 
     and
       ``(ii) the term `business day' means a day on which State 
     offices are open for regular business;
       ``(B) the State may, by electronic or other means, transmit 
     to another State a request for assistance in a case involving 
     the enforcement of a support order, which request--
       ``(i) shall include such information as will enable the 
     State to which the request is transmitted to compare the 
     information about the case to the information in the data 
     bases of the State; and
       ``(ii) shall constitute a certification by the requesting 
     State--

       ``(I) of the amount of support under the order the payment 
     of which is in arrears; and
       ``(II) that the requesting State has complied with all 
     procedural due process requirements applicable to the case;

       ``(C) if the State provides assistance to another State 
     pursuant to this paragraph with respect to a case, neither 
     State shall consider the case to be transferred to the 
     caseload of such other State; and
       ``(D) the State shall maintain records of--
       ``(i) the number of such requests for assistance received 
     by the State;
       ``(ii) the number of cases for which the State collected 
     support in response to such a request; and
       ``(iii) the amount of such collected support.''.

     SEC. 435. USE OF FORMS IN INTERSTATE ENFORCEMENT.

       (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is 
     amended--

[[Page S 13016]]

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

                    PART V--PATERNITY ESTABLISHMENT

     SEC. 441. 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, subject 
     to the right of any signatory to rescind the acknowledgment 
     within 60 days.
       ``(ii)(I) Procedures under which, after the 60-day period 
     referred to in clause (i), a signed acknowledgment of 
     paternity may be challenged in court only on the basis of 
     fraud, duress, or material mistake of fact, with the burden 
     of proof upon the challenger, and under which the legal 
     responsibilities (including child support obligations) of any 
     signatory arising from the acknowledgment may not be 
     suspended during the challenge, except for good cause shown.
       ``(II) Procedures under which, after the 60-day period 
     referred to in clause (i), a minor who signs an 
     acknowledgment of paternity other than in the presence of a 
     parent or court-appointed guardian ad litem may rescind the 
     acknowledgment in a judicial or administrative proceeding, 
     until the earlier of--
       ``(aa) attaining the age of majority; or
       ``(bb) the date of the first judicial or administrative 
     proceeding brought (after the signing) to establish a child 
     support obligation, visitation rights, or custody rights with 
     respect to the child whose paternity is the subject of the 
     acknowledgment, and at which the minor is represented by a 
     parent, guardian ad litem, or attorney.
       ``(E) Procedures under which no judicial or administrative 
     proceedings are required or permitted to ratify an 
     unchallenged acknowledgment of paternity.
       ``(F) Procedures requiring--
       ``(i) that the State admit into evidence, for purposes of 
     establishing paternity, results of any genetic test that is--
       ``(I) of a type generally acknowledged, by accreditation 
     bodies designated by the Secretary, as reliable evidence of 
     paternity; and
       ``(II) performed by a laboratory approved by such an 
     accreditation body;
       ``(ii) that any objection to genetic testing results must 
     be made in writing not later than a specified number of days 
     before any hearing at which such results may be introduced 
     into evidence (or, at State option, not later than a 
     specified number of days after receipt of such results); and
       ``(iii) that, if no objection is made, the test results are 
     admissible as evidence of paternity without the need for 
     foundation testimony or other proof of authenticity or 
     accuracy.''; and
       (3) by adding after subparagraph (H) the following new 
     subparagraphs:
       ``(I) Procedures providing that the parties to an action to 
     establish paternity are not entitled to a jury trial.
       ``(J) 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.
       ``(N) Procedures under which voluntary acknowledgements and 
     adjudications of paternity by judicial or administrative 
     processes are filed with the State registry of birth records 
     for comparison with information in the central case 
     registry.''.
       (b) State Plans.--Section 454(a)(7) (42 U.S.C. 654(a)(7)) 
     is amended to read as follows:
       ``(7) provide for entering into cooperative arrangements 
     with--
       ``(A) appropriate courts and law enforcement officials to--
       ``(i) assist the agency administering the plan, and
       ``(ii) to assist such courts and officials and such agency 
     with respect to matters of common concern; and
       ``(B) the State registry of birth records to record 
     voluntary acknowledgments and adjudications of paternity and 
     to make such records available for data matches and other 
     purposes required by the agency administering the plan;''.
       (c) 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.
       (d) Technical Amendment.--Section 468 (42 U.S.C. 668) is 
     amended by striking ``a simple civil process for voluntarily 
     acknowledging paternity and''.

     SEC. 442. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

       (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 
     654(23)) is amended--
       (1) by striking ``(23)'' and inserting ``(23)(A)'';
       (2) by inserting ``and'' after the semicolon; and
       (3) by adding at the end the following new subparagraph:
       ``(B) 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 followup 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 

[[Page S 13017]]
     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.
       PART VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

     SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``National Child Support 
     Guidelines Commission'' (in this section referred to as the 
     ``Commission'').
       (b) General Duties.--
       (1) In general.--The Commission shall determine--
       (A) whether it is appropriate to develop a national child 
     support guideline for consideration by the Congress or for 
     adoption by individual States; or
       (B) based on a study of various guideline models, the 
     benefits and deficiencies of such models, and any needed 
     improvements.
       (2) Development of models.--If the Commission determines 
     under paragraph (1)(A) that a national child support 
     guideline is needed or under paragraph (1)(B) that 
     improvements to guideline models are needed, the Commission 
     shall develop such national guideline or improvements.
       (c) Matters for Consideration by the Commission.--In making 
     the recommendations concerning guidelines required under 
     subsection (b), the Commission shall consider--
       (1) the adequacy of State child support guidelines 
     established pursuant to section 467 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 Chairman of the Committee 
     on Finance of the Senate, and 1 shall be appointed by the 
     ranking minority member of the Committee;
       (ii) 2 shall be appointed by the Chairman of the Committee 
     on Ways and Means of the House of Representatives, and 1 
     shall be appointed by the ranking minority member of the 
     Committee; and
       (iii) 6 shall be appointed by the Secretary of Health and 
     Human Services.
       (B) Qualifications of members.--Members of the Commission 
     shall have expertise and experience in the evaluation and 
     development of child support guidelines. At least 1member 
     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. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
                   CHILD SUPPORT ORDERS.

       Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
     read as follows:
       ``(10)(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. 461. FEDERAL INCOME TAX REFUND OFFSET.

       (a) Changed Order of Refund Distribution Under Internal 
     Revenue Code.--Section 6402(c) of the Internal Revenue Code 
     of 1986 (relating to offset of past-due support against 
     overpayments) is amended by striking the third sentence.
       (b) Elimination of Disparities in Treatment of Assigned and 
     Nonassigned 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(a)(9) 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(a)(9) or section 471(a)(17); 
     and
       ``(B) to or on behalf of the child to whom the support was 
     owed, in the case of past-due support not so assigned.'';
       (C) in paragraph (3)--
       (i) by striking ``or (2)'' each place it appears; and
       (ii) in subparagraph (B), by striking ``under paragraph 
     (2)'' and inserting ``on account of past-due support 
     described in paragraph (2)(B)''.
       (2) Notices of past-due support.--Section 464(b) (42 U.S.C. 
     664(b)) is amended--
       (A) by striking ``(b)(1)'' and inserting ``(b)''; and
       (B) by striking paragraph (2).
       (3) Definition of past-due support.--Section 464(c) (42 
     U.S.C. 664(c)) is amended--
       (A) by striking ``(c)(1) Except as provided in paragraph 
     (2), as'' and inserting ``(c) As''; and
       (B) by striking paragraphs (2) and (3).
       (c) Effective Date.--The amendments made by this section 
     shall become effective October 1, 1999.
     SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

       (a) Amendment to Internal Revenue Code.--Section 6305(a) of 
     the Internal Revenue Code of 1986 (relating to collection of 
     certain liability) is amended--
       (1) in paragraph (1), by inserting ``except as provided in 
     paragraph (5)'' after ``collected'';
       (2) by striking ``and'' at the end of paragraph (3);
       (3) by striking the period at the end of paragraph (4) and 
     inserting ``, and'';
       (4) by adding at the end the following new paragraph:

[[Page S 13018]]

       ``(5) no additional fee may be assessed for adjustments to 
     an amount previously certified pursuant to such section 
     452(b) with respect to the same obligor.''; and
       (5) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears and inserting ``Secretary of 
     Health and Human Services''.
       (b) Effective Date.--The amendments made by this section 
     shall become effective October 1, 1997.

     SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL 
                   EMPLOYEES.

       (a) Consolidation and Streamlining of Authorities.--Section 
     459 (42 U.S.C. 659) is amended--
       (1) in the heading, by inserting ``income withholding,'' 
     before ``garnishment'';
       (2) in subsection (a)--
       (A) by striking ``section 207'' and inserting ``section 207 
     and section 5301 of title 38, United States Code''; and
       (B) by striking ``to legal process'' and all that follows 
     through the period and inserting ``to withholding in 
     accordance with State law pursuant to subsections (a)(1) and 
     (b) of section 466 and regulations of the Secretary 
     thereunder, and to any other legal process brought, by a 
     State agency administering a program under this part or by an 
     individual obligee, to enforce the legal obligation of such 
     individual to provide child support or alimony.'';
       (3) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Except as otherwise provided herein, each entity 
     specified in subsection (a) shall be subject, with respect to 
     notice to withhold income pursuant to subsection (a)(1) or 
     (b) of section 466, or to any other order or process to 
     enforce support obligations against an individual (if such 
     order or process contains or is accompanied by sufficient 
     data to permit prompt identification of the individual and 
     the moneys involved), to the same requirements as would apply 
     if such entity were a private person.'';
       (4) by striking subsections (c) and (d) and inserting the 
     following new subsections:
       ``(c)(1) The head of each agency subject to the 
     requirements of this section shall--
       ``(A) designate an agent or agents to receive orders and 
     accept service of process; and
       ``(B) publish--
       ``(i) in the appendix of such regulations;
       ``(ii) in each subsequent republication of such 
     regulations; and
       ``(iii) annually in the Federal Register,
     the designation of such agent or agents, identified by title 
     of position, mailing address, and telephone number.
       ``(2) Whenever an agent designated pursuant to paragraph 
     (1) receives notice pursuant to subsection (a)(1) or (b) of 
     section 466, or is effectively served with any order, 
     process, or interrogatories, with respect to an individual's 
     child support or alimony payment obligations, such agent 
     shall--
       ``(A) as soon as possible (but not later than 15 days) 
     thereafter, send written notice of such notice or service 
     (together with a copy thereof) to such individual at his duty 
     station or last-known home address;
       ``(B) not later than 30 days (or such longer period as may 
     be prescribed by applicable State law) after receipt of a 
     notice pursuant to subsection (a)(1) or (b) of section 466, 
     comply with all applicable provisions of such section 466; 
     and
       ``(C) not later than 30 days (or such longer period as may 
     be prescribed by applicable State law) after effective 
     service of any other such order, process, or interrogatories, 
     respond thereto.
       ``(d) In the event that a governmental entity receives 
     notice or is served with process, as provided in this 
     section, concerning amounts owed by an individual to more 
     than 1 person--
       ``(1) support collection under section 466(b) must be given 
     priority over any other process, as provided in section 
     466(b)(7);
       ``(2) allocation of moneys due or payable to an individual 
     among claimants under section 466(b) shall be governed by the 
     provisions of such section 466(b) and regulations thereunder; 
     and
       ``(3) such moneys as remain after compliance with 
     subparagraphs (A) and (B) shall be available to satisfy any 
     other such processes on a first-come, first-served basis, 
     with any such process being satisfied out of such moneys as 
     remain after the satisfaction of all such processes which 
     have been previously served.'';
       (5) in subsection (f)--
       (A) by striking ``(f)'' and inserting ``(f)(1)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) No Federal employee whose duties include taking 
     actions necessary to comply with the requirements of 
     subsection (a) with regard to any individual shall be subject 
     under any law to any disciplinary action or civil or criminal 
     liability or penalty for, or on account of, any disclosure of 
     information made by him in connection with the carrying out 
     of such duties.''; and
       (6) by adding at the end the following new subsections:
       ``(g) Authority to promulgate regulations for the 
     implementation of the provisions of this section shall, 
     insofar as the provisions of this section are applicable to 
     moneys due from (or payable by)--
       ``(1) the executive branch of the Federal Government 
     (including in such branch, for the purposes of this 
     subsection, the territories and possessions of the United 
     States, the United States Postal Service, the Postal Rate 
     Commission, any wholly owned Federal corporation created by 
     an Act of Congress, and the government of the District of 
     Columbia), be vested in the President (or the President's 
     designee);
       ``(2) the legislative branch of the Federal Government, be 
     vested jointly in the President pro tempore of the Senate and 
     the Speaker of the House of Representatives (or their 
     designees); and
       ``(3) the judicial branch of the Federal Government, be 
     vested in the Chief Justice of the United States (or the 
     Chief Justice's designee).
       ``(h) Subject to subsection (i), moneys paid or payable to 
     an individual which are considered to be based upon 
     remuneration for employment, for purposes of this section--
       ``(1) consist of--
       ``(A) compensation paid or payable for personal services of 
     such individual, whether such compensation is denominated as 
     wages, salary, commission, bonus, pay, allowances, or 
     otherwise (including severance pay, sick pay, and incentive 
     pay);
       ``(B) periodic benefits (including a periodic benefit as 
     defined in section 228(h)(3)) or other payments--
       ``(i) under the insurance system established by title II;
       ``(ii) under any other system or fund established by the 
     United States which provides for the payment of pensions, 
     retirement or retired pay, annuities, dependents' or 
     survivors' benefits, or similar amounts payable on account of 
     personal services performed by the individual or any other 
     individual;
       ``(iii) as compensation for death under any Federal 
     program;
       ``(iv) under any Federal program established to provide 
     `black lung' benefits; or
       ``(v) by the Secretary of Veterans Affairs as pension, or 
     as compensation for a service-connected disability or death 
     (except any compensation paid by such Secretary to a former 
     member of the Armed Forces who is in receipt of retired or 
     retainer pay if such former member has waived a portion of 
     his retired pay in order to receive such compensation); and
       ``(C) worker's compensation benefits paid under Federal or 
     State law; but
       ``(2) do not include any payment--
       ``(A) by way of reimbursement or otherwise, to defray 
     expenses incurred by such individual in carrying out duties 
     associated with his employment; or
       ``(B) as allowances for members of the uniformed services 
     payable pursuant to chapter 7 of title 37, United States 
     Code, as prescribed by the Secretaries concerned (defined by 
     section 101(5) of such title) as necessary for the efficient 
     performance of duty.
       ``(i) In determining the amount of any moneys due from, or 
     payable by, the United States to any individual, there shall 
     be excluded amounts which--
       ``(1) are owed by such individual to the United States;
       ``(2) are required by law to be, and are, deducted from the 
     remuneration or other payment involved, including Federal 
     employment taxes, and fines and forfeitures ordered by court-
     martial;
       ``(3) are properly withheld for Federal, State, or local 
     income tax purposes, if the withholding of such amounts is 
     authorized or required by law and if amounts withheld are not 
     greater than would be the case if such individual claimed all 
     the dependents that the individual was entitled to (the 
     withholding of additional amounts pursuant to section 3402(i) 
     of the Internal Revenue Code of 1986 may be permitted only 
     when such individual presents evidence of a tax obligation 
     which supports the additional withholding);
       ``(4) are deducted as health insurance premiums;
       ``(5) are deducted as normal retirement contributions (not 
     including amounts deducted for supplementary coverage); or
       ``(6) are deducted as normal life insurance premiums from 
     salary or other remuneration for employment (not including 
     amounts deducted for supplementary coverage).
       ``(j) For purposes of this section--''.
       (b) Transfer of Subsections.--Subsections (a) through (d) 
     of section 462 (42 U.S.C. 662), are transferred and 
     redesignated as paragraphs (1) through (4), respectively, of 
     section 459(j) (as added by subsection (a)(6)), and the left 
     margin of each of such paragraphs (1) through (4) is indented 
     2 ems to the right of the left margin of subsection (j) (as 
     added by subsection (a)(6)).
       (c) Conforming Amendments.--
       (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
     661) are repealed.
       (2) To title 5, united states code.--Section 5520a of title 
     5, United States Code, is amended, in subsections (h)(2) and 
     (i), by striking ``sections 459, 461, and 462 of the Social 
     Security Act (42 U.S.C. 659, 661, and 662)'' each place it 
     appears and inserting ``section 459 of the Social Security 
     Act (42 U.S.C. 659)''.
       (d) Military Retired and Retainer Pay.--Section 1408 of 
     title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``and'';
       (ii) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following new subparagraph:
       ``(D) any administrative or judicial tribunal of a State 
     competent to enter orders for support or maintenance 
     (including a State agency administering a State program under 
     part D of title IV of the Social Security Act).'';

[[Page S 13019]]

       (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. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS 
                   OF THE ARMED FORCES.

       (a) Availability of Locator Information.--
       (1) Maintenance of address information.--The Secretary of 
     Defense shall establish a centralized personnel locator 
     service that includes the address of each member of the Armed 
     Forces under the jurisdiction of the Secretary. Upon request 
     of the Secretary of Transportation, addresses for members of 
     the Coast Guard shall be included in the centralized 
     personnel locator service.
       (2) Type of address.--
       (A) Residential address.--Except as provided in 
     subparagraph (B), the address for a member of the Armed 
     Forces shown in the locator service shall be the residential 
     address of that member.
       (B) Duty address.--The address for a member of the Armed 
     Forces shown in the locator service shall be the duty address 
     of that member in the case of a member--
       (i) who is permanently assigned overseas, to a vessel, or 
     to a routinely deployable unit; or
       (ii) with respect to whom the Secretary concerned makes a 
     determination that the member's residential address should 
     not be disclosed due to national security or safety concerns.
       (3) Updating of locator information.--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 463(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(a)(9) of the Social Security Act 
     (42 U.S.C. 602(26)), 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. 465. 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 subparagraphs:
       ``(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.
       ``(C) Procedures under which--
       ``(i) liens arise by operation of law against real and 
     personal property for amounts of overdue support owed by an 
     absent parent who resides or owns property in the State; and
       ``(ii) the State accords full faith and credit to such 
     liens which arise in another State, without registration of 
     the underlying order which is the basis for such lien.''.

     SEC. 466. VOIDING OF FRAUDULENT TRANSFERS.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     401(a), 427(a), 431, and 434, is amended by adding at the end 
     the following new paragraph:
       ``(16) 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. 467. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     401(a), 427(a), 431, 434, and 466, is amended by adding at 
     the end the following new paragraph:
       ``(17) 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, professional and occupational 
     licenses, and recreational 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. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.

       Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read 
     as follows:
       ``(7)(A) Procedures (subject to safeguards pursuant to 
     subparagraph (B)) requiring the State to report periodically 
     to consumer reporting agencies (as defined in section 603(f) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) the 
     name of any absent parent who is delinquent in the payment of 
     support, and the amount of overdue support owed by such 
     parent.
       ``(B) Procedures ensuring that, in carrying out 
     subparagraph (A), information with respect to an absent 
     parent is reported--

[[Page S 13020]]

       ``(i) only after such parent has been afforded all due 
     process required under State law, including notice and a 
     reasonable opportunity to contest the accuracy of such 
     information; and
       ``(ii) only to an entity that has furnished evidence 
     satisfactory to the State that the entity is a consumer 
     reporting agency.''.

     SEC. 469. 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. 470. CHARGES FOR ARREARAGES.

       (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
     666(a)), as amended by sections 401(a), 427(a), 431, 434, 
     466, and 467, is amended by adding at the end the following 
     new paragraph:
       ``(18) 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. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD 
                   SUPPORT.

       (a) HHS Certification Procedure.--
       (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
     652), as amended by sections 415(a)(3) and 417, 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(29) that an individual owes arrearages of child support 
     in an amount exceeding $5,000 or in an amount exceeding 24 
     months' worth of child support, the Secretary shall transmit 
     such certification to the Secretary of State for action (with 
     respect to denial, revocation, or limitation of passports) 
     pursuant to section 471(b) of the 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 child support enforcement agency 
     responsibility.--Section 454 (42 U.S.C. 654), as amended by 
     sections 404(a), 405, 414(b), 422(a), and 423(a) is amended--
       (A) by striking ``and'' at the end of paragraph (28);
       (B) by striking the period at the end of paragraph (29) and 
     inserting ``; and''; and
       (C) by adding after paragraph (29) the following new 
     paragraph:
       ``(30) provide that the State agency will have in effect a 
     procedure (which may be combined with the procedure for tax 
     refund offset under section 464) for certifying to the 
     Secretary, for purposes of the procedure under section 452(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 or in an amount exceeding 24 months' worth of child 
     support, shall refuse to issue a passport to such individual, 
     and may revoke, restrict, or limit a passport issued 
     previously to such individual.
       (2) Limit on liability.--The Secretary of State shall not 
     be liable to an individual for any action with respect to a 
     certification by a State agency under this section.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective October 1, 1996.
     SEC. 472. 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 404(a), 405, 414(b), 422(a), 423(a), and 471(a)(2), 
     is amended--
       (1) by striking ``and'' at the end of paragraph (29);
       (2) by striking the period at the end of paragraph (30) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (30) the following new 
     paragraph:
       ``(31) 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. 481. 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--ACCESS AND VISITATION PROGRAMS

     SEC. 491. 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 non-profit private 
     entities.
       ``(2) Statewide plan permissible.--State programs under 
     this section may, but need not, be statewide.
       ``(3) Evaluation.--States administering programs under this 
     section shall monitor, evaluate, and report on such programs 
     in accordance with requirements established by the 
     Secretary.''.

[[Page S 13021]]

   Subtitle B--Child Support Enforcement and Assurance Demonstrations

     SEC. 494. CHILD SUPPORT ENFORCEMENT AND ASSURANCE 
                   DEMONSTRATIONS.

       (a) Demonstrations Authorized.--
       (1) Initial projects.--The Secretary of Health and Human 
     Services (hereafter in this section referred to as the 
     ``Secretary'') shall make grants to three States for 
     demonstrations under this
      section to determine the effectiveness of programs to 
     provide assured levels of child support to custodial 
     parents of children for whom paternity and support 
     obligations have been established.
       (b) Duration of Projects.--
       (1) Total project period.--The Secretary shall make grants 
     to States for demonstrations under this section beginning in 
     fiscal year 1997, for periods of 7 to 10 years.
       (2) Phasedown period.--Each State implementing a 
     demonstration project under this section shall--
       (A) phase out activities under such demonstration during 
     the final two years of the project; and
       (B) obtain the Secretary's approval, before the beginning 
     of such phasedown period, of a plan for accomplishing such 
     phasedown.
       (c) Considerations in Selection of Projects.--
       (1) Scope.--Projects under this section may, but need not, 
     be statewide in scope.
       (2) State administration.--
       (A) Responsible state agency.--A State demonstration 
     project under this section shall be administered either by 
     the State agency administering the program under title IV-D 
     of the Social Security Act or the State department of revenue 
     and taxation.
       (B) Automation.--The State agency described in subparagraph 
     (A) shall operate (or have automated access to) the automated 
     data system required under section 454(16) of the Social 
     Security Act, and shall have adequate automated capacity to 
     carry out the project under this section (including the 
     timely distribution of child support assurance benefits).
       (3) Controls.--At least one demonstration project under 
     this section shall include randomly assigned control groups.
       (d) Eligibility.--
       (1) In general.--Child support assurance payments under 
     projects under this section shall be available only to 
     children for whom paternity and support obligations have been 
     established (or with respect to whom a determination has been 
     made that efforts to establish paternity or support would not 
     be in the best interests of the child).
       (2) Families with shared custody.--In cases where both 
     parents share custody of a child, a parent and child shall 
     not be eligible for benefits under a demonstration under this 
     section unless--
       (A) a support order is in effect entitling such parent to 
     support payments in excess of the minimum benefit; or
       (B) the agency or tribunal which issued the order certifies 
     that the child support award would be below such minimum 
     benefit if either parent was awarded sole custody and the 
     guidelines under section 467 were applied.
       (3) State option to base eligibility on need.--At State 
     option, eligibility for benefits under a demonstration under 
     this section may be limited to families with incomes and 
     resources below a standard of need established by the State.
       (f) Benefit Amounts.--
       (1) Range of benefit levels.--States shall have flexibility 
     to set annual benefit levels under demonstrations under this 
     section, provided that (subject to the remaining provisions 
     of this subsection) such levels--
       (A) are not lower than $1,500 for a family with one child 
     or $3,000 for a family with four or more children; and
       (B) are not higher than $3,000 for a family with one child 
     or $4,500 for a family with four or more children;
       (2) Indexing.--Annual benefit levels for each fiscal year 
     after fiscal year 1996 shall be indexed to reflect the change 
     in the Consumer Price Index.
       (3) Unmatched excess benefits.--The Secretary may permit 
     States to pay benefits higher than a maximum specified in 
     paragraphs (1) and (2), but Federal matching of such payments 
     shall not be available for benefits in excess of the amounts 
     specified in paragraph (1) (as adjusted in accordance with 
     paragraph (2)) by more than $25 per month.
       (g) Treatment of Benefits.--
       (1) For purposes of transitional aid.--The amount of aid 
     otherwise payable to a family under title IV-A of the Social 
     Security Act shall be reduced by an amount equal to the 
     amount of child support assurance paid to such family (or, at 
     the Secretary's discretion, by a percentage of such amount 
     paid specified by the Secretary).
       (2) Treatment of benefits for purposes of other benefit 
     programs.--
       (A) In general.--Except as provided in subparagraph (B), 
     child support assurance paid to a family shall be considered 
     ordinary income for purposes of determining eligibility for 
     and benefits under any Federal or State program.
       (B) Deemed transitional aid eligibility.--At State option, 
     a child (or family) that is ineligible for aid under title 
     IV-A of the Social Security Act because of payments under a 
     demonstration under this section may be deemed to be 
     receiving such aid for purposes of determining eligibility 
     for other Federal and State programs.
       (3) For tax purposes.--Child support assurance which is 
     paid to a family under this section and is not reimbursed 
     from a child support collection from a noncustodial parent 
     shall be considered ordinary income for purposes of Federal 
     and State tax liability.
       (h) Work Program Option.--At the option of the State 
     grantee, a demonstration under this section may include a 
     work program for unemployed noncustodial parents of eligible 
     children.
       (i) Availability of Appropriations for Payments to 
     States.--
       (1) State entitlement to iv-d funding.--A State 
     administering an approved demonstration under this section in 
     a calendar quarter shall be entitled to payments for such 
     quarter, pursuant to section 455 of the Social Security Act 
     for the Federal share of reasonable and necessary 
     expenditures (including expenditures for benefit payments and 
     for associated administrative costs) under such project, in 
     an amount (subject to paragraphs (2) and (3)) equal to--
       (A) with respect to that portion of such expenditures equal 
     to the reduction of expenditures under title IV-A of the 
     Social Security Act pursuant to subsection (g)(1), a 
     percentage equal to the percentage that would have been paid 
     if such expenditures had been made under such title IV-A; and
       (B) 90 percent of the remainder of such expenditures.
       (2) States with low transitional aid benefits.--In the case 
     of a State in which benefit levels under title IV-A of the 
     Social Security Act are below the national median for such 
     payments, the Secretary may elect to provide 90 percent 
     Federal matching of a portion of expenditures under a project 
     under this section that would otherwise be matched at the 
     rate specified in paragraph (1)(A).
       (3) Funding limits; pro rata reductions of state 
     matching.--
       (A) Funds available.--There shall be available to the 
     Secretary, from amounts appropriated to carry our part D of 
     title IV of the Social Security Act, for purposes of carrying 
     out demonstrations under this section, amounts not to 
     exceed--
       (i) $27,000,000 for fiscal year 1997;
       (ii) $55,000,000 for fiscal year 1998;
       (iii) $70,000,000 for each of fiscal years 1999 through 
     2002; and
       (iv) $55,000,000 for fiscal year 2003.
       (B) Pro rata reductions.--The Secretary shall make pro rata 
     reductions in the amounts otherwise payable to States under 
     this section as necessary to comply with the funding 
     limitation specified in subparagraph (A).
       (j) Distribution of Child Support Collections.--
     Notwithstanding section 457 of the Social Security Act, 
     support payments collected from the noncustodial parent of a 
     child receiving (or who has received) child support assurance 
     payments under this section shall be distributed as follows:
       (1) first, amounts equal to the total support owed for such 
     month shall be paid to the family;
       (2) second, from any remainder, amounts owed to the State 
     on account of child support assurance payments to the family 
     shall be paid to the State (with appropriate reimbursement to 
     the Federal Government of its share to such payments);
       (3) third, from any remainder, arrearages of support owed 
     to the family shall be paid to the family; and
       (4) fourth, from any remainder, amounts owed to the State 
     on account of current or past payments of aid under title IV-
     A of the Social Security Act shall be paid to the State (with 
     appropriate reimbursement to the Federal Government of its 
     share of such payments).
       (k) Evaluations and Reports.--
       (1) State evaluations.--Each State administering a 
     demonstration project under this section shall--
       (A) provide for ongoing and retrospective evaluation of the 
     project, meeting such conditions and standards as the 
     Secretary may require; and
       (B) submit to the Secretary such reports (at such times, in 
     such format, and containing such information) as the 
     Secretary may require, including at least an interim report 
     not later than 90 days after the end of the fourth year of 
     the project, and a final report not later than one year after 
     the completion of the project, which shall include 
     information on and analysis of the effect of the project with 
     respect to--
       (i) the economic circumstances of both noncustodial and 
     custodial parents;
       (ii) the rate of compliance by noncustodial parents with 
     support orders;
       (iii) work-force participation by both custodial and 
     noncustodial parents;
       (iv) the need for or amount of transitional aid to families 
     with needy children under title IV-A of the Social Security 
     Act;
       (v) paternity establishment rates; and
       (vi) any other matters the Secretary may specify.
       (2) Reports to congress.--The Secretary shall, on the basis 
     of reports received from States administering projects under 
     this section, make the following reports, containing an 
     assessment of the effectiveness of the projects and any 
     recommendations the Secretary considers appropriate:
       (A) an interim report, not later than 6 months following 
     receipt of the interim State reports required by paragraph 
     (1)(B); and
       (B) a final report, not later than 6 months following 
     receipt of the final State reports required under such 
     paragraph.
       (3) Funding for costs to secretary.--There are authorized 
     to be appropriated $10,000,000 for fiscal year 1997, to 
     remain available until expended, for payment of the 

[[Page S 13022]]
     cost of evaluations by the Secretary of the demonstrations carried out 
     under this section.
   Subtitle C--Demonstration Projects To Provide Services to Certain 
                          Noncustodial Parents

     SEC. 495. ESTABLISHMENT OF DEMONSTRATION PROJECTS FOR 
                   PROVIDING SERVICES TO CERTAIN NONCUSTODIAL 
                   PARENTS.

       (a) In General.--The Secretary of Health and Human Services 
     (hereafter in this section referred to as the ``Secretary'') 
     shall make grants to not more than 5 States to conduct 
     demonstration projects in accordance with subsection (b) for 
     the purpose of providing services to noncustodial parents who 
     are unable to meet child support obligations due to 
     unemployment or underemployment.
       (b) Requirements of Project.--A project conducted in 
     accordance with this subsection shall provide noncustodial 
     parents who are unable to meet child support obligations due 
     to unemployment or underemployment with the following 
     services:
       (1) Assessment of job readiness.
       (2) Referrals to job training and education programs.
       (3) Court monitored job search.
       (4) Court ordered participation in State work programs or 
     other specialized employment programs.
       (5) Technical assistance and information and interpretation 
     of legal proceedings.
       (6) Information dissemination and referrals to other 
     available services.
       (7) Other services determined by the State.
       (c) Applications.--Each State desiring to conduct a 
     demonstration project under this section shall prepare and 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       (d) Reports.--A State that conducts a demonstration project 
     under this section shall prepare and submit to the Secretary 
     annual and final reports in such form and containing such 
     information as the Secretary may require.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated $1,000,000 for each of fiscal years 1997 
     through 1999 for the purpose of conducting demonstration 
     projects in accordance with this section.
                        Subtitle D--Severability

     SEC. 496. 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 V--TRANSITIONAL MEDICAID

     SEC. 501. STATE OPTION TO EXTEND TRANSITIONAL MEDICAID 
                   BENEFITS.

       (a) Optional Extension of Medicaid Enrollment for Former 
     Transitional Aid Program 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 may provide that the State 
     may offer to each such family the option of extending 
     coverage under this subsection for any of the first 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 1st or 4th 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) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsection (a) 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 subsection (a), 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.
                 TITLE VI--TEENAGE PREGNANCY PREVENTION

     SEC. 601. SUPERVISED LIVING ARRANGEMENTS FOR MINORS.

       Section 402(a) (42 U.S.C. 602(a)), as amended by section 
     101, is amended by adding at the end the following new 
     paragraph:
       ``(13) Residency requirement for teenage parents.--The 
     State plan shall provide that--
       ``(A) In general.--Except as provided in subparagraph 
     (B)(i), in the case of any individual who is under the age of 
     18 and has never married, and who has a dependent child in 
     his or her care (or is pregnant and is eligible for 
     transitional aid to families with needy children under the 
     State plan)--
       ``(i) such individual may receive transitional aid to 
     families with needy children under the plan for the 
     individual and such child (or for the individual if the 
     individual is 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 aid (where possible) shall be provided to the 
     parent, legal guardian, or other adult relative on behalf of 
     such individual and child.
       ``(B) Exception.--
       ``(i) Assistance in locating adult-supervised living 
     arrangement.--In the case of an individual described in 
     clause (ii)--

       ``(I) the State agency shall assist such individual in 
     locating an appropriate adult-supervised supportive living 
     arrangement taking into consideration the needs and concerns 
     of the individual, unless the State agency determines that 
     the individual's current living arrangement is appropriate, 
     and thereafter shall require that the individual (and child, 
     if any) reside in such living arrangement as a condition of 
     the continued receipt of aid 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, 
     it shall provide for comprehensive case management, 
     monitoring, and other social services consistent with the 
     best interests of the individual (and child) while living 
     independently.

       ``(ii) Individual described.--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 dependent child of 
     the individual would be jeopardized if such individual and 
     such dependent 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 dependent child to waive the requirement 
     of subparagraph (A) with respect to such individual.''.

     SEC. 602. 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. SECOND CHANCE HOUSES.

       ``(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 
     second chance houses for custodial parents under the age of 
     19 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 

[[Page S 13023]]
     such assistance is required in developing, implementing, or 
     administering the program funded under this section.
       ``(3) Second chance houses.--For purposes of this section, 
     the term `second chance houses' means an entity that provides 
     custodial parents under the age of 19 and their children with 
     a supportive and supervised living arrangement in which such 
     parents would be 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. A 
     second chance house may also serve as a network center for 
     other supportive services that might be 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 $40,000,000 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 a second 
     chance house 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 house.
       ``(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 the age of 19 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 Second Chance Houses.--Section 
     402(a)(13)(A)(ii), as added by section 601, is amended by 
     striking ``or other adult relative'' and inserting ``other 
     adult relative, or second chance house receiving funds under 
     section 2008''.
       (c) Recommendations on Usage 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 second chance houses receiving 
     funds under section 2008 of the Social Security Act.

     SEC. 603. REQUIRED COMPLETION OF HIGH SCHOOL OR OTHER 
                   TRAINING FOR TEENAGE PARENTS.

       (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as 
     amended by sections 101, 601, and 602, is amended by adding 
     at the end the following new paragraph:
       ``(14) Educational requirements.--The State plan shall 
     provide the following educational requirements:
       ``(A) Custodial parent under 19 years.--In the case of a 
     custodial parent who has not attained 19 years of age, has 
     not successfully completed a high-school education (or its 
     equivalent), and is required to participate in the program 
     (including an individual who would otherwise be exempt from 
     participation in the program solely by reason of clause (i), 
     (ii), or (iii) of paragraph (11)(B)), the State agency 
     shall--
       ``(i) require such parent to participate in--

       ``(I) educational activities directed toward the attainment 
     of a high school diploma or its equivalent on a full-time 
     basis (as defined by the educational provider); or
       ``(II) an alternative educational or training program (that 
     has been approved by the Secretary) on a full-time basis (as 
     defined by the provider); and
       ``(ii) provide child care in accordance with paragraph (5) 
     with respect to the family.
       ``(B) Custodial parent 19 years old.--
       ``(i) In general.--To the extent that the program is 
     available in the political subdivision involved and State 
     resources otherwise permit, the State agency shall require a 
     custodial parent who would be described in subparagraph (A), 
     if that parent is 19 years of age, to participate in an 
     educational activity described in clause (ii).
       ``(ii) Type of educational activity.--The State agency may 
     require a parent described in clause (i)--

       ``(I) to participate in educational activities directed 
     toward the attainment of a high school diploma or its 
     equivalent on a full-time basis (as defined by the 
     educational provider); or
       ``(II) to participate in training or work activities in 
     lieu of the educational activities under subclause (I) if 
     such parent fails to make good progress in successfully 
     completing such educational activities or if it is determined 
     (prior to any assignment of the individual to such 
     educational activities) pursuant to an educational assessment 
     that participation in such educational activities is 
     inappropriate for such parent.

       ``(C) Educational activity considered participation in 
     program.--
       ``(i) In general.--If the parent or other caretaker 
     relative or any dependent child in the family is attending in 
     good standing an institution of higher education (as defined 
     in section 481(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1088), or a school or course of vocational or 
     technical training (not less than half time) consistent with 
     the individual's employment goals, and is making satisfactory 
     progress in such institution, school, or course, at the time 
     he or she would otherwise commence participation in the 
     program under this section, such attendance may, at the 
     State's option, constitute satisfactory participation in the 
     program (by that caretaker or child) so long as it continues 
     and is consistent with such goals.
       ``(ii) Additional requirements.--In addition to the 
     requirements described in clause (i)--

       ``(I) any other activities in which an individual described 
     in this subparagraph participates may not be permitted to 
     interfere with the school or training described in such 
     clause; and
       ``(II) the costs of such school or training shall not 
     constitute a federally reimbursable expense for purposes of 
     section 403, however the costs of day care, transportation, 
     and other services which are necessary (as determined by the 
     State agency) for such attendance in accordance with 
     paragraph (5) are eligible for Federal reimbursement.''.

       (b) State Option To Provide Additional Incentives and 
     Penalties To Encourage Teenage Parents To Complete High 
     School and Participate in Parenting Activities.--
       (1) State plan.--Section 402(a)(14)(A), as added by 
     subsection (a), is amended by adding at the end the following 
     new subparagraph:
       ``(D) Incentives and penalty program.--At the option of the 
     State, some or all custodial parents and pregnant women who 
     have not attained 19 years of age (or at the State's option, 
     21 years of age) and who are receiving aid under this part 
     shall be required to participate in a program of monetary 
     incentives and penalties for participation and completion of 
     a high school education (or equivalent) and in parenting 
     activities, consistent with subsection (f);''.
       (2) Elements of program.--Section 402 (42 U.S.C. 602), as 
     amended by section 101, is amended by adding at the end the 
     following new subsection:
       ``(f) Incentives and Penalties Program.--
       ``(1) In general.--If a State opts to conduct a program of 
     incentives and penalties described in subsection (a)(14)(D), 
     the State shall amend its State plan--
       ``(A) to specify the one or more political subdivisions (or 
     other clearly defined geographic area or areas) in which the 
     State will conduct the program; and

[[Page S 13024]]

       ``(B) to describe its program in detail.
       ``(2) Program described.--A program under this subsection--
       ``(A) may, at the option of the State, require full-time 
     participation by custodial parents and pregnant women to whom 
     the program applies in secondary school or equivalent 
     educational activities, or participation in a course or 
     program leading to a parenting skills certificate found 
     appropriate by the State agency or parenting education 
     activities (or any combination of such activities and 
     secondary education);
       ``(B) shall require that the needs of such custodial 
     parents and pregnant women shall be reviewed and the program 
     will ensure that, either in the initial development or 
     revision of such individual's employability plan, there will 
     be included a description of the services that will be 
     provided to the individual and the way in which the program 
     and service providers will coordinate with the educational or 
     skills training activities in which the individual is 
     participating;
       ``(C) shall provide monetary incentives for more than 
     minimally acceptable performance of required educational 
     activities; and
       ``(D) shall provide penalties (which may be those allowed 
     by subsection (a)(1)(H) or other monetary penalties that the 
     State finds will better achieve the objectives of the 
     program) for less than minimally acceptable performance of 
     required activities.
       ``(3) Monetary incentive payable to parent.--When a 
     monetary incentive is payable because of the more than 
     minimally acceptable performance of required educational 
     activities by a custodial parent, the incentive shall be paid 
     directly to such parent, regardless of whether the State 
     agency makes payment of aid under the State plan directly to 
     such parent.
       ``(4) Treatment of monetary incentive.--
       ``(A) In general.--For purposes of this part, monetary 
     incentives paid under this subsection shall be considered 
     transitional aid to families with needy children.
       ``(B) Treatment under other federal programs.--For purposes 
     of any other Federal or federally-assisted program based on 
     need, no monetary incentive paid under this subsection shall 
     be considered income in determining a family's eligibility 
     for or amount of benefits under such program, and if aid is 
     reduced by reason of a penalty under this subsection, such 
     other program shall treat the family involved as if no such 
     penalty has been applied.
       ``(5) Information provided to secretary.--The State agency 
     shall from time to time provide such information with respect 
     to the State operation of the program as the Secretary may 
     request.''.

     SEC. 604. TARGETING YOUTH AT RISK OF TEENAGE PREGNANCY.

       (a) In General.--Section 402 of the Social Security Act (42 
     U.S.C. 602), as amended by sections 101 and 603, is amended 
     by adding at the end the following new subsection:
       ``(g) Reduction in Teenage Pregnancy.--
       ``(1) In general.--Each 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 paragraph (3) that have been 
     approved in accordance with paragraph (4).
       ``(2) Eligible entity.--For purposes of this subsection, 
     the term `eligible entity' includes State agencies, local 
     agencies, publicly supported organizations, private nonprofit 
     organizations, and consortia of such entities.
       ``(3) Application described.--An application described in 
     this paragraph shall--
       ``(A) describe the project;
       ``(B) include an endorsement of the project by the chief 
     elected official of the jurisdiction in which the project is 
     to be located;
       ``(C) demonstrate strong local commitment and local 
     involvement in the planning and implementation of the 
     project; and
       ``(D) be submitted in such manner and containing such 
     information as the Secretary may require.
       ``(4) Approval of application.--
       ``(A) In general.--Subject to subparagraph (B), the chief 
     executive officer of a State may approve an application under 
     this paragraph based on selection criteria to be determined 
     by such chief executive officer.
       ``(B) Preferences in approving projects.--Preference in 
     approving a project shall be accorded to 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 transitional aid to families with needy children.
       ``(5) Indian tribes.--
       ``(A) 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 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.
       ``(B) Indian tribe defined.--For purposes of this 
     subsection, 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.
       ``(6) Term of projects.--A project conducted under this 
     subsection shall be conducted for not less than 3 years.
       ``(7) Study.--
       ``(A) In general.--The Secretary shall conduct a study in 
     accordance with subparagraph (B) to determine the relative 
     effectiveness of the different approaches for preventing 
     teenage pregnancy utilized in the projects conducted under 
     this subsection.
       ``(B) Study requirements.--The study required under 
     subparagraph (A) 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 subsection 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.
       ``(C) Interim and annual reports.--Each eligible entity 
     conducting a project under this subsection shall provide to 
     the Secretary, in such form and with such frequency as the 
     Secretary requires, interim data from the projects conducted 
     under this subsection. 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 
     report on the study required under subparagraph (A).
       ``(D) Authorization.--There are authorized to be 
     appropriated $500,000 for each of fiscal years 1996 through 
     2001 for the purpose of conducting the study required under 
     subparagraph (A).''.
       (b) Payment.--Section 403 of the Social Security Act (42 
     U.S.C. 603), as amended by section 101, is amended by adding 
     at the end the following new subsection:
       ``(e) Payments for Reducing Teenage Pregnancy.--
       ``(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 2001 in 
     an amount equal to the lesser of--
       ``(A) 75 percent of the expenditures made by the State in 
     providing for the operation of the projects under section 
     402(g), 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 $20,000,000 as the 
     population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Omnibus Budget 
     Reconciliation Act of 1981), 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) Limitation increased.--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) Payments to 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 402(g)(5) shall be 
     entitled to payment from the Secretary for each of fiscal 
     years 1996 through 2001 in an amount equal to the lesser of--
       ``(i) 75 percent of the expenditures made by the Indian 
     tribe in providing for the operation of the projects under 
     section 402(g)(5), 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 Omnibus Budget 
     Reconciliation Act of 1981), 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 402(g)(5) in the 
     second preceding fiscal year.
       ``(ii) Increase in limitation.--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) 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. 605. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--Not later than October 1, 1996, the 
     Secretary of Health and 

[[Page S 13025]]
     Human Services, shall within an existing office of the Department of 
     Health and Human Services, 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 training, technical assistance, and 
     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) develop and sponsor a variety of training institutes 
     and curricula for adolescent pregnancy prevention program 
     staff;
       (3) identify model programs representing the various types 
     of adolescent pregnancy prevention programs;
       (4) develop technical assistance materials and activities 
     to assist other entities in establishing and improving 
     adolescent pregnancy prevention programs;
       (5) develop networks of adolescent pregnancy prevention 
     programs for the purpose of sharing and disseminating 
     information; 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 provisions of this section.
     SEC. 606. DENIAL OF FEDERAL HOUSING BENEFITS TO MINORS WHO 
                   BEAR CHILDREN OUT-OF-WEDLOCK.

       (a) Prohibition of Assistance.--Notwithstanding any other 
     provision of law, a household whose head of household is an 
     individual who has borne a child out-of-wedlock before 
     attaining 18 years of age may not be provided Federal housing 
     assistance for a dwelling unit until attaining such age, 
     unless--
       (1) after the birth of the child--
       (A) the individual marries an individual who has been 
     determined by the relevant State to be the biological father 
     of the child; or
       (B) the biological parent of the child has legal custody of 
     the child and marries an individual who legally adopts the 
     child;
       (2) the individual is a biological and custodial parent of 
     another child who was not born out-of-wedlock; or
       (3) eligibility for such Federal housing assistance is 
     based in whole or in part on any disability or handicap of a 
     member of the household.
       (b) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Covered program.--The term ``covered program'' means--
       (A) the program of rental assistance on behalf of low-
     income families provided under section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f);
       (B) the public housing program under title I of the United 
     States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
       (C) the program of rent supplement payments on behalf of 
     qualified tenants pursuant to contracts entered into under 
     section 101 of the Housing and Urban Development Act of 1965 
     (12 U.S.C. 1701s);
       (D) the program of interest reduction payments pursuant to 
     contracts entered into by the Secretary of Housing and Urban 
     Development under section 236 of the National Housing Act (12 
     U.S.C. 1715z-1);
       (E) the program for mortgage insurance provided pursuant to 
     sections 221(d) (3) or (4) of the National Housing Act (12 
     U.S.C. 1715l(d)) for multifamily housing for low- and 
     moderate-income families;
       (F) the rural housing loan program under section 502 of the 
     Housing Act of 1949 (42 U.S.C. 1472);
       (G) the rural housing loan guarantee program under section 
     502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h));
       (H) the loan and grant programs under section 504 of the 
     Housing Act of 1949 (42 U.S.C. 1474) for repairs and 
     improvements to rural dwellings;
       (I) the program of loans for rental and cooperative rural 
     housing under section 515 of the Housing Act of 1949 (42 
     U.S.C. 1485);
       (J) the program of rental assistance payments pursuant to 
     contracts entered into under section 521(a)(2)(A) of the 
     Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A));
       (K) the loan and assistance programs under sections 514 and 
     516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for 
     housing for farm labor;
       (L) the program of grants and loans for mutual and self-
     help housing and technical assistance under section 523 of 
     the Housing Act of 1949 (42 U.S.C. 1490c);
       (M) the program of grants for preservation and 
     rehabilitation of housing under section 533 of the Housing 
     Act of 1949 (42 U.S.C. 1490m); and
       (N) the program of site loans under section 524 of the 
     Housing Act of 1949 (42 U.S.C. 1490d).
       (2) Covered project.--The term ``covered project'' means 
     any housing for which Federal housing assistance is provided 
     that is attached to the project or specific dwelling units in 
     the project.
       (3) Federal housing assistance.--The term ``Federal housing 
     assistance'' means--
       (A) assistance provided under a covered program in the form 
     of any contract, grant, loan, subsidy, cooperative agreement, 
     loan or mortgage guarantee or insurance, or other financial 
     assistance; or
       (B) occupancy in a dwelling unit that is--
       (i) provided assistance under a covered program; or
       (ii) located in a covered project and subject to occupancy 
     limitations under a covered program that are based on income.
       (4) State.--The term ``State'' means the States of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, Guam, the Virgin Islands, American Samoa, and any 
     other territory or possession of the United States.
       (c) Limitations on Applicability.--Subsection (a) shall not 
     apply to Federal housing assistance provided for a household 
     pursuant to an application or request for such assistance 
     made by such household before the effective date of this Act 
     if the household was receiving such assistance on the 
     effective date of this Act.

     SEC. 607. NATIONAL CAMPAIGN AGAINST TEENAGE PREGNANCY.

       (a) Findings.--The Congress finds that the Government has a 
     role to play in preventing teenage pregnancy but that the 
     Government alone cannot deal with the massive changes in 
     societal attitudes and behavior that have occurred in recent 
     decades.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that the President should lead a national campaign against 
     teenage pregnancy that--
       (1) challenges all aspects of society, including 
     businesses, national and community voluntary organizations, 
     religious institutions, and schools, to join in a national 
     effort to reduce teenage pregnancies;
       (2) emphasizes broad themes of economic opportunity and the 
     personal responsibility of each family in every community; 
     and
       (3) establishes national and individual goals, based on the 
     measurable aspects of such broad themes, to define the 
     mission and guide the work of the national campaign 
     including--
       (A) graduation from high school; and
       (B) deferral of childbearing until an individual is 
     emotionally prepared to support a child and accept economic 
     responsibility for the child's support.
   TITLE VII--CHILDREN'S ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME

     SEC. 701. DEFINITION AND ELIGIBILITY RULES.

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

[[Page S 13026]]
     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. 702. 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 701(a)(3), is amended--
       (1) by inserting ``(i)'' after ``(H)''; and
       (2) by adding at the end the following new clause:
       ``(ii)(I) Not less frequently than once every 3 years, the 
     Commissioner shall review in accordance with paragraph (4) 
     the continued eligibility for benefits under this title of 
     each individual who has not attained 18 years of age and is 
     eligible for such benefits by reason of an impairment (or 
     combination of impairments) which may improve (or, which is 
     unlikely to improve, at the option of the Commissioner).
       ``(II) A parent or guardian of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.''.
       (b) Disability Eligibility Redeterminations Required for 
     SSI Recipients Who Attain 18 Years of Age.--
       (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsection (a), is amended by 
     adding at the end the following new clause:
       ``(iii) If an individual is eligible for benefits under 
     this title by reason of disability for the month preceding 
     the month in which the individual attains the age of 18 
     years, the Commissioner shall redetermine such eligibility--
       ``(I) during the 1-year period beginning on the 
     individual's 18th birthday; and
       ``(II) by applying the criteria used in determining the 
     initial eligibility for applicants who have attained the age 
     of 18 years.

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

     SEC. 703. 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.
            TITLE VIII--FINANCING AND FOOD ASSISTANCE REFORM
                    Subtitle A--Treatment of Aliens

     SEC. 801. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC 
                   ASSISTANCE PROGRAMS.

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

[[Page S 13027]]

       ``(I)(i) who is the spouse, or unmarried child under 21 
     years of age, of a citizen of the United States, or
       ``(ii)(I) who is the parent of a citizen of the United 
     States who is at least 21 years of age, and
       ``(II) with respect to whom an application for adjustment 
     to lawful permanent residence is pending, such status not 
     having changed.''.
       (2) 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'' before the semicolon.
       (b) Federal Assistance Programs.--
       (1) 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''.
       (2) Medicaid.--
       (A) Eligibility limitation.--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 and except as provided in paragraph (2)--
       ``(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 reason of 
     section 210(f) or 245A(h) of the Immigration and Nationality 
     Act (8 U.S.C. 1160(f) or 1155a(h)) or any other provision of 
     law, and
       ``(B) no such payment may be made for medical assistance 
     furnished to an individual unless such individual is--
       ``(i) a citizen or national of the United States, or
       ``(ii) a qualified alien (as defined in section 
     1101(a)(10)).''.
       (B) Conforming amendments.--
       (i) Section 1903(v)(2) (42 U.S.C. 1396b(v)(2)) is amended 
     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 to 
     the end period 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''.
       (c) State and Local Programs.--A State or political 
     subdivision thereof may provide that an alien is not eligible 
     for any program of cash assistance based on need that is 
     furnished by such State or political subdivision thereof for 
     any month unless such alien is a qualified alien as defined 
     in section 1101(a)(10) of the Social Security Act.

     SEC. 802. EXTENSION OF DEEMING OF INCOME AND RESOURCES UNDER 
                   TRANSITIONAL AID, SSI, AND FOOD STAMP PROGRAMS.

       (a) In General.--Except as provided in subsections (b) and 
     (c), in applying sections 410 and 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 a qualified alien (as defined in section 
     1101(a)(10) of the Social Security Act shall be extended 
     through the date (if any) on which the alien becomes a 
     citizen of the United States pursuant to chapter 2 of title 
     III of the Immigration and Nationality Act.
       (b) Exceptions.--Subsection (a) shall not apply to a 
     qualified alien if--
       (1) the alien has been lawfully admitted to the United 
     States for permanent residence, has attained 75 years of age, 
     and has resided in the United States for at least 5 years;
       (2) 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);
       (3) the alien is the subject of domestic violence by the 
     alien's spouse and a divorce between the alien and the 
     alien's spouse has been initiated through the filing of an 
     appropriate action in an appropriate court;
       (4) 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; or
       (5) the alien is unable because of physical or 
     developmental disability or mental impairment (including 
     Alzheimer's disease) to comply with the naturalization 
     requirements of section 312(a) of the Immigration and 
     Nationality Act.
       (c) Hold Harmless for Medicaid Eligibility.--Subsection (a) 
     shall not apply with respect to a determination of 
     eligibility for benefits under part A of title IV of the 
     Social Security Act or under the supplemental security income 
     program of title XVI of such Act to the extent such 
     determinations provide for eligibility for medical assistance 
     under title XIX of such Act.
       (d) State and Local Programs.--A State or political 
     subdivision thereof may provide that an alien is not eligible 
     for any program of cash assistance based on need that is 
     furnished by such State or political subdivision thereof for 
     any month if such alien has been determined to be ineligible 
     for such month for benefits under--
       (1) the program under part A of title IV of the Social 
     Security Act;
       (2) the program of supplemental security income authorized 
     by title XVI of the Social Security Act; or
       (3) the Food Stamp Act of 1977;

     as a result of this section.
       (e) Effective Date.--This section shall apply to benefits 
     payable under the transitional aid program under part A of 
     title IV of the Social Security Act, the program of 
     supplemental security income authorized under title XVI of 
     the Social Security Act, or the Food Stamp Act of 1977, for 
     months beginning after September 30, 1995, on the basis of--
       (1) an application filed after such date, or
       (2) an application filed on or before such date by or on 
     behalf of an individual subject to the provisions of section 
     1621(a) or section 410(a) of the Social Security Act or 
     section 5(i)(1) of the Food Stamp Act of 1977 (as the case 
     may be) on such date.

     SEC. 803. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

       (a) In General.--Section 213 of the Immigration and 
     Nationality Act (8 U.S.C. 1183) is amended--
       (1) in the heading, by striking ``on giving bond'' and 
     inserting ``upon provision of bond or guarantee of financial 
     responsibility'';
       (2) by designating the existing matter as subsection (a); 
     and
       (3) by adding at the end the following new subsection:
       ``(b)(1) An alien excludable under section 212(a)(4) may, 
     if otherwise admissible, be admitted in the discretion of the 
     Attorney General upon a finding by the Attorney General 
     that--
       ``(A) the alien has received a guarantee of financial 
     responsibility in such form as may be prescribed pursuant to 
     paragraph (4) and meets the conditions described in paragraph 
     (2); and
       ``(B) taking into consideration all relevant circumstances, 
     it is reasonable to expect that the sponsor, as defined in 
     paragraph (2)(A), has the financial capacity to meet the 
     obligations of the guarantee.
       ``(2) A guarantee of financial responsibility for an alien 
     must--
       ``(A) be signed in the presence of an immigration officer 
     or consular officer (or in the presence of a notary public) 
     by an individual (referred to in this subsection as the 
     `sponsor') who is--
       ``(i) 21 years of age or older;
       ``(ii) of good moral character; and
       ``(iii) a citizen of the United States or an alien lawfully 
     admitted for permanent residence domiciled in any of the 
     several States of the United States, the District of 
     Columbia, or any territory or possession of the United 
     States;
       ``(B) provide that the sponsor enters into a legally 
     binding commitment to furnish to or on behalf of the alien 
     financial support sufficient to meet the alien's basic 
     subsistence needs during the period that begins on the date 
     that the alien acquires the status of an alien lawfully 
     admitted for permanent residence and ends on the earlier of--
       ``(i) the date the alien becomes a citizen of the United 
     States under chapter 2 of title III;
       ``(ii) 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;
       ``(iii) 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; or
       ``(iv) any period in which the alien is--
       ``(I) on active duty (other than active duty for training) 
     in the Armed Forces of the United States; or
       ``(II) the spouse or unmarried dependent child of an 
     individual described in clause (ii) or subclause (I) of this 
     clause; and
       ``(C) contain the sponsor's authorization to the Internal 
     Revenue Service to disclose any tax return information 
     necessary to verify the sponsor's income to the extent 
     necessary to determine the eligibility for benefits under--
       ``(i) the program under part A of title IV of the Social 
     Security Act;
       ``(ii) the program of supplemental security income 
     authorized by title XVI of the Social Security Act; or
       ``(iii) the Food Stamp Act of 1977,

     for an alien sponsored by the sponsor.
       ``(3) Any guarantee of financial support executed on behalf 
     of an alien pursuant to this subsection--
       ``(A) must be enforceable against the sponsor; and
       ``(B) may be enforced against the sponsor in a civil suit 
     brought by the alien or by the Federal Government, any State, 
     district, territory, or possession of the United States, or 
     any political subdivision of such State, district, territory, 
     or possession of the United States, which provides benefits 
     to the alien in any court of competent jurisdiction.
       ``(4) The Secretary of State, the Attorney General, the 
     Secretary of Health and Human Services, the Secretary of 
     Agriculture, and the Commissioner of Social Security, shall 
     jointly establish the form of the guarantee of financial 
     support described in this section.''.

[[Page S 13028]]

       (b) Date for Establishment of Form; Effective Date.--
       (1) Date for establishment.--The Secretary of State, the 
     Attorney General, the Secretary of Health and Human Services, 
     the Secretary of Agriculture, and the Commissioner of Social 
     Security shall establish a form for the guarantee of 
     financial support pursuant to section 213(b)(4) (as added by 
     this subsection) not later than 180 days after the date of 
     the enactment of this Act.
       (2) Effective date.--The amendments made by this subsection 
     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 form
      for the guarantee of financial support is developed under 
     section 213(b)(4) of the Immigration and Nationality Act 
     (as added by this subsection).
       (c) Clerical Amendment.--The table of contents of the 
     Immigration and Nationality Act is amended by amending the 
     item relating to section 213 to read as follows:

``Sec. 213. Admission of certain aliens upon provision of bond or 
              guarantee of financial responsibility.''.
     SEC. 804. EXTENDING REQUIREMENT FOR AFFIDAVITS OF SUPPORT TO 
                   FAMILY-RELATED AND DIVERSITY IMMIGRANTS.

       (a) In General.--Section 212(a)(4) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(4)) is amended to read as 
     follows:
       ``(4) Public charge and affidavits of support.--
       ``(A) Public charge.--Any alien who, in the opinion of the 
     consular officer at the time of application for a visa, or in 
     the opinion of the Attorney General at the time of 
     application for admission or adjustment of status, is likely 
     at any time to become a public charge is excludable.
       ``(B) Affidavits of support.--Any immigrant who seeks 
     admission or adjustment of status as any of the following is 
     excludable unless there has been executed with respect to the 
     immigrant an affidavit of support pursuant to section 213(b):
       ``(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 
     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 803(b)(2).
                 Subtitle B--Food Assistance Provisions

     SEC. 821. MANDATORY CLAIMS COLLECTION METHODS.

       (a) Section 11(e)(8) of the Food Stamp Act of 1977 (7 
     U.S.C. 2020(e)(8)) is amended by inserting ``or refunds of 
     Federal taxes as authorized pursuant to section 3720A of 
     title 31, United States Code'' before the semicolon at the 
     end.
       (b) Section 13(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2022(d)) is amended--
       (1) by striking ``may'' and inserting ``shall''; and
       (2) by inserting ``or refunds of Federal taxes as 
     authorized pursuant to section 3720A of title 31, United 
     States Code'' before the period at the end.
       (c) Section 6103(l) of the Internal Revenue Code of 1986 
     (26 U.S.C. 6103(l)) is amended--
       (1) by striking ``officers and employees'' in paragraph 
     (10)(A) and inserting ``officers, employees or agents, 
     including State agencies''; and
       (2) by striking ``officers and employees'' in paragraph 
     (10)(B) and inserting ``officers, employees or agents, 
     including State agencies''.

     SEC. 822. REDUCTION OF BASIC BENEFIT LEVEL.

       The second sentence of section 3(o) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2012(o)) is amended--
       (1) by striking ``and (11)'' and inserting ``(11)'';
       (2) in paragraph (11), by inserting ``through October 1, 
     1994'' after ``each October 1 thereafter''; and
       (3) by inserting before the period at the end the 
     following: ``, and (12) on October 1, 1995, and on each 
     October 1 thereafter, adjust the cost of such diet to reflect 
     100 percent of the cost, in the preceding June (without 
     regard to any previous adjustment made under this paragraph 
     or paragraphs (4) through (11)) and round the result to the 
     nearest lower dollar increment for each household size''.

     SEC. 823. PRORATING BENEFITS AFTER INTERRUPTIONS IN 
                   PARTICIPATION.

       Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)(2)(B)) is amended by striking ``of more than one 
     month''.

     SEC. 824. WORK REQUIREMENT FOR ABLE-BODIED RECIPIENTS.

       (a) Work Requirement.--Section 6(d) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2015(d)) is amended by adding at the end 
     the following:
       ``(5)(A) Except as provided in subparagraphs (B), (C), and 
     (D), an individual who has received an allotment for 6 
     consecutive months during which such individual has not been 
     employed a minimum of an average of 20 hours per week shall 
     be disqualified if such individual is not employed at least 
     an average of 20 hours per week, participating in a workfare 
     program under section 20 (or a comparable State or local 
     workfare program), or participating in and complying with the 
     requirements of an approved employment and training program 
     under paragraph (4).
       ``(B) The provisions of subparagraph (A) shall not apply in 
     the case of an individual who--
       ``(i) is under 18 or over 50 years of age;
       ``(ii) is certified by a physician as physically or 
     mentally unfit for employment;
       ``(iii) is a parent or other member of a household that 
     includes a minor child;
       ``(iv) is participating a minimum of an average of 20 hours 
     per week and is in compliance with the requirements of--
       ``(I) a program under the Job Training Partnership Act (29 
     U.S.C. 1501 et seq.);
       ``(II) a program under section 236 of the Trade Act of 1974 
     (19 U.S.C. 2296); or
       ``(III) another program for the purpose of employment and 
     training operated by a State or local government, as 
     determined appropriate by the Secretary; or
       ``(v) would otherwise be exempt under paragraph (2).
       ``(C) The Secretary may waive the requirements of 
     subparagraph (A) in the case of some or all individuals 
     within all or part of a State if the Secretary finds that 
     such area--
       ``(i) has an unemployment rate of over 7 percent; or
       ``(ii) does not have a sufficient number of jobs to provide 
     employment for individuals subject to this paragraph.

     The Secretary shall report to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate on the 
     basis on which the Secretary made this decision.
       ``(D) An individual who has been disqualified from the food 
     stamp program by reason of subparagraph (A) may reestablish 
     eligibility for assistance--
       ``(i) by meeting the requirements of subparagraph (A);
       ``(ii) by becoming exempt under subparagraph (B); or
       ``(iii) if the Secretary grants a waiver under subparagraph 
     (C).
       ``(E) A household (as defined in section 3(i)) that 
     includes an individual who is not exempt under paragraph (2) 
     and who refuses to work, refuses to look for work, turns down 
     a job, or refuses to participate in the State program if the 
     State places the individual in such program shall be 
     ineligible to receive food stamp benefits. The State agency 
     shall reduce, by such amount the State considers appropriate, 
     the amount otherwise payable to a household that includes an 
     individual who fails without good cause to comply with other 
     requirements of the WAGE Plan signed by the individual.
       ``(F) The State agency shall make an initial assessment of 
     the skills, prior work experience, and employability of each 
     participant not exempted under subparagraph (B) within 6 
     months of initial certification. The State agency shall use 
     such assessment, in consultation with the program 
     participant, to develop a WAGE Plan for the participant. Such 
     plan--
       ``(i) shall provide that participation in food stamp 
     employment and training activities shall be a condition of 
     eligibility for food stamp benefits, except during any period 
     during which the individual is employed in full-time 
     unsubsidized employment in the private sector;
       ``(ii) shall establish an employment goal and a plan for 
     moving the individual into private sector employment 
     immediately;
       ``(iii) shall establish the obligations of the individual, 
     which shall include actions that will help the
      individual obtain and keep private sector employment; and
       ``(iv) may require that the individual enter the State 
     program approved under part F of title IV of the Social 
     Security Act if the caseworker determines that the individual 
     will need education, training, job placement assistance, wage 
     enhancement, or other services to obtain private sector 
     employment.''.
       (b) Enhanced Employment and Training Program.--Section 
     16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2025 (h)(1)) 
     is amended--
       (1) in subparagraph (A)--
       (A) by striking ``$75,000,000'' and inserting 
     ``$150,000,000''; and
       (B) by striking ``1991 through 1995'' and inserting ``1996 
     through 2000'';
       (2) by striking subparagraphs (B), (C), (E) and (F) and 
     redesignating subparagraph (D) as subparagraph (B); and
       (3) in subparagraph (B) (as so redesignated), by striking 
     ``for each'' and all that follows through ``of $60,000,000'' 
     and inserting ``the Secretary shall allocate funding''.
       (c) Required Participation in Work and Training Programs.--
     Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(4)) is amended by adding at the end the following:
       ``(O) The 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 paragraph (5)(A).''.
       (d) Coordinating Work Requirements in Transitional Aid and 
     Food Stamp Programs.--Section 6(d)(4) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2015(d)(4)), as amended by subsection (c), 
     is amended by adding at the end the following:
       ``(P)(i) Notwithstanding any other provision of this 
     paragraph, a State agency that meets the participation 
     requirements of clause (ii) may operate the employment and 

[[Page S 13029]]
     training program of the State for individuals who are members of 
     households receiving allotments under this Act as part of its 
     WAGE Program under part F of title IV of the Social Security 
     Act (42 U.S.C. 681 et seq.), except that sections 487(b) and 
     489(a)(4) shall not apply to any month during which the 
     individual participates in such program while not receiving 
     income under part A of subtitle IV of the Social Security Act 
     (42 U.S.C. 601 et seq.). If a State agency exercises the 
     option provided under this clause, the operation of the 
     program shall be subject to the requirements of such part F, 
     except that any reference to `transitional aid to families 
     with needy children' in such part shall be deemed a reference 
     to food stamp allotments for purposes of any person not 
     receiving income under such part A.
       ``(ii) A State agency may exercise the option provided 
     under clause (i) if the State agency provides an individual 
     who is subject to the requirements of paragraph (5) who is 
     not employed at least an average of 20 hours per week or 
     participating in a workfare program under section 20 (or a 
     comparable State or local program) with the opportunity to 
     participate in an approved employment and training program. A 
     State agency shall be considered to have complied with the 
     requirements of this subparagraph in any area for which a 
     waiver under paragraph (5)(4)(C) is in effect.''.

     SEC. 825. EXTENDING CURRENT CLAIMS RETENTION RATES.

       Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(a)) is amended by striking ``September 30, 1995'' each 
     place it appears and inserting ``September 30, 2002''.

     SEC. 826. TWO-YEAR FREEZE OF STANDARD DEDUCTION.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended in the second sentence by inserting 
     ``except October 1, 1995 and October 1, 1996'' after 
     ``thereafter''.

     SEC. 827. NUTRITION ASSISTANCE FOR PUERTO RICO.

       Section 19(a)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2028(a)(1)(A)) is amended--
       (1) by striking ``1994, and'' and inserting ``1994,''; and
       (2) by inserting ``and $1,143,000,000 for fiscal year 
     1996,'' before ``to finance''.

     SEC. 828. REPEAL OF SPECIAL RULE FOR PERSONS WHO DO NOT 
                   PURCHASE AND PREPARE FOOD SEPARATELY.

       (a) Repealer.--Section 3(i) of the Food Stamp Act of 1977 
     (7 U.S.C. 2012(i)) is amended by striking the third sentence.
       (b) Conforming Amendment.--Section 5(a) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2014(a)) is amended by striking ``, 
     16(e)(1), and the third sentence of section 3(i)'' and 
     inserting ``and 16(e)(1)''.

     SEC. 829. EARNINGS OF CERTAIN HIGH SCHOOL STUDENTS COUNTED AS 
                   INCOME.

       Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)(7)) is amended by striking ``21'' and inserting 
     ``18''.
     SEC. 830. ENERGY ASSISTANCE COUNTED AS INCOME.

       (a) Limiting Exclusion.--Section 5(d)(11) of the Food Stamp 
     Act of 1977 (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) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking sentences nine through 
     twelve.
       (2) Section 5(k)(2) of the Food Stamp Act of 1977 (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.

     SEC. 831. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS 
                   INCOME.

       Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(k)(2)), as amended by section 830(b)(2), is amended--
       (1) by striking subparagraph (F); and
       (2) by redesignating subparagraphs (G) and (H) as 
     subparagraphs (F) and (G), respectively.

     SEC. 832. DENIAL OF FOOD STAMP BENEFITS FOR 10 YEARS TO 
                   CERTAIN INDIVIDUALS FOUND TO HAVE FRAUDULENTLY 
                   MISREPRESENTED RESIDENCE TO OBTAIN BENEFITS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is 
     amended by adding at the end the following:
       ``(i) An individual shall be ineligible to participate in 
     the food stamp program as a member of any household during 
     the 10-year period beginning on the date the individual is 
     found by a State to have made, or is convicted in Federal or 
     State court of having made, a fraudulent statement or 
     representation with respect to the place of residence of the 
     individual in order to receive benefits simultaneously from 2 
     or more States under the food stamp program or under programs 
     that are funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.), under title XIX of such 
     Act (42 U.S.C. 1396 et seq.), or under the supplemental 
     security income program under title XVI of such Act (42 
     U.S.C. 1381 et seq.).''.

     SEC. 833. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as 
     amended by section 833, is amended by adding at the end the 
     following:
       ``(j) A State plan under section 11 may provide that no 
     individual is eligible to participate in the food stamp 
     program as a member of any household during any period such 
     individual has a payment overdue that is both--
       ``(1) under a court order for the support of a child of 
     such individual; and
       ``(2) not included in 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.) with which the 
     individual is in current compliance.''.

     SEC. 834. LIMITING ADJUSTMENT OF MINIMUM BENEFIT.

       Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(a)) is amended by striking ``nearest $5'' and inserting 
     ``nearest $10''.

     SEC. 835. PENALTY FOR FAILURE TO COMPLY WITH WORK 
                   REQUIREMENTS OF OTHER PROGRAMS.

       Section 8(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(d)) is amended--
       (1) by inserting ``or any work requirement under such 
     program'' after ``assistance program''; and
       (2) by inserting at the end ``The State agency may impose 
     the same penalty on a household for such failure to comply 
     with a work requirement in the program under part A of title 
     IV of the Social Security Act (42 U.S.C. 601 et seq.) that is 
     imposed under such part.''

     SEC. 836. 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.
     SEC. 837. IMPROVEMENT OF CHILD AND ADULT CARE FOOD PROGRAM 
                   OPERATED UNDER THE NATIONAL SCHOOL LUNCH ACT.

       (a) In General.--Section 17(f)(3)(A) of the National School 
     Lunch Act (42 U.S.C. 1766(f)(3)(A)) is amended to read as 
     follows:
       ``(A)(i) Institutions that participate in the program under 
     this section as family or group day care home sponsoring 
     organizations shall be provided, for payment to such homes, 
     the 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)(I) A low- or moderate-income family or group day 
     care home shall be provided the reimbursement factors without 
     a requirement for documentation of the costs described in 
     clause (i), except that reimbursement shall not be provided 
     under this subparagraph for meals or supplements served to 
     the children of a person acting as a family or group day care 
     home provider unless such children meet the eligibility 
     standards for free or reduced price meals under section 9 of 
     this Act. The reimbursement factors applied to such a home 
     shall be the factors in effect on the date of the enactment 
     of the Work and Gainful Employment Act. The reimbursement 
     factors under this subparagraph shall be adjusted on July 1 
     of each year to reflect changes in the Consumer Price Index 
     for food away from home for the most recent 12-month period 
     for which such data are available. The reimbursement factors 
     under this subparagraph shall be rounded to the nearest one-
     fourth cent.
       ``(II) For purposes of this clause, the term `low- or 
     moderate-income family or group day care home' means--
       ``(aa) a family or group day care home that is located in a 
     census tract area in which at least 50 percent of the 
     children residing in such area are members of households 
     whose incomes meet the eligibility standards for free or 
     reduced price meals under section 9 of this Act, as 
     determined by the family or group day care home sponsoring 
     organization using census tract data provided to such 
     organization by the State agency in accordance with 
     subparagraph (B)(i);
       ``(bb) a family or group day care home that is located in 
     an area served by a school in which at least 50 percent of 
     the total number of children enrolled are certified to 
     receive free or reduced price meals under this Act or the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), as 
     determined by the family or group day care home sponsoring 
     organization using data provided to such organization by the 
     State agency in accordance with subparagraph (B)(ii); 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 of this Act.
       ``(iii)(I) Except as provided for 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)(II), the reimbursement factors shall 
     be--
       ``(aa) $1.00 for lunches and suppers;
       ``(bb) $.40 for breakfasts; and
       ``(cc) $.20 for supplements.

     Such factors shall be adjusted on July 1, 1997, and each July 
     1 thereafter to reflect changes in the Consumer Price Index 
     for food away from home for the most recent 12-month period 
     for which such data are available. The reimbursement factors 
     under this clause shall be rounded to the nearest one-fourth 
     cent. A family or group day care home shall be provided a 
     reimbursement factor under this subclause without a 
     requirement for 

[[Page S 13030]]
     documentation of the costs described in clause (i), except that 
     reimbursement shall not be provided under this clause for 
     meals or supplements served to the children of a person 
     acting as a family or group day care home provider unless 
     such children meet the eligibility standards for free or 
     reduced price meals under section 9 of this Act.
       ``(II) A family or group day care home that does not meet 
     the criteria set forth in clause (ii)(II), may elect to be 
     provided a reimbursement factor determined in accordance with 
     the following requirements:
       ``(aa) With respect to 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 of this Act, the family 
     or group day care home shall be provided reimbursement 
     factors set by the Secretary in accordance with subclause 
     (ii)(I).
       ``(bb) With respect to meals or supplements served under 
     this subsection to children who are members of households 
     whose incomes do not meet such eligibility standards, the 
     family or group day care home shall be provided a 
     reimbursement factor in accordance with subclause (I).
       ``(III) A family or group day care home electing to use the 
     procedures under subclause (II) may consider a child with a 
     parent participating in the WAGE program established under 
     part F of title IV of the Social Security Act or a State 
     child care program with an income eligibility limit that does 
     not exceed the eligibility standard for free or reduced price 
     meals under section 9 of this Act, to be a child who is a 
     member of a household whose income meets the eligibility 
     standards under section 9 of this Act. A family or group day 
     care home may elect to receive the reimbursement factors 
     prescribed under clause (ii)(I) solely for such children if 
     it does not wish to have income statements collected from 
     parents.
       ``(IV) The Secretary shall prescribe simplified meal 
     counting and reporting procedures for use by family and group 
     day care homes that elect to use the procedures under 
     subclause (II) and by family and group day care home 
     sponsoring organizations that serve such homes. Such 
     procedures may include the following:
       ``(aa) Setting an annual percentage for each such home of 
     the number of meals served that are to be reimbursed in 
     accordance with the reimbursement factors prescribed under 
     clause (ii)(I) and an annual percentage of the number of 
     meals served that are to be reimbursed in accordance with the 
     reimbursement factors prescribed under clause (ii)(I), based 
     on the incomes of children enrolled in the home in a 
     specified month or other period.
       ``(bb) Setting blended reimbursement factors for a home 
     annually based on the incomes of children enrolled in the 
     home in a specified month or period.
       ``(cc) Placing a home into one of several reimbursement 
     categories annually based on the percentage of children in 
     the home whose households have incomes that meet the 
     eligibility standards under section 9 of this Act.
       ``(dd) Such other simplified procedures as the Secretary 
     may prescribe.''.
       (b) Provision of Data to Family or Group Day Care Homes.--
     Section 17(f)(3) of such Act (42 U.S.C. 1766(f)(3)) is 
     amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (D) and (E), respectively; and
       (2) by inserting after subparagraph (A) (as amended by 
     subsection (a)) the following new subparagraph:
       ``(B)(i) 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 for which 
     such data are available showing which census tracts in the 
     State meet the requirements of subparagraph (A)(ii)(II)(aa). 
     The State agency shall provide such data to family or group 
     day care home sponsoring organizations located in the State.
       ``(ii) Each State agency administering a child and adult 
     care food program under this section shall annually provide 
     to family or group day care home sponsoring organizations 
     located in the State a list of all schools in the State in 
     which at least 50 percent of the children are enrolled and 
     certified to receive free or reduced price meals under this 
     Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.). The Secretary shall direct State agencies 
     administering the school lunch program under this Act and the 
     school breakfast program under the Child Nutrition Act of 
     1966 to collect this information annually and to provide it 
     on a timely basis to the State agency administering the 
     program under this section.''.
       (c) Grants to States To Provide Assistance to Family or 
     Group Day Care Homes.--Section 17(f)(3) of such Act (42 
     U.S.C. 1766(f)(3)) is amended by inserting after subparagraph 
     (B) (as added by subsection (b)(2)) the following new 
     subparagraph:
       ``(C)(i) From amounts appropriated to carry out this 
     section, the Secretary shall reserve $2,000,000 in fiscal 
     year 1996 and $5,000,000 in fiscal year 1997 to provide 
     grants to States for the purpose of providing grants to 
     family and day care home sponsoring organizations and other 
     appropriate organizations to secure and provide training, 
     materials, automated data processing assistance, and other 
     assistance for the staff of such sponsoring organizations and 
     for family and group day care homes in order to assist in the 
     implementation of the requirements contained in subparagraph 
     (A).
       ``(ii) From amounts appropriated to carry out this section, 
     the Secretary shall reserve $5,000,000 in fiscal year 1998 
     and in each fiscal year thereafter to provide grants to 
     States for the purpose of making grants to family or group 
     day care home sponsoring organizations and other appropriate 
     organizations to assist low- or moderate-income family or 
     group day care homes (as such term is defined in subparagraph 
     (A)(ii)(II)) to become licensed or registered for the program 
     under this section or overcome other barriers to the 
     program.''.
       (d) Effective Dates.--
       (1) In general.--The amendments made by subsections (a) and 
     (b) shall take effect on July 1, 1996.
       (2) Grants to states.--The amendment made by subsection (c) 
     shall take effect on the date of the enactment of this Act.
                Subtitle C--Supplemental Security Income

     SEC. 841. VERIFICATION OF ELIGIBILITY FOR CERTAIN SSI 
                   DISABILITY BENEFITS.

       Section 1631 (42 U.S.C. 1383) is amended by adding at the 
     end the following new subsection:
       ``(o)(1) Notwithstanding any other provision of law, if the 
     Commissioner of Social Security determines that an 
     individual, who is 18 years of age or older, is eligible to 
     receive benefits pursuant to section 1614(a)(3), the 
     Commissioner shall, at the time of the determination, either 
     exempt the individual from an eligibility review or establish 
     a schedule for reviewing the individual's continuing 
     eligibility in accordance with paragraph (2).
       ``(2)(A) The Commissioner shall establish a periodic review 
     with respect to the continuing eligibility of an individual 
     to receive benefits, unless the individual is exempt from 
     review under subparagraph (C) or is subject to a scheduled 
     review under subparagraph (B). A periodic review under this 
     subparagraph shall be initiated by the Commissioner not later 
     than 30 months after the date a determination is made that 
     the individual is eligible for benefits and every 30 months 
     thereafter, unless a waiver is granted under section 
     221(i)(2). However, the Commissioner shall not postpone the 
     initiation of a periodic review for more than 12 months in 
     any case in which such waiver has been granted unless exigent 
     circumstances require such postponement.
       ``(B)(i) In the case of an individual, other than an 
     individual who is exempt from review under subparagraph (C) 
     or with respect to whom subparagraph (A) applies, the 
     Commissioner shall schedule a review regarding the 
     individual's continuing eligibility to receive benefits at 
     any time the Commissioner determines, based on the evidence 
     available, that there is a significant possibility that the 
     individual may cease to be entitled to such benefits.
       ``(ii) The Commissioner may establish classifications of 
     individuals for whom a review of continuing eligibility is 
     scheduled based on the impairments that are the basis for 
     such individuals' eligibility for benefits. A review of an 
     individual covered by a classification shall be scheduled in 
     accordance with the applicable classification, unless the 
     Commissioner determines that applying such schedule is 
     inconsistent with the purpose of this Act or the integrity of 
     the supplemental security income program.
       ``(C)(i) The Commissioner may exempt an individual from 
     review under this subsection, if the individual's eligibility 
     for benefits is based on a condition that, as a practical 
     matter, has no substantial likelihood of improving to a point 
     where the individual will be able to perform substantial 
     gainful activity.
       ``(ii) The Commissioner may establish classifications of 
     individuals who are exempt from review under this subsection 
     based on the impairments that are the basis for such 
     individuals' eligibility for benefits. Notwithstanding any 
     such classification, the Commissioner may, at the time of 
     determining an individual's eligibility, schedule a review of 
     such individual's continuing eligibility if the Commissioner 
     determines that a review is necessary to preserve the 
     integrity of the supplemental security income program.
       ``(3) The Commissioner may revise a determination made 
     under paragraph (1) and schedule a review under paragraph 
     (2)(B), if the Commissioner obtains credible evidence that an 
     individual may no longer be eligible for benefits or the 
     Commissioner determines that a review is necessary to 
     maintain the integrity of the supplemental security income 
     program. Information obtained under section 1137 may be used 
     as the basis to schedule a review.
       ``(4)(i) The requirements of sections 1614(a)(4) and 1633 
     shall apply to reviews conducted under this subsection.
       ``(ii) Such reviews may be conducted by the applicable 
     State agency or the Commissioner, whichever is 
     appropriate.''.
     SEC. 842. NONPAYMENT OF SSI DISABILITY BENEFITS TO SUBSTANCE 
                   ABUSERS.

       (a) In General.--Section 1614(a)(3) (42 U.S.C. 1382c(a)(3)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(I) Notwithstanding subparagraph (A), an individual shall 
     not be considered disabled for purposes of this title if 
     alcoholism or drug addiction would (but for this 
     subparagraph) be a contributing factor material to the 
     Commissioner's determination that the individual is 
     disabled.''.
       (b) Additional Eligibility Requirements.--Section 
     1611(e)(3)(A) (42 U.S.C. 1382(e)(3)(A)) is amended--

[[Page S 13031]]

       (1) in clause (i), by striking subclause (I) and inserting 
     the following new subclause:

       ``(I) In the case of any individual who is eligible for 
     benefits under this title by reason of disability for the 
     month in which the Work and Gainful Employment Act becomes 
     effective, whose alcoholism or drug addiction was a 
     contributing factor material to the Commissioner's 
     determination that such individual is disabled, whose 
     benefits are terminated as a result of section 1614(a)(3)(I), 
     and who subsequently becomes re-eligible for benefits under 
     this title based on a disability, such individual shall 
     comply with the provisions of this subparagraph. In any case 
     in which an individual is required to comply with the 
     provisions of this subparagraph, the Commissioner shall 
     include in the individual's notification of such eligibility 
     a notice informing the individual of such requirement.''; and

       (2) in clause (vi)--
       (A) in subclause (I), by striking ``who is eligible for 
     benefits'' through ``is disabled,'' and inserting ``described 
     in clause (i),'';
       (B) in subclause (V), by striking ``or (v)''; and
       (C) by redesignating clause (vi) as clause (v).
       (c) Conforming Amendments.--
       (1) Section 1611(e)(3)(B)(iii)(II)(aa) (42 U.S.C. 
     1382(e)(3)(B)(iii)(II)(aa)) is amended by striking ``with 
     respect to whom'' through ``they are disabled'' and inserting 
     ``described in subparagraph (A)(i)''.
       (2) Section 201(b)(3) of the Social Security Independence 
     and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
     amended by striking subparagraph (C).
       (d) Medicaid Benefits.--Section 1634(e) (42 U.S.C. 
     1383c(e)) is amended--
       (1) by striking ``or (v)'';
       (2) by inserting ``(1)'' after ``(e)''; and
       (3) by inserting at the end thereof:
       ``(2) Each person who is eligible for benefits under this 
     title by reason of disability for the month in which the Work 
     and Gainful Employment Act becomes effective and whose 
     benefits are terminated as a result of section 1614(a)(3)(I) 
     shall be deemed to be receiving such benefits for purposes of 
     title XIX.''.
       (e) Payment of Benefits to Representative Payees.--
       (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C. 
     1383(a)(2)(A)(ii)(II)) is amended to read as follows:

       ``(II) In the case of an indi- vidual described in section 
     1611(e)(3)(A)(i)(I), the payment of benefits under this title 
     by reason of disability to a representative payee shall be 
     deemed to serve the interest of the individual under this 
     title. In any case in which payment is so deemed under this 
     subclause to serve the interest of an individual, the 
     Commissioner shall include, in the individual's notification 
     of such eligibility, a notice that the Commissioner is 
     required by the Social Security Act to pay the individual's 
     benefits to a representative payee.''.

       (2) Section 1631(a)(2)(B)(vii) (42 U.S.C. 
     1383(a)(2)(B)(vii)) is amended by striking ``, if 
     alcoholism'' through ``individual is disabled'' and inserting 
     in lieu thereof ``who is described in section 
     1611(e)(3)(A)(i)(I)''.
       (3) Section 1631(a)(2)(D)(i)(II) (42 U.S.C. 
     1383(a)(2)(D)(i)(II)) is amended by striking ``alcoholism or 
     drug addiction is a contributing factor material to the 
     Commissioner's determination that the individual is 
     disabled'' and inserting ``who is described in section 
     1611(e)(3)(A)(i)(I)''.
            TITLE IX--LEGISLATIVE PROPOSALS; EFFECTIVE DATE

     SEC. 901. SECRETARIAL SUBMISSION.

       The Secretary of Health and Human Services shall, within 90 
     days after the date of the enactment of this Act, submit to 
     the appropriate committees of the Congress, a legislative 
     proposal providing such technical and conforming amendments 
     in the law as are required by the provisions of this Act.

     SEC. 902. EFFECTIVE DATE.

       (a) In General.--Except as otherwise specifically provided 
     in this Act, this Act and the amendments made by this shall 
     be effective with respect to calendar quarters beginning on 
     or after October 1, 1995.
       (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 this Act or the amendments made by this Act, the State 
     shall not be regarded as failing to comply with such 
     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 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.
                                 ______


                        LEVIN AMENDMENT NO. 2533

  Mr. MOYNIHAN (for Mr. Levin) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 417, line 15, strike ``or'' and insert ``and''.
                                 ______


                        DODD AMENDMENT NO. 2534

  Mr. MOYNIHAN (for Mr. Dodd) proposed an amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 397, strike lines 5 and 6 and insert the following:
       ``(1) 90 percent shall be reserved for making allotments 
     under section 712;''.
       On page 397, line 15, strike ``and'' at the end thereof.
       On page 397, line 17, strike the period and insert ``; 
     and''.
       On page 397, between lines 17 and 18, insert the following:
       ``(7) 2 percent shall be reserved for carrying out sections 
     775 and 776.''.
       On page 461, between lines 18 and 19, insert the following 
     new sections and redesignate the remaining sections and cross 
     references thereto, accordingly:

     SEC. 775. NATIONAL RAPID RESPONSE GRANTS FOR DISLOCATED 
                   WORKERS.

       (a) In General.--From amounts reserved under section 
     734(b), the Secretary of Labor may award national rapid 
     response grants to eligible entities to enable the entities 
     to provide adjustment assistance to workers affected by major 
     economic dislocations that result from plant closures, base 
     closures, or mass layoffs.
       (b) Projects and Services.--
       (1) In general.--Amounts provided under grants awarded 
     under this section shall be used to provide employment, 
     training and related services through projects that relate 
     to--
       (A) industry-wide dislocations;
       (B) multistate dislocations;
       (C) dislocations resulting from reductions in defense 
     expenditures;
       (D) dislocations resulting from international trade 
     actions;
       (E) dislocations resulting from environmental laws and 
     regulations, including the Clean Air Act (42 U.S.C. 7401 et 
     seq.), and the Endangered Species Act of 1973 (16 U.S.C. 1531 
     et seq.);
       (F) dislocations affecting Indian Tribes and tribal 
     organizations; and
       (G) other dislocations that result from special 
     circumstances or that State and local resources are 
     insufficient to address.
       (2) Community projects.--The Secretary of Labor may award 
     grants under this section for projects that provide 
     comprehensive planning services to assist communities in 
     addressing and reducing the impact of an economic 
     dislocation.
       (c) Administration.--
       (1) Application.--To be eligible to receive a grant under 
     this section, an eligible entity shall submit an application 
     to the Secretary of Labor at such time, in such manner, and 
     accompanied by such information as the Secretary of Labor 
     determines to be appropriate.
       (2) Eligible Entities.--The Secretary of Labor may award a 
     grant under this section to--
       (A) a State;
       (B) a local entity administering assistance provided under 
     title I;
       (C) an employer or employer association;
       (D) a worker-management transition assistance committee or 
     other employer-employee entities;
       (E) a representative of employees;
       (F) a community development corporation or community-based 
     organization; or
       (G) an industry consortium.
       (d) Use of Funds in Emergencies.--
       (1) In general.--Where the Secretary of Labor and the chief 
     executive officer of a State determine that an emergency 
     exists with respect to any particular distressed industry or 
     any particularly distressed area within a State, the 
     Secretary may use amounts made available under this section 
     to provide emergency financial assistance to dislocated 
     workers in the form of employment, training, and related 
     services.
       (2) Arrangements.--The Secretary of Labor may enter into 
     arrangements with eligible entities in a State described in 
     paragraph (1) for the immediate provision of emergency 
     financial assistance under paragraph (1) for the purposes of 
     this section with any necessary supportive documentation to 
     be submitted at a date agreed to by the chief executive 
     officer and the Secretary.

     SEC. 776. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

       (a) Qualification for Funds.--From amounts reserved under 
     section 734(b), the Secretary of Labor may provide assistance 
     to the chief executive officer of a State within which is 
     located an area that has suffered an emergency or a major 
     disaster as defined in paragraphs (1) and (2), respectively, 
     of section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122(1) and (2)) 
     (hereafter referred to in this section as the ``disaster 
     area'').
       (b) Use of Funds.--
       (1) Projects restricted to disaster areas.--Funds provided 
     to a State under subsection (a)--
       (A) shall be used solely to provide eligible individuals 
     with employment in projects to provide clothing, shelter, and 
     other humanitarian assistance for disaster victims and in 
     projects regarding the demolition, cleanup, repair, 
     renovation, and reconstruction of damaged and destroyed 
     structures, facilities, and lands located within the disaster 
     area; and
       (B) may be expended through public and private agencies and 
     organizations administering such projects.
       (2) Eligibility requirements.--An individual shall be 
     eligible for employment in a project under this section if 
     such individual is a dislocated worker or is temporarily or 

[[Page S 13032]]
     permanently laid off as a result of an emergency or disaster referred 
     to in subsection (a).
       (3) Limitations on disaster relief employment.--No 
     individual may be employed using assistance provided under 
     this section for a period of more than 6 months if such 
     employment is related to recovery from a single emergency or 
     disaster.
                                 ______


                       DORGAN AMENDMENT NO. 2535

  Mr. MOYNIHAN (for Mr. Dorgan) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place, add the following new section:

     SEC.   . SENSE OF THE SENATE ON LEGISLATIVE ACCOUNTABILITY 
                   FOR UNFUNDED MANDATES IN WELFARE REFORM 
                   LEGISLATION.

       (a) Findings.--The Senate finds that the purposes of the 
     Unfunded Mandates Reform Act of 1995 are:
       (1) ``to strengthen the partnership between the Federal 
     Government and State, local and tribal governments'';
       (2) ``to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on State, 
     local and tribal governments without adequate Federal 
     funding, in a manner that may displace other essential State, 
     local and tribal governmental priorities'';
       (3) ``to assist Congress in its consideration of proposed 
     legislation establishing or revising Federal programs 
     containing Federal mandates affecting State, local and tribal 
     governments, and the private sector by--
       (A) providing for the development of information about the 
     nature and size of mandates in proposed legislation; and
       (B) establishing a mechanism to bring such information to 
     the attention of the Senate and the House of Representatives 
     before the Senate and the House of Representatives vote on 
     proposed legislation'';
       (4) ``to promote informed and deliberate decisions by 
     Congress on the appropriateness of Federal mandates in any 
     particular instance''; and
       (5) ``to require that Congress consider whether to provide 
     funding to assist State, local and tribal governments in 
     complying with Federal mandates''.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that prior to the Senate acting on the conference report on 
     either H.R. 4 or any other legislation including welfare 
     reform provisions, the Congressional Budget Office shall 
     prepare an analysis of the conference report to include:
       (1) estimates, over each of the next seven fiscal years, by 
     state and in total, of--
       (A) the costs to states of meeting all work requirements in 
     the conference report, including those for single-parent 
     families, two-parent families, and those who have received 
     cash assistance for 2 years;
       (B) the resources available to the states to meet these 
     work requirements, defined as federal appropriations 
     authorized in the conference report for this purpose in 
     addition to what states are projected to spend under current 
     welfare law;
       (C) the amount of any additional revenue needed by the 
     states to meet the work requirements in the conference 
     report, beyond resources available as defined under 
     subparagraph (b)(1)(B);
       (2) an estimate, based on the analysis in paragraph (b)(1), 
     of how many states would opt to pay any penalty provided for 
     by the conference report rather than raise the additional 
     revenue needed to meet the work requirements in the 
     conference report; and
       (3) estimates, over each of the next 7 fiscal years, of the 
     costs to States of any other requirements imposed on them by 
     such legislation.
                                 ______


                  LIEBERMAN AMENDMENTS NOS. 2536-2537

  Mr. MOYNIHAN (for Mr. Lieberman) proposed two amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2536

       On page 17, line 8, insert ``and for each of fiscal years 
     1998, 1999, and 2000, the amount of the State's share of the 
     out-of-wedlock pregnancy reduction bonus determined under 
     subsection (f) for the fiscal year'' after ``year''.
       On page 17, line 22, insert ``and the applicable percent 
     specified under subsection (f)(3)(B)(ii) for such fiscal 
     year'' after ``(B)''.
       On page 29, between lines 15 and 16, insert:
       ``(f) Out-of-Wedlock Pregnancy Reduction Bonus.--
       ``(1) In general.--Any State that meets the applicable 
     percentage reduction with respect to the out-of-wedlock 
     pregnancies in the State for a fiscal year shall be entitled 
     to receive a share of the out-of-wedlock pregnancy reduction 
     bonus for the fiscal year in accordance with the formula 
     developed under paragraph (3).
       ``(2) Applicable percentage reduction; percentage of out-
     of-wedlock pregnancies.--
       ``(A) Applicable percentage reduction.--The term 
     `applicable percentage reduction' means with respect to any 
     fiscal year, a reduction of 2 or more whole percentage points 
     of the percentage of out-of-wedlock pregnancies in the State 
     for the preceding fiscal year over the percentage of out-of-
     wedlock pregnancies in the State for fiscal year 1995.
       ``(B) Percentage of out-of-wedlock pregnancies.--For 
     purposes of this subsection, the term `percentage of out-of-
     wedlock pregnancies' means--
       ``(i) the total number of abortions, live births, and 
     spontaneous abortions among single teenagers in a State in a 
     fiscal year, divided by--
       ``(ii) the total number of single teenagers in the State in 
     the fiscal year.
       ``(3) Allocation formula; bonus fund.--
       ``(A) Allocation formula.--Not later than September 30, 
     1996, the Secretary of Health and Human Services shall 
     develop and publish in the Federal Register a formula for 
     allocating amounts in the out-of-wedlock pregnancy reduction 
     bonus fund to States that achieve the applicable percentage 
     reduction described in paragraph (2)(A).
       ``(B) Out-of-wedlock pregnancy reduction bonus fund.--
       ``(i) In general.--The amount in the out-of-wedlock 
     pregnancy reduction bonus fund for a fiscal year shall be an 
     amount equal to--
       ``(I) the applicable percentage of the amount appropriated 
     under section 403(a)(2)(A) for such fiscal year; and
       ``(II) the amount of the reduction in grants made under 
     this section for the preceding fiscal year resulting from the 
     application of section 407.
       ``(ii) Applicable percentage.--For purposes of clause 
     (i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

                                                         The applicable
``For fiscal year:                                       percentage is:
  1998............................................................3....

  1999............................................................4....

  2000 and each fiscal year thereafter...........................5.....

       On page 29, line 16, strike ``(f)'' and insert ``(g)''.
       At the appropriate place, insert:

     SEC. ____. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--The Secretary of Education and the 
     Secretary of Health and Human Services 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) Appointment of Federal Coordinator and Spokesperson.--
     The Secretary of Health and Human Services, after 
     consultation with the President, shall appoint an employee of 
     the Department of Health and Human Services to coordinate all 
     the activities of the Federal Government relating to the 
     reduction of teenage pregnancies and to serve as the 
     spokesperson for the Federal Government on issues related to 
     teenage pregnancies.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of this section.

     SEC. ____. ESTABLISHING NATIONAL GOALS TO REDUCE OUT-OF-
                   WEDLOCK PREGNANCIES AND TO PREVENT TEENAGE 
                   PREGNANCIES.

       (a) In General.--Not later than January 1, 1997, the 
     Secretary of Health and Human Services shall establish and 
     implement a strategy for--
       (1) reducing out-of-wedlock teenage pregnancies by at least 
     2 percent a year, and
       (2) assuring that at least 25 percent of the communities in 
     the United States have teenage pregnancy prevention programs 
     in place.
       (b) Report.--Not later than June 30, 1998, and annually 
     thereafter, the Secretary shall report to the Congress with 
     respect to the progress that has been made in meeting the 
     goals described in paragraphs (1) and (2) of subsection (a).
       (b) Out-of-Wedlock and Teenage Pregnancy Prevention 
     Programs.--Section 2002 (42 U.S.C. 1397a) is amended by 
     adding at the end the following new subsection:
       ``(f)(1) Beginning in fiscal year 1996 and each fiscal year 
     thereafter, each State shall use at least 5 percent of its 
     allotment under section 2003 for the fiscal year to develop 
     and implement a State program to reduce the incidence of out-
     of-wedlock and teenage pregnancies in the State.
       ``(2) The Secretary shall conduct a study with respect to 
     the State programs implemented under paragraph (1) to 
     determine the 

[[Page S 13033]]
     relative effectiveness of the different approaches for reducing out-of-
     wedlock pregnancies and preventing teenage pregnancy utilized 
     in the programs conducted under this subsection and the 
     approaches that can be best replicated by other States.
       ``(3) Each State conducting a program under this subsection 
     shall provide to the Secretary, in such form and with such 
     frequency as the Secretary requires, data from the programs 
     conducted under this subsection. The Secretary shall report 
     to the Congress annually on the progress of the programs and 
     shall, not later than June 30, 1998, submit to the Congress a 
     report on the study required under paragraph (2).''.

     SEC. --. SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
                   STATUTORY RAPE LAWS.

       It is the sense of the Senate that States and local 
     jurisdictions should aggressively enforce statutory rape 
     laws.

                           Amendment No. 2537

       At the appropriate place, insert:

     SEC. --. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--The Secretary of Education and the 
     Secretary of Health and Human Services 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) Appointment of Federal Coordinator and Spokesperson.--
     The Secretary of Health and Human Services, after 
     consultation with the President, shall appoint an employee of 
     the Department of Health and Human Services to coordinate all 
     the activities of the Federal Government relating to the 
     reduction of teenage pregnancies and to serve as the 
     spokesperson for the Federal Government on issues related to 
     teenage pregnancies.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of this section.

     SEC.   . ESTABLISHING NATIONAL GOALS TO REDUCE OUT-OF-WEDLOCK 
                   PREGNANCIES AND TO PREVENT TEENAGE PREGNANCIES.

       (a) In General.--Not later than January 1, 1997, the 
     Secretary of Health and Human Services shall establish and 
     implement a strategy for--
       (1) reducing out-of-wedlock teenage pregnancies by at least 
     2 percent a year, and
       (2) assuring that at least 25 percent of the communities in 
     the United States have teenage pregnancy prevention programs 
     in place.
       (b) Report.--Not later than June 30, 1998, and annually 
     thereafter, the Secretary shall report to the Congress with 
     respect to the progress that has been made in meeting the 
     goals described in paragraphs (1) and (2) of subsection (a).
       (b) Out-of-Wedlock and Teenage Pregnancy Prevention 
     Programs.--Section 2002 (42 U.S.C. 1397a) is amended by 
     adding at the end the following new subsection:
       ``(f)(1) Beginning in fiscal year 1996 and each fiscal year 
     thereafter, each State shall use at least 5 percent of its 
     allotment under section 2003 for the fiscal year to develop 
     and implement a State program to reduce the incidence of out-
     of-wedlock and teenage pregnancies in the State.
       ``(2) The Secretary shall conduct a study with respect to 
     the State programs implemented under paragraph (1) to 
     determine the relative effectiveness of the different 
     approaches for reducing out-of-wedlock pregnancies and 
     preventing teenage pregnancy utilized in the programs 
     conducted under this subsection and the approaches that can 
     be best replicated by other States.
       ``(3) Each State conducting a program under this subsection 
     shall provide to the Secretary, in such form and with such 
     frequency as the Secretary requires, data from the programs 
     conducted under this subsection. The Secretary shall report 
     to the Congress annually on the progress of the programs and 
     shall, not later than June 30, 1998, submit to the Congress a 
     report on the study required under paragraph (2).''.

     SEC.   . SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
                   STATUTORY RAPE LAWS.

       It is the sense of the Senate that States and local 
     jurisdictions should aggressively enforce statutory rape 
     laws.
                                 ______


                      MOYNIHAN AMENDMENT NO. 2538

  Mr. MOYNIHAN proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       In section 781(b), strike paragraph (1) (relating to the 
     Trade Act of 1974).
       In section 781(b)(2), strike ``(2)'' and insert ``(1)''.
       In section 781(b)(3), strike ``(3)'' and insert ``(2)''.
       In section 781(b)(4), strike ``(4)'' and insert ``(3)''.
       In section 781(b)(5), strike ``(5)'' and insert ``(4)''.
       In section 781(b)(6), strike ``(6)'' and insert ``(5)''.
       In section 781(b)(7), strike ``(7)'' and insert ``(6)''.
       In section 781(b)(8), strike ``(8)'' and insert ``(7)''.
                                 ______


                COATS (AND ASHCROFT) AMENDMENT NO. 2539

  Mr. HATCH (for Mr. Coats, for himself and Mr. Ashcroft) proposed an 
amendment to amendment No. 2280 proposed by Mr. Dole to the bill H.R. 
4, supra, as follows:

       At the end of the amendment, add the following new title:
                  TITLE XIII--MISCELLANEOUS PROVISIONS

     SEC. 1301. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CERTAIN 
                   PRIVATE CHARITIES PROVIDING ASSISTANCE TO THE 
                   POOR.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 22 the following new section:

     ``SEC. 23. CREDIT FOR CERTAIN CHARITABLE CONTRIBUTIONS.

       ``(a) In General.--In the case of an eligible individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the 
     qualified charitable contributions which are paid by the 
     taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed by subsection (a) for 
     the taxable year shall not exceed $500 ($1,000 in the case of 
     a joint return under section 6013).
       ``(c) Eligible Individual; Qualified Charitable 
     Contribution.--For purposes of this section--
       ``(1) Eligible individual.--The term `eligible individual' 
     means, with respect to any charitable contribution, an 
     individual who is certified by the qualified charity to whom 
     the contribution was made by the individual as having 
     performed at least 50 hours of volunteer service for the 
     charity during the calendar year in which the taxable year 
     begins.
       ``(2) Qualified charitable contribution.--The term 
     `qualified charitable contribution' means any charitable 
     contribution (as defined in section 170(c)) made in cash to a 
     qualified charity but only if the amount of each such 
     contribution, and the recipient thereof, are identified on 
     the return for the taxable year during which such 
     contribution is made.
       ``(d) Qualified Charity.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified charity' means, with respect to the taxpayer, any 
     organization--
       ``(A) which is described in section 501(c)(3) and exempt 
     from tax under section 501(a), and
       ``(B) which, upon request by the organization, is certified 
     by the Secretary as meeting the requirements of paragraphs 
     (2) and (3).
       ``(2) Charity must primarily assist the poor.--An 
     organization meets the requirements of this paragraph only if 
     the Secretary reasonably expects that the predominant 
     activity of such organization will be the provision of 
     services to individuals and families which are designed to 
     prevent or alleviate poverty among individuals and families 
     whose incomes fall below 150 percent of the official poverty 
     line (as defined by the Office of Management and Budget).
       ``(3) Minimum expense requirement.--
       ``(A) In general.--An organization meets the requirements 
     of this paragraph only if the Secretary reasonably expects 
     that the annual poverty program expenses of such organization 
     will not be less than 70 percent of the annual aggregate 
     expenses of such organization.
       ``(B) Poverty program expense.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--The term `poverty program expense' means 
     any expense in providing program services referred to in 
     paragraph (2).
       ``(ii) Exceptions.--Such term shall not include--

       ``(I) any management or general expense,
       ``(II) any expense for the purpose of influencing 
     legislation (as defined in section 4911(d)),
       ``(III) any expense primarily for the purpose of 
     fundraising, and
       ``(IV) any expense for a legal service provided on behalf 
     of any individual referred to in paragraph (2).

       ``(4) Election to treat poverty programs as separate 
     organization.--
       ``(A) In general.--An organization may elect to treat one 
     or more programs operated 

[[Page S 13034]]
     by it as a separate organization for purposes of this section.
       ``(B) Effect of election.--If an organization elects the 
     application of this paragraph, the organization, in 
     accordance with regulations, shall--
       ``(i) maintain separate accounting for revenues and 
     expenses of programs with respect to which the election was 
     made,
       ``(ii) ensure that contributions to which this section 
     applies be used only for such programs, and
       ``(iii) provide for the proportional allocation of 
     management, general, and fundraising expenses to such 
     programs to the extent not allocable to a specific program.
       ``(C) Reporting requirements.--
       ``(i) Organizations not otherwise required to file.--An 
     organization not otherwise required to file any return under 
     section 6033 shall be required to file such a return with 
     respect to any poverty program treated as a separate 
     organization under this paragraph.
       ``(ii) Organizations required to file.-- An organization 
     otherwise required to file a return under section 6033--

       ``(I) shall file a separate return with respect to any 
     poverty program treated as a separate organization under this 
     section, and
       ``(II) shall include on its own return the percentages 
     equivalent to those required of qualified charities under the 
     last sentence of section 6033(b) and determined with respect 
     to such organization (without regard to the expenses of any 
     poverty program under subclause (I)).

       ``(e) Coordination With Deduction for Charitable 
     Contributions.--
       ``(1) Credit in lieu of deduction.--The credit provided by 
     subsection (a) for any qualified charitable contribution 
     shall be in lieu of any deduction otherwise allowable under 
     this chapter for such contribution.
       ``(2) Election to have section not apply.--A taxpayer may 
     elect for any taxable year to have this section not apply.''
       (b) Returns.--
       (1) Qualified charities required to provide copies of 
     annual return.--Subsection (e) of section 6104 of such Code 
     (relating to public inspection of certain annual returns and 
     applications for exemption) is amended by adding at the end 
     the following new paragraph:
       ``(3) Qualified charities required to provide copies of 
     annual return.--
       ``(A) In general.--Every qualified charity (as defined in 
     section 23(d)) shall, upon request of an individual made at 
     an office where such organization's annual return filed under 
     section 6033 is required under paragraph (1) to be available 
     for inspection, provide a copy of such return to such 
     individual without charge other than a reasonable fee for any 
     reproduction and mailing costs. If the request is made in 
     person, such copies shall be provided immediately and, if 
     made other than in person, shall be provided within 30 days.
       ``(B) Period of availability.--Subparagraph (A) shall apply 
     only during the 3-year period beginning on the filing date 
     (as defined in paragraph (1)(D) of the return requested).''
       (2) Additional information.--Section 6033(b) of such Code 
     is amended by adding at the end the following new flush 
     sentence:

     ``Each qualified charity (as defined in section 23(d)) to 
     which this subsection otherwise applies shall also furnish 
     each of the percentages determined by dividing each of the 
     following categories of the organization's expenses for the 
     year by its total expenses for the year: program services; 
     management and general; fundraising; and payments to 
     affiliates.''
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 22 
     the following new item:

``Sec. 23. Credit for certain charitable contributions.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions made after the 90th day after 
     the date of the enactment of this Act in taxable years ending 
     after such date.
                                 ______


                    McCAIN AMENDMENT NOS. 2540-2544

  Mr. HATCH (for Mr. McCain) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2540

       At the appropriate place, insert the following:

     SEC.   . REMOVAL OF BARRIERS TO INTERRACIAL AND INTERETHNIC 
                   ADOPTIONS.

       (a) Findings.--Congress finds that--
       (1) nearly 500,000 children are in foster care in the 
     United States;
       (2) tens of thousands of children in foster care are 
     waiting for adoption;
       (3) 2 years and 8 months is the median length of time that 
     children wait to be adopted, and minority children often wait 
     twice as long as other children to be adopted; and
       (4) child welfare agencies should work to eliminate racial, 
     ethnic, and national origin discrimination and bias in 
     adoption and foster care recruitment, selection, and 
     placement procedures.
       (b) Purpose.--The purpose of this section is to promote the 
     best interests of children by--
       (1) decreasing the length of time that children wait to be 
     adopted; and
       (2) preventing discrimination in the placement of children 
     on the basis of race, color, or national origin.
       (c) Removal of Barriers to Interracial and Interethnic 
     Adoptions.--
       (1) Prohibition.--A State or other entity that receives 
     funds from the Federal Government and is involved in adoption 
     or foster care placements may not--
       (A) deny to any person the opportunity to become an 
     adoptive or a foster parent, on the basis of the race, color, 
     or national origin of the person, or of the child, involved; 
     or
       (B) delay or deny the placement of a child for adoption or 
     into foster care, or otherwise discriminate in making a 
     placement decision, on the basis of the race, color, or 
     national origin of the adoptive or foster parent, or the 
     child, involved.
       (2) Penalties.--
       (A) State violators.--A State that violates paragraph (1) 
     shall remit to the Secretary of Health and Human Services all 
     funds that were paid to the State under part E of title IV of 
     the Social Security Act (42 U.S.C. 670 et seq.) (relating to 
     foster care and adoption assistance) during the period of the 
     violation.
       (B) Private violators.--Any other entity that violates 
     paragraph (1) shall remit to the Secretary of Health and 
     Human Services all funds that were paid to the entity during 
     the period of the violation by a State from funds provided 
     under part E of title IV of the Social Security Act.
       (3) Private cause of action.--
       (A) In general.--Any individual or class of individuals 
     aggrieved by a violation of paragraph (1) by a State or other 
     entity may bring an action seeking relief in any United 
     States district court or State court of appropriate 
     jurisdiction.
       (B) Stature of limitations.--An action under this 
     subsection may not be brought more than 2 years after the 
     date the alleged violation occurred.
       (4) Attorney's fees.--In any action or proceeding under 
     this Act, the court, in the discretion of the court, may 
     allow the prevailing party, other than the United States, a 
     reasonable attorney's fee, including litigation expenses and 
     costs, and the States and the United States shall be liable 
     for the fee to the same extent as a private individual.
       (5) State immunity.--A State shall not be immune under the 
     11th amendment to the Constitution from an action of Federal 
     or State court of appropriate jurisdiction for a violation of 
     this section.
       (6) No effect on indian child welfare act of 1978.--Nothing 
     in this Act shall be construed to affect the application of 
     the Indian Child Welfare Act of 1978 (25 U.S.C. 1901 et 
     seq.).
       (d) Repeal.--Subpart 1 of part E of title V of the 
     Improving America's Schools Act of 1994 (42 U.S.C. 5115a) is 
     amended--
       (1) by repealing sections 551 through 553; and
       (2) by redesignating section 554 as section 551.
       (e) Effective Date.--This section, and the amendments made 
     by this section, shall take effect 90 days after the date of 
     enactment of this Act.
                                                                    ____

                           Amendment No. 2541

       On page 122, between lines 11 and 12, insert the following:

     SEC. 110A. FEDERAL FUNDING FOR EXCESSIVE DATA REPORTING 
                   REQUIREMENTS.

       Notwithstanding any other provision of law, a State shall 
     not be required to comply with any data collection or data 
     collection or data reporting requirements added by this Act 
     that the General Accounting Office determines is in excess of 
     normal Federal management needs (including systems 
     development costs) unless the Federal Government provides the 
     State with funding sufficient to allow States to comply with 
     such requirements.
                                                                    ____


                           Amendment No. 2542

       On page 215, line 24, add closing quotation marks and a 
     period at the end.
       On page 216, strike lines 1 through 5.
                                                                    ____


                           Amendment No. 2543

       On page 36, line 10, strike ``and''.
       On page 36, line 13, strike the end period.
       On page 36, between lines 13 and 14, insert the following:
       ``(G) job readiness workshops in which an individual 
     attends pre-employment classes to obtain business or industry 
     specific training required to meet employer-specific needs 
     (not to exceed 4 weeks with respect to any individual).
                                                                    ____


                           Amendment No. 2544

       On page 122, between lines 11 and 12, insert the following:

     SEC. 110A. CORRECTIVE ACTION PLAN.

       (a) In General.--
       (1) Notification of Violation.--Notwithstanding any other 
     provision of law, the Federal Government shall, prior to 
     assessing a penalty against a State under any program 
     established or modified under this Act, notify the State of 
     the violation of law for which such penalty would be assessed 
     and allow the State the opportunity to enter into a 
     corrective action plan in accordance with this section.
       (2) 60-day period to propose a corrective action plan.--Any 
     State notified under paragraph (1) shall have 60 days in 
     which to 

[[Page S 13035]]
     submit to the Federal Government a corrective action plan to correct 
     any violations described in such paragraph
       (3) Acceptance of plan.--The Federal Government shall have 
     60 days to accept or reject the State's corrective action 
     plan and may consult with the State during this period to 
     modify the plan. If the Federal Government does not accept or 
     reject the corrective action plan during the period, the 
     corrective action plan shall be deemed to be accepted.
       (b) 90-day Grace Period.--If a corrective action plan is 
     accepted by the Federal Government, no penalty shall be 
     imposed with respect to a violation described in subsection 
     (a) if the State corrects the violation pursuant to the plan 
     within 90 days after the date on which the plan is accepted 
     (or within such other period specified in the plan).
                                 ______


                       HARKIN AMENDMENT NO. 2545

  Mr. HARKIN proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 39, strike lines 4 through 10, and insert the 
     following:
       ``(a) State Required To Enter Into a Personal 
     Responsibility Contract With Each Family Receiving 
     Assistance.--
       ``(1) In general.--Each State to which a grant is made 
     under section 403 shall require each family receiving 
     assistance under the State program funded under this part to 
     enter into--
       ``(A) a personal responsibility contract (as developed by 
     the State) with the State; or
       ``(B) a limited benefit plan.
       ``(2) Personal Responsibility contract.--For purposes of 
     this subsection, the term `personal responsibility contact' 
     means a binding contract between the State and each family 
     receiving assistance under the State program funded under 
     this part that--
       ``(A) outlines the steps each family and the State will 
     take to get the family off of welfare and to become self-
     sufficient;
       ``(B) specifies a negotiated time-limited period of 
     eligibility for receipt of assistance that is consistent with 
     unique family circumstances and is based on a reasonable plan 
     to facilitate the transition of the family to self-
     sufficiency;
       ``(C) provides that the family will automatically enter 
     into a limited benefit plan if the family is out of 
     compliance with the personal responsibility contract; and
       ``(D) provides that the contract shall be invalid if the 
     State agency fails to comply with the contract.
       ``(3) Limited benefit plan.--For purposes of this 
     subsection, the term `limited benefit plan' means a plan 
     which provides for a reduced level of assistance and later 
     termination of assistance to a family that has entered into 
     the plan in accordance with a schedule to be determined by 
     the State.
       ``(4) Assessment.--The State agency shall provide, through 
     a case manager, an initial and thorough assessment of the 
     skills, prior work experience, and employability of each 
     parent for use in developing and negotiating a personal 
     responsibility contract.
       ``(5) Dispute resolution.--The State agency described in 
     section 402(a)(6) shall establish a dispute resolution 
     procedure for disputes related to participation in the 
     personal responsibility contract that provides the 
     opportunity for a hearing.
                                 ______


                       CHAFEE AMENDMENT NO. 2546

  Mr. CHAFEE proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 23, beginning on line 7, strike all through page 
     24, line 18, and insert the following:
       ``(5) Welfare partnership.--
       ``(A) In general.--The amount of the grant otherwise 
     determined under paragraph (1) for fiscal year 1997, 1998, 
     1999, or 2000 shall be reduced by the amount by which State 
     expenditures under the State program funded under this part 
     for the preceding fiscal year is less that 75 percent of 
     historic State expenditures.
       ``(B) Historic state expenditures.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `historic State expenditures' 
     means expenditures by a State under parts A and F of title IV 
     for fiscal year 1994, as in effect during such fiscal year.
       ``(ii) Hold harmless.--In no event shall the historic State 
     expenditures applicable to any fiscal year exceed the amount 
     which bears the same ratio to the amount determined under 
     clause (i) as--
       ``(I) the grant amount otherwise determined under paragraph 
     (1) for the preceding fiscal year (without regard to section 
     407), bears to;
       ``(II) the total amount of Federal payments to the State 
     under section 403 for fiscal year 1994 (as in effect during 
     such fiscal year).
       ``(C) Determination of state expenditures for preceding 
     fiscal year.--
       ``(i) In general.--For purposes of this paragraph, the 
     expenditures of a State under the State program funded under 
     this part for a preceding fiscal year shall be equal to the 
     sum of the State's expenditures under the program in the 
     preceding fiscal year for--
       ``(I) cash assistance;
       ``(II) child care assistance;
       ``(III) education, job training, and work; and
       ``(IV) administrative costs.
       ``(ii) Transfers from other state and local programs.--In 
     determining State expenditures under clause (i), such 
     expenditures shall not include funding supplanted by 
     transfers from other State and local programs.
       ``(D) Exclusion of federal amounts.--For purposes of this 
     paragraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
                                 ______


                        COHEN AMENDMENT NO. 2547

  Mr. CHAFEE (for Mr. Cohen) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

       Beginning on page 112, line 13, strike all through page 
     114, line 23, and insert the following:

     SEC. 201. 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 201 of the Work 
     Opportunity 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--
       ``(i) after three years of treatment, or
       ``(ii) if the Commissioner determines that such individual 
     no longer needs treatment.''.
       (c) Representative Payee Requirements.--
       (1) Section 1631(a)(2)(A)(ii)(II) (42 U.S.C. 
     1383(a)(2)(A)(ii)(II)) is amended to read as follows:

[[Page S 13036]]

       ``(II) In the case of an individual eligible for benefits 
     under this title by reason of disability, if such individual 
     also has an alcoholism or drug addiction condition (as 
     determined by the Commissioner of Social Security), the 
     payment of such benefits to a representative payee shall be 
     deemed to serve the interest of the individual. In any case 
     in which such payment is so deemed under this subclause to 
     serve the interest of an individual, the Commissioner shall 
     include, in the individual's notification of such 
     eligibility, a notice that such alcoholism or drug addiction 
     condition accompanies the disability upon which such 
     eligibility is based and that the Commissioner is therefore 
     required to pay the individual's benefits to a representative 
     payee.''.
       (2) Section 1631(a)(2)(B)(vii) (42 U.S.C. 
     1383(a)(2)(B)(vii)) is amended by striking ``eligible for 
     benefits'' and all that follows through ``is disabled'' and 
     inserting ``described in subparagraph (A)(ii)(II)''.
       (3) Section 1631(a)(2)(B)(ix)(II) (42 U.S.C. 
     1383(a)(2)(B)(ix)(II)) is amended by striking all that 
     follows ``15 years, or'' and inserting ``described in 
     subparagraph (A)(ii)(II)''.
       (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C. 
     1383(a)(2)(D)(i)(II)) is amended by striking ``eligible for 
     benefits'' and all that follows through ``is disabled'' and 
     inserting ``described in subparagraph (A)(ii)(II)''.
       (d) 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 not apply to any such person--
       ``(i) after three years of treatment, or
       ``(ii) if earlier, if the Commissioner determines that such 
     individual no longer needs treatment, or
       ``(iii) if such person has previously received such 
     treatment.''.
       (e) 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 after the 
     cessation of the individual's treatment provided pursuant to 
     such title as in effect on the day before the date of such 
     enactment, 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.
                                 ______


                 MOYNIHAN (AND DOLE) AMENDMENT NO. 2548

  Mr. MOYNIHAN (for himself and Mr. Dole) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       On page 87, between lines 5 and 6, insert the following:

     SEC. 105A. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT 
                   SOCIAL SECURITY CARD REQUIRED.

       (a) Development.--
       (1) In general.--The Commissioner of Social Security 
     (hereafter in this section referred to as the 
     ``Commissioner'') shall in accordance with the provisions of 
     this section develop a prototype of a counterfeit-resistant 
     social security card. Such prototype card shall--
       (A) be made of a durable, tamper-resistant material such as 
     plastic or polyester,
       (B) employ technologies that provide security features, 
     such as magnetic stripes, holograms, and integrated circuits, 
     and
       (C) be developed so as to provide individuals with reliable 
     proof of citizenship or legal resident alien status.
       (2) Assistance by attorney general.--The Attorney General 
     of the United States shall provide such information and 
     assistance as the Commissioner deems necessary to achieve the 
     purposes of this section.
       (b) Study and Report.--
       (1) In general.--The Commissioner shall conduct a study and 
     issue a report to Congress which examines different methods 
     of improving the social security card application process.
       (2) Elements of study.--The study shall include an 
     evaluation of the cost and work load implications of issuing 
     a counterfeit-resistant social security card for all 
     individuals over a 3, 5, and 10 year period. The study shall 
     also evaluate the feasibility and cost implications of 
     imposing a user fee for replacement cards and cards issued to 
     individuals who apply for such a card prior to the scheduled 
     3, 5, and 10 year phase-in options.
       (3) Distribution of report.--Copies of the report described 
     in this subsection along with a facsimile of the prototype 
     card as described in subsection (a) shall be submitted to the 
     Committees on Ways and Means and Judiciary of the House of 
     Representatives and the Committees on Finance and Judiciary 
     of the Senate within l year of the date of the enactment of 
     this Act.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated and are appropriated from the Federal Old-
     Age and Survivors Insurance Trust Fund such sums as may be 
     necessary to carry out the purposes of this section.
                                 ______


                       KERREY AMENDMENT NO. 2549

  Mr. MOYNIHAN (for Mr. Kerrey) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 229, strike lines 4 through 8 and insert the 
     following:
       ``(2) Election revocable.--A State that elects to 
     participate in the program established under subsection (a) 
     may subsequently elect to participate in the food stamp 
     program in accordance with the other sections of this Act.
                                 ______


                     KOHL AMENDMENTS NOS. 2550-2551

  Mr. MOYNIHAN (for Mr. Kohl) proposed two amendments to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2550

       On page 244, strike lines 3 through 13 and insert the 
     following:
       ``(B) Reductions in allotments.--
       ``(i) Reduction for exempted individuals.--

       ``(I) Determination.--The Secretary shall determine the 
     Federal costs of providing benefits to and administering the 
     food stamp program for exempted individuals in each State 
     participating in the program established under this section.
       ``(II) Reduction.--The Secretary shall reduce the allotment 
     to each State participating in the program established under 
     this section by the amount determined under subclause (I).

       ``(ii) Insufficient funds.--If the Secretary finds that the 
     total amount of allotments to which States would otherwise be 
     entitled for a fiscal year under subparagraph (A) will exceed 
     the amount of funds that will be made available to provide 
     the allotments for the fiscal year, the Secretary shall 
     reduce the allotments made to States under this subsection, 
     on a pro rata basis, to the extent necessary to allot under 
     this subsection a total amount that is equal to the funds 
     that will be made available.
       ``(m) Exempted Individuals.--
       ``(1) Definition.--Subject to paragraph (2), in this 
     subsection, the term `exempted individual' means a individual 
     who is--
       ``(A) elderly;
       ``(B) a child; or
       ``(C) disabled.
       ``(2) Exemption.--Notwithstanding any other provision of 
     this section, an exempted individual shall not be subject to 
     this section and shall be subject to the other sections of 
     this Act.''.

                           Amendment No. 2551

       On page 158, between lines 14 and 15, insert the following:

     SEC. 301. DECLARATION OF POLICY.

       Section 2 of the Food Stamp Act of 1977 (7 U.S.C. 2011) is 
     amended by adding at the end the following: ``Congress 
     intends that the food stamp program support the employment 
     focus and family strengthening mission of public welfare and 
     welfare replacement programs by--
       ``(1) facilitating the transition of low-income families 
     and households from economic dependency to economic self-
     sufficiency through work;
       ``(2) promoting employment as the primary means of income 
     support for economically dependent families and households 
     and reducing the barriers to employment of economically 
     dependent families and households; and
       ``(3) maintaining and strengthening healthy family 
     functioning and family life.''.
       On page 185, line 7, strike ``and''.
       On page 185, between lines 13 and 14, insert the following:
       (D) by redesignating clauses (vi) and (vii) as clauses 
     (vii) and (viii), respectively; and
       (E) by inserting after clause (v) the following:
       ``(vi) Case management, casework, and other services 
     necessary to support healthy family functioning, enable 
     participation in an employment and training program, or 
     otherwise facilitate the transition from economic dependency 
     to self-sufficiency through work.'';
                                 ______


                    BRYAN AMENDMENTS NOS. 2552-2555

  Mr. MOYNIHAN (for Mr. Bryan) proposed four amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

                           Amendment No. 2552

       At the appropriate place in the title X, insert the 
     following new section:
       At the appropriate place, insert the following new section:

     SEC.  . FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC 
                   ASSISTANCE PROGRAMS.

       (a) In General.--If an individual's benefits under a 
     Federal, State, or local law relating 

[[Page S 13037]]
     to a means-tested welfare or a public assistance program are reduced 
     because of an act of fraud by the individual under the law or 
     program, the individual may not, for the duration of the 
     reduction, receive an increased benefit under any other 
     means-tested welfare or public assistance program for which 
     Federal funds are appropriated as a result of a decrease in 
     the income of the individual (determined under the applicable 
     program) attributed to such reduction.
       (b) Welfare or Public Assistance Programs For Which Federal 
     Funds are Appropriated.--For purposes of subsection (a), the 
     term ``means-tested welfare or public assistance program for 
     which Federal funds are appropriated'' shall include the food 
     stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 
     et seq.), any program of pubic or assisted housing under 
     title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.), and State programs funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
                                                                    ____


                           Amendment No. 2553

       On page 87, between lines 5 and 6, insert the following:

     SEC.  . COOPERATION REQUIRED WITH RESPECT TO PATERNITY 
                   ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT FOR 
                   ELIGIBILITY FOR ASSISTANCE.

       Subject to the provisions of titles IV and XIX of the 
     Social Security Act and the Food Stamp Act of 1977, and 
     notwithstanding any other provision of law, no Federal funds 
     may be used to provide assistance based on need to, or on 
     behalf of, a child in a family that includes an individual 
     (including the noncustodial parent, if any) whom the agency 
     responsible for administering such assistance determines is 
     not cooperating in establishing the paternity of such child, 
     or in establishing, modifying, or enforcing a support order 
     with respect to such child, without good cause as determined 
     by such agency in accordance with standards prescribed by 
     such agency which shall take into consideration the best 
     interests of the child.
                                                                    ____

                           Amendment No. 2554

       At the appropriate place in the amendment, insert the 
     following new section:

     SEC.   . COLLECTION OF WELFARE OR PUBLIC ASSISTANCE BENEFIT 
                   OVERPAYMENTS FROM FEDERAL TAX REFUNDS.

       (a) In General.--Paragraph (1) of section 6402(d) of the 
     Internal Revenue Code of 1986 (relating to collection of 
     debts owed to Federal agencies) is amended by inserting ``or 
     upon receiving notice from any State agency that a named 
     person owes a past-due legally enforceable debt arising out 
     of an overpayment under an applicable welfare program,'' 
     before ``the Secretary shall''.
       (b) Applicable Welfare Programs.--Section 6402(d) of such 
     Code is amended by adding at the end the following new 
     paragraph:
       ``(4) Applicable Welfare Program.--For purposes of this 
     subsection, the term `applicable welfare program' means any 
     program established or significantly modified by the Work 
     Opportunity Act of 1995.''
       (c) Conforming Amendments.--
       (1) Section 6402(d)(2) of such Code is amended by inserting 
     ``or State'' after ``Federal''.
       (2) The heading for section 6402(d) of such Code is amended 
     by inserting ``or certain State'' after ``Federal''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to refunds payable after December 31, 1995.

                           Amendment No. 2555

       At the appropriate place in the amendment, insert the 
     following new section:
       Sec.  . Section 6(f) of the Food Stamp Act of 1977 (7 
     U.S.C. 2015(f)) is amended by striking the third sentence and 
     inserting the following:
       The State agency shall, at its option, consider either all 
     income and financial resources of the individual rendered 
     ineligible to participate in the food stamp program under 
     this subsection, or such income, less a pro rate share, and 
     the financial resources of the ineligible individual, to 
     determine the eligibility and the value of the allotment of 
     the household of which such individual is a member.
                                 ______


                       NICKLES AMENDMENT NO. 2556

  Mr. HATCH (for Mr. Nickles) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Sec. 913 page 601 of the amendment, strike line 8 thru line 
     21 and insert in lieu thereof the following:
       ``(2) Timing of Report.--Each report required by paragraph 
     (1) shall be made in accordance with the requirements of 
     Section 1320b-7(3), Title 42 of U.S.C.''
       (c) Reporting Format.--Each report required under Section 
     1320b-7(3), Title 42 of U.S.C. shall include an indication of 
     those employees newly hired during such quarter.
                                 ______


                      JEFFORDS AMENDMENT NO. 2557

  Mr. HATCH (for Mr. Jeffords) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 36, line 12, strike ``12'' and insert ``24''.
                                 ______


                 JEFFORDS (AND PELL) AMENDMENT NO. 2558

  Mr. HATCH (for Mr. Jeffords for himself and Mr. Pell) proposed an 
amendment to amendment No. 2280 proposed by Mr. Dole to the bill H.R. 
4, supra; as follows:

       On page 381, strike lines 18 through 21, and insert the 
     following:
       (3) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a fiscal 
     year, such agency shall distribute such funds for workforce 
     education activities in such State as follows:
       (A) 75 percent of such amount shall be distributed for 
     secondary school vocational education in accordance with 
     section 722, or for postsecondary and adult vocational 
     education in accordance with section 723, or for both; and
       (B) 25 percent of such amount shall be distributed for 
     adult education in accordance with section 724.
                                 ______


                         KYL AMENDMENT NO. 2559

  Mr. HATCH (for Mr. Kyl) proposed an amendment to amendment No. 2280 
proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       In section 728, strike subsections (a) and (b) and insert 
     the following:
       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 714 to the Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local workforce development 
     boards described in subsection (b).
       (2) Contents.--
       (A) State goals and state bench-marks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this subtitle will be 
     spent to meet the State goals and reach the State benchmarks 
     in a manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local workforce development board; collaborated in 
     reaching the agreement.
       (3) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local workforce development board, the Governor 
     shall notify the board, and provide the board with the 
     opportunity to comment, not later than 30 days after the date 
     of the notification, on the manner in which funds allocated 
     to such substate area will be spent to meet the State goals 
     and reach the State benchmarks.
       (4) Exception.--A State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--
       (1) In general.--There shall be a local workforce 
     development board for every substate area in a State that 
     receives assistance under this title.
       (2) Duties.--Such a local workforce development board 
     shall--
       (A) have principal responsibility for implementing local 
     workforce development activities (other than economic 
     development activities), including one-stop centers or 
     systems, school-to-work activities, and workfare activities; 
     and
       (B) shall have authority over economic development 
     activities if no comparable oversight or policy group exists 
     within the substate area.
       (3) Appointment.--
       (A) In general.--A local workforce development board shall 
     be appointed by the chief elected official of a unit of 
     general purpose local
      government within the substate area involved, based on 
     guidelines established by the Governor, in consultation 
     with local elected officials in the substate area.
       (B) Chief elected official.--Such chief elected official 
     shall be selected by the elected officials of 1 or more units 
     of general purpose local government within the substate area.
       (C) Membership.--A majority of the members of the board 
     shall be representatives of business. The remainder of the 
     board shall consist of such other members as the Governor may 
     determine to be appropriate.
       (4) References.--Notwithstanding any other provision of 
     this title, any reference in this title to a local 
     partnership shall be deemed to be a reference to a local 
     workforce development board established under this 
     subsection.
                                 ______


                  DODD (AND OTHERS) AMENDMENT NO. 2560

  Mr. DODD (for himself, Mr. Kennedy, Mr. Kohl, Ms. Mikulski, Ms. 
Moseley-Braun, Mrs. Murray, Mrs. Boxer, Mr. Leahy, and Mr. Kerrey) 
proposed an amendment to amendment No. 2280 proposed by Mr. Dole to the 
bill H.R. 4, supra, as follows:

       On page 17, line 22, strike ``subparagraph (B)'' and insert 
     ``subparagraphs (B) and (C)''.

[[Page S 13038]]

       On page 18, between lines 15 and 16, insert the following 
     new subparagraph:
       ``(C) Amount attributable to certain child care payments.--
     For purposes of subparagraph (A), the amount determined under 
     this subparagraph is an amount equal to the Federal payments 
     to the State under subsections (g)(1)(A)(i), (g)(1)(A)(ii), 
     and (i) of section 402 for fiscal year 1994 (as in effect 
     during such fiscal year).''.
       On page 18, line 16, strike ``(C)'' and insert ``(D)''.
       On page 22, line 12, strike ``$16,795,323,000'' and insert 
     ``$15,795,323,000''.
       At the end of title VI, add the following new section:

     SEC.   . WORK PROGRAM RELATED CHILD CARE.

       (a) Establishment.--The Secretary of Health and Human 
     Services shall, upon the application of a State under 
     subsection (c), provide a grant to such State for the 
     provision of child care services to individuals.
       (b) Funding.--For the purpose of providing child care 
     services for eligible children through the awarding of grants 
     to States under this section for a fiscal year, the Secretary 
     of Health and Human Services shall pay, from funds in the 
     Treasury not otherwise appropriated, an amount equal to the 
     sum of--
       (1) the outlays for child care services under sections 
     402(g)(1)(A)(i), 402(g)(1)(A)(ii), and 402(i) of the Social 
     Security Act (as such sec-
      tions existed on the day before the date of enactment of 
     this Act) for fiscal year 1994; and
       (2)(A) for fiscal year 1996, $246,000,000;
       (B) for fiscal year 1997, $311,000,000;
       (C) for fiscal year 1998, $570,000,000;
       (D) for fiscal year 1999, $1,122,000,000; and
       (E) for fiscal year 2000, $3,776,000,000.
       (c) Application.--To be eligible to receive a grant under 
     this section, a State shall prepare and submit to the 
     Secretary of Health and Human Services an application at such 
     time, in such manner, and containing such information as the 
     Secretary may require.
       (d) Amount of Grant.--From the amounts available under 
     subsection (b) for a fiscal year, the Secretary of Health and 
     Human Services shall allot to each State (with an application 
     approved under subsection (c)) an amount which bears the same 
     relationship to such amounts as the total number of eligible 
     children in the State bears to the total number of eligible 
     children in all States (with applications approved under 
     subsection (c)).
       (e) Use of Funds.--
       (1) In general.--Amounts received by a State under a grant 
     awarded under this section shall be used to carry out 
     programs and activities to provide child care services to 
     eligible children residing within such State.
       (2) Eligible children.--For purposes of this section, the 
     term ``eligible child'' means an individual--
       (A) who is less than 13 years of age; and
       (B) who resides with a parent or parents who are working 
     pursuant to a work requirement contained in section 404 of 
     the Social Security Act (as amended by section 101), are 
     attending a job training or educational program, or are at 
     risk of falling into welfare.
       (3) Guarantee.--Notwithstanding any other provision of this 
     Act, or of part A of title IV of the Social Security Act--
       (A) no parent of a preschool age child shall be penalized 
     or sanctioned for failure to participate in a job training, 
     educational, or work program if child care assistance in an 
     appropriate child care program is not provided for the child 
     of such parent; and
       (B) no parent of an elementary school age child shall be 
     penalized or sanctioned for failure to participate in a job 
     training, educational, or work program before or after normal 
     school hours if assistance in an appropriate before or after 
     school program is not provided for the child of such parent.
       (f) General Provisions.--
       (1) Other requirements.--The requirements, standards, and 
     criteria under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.), except for the provisions 
     of section 658G of such Act, shall apply to the funds 
     appropriated under this section to the extent that such 
     requirements, standards, and criteria do not directly 
     conflict with the provisions of this section.
       (2) Maintenance of Effort.--A State, in utilizing the 
     proceeds of a grant received under this section, shall 
     maintain the expenditures of the State for child care 
     activities at a level that is equal to not less than the 
     level of such expenditures maintained by the State under the 
     provisions of law referred to in subsection (b) for fiscal 
     year 1994.
       (g) Sense of the Senate Regarding Financing.--
       (1) Findings.--The Senate finds that--
       (A) child care is essential to the success of real welfare 
     reform and this Act dramatically reduces the funds designated 
     for child care while at the same time increasing the need for 
     such care; and
       (B) obsolete corporate subsidies and tax expenditures 
     consume a larger and growing portion of the funds in the 
     Treasury.
       (2) Sense of the senate.--It is the sense of the Senate 
     that the new investment in child care, above the amounts 
     appropriated under the provisions of law referred to in 
     subsection (b)(1) for fiscal year 1994, provided under this 
     section should be offset by corresponding reductions in 
     corporate welfare.
                                 ______


                   ASHCROFT AMENDMENTS NOS. 2561-2562

  Mr. ASHCROFT proposed two amendments to amendment No. 2280 proposed 
by Mr. Dole to the bill H.R. 4, supra, as follows:
                           Amendment No. 2561

       At the appropriate place, add the following:
                      Subtitle F--SSI Flexibility

     SEC. 251. SHORT TITLE.

       This subtitle may be cited as the ``Supplemental Social 
     Security Income Flexibility Act of 1995''.

     SEC. 252. BLOCK GRANTS TO THE STATES FOR SUPPLEMENTAL 
                   SECURITY INCOME FOR THE DISABLED AND BLIND.

       (a) In General.--Title XVI (42 U.S.C. 1381-1383d) is 
     amended by adding at the end the following new part:

 ``Part C--Block Grants to States for Supplemental Security Income for 
                         the Disabled and Blind


                       ``purpose; implementation

       ``Sec. 1651. (a) Purpose.--The purpose of this part is to 
     consolidate Federal assistance to the States for supplemental 
     income for individuals who are disabled or blind (other than 
     individuals who have attained age 65) into a single grant for 
     such purpose, thereby giving States maximum flexibility to--
       ``(1) require beneficiaries who are parents to ensure that 
     their school-age children attend school;
       ``(2) require minors who are beneficiaries to attend 
     school;
       ``(3) require parent beneficiaries to ensure that their 
     children receive the full complement of childhood 
     immunizations;
       ``(4) require beneficiaries not to use illegal drugs or 
     abuse other drugs;
       ``(5) deny assistance to children solely on the basis that 
     a child is unable to perform age-appropriate activities;
       ``(6) deny assistance to individuals whose disabilities are 
     primarily the result of their abuse of illegal or legal 
     drugs, or alcohol;
       ``(7) deny assistance to illegal aliens;
       ``(8) require individuals who sponsor the residency of 
     legal aliens to support those they sponsor;
       ``(9) involve religious and charitable organizations, 
     voluntary associations, civic groups, community 
     organizations, nonprofit entities, benevolent and fraternal 
     orders, philanthropic entities, and other groups in the 
     private sector, as appropriate, in the provision of 
     assistance to needy disabled and blind individuals which the 
     funding States receive under this part.
       ``(b) Implementation.--This purpose shall be implemented in 
     accordance with conditions in each State and as determined by 
     State law.


                          ``payments to states

       ``Sec. 1652. (a) Amount.--
       ``(1) In general.--Each State shall, subject to the 
     requirements of this part, be entitled to receive quarterly 
     payments for fiscal years 1997, 1998, 1999, and 2000 in an 
     amount equal to 25 percent of the annual amount determined 
     under paragraph (2) for such fiscal year for carrying out the 
     purpose described in section 1651.
       ``(2) Annual amount.--The annual amount determined for a 
     State under this paragraph for each fiscal year beginning 
     with fiscal year 1997 is equal to an amount which bears the 
     same relationship to the total funds for such year specified 
     in paragraph (3) as the annual amount determined for such 
     State under part A of this title with respect to persons who 
     are disabled or blind individuals, other than individuals who 
     have attained age 65, for fiscal year 1994 bore to the total 
     funds for all States under such part with respect to such 
     persons for such year.
       ``(3) Total funds.--The total funds specified in this 
     paragraph are as follows:
       ``(A) For fiscal year 1997, $20,203,000,000.
       ``(B) For fiscal year 1998, $22,065,000,000.
       ``(C) For fiscal year 1999, $24,457,000,000.
       ``(D) For fiscal year 2000, $29,311,000,000.
       ``(b) Funding Requirements.--The Secretary of the Treasury 
     shall make quarterly payments described in subsection (a)(1) 
     directly to each State in accordance with section 6503 of 
     title 31, United States Code.
       ``(c) Expenditure of Funds; Rainy Day Fund.--Amounts 
     received by a State under this part for any fiscal year shall 
     be expended by the State in such fiscal year or in the 
     succeeding fiscal year; except for such amounts as the State 
     deems necessary to set aside in a separate account to 
     provide, without fiscal limitation, for unexpected levels of 
     assistance as a result of events which cause an unexpected 
     increase in the need for providing supplemental income for 
     individuals who are disabled or blind (other than individuals 
     who have attained the age 65). Any amounts remaining in such 
     segregated account after fiscal year 2000 shall be expended 
     by a State for the purpose described in section 1651 of this 
     part as in effect in fiscal year 2000.
       ``(d) Prohibition on Use of Funds.--Except as provided in 
     subsection (e), a State to which a payment is made under this 
     part may not use any part of such payment to provide medical 
     services.
       ``(e) Authority To Use Portion of Grant for Other 
     Purposes.--
       ``(1) In general.--A State may use not more than 30 percent 
     of the annual amount paid to the State under this part for a 
     fiscal year to carry out a State program pursuant to any or 
     all of the following provisions of law:
       ``(A) Part A of title IV of this Act.
       ``(B) Part D of title IV of this Act.

[[Page S 13039]]

       ``(C) The Food Stamp Act.
       ``(D) The various Acts amended by title IV of the Work 
     Opportunity Act of 1995.
       ``(E) The Child Care and Development Block Grant Act of 
     1990.
       ``(F) Title VII of the Work Opportunity Act of 1995.
       ``(G) Title XIX of this Act.
       ``(2) Applicable rules.--Any amount paid to the State under 
     this part that is used to carry out a State program pursuant 
     to a provision of law specified in paragraph (1) shall not be 
     subject to the requirements of this part, but shall be 
     subject to the requirements that apply to Federal funds 
     provided directly under the provision of law to carry out the 
     program.


               ``administrative and fiscal accountability

       ``Sec. 1653. (a) Audits; Reimbursements.--
       ``(1) Audits.--
       ``(A) In general.--A State shall, not less than annually, 
     audit the State expenditures from amounts received under this 
     part. Such audit shall--
       ``(i) determine the extent to which such expenditures were 
     or were not expended in accordance with this part; and
       ``(ii) be conducted by an approved entity (as defined in 
     subparagraph (B)) in accordance with generally accepted 
     auditing principles.
       ``(B) Approved entity.--For purposes of subparagraph (A), 
     the term `approved entity' means an entity that is--
       ``(i) approved by the Secretary of the Treasury;
       ``(ii) approved by the chief executive officer of the 
     State; and
       ``(iii) independent of any agency administering activities 
     funded under this part.
       ``(2) Reimbursement.--
       ``(A) In general.--Not later than 30 days following the 
     completion of an audit under this subsection, a State shall 
     submit a copy of the audit to the State legislature and to 
     the Secretary of the Treasury.
       ``(B) Repayment.--Each State shall pay to the United States 
     amounts ultimately found by the approved entity under 
     paragraph (1)(A) not to have been expended in accordance with 
     this part plus 10 percent of such amount as a penalty, or the 
     Secretary of the Treasury may offset such amounts plus the 10 
     percent penalty against any other amount in any other year 
     that the State may be entitled to receive under this part.
       ``(b) Additional Accounting Requirements.--The provisions 
     of chapter 75 of title 31, United States Code, shall apply to 
     the audit requirements of this section.
       ``(c) Reporting Requirements; Form, Contents.--
       ``(1) Annual reports.--A State shall prepare comprehensive 
     annual reports on the activities carried out with amounts 
     received by a State under this part.
       ``(2) Content.--Reports prepared under this section--
       ``(A) shall be for the most recently completed fiscal year;
       ``(B) shall be in accordance with generally accepted 
     accounting principles, including the provisions of chapter 75 
     of title 31, United States Code;
       ``(C) shall include the results of the most recent audit 
     conducted in accordance with the requirements of subsection 
     (a) of this section; and
       ``(D) shall be in such form and contain such other 
     information as the State deems necessary--
       ``(i) to provide an accurate description of such 
     activities; and
       ``(ii) to secure a complete record of the purposes for 
     which amounts were expended in accordance with this part.
       ``(3) Copies.--A State shall make copies of the reports 
     required under this section available for public inspection 
     within the State. Copies also shall be provided upon request 
     to any interested public agency, and each such agency may 
     provide its views on such reports to the Congress.
       ``(d) Administrative Supervision--
       ``(1) Role of the secretary of the treasury.--
       ``(A) In general.--The Secretary of the Treasury shall 
     supervise the amounts received under this part in accordance 
     with subparagraph (B).
       ``(B) Limited supervision--The supervision by the Secretary 
     of the Treasury shall be limited to--
       ``(i) making quarterly payments to the States in accordance 
     with section 1652(b);
       ``(ii) approving the entities referred to in subsection 
     (a)(1)(B); and
       ``(iii) withholding payment to a State based on the 
     findings of such an entity in accordance with subsection 
     (a)(2)(B).
       ``(2) Other federal supervision.--No administrative officer 
     or agency of the United States, other than the Secretary of 
     the Treasury and, as provided for in section 1654, the 
     Attorney General, shall supervise the amounts received by the 
     States under this part or the use of such amounts by the 
     States.
       ``(e) Limited Federal Oversight.--With the exception of the 
     Department of the Treasury as provided for in this section 
     and section 1654 of this part, no Federal department or 
     agency may promulgate regulations or issue rules regarding 
     the purpose of this part.


                     ``nondiscrimination provisions

       ``Sec. 1654. (a) No Discrimination Against Individuals.--No 
     individual shall be excluded from participation in, denied 
     the benefits of, or subjected to discrimination under any 
     program or activity funded in whole or in part with amounts 
     received under this part on the basis of such individual's--
       ``(1) disability under section 504 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794);
       ``(2) sex under title IX of the Education Amendments of 
     1972 (20 U.S.C. 1681 et seq.); or
       ``(3) race, color, or national origin under title VI of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
       ``(b) Compliance.--If the Secretary of the Treasury 
     determines that a State, or an entity that has received funds 
     from amounts received by the State under this part, has 
     failed to comply with a provision of law referred to in 
     subsection (a), except as provided for in section 1655 of 
     this part, the Secretary of the Treasury shall notify the 
     chief executive officer of the State and shall request the 
     officer to secure compliance with such provision of law. If, 
     not later than 60 days after receiving such notification, the 
     chief executive officer fails or refuses to secure 
     compliance, the Secretary of the Treasury may--
       ``(1) refer the matter to the Attorney General with a 
     recommendation that an appropriate civil action be 
     instituted;
       ``(2) exercise the powers and functions provided under 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.), title IX of the Education Amendments of 1972 (20 
     U.S.C. 1681 et seq.); or section 505 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794a), (as applicable); or
       ``(3) take such other action as may be provided by law.
       ``(c) Authority of Attorney General; Civil Actions.--When a 
     matter is referred to the Attorney General pursuant to 
     subsection (b)(1), or if the Attorney General has reason to 
     believe that an entity is engaged in a pattern or practice in 
     violation of a provision of law referred to in subsection 
     (a), the Attorney General may bring a civil action in an 
     appropriate district court of the United States for such 
     relief as may be appropriate, including injunctive relief.


``SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE ORGANIZATIONS.

       ``Sec. 1655. (a) In General.--
       (1) State options.--Notwithstanding any other provision of 
     law, a State may--
       ``(A) administer and provide services under the programs 
     described in subparagraphs (A) and (B)(i) of paragraph (2) 
     through contracts with charitable, religious, or private 
     organizations; and
       ``(B) provide beneficiaries of assistance under the 
     programs described in subparagraphs (A) and (B)(ii) of 
     paragraph (2) with certificates, vouchers, or other forms of 
     disbursement which are redeemable with such organizations.
       ``(2) Programs described.--The programs described in this 
     paragraph are the following programs:
       ``(A) A State program funded under part A of title IV of 
     the Social Security Act (as amended by section 101).
       ``(B) Any other program that is established or modified 
     under titles I, II, or X that--
       ``(i) permits contracts with organizations; or
       ``(ii) permits certificates, vouchers, or other forms of 
     disbursement to be provided to, or on behalf of, 
     beneficiaries, as a means of providing assistance from an 
     organization chosen by the beneficiaries.
       ``(b) Religious Organizations.--The purpose of this section 
     is to allow religious organizations to contract, or to accept 
     certificates, vouchers, or other forms of disbursement under 
     any program described in subsection (a)(2), on the same basis 
     as any other provider without impairing the religious 
     character of such organizations, and without diminishing the 
     religious freedom of beneficiaries of assistance funded under 
     such program.
       ``(c) Nondiscrimination Against Religious Organizations.--
     Religious organizations are eligible, on the same basis as 
     any other private organization, as contractors to provide 
     assistance, or to accept certificates, vouchers, or other 
     forms of disbursement, under any program described in 
     subsection (a)(2). Neither the Federal Government nor a State 
     receiving funds under such programs shall discriminate 
     against an organization which is or applies to be a 
     contractor to provide assistance, or which accepts 
     certificates, vouchers, or other forms of disbursement, on 
     the basis that the organization has a religious character.
       ``(d) Religious Character and Freedom.--
       ``(1) Religious organizations.--Notwithstanding any other 
     provision of law, any religious organization with a contract 
     described in subsection (a)(1)(A), or which accepts 
     certificates, vouchers, or other forms of disbursement under 
     subsection (a)(1)(B), shall retain its independence from 
     Federal, State, and local governments, including such 
     organization's control over the definition, development, 
     practice, and expression of its religious beliefs.
       ``(2) Additional safeguards.--Neither the Federal 
     Government nor a State shall require a religious organization 
     to--
       ``(A) alter its form of internal governance;
       ``(B) form a separate, nonprofit corporation to receive and 
     administer the assistance funded under a program described in 
     subsection (a)(2) solely on the basis that it is a religious 
     organization; or
       ``(C) remove religious art, icons, scripture, or other 
     symbols;
     in order to be eligible to contract to provide assistance, or 
     to accept certificates, vouchers, or other forms of 
     disbursement, funded under a program described in subsection 
     (a)(2).

[[Page S 13040]]

       ``(e) Rights of Beneficiaries of Assistance.--
       ``(1) In general.--If an individual described in paragraph 
     (2) has an objection to the religious character of the 
     organization or institution from which the individual 
     receives, or would receive, assistance funded under any 
     program described in subsection (a)(2), the State in which 
     the individual resides shall provide such individual (if 
     otherwise eligible for such assistance) with assistance from 
     an alternative provider the value of which is not less than 
     the value of the assistance which the individual would have 
     received from such organization.
       ``(2) Individual described.--An individual described in 
     this paragraph is an individual who receives, applies for, or 
     requests to apply for, assistance under a program described 
     in subsection (a)(2).
       ``(f) Nondiscrimination in Employment.--
       ``(1) In general.--Except as provided in paragraph (2), 
     nothing in this section shall be construed to modify or 
     affect the provisions of any other Federal or State law or 
     regulation that relates to discrimination in employment on 
     the basis of religion.
       ``(2) Exception.--A religious organization with a contract 
     described in subsection (a)(1)(A), or which accepts 
     certificates, vouchers, or other forms of disbursement under 
     subsection (a)(1)(B), may require that an employee rendering 
     service pursuant to such contract, or pursuant to the 
     organization's acceptance of certificates, vouchers, or other 
     forms of disbursement adhere to--
       ``(A) the religious tenets and teachings of such 
     organization; and
       ``(B) any rules of the organization regarding the use of 
     drugs or alcohol.
       ``(g) Nondiscrimination Against Beneficiaries.--Except as 
     otherwise provided in law, a religious organization shall not 
     discriminate against an individual in regard to rendering 
     assistance funded under any program described in subsection 
     (a)(2) on the basis of religion, a religious belief, or 
     refusal to actively participate in a religious practice.
       ``(h) Fiscal Accountability.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     religious organization contracting to provide assistance 
     funded under any program described in subsection (a)(2) shall 
     be subject to the same regulations as other contractors to 
     account in accord with generally accepted auditing principles 
     for the use of such funds provided under such programs.
       ``(2) Limited audit.--If such organization segregates 
     Federal funds provided under such programs into separate 
     accounts, then only the financial assistance provided with 
     such funds shall be subject to audit.
       ``(i) Compliance.--A religious organization which has its 
     rights under this section violated may enforce its claim 
     exclusively by asserting a civil action for such relief as 
     may be appropriate, including injunctive relief or damages, 
     in an appropriate State court against the entity or agency 
     that allegedly commits such violation.

     ``SEC. 1656. LIMITATIONS ON USE OF FUNDS FOR CERTAIN 
                   PURPOSES.

       ``No funds provided directly to institutions or 
     organizations to provide services and administer programs 
     described in section 102(a)(2) and programs established or 
     modified under this Act shall be expended for sectarian 
     worship or instruction. This section shall not apply to 
     financial assistance provided to or on behalf of 
     beneficiaries of assistance in the form of certificates, 
     vouchers, or other forms of disbursement, if such beneficiary 
     may choose where such assistance shall be redeemed.''
       (b) Conforming Amendment.--Section 1602 (42 U.S.C. 1381a) 
     is amended by striking ``Every'' and inserting ``(a) Every'' 
     and by adding at the end the following new subsection:
       ``(b) No person who is a disabled or blind individual 
     (other than a person who has attained age 65) shall be an 
     eligible individual or eligible spouse for purposes of this 
     part with respect to any month beginning after September 30, 
     1996, but shall be eligible for services to the disabled or 
     blind funded under part C of this title.''.

     SEC. 253. CONFORMING AMENDMENTS TO THE BUDGET ACT.

       The Balanced Budget and Emergency Deficit Control Act of 
     1985 (2 U.S.C. 900 et seq.) is amended in section 255(h) (2 
     U.S.C. 905(h), by striking ``Supplemental Security Income 
     Program (75-0406-0-1-609); and'' and inserting ``Supplemental 
     Security Income Program and block grants to States for 
     supplemental security income for disabled individuals; and''.

     SEC. 254. EFFECTIVE DATE.

       The amendments made by this subtitle shall take effect on 
     October 1, 1996.
                           Amendment No. 2562

       Beginning on page 158, strike line 14 and all that follows 
     through page 253, line 20, and insert the following:

     SEC. 301. FOOD STAMP BLOCK GRANT PROGRAM.

       The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is 
     amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Food Stamp Flexibility Act 
     of 1995'.

     ``SEC. 2. DEFINITION.

       ``In this Act, the term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, Guam, the Virgin Islands of the United States, and the 
     reservations of an Indian tribe whose tribal organization 
     meets the requirements of this Act for participation as a 
     State agency.

     ``SEC. 3. PURPOSE; IMPLEMENTATION.

       ``(a) Purpose.--The purpose of this Act is to strengthen 
     individuals by helping them move from dependence on 
     government benefits to economic independence by consolidating 
     Federal assistance to the States for food assistance to the 
     needy into a single grant that gives a State maximum 
     flexibility to--
       ``(1) require a beneficiary who is a parent to ensure that 
     any school-age child of the parent attend school;
       ``(2) require a minor who is a beneficiary to attend 
     school;
       ``(3) require a beneficiary who is a parent to ensure that 
     any child of the parent receive the full complement of 
     childhood immunizations;
       ``(4) limit the amount of time a beneficiary may receive 
     assistance;
       ``(5) require beneficiaries not to use illegal drugs or 
     abuse other drugs;
       ``(6) deny assistance to illegal aliens;
       ``(7) require an individual who sponsors the residency of a 
     legal alien to support the alien sponsored; and
       ``(8) involve religious and charitable organizations, 
     voluntary associations, civic groups, community 
     organizations, nonprofit entities, benevolent and fraternal 
     orders, philanthropic entities, and other groups in the 
     private sector, as appropriate, in the provision of services 
     and assistance to needy individuals with the funding the 
     State receives under this Act.
       ``(b) Implementation.--The purpose in subsection (a) shall 
     be implemented in accordance with conditions in each State 
     and as determined by State law.

     ``SEC. 4. PAYMENT TO STATES.

       ``(a) State Mandates for Work by Beneficiaries.--
       ``(1) In general.--As a condition of receiving a payment of 
     funds under this Act, a State shall--
       ``(A) require each adult member of any family receiving 
     assistance from a State under this Act to engage in work (as 
     defined by the State) when the State determines the adult 
     member is ready to engage in work, or after 24 months 
     (whether or not consecutive) of receiving assistance from the 
     State under this Act, whichever is earlier; and
       ``(B) satisfy the minimum participation rates specified in 
     section 404 of the Social Security Act under rules similar to 
     the rules specified in such section.
       ``(2) Eligibility.--Any individual who fails or refuses to 
     work, and any member of the family of the individual residing 
     with the individual, shall not be eligible for assistance 
     from funds provided to the State under this Act.
       ``(b) Amount.--
       ``(1) In general.--Subject to the requirements of this Act, 
     each State shall be entitled to receive quarterly payments 
     for fiscal years 1996, 1997, 1998, 1999, and 2000 in an 
     amount equal to 25 percent of the annual amount determined 
     under paragraph (2) for the fiscal year for carrying out the 
     purpose described in section 3.
       ``(2) Annual amount.--The annual amount determined for a 
     State under this paragraph for each fiscal year beginning 
     with fiscal year 1996 is equal to an amount which bears the 
     same relationship to the total funds for such year specified 
     in paragraph (3) as the annual amount determined for such 
     State under this Act for fiscal year 1995 bore to the total 
     funds for all States under this Act for such year.
       ``(3) Total funds.--The total funds specified in this 
     paragraph are as follows:
       ``(A) For fiscal year 1996, $25,427,000,000.
       ``(B) For fiscal year 1997, $26,425,000,000.
       ``(C) For fiscal year 1998, $27,539,000,000.
       ``(D) For fiscal year 1999, $28,658,000,000.
       ``(E) For fiscal year 2000, $29,994,000,000.
       ``(c) Funding Requirements.--The Secretary of the Treasury 
     shall make quarterly payments described in subsection (b)(1) 
     directly to each State in accordance with section 6503 of 
     title 31, United States Code.
       ``(d) Expenditure of Funds.--
       ``(1) In general.--Any amount received by a State under 
     this Act for a fiscal year shall be expended by the State in 
     the fiscal year or in the succeeding fiscal year, except for 
     such amounts as the State considers necessary to set aside in 
     a separate account to provide, without fiscal limitation, for 
     unexpected levels of assistance during a period of high 
     unemployment or any other event that causes an unexpected 
     increase in the need for food assistance to needy 
     individuals.
       ``(2) Remaining amounts.--Any amount in the separate 
     account under paragraph (1) after fiscal year 2000 shall be 
     expended by the State for the purpose described in section 3 
     of this Act.
       ``(e) Prohibition on Use of Funds.--Except as provided in 
     subsection (f), a State to which a payment is made under this 
     section may not use any part of the payment to provide 
     medical services.
       ``(f) Authority To Use Portion of Grant for Other 
     Purposes.--
       ``(1) In general.--A State may use not more than 30 percent 
     of the annual amount paid to the State under this Act for a 
     fiscal year to carry out a State program under--
       ``(A) part A of title IV of the Social Security Act;
       ``(B) part D of title IV of the Social Security Act;
       ``(C) title XVI of the Social Security Act;
       ``(D) the various Acts amended by title IV of the Work 
     Opportunity Act of 1995;

[[Page S 13041]]

       ``(E) the Child Care and Development Block Grant Act of 
     1990;
       ``(F) title VII of the Work Opportunity Act of 1995; or
       ``(G) title XIX of the Social Security Act.
       ``(2) Applicable rules.--Any amount paid to a State under 
     this Act that is used to carry out a State program under a 
     provision of law specified in paragraph (1) shall not be 
     subject to the requirements of this Act, but shall be subject 
     to the requirements that apply to Federal funds provided 
     directly under the provision of law to carry out the program.

     ``SEC. 5. ADMINISTRATIVE AND FISCAL ACCOUNTABILITY.

       ``(a) Audits; Reimbursement.--
       ``(1) Audits.--
       ``(A) In general.--A State shall, not less than annually, 
     audit the State expenditures from amounts received under this 
     Act. The audit shall--
       ``(i) determine the extent to which the expenditures were 
     or were not expended in accordance with this Act; and
       ``(ii) be conducted by an approved entity in accordance 
     with generally accepted accounting principles.
       ``(B) Approved entity.--For purposes of subparagraphs (A), 
     the term `approved entity' means an entity that is--
       ``(i) approved by the Secretary of the Treasury;
       ``(ii) approved by the chief executive officer of a State; 
     and
       ``(iii) independent of any agency administering activities 
     funded under this Act.
       ``(2) Reimbursement.--
       ``(A) In general.--Not later than 30 days following the 
     completion of an audit under this subsection, a State shall 
     submit a copy of the audit to the State legislature and to 
     the Secretary of the Treasury.
       ``(B) Repayment.--Each State shall pay to the United States 
     amounts ultimately found by the approved entity under 
     paragraph (1)(A) not to have been expended in accordance with 
     this Act plus 10 percent of the amount as a penalty, or the 
     Secretary of the Treasury may offset the amount plus the 10 
     percent penalty against any other amount in any other year 
     that the State may be entitled to receive under this Act.
       ``(b) Additional Accounting Requirement.--The provisions of 
     chapter 75 of title 31, United States Code, shall apply to 
     the audit requirements of this section.
       ``(c) Reporting Requirements; Form, Contents.--
       ``(1) Annual reports.--A State shall prepare comprehensive 
     annual reports on activities carried out with amounts 
     received by the State under this Act.
       ``(2) Content.--Reports prepared under this section--
       ``(A) shall be for the most recently completed fiscal year;
       ``(B) shall be in accordance with generally accepted 
     accounting principles and the provisions of section 6503 of 
     title 31, United States Code;
       ``(C) shall include the results of the most recent audit 
     conducted in accordance with the requirements of subsection 
     (a) of this section; and
       ``(D) shall be in such form and contain such other 
     information as the State considers necessary--
       ``(i) to provide an accurate description of each activity; 
     and
       ``(ii) to secure a complete record of the purposes for 
     which amounts were expended in accordance with this Act.
       ``(3) Copies.--A State shall make copies of the reports 
     required under this section available for public inspection 
     within the State. Copies also shall be provided upon request 
     to any interested public agency, and each agency may provide 
     views on each report to the Congress.
       ``(d) Administrative Supervision.--
       ``(1) Role of the secretary of the treasury.--
       ``(A) In general.--The Secretary of the Treasury shall 
     supervise any amounts received under this Act in accordance 
     with subparagraph (B).
       ``(B) Limited supervision.--The supervision by the 
     Secretary of the Treasury shall be limited to--
       ``(i) making quarterly payments to the States in accordance 
     with section 4(c);
       ``(ii) approving an entity under subsection (a)(1)(B); and
       ``(iii) withholding payment to a State based on the 
     findings of an approved entity under subsection (a)(2)(B).
       ``(2) Other federal supervision.--No administrative officer 
     or agency of the United States, other than the Secretary of 
     the Treasury and, as provided for in section 6, the Attorney 
     General, shall supervise the amounts received by the States 
     under this Act or the use of the funds by the States.
       ``(e) Limited Federal Oversight.--With the exception of the 
     Department of the Treasury under this section and section 6 
     of this Act, no Federal department or agency may promulgate 
     regulations or issue rules regarding the purpose of this Act.

     ``SEC. 6. NONDISCRIMINATION PROVISIONS.

       ``(a) No Discrimination Against Individuals.--No individual 
     shall be excluded from participation in, denied the benefits 
     of, or subjected to discrimination under any program or 
     activity funded in whole or in part with amounts received 
     under this Act on the basis of--
       ``(1) disability under section 504 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794);
       ``(2) sex under title IX of the Education Amendments of 
     1972 (20 U.S.C. 1681 et seq.); or
       ``(3) race, color, or national origin under title VI of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
       ``(b) Compliance.--
       ``(1) Notification.--If the Secretary of the Treasury 
     determines that a State, or an entity that has received funds 
     from amounts received by the State under this Act, has failed 
     to comply with a provision of law referred to in subsection 
     (a), except as provided for in section 7 of this Act, the 
     Secretary of the Treasury shall notify the chief executive 
     officer of the State and shall request the officer to secure 
     compliance with the provision of law.
       ``(2) Enforcement.--If, not later than 60 days after 
     receiving a notification under paragraph (1), the chief 
     executive officer fails or refuses to secure compliance, the 
     Secretary of the Treasury may--
       ``(A) refer the matter to the Attorney General with a 
     recommendation that an appropriate civil action be 
     instituted;
       ``(B) exercise the powers and functions provided under 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.), title IX of the Education Amendments of 1972 (20 
     U.S.C. 1681 et seq.); or section 505 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794a); or
       ``(C) take such other action as may be provided by law.
       ``(c) Authority of Attorney General; Civil Actions.--When a 
     matter is referred to the Attorney General under subsection 
     (b)(2)(A), or if the Attorney General has reason to believe 
     that an entity is engaged in a pattern or practice in 
     violation of a provision of law referred to in subsection 
     (a), the Attorney General may bring a civil action in an 
     appropriate district court of the United States for such 
     relief as may be appropriate, including injunctive relief.

     SEC. 7. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR 
                   PRIVATE ORGANIZATIONS.

       (a) In General.--
       (1) State options.--Notwithstanding any other provision of 
     law, a State may--
       (A) administer and provide services under the programs 
     described in subparagraphs (A) and (B)(i) of paragraph (2) 
     through contracts with charitable, religious, or private 
     organizations; and
       (B) provide beneficiaries of assistance under the programs 
     described in subparagraphs (A) and (B)(ii) of paragraph (2) 
     with certificates, vouchers, or other forms of disbursement 
     which are redeemable with such organizations.
       (2) Programs described.--The programs described in this 
     paragraph are the following programs:
       (A) A State program funded under part A of title IV of the 
     Social Security Act (as amended by section 101).
       (B) Any other program that is established or modified under 
     titles I, II, or X that--
       (i) permits contracts with organizations; or
       (ii) permits certificates, vouchers, or other forms of 
     disbursement to be provided to, beneficiaries, as a means of 
     providing assistance.
       (b) Religious Organizations.--The purpose of this section 
     is to allow religious organizations to contract, or to accept 
     certificates, vouchers, or other forms of disbursement under 
     any program described in subsection (a)(2), on the same basis 
     as any other provider without impairing the religious 
     character of such organizations, and without diminishing the 
     religious freedom of beneficiaries of assistance funded under 
     such program.
       (c) Nondiscrimination Against Religious Organizations.--
     Religious organizations are eligible, on the same basis as 
     any other private organization, as contractors to provide 
     assistance, or to accept certificates, vouchers, or other 
     forms of disbursement, under any program described in 
     subsection (a)(2). Neither the Federal Government nor a State 
     receiving funds under such programs shall discriminate 
     against an organization which is or applies to be a 
     contractor to provide assistance, or which accepts 
     certificates, vouchers, or other forms of disbursement, on 
     the basis that the organization has a religious character.
       (d) Religious Character and Freedom.--
       (1) Religious organizations.--Notwithstanding any other 
     provision of law, any religious organization with a contract 
     described in subsection (a)(1)(A), or which accepts 
     certificates, vouchers, or other forms of disbursement under 
     subsection (a)(1)(B), shall retain its independence from 
     Federal, State, and local governments, including such 
     organization's control over the definition, development, 
     practice, and expression of its religious beliefs.
       (2) Additional safeguards.--Neither the Federal Government 
     nor a State shall require a religious organization to--
       (A) alter its form of internal governance;
       (B) form a separate, nonprofit corporation to receive and 
     administer the assistance funded under a program described in 
     subsection (a)(2) solely on the basis that it is a religious 
     organization; or
       (C) remove religious art, icons, scripture, or other 
     symbols;
     in order to be eligible to contract to provide assistance, or 
     to accept certificates, vouchers, or other forms of 
     disbursement, funded under a program described in subsection 
     (a)(2).
       (e) Rights of Beneficiaries of Assistance.--

[[Page S 13042]]

       (1) In general.--If an individual described in paragraph 
     (2) has an objection to the religious character of the 
     organization or institution from which the individual 
     receives, or would receive, assistance funded under any 
     program described in subsection (a)(2), the State in which 
     the individual resides shall provide such individual (if 
     otherwise eligible for such assistance) with assistance from 
     an alternative provider the value of which is not less than 
     the value of the assistance which the individual would have 
     received from such organization.
       (2) Individual described.--An individual described in this 
     paragraph is an individual who receives, applies for, or 
     requests to apply for, assistance under a program described 
     in subsection (a)(2).
       (f) Nondiscrimination in Employment.--
       (1) In general.--Except as provided in paragraph (2), 
     nothing in this section shall be construed to modify or 
     affect the provisions of any other Federal or State law or 
     regulation that relates to discrimination in employment on 
     the basis of religion.
       (2) Exception.--A religious organization with a contract 
     described in subsection (a)(1)(A), or which accepts 
     certificates, vouchers, or other forms of disbursement under 
     subsection (a)(1)(B), may require that an employee rendering 
     service pursuant to such contract, or pursuant to the 
     organization's acceptance of certificates, vouchers, or other 
     forms of disbursement adhere to--
       (A) the religious tenets and teachings of such 
     organization; and
       (B) any rules of the organization regarding the use of 
     drugs or alcohol.
       (g) Nondiscrimination Against Beneficiaries.--Except as 
     otherwise provided in law, a religious organization shall not 
     discriminate against an individual in regard to rendering 
     assistance funded under any program described in subsection 
     (a)(2) on the basis of religion, a religious belief, or 
     refusal to actively participate in a religious practice.
       (h) Fiscal Accountability.--
       (1) In general.--Except as provided in paragraph (2), any 
     religious organization contracting to provide assistance 
     funded under any program described in subsection (a)(2) shall 
     be subject to the same regulations as other contractors to 
     account in accord with generally accepted auditing principles 
     for the use of such funds provided under such programs.
       (2) Limited audit.--If such organization segregates Federal 
     funds provided under such programs into separate accounts, 
     then only the financial assistance provided with such funds 
     shall be subject to audit.
       (i) Compliance.--A religious organization which has its 
     rights under this section violated may enforce its claim 
     exclusively by asserting a civil action for such relief as 
     may be appropriate, including injunctive relief or damages, 
     in an appropriate State court against the entity or agency 
     that allegedly commits such violation.

     SEC. 8. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

       No funds provided directly to institutions or organizations 
     to provide services and administer programs described in 
     section 102(a)(2) and programs established or modified under 
     this Act shall be expended for sectarian worship or 
     instruction. This section shall not apply to financial 
     assistance provided to or on behalf of beneficiaries of 
     assistance in the form of certificates, vouchers, or other 
     forms of disbursement, if such beneficiary may choose where 
     such assistance shall be redeemed.

     SEC. 302. CONFORMING AMENDMENTS.

       (a)(1) Section 250(c)(8) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8)) is 
     amended--
       (A) by inserting ``and'' at the end of subparagraph (A);
       (B) by striking ``; and'' at the end of subparagraph (B) 
     and inserting a period; and
       (C) by striking subparagraph (C).
       (2) Section 255 of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 905) is amended--
       (A) in subsection (h) (as enacted by section 255 of Public 
     Law 99-177), by striking ``Food stamp programs (12-3505-0-1-
     605 and 12-3550-0-1-605);''; and
       (B) by redesignating subsection (h) (as added by section 
     13101(c)(4) of Public Law 101-508) as subsection (j).
       (b) Section 5 of the Agriculture and Consumer Protection 
     Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is 
     amended--
       (1) in subsection (h)(1), by striking ``food stamps'' and 
     inserting ``food assistance provided under the Food Stamp 
     Flexibility Act of 1995''; and
       (2) in subsection (i), by striking paragraph (1) and 
     inserting the following:
       ``(1) food assistance provided under the Food Stamp 
     Flexibility Act of 1995;''.
       (c) Section 205 of the Emergency Food Assistance Act of 
     1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended--
       (1) by striking subsection (a); and
       (2) in subsection (b), by striking ``(b) Except'' and 
     inserting ``Except''.
       (d)(1) Section 3(a)(2) of the Commodity Distribution Reform 
     Act and WIC Amendments of 1987 (Public Law 100-237; 7 U.S.C. 
     612c note) is amended--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraphs (C) through (F) as 
     subparagraphs (B) through (E), respectively.
       (2) Section 3(e)(1)(D)(iii) of the Commodity Distribution 
     Reform Act and WIC Amendments of 1987 (Public Law 100-237; 7 
     U.S.C. 612c note) is amended--
       (A) by striking subclause (II); and
       (B) by redesignating subclauses (III) through (V) as 
     subclauses (II) through (IV), respectively.
       (e) Section 110(h)(2) of the Hunger Prevention Act of 1988 
     (Public Law 100-435; 7 U.S.C. 612c note) is amended by 
     striking ``the Food Stamp Act of 1977,'' and inserting ``the 
     Food Stamp Flexibility Act of 1995,''.
       (f) The matter under the heading ``food stamp program'' 
     under the heading ``Food and Nutrition Service'' of chapter I 
     of title I of the Supplemental Appropriations Act, 1985 (99 
     Stat. 297; 7 U.S.C. 2012a) is amended by striking ``: 
     Provided,'' and all that follows through ``health centers''.
       (g) The first sentence of section 1337 of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 2270) is amended by striking 
     ``, including but not limited to the Food Stamp Act of 
     1977,''.
       (h)(1) Section 1584 of the Food Security Act of 1985 (7 
     U.S.C. 3175a) is amended by striking ``in households'' and 
     all that follows through ``1977'' and inserting ``and 
     families eligible to participate in programs under the Food 
     Stamp Flexibility Act of 1995''.
       (2) Section 1585 of the Food Security Act of 1985 (7 U.S.C. 
     3175b) is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``Food Stamp Act of 1977'' and inserting ``Food Stamp 
     Flexibility Act of 1995''; and
       (B) in paragraph (1), by striking ``food stamps and 
     other''.
       (i) Section 1114 of the Agriculture and Food Act of 1981 (7 
     U.S.C. 4004a) is amended by striking subsection (d).
       (j)(1) Section 931(3) of the Food, Agriculture, 
     Conservation, and Trade Act Amendments of 1991 (Public Law 
     102-237; 7 U.S.C. 5930 note) is amended by striking 
     subparagraphs (B) and (C) and inserting the following:
       ``(B) are participating in the food assistance block grant 
     program established under the Food Stamp Flexibility Act of 
     1995; or
       ``(C) have income below 185 percent of the poverty line, as 
     defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2)), for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, the Virgin 
     Islands of the United States, and Guam, respectively.''.
       (2) Section 932(1) of the Food, Agriculture, Conservation, 
     and Trade Act Amendments of 1991 (Public Law 102-237; 7 
     U.S.C. 5930 note) is amended by striking subparagraphs (B) 
     and (C) and inserting the following:
       ``(B) is participating in the food assistance block grant 
     program established under the Food Stamp Flexibility Act of 
     1995; or
       ``(C) has income below 185 percent of the poverty line, as 
     defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2)), for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, the Virgin 
     Islands of the United States, and Guam, respectively.''.
       (k) Section 1679(c)(2) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5932(c)(2)) is 
     amended by striking ``food stamp program, the expanded food 
     and nutrition education program,'' and inserting ``expanded 
     food and nutrition education program''.
       (l) Section 245A(h)(1)(A)(iii) of the Immigration and 
     Nationality Act (8 U.S.C. 1255a(h)(1)(A)(iii)) is amended by 
     striking ``Food Stamp Act of 1977'' and inserting ``Food 
     Stamp Flexibility Act of 1995''.
       (m) Section 1956(c)(7)(D) of title 18, United States Code, 
     is amended by striking ``section 15'' and all that follows 
     through ``$5,000,'' and inserting ``the Food Stamp 
     Flexibility Act of 1995''.
       (n) Section 231(d)(3)(A)(iii) of the Carl D. Perkins 
     Vocational Education Act (20 U.S.C. 2341(d)(3)(A)(iii)) is 
     amended by striking ``Food Stamp Act of 1977'' and inserting 
     ``Food Stamp Flexibility Act of 1995''.
       (o)(1) Section 32(j) of the Internal Revenue Code of 1986 
     is amended--
       (A) by inserting ``and'' at the end of paragraph (3);
       (B) by striking ``, and'' at the end of paragraph (4) and 
     inserting a period; and
       (C) by striking paragraph (5).
       (2) Section 6103(l)(7) of the Code is amended--
       (A) in the paragraph heading, by striking ``food stamp act 
     of 1977'' and inserting ``food stamp flexibility act of 
     1995''; and
       (B) in subparagraph (D)(vi), by striking ``the Food Stamp 
     Act of 1977'' and inserting ``the Food Stamp Flexibility Act 
     of 1995''.
       (3) Section 6109 of the Code is amended--
       (A) in subsection (f) (as added by section 1735(c) of 
     Public Law 101-624)--
       (i) in the subsection heading, by striking ``Food Stamp Act 
     of 1977'' and inserting ``the Food Stamp Flexibility Act of 
     1995''; and
       (ii) in paragraph (1)--
       (I) in the first sentence, by striking ``section 9 of the 
     Food Stamp Act of 1977 (7 U.S.C. 2018)'' and inserting ``the 
     Food Stamp Flexibility Act of 1995''; and
       (II) in the second sentence, by striking ``section 12 or 15 
     of such Act (7 U.S.C. 2021 or 2024)'' and inserting ``the 
     Act''.
       (B) by redesignating subsection (f) (as added by section 
     2201(d) of Public Law 101-624) as subsection (g); and
       (4) Section 7523(b)(3)(C) of the Code is amended by 
     striking ``food stamps'' and inserting ``food assistance 
     under the Food Stamp Flexibility Act of 1995''.
       (p) Section 3(b) of the Act of June 6, 1933 (48 Stat. 114, 
     chapter 49; 29 U.S.C. 49b(b)) is amended by striking ``the 
     food stamp'' and all that follows through ``2011 et seq.),'' 
     and 

[[Page S 13043]]
     inserting ``food assistance under the Food Stamp Flexibility Act of 
     1995''.
       (q)(1) Section 4(8)(C) of the Job Training Partnership Act 
     (29 U.S.C. 1503(8)(C)) is amended by striking ``food stamps 
     pursuant to the Food Stamp Act of 1977'' and inserting ``food 
     assistance under the Food Stamp Flexibility Act of 1995''.
       (2) Section 205(a) of the Job Training Partnership Act (29 
     U.S.C. 1605(a)) is amended--
       (A) by striking paragraph (5); and
       (B) by redesignating paragraphs (6) through (14) as 
     paragraphs (5) through (13), respectively.
       (3) Section 655(b) of the Job Training Partnership Act (29 
     U.S.C. 1645(b)) is amended--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (7), (8), and (9), respectively.
       (4) Section 701(b)(2)(A) of the Job Training Partnership 
     Act (29 U.S.C. 1792(b)(2)(A)) is amended--
       (A) by inserting ``and'' at the end of clause (v);
       (B) by striking clause (vii).
       (r) Section 3803(c)(2)(C)(vii) of title 31, United States 
     Code, is amended by striking ``food stamp'' and all that 
     follows and inserting ``Food Stamp Flexibility Act of 
     1995;''.
       (s) Section 522(b)(7)(C) of the Public Health Service Act 
     (42 U.S.C. 290cc-22(b)(7)(C)) is amended by striking ``food 
     stamps'' and inserting ``food assistance under the Food Stamp 
     Flexibility Act of 1995''.
       (t)(1) Section 205(c)(2)(C) of the Social Security Act (42 
     U.S.C. 405(c)(2)(C)) is amended--
       (B) in clause (iii)(II), by striking the last sentence and 
     inserting ``Any information shared under this subclause may 
     be used by the other agency or instrumentality only for the 
     purpose of investigation of violations of Federal laws or 
     enforcement of such laws.''; and
       (B) in clause (iv)--
       (i) in the first sentence, by striking ``section 9 of the 
     Food Stamp Act of 1977 (7 U.S.C. 2018)'' and inserting ``the 
     Food Stamp Flexibility Act of 1995''; and
       (ii) in the second sentence, by striking ``section 12 or 15 
     of such Act (7 U.S.C. 2021 or 2024)'' and inserting ``the 
     Act''.
       (2) Section 303(d) of the Social Security Act (42 U.S.C. 
     503(d)) is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``food stamp agency'' 
     and inserting ``food assistance agency''; and
       (ii) in subparagraph (B), by striking ``food stamp 
     program'' and all that follows and inserting ``Food Stamp 
     Flexibility Act of 1995.'';
       (B) in paragraph (2)--
       (i) by striking subparagraph (B) and inserting the 
     following:
       ``(B) The State agency charged with the administration of 
     the State law--
       ``(i) may require each new applicant for unemployment 
     compensation to disclose whether the applicant owes any 
     amount to a State food assistance agency;
       ``(ii) may notify a State food assistance agency that the 
     applicant has been determined to be eligible for unemployment 
     compensation if--
       ``(I) the applicant disclosed under clause (i) that the 
     applicant owes an amount to the food assistance agency; and
       ``(II) the applicant has been determined to be eligible for 
     unemployment compensation;
       ``(iii) may deduct and withhold from any unemployment 
     compensation otherwise payable to an individual any amount 
     owed by the individual to a State food assistance agency; and
       ``(iv) shall pay any amount deducted and withheld under 
     clause (iii) to the appropriate State food assistance 
     agency.'';
       (ii) in subparagraph (C), by striking ``food stamp agency'' 
     and all that follows and inserting ``food assistance agency 
     as repayment by the individual to the food assistance 
     agency.''; and
       (iii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) A State food assistance agency shall reimburse the 
     State agency charged with the administration of the State 
     unemployment compensation law for the administrative costs 
     incurred by the State agency under this paragraph that are 
     attributable to payment to the food assistance agency under 
     this paragraph.''; and
       (C) by striking paragraph (4) and inserting the following:
       ``(4) In this subsection, the term `food assistance agency' 
     means an agency designated by a State to provide food 
     assistance under the Food Stamp Flexibility Act of 1995.''.
       (3) Section 402(a) of the Social Security Act (42 U.S.C. 
     602(a)) is amended--
       (A) in the first sentence--
       (i) in paragraph (7)(C)(i), by striking ``family's monthly 
     allotment of food stamp coupons'' and inserting ``food 
     assistance the family receives under the Food Stamp 
     Flexibility Act of 1995''; and
       (ii) in paragraph (30)(B), by striking ``food stamp'' and 
     inserting ``food assistance under the Food Stamp Flexibility 
     Act of 1995''; and
       (B) in the second sentence, by striking ``Food Stamp Act of 
     1977'' and inserting ``Food Stamp Flexibility Act of 1995''.
       (4) Section 410 of the Social Security Act (42 U.S.C. 610) 
     is repealed.
       (5) The first section of Public Law 94-585 (42 U.S.C. 610 
     note) is amended by striking subsection (b).
       (6) The second sentence of section 416(c) of the Social 
     Security Act (42 U.S.C. 616(c)) is amended by striking ``food 
     stamp program'' and insert ``Food Stamp Flexibility Act of 
     1995''.
       (7) Section 433(c) of the Social Security Act (42 U.S.C. 
     629c(c)) is amended--
       (A) in paragraph (1), by striking ``food stamp percentage'' 
     and inserting ``food assistance percentage''; and
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``Food stamp'' 
     and inserting ``Food assistance''; and
       (ii) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--As used in paragraph (1), the term `food 
     assistance percentage' means, with respect to a State and a 
     fiscal year, the average monthly number of children receiving 
     food assistance benefits in the State for months in the 3 
     fiscal years referred to in subparagraph (B) of this 
     paragraph, as determined from sample surveys made under the 
     Food Stamp Flexibility Act of 1995, expressed as a percentage 
     of the average monthly number of children receiving food 
     assistance benefits in the States described in paragraph (1) 
     for months in the 3 fiscal years, as so determined.''.
       (8) Section 1136(f)(1) of the Social Security Act (42 
     U.S.C. 1320b-6(f)(1)) is amended by striking ``the Federal 
     food stamp program'' and inserting ``the food assistance 
     program under the Food Stamp Flexibility Act of 1995''.
       (9) Section 1137 of the Social Security Act (42 U.S.C. 
     1320b-7) is amended--
       (A) in paragraphs (2) and (5)(B) of subsection (a), by 
     striking ``food stamp program'' each place it appears and 
     inserting ``food assistance program under the Food Stamp 
     Flexibility Act of 1995; and
       (B) in subsection (b), by striking paragraph (4) and 
     inserting the following:
       ``(4) the food assistance program under the Food Stamp 
     Flexibility Act of 1995; and''.
       (10) Section 1631(n) of the Social Security Act (42 U.S.C. 
     1383(n)) is amended--
       (A) in the subsection heading, by striking ``food stamp'' 
     and inserting ``food assistance''; and
       (B) by striking ``food stamp program'' and all that follows 
     and inserting ``food assistance program under the Food Stamp 
     Flexibility Act of 1995.''
       (11) Section 1924(d)(4)(B) of the Social Security Act (42 
     U.S.C. 1396r-5(d)(4)(B)) is amended by striking ``section 
     5(e) of the Food Stamp Act of 1977'' and inserting ``Food 
     Stamp Flexibility Act of 1995''.
       (u) Section 8(k) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(k)) is amended by striking ``the Food Stamp 
     Act of 1977'' and inserting ``the Food Stamp Flexibility Act 
     of 1995''.
       (v)(1) Section 9 of the National School Lunch Act (42 
     U.S.C. 1758) is amended--
       (A) in subsection (b)--
       (i) in paragraph (2)(C)(ii), by striking subclause (I) and 
     inserting the following:
       ``(I) a family that is receiving food assistance under the 
     Food Stamp Flexibility Act of 1995; or''; and
       (ii) in paragraph (6)--
       (I) in subparagraph (A), by striking clause (i) and 
     inserting the following:
       ``(i) a member of a family receiving assistance under the 
     Food Stamp Flexibility Act of 1995;''; and
       (II) in subparagraph (B), by striking ``food stamps'' and 
     inserting ``food assistance under the Food Stamp Flexibility 
     Act of 1995''; and
       (ii) in subsection (d)(2)(B), by striking ``the food stamp 
     program under the Food Stamp Act of 1977'' and inserting ``a 
     food assistance program under the Food Stamp Flexibility Act 
     of 1995''.
       (2) Section 17(o)(5) of the National School Lunch Act (42 
     U.S.C. 1766(o)(5)) is amended by striking subparagraph (A) 
     and inserting the following:
       ``(A) a member of a family receiving food assistance under 
     the Food Stamp Flexibility Act of 1995; or''.
       (w) Section 17 of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786) is amended--
       (1) in subsection (c)(1)--
       (A) in subparagraph (A), by striking ``food stamp program'' 
     and inserting ``food assistance program under the Food Stamp 
     Flexibility Act of 1995''; and
       (B) in subparagraph (B), by striking ``food stamps'' and 
     inserting ``food assistance under the Act'';
       (2) in subsection (d)(2)(A)(ii)(I), strike ``food stamps'' 
     and all that follows and insert ``food assistance under the 
     Food Stamp Flexibility Act of 1995; or'';
       (3) in subsection (e)(4)(A), by striking ``food stamps'' 
     and inserting ``food assistance under the Food Stamp 
     Flexibility Act of 1995'';
       (4) in subsection (f)(1)(C)(iii), by striking ``food 
     stamp'' and inserting ``food assistance programs under the 
     Food Stamp Flexibility Act of 1995''; and
       (5) in subsection (m)(7)(B)--
       (A) by striking ``the food stamp program carried out under 
     the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and 
     inserting ``any food assistance under the Food Stamp 
     Flexibility Act of 1995''; and
       (B) by striking ``in lieu of food stamps''.
       (x)(1) Section 202(a) of the Older Americans Act of 1965 
     (42 U.S.C. 3012(a)) is amended--
       (A) in paragraph (20)(A), by striking ``benefits under the 
     Food Stamp Act of 1977'' and inserting ``food assistance 
     under the Food Stamp Flexibility Act of 1995''; and
       (B) in paragraph (23), by striking ``benefits under the 
     Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and 
     inserting ``food assistance under the Food Stamp Flexibility 
     Act of 1995''.

[[Page S 13044]]

       (2) Section 206(g)(1)(N) of the Older Americans Act of 1965 
     (42 U.S.C. 3017(g)(1)(N)) is amended by striking ``food stamp 
     benefits'' and inserting ``food assistance under the Food 
     Stamp Flexibility Act of 1995''.
       (3) Section 509 of the Older Americans Act of 1965 (42 
     U.S.C. 3056g) is amended--
       (A) in the section heading, by striking ``food stamp'' and 
     inserting ``food assistance''; and
       (B) by striking ``the Food Stamp Act of 1977'' and 
     inserting ``the Food Stamp Flexibility Act of 1995''.
       (4) Section 706(a)(3) of the Older Americans Act of 1965 
     (42 U.S.C. 3058e(a)(3)) is amended to read as follows:
       ``(3) food assistance under the Food Stamp Flexibility Act 
     of 1995.''.
       (5) Section 741(a)(4)(D) of the Older Americans Act of 1965 
     (42 U.S.C. 3058k(a)(4)(D)) is amended to read as follows:
       ``(D) a food assistance program established under the Food 
     Stamp Flexibility Act of 1995;''.
       (y) Section 705(a)(2)(D) of the Older Americans Act 
     Amendments of 1992 (Public Law 102-375; 42 U.S.C. 3058k note) 
     is amended to read as follows:
       ``(D) a food assistance program established under the Food 
     Stamp Flexibility Act of 1995; and''
       (z) Section 412 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5179) is amended to 
     read as follows:

     ``SEC. 412. FOOD ASSISTANCE.

       ``On the determination by the President that, as a result 
     of a major disaster, low-income households in a State are 
     unable to purchase adequate amounts of nutritious food, the 
     State may distribute food assistance under the Food Stamp 
     Flexibility Act of 1995.''.
       (aa) Section 802(d)(2)(A) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)) is amended--
       (1) in the subparagraph heading, by striking ``Food 
     stamps'' and inserting ``Food assistance''; and
       (2) by striking clause (i) and inserting the following:
       ``(i) shall--

       ``(I) apply as a retail provider of food under any 
     applicable food assistance program under the Food Stamp 
     Flexibility Act of 1995; and
       ``(II) if approved as a retail provider of food, accept 
     food assistance payments from individuals receiving 
     assistance under the Act; and''

       (bb) Section 2605 of the Low-Income Home Energy Assistance 
     Act of 1981 (42 U.S.C. 8624) is amended--
       (1) in subsection (b)(2)(A), by striking clause (iii) and 
     inserting the following:
       ``(iii) food assistance under the Food Stamp Flexibility 
     Act of 1995; or''; and
       (2) in subsection (f)--
       (A) in paragraph (1), by striking ``food stamps'' and 
     inserting ``food assistance''; and
       (B) in paragraph (2), by striking ``and for purposes'' and 
     all that follows through ``2014(e))''.
       (cc) Section 29 of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1626) is amended--
       (1) in subsection (b), by striking ``Notwithstanding 
     section 5(a)'' and all that follows through ``food stamp 
     program,'' and inserting ``In determining the eligibility of 
     a household to participate in a food assistance program under 
     the Food Stamp Flexibility Act of 1995,''; and
       (2) in subsection (c), by striking paragraph (1) and 
     inserting the following:
       ``(1) participate in a food assistance program under the 
     Food Stamp Flexibility Act of 1995,''.

     SEC. 303. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on October 1, 1995.
                                 ______


                   KENNEDY AMENDMENTS NOS. 2563-2564

  Mr. GRAHAM (for Mr. Kennedy) proposed two amendments to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2563

       On page 289, line 5, strike the period and insert ``, but 
     in no event shall such period extend beyond 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.''
       On page 291, line 14, strike the period and insert ``, but 
     in no event shall such period extend beyond 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.''
       On page 293, line 16, insert ``but in no event shall the 
     sponsor be required to provide financial support beyond 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.'' after ``quarters''.
                                                                    ____


                           Amendment No. 2564

       On page 292, line 5, strike ``and''.
       On page 292, line 11, strike the period and insert ``; 
     and''.
       On page 292, between lines 11 and 12, insert the following 
     new subparagraph:
       (F) benefits or services which serve a compelling 
     humanitarian or compelling public interest as specified by 
     the Attorney General in consultation with appropriate Federal 
     agencies and departments.
                                 ______


                 GRAHAM (AND OTHERS) AMENDMENT NO. 2565

  Mr. GRAHAM (for himself, Mr. Bumpers, Mr. Bryan, Ms. Moseley-Braun, 
Mr. Pryor, Mr. Johnston, and Mr. Reid) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra; as 
follows:

       On page 17, line 2, strike ``paragraphs (3) and (5), 
     section 407 (relating to penalties),'' and insert ``section 
     407 (relating to penalties)''.
       On page 17, beginning on line 16, strike all through line 
     22, and insert the following: ``equal to the amount 
     determined under paragraph (3), reduced by the amount (if 
     any) determined under subparagraph (B).''
       On page 18, beginning on line 22, strike all through page 
     22, line 8, and insert the following:
       ``(3) State Family Assistance Grant.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     for purposes of paragraph (2), the amount of the State family 
     assistance grant to a State for a fiscal year is an amount 
     which bears the same ratio to the amount appropriated for 
     such fiscal year under paragraph (4)(A) as the average number 
     of minor children in families within the State having incomes 
     below the poverty line for the 3-preceding fiscal years bears 
     to the average number of minor children in families within 
     all States having incomes below the poverty line for such 3-
     preceding fiscal years.
       ``(B) Special rules.--
       ``(i) Ceiling--Except as provided in clause (ii), the 
     amount of the State family assistance grant for a fiscal year 
     to a State shall not exceed--
       ``(I) for fiscal year 1996, an amount equal to 150 percent 
     of the total amount of Federal payments to the State under 
     section 403 for fiscal year 1994 (as such section was in 
     effect before October 1, 1995); and
       ``(II) for each fiscal year there-after, an amount equal to 
     150 percent of the total amount of the State family 
     assistance grant to the State for the preceding fiscal year.
       ``(ii) Minimum Allocation.--
       ``(I) In general.--Subject to subclause (II), if the amount 
     of the State family assistance grant determined under 
     subparagraph (A) for a fiscal year is less than 0.6 percent 
     of the total amount appropriated for such fiscal year under 
     paragraph (4)(A), the amount of such grant for such fiscal 
     year shall be an amount equal to the lesser of--
       ``(aa) 0.6 percent of the amount appropriated under 
     paragraph (4)(A) for such fiscal year, or
       ``(bb) an amount equal to two times the total amount of 
     Federal payments to the State
      under section 403 for fiscal year 1994 (as such section was 
     in effect before October 1, 1995).
       ``(II) Reduction if amounts not available.--If the 
     aggregate amount by which State family assistance grants for 
     States is increased for a fiscal year under subclause (I) 
     exceeds the aggregate amount by which State family assistance 
     grants for States is decreased for the fiscal year under 
     clause (i), the amount of the State family assistance grant 
     to a State to which this clause applies shall be reduced by 
     an amount which bears the same ratio to the aggregate amount 
     of such excess as the average number of minor children in 
     families within the State having incomes below the poverty 
     line for the 3-preceding fiscal years bears to the average 
     number of minor children in families within all States to 
     which this clause applies having incomes below the poverty 
     line for such 3-preceding fiscal years.
       ``(C) Allocation of remainder.--
       ``(i) In general.--A State that is an eligible State for a 
     fiscal year shall be entitled to an increase in the State 
     family assistance grant equal to the additional allocation 
     amount determined under clause (ii) (if any) for such State 
     for the fiscal year.
       ``(ii) Additional allocation amount.--The additional 
     allocation amount for an eligible State for a fiscal year 
     determined under this clause is the amount which bears the 
     same ratio to the remainder allocation amount for the fiscal 
     year determined under clause (iii) as the average number of 
     minor children in families within the eligible State having 
     incomes below the poverty line for the 3-preceding fiscal 
     years bears to the average number of minor children in 
     families within all eligible States having incomes below the 
     poverty line for such 3-preceding fiscal years.
       ``(iii) Remainder allocation amount.--The remainder 
     allocation amount determined under this clause is the amount 
     (if any) that is equal to the difference between--
       ``(I) the amount appropriated for the fiscal year under 
     paragraph (4)(A), and
       ``(II) an amount equal to the sum of the family assistance 
     grants determined under this paragraph (without regard to 
     this subparagraph) for all States for such fiscal year.
       ``(iv) Eligible state.--For purposes of this subparagraph, 
     the term `eligible State' means a State whose State family 
     assistance grant for the fiscal year, as determined under 
     this paragraph (without regard to this subparagraph), is less 
     than the total amount of Federal payments to the State under 
     section 403 for fiscal year 1994 (as such section was in 
     effect before October 1, 1995).
       ``(D) Option to base allocations on preceding fiscal year 
     data.--The Secretary may in lieu of using data for the 3-
     preceding 

[[Page S 13045]]
     fiscal years, allocate funds under this paragraph based on data for the 
     most recent fiscal year for which accurate data are 
     available.
       ``(E) Definitions and special rules.-- For purposes of this 
     paragraph--
       ``(i) Poverty line.--The term `poverty line' has the same 
     meaning given such term in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)).
       ``(ii) 3-preceding fiscal years.--The term `3-preceding 
     fiscal years' means the 3 most recent fiscal years preceding 
     the current fiscal year for which data are available.
       ``(iv) Publication of Allocations.--Not later than January 
     15th of each calendar year, the Secretary shall publish in 
     the Federal Register the amount of the family assistance 
     grant to which each State is entitled under this subsection 
     for the fiscal year that begins in such calendar year.
       On page 23, beginning on line 7, strike all through page 
     24, line 18.
                                 ______


                    GRAHAM AMENDMENT NOS. 2566-2567

  Mr. GRAHAM proposed two amendments to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra; as follows:

                           Amendment No. 2566

       At the appropriate place, insert the following new section:

     SEC.   . UNFUNDED FEDERAL INTERGOVERNMENTAL MANDATES.

       (a) In General.--Notwithstanding any other provision of 
     law--
       (1) no later than 15 days after the beginning of fiscal 
     year 1996, and annually thereafter through fiscal year 2000, 
     the Director of the Congressional Budget Office shall, in a 
     manner similar to section 424(a) (1) and (2) of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 658c(a) (1) and (2)), estimate the direct costs for 
     the fiscal year of each Federal intergovernmental mandate 
     resulting from the enactment of this Act or any other 
     legislation that includes welfare reform provisions and 
     determine whether there are sufficient appropriations for the 
     fiscal year to provide for the direct costs.
       (2) each responsible Federal agency shall, for each fiscal 
     year described in paragraph (1), identify any appropriations 
     bill or other legislation that provides Federal funding of 
     the direct costs described in paragraph (1) which relate to 
     each Federal intergovernmental mandate within the agency's 
     jurisdiction and shall determine whether there are 
     insufficient appropriations for the fiscal year to provide 
     such direct costs, and
       (3) no later 30 days after the beginning of each fiscal 
     year described in paragraph (1), the responsible Federal 
     agency shall notify the appropriate authorizing committees of 
     Congress of the agency's determination under paragraph (2) 
     and submit either--
       (A) a statement that the agency has determined based on a 
     re-estimate of the direct costs of such mandate, after 
     consultation with State, local, and tribal governments, that 
     the amount appropriated is sufficient to pay for the direct 
     costs of such Federal intergovernmental mandate for the 
     fiscal year, or
       (B) legislative recommendations for--
       (i) implementing a less costly Federal intergovernmental 
     mandate, or
       (ii) making such mandate ineffective for the fiscal year.
       (b) Legislative Action.--
       (1) In general.--The Congress shall consider on an 
     expedited basis, under procedures similar to the procedures 
     set forth in section 425 of the Congressional Budget and 
     Impoundment Control Act of 1974 (2 U.S.C. 658d), the 
     statement or legislative recommendations described in 
     subsection (a)(3) no later than 30 days after the statement 
     or recommendations are submitted to Congress.
       (a) Legislative action required.--The Federal 
     intergovernmental mandate to which a statement described in 
     subsection (a)(2) relates shall--
       (i) cease to be effective on the date that is 60 days after 
     the date the statement is submitted under subsection 
     (a)(3)(A) unless Congress has approved the agency's 
     determination under subsection (a)(3)(A) by joint resolution 
     during the 60-day period;
       (ii) cease to be effective on the date that is 60 days 
     after the date of the legislative recommendations described 
     in subsection (a)(3)(B) are submitted to the Congress, unless 
     Congress provides otherwise by law; or
       (iii) in the case that such mandate has not yet taken 
     effect, continue not to be effective unless Congress provides 
     otherwise by law.
       (c) Definitions.--For purposes of this section:
       (1) Responsible federal agency.--The term ``responsible 
     Federal agency'' means the agency that has jurisdiction with 
     respect to a Federal intergovernmental mandate created by the 
     provisions of this Act or any other legislation that is 
     enacted that includes welfare reform provisions.
       (2) Federal intergovernmental mandate; direct costs.--The 
     terms ``Federal intergovernmental mandate'' and ``direct 
     costs'' have the meanings given such terms by section 421 of 
     the Congressional Budget and Impoundment Control Act of 1974 
     (2 U.S.C. 658).
       (3) Welfare reform provisions.--The term ``welfare reform 
     provisions'' means provisions of Federal law relating to any 
     Federal benefit for which eligibility is based on need.
                                                                    ____


                           Amendment No. 2567

       On page 64, line 10, after the period, insert the 
     following: ``In ranking States under this subsection, the 
     Secretary shall take into account the average number of minor 
     children in families in the State that have incomes below the 
     poverty line and the amount of funding provided each State 
     for such families.''
                                 ______


                    GRAHAM AMENDMENT NOS. 2568-2569
  Mr. Graham proposed two amendments to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra; as follows:

                           Amendment No. 2568

       On page 12, strike lines 10 and 11, and insert the 
     following:
       ``(C) Satisfy the work participation rate goals established 
     for the State pursuant to section 404(b)(6).
       On page 29, beginning with line 19, strike all through the 
     table preceding line 3, on page 30, and insert the following:

     ``SEC. 404. NATIONAL WORK PARTICIPATION RATE GOALS.

       ``(a) National Goals For Work Participation Rates.--A State 
     to which a grant is made under section 403 shall make every 
     effort to achieve the national work participation rate goals 
     specified in the following tables for the fiscal year with 
     respect to--
       ``(1) all families receiving assistance under the State 
     program funded under this part:
                                                           The national
                                                          participation
                                                              rate goal
      ``If the fiscal year is:                     for all families is:
        1996.......................................................  25
        1997.......................................................  30
        1998.......................................................  35
        1999.......................................................  40
        2000 or thereafter......................................... 50;
       and
       ``(2) with respect to 2-parent families receiving such 
     assistance:
                                                           The national
                                                          participation
                                                          rate goal is:
      ``If the fiscal year is:
        1996.......................................................60  
        1997 or 1998...............................................75  
        1999 or thereafter........................................90.  
       On page 35, between lines 2 and 3, insert the following:
       ``(6) Modifications to national participation rate goals to 
     reflect the number of families receiving assistance in each 
     state.--The Secretary, after consultation with the States, 
     shall establish specific work participation rate goals for 
     each State by adjusting the national participation rate goals 
     to reflect the level of Federal funds a State is receiving 
     under this part for the fiscal year and the average number of 
     minor children in families having incomes below the poverty 
     line that are estimated for the State for the fiscal year. 
     Not later than January 15, 1996, and each year thereafter, 
     the Secretary shall publish in the Federal Register the 
     participation rate goals for each State for the current 
     fiscal year.
       On page 52, beginning on line 24, strike all through 
     ``fiscal year,'' on page 53, line 4, and insert the 
     following:
       ``(3) Failure to satisfy participation rate.--
       ``(A) In general.--If the Secretary determines that a State 
     has failed to satisfy the work participation rate goals 
     specified for the State pursuant to section 404(b)(6) for a 
     fiscal year,
                           Amendment No. 2569

       On page 300, line 10, insert ``other than section 506 of 
     this Act,'' after ``law,''.
       On page 302, between lines 5 and 6, insert the following:

     SEC. 506. APPLICATION OF TITLE TO CERTAIN BENEFICIARIES.

       The provisions of, and amendments made by, this title shall 
     not apply to any noncitizen who is lawfully present in the 
     U.S. and receiving benefits under a program on the date of 
     the enactment of this Act.
                                 ______


                  DODD (AND LEAHY) AMENDMENT NO. 2570

  Mr. DODD (for himself and Mr. Leahy) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       Section 320 is amended by adding at the end thereof the 
     following:
       ``(4) State electronic benefits transfer options in 
     general.--States may implement electronic benefit transfer 
     systems under the authorities and conditions set forth in 
     section 7(i) and related provisions, or the authorities and 
     conditions set forth in paragraph (5).
       ``(5) Electronic benefits transfer card systems assistance 
     option.--If a State notifies the Secretary of its intention 
     to convert to a state-wide electronic benefits transfer card 
     system, or a multiple-State regional electronic benefits 
     transfer card system with other state-wide systems, within 
     three years of the date of enactment of this paragraph, the 
     Secretary shall allow the establishment of an electronic 
     benefits transfer card system within the State under the 
     following terms--
       ``(A) Coordination and Law Enforcement.--

[[Page S 13046]]

       ``(i) Conversion.--The Secretary shall coordinate with, and 
     assist, the State or States in a regional system in 
     eliminating the use of food stamp coupons and the full 
     conversion to an electronic benefits transfer card system 
     within three years after the decision of the State to convert 
     to the system set forth in this paragraph.
       ``(ii) Operations.--States shall take into account 
     generally accepted standard operating rules for carrying out 
     this paragraph, based on--
       ``(I) commercial electronic funds transfer technology;
       ``(II) the need to permit interstate operation and law 
     enforcement monitoring; and
       ``(III) the need to permit monitoring and investigations by 
     authorized law enforcement agencies.
       ``(iii) Law enforcement.--The Secretary, in consultation 
     with the Inspector General of the United States Department of 
     Agriculture and the United States Secret Service, shall 
     inform the State of proper security features, good management 
     techniques, and methods of deterring counterfeiting.
       ``(B) Paper and Other Alternative Benefit Transfer 
     Systems.--Beginning on the date of the implementation of the 
     electronic benefits transfer card system in a State under 
     authority of this paragraph, the Secretary shall also permit 
     the use of paper-based and other benefit transfer approaches 
     for providing benefits to food stamp households in the case 
     of special-need retail food stores.
       ``(C) State-Provided Equipment.--
       ``(i) Electronic benefits transfer card system.--
       ``(I) In general.--A retail food store that does not have 
     point-of-sale electronic benefits transfer equipment, and 
     does not intend to obtain point-of-sale electronic benefits 
     transfer equipment in the near future, shall be provided by a 
     State agency with, or reimbursed for, the costs of purchasing 
     and installing
      single-function, point-of-sale equipment, and related 
     telephone equipment, which shall be used only for Federal 
     and State assistance program.
       ``(II) Equipment requirements.--Equipment provided under 
     this subparagraph shall be capable of interstate operations 
     and based on generally accepted commercial electronic 
     benefits transfer operating principles that permit interstate 
     law enforcement monitoring and shall be capable of providing 
     a recipient with access to multiple Federal and State benefit 
     programs.
       ``(ii) Paper and other alternative benefit systems.--A 
     special-need retail store that does not obtain, and does not 
     intend to obtain in the near future, point-of-sale paper-
     based or other alternative benefits transfer equipment shall 
     be provided by the State agency or compensated for the costs 
     of purchasing such equipment which shall be used only for 
     Federal and State assistance programs. Such paper systems 
     includes using the electronic benefit transfer card to make 
     an impression on a point-of-sale paper document.
       ``(iii) Return of electronic benefits transfer equipment.--
     A retail food store may at any time return the equipment to 
     the State and obtain equipment with funds of the store.
       ``(iv) Cost to stores.--The cost of documents of systems 
     that may be required pursuant to this paragraph may not be 
     imposed upon a retail food store participating in the 
     program.
       ``(D) Charging for electronic benefits transfer card 
     replacement.--
       ``(i) In general.--Under this paragraph, the Secretary 
     shall reimburse State agencies for the costs of purchasing 
     and issuing electronic benefits transfer cards; and
       ``(ii) Replacement cards.--Under this paragraph, the 
     Secretary may charge a household through allotment reduction 
     or otherwise for the cost of replacing a lost or stolen 
     electronic benefit transfer card, unless the card was stolen 
     by force or threat of force.''.
       ``(E) Transition fund.--At the beginning of each fiscal 
     year during the 10-year period beginning with the first full 
     fiscal year following the date of enactment of this 
     paragraph, the Secretary shall place the amount of the funds 
     generated by the transaction fees provided in subparagraph 
     (F) into an account, to be known as the Transition Conversion 
     Account, to remain available until expended.
       ``(F) Transaction fee.--
       (i) During the 10-year period beginning on the date of 
     enactment of this paragraph, the Secretary shall, to the 
     extent necessary to not increase costs to the Secretary under 
     this paragraph, impose a transaction fee of not more than 2 
     cents for each transaction made at a retail food store using 
     an electronic benefits transfer card authorized by this 
     paragraph, to be taken from the benefits of the household 
     using the card, except that no household shall be assessed 
     more than 16 cents under this paragraph per month. The 
     Secretary may reduce the fee on a household receiving the 
     maximum benefits available under the program.
       ``(ii) Fees limited to uses.--A fee imposed under clause 
     (i) shall be in an amount not greater than is necessary to 
     carry out the uses of the Transition Conversion Account in 
     subparagraph (G).
       ``(G)(i)Duty of secretary.--Out of funds in the Transition 
     Conversion Account, and, only to the extent necessary, out of 
     funds provided to carry out this Act, the Secretary shall 
     provide funds to provide transition assistance and funds to 
     States participating under this paragraph for--
       ``(I) the reasonable cost of purchasing and installing, or 
     for the cost of reimbursing a retail food store for the cost 
     of purchasing and installing single-function, point-of-sale 
     equipment described in subparagraph (C), to be used only for 
     Federal and State assistance programs;
       ``(II) the reasonable start-up cost of purchasing and 
     installing telephone equipment or connections for single-
     function, point-of-sale equipment, to be used only for 
     Federal and State assistance programs; and
       ``(III) assistance to modify an electronic benefits 
     transfer system implemented by a State prior to the date of 
     enactment of this paragraph to the extent necessary to 
     operate statewide or multi-statewide under this paragraph.
       ``(ii) Use of account.--The Secretary shall use funds in 
     the
      Transition Conversion Account in implementing this paragraph 
     and to--
       ``(I) provide start-up training for State agencies, 
     employees and recipients based on a plan approved by 
     Secretary;
       ``(II) pay for other one-time reasonable costs of 
     converting to an electronic benefits transfer system that is 
     capable of interstate functions and is capable of being 
     monitored by law enforcement agencies;
       ``(III) pay for liabilities assumed by the Secretary under 
     subparagraph (I);
       ``(IV) pay other liabilities related to the electronic 
     benefits transfer system established under this paragraph 
     that are incurred by the Secretary; and
       ``(V) expand and implement a nationwide program to monitor 
     compliance with program rules related to retail food stores 
     and the electronic delivery of benefits under this Act.
       ``(H) Competitive bidding.--In purchasing point-of-sale 
     equipment described in subparagraph (C), electronic benefits 
     transfer cards, and telephone equipment or connections 
     referred to in subparagraph (G), States shall use competitive 
     bidding systems to ensure that they obtain the lowest prices 
     for the equipment and cards that meet specifications. States 
     shall not enter into purchase agreements which condition the 
     purchase of additional services or equipment from suppliers 
     of equipment or cards under this paragraph. The Secretary 
     shall monitor the sale prices for such equipment and cards 
     and the Inspector General shall investigate possible 
     wrongdoing or fraud as appropriate.
       ``(I) Liability or replacement benefits for unauthorized 
     use of ebt cards.--
       ``(i) In general.--The Secretary shall require State 
     agencies that choose to implement an electronic benefits 
     transfer system under this paragraph to advise any household 
     participating in the food stamp program how to promptly 
     report a lost, destroyed, damaged, improperly manufactured, 
     dysfunctional, or stolen electronic benefits transfer card.
       ``(ii) Regulations.--Under this paragraph, the Secretary 
     shall issue regulations providing that--
       ``(I) a household shall not receive any replacement for 
     benefits lost due to the unauthorized use of an electronic 
     benefits transfer card; and
       ``(III) a household shall not be liable for any amounts in 
     excess of the benefits available to the household at the time 
     of the unauthorized use.
       ``(iii) Special losses.--Notwithstanding clause (ii), under 
     this paragraph a household shall receive a replacement for 
     any benefits lost if the loss was caused by--
       ``(I) force or the threat of force.
       ``(II) unauthorized use of the card after the State agency 
     receives notice that the card was lost or stolen; or
       ``(III) a system error or malfunction, fraud, abuse, 
     negligence, or mistake by the service provider, the card 
     issuing agency, or the State agency, or an inaccurate 
     execution of a transaction by the service provider.
       ``Provided, That with respect to losses described in 
     subclause (II) and (III), the State shall reimburse the 
     Secretary. Nothing in subclause (III) shall prevent a State 
     from obtaining reimbursement from the service provider or the 
     card issuing agency for system error or malfunction, fraud, 
     abuse, negligence, or mistake by such service provider or 
     card issuing agency.
       ``(J) Elimination of food stamp coupons.--
       ``(i) In general.--Except as provided in clause (ii) and 
     (iii) and notwithstanding any other provision of this Act, 
     effective beginning on the date 3 years after the date a 
     chief executive officer of a State informs the Secretary that 
     the State intends to implement an electronic benefits 
     transfer system authorized by this paragraph, the Secretary 
     shall not provide any food stamp coupons to the State.
       ``(ii) Exceptions.--
       ``(I) Extension.--Clause (i) shall not apply to the extent 
     that the chief executive officer of a State determines that 
     an extension is necessary and so notifies the Secretary in 
     writing, except that the extension shall not extend beyond 5 
     years after the
      date that a chief executive officer of a State informs the 
     secretary of the decision to implement an electronic 
     benefits transfer system under this paragraph.
       ``(II) Waiver.--In addition to any extension under 
     subclause (I), the Secretary may grant a waiver to a State to 
     phase-in or delay, implementation of electronic benefits 
     transfer for good cause shown by the State, except that the 
     waiver shall not extend for more than 6 months.

[[Page S 13047]]

       ``(iii) Disaster relief.--The Secretary may provide food 
     stamp coupons for disaster relief under section 5(h).''.
       ``(K) Special Rule.--A State agency may require a household 
     to explain the circumstances regarding each occasion that--
       ``(i) the household reports a lost or stolen electronic 
     benefits transfer card; and
       ``(ii) the card was used for an unauthorized transaction.
       In the appropriate circumstances, the state agency shall 
     investigate and ensure that appropriate cases are acted upon 
     either through administrative disqualification or referral to 
     courts of appropriate jurisdiction, or referral for 
     prosecution.
       ``(L) Establishment.--In carrying out this paragraph, the 
     States shall--
       ``(i) take into account the needs of law enforcement 
     personnel and the need to permit and encourage further 
     technological developments and scientific advances;
       ``(ii) ensure that security is protected by appropriate 
     means such as requiring that a personal identification number 
     be issued with each electronic benefits transfer card to help 
     protect the integrity of the program;
       ``(iii) provide for--
       ``(I) recipient protection regarding privacy, ease of use, 
     and access to and service in retail food stores;
       ``(II) financial accountability and the capability of the 
     system to handle interstate operations and interstate 
     monitoring by law enforcement agencies including the 
     Inspector General of the Department of Agriculture;
       ``(III) rules prohibiting store participation unless any 
     appropriate equipment necessary to permit households to 
     purchase food with the benefits issued under the Food Stamp 
     Act of 1977 is operational and reasonably available; and
       ``(IV) rules providing for monitoring and investigation by 
     an authorized law enforcement agency including the Inspector 
     General of the Department of Agriculture.
       ``(M) Additional Employees.--The Secretary shall assign 
     additional employees to investigate and adequately monitor 
     compliance with program rules related to electronic benefits 
     transfer systems and retail food store participation.
       ``(N) Request for Statement.--Under this paragraph on the 
     request of a household, the State, through a person issuing 
     benefits to the household, shall provide once per month a 
     statement of benefit transfers and balances for such 
     household for the month preceding the request.
       ``(O) Errors.--Under this paragraph--
       ``(i) In general.--States shall design systems to timely 
     resolve disputes over alleged errors.
       ``(ii) Corrected errors.--Households able to obtain 
     corrections of errors under this subparagraph shall not be 
     entitled to a fair hearing regarding the resolved dispute.
       ``(P) Applicable Law.
       ``For purposes of this Act, fraud and related activities 
     related to electronic benefits transfer shall be governed by 
     section 15 of this Act (U.S.C. 2024) and section 1029 of 
     title 18, United States Code, in addition to any other 
     applicable law.
       ``(Q) Definitions.--For the purpose of this paragraph--
       ``(i) Electronic benefits transfer card system.--The term 
     `electronic benefits transfer card system' means a system to 
     support transactions conducted with electronic benefits 
     transfer cards, paper, or other alternative benefits transfer 
     systems approved by the
      Secretary for the provision of program benefits in 
     accordance with this paragraph.
       ``(ii) Retail food store.--The term `retail food store' 
     means a retail food store, a farmer's market, or a house-to-
     house trade route authorized to participate in the food stamp 
     program.
       ``(iii) Special-need retail food store.--The term `special-
     need retail food store' means--
       ``(I) a retail food store located in a very rural area;
       ``(II) a retail food store without access to dependable 
     electricity or regular telephone service; or
       ``(III) a farmers' market or house-to-house trade route 
     that is authorized to participate in the food stamp program.
       ``(R) Lead role of industry and states.--The Secretary 
     shall consult with the Secretary of the Treasury, the 
     Secretary of Health and Human Services, the Inspector General 
     of the United States Department of Agriculture, the United 
     States Secret Service, the National Governor's Association, 
     the Food Marketing Institute, the National Association of 
     Convenience Stores, the American Public Welfare Association, 
     the National Conference of State Legislatures, the American 
     Bankers Association, the financial services community, State 
     agencies, and food advocates to obtain information helpful to 
     retail stores, the financial services industry, and States in 
     the conversion to electronic benefits transfer, including 
     information regarding--
       ``(i) the degree to which an electronic benefits transfer 
     system could be easily integrated with commercial networks;
       ``(ii) the usefulness of appropriate electronic benefits 
     transfer security features and local management controls, 
     including features in an electronic benefits transfer card to 
     deter counterfeiting of the card;
       ``(iii) the use of laser scanner technology with electronic 
     benefits transfer technology so that only eligible food items 
     can be purchased by food stamp participants in stores that 
     use scanners;
       ``(iv) how to maximize technology that uses data available 
     from an electronic benefits transfer system to identify fraud 
     and allow law enforcement personnel to quickly identify or 
     target a suspected or actual program violator;
       ``(v) means of ensuring the confidentiality of personal 
     information in electronic benefits transfer systems and the 
     applicability of section 552a of title 5, United States Code, 
     to electronic benefits transfer systems;
       ``(vi) the best approaches for maximizing the use of then 
     current point-of-sale terminals and systems to reduce costs; 
     and
       ``(vii) the best approaches for maximizing the use of 
     electronic benefits transfer systems for multiple Federal and 
     State benefit programs so as to achieve the highest cost 
     savings possible through the implementation of electronic 
     benefits transfer systems.''.
       (b) Conforming Amendments.--
       (1) Section 3 of the Food Stamp Act of 1977 (42 U.S.C. 
     2012) is amended--
       (A) in subsection (a), by striking ``coupons'' and 
     inserting ``benefits'';
       (B) in the first sentence of subsection (c), by striking 
     ``authorization cards'' and inserting ``allotments'';
       (C) in subsection (d), by striking ``the provisions of this 
     Act'' and inserting ``sections 5(h) and 7'';
       (D) in subsection (e)--
       (i) by striking ``Coupon issuer'' and inserting ``Benefit 
     issuer''; and
       (ii) by striking ``coupons'' and inserting ``benefits'';
       (E) in the last sentence of subsection (i), by striking 
     ``coupons'' and inserting ``allotments''; and
       (F) by adding at the end the following new subsection:
       ``(v) `Electronic benefits transfer card' means a card 
     issued to a household participating in the program that is 
     used to purchase food.
       (2) Section 4(a) of such Act (7 U.S.C. 2013(a)) is 
     amended--
       (A) in the first sentence by inserting ``and to funds made 
     available under
       Section 7'' after ``this Act''.
       (B) in the first and second sentences, by striking 
     ``coupons'' each place it appears and inserting ``electronic 
     benefits transfer cards or coupons''; and
       (C) by striking the third sentence and inserting the 
     following new sentence: ``The Secretary, through the 
     facilities of the Treasury of the United States, shall 
     reimburse the stores for food purchases made with electronic 
     benefits transfer cards or coupons provided under this 
     Act.''.
       (3) The first sentence of section 6(b)(1) of such Act (7 
     U.S.C. 2015(b)(1)) is amended--
       (A) by striking ``coupons or authorization cards'' and 
     inserting ``electronic benefits transfer cards, coupons, or 
     authorization cards''; and
       (B) in clauses (ii) and (iii), by inserting ``or electronic 
     benefits transfer cards'' after ``coupons'' each place it 
     appears.
       (4) Section 7 of such Act (7 U.S.C. 2016) is amended--
       (A) by striking the section heading and inserting the 
     following new section heading:

 ``ISSUANCE AND USE OF ELECTRONIC BENEFITS TRANSFER CARDS OR COUPONS'';

       (B) in subsection (a), by striking ``Coupons'' and all that 
     follows through ``necessary, and'' and inserting ``Electronic 
     benefits transfer cards or coupons'';
       (C) in subsection (b), by striking ``Coupons'' and 
     inserting ``Electronic benefits transfer cards or coupons'';
       (D) in subsection (e), by striking ``coupons to coupon 
     issuers'' and replace with ``benefits to benefits issuers''; 
     and by striking ``by coupon issuers'' in inserting ``by 
     benefits issuers''.
       (E) in subsection (f)--
       (i) by striking ``issuance of coupons'' and inserting 
     ``issuance of electronic benefits transfer cards or 
     coupons'';
       (ii) by striking ``coupon issuer'' and inserting 
     ``electronic benefits transfer or coupon issuer''; and
       (iii) by striking ``coupons and allotments'' and inserting 
     ``electronic benefits transfer cards, coupons, and 
     allotments'';
       (F) by deleting ``(1) The'' in subsections (g) and (h) and 
     inserting the following: ``(1) Except with respect to 
     electronic benefit transfer care systems operated under 
     section 7(j)(5), the''; and
       (G) by striking subparagraph (i)(2)(A); and by relettering 
     (B) through (H) as (A) through (G).
       (5) Section 8(b) of such Act (7 U.S.C. 2017(b)) is amended 
     by striking ``coupons'' and inserting ``electronic benefits 
     transfer cards or coupons''.
       (6) Section 9 or such Act (7 U.S.C. 2018) is amended--
       (A) in subsections (a) and (b), by striking ``coupons'' 
     each place it appears and inserting ``coupons, or accept 
     electronic benefits transfer cards,''; and
       (B) in subsection (a)(1)(B), by striking ``coupon 
     business'' and inserting ``electronic benefits transfer cards 
     and coupon business''.
       (7) Section 10 of such Act (7 U.S.C. 2019) is amended--
       (A) by striking the section heading and inserting the 
     following:

      REDEMPTION OF COUPONS OR ELECTRONIC BENEFITS TRANSFER CARDS;

     and
       (B) in the first sentence--
       (i) by inserting after ``provide for'' the following: 
     ``reimbursing stores for program benefits provided and for'';
       (ii) by inserting after ``food coupons'' the following: 
     ``or use their members' electronic benefits transfer cards''; 
     and 

[[Page S 13048]]

       (iii) 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 benefits transfer system.''.
       (8) Section 11 of such Act (7 U.S.C. 2020) is amended--
       (A) in the first sentence of subsection (a), by striking 
     ``coupons'' and inserting ``electronic benefits transfer 
     cards or coupons,'';
       (B) in subsection (e)--
       (i) in paragraph (2)--
       (I) by striking ``a coupon allotment'' and inserting ``an 
     allotment''; and
       (II) by striking ``issuing coupons'' and inserting 
     ``issuing electronic benefits transfer cards or coupons'';
       (ii) in paragraph (7), by striking ``coupon issuance'' and 
     inserting ``electronic benefits transfer card or coupon 
     issuance'';
       (iii) in paragraph (8)(C), by striking ``coupons'' and 
     inserting ``benefits'';
       (iv) in paragraph (9), by striking ``coupons'' each place 
     it appears and inserting ``electronic benefits transfer cards 
     or coupons'';
       (v) in paragraph (11), by striking ``in the form of 
     coupons'';
       (vi) in paragraph (16), by striking ``coupons'' and 
     inserting ``electronic benefits transfer card or coupons'';
       (vii) in paragraph (17), by striking ``food stamps'' and 
     replacing with ``benefits'';
       (viii) in paragraph (21), by striking ``coupons'' and 
     inserting ``electronic benefits transfer cards or coupons'';
       (ix) in paragraph (24), by striking ``coupons'' and 
     inserting ``benefits''; and
       (x) in paragraph (25), by striking ``coupons'' each place 
     it appears and inserting ``electronic benefits transfer cards 
     or coupons''; and
       (C) in subsection (h), by striking ``face value of any 
     coupon or coupons'' and inserting ``value of any benefits''; 
     and
       (D) in subsection (n)--
       (i) by striking ``both coupons'' each place it appears and 
     inserting ``benefits under this Act''; and
       (ii) by striking ``of coupons'' and inserting ``of 
     benefits.''
       (9) Section 12 of such Act (7 U.S.C. 2021) is amended--
       (A) in subsection (b)(3), by striking ``coupons'' each 
     place it appears and inserting ``electronic benefits transfer 
     cards or coupons'';
       (B) in subsection (d)--
       (i) in the first sentence--
       (I) by inserting after ``redeem coupons'' the following: 
     ``and to accept electronic benefits transfer cards''; and
       (II) by striking ``value of coupons'' and inserting ``value 
     of benefits and coupons''; and
       (ii) in the third sentence, by striking ``coupons'' each 
     place it appears and inserting ``benefits''; and
       (C) in the first sentence of subsection (f)--
       (i) by inserting after ``to accept and redeem food 
     coupons'' the following: ``electronic benefits transfer 
     cards, or to accept and redeem food coupons,''; and
       (ii) by inserting before the period at the end the 
     following: ``or program benefits''.
       (10) Section 13 of such Act (7 U.S.C. 2022) is amended by 
     striking ``coupons'' each place it appears and inserting 
     ``benefits''.
       (11) Section 15 of such Act (7 U.S.C. 2024) is amended--
       (A) in subsection (a), by striking ``issuance or 
     presentment for redemption'' and inserting ``issuance, 
     presentment for redemption, or use of electronic benefits 
     transfer cards or'';
      (B) in the first sentence of subsection (b)(1)--
       (i) by inserting after ``coupons authorization cards,'' 
     each place it appears the following: ``electronic benefits 
     transfer cards,'; and
       (ii) by striking ``coupons or authorization cards'' and 
     place it appears and inserting the following: ``coupons, 
     authorization cards, or electronic benefits transfer cards'';
       (C) in the first sentence of subsection (c)--
       (i) by striking ``coupons'' and inserting `` a coupon or 
     electronic benefits transfer card''; and
       (ii) strike ``such coupons are'' and inserting ``the 
     payment or redemption is'';
       (D) in subsection (d) striking coupons'' and replacing with 
     ``Benefits'';
       (E) in subsection (e) after ``coupons'' inserting ``or 
     electronic benefits transfer card'';
       (F) in subsection (f) after ``coupon'' inserting ``or 
     electronic benefits transfer card''; and
       (G) in the first sentence of subsection (g), by inserting 
     after ``coupons, authorization cards,'' the following: 
     ``electronic benefits transfer cards,''.
       (12) Section 16 (7 U.S.C. 2025) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2) after ``coupons'' by inserting 
     ``electronic benefits transfer cards'';
       (ii) in paragraph (3) by inserting after ``households'' the 
     following: ``, including the cost of providing equipment 
     necessary for retail food stores to participate in an 
     electronic benefits transfer system''
       (B) by deleting subsection (d);
       (C) by redesignating subsections (e) through (j) as 
     subsections (d) through (i), respectively;
       (D) in subsection (g)(5) (as redesignated by paragraph 
     (3))--
       (i) in subparagraph (A), by striking ``(A)''; and
       (ii) by striking subparagraph (B);
       (E) in subsection (h) (as redesignated by paragraph (3)), 
     by striking paragraph (3); and
       (F) by striking subsection (i) (as redesignated by 
     paragraph (3)).
       (13) Section 17 of such Act (7 U.S.C. 2026) is amended--
       (A) in the last sentence of subsection (a)(2), by striking 
     ``coupon'' and inserting ``benefit'';
       (B) by deleting the last sentence of paragraph (b)(2);
       (C) by deleting the last sentence of subsection (c);
       (D) in subsection (d)(1)(B), by striking ``coupons'' each 
     place it appears and inserting ``benefits'';
       (E) by deleting the last sentence of subsection (e);
       (F) by striking subsection (f); and
       (G) by redesignating subsections (g) through (k) as 
     subsections (f) through (j), respectively.
       (14) Section 21 of such Act (7 U.S.C. 2030) is amended--
       (A) by striking ``coupons'' each place it appears (other 
     than in subsections (b)(2)(A)(ii) and (d)) and inserting 
     ``benefits'';
       (B) in subsection (b)(2)(A)(ii), by striking ``coupons'' 
     and inserting ``electronic benefits transfer cards or 
     coupons''; and
       (C) in subsection (d)--
       (i) in paragraph (2), by striking ``Coupons'' and inserting 
     ``Benefits''; and
       (ii) in paragraph (3), by striking ``in food coupons''.
       (15) Section 22 of such Act (7 U.S.C. 2031) is amended--
       (A) in subsection (b)--
       (i) in paragraph (3)(D)--
       (I) in clause (ii), by striking ``coupons'' and inserting 
     ``benefits''; and
       (II) in clause (iii), by striking ``coupons'' and inserting 
     ``electronic benefits transfer benefits'';
       (ii) in paragraph (9), by striking ``coupons'' and 
     inserting ``benefits'';
       (iii) in paragraph (10)(B)--
       (I) in the second sentence of clause (I), by striking 
     ``Food coupons'' and inserting ``Program benefits''; and
       (II) in clause (ii)--
       (aa) in the second sentence, by striking ``Food coupons'' 
     and inserting ``Benefits''; and
       (bb) in the third sentence, by striking ``food coupons'' 
     each place it appears and inserting ``benefits'';
       (B) in subsection (d), by striking ``coupons'' each place 
     it appears and inserting ``benefits'';
       (C) in subsection (g)(l)(A), by striking ``coupon''; and
       (D) in subsection (h), by striking ``food coupons'' and 
     inserting ``benefits''.
       (16) Section 1956(c)(7)(D) of title 18, United States Code, 
     is amended by inserting ``electronic benefits transfer cards 
     or ``before ``coupons having''.
                                 ______


                      JEFFORDS AMENDMENT NO. 2571

  Mr. JEFFORDS proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra; as follows:

       In section 403(a)(5) of the amendment, strike B-D, and 
     insert the following:
       ``(B) Historic state expenditures.--For purposes of this 
     paragraph, the term `historic State expenditures' means 
     expenditures by a State under parts A and F of title IV for 
     fiscal year 1994, as in effect during such fiscal year.
       ``(C) Determination of state expenditures for preceding 
     fiscal year.--
       ``(i) In general.--For purposes of this paragraph, the 
     expenditures of a State under the State program funded under 
     this part for a preceding fiscal year shall be equal to the 
     sum of the State's expenditures under the program in the 
     preceding fiscal year for--
       ``(I) cash assistance;
       ``(II) child care assistance;
       ``(III) job education, training, and work; and
       ``(IV) administrative costs.
       ``(ii) Transfers from other state and local programs.--In 
     determining State expenditures under clause (i), such 
     expenditures shall not include funding supplanted by 
     transfers from other State and local programs.
       ``(D) Exclusion of federal amounts.--For purposes of this 
     paragraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
                                 ______


                   DOMENICI AMENDMENTS NOS. 2572-2574

  Mr. SANTORUM (for Mr. Domenici) proposed three amendments to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra; as 
follows:

                           Amendment No. 2572

       On page 590, after line 23, strike ``(a) incentive 
     Payments'' and all that follows through page 595, line 2 and 
     insert the following:

     Share collections 50/50 with all States.
       Set national standards that all States must reach before 
     incentives are made. National standards will be set up for 
     Paternity Establishment, Support Order establishment, 
     percentage of cases with collections, ratio of support due to 
     support collected and cost effectiveness.
       Set basic matching rate at 50% and allow incentive matching 
     rates up to 90% of expenditures for the performance 
     categories.
       Change audit process to invoke audit sanctions if States do 
     not meet 50% of the performance standard.
       Require IRS COBRA notices to be sent to the State Child 
     Support Agency.
     
[[Page S 13049]]


                           Amendment No. 2573

       On page 21, after line 25, insert the following:
       ``(5) Welfare Partnership.--
       ``(A) In general.--Beginning with fiscal year 1997, if a 
     State does not maintain the expenditures of the State under 
     the program for the proceeding fiscal year at a level equal 
     to or greater than 75% of the level of historic State 
     expenditures, the amount of the grant otherwise determined 
     under paragraph (1) shall be reduced in accordance with 
     subparagraph (B).
       ``(B) Reduction.--The amount of the reduction determined 
     under this subparagraph shall be equal to--
       (i)(I) the difference between the historic State 
     expenditures and the expenditures of the State under the 
     State program for the preceding fiscal year;
       (ii) the amount determined under clause (i)(I)
       ``(C) Historic State Expenditures.--For purposes of this 
     paragraph, the term ``historic State expenditures'' means 
     expenditures by a State under parts A and F of title IV for 
     fiscal year 1994, as in effect during such fiscal year.
       ``(D) Determining State Expenditures.--
       ``(i) In General.--Subject to (ii) and (iii), for purposes 
     of this paragraph the expenditures of a State under the State 
     program funded under this part for a preceding fiscal year 
     shall be determined by adding the expenditures of that State 
     under its State program for--
       ``(I) cash assistance;
       ``(II) child care assistance;
       ``(III) job education and training, and work; and
       ``(IV) administrative costs; in that fiscal year.
       ``(ii) Exclusion of Grant Amounts.--The determination under 
     (i) shall not include grant amounts paid under paragraph (1) 
     (or, in the case of historic State expenditures, amounts paid 
     in accordance with section 403, as in effect during fiscal 
     year 1994).
       ``(iii) Reservation of Federal Amounts.--For any fiscal 
     year, if a State has expended amounts reserved in accordance 
     with subsection (b)(3), such expenditures shall not be 
     considered a State expenditure under the State program.''
                                                                    ____

                           Amendment No. 2574

       At the appropriate place in the bill, insert the following 
     new provision:

     ``SEC.   . SENSE OF THE SENATE.

       ``It is the sense of the Senate that--
       ``(a) States should diligently continue their efforts to 
     enforce child support payments to the non-custodial parent to 
     the custodial parent, regardless of the employment status or 
     location of the non-custodial parent; and
       ``(b) States are encouraged to pursue pilot programs in 
     which the parents of a non-adult, non-custodial parent who 
     refuses to or is unable to pay child support must--
       ``(1) pay or contribute to the child support owed by the 
     non-custodial parent; or
       ``(2) otherwise fulfill all financial obligations and meet 
     all conditions imposed on the non-custodial parent, such as 
     participation in a work program or other related activity.''
                                 ______


                      DOMENICI AMENDMENT NO. 2575

  Mr. SANTORUM (for Mr. Domenici) proposed an amendment to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

       On page XX, after line XX, strike ------ and all that 
     follows through page XX, Line XX.
                                 ______


                DOMENICI (AND BIDEN) AMENDMENT NO. 2576

  Mr. SANTORUM (for Mr. Domenici for himself and Mr. Biden) proposed an 
amendment to amendment No. 2280 proposed by Mr. Dole to the bill H.R. 
4, supra; as follows:

       On page 792, after line 22, add the following new title:

                     TITLE   --CHILD CUSTODY REFORM

     SEC.   01. SHORT TITLE.

       This title may be cited as the ``Child Custody Reform Act 
     of 1995''.
     SEC.   02. REQUIREMENTS FOR EXCLUSIVE CONTINUING JURISDICTION 
                   MODIFICATION.

       Section 1738A of title 28, United States Code, is amended--
       (1) in subsection (d) to read as follows:
       ``(d)(1) Subject to paragraph (2) the jurisdiction of a 
     court of a State that has made a child custody or visitation 
     determination in accordance with this section continues 
     exclusively as long as such State remains the residence of 
     the child or of any contestant.
       ``(2) Continuing jurisdiction under paragraph (1) shall be 
     subject to any applicable provision of law of the State that 
     issued the initial child custody determination in accordance 
     with this section, when such State law establishes 
     limitations on continuing jurisdiction when a child is absent 
     from such State.'';
       (2) in subsection (f)
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (1), respectively and transferring paragraph (2) (as 
     so redesignated) so as to appear after paragraph (1) (as so 
     redesignated); and
       (B) in paragraph (1) (as so redesignated), by inserting 
     ``pursuant to subsection (d),'' after ``the court of the 
     other State no longer has jurisdiction,''; and
       (3) in subsection (g), by inserting ``or continuing 
     jurisdiction'' after ``exercising jurisdiction''.

     SEC.   03. ESTABLISHMENT OF NATIONAL CHILD CUSTODY REGISTRY.

       Section 453 of the Social Security Act (42 U.S.C. 653) (as 
     amended by section 916) is further amended by adding at the 
     end the following new subsection:
       ``(p)(1) Not later than 1 year after the date of enactment 
     of this subsection, the Secretary, in consultation with the 
     Attorney General, shall conduct and conclude a study 
     regarding the most practicable and efficient way to create a 
     national child custody registry to carry out the purposes of 
     paragraph (3). Pursuant to this study, and subject to the 
     availability of appropriations, the Secretary shall create a 
     national child custody registry and promulgate regulations 
     necessary to implement such registry. The study and 
     regulations shall include--
       ``(A) a determination concerning whether a new national 
     database should be established or whether an existing network 
     should be expanded in order to enable courts to identify 
     child custody determinations made by, or proceedings filed 
     before, any court of the United States, its territories or 
     possessions;
       ``(B) measures to encourage and provide assistance to 
     States to collect and organize the data necessary to carry 
     out subparagraph (A);
       ``(C) if necessary, measures describing how the Secretary 
     will work with the related and interested State agencies so 
     that the database described in subparagraph (A) can be linked 
     with appropriate State registries for the purpose of 
     exchanging and comparing the child custody information 
     contained therein;
       ``(D) the information that should be entered in the 
     registry (such as the court of jurisdiction where a child 
     custody proceeding has been filed or a child custody 
     determination has been made, the name of the presiding 
     officer of the court in which a child custody proceeding has 
     been filed, the telephone number of such court, the names and 
     social security numbers of the parties, the name, date of 
     birth, and social security numbers of each child) to carry 
     out the purposes of paragraph (3);
       ``(E) the standards necessary to ensure the standardization 
     of data elements, updating of information, reimbursement, 
     reports, safeguards for privacy and information security, and 
     other such provisions as the Secretary determines 
     appropriate;
       ``(F) measures to protect confidential information and 
     privacy rights (including safeguards against the unauthorized 
     use or disclosure of information) which ensure that--
       ``(i) no confidential information is entered into the 
     registry;
       ``(ii) the information contained in the registry shall be 
     available only to courts or law enforcement officers to carry 
     out the purposes in paragraph (3); and
       ``(iii) no information is entered into the registry (or 
     where information has previously been entered, that other 
     necessary means will be taken) if there is a reason to 
     believe that the information may result in physical harm to a 
     person; and
       ``(G) an analysis of costs associated with the 
     establishment of the child custody registry and the 
     implementation of the proposed regulations.
       ``(2) As used in this subsection--
       ``(A) the term `child custody determination' means a 
     judgment, decree, or other order of a court providing for 
     custody or visitation of a child, and includes permanent and 
     temporary orders, and initial orders and modifications; and
       ``(B) the term `custody proceeding'--
       ``(i) means a proceeding in which a custody determination 
     is one of several issues, such as a proceeding for divorce or 
     separation, as well as neglect, abuse, dependency, wardship, 
     guardianship, termination of parental rights, adoption, 
     protective action from domestic violence, and Hague Child 
     Abduction Convention proceedings; and
       ``(ii) does not include a judgment, decree, or other order 
     of a court made in a juvenile delinquency, or status offender 
     proceeding.
       ``(3) The purposes of this subsection are to--
       ``(A) encourage and provide assistance to State and local 
     jurisdictions to permit--
       ``(i) courts to identify child custody determinations made 
     by, and proceedings in, other States, local jurisdictions, 
     and countries;
       ``(ii) law enforcement officers to enforce child custody 
     determinations and recover parentally abducted children 
     consistent with State law and regulations;
       ``(B) avoid duplicative and or contradictory child custody 
     or visitation determinations by assuring that courts have the 
     information they need to--
       ``(i) give full faith and credit to the child custody or 
     visitation determination made by a court of another State as 
     required by section 1738A of title 28, United States Code; 
     and
       ``(ii) refrain from exercising jurisdiction when another 
     court is exercising jurisdiction consistent with section 
     1738A of title 28, United States Code.
       ``(4) There are authorized to be appropriated such sums as 
     may be necessary to establish the child custody registry and 
     implement the regulations pursuant to paragraph (1).''.

[[Page S 13050]]


     SEC.   04. SENSE OF THE SENATE REGARDING SUPERVISED CHILD 
                   VISITATION CENTERS.

       It is the sense of the Senate that local governments should 
     take full advantage of the Local Crime Prevention Block Grant 
     Program established under subtitle B of title III of the 
     Violent Crime Control and Law Enforcement Act of 1994, to 
     establish supervised visitation centers for children who have 
     been removed from their parents and placed outside the home 
     as a result of abuse or neglect or other risk of harm to such 
     children, and for children whose parents are separated or 
     divorced and the children are at risk because of physical or 
     mental abuse or domestic violence.
                                 ______


                       D'AMATO AMENDMENT NO. 2577

  Mr. SANTORUM (for Mr. D'Amato) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

       On page 17, line 20, strike ``February 14'' and insert 
     ``May 15''.

                    D'AMATO AMENDMENT NOS. 2578-2579

  Mr. SANTORUM (for Mr. D'Amato) proposed two amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

                           Amendment No. 2578

       On page 124, between lines 9 and 10, insert:
       (3) Closing out account for those programs terminated or 
     substantially modified by this title.--In closing out 
     accounts, Federal and State officials may use scientifically 
     acceptable statistical sampling techniques. Claims made under 
     programs which are repealed or substantially amended in this 
     title and which involve State expenditures in cases where 
     assistance or services were provided during a prior fiscal 
     year, shall be treated as expenditures during fiscal year 
     1995 for purposes of reimbursement even if payment was made 
     by a State on or after October 1, 1995. States shall complete 
     the filing of all claims no later than September 30, 1997. 
     Federal department heads shall--
       (A) use the single audit procedure to review and resolve 
     any claims in connection with the close out of programs, and
       (B) reimburse States for any payments made for assistance 
     of services provided during a prior fiscal year from funds 
     for fiscal year 1995, rather than the funds authorized by 
     this title.
                                                                    ____


                           Amendment No. 2579
       On page 124, between lines 9 and 10, insert: 
     Notwithstanding the preceding sentence, the Secretary of 
     Health and Human Services shall cease efforts to recover 
     previously granted funds, shall pay any amounts being 
     deferred, and shall forgive any disallowance pending appeal 
     before the Departmental Appeals Board or before any Federal 
     court unless the Secretary determines that there was not 
     substantial compliance with the program requirements 
     underlying the claims or, upon probable cause, believes that 
     there is evidence of fraud on the part of the State. The 
     preceding sentence shall not be construed as diminishing the 
     right of a State to administrative or judicial review of a 
     disallowance of funds.
                                 ______


                        GRAMS AMENDMENT NO. 2580

  Mr. SANTORUM (for Mr. Grams) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

       On page 36, between lines 13 and 14, insert the following:
       ``(4) Limitation on vocational education activities counted 
     as work.--For purposes of determining monthly participation 
     rates under paragraphs (1)(B)(i)(I) and (2)(B)(i) of 
     subsection (b), not more than 20 percent of adults in all 
     families and in 2-parent families determined to be engaged in 
     work in the State for a month may meet the work activity 
     requirement through participation in vocational educational 
     training.
                                 ______


                      JEFFORDS AMENDMENT NO. 2581

  Mr. JEFFORDS proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra; as follows:

       Strike the matter between lines 11 and 12 of page 51 (as 
     inserted by the modification of September 8, 1995).
                                 ______


                      WELLSTONE AMENDMENT NO. 2582

  Mr. DODD (for Mr. Wellstone) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:
       On page 576, between lines 12 and 13, insert the following:

                     Subtitle D--Minimum Wage Rate

     SEC. 841. INCREASE IN THE MINIMUM WAGE RATE.

       Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)) is amended to read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than $4.25 an hour during the period ending December 31, 
     1995, not less than $4.70 an hour during the year beginning 
     January 1, 1996, and not less than $5.15 an hour after 
     December 31, 1996;''.
                                 ______


            WELLSTONE (AND MURRAY) AMENDMENT NOS. 2583-2584

  Mr. DODD (for Mr. Wellstone, for himself and Mrs. Murray) proposed 
two amendments to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra; as follows:


                           Amendment No. 2583

       On page 14, between lines 12 and 13, insert the following:
       ``(8) Certification regarding battered individuals.--A 
     certification from the chief executive officer of the State 
     specifying that--
       ``(A) the State will exempt from the requirements of 
     sections 404, 405 (a) and (b), and 406 (b), (c), and (d), or 
     modify the application of such sections to, any woman, child, 
     or relative applying for or receiving assistance under this 
     part, if such woman, child, or relative was battered or 
     subjected to extreme cruelty and the physical, mental, and 
     emotional well-being of the woman, child, or relative will be 
     endangered by application of such sections to such woman, 
     child, or relative, and
       ``(B) the State will take into consideration the family 
     circumstances and the counseling and other supportive service 
     needs of the woman, child, or relative.
       On page 14, line 13, strike ``(8)'' and insert ``(9)''.
       On page 16, between lines 22 and 23, insert the following:
       ``(6) Battered or subjected to extreme cruelty.--The term 
     `battered or subjected to extreme cruelty' includes, but is 
     not limited to--
       ``(A) physical acts resulting in, or threatening to result 
     in, physical injury;
       ``(B) sexual abuse, sexual activity involving a dependent 
     child, forcing the caretaker relative of a dependent child to 
     engage in nonconsensual sexual acts or activities, or threats 
     of or attempts at physical or sexual abuse;
       ``(C) mental abuse; and
       ``(D) neglect or deprivation of medical care.
       On page 35, between lines 2 and 3, insert the following:
       ``(6) Certain individuals excluded in calculation of 
     participation rates.--An individual who is battered or 
     subjected to extreme cruelty and with respect to whom an 
     exemption or modification is in effect at any time during a 
     fiscal year by reason of section 402(a)(8) shall not be 
     included for purposes of calculating the State's 
     participation rate for the fiscal year under this subsection.
       On page 36, after line 25, add the following:

     The penalties described in paragraphs (1) and (2) shall not 
     apply with respect to an individual who is battered or 
     subjected to extreme cruelty and with respect to whom an 
     exemption or modification is in effect by reason of section 
     402(a)(8).
       On page 74, between lines 2 and 3, insert:

     Such requirements, limits, and penalties shall contain 
     exemptions described in section 402(a)(8) for individuals who 
     have been battered or subject to extreme cruelty.
       On page 175, line 16, strike ``and''.
       On page 175, line 20, strike the period and insert ``; 
     and''.
       On page 175, between lines 20 and 21, insert the following:
       (C) by adding at the end the following new subparagraph:
       ``(F) The provisions of this subsection shall not apply 
     with respect to any alien who has been battered or subjected 
     to extreme cruelty (within the meaning of section 402(d)(6) 
     of the Social Security Act (42 U.S.C. 602(d)(6)).''
       On page 183, line 11, strike the end quotation marks and 
     the end period.
       On page 183, between lines 11 and 12, insert:
       ``(E) Exception for battered individuals.--The requirements 
     of this paragraph shall not apply to an individual who has 
     been battered or subjected to extreme cruelty (within the 
     meaning of section 402(d)(6) of the Social Security Act) if 
     such application would endanger the physical, mental, or 
     emotional well-being of the individual.''.
       On page 192, between line 16 insert at the end: ``The 
     standards shall provide a good cause exception to protect 
     individuals who have been battered or subjected to extreme 
     cruelty (within the meaning of section 402(d)(6) of the 
     Social Security Act).''
       On page 197, line 13, after ``section'' insert ``6(d)(1)(E) 
     or''.
       On page 287, line 21, strike ``or (V)'' and insert ``(V), 
     or (VI)''.
       On page 291, lines 18 and 19, strike ``or (V)'' and insert 
     ``(V), or (VI)''.
       On page 299, line 11, strike ``or''.
       On page 299, line 14, strike ``title II'' and insert 
     ``title II; or (VI) a noncitizen who has been battered or 
     subjected to extreme cruelty (within the meaning of section 
     402(d)(6))''.
       On page 612, line 24, strike ``rights'' and inserting 
     ``rights, and only if such resident parent or such resident 
     parent's child is not an individual who has been battered or 
     subjected to extreme cruelty (within the meaning of section 
     402(d)(6)) by such absent parent''.
       On page 715, line 8, strike ``arrangements.'' and insert 
     ``arrangements. Such programs shall not provide for access or 
     visitation if any individual involved is an individual who 
     has been battered or subjected to extreme cruelty (within the 
     meaning of section 402(d)(6)) by the absent parent.''.
     
[[Page S 13051]]


                           Amendment No. 2584

       At the end of the amendment, insert the following new 
     title:

              TITLE   --PROTECTION OF BATTERED INDIVIDUALS

     SEC.   01. EXEMPTION OF BATTERED INDIVIDUALS FROM CERTAIN 
                   REQUIREMENTS.

       (a) In General.--Notwithstanding any other provision of, or 
     amendment made by, this Act, the applicable administering 
     authority of any specified provision shall exempt from (or 
     modify) the application of such provision to any individual 
     who was battered or subjected to extreme cruelty if the 
     physical, mental, or emotional well-being of the individual 
     would be endangered by the application of such provision to 
     such individual. The applicable administering authority shall 
     take into consideration the family circumstances and the 
     counseling and other supportive service needs of the 
     individual.
       (b) Specified Provisions.--For purposes of this section, 
     the term ``specified provision'' means any requirement, 
     limitation, or penalty under any of the following:
       (1) Sections 404, 405 (a) and (b), 406 (b), (c), and (d), 
     414(d), 453(c), 469A, and 1614(a)(1) of the Social Security 
     Act.
       (2) Sections 5(i) and 6 (d), (j), and (n) of the Food Stamp 
     Act of 1977.
       (3) Sections 501(a) and 502 of this Act.
       (c) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Battered or subjected to extreme cruelty.--The term 
     ``battered or subjected to extreme cruelty'' includes, but is 
     not limited to--
       (A) physical acts resulting in, or threatening to result 
     in, physical injury;
       (B) sexual abuse, sexual activity involving a dependent 
     child, forcing the caretaker relative of a dependent child to 
     engage in nonconsensual sexual acts or activities, or threats 
     of or attempts at physical or sexual abuse;
       (C) mental abuse; and
       (D) neglect or deprivation of medical care.
       (2) Calculation of participation rates.--An individual 
     exempted from the work requirements under section 404 of the 
     Social Security Act by reason of subsection (a) shall not be 
     included for purposes of calculating the State's 
     participation rate under such section.
                                 ______


               STEVENS (AND MURKOWSKI) AMENDMENT NO. 2585

  Mr. STEVENS (for himself and Mr. Murkowski) proposed an amendment to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

       On page 16 of the pending amendment, beginning on line 13, 
     strike all through line 17 and insert in lieu thereof the 
     following:
       ``(4) Indian, indian tribe, and tribal organization.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the terms `Indian', `Indian tribe', and `tribal organization' 
     have the meaning given such terms by section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).
       ``(B) In alaska.--For purposes of grants under section 414 
     on behalf of Indians in Alaska, the term `Indian tribe' shall 
     mean only the following Alaska Native regional non-profit 
     corporations--
       ``(i) Arctic Slope Native Association,
       ``(ii) Kawerak, Inc.,
       ``(iii) Maniilaq Association,
       ``(iv) Association of Village Council Presidents,
       ``(v) Tanana Chiefs Conference,
       ``(vi) Cook Inlet Tribal Council,
       ``(vii) Bristol Bay Native Association,
       ``(viii) Aleutian and Pribilof Island Association,
       ``(ix) Chugachmuit,
       ``(x) Tlingit Haida Central Council,
       ``(xi) Kodiak Area Native Association, and
       ``(xii) Copper River Native Association.''.
                                 ______


                        COHEN AMENDMENT NO. 2586

  Mr. SANTORUM (for Mr. Cohen) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       In section 102(c) of the amendment, insert ``so long as the 
     programs are implemented consistent with the Establishment 
     Clause of the United States Constitution'' after ``subsection 
     (a)(2)''.
       In section 102(d)(2) of the amendment, strike subparagraph 
     (B), and redesignate subparagraph (C) as subparagraph (B).
                                 ______


                 SPECTER (AND SIMON) AMENDMENT NO. 2587

  Mr. SANTORUM (for Mr. Specter, for himself and Mr. Simon) proposed an 
amendment to amendment No. 2280 proposed by Mr. Dole to the bill H.R. 
4, supra, as follows:

       In title VII, strike chapters 1 and 2 of subtitle C and 
     insert the following:
                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 741. DEFINITIONS.

       As used in this subtitle:
       (1) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24;
       (B) is low-income (as defined in section 723(e));
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) Involved in the juvenile justice system.
       (vi) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 743.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 743.
       (6) Operator.--The term ``operator'' means an entity 
     selected under this chapter to operate a Job Corps center.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
                          CHAPTER 2--JOB CORPS

     SEC. 742. PURPOSES.

       The purposes of this chapter are--
       (1) to maintain a national Job Corps program, carried out 
     in partnership with States and communities, to assist at-risk 
     youth who need and can benefit from an unusually intensive 
     program, operated in a group setting, to become more 
     responsible, employable, and productive citizens;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of Job Corps centers in 
     which enrollees will participate in intensive programs of 
     workforce development activities; and
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps.

     SEC. 743. ESTABLISHMENT.

       There shall be established in the Department of Labor a Job 
     Corps program, to carry out activities described in this 
     chapter for individuals enrolled in the Job Corps and 
     assigned to a center.

     SEC. 744. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be an at-risk youth.

     SEC. 745. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps, after considering 
     recommendations from the Governors, State workforce 
     development boards established under section 715, local 
     partnerships and local workforce development boards 
     established under section 728, and other interested parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1) for the screening and selection of Job Corps 
     applicants, the Secretary shall--
       (A) require enrollees to take drug tests within 30 days of 
     enrollment in the Job Corps;
       (B) allocate, where necessary, additional resources to 
     increase the applicant pool;
       (C) establish standards for outreach to and screening of 
     Job Corps applicants;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting such 
     screening; and
       (E) require Job Corps applicants to pass background checks, 
     conducted in accordance with procedures established by the 
     Secretary.
       (3) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) one-stop career centers;
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     considered for selection can participate successfully in 
     group situations and activities, is not likely to engage in 
     behavior that would prevent other enrollees from receiving 
     the benefit of the program or be incompatible with the 
     maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.

     SEC. 746. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in 

[[Page S 13052]]
     the Job Corps shall not relieve any individual of obligations under the 
     Military Selective Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--After the Secretary has determined that an 
     enrollee is to be assigned to a Job Corps center, the 
     enrollee shall be assigned to the center that is closest to 
     the residence of the enrollee, except that the Secretary may 
     waive this requirement for good cause, including to ensure an 
     equitable opportunity for at-risk youth from various sections 
     of the Nation to participate in the Job Corps program, to 
     prevent undue delays in assignment of an enrollee, to 
     adequately meet the educational or other needs of an 
     enrollee, and for efficiency and economy in the operation of 
     the program.
       (c) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 748(d) would require an 
     individual to participate for more than 2 years; or
       (2) as the Secretary may authorize in a special case.

     SEC. 747. JOB CORPS CENTERS.

       (a) Operators and Service Providers.--
       (1) Eligible entities.--The Secretary shall enter into an 
     agreement with a Federal, State, or local agency, which may 
     be a State board or agency that operates or wishes to develop 
     an area vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     operation of each Job Corps center. The Secretary shall enter 
     into an agreement with an appropriate entity to provide 
     services for a Job Corps center.
       (2) Selection process.--Except as provided in subsection 
     (c)(d), the Secretary shall select an entity to operate a Job 
     Corps center on a competitive basis, after reviewing the 
     operating plans described in section 750. In selecting a 
     private or public entity to serve as an operator, the 
     Secretary may convene and obtain the recommendation of a 
     selection panel described in section 752(b). In selecting an 
     entity to serve as an operator or to provide services for a 
     Job Corps center, the Secretary shall take into consideration 
     the previous performance of the entity, if any, relating to 
     operating or providing services for a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 748. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (c) Civilian Conservation Centers.--
       (1) In general.--The Job Corps centers may include Civilian 
     Conservation Centers operated under agreement with the 
     Secretary of Agriculture or Secretary of Interior, located 
     primarily in rural areas, which shall provide, in addition to 
     other training and assistance, programs of work experience to 
     conserve, develop, or manage public natural resources or 
     public recreational areas or to develop community projects in 
     the public interest.
       (2) Selection process.--The Secretary may select a 
     nongovernmental entity to operate a Civilian Conservation 
     Center on a competitive basis, if the center fails to meet 
     such national performance standards as the Secretary shall 
     establish.
       (d) The Secretary may enter into agreement with Indian 
     Tribes to operate Job Corps centers for Native American 
     Indians.

     SEC. 748. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     716(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the
      enrollees, including providing work-based learning 
     throughout the enrollment of the enrollees and assisting 
     the enrollees in obtaining meaningful unsubsidized 
     employment, participating successfully in secondary 
     education or postsecondary education programs, enrolling 
     in other suitable training programs, or satisfying Armed 
     Forces requirements, on completion of their enrollment.
       (b) Arrangements.--The Secretary shall arrange for 
     enrollees assigned to Job Corps centers to receive workforce 
     development activities through or in cooperation with the 
     statewide system, including workforce development activities 
     provided through local public or private educational 
     agencies, vocational educational institutions, or technical 
     institutes.
       (c) Job Placement Accountability.--The Secretary shall 
     establish a Job Placement Accountability System in 
     conjunction with the job placement accountability system 
     described in section 731(d) in the State in which the center 
     is located.
       (d) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees would otherwise be limited.
       (2) Postsecondary educational institutions.--The advanced 
     career training may be provided through a postsecondary 
     educational institution for an enrollee who has obtained a 
     secondary school diploma or its recognized equivalent, has 
     demonstrated commitment and capacity in previous Job Corps 
     participation, and has an identified occupational goal.
       (3) Company-sponsored training programs.--The Secretary may 
     enter into contracts with private for-profit businesses and 
     labor unions to provide the advanced career training through 
     intensive training in company-sponsored training programs, 
     combined with internships in work settings.
       (4) Benefits.--
       (A) In general.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (B) Calculation.--The total amount for which an enrollee 
     shall be eligible under subparagraph (A) shall be reduced by 
     the amount of any scholarship or other educational grant 
     assistance received by such enrollee for advanced career 
     training.
       (5) Demonstration.--Each year, any operator seeking to 
     enroll additional enrollees in an advanced career training 
     program shall demonstrate that participants in such program 
     have achieved a reasonable rate of completion and placement 
     in training-related jobs before the operator may carry out 
     such additional enrollment.

     SEC. 749. SUPPORT.

       The Secretary shall provide enrollees assigned to Job Corps 
     centers with such personal allowances, including readjustment 
     allowances, as the Secretary may determine to be necessary or 
     appropriate to meet the needs of the enrollees.

     SEC. 750. OPERATING PLAN.

       (a) In General.--To be eligible to operate a Job Corps 
     center, an entity shall prepare and submit an operating plan 
     to the Secretary for approval. Prior to submitting the plan 
     to the Secretary, the entity shall submit the plan to the 
     Governor of the State in which the center is located for 
     review and comment. The entity shall submit any comments 
     prepared by the Governor on the plan to the Secretary with 
     the plan. Such plan shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan 
     submitted under section 714 for the State in which the center 
     is located;
       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the region in which the center is located;
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 716(a)(2) by the State; and
       (4) an implementation strategy to ensure that the curricula 
     of all such enrollees is integrated into the school-to-work 
     activities of the State, including work-based learning, work 
     experience, and career-building activities, and that such 
     enrollees have the opportunity to obtain secondary school 
     diplomas or their recognized equivalent.
       (b) Approval.--The Secretary shall not approve an operating 
     plan described in subsection (a) for a center if the 
     Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities carried out through the 
     statewide system of the State in which the center is located.

     SEC. 751. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The Secretary shall 
     provide, and directors of Job Corps center shall stringently 
     enforce, standards of conduct within the centers. Such 
     standards of conduct shall include provisions forbidding the 
     actions described in subsection (b)(2)(A).
       (b) Disciplinary Measures.--
       (1) In general.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Job Corps if the director determines that the retention of 
     the enrollee in the Job Corps will jeopardize the enforcement 
     of such standards or diminish the opportunities of other 
     enrollees.
       (2) Zero tolerance policy.--
       (A) Guidelines.--The Secretary shall adopt guidelines 
     establishing a zero tolerance policy for an act of violence, 
     for use, sale, or possession of a controlled substance, for 
     abuse of alcohol, or for another illegal or disruptive 
     activity.
       (B) Definitions.--As used in this paragraph:
       (i) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (ii) Zero tolerance policy.--The term ``zero tolerance 
     policy'' means a policy under which an enrollee shall be 
     automatically dismissed from the Job Corps after a 
     determination by the director that the enrollee has carried 
     out an action described in subparagraph (A).

[[Page S 13053]]

       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the Secretary.

     SEC. 752. COMMUNITY PARTICIPATION.

       (a) Activities.--The Secretary shall encourage and 
     cooperate in activities to establish a mutually beneficial 
     relationship between Job Corps centers in the State and 
     nearby communities. The activities shall include the use of 
     any local partnerships or local workforce development boards 
     established in the State under section 728 to provide a 
     mechanism for joint discussion of common problems and for 
     planning programs of mutual interest.
       (b) Selection Panels.--The Governor may recommend 
     individuals to serve on a selection panel convened by the 
     Secretary to provide recommendations to the Secretary 
     regarding any competitive selection of an operator for a 
     center in the State. In recommending individuals to serve on 
     the panel, the Governor may recommend members of State 
     workforce development boards established under section 715, 
     if any, members of any local partnerships or local workforce 
     development boards established in the State under section 
     728, or other representatives selected by the Governor.
       (c) Activities.--Each Job Corps center director shall--
       (1) give officials of nearby communities appropriate 
     advance notice of changes in the rules, procedures, or 
     activities of the Job Corps center that may affect or be of 
     interest to the communities;
       (2) afford the communities a meaningful voice in the 
     affairs of the Job Corps center that are of direct concern to 
     the communities, including policies governing the issuance 
     and terms of passes to enrollees; and
       (3) encourage the participation of enrollees in programs 
     for improvement of the communities, with appropriate advance 
     consultation with business, labor, professional, and other 
     interested groups, in the communities.

     SEC. 753. COUNSELING AND PLACEMENT.

       The Secretary shall ensure that enrollees assigned to Job 
     Corps centers receive academic and vocational counseling and 
     job placement services, which shall be provided, to the 
     maximum extent practicable, through the delivery of core 
     services described in section 716(a)(2).

     SEC. 754. ADVISORY COMMITTEES.

       The Secretary is authorized to make use of advisory 
     committees in connection with the operation of the Job Corps 
     program, and the operation of Job Corps centers, whenever the 
     Secretary determines that the availability of outside advice 
     and counsel on a regular basis would be of substantial 
     benefit in identifying and overcoming problems, in planning 
     program or center development, or in strengthening 
     relationships between the Job Corps and agencies, 
     institutions, or groups engaged in related activities.
     SEC. 755. APPLICATION OF PROVISIONS OF FEDERAL LAW.

       (a) Enrollees Not Considered To Be Federal Employees.--
       (1) In general.--Except as otherwise provided in this 
     subsection and in section 8143(a) of title 5, United States 
     Code, enrollees shall not be considered to be Federal 
     employees and shall not be subject to the provisions of law 
     relating to Federal employment, including such provisions 
     regarding hours of work, rates of compensation, leave, 
     unemployment compensation, and Federal employee benefits.
       (2) Provisions relating to taxes and social security 
     benefits.--For purposes of the Internal Revenue Code of 1986 
     and title II of the Social Security Act (42 U.S.C. 401 et 
     seq.), enrollees shall be deemed to be employees of the 
     United States and any service performed by an individual as 
     an enrollee shall be deemed to be performed in the employ of 
     the United States.
       (3) Provisions relating to compensation to federal 
     employees for work injuries.--For purposes of subchapter I of 
     chapter 81 of title 5, United States Code (relating to 
     compensation to Federal employees for work injuries), 
     enrollees shall be deemed to be civil employees of the 
     Government of the United States within the meaning of the 
     term ``employee'' as defined in section 8101 of title 5, 
     United States Code, and the provisions of such subchapter 
     shall apply as specified in section 8143(a) of title 5, 
     United States Code.
       (4) Federal tort claims provisions.--For purposes of the 
     Federal tort claims provisions in title 28, United States 
     Code, enrollees shall be considered to be employees of the 
     Government.
       (b) Adjustments and Settlements.--Whenever the Secretary 
     finds a claim for damages to a person or property resulting 
     from the operation of the Job Corps to be a proper charge 
     against the United States, and the claim is not cognizable 
     under section 2672 of title 28, United States Code, the 
     Secretary may adjust and settle the claim in an amount not 
     exceeding $1,500.
       (c) Personnel of the Uniformed Services.--Personnel of the 
     uniformed services who are detailed or assigned to duty in 
     the performance of agreements made by the Secretary for the 
     support of the Job Corps shall not be counted in computing 
     strength under any law limiting the strength of such services 
     or in computing the percentage authorized by law for any 
     grade in such services.

     SEC. 756. SPECIAL PROVISIONS.

       (a) Enrollment of Women.--The Secretary shall immediately 
     take steps to achieve an enrollment of 50 percent women in 
     the Job Corps program, consistent with the need to--
       (1) promote efficiency and economy in the operation of the 
     program;
       (2) promote sound administrative practice; and
       (3) meet the socioeconomic, educational, and training needs 
     of the population to be served by the program.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Gross Receipts.--Transactions conducted by a private 
     for-profit contractor or a nonprofit contractor in connection 
     with the operation by the contractor of a Job Corps center or 
     the provision of services by the contractor for a Job Corps 
     center shall not be considered to be generating gross 
     receipts. Such a contractor shall not be liable, directly or 
     indirectly, to any State or subdivision of a State (nor to 
     any person acting on behalf of such a State or subdivision) 
     for any gross receipts taxes, business privilege taxes 
     measured by gross receipts, or any similar taxes imposed on, 
     or measured by, gross receipts in connection with any 
     payments made to or by such contractor for operating or 
     providing services for a Job Corps center. Such a contractor 
     shall not be liable to any State or subdivision of a State to 
     collect or pay any sales, excise, use, or similar tax imposed 
     on the sale to or use by such contractor of any property, 
     service, or other item in connection with the operation of or 
     provision of services for a Job Corps center.
       (d) Management Fee.--The Secretary shall provide each 
     operator or entity providing services for a Job Corps center 
     with an equitable and negotiated management fee of not less 
     than 1 percent of the contract amount.
       (e) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this chapter.

     SEC. 757. REVIEW OF JOB CORPS CENTERS.

       (a) National Job Corps Review.--Not later than March 31, 
     1997, the Governing Board shall conduct a review of the 
     activities carried out under part B of title IV of the Job 
     Training Partnership Act (29 U.S.C. 1691 et seq.), and submit 
     to the appropriate committees of Congress a report containing 
     the results of the review, including--
       (1) information on the amount of funds expended for fiscal 
     year 1996 to carry out activities under such part, for each 
     State and for the United States;
       (2) for each Job Corps center funded under such part, 
     information on the amount of funds expended for fiscal year 
     1996 under such part to carry out activities related to the 
     direct operation of the center, including funds expended for 
     student training, outreach or intake activities, meals and 
     lodging, student allowances, medical care, placement or 
     settlement activities, and administration;
       (3) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part through 
     contracts to carry out activities not related to the direct 
     operation of the center, including funds expended for student 
     travel, national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part for 
     facility construction, rehabilitation, and acquisition 
     expenses;
       (5) information on the amount of funds required to be 
     expended under such part to complete each new or proposed Job 
     Corps center, and to rehabilitate and repair each existing 
     Job Corps center, as of the date of the submission of the 
     report;
       (6) a summary of the information described in paragraphs 
     (2) through (5) for all Job Corps centers;
       (7) an assessment of the need to serve at-risk youth in the 
     Job Corps program, including--
       (A) a cost-benefit analysis of the residential component of 
     the Job Corps program;
       (B) the need for residential education and training 
     services for at-risk youth, analyzed for each State and for 
     the United States; and
       (C) the distribution of training positions in the Job Corps 
     program, as compared to the need for the services described 
     in subparagraph (B), analyzed for each State;
       (8) an overview of the Job Corps program as a whole and an 
     analysis of individual Job Corps centers, including a 5-year 
     performance measurement summary that includes information, 
     analyzed for the program and for each Job Corps center, on--
       (A) the number of enrollees served;
       (B) the number of former enrollees who entered employment, 
     including the number of former enrollees placed in a position 
     related to the job training received through the program and 
     the number placed in a position not related to the job 
     training received;
       (C) the number of former enrollees placed in jobs for 32 
     hours per week or more;
       (D) the number of former enrollees who entered employment 
     and were retained in the employment for more than 13 weeks;
       (E) the number of former enrollees who entered the Armed 
     Forces;
       (F) the number of former enrollees who completed vocational 
     training, and the rate of such completion, analyzed by 
     vocation;

[[Page S 13054]]

       (G) the number of former enrollees who entered 
     postsecondary education;
       (H) the number and percentage of early dropouts from the 
     Job Corps program;
       (I) the average wage of former enrollees, including wages 
     from positions described in subparagraph (B);
       (J) the number of former enrollees who obtained a secondary 
     school diploma or its recognized equivalent;
       (K) the average level of learning gains for former 
     enrollees; and
       (L) the number of former enrollees that did not--
       (i) enter employment or postsecondary education;
       (ii) complete a vocational education program; or
       (iii) make identifiable learning gains;
       (9) information regarding the performance of all existing 
     Job Corps centers over the 3 years preceding the date of 
     submission of the report; and
       (10) job placement rates for each Job Corps center and each 
     entity providing services to a Job Corps center.
       (b) Recommendations of Governing Board.--
       (1) Recommendations.--The Governing Board shall, based on 
     the results of the review described in subsection (a), make 
     recommendations to the Secretary of Labor, regarding 
     improvements in the operation of the Job Corps program, 
     including--
       (A) closing 5 Job Corps centers by September 30, 1997, and 
     5 additional Job Corps centers by September 30, 2000;
       (B) relocating Job Corps centers described in paragraph 
     (2)(A)(iii) in cases in which facility rehabilitation, 
     renovation, or repair is not cost-effective; and
       (C) taking any other action that would improve the 
     operation of a Job Corps center.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the advisory 
     committee shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the review described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the review 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the advisory committee may determine 
     to be appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the advisory committee shall not recommend 
     that the Secretary of Labor close the only Job Corps center 
     in a State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the advisory committee shall not evaluate the center 
     under this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the Governing 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the Board resulting from the review described 
     in subsection (a) together with the recommendations described 
     in paragraph (1).
       (c) Implementation of Performance Improvements.--The 
     Secretary shall, after reviewing the report submitted under 
     subsection (b)(3), implement improvements in the operation of 
     the Job Corps program, including the closings of 10 
     individual Job Corps centers pursuant to subsection (b). The 
     Secretary may close additional centers as he deems 
     appropriate. Funds saved through the implementation of such 
     improvements shall be used to maintain overall Job Corps 
     program service levels, improve facilities at existing Job 
     Corps centers, relocate Job Corps centers, initiate new Job 
     Corps centers, and make other performance improvements in the 
     Job Corps program.
       (d) Report to Congress.--The Secretary shall annually 
     report to Congress the information specified in paragraphs 
     (8), (9), and (10) of subsection (a) and such additional 
     information relating to the Job Corps program as the 
     Secretary may determine to be appropriate.

     SEC. 758. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Report.--Section 757 shall take effect on the date of 
     enactment of this Act.
       In section 759(a), strike ``to States to assist the States 
     in paying for the cost of carrying out'' and insert ``for 
     States, to enable the Secretary of Labor to carry out in the 
     States, and to assist the States in paying for the cost of 
     carrying out,''.
       In section 759(b)(1), strike ``The State shall use a 
     portion of the funds made available to the State through an 
     allotment received under subsection (c)'' and insert ``The 
     Secretary of Labor shall use the funds made available for a 
     State through an allotment made under subsection (c)(2), and, 
     at the election of the State, a portion of the funds made 
     available to the State through an allotment received under 
     subsection (c)(3),''.
       In section 759(b)(1), strike ``section 755'' and insert 
     ``section 757''.
       In section 759(b)(2), strike ``the funds described in 
     paragraph (1)'' and insert ``the funds made available to a 
     State through an allotment received under subsection 
     (c)(3)''.
       In section 759(c)(1), in the matter preceding subparagraph 
     (A), strike ``allot to'' and insert ``allot for''.
       In section 759(c)(1)(A), strike ``available to'' and insert 
     ``available for''.
       In section 759(c)(2), strike ``to each State'' and insert 
     ``for each State''.
       In section 759(c)(2), strike ``to carry out'' and insert 
     ``to enable the Secretary of Labor to carry out''.
       In section 759(c)(2), strike ``section 755(a)(2)'' and 
     insert ``section 757(a)(2), (3), and (4)''.
       In section 759(d)(1), strike ``subsection (c)'' and insert 
     ``subsection (c)(3)''.
       In section 771(b), strike ``this title'' and insert ``this 
     title (other than subtitle C)''.
       In section 772(a)(4)(B), strike ``this title'' and insert 
     ``this title (other than subtitle C)''.
       In section 776(c)(2)(H), strike ``this title'' and insert 
     ``this title (other than subtitle C)''.
       In the first sentence of section 776(c)(5)(A), strike 
     ``this title'' and insert ``this title (other than subtitle 
     C)''.
       In the second sentence of section 776(c)(5)(A), strike 
     ``this title'' and insert ``this title (other than subtitle 
     C)''.
                                 ______


                       CHAFEE AMENDMENT NO. 2588

  Mr. SANTORUM (for Mr. Chafee) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 50, beginning with line 12, strike all through line 
     17, and insert the following:
       (2) Vouchers for children born to families receiving 
     assistance.--States must provide vouchers in lieu of cash 
     assistance which may be used only to pay for particular goods 
     and services specified by the State as suitable for the care 
     of the child.
                                 ______


                       McCAIN AMENDMENT NO. 2589

  Mr. SANTORUM (for Mr. McCain) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 583, between lines 6 and 7, insert the following:
       ``(4) Families under certain agreements.--In the case of a 
     family receiving assistance from an Indian tribe, distribute 
     the amount so collected pursuant to an agreement entered into 
     pursuant to a State plan under section 454(32).
       On page 712, between lines 9 and 10, insert the following:
     SEC. 972. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.

       (a) Child Support Enforcement Agreements.--Section 454 (42 
     U.S.C. 654), as amended by sections 901(b), 904(a), 912(b), 
     913(a), 933, 943(a), and 970(a)(2) is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period at the end of paragraph (31) and 
     inserting ``; and''; and
       (3) by adding after paragraph (31) the following new 
     paragraph:
       ``(32) provide that a State that receives funding pursuant 
     to section 429 and that has within its borders Indian country 
     (as defined in section 1151 of title 18, United States Code) 
     shall, through the State administering agency, make 
     reasonable efforts to enter into cooperative agreements with 
     an Indian tribe or tribal organization (as defined in 
     paragraphs (1) and (2) of section 428(c)), if the Indian 
     tribe or tribal organization demonstrates that such tribe or 
     organization has an established tribal court system or a 
     Court of Indian Offenses with the authority to establish 
     paternity, establish and enforce support orders, and to enter 
     support orders in accordance with child support guidelines 
     established by such tribe or organization, under which the 
     State and tribe or organization shall provide for the 
     cooperative delivery of child support enforcement services in 
     Indian country and for the forwarding of all funding 
     collected pursuant to the functions performed by the tribe or 
     organization to the State agency, or conversely, by the State 
     agency to the tribe or organization, which shall distribute 
     such funding in accordance with such agreement.''.
       (b) Direct Federal Funding to Indian Tribes and Tribal 
     Organizations.--Section 455 (42 U.S.C. 655) is amended by 
     adding at the end the following new subsection:
       ``(b) The Secretary may, in appropriate cases, make direct 
     payments under this part 

[[Page S 13055]]
     to an Indian tribe or tribal organization which has an approved child 
     support enforcement plan under this title. In determining 
     whether such payments are appropriate, the Secretary shall, 
     at a minimum, consider whether services are being provided to 
     eligible Indian recipients by the State agency through an 
     agreement entered into pursuant to section 454(32). The 
     Secretary shall provide for an appropriate adjustment to the 
     State allotment under this section to take into account any 
     payments made under this subsection to Indian tribes or 
     tribal organizations located within such State.
       (c) Cooperative Enforcement Agreements.--Paragraph (7) of 
     section 454 (42 U.S.C. 654) is amended by inserting ``and 
     Indian tribes or tribal organizations (as defined in section 
     450(b) of title 25, United States Code)'' after ``law 
     enforcement officials''.
                                 ______


                MOYNIHAN (AND OTHERS) AMENDMENT NO. 2590
  Mr. MOYNIHAN (for himself, Ms. Snowe, Mr. Rockefeller, and Mr. Byrd) 
proposed an amendment to amendment No. 2280 proposed by Mr. Dole to the 
bill H.R. 4, supra, as follows:

       On page 26, between lines 21 and 22, insert the following:
       ``(f) Additional Amount for Studies and demonstrations.--
       ``(1) In general.--There are authorized to be appropriated 
     and there are appropriated for each fiscal year described in 
     subsection (a)(1) an additional amount equal to 0.20 percent 
     of the amount appropriated under subparagraph (A) of 
     subsection (a)(4) for the purpose of paying--
       ``(A) the Federal share of any State-initiated study 
     approved under section 410(g);
       ``(B) an amount determined by the Secretary to be necessary 
     to operate and evaluate demonstration projects, relating to 
     part A of title IV of this Act, that are in effect or 
     approved under section 1115 as of October 1, 1995, and are 
     continued after such date;
       ``(C) the cost of conducting the research described in 
     section 410(a); and
       ``(D) the cost of developing and evaluating innovative 
     approaches for reducing welfare dependency and increasing the 
     well-being of minor children under section 410(b).
       ``(2) Allocation.--Of the amount appropriated under 
     paragraph (1) for a fiscal year--
       ``(A) 50 percent shall be allocated for the purposes 
     described in subparagraphs (A) and (B) of paragraph (1), and
       ``(B) 50 percent shall be allocated for the purposes 
     described in subparagraphs (C) and (D) of paragraph (1).
       On page 26, line 22, strike ``(f)'' and insert ``(g)''.
       On page 53, beginning on line 7, strike all through page 
     55, line 7, and insert the following:
       ``(a) In General.--The Secretary, in consultation with 
     State and local government officials and other interested 
     persons, shall develop a quality assurance system of data 
     collection and reporting that promotes accountability and 
     ensures the improvement and integrity of programs funded 
     under this part.
       ``(b) State Submissions.--
       ``(1) In general.--Not later than the 15th day of the first 
     month of each calendar quarter, each State to which a grant 
     is made under section 403 shall submit to the Secretary the 
     data described in paragraphs (2) and (3) with respect to 
     families described in paragraph (4).
       ``(2) Disaggregated data described.--The data described in 
     this paragraph with respect to families described in 
     paragraph (4) is a sample of monthly disaggregated case 
     record data containing the following:
       ``(A) The age of the adults and children (including 
     pregnant women) in each family.
       ``(B) The marital and familial status of each member of the 
     family (including whether the family is a 2-parent family and 
     whether a child is living with an adult relative other than a 
     parent).
       ``(C) The gender, educational level, work experience, and 
     race of the head of each family.
       ``(D) The health status of each member of the family 
     (including whether any member of the family is seriously ill, 
     disabled, or incapacitated and is being cared for by another 
     member of the family).
       ``(E) The type and amount of any benefit or assistance 
     received by the family, including--
       ``(i) the amount of and reason for any reduction in 
     assistance, and
       ``(ii) if assistance is terminated, whether termination is 
     due to employment, sanction, or time limit.
       ``(F) Any benefit or assistance received by a member of the 
     family with respect to housing, food stamps, job training, or 
     the Head Start program.
       ``(G) The number of months since the family filed the most 
     recent application for assistance under the program and if 
     assistance was denied, the reason for the denial.
       ``(H) The number of times a family has applied for and 
     received assistance under the State program and the number of 
     months assistance has been received each time assistance has 
     been provided to the family.
       ``(I) The employment status of the adults in the family 
     (including the number of hours worked and the amount earned).
       ``(J) The date on which an adult in the family began to 
     engage in work, the number of hours the adult engaged in 
     work, the work activity in which the adult participated, and 
     the amount of child care assistance provided to the adult (if 
     any).
       ``(K) The number of individuals in each family receiving 
     assistance and the number of individuals in each family not 
     receiving assistance, and the relationship of each individual 
     to the youngest child in the family.
       ``(L) The citizenship status of each member of the family.
       ``(M) The housing arrangement of each member of the family.
       ``(N) The amount of unearned income, child support, assets, 
     and other financial factors considered in determining 
     eligibility for assistance under the State program.
       ``(O) The location in the State of each family receiving 
     assistance.
       ``(P) Any other data that the Secretary determines is 
     necessary to ensure efficient and effective program 
     administration.
       ``(3) Aggregated monthly data.--The data described in this 
     paragraph is the following aggregated monthly data with 
     respect to the families described in paragraph (4):
       ``(A) The number of families.
       ``(B) The number of adults in each family.
       ``(C) The number of children in each family.
       ``(D) The number of families for which assistance has been 
     terminated because of employment, sanctions, or time limits.
       ``(4) Families described.--The families described in this 
     paragraph are--
       ``(A) families receiving assistance under a State program 
     funded under this part for each month in the calendar quarter 
     preceding the calendar quarter in which the data is 
     submitted,
       ``(B) families applying for such assistance during such 
     preceding calendar quarter, and
       ``(C) families that became ineligible to receive such 
     assistance during such preceding calendar quarter.
       ``(5) Appropriate subsets of data collected.--The Secretary 
     shall determine appropriate subsets of the data described in 
     paragraphs (2) and (3) that a State is required to submit 
     under paragraph (1) with respect to families described in 
     subparagraphs (B) and (C) of paragraph (4).
       ``(6) Sampling and other methods.--The Secretary shall 
     provide the States with such case sampling plans and data 
     collection procedures as the Secretary deems necessary to 
     produce statistically valid estimates of each State's program 
     performance. The Secretary is authorized to develop and 
     implement procedures for verifying the quality of data 
     submitted by the States.
       On page 58, between lines 5 and 6, insert the following:
       ``(j) Report to Congress.--Not later than 6 months after 
     the end of fiscal year 1997, and each fiscal year thereafter, 
     the Secretary shall transmit to the Congress a report 
     describing--
       ``(1) whether the States are meeting--
       ``(A) the participation rates described in section 404(a); 
     and
       ``(B) the objectives of--
       ``(i) increasing employment and earnings of needy families, 
     and child support collections; and
       ``(ii) decreasing out-of-wedlock pregnancies and child 
     poverty;
       ``(3) the demographic and financial characteristics of 
     families applying for assistance, families receiving 
     assistance, and families that become ineligible to receive 
     assistance;
       ``(4) the characteristics of each State program funded 
     under this part; and
       ``(5) the trends in employment and earnings of needy 
     families with minor children.
       On page 58, beginning on line 8, strike all through page 
     58, line 21, and insert the following:
       ``(a) Research.--The Secretary shall conduct research on 
     the benefits, effects, and costs of operating different State 
     programs funded under this part, including time limits 
     relating to eligibility for assistance. The research shall 
     include studies on the effects of different programs and the 
     operation of such programs on welfare dependency, 
     illegitimacy, teen pregnancy, employment rates, child well-
     being, and any other area the Secretary deems appropriate.
       ``(b) Development and Evaluation of Innovative Approaches 
     To Reducing Welfare Dependency and Increasing Child Well-
     Being.--
       ``(1) In general.--The Secretary may assist States in 
     developing, and shall evaluate, innovative approaches for 
     reducing welfare dependency and increasing the well-being of 
     minor children with respect to recipients of assistance under 
     programs funded under this part. The Secretary may provide 
     funds for training and technical assistance to carry out the 
     approaches developed pursuant to this paragraph.
       ``(2) Evaluations.--In performing the evaluations under 
     paragraph (1), the Secretary shall, to the maximum extent 
     feasible, use random assignment as an evaluation methodology.
       On page 58, line 22, strike ``(d)'' and insert ``(c)''.
       On page 59, line 4, strike ``(e)'' and insert ``(d)''.
       On page 59, line 22, strike ``(f)'' and insert ``(e)''.
       On page 60, between lines 13 and 14, insert the following:
       ``(g) State-Initiated Studies.--A State shall be eligible 
     to receive funding to evaluate the State's family assistance 
     program funded under this part if--

[[Page S 13056]]

       ``(1) the State submits a proposal to the Secretary for 
     such evaluation,
       ``(2) the Secretary determines that the design and approach 
     of the evaluation is rigorous and is likely to yield 
     information that is credible and will be useful to other 
     States, and
       ``(3) unless otherwise waived by the Secretary, the State 
     provides a non-Federal share of at least 10 percent of the 
     cost of such study.
                                 ______


                        BOXER AMENDMENT NO. 2591

  Mr. MOYNIHAN (for Mrs. Boxer) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 17, line 2, strike ``and (5)'' and insert ``(5), 
     and (6)''.
       On page 24, between lines 18 and 19, and insert the 
     following:
       ``(6) Child care maintenance of effort.--
       ``(A) In general.--The amount of the grant otherwise 
     determined under paragraph (1) for fiscal year 1997, 1998, 
     1999, and 2000 shall be reduced by the amount by which State 
     expenditures under the State program funded under this part 
     for child care for the preceding fiscal year is less than 
     historic State child care expenditures.
       ``(B) Historic state child care expenditures.--For purposes 
     of this paragraph, the term `historic State child care 
     expenditures' means amounts expended for fiscal year 1994 for 
     child care under--
       ``(i) section 402(g)(1)(A)(i) of this Act (relating to 
     AFDC-JOBs child care) (as in effect during such year);
       ``(ii) section 402(g)(1)(A)(ii) of this Act (relating to 
     transitional child care) (as so in effect); and
       ``(iii) section 402(i) of this Act (relating to at-risk 
     child care) (as so in effect).
       ``(C) Determining state expenditures.--For purposes of this 
     paragraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
       ``(D) Bonus for states with high work participation 
     rates.--The Secretary shall distribute (in a manner to be 
     determined by the Secretary) amounts by which State grants 
     are reduced under this section to States that exceed the 
     minimum participation rates specified under section 404(a). 
     If no State qualifies for such distribution, the Secretary 
     may retain such amounts for distribution in succeeding 
     years.''.
                                 ______


                    BOXER AMENDMENTS NOS. 2592-2593

  Mr. MOYNIHAN (for Mrs. Boxer) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:
                           Amendment No. 2592

       On page 292, line 5, strike ``and''.
       On page 292, line 11, strike the end period and insert ``, 
     and''.
       On page 292, between lines 11 and 12, insert:
       (F) payments for foster care and adoption assistance under 
     part E of title IV of the Social Security Act.

                           Amendment No. 2593

       At the appropriate place, insert the following new section:

     SEC. ____. SENSE OF SENATE REGARDING GAG RULE.

       It is the sense of the Senate that, notwithstanding any 
     other provision of law, receipt of Federal funding by 
     providers of health care or social services shall not permit 
     the Federal Government, States, counties, or any other 
     political subdivisions to restrict the content of any medical 
     information provided by those providers in furtherance of the 
     provision of health care or social services to their patients 
     or clients.
                                 ______


                FAIRCLOTH (AND GRAMM) AMENDMENT NO. 2594

  Mr. SANTORUM (for Mr. Faircloth for himself and Mr. Gramm) proposed 
an amendment to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

       On page 49, strike line 13 through line 19 and insert the 
     following.
       ``(b) No Assistance for Out-of-Wedlock Births to Minors 
     Unless Certain Conditions are Met.--Notwithstanding 
     subsection (d), a State to which a grant is made under 
     section 403 may not use any part of the grant to provide cash 
     benefits for a child born out-of-wedlock to an individual who 
     has not attained 18 years of age, or for the individual, 
     until the individual attains such age or unless the following 
     conditions are met:
       ``(A) The individual is in, or has graduated from, a 
     secondary school or a program offering the equivalent of 
     vocational or technical training, or has obtained a 
     certificate of high school equivalency.
       ``(B) Any cash benefits for the child or the individual are 
     provided only to--
       (I) an adult with whom the individual or child reside, and 
     whom the State recognizes as acting in loco parentis with 
     respect to the individual; or
       (ii) the maternity home, foster home, or other adult-
     supervised supportive living arrangement in which the 
     individual lives.
       ``(C) Any vouchers provided in lieu of cash benefits for 
     the individual or the child may be used only to pay for--
       (i) particular goods and services specified by the State as 
     suitable for the care of the child (such as diapers, 
     clothing, or cribs): or
       (ii) the costs associated with a maternity home, foster 
     home, or other adult supervised supportive living arrangement 
     in which the individual and child live.
       ``(D) Exception for Rape or Incest.--Subparagraph (A) shall 
     not apply with respect to a child who is born as a result of 
     rape or incest.''
                                 ______


                  FAIRCLOTH AMENDMENTS NOS. 2595-2607

  Mr. SANTORUM (for Mr. Faircloth) proposed thirteen amendments to 
amendment No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as 
follows:

                           Amendment No. 2595

       At the appropriate place, insert the following:

     SEC. ____. REPORT ON DISQUALIFICATION OF ILLEGAL ALIENS FROM 
                   HOUSING ASSISTANCE PROGRAMS.

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Housing and Urban 
     Development shall submit to the Committees on the Judiciary 
     of the House of Representatives and the Senate, the Committee 
     on Banking and Financial Services of the House of 
     Representatives, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, a report describing the manner 
     in which the Secretary is enforcing section 214 of the 
     Housing and Community Development Act of 1980.
       (b) Contents.--The report submitted under subsection (a) 
     shall include statistics with respect to the number of aliens 
     denied financial assistance under such section.
       Amend the table of contents accordingly.
                                                                    ____


                           Amendment No. 2596

       At the appropriate place, insert the following:

     SEC. ____. SENSE OF THE CONGRESS REGARDING A WORK REQUIREMENT 
                   FOR PUBLIC HOUSING RESIDENTS.

       It is the sense of the Congress that able-bodied residents 
     of public housing (as such term is defined in section 3(b) of 
     the United States Housing Act of 1937) should be required to 
     perform work service to improve and maintain the facilities 
     in which they live.
       Amend the table of contents accordingly.
                                                                    ____

                           Amendment No. 2597

       At the end of section 731, insert the following:
       (f) Evaluations.--
       (1) Covered activities.--The activities referred to in this 
     subsection are activities carried out under this subtitle or 
     subtitle C.
       (2) In general.--Each State that carries out activities 
     described in paragraph (1) shall conduct ongoing evaluations 
     of such activities.
       (3) Methods.--The State shall conduct such evaluations 
     through controlled experiments using experimental and control 
     groups chosen by random assignment. In conducting the 
     evaluations, the State shall, at a minimum, determine whether 
     activities described in paragraph (1) effectively raise the 
     hourly wage rates of participants in such activities.
       (4) Ongoing nature of evaluations.--At any given time 
     during the 2-year period of the program, the State shall 
     conduct at least 1 such evaluation of the activities 
     described in paragraph (1).
                                                                    ____


                           Amendment No. 2598

       At the end of section 712, insert the following:
       (d) Transferability To Operate Work Programs.--
       (1) Transfers to other work and training activities.--The 
     Governor of a State that receives an allotment under this 
     section may use 25 percent of the funds made available 
     through the allotment--
       (A) to enable the State to meet the minimum participation 
     rates described in section 404(a) of the Social Security Act 
     (as amended by section 101), including the provision of such 
     child care services as the Governor may determine to be 
     necessary to meet the rates; or
       (B) for the implementation of work and training programs 
     for recipients of Federal means tested assistance (as defined 
     by the Federal Partnership), including the provision of the 
     child care services described in subparagraph (A).
       (2) Transfers from other work and training activities.--The 
     Governor of a State that receives funds under part A of title 
     IV of the Social Security Act, or Federal financial 
     assistance to carry out the programs described in paragraph 
     (1)(B), may use 25 percent of the funds or financial 
     assistance to carry out the activities described in this 
     subtitle.
                                                                    ____

                           Amendment No. 2599

       In section 759(b), add at the end the following:
       (3) Transfers to other work and training activities.--The 
     Governor of a State that receives an allotment under this 
     section may use 25 percent of the funds made available 
     through the allotment--
       (A) to enable the State to meet the minimum participation 
     rates described in section 404(a) of the Social Security Act 
     (as amended by section 101), including the provision of 

[[Page S 13057]]
     such child care services as the Governor may determine to be necessary 
     to meet the rates; or
       (B) for the implementation of work and training programs 
     for recipients of Federal means tested assistance (as defined 
     by the Federal Partnership), including the provision of the 
     child care services described in subparagraph (A).
       (4) Transfers from other work and training activities.--The 
     Governor of a State that receives funds under part A of title 
     IV of the Social Security Act, or Federal financial 
     assistance to carry out the programs described in paragraph 
     (3)(B), may use 25 percent of the funds or financial 
     assistance to carry out the activities described in this 
     subtitle.
                                                                    ____


                           Amendment No. 2600

       On page 200, between lines 11 and 12, insert the following:

     SEC. 321. CASH AID IN LIEU OF ALLOTMENT.

       Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) (as 
     amended by section 320) is further amended by adding at the 
     end the following:
       ``(k) Cash aid in lieu of coupons.--
       ``(1) Eligible individuals.--For purposes of this 
     subsection, an individual shall be eligible if the individual 
     is--
       ``(A) receiving benefits under this Act;
       ``(B) 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.); and
       ``(C) participating in subsidized employment, on-the-job 
     training, or a community service program under section 404 of 
     the Social Security Act.
       ``(2) State option.--In the case of an eligible individual 
     described in paragraph (1), a State agency may--
       ``(A) convert the food stamp benefits of the household of 
     which the individual is a member to cash, and provide the 
     cash in a single integrated payment with cash aid under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.); and
       ``(B) sanction the individual, or a household that contains 
     the individual, or reduce the benefits of the individual or 
     household under the same rules and procedures as the State 
     uses under part A of title IV of the Act (42 U.S.C. 601 et 
     seq.).
                                                                    ____

                           Amendment No. 2601

       On page 190, strike lines 9 through 17 and insert the 
     following:
       ``(i) Comparable Treatment Under Separate Programs.--
       ``(1) In general.--If a disqualification, penalty, or 
     sanction is imposed on a household or part of a household for 
     a failure of an individual to perform an action required 
     under a Federal, State, or local law relating to a welfare or 
     public assistance program, the State agency may impose the 
     same disqualification, penalty, or sanction on the household 
     or part of the household under the food stamp program using 
     the rules and procedures that apply to the welfare or public 
     assistance program.
                                                                    ____


                           Amendment No. 2602

       On page 36, between lines 13 and 14, insert the following:
       ``(4) Limitation on vocational education activities counted 
     as work.--For purposes of determining monthly participation 
     rates under paragraphs (1)(B)(i)(I) and (2)(B)(i) of 
     subsection (b), not more than 20 percent of adults in all 
     families and in 2-parent families determined to be engaged in 
     work in the State for a month may meet the work activity 
     requirement through participation in vocational educational 
     training.
                                                                    ____

                           Amendment No. 2603

       On page 49, strike lines 13 through 19, and insert the 
     following:
       ``(b) No Assistance For Out-of-wedlock Births To Minors.--
       ``(1) General rule.--A State to which a grant is made under 
     section 403 may not use any part of the grant to provide cash 
     benefits for a child born out-of-wedlock to an individual who 
     has not attained 18 years of age, or for the individual, 
     until the individual attains such age.
       ``(2) Exception for rape or incest.--Paragraph (1) shall 
     not apply with respect to a child who is born as a result of 
     rape (other than statutory rape) or incest.
       ``(3) Exception for vouchers.--Paragraph (1) shall not 
     apply to vouchers which are provided in lieu of cash benefits 
     and which may be used only to pay for particular goods and 
     services specified by the State as suitable for the care of 
     the child involved.
       ``(4) State may elect not to have provision apply.--
       ``(A) In general.--Paragraph (1) shall not apply to a State 
     during any period during which there is in effect a State law 
     which provides that individuals described in paragraph (1) 
     are eligible for cash benefits from funds made available 
     under section 403.
       ``(B) Time for election.--Subparagraph (A) shall only apply 
     if such State law is in effect on or 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 the Work Opportunity Act 
     of 1995.
       ``(C) Transition rule.--Paragraph (1) shall not apply in a 
     State before the first day of the first calendar quarter 
     described in subparagraph (B) unless there is in effect 
     before such day a State law prohibiting cash benefits to 
     individuals described in paragraph (1).
                                                                    ____

                           Amendment No. 2604

       On page 49, beginning with line 20, strike all through page 
     50, line 5, and insert the following:
       ``(c) No Additional Cash Assistance For Children Born To 
     Families Receiving Assistance.--
       ``(1) General rule.--A State to which a grant is made under 
     section 403 may not use any part of the grant to provide cash 
     benefits for a minor child who is born to--
       ``(A) a recipient of benefits under the program operated 
     under this part; or
       ``(B) a person who received such benefits at any time 
     during the 10-month period ending with the birth of the 
     child.
       ``(2) Exception for rape or incest.--Paragraph (1) shall 
     not apply with respect to a child who is born as a result of 
     rape (other than statutory rape) or incest.
       ``(3) Exception for vouchers.--Paragraph (1) shall not 
     apply to vouchers which are provided in lieu of cash benefits 
     and which may be used only to pay for particular goods and 
     services specified by the State as suitable for the care of 
     the child involved.
       ``(4) State may elect not to have provision apply.--
       ``(A) In general.--Paragraph (1) shall not apply to a State 
     during any period during which there is in effect a State law 
     which provides that individuals described in paragraph (1) 
     are eligible for cash benefits from funds made available 
     under section 403.
       ``(B) Time for election.--Subparagraph (A) shall only apply 
     if such State law is in effect on or 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 the Work Opportunity Act 
     of 1995.
       ``(C) Transition rule.--Paragraph (1) shall not apply in a 
     State before the first day of the first calendar quarter 
     described in subparagraph (B) unless there is in effect 
     before such day a State law prohibiting cash benefits to 
     individuals described in paragraph (1).
                                                                    ____

                           Amendment No. 2605

       On page 49, strike lines 13 through 19, and insert the 
     following:
       ``(b) No Assistance For Out-of-wedlock Births To Minors.--
       ``(1) General rule.--A State to which a grant is made under 
     section 403 may not use any part of the grant to provide cash 
     benefits for a child born out-of-wedlock to an individual who 
     has not attained 18 years of age, or for the individual, 
     until the individual attains such age.
       ``(2) Exception for rape or incest.--Paragraph (1) shall 
     not apply with respect to a child who is born as a result of 
     rape (other than statutory rape) or incest.
       ``(3) State option.--Nothing in paragraph (1) shall be 
     construed to prohibit a State from using funds provided by 
     section 403 from providing aid in the form of vouchers that 
     may be used only to pay for particular goods and services 
     specified by the State as suitable for the care of the child 
     such as diapers, clothing, and school supplies.
                                                                    ____

                           Amendment No. 2606

       On page 42, between lines 21 and 22, insert the following:
       ``(f) Provisions Relating to Paternity Establishment.--
       ``(1) Paternity not established.--If a State provides cash 
     benefits to families from grant funds received by the State 
     under section 403, the State shall provide that if a family 
     applying for such benefits includes a child who has not 
     attained age 18 and who was born on or after January 1, 1996, 
     with respect to whom paternity has not been established, such 
     benefits shall not be available for--
       ``(A) such child (until the child attains age 18); and
       ``(B) the parent or caretaker relative of such child if the 
     parent or caretaker relative of such child is not the parent 
     or caretaker relative of another child for whom benefits are 
     available.
       ``(2) Exceptions.--Notwithstanding paragraph (1)--
       ``(A) the State may use grant funds received by the State 
     under section 403 to provide cash benefits to a minor child 
     who is up to 6 months of age for whom paternity has not been 
     established if the parent or caretaker relative of the child 
     provides the name, address, and such other identifying 
     information as the State may require of an individual who may 
     be the father of the child; and
       ``(B) the State may exempt up to 25 percent of all families 
     in the population described in paragraph (1) applying for 
     cash benefits from grant funds received by the State under 
     section 403 which include a child who was born on or after 
     January 1, 1996, and with respect to whom paternity has not 
     been established, from the reduction imposed under paragraph 
     (1).
                                                                    ____

                           Amendment No. 2607

       On page 11, beginning on line 5, strike ``, and establish'' 
     and all that follows through line 7, and insert a period.
       On page 11, between lines 7 and 8, insert the following:

     ``SEC. 401A. GOALS AND PLAN FOR REDUCING ILLEGITIMACY.

       ``(a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, each State to which a grant is 
     made under section 403 shall--

[[Page S 13058]]

       ``(1) establish formal numeric goals for the State's 
     illegitimacy ratio for fiscal years 1997 through 2007; and
       ``(2) submit a plan to the Secretary that--
       ``(A) outlines how the State intends to reduce the State's 
     illegitimacy ratio; and
       ``(B) evaluates the potential impact of the States's plan 
     for reducing the State's illegitimacy ratio on the State's 
     abortion rate.
       ``(b) Illegitimacy Ratio and Abortion Rate.--
       ``(1) Illegitimacy ratio.--For purposes of this section, 
     the term `illegitimacy ratio' means, with respect to a State 
     and a fiscal year--
       ``(A) the number of out-of-wedlock births that occurred in 
     the State during the most recent fiscal year for which such 
     information is available; divided by
       ``(B) the number of births that occurred in the State 
     during the most recent fiscal year for which such information 
     is available.
       ``(2) Abortion rate.--For purposes of this section, the 
     term `abortion rate' means, with respect to a State and a 
     fiscal year, the number of abortions performed in the State 
     per 1,000 women who are residents of the State and are 
     between the ages of 15 and 44 during the most recent fiscal 
     year for which such information is available.
                                 ______


                FAIRCLOTH (AND GRAMM) AMENDMENT NO. 2608

  Mr. SANTORUM (for Mr. Faircloth for himself and Mr. Gramm) proposed 
an amendment to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

       On page 425, between lines 15 and 16, insert the following:
       ``(d) Abstinence Education Program.--
       ``(1) Funds earmarked.--Of the amounts appropriated under 
     subsection (a), $200,000,000 shall be allocated to the States 
     pursuant to the allocation formula and rules under title V of 
     the Social Security Act (42 U.S.C. 701 et seq.) to be used 
     exclusively for abstinence education, and at the option of 
     the State, where appropriate, mentoring, counseling, and 
     adult supervision to promote abstinence from sexual activity, 
     with a focus on those groups which are most likely to bear 
     children out-of-wedlock.
       ``(2) Abstinence education.--For purposes of this 
     subsection, the term `abstinence education' shall mean an 
     educational or motivational program which--
       ``(A) has as its exclusive purpose, teaching the social, 
     psychological, and health gains to be realized by abstaining 
     from sexual activity;
       ``(B) teaches abstinence from sexual activity outside 
     marriage as the expected standard for all school age 
     children;
       ``(C) teaches that abstinence from sexual activity is the 
     only certain way to avoid out-of-wedlock pregnancy, sexually 
     transmitted diseases, and other associated health problems;
       ``(D) teaches that a mutually faithful monogamous 
     relationship in context of marriage is the expected standard 
     of human sexual activity;
       ``(E) teaches that sexual activity outside of the context 
     of marriage is likely to have harmful psychological and 
     physical effects;
       ``(F) teaches that bearing children out-of-wedlock is 
     likely to have harmful consequences for the child, the 
     child's parents, and society;
       ``(G) teaches young people how to reject sexual advances 
     and how alcohol and drug use increases vulnerability to 
     sexual advances; and
       ``(H) teaches the importance of attaining self-sufficiency 
     before engaging in sexual activity.
                                 ______


                      FAIRCLOTH AMENDMENT NO. 2609

  Mr. SANTORUM (for Mr. Faircloth) proposed an amendment to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 50, line 13, insert ``except as provided in 
     paragraph (3),'' after ``(A)''.
       On page 51, between lines 11 and 12, insert the following:
       ``(3) Requirement that adult relative or guardian not have 
     a history of assistance.--A State shall not use any part of 
     the grant paid under section 403 to provide assistance to an 
     individual described in paragraph (2) if such individual 
     resides with a parent, guardian, or other adult relative 
     who--
       (A) has had a child out-of-wedlock; and
       (B) during the preceding 2-year period, received assistance 
     as an adult under a State program funded under this part or 
     under the program for aid to families with dependent 
     children.
                                 ______


                      MOYNIHAN AMENDMENT NO. 2610

  Mr. MOYNIHAN proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 122, between lines 11 and 12, insert the following:

     SEC. 110A. POVERTY DATA CORRECTION.

       (a) In General.--Chapter 5 of title 13, United States Code, 
     is amended by adding after subchapter V the following:

                     ``Subchapter VI--Poverty Data

     ``SEC. 197. CORRECTION OF SUBNATIONAL DATA RELATING TO 
                   PROVERTY.

       ``(a) Any data relating to the incidence of poverty 
     produced or published by or for the Secretary for subnational 
     areas shall be corrected for differences in the cost of 
     living, and data produced for State and sub-State areas shall 
     be corrected for differences in the cost of living for at 
     least all States of the United States.
       ``(b) Data under this section shall be published in 1997 
     and at least every second year thereafter.

     ``SEC. 198. DEVELOPMENT OF STATE COST-OF-LIVING INDEX AND 
                   STATE POVERTY THRESHOLDS.

       ``(a) To correct any data relating to the incidence of 
     poverty for differences in the cost of living, the Secretarty 
     shall--
       ``(1) develop or cause to be developed a State cost-of-
     living index which ranks and assigns an index value to each 
     State using data on wage, housing, and other costs relevant 
     to the cost of living; and
       ``(2) multiply the Federal Government's statistical poverty 
     thresholds by the index value for each State's cost of living 
     to produce State poverty thresholds for each State.
       ``(b) The State cost-of-living index and resulting State 
     poverty thresholds shall be published prior to September 30, 
     1996, for calendar year 1995 and shall be updated annually 
     for each subsequent calendar year.''.
       (b) Conforming Amendment.--The table of subchapters of 
     chapter 5 of title 13, United States Code, is amended by 
     adding at the end the following:
                     ``SUBCHAPTER VI--POVERTY DATA

``Sec. 197. Correction of subnational data relating to poverty.
``Sec. 198. Development of State cost-of-living index and State poverty 
              thresholds.''.
                                 ______


                      MOYNIHAN AMENDMENT NO. 2611

  Mr. MOYNIHAN proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place, insert:
         TITLE ____--STATE MINIMUM RETURN OF FEDERAL TAX BURDEN

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``State Minimum Return Act 
     of 1995''.

     SEC. ____02. STATEMENT OF POLICY.

       It is the purpose of this title to provide, within existing 
     budgetary limits, authority to reallocate the distribution of 
     certain Federal spending to various States in order to ensure 
     by the end of fiscal year 2000 that each State receive in 
     each fiscal year a percentage of total allocable Federal 
     expenditures equal to a minimum of 90 percent of the 
     percentage of total Federal tax burden attributable to such 
     State for such fiscal year.

     SEC. ____03. DEFINITIONS.

       As used in this title--
       (1) The term ``Director'' means the Director of the Office 
     of Management and Budget.
       (2) The term ``Federal agency'' means any agency defined in 
     section 551(1) of title 5, United States Code.
       (3) The term ``State'' means each of the several States and 
     the District of Columbia.
       (4) The term ``historic share'' means the average 
     percentage share of Federal expenditures received by any 
     State during the most recent three fiscal years.
       (5) The term ``Federal expenditures'' means all outlays by 
     the Federal Government as defined in section 3(1) of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 622(1)) which the Bureau of the Census can allocate to 
     the several States.
       (6) The term ``Federal tax revenues'' means all revenues 
     collected pursuant to the Internal Revenue Code of 1986.
       (7) The term ``need-based program'' means any program which 
     results in direct payment to individuals and which involves 
     an income test to help determine the eligibility of an 
     individual for assistance under such program.

     SEC. ____04. DESIGNATION OF ELIGIBLE STATES.

       (a) Any State shall be eligible for a positive reallocation 
     of allocable Federal expenditures described in section ____05 
     and received by such State under section ____07(a), if such 
     State, for any fiscal year, has an allocable Federal 
     expenditure to Federal tax ratio which is less than 90 
     percent.
       (b) Any State shall be eligible for a positive reallocation 
     of Federal expenditures described in section ____05 and 
     received by such State under paragraph (1) of section 
     ____07(a), if such State, for any fiscal year, has an 
     allocable Federal expenditure to Federal tax ratio which is 
     less than 100 percent but greater than or equal to 90 
     percent.
       (c) During each fiscal year, the Director, after 
     consultation with the Secretary of the Treasury and the 
     Director of the Census Bureau, shall determine the 
     eligibility of any State under this section using the most 
     recent fiscal year data and estimated data available 
     concerning Federal tax revenues and allocable Federal 
     expenditures attributable to such State. The Secretary of the 
     Treasury shall determine the attribution of Federal tax 
     revenues to each State after consultation with the 
     Comptroller General of the United States and other interested 
     public and private persons.
       (d) For purposes of determining the eligibility of any 
     State under subsection (c), any water or power program in 
     which the Federal 

[[Page S 13059]]
     Government, through Government corporations, provides water or power to 
     any State at less than market price shall be taken into 
     account in computing such State's allocable Federal 
     expenditure to Federal tax ratio by characterizing as an 
     imputed Federal expenditure the difference between the market 
     price as determined by the Secretary of the Treasury in 
     consultation with the Director and the Secretary of Energy 
     and the Secretary of the Interior and the program's actual 
     price of providing such water or power to such State.

     SEC. ____05. DESIGNATION OF REALLOCABLE FEDERAL EXPENDITURES.

       All allocable Federal expenditures in any fiscal year shall 
     be subject to reallocation to ensure the objective described 
     in section ____02 with respect to eligible States designated 
     under section ____04, except for such expenditures with 
     respect to the following:
       (1) Water and power programs which are described in section 
     ____04(d).
       (2) Compensation and allowances of officers and employees 
     of the Federal Government.
       (3) Maintenance of Federal Government buildings and 
     installations.
       (4) Offsetting receipts.
       (5) Programs for which the Federal Government assumes the 
     total cost and in which a direct payment is made to a 
     recipient other than a governmental unit. Such programs 
     include, but are not limited to:
       (A) Social Security, including disability, retirement, 
     survivors insurance, unemployment compensation, and Medicare, 
     including hospital and supplementary medical insurance;
       (B) Supplemental Security Income;
       (C) Food Stamps;
       (D) Black Lung Disability;
       (E) National Guaranteed Student Loan interest subsidies;
       (F) Pell grants;
       (G) lower income housing assistance;
       (H) social insurance payments for railroad workers;
       (I) railroad retirement;
       (J) excess earned income tax credits;
       (K) veterans assistance, including pensions, service 
     connected disability, nonservice connected disability, 
     educational assistance, dependency payments, and pensions for 
     spouses and surviving dependents;
       (L) Federal workers' compensation;
       (M) Federal retirement and disability;
       (N) Federal employee life and health insurance; and
       (O) farm income support programs.

     SEC. ____06. REALLOCATION AUTHORITY.

       (a) Notwithstanding any other provision of law, during any 
     fiscal year the head of each Federal agency shall, after 
     consultation with the Director, make such reallocations of 
     allocable expenditures described in section ____05 to 
     eligible States designated under section ____04 as are 
     necessary to ensure the objective described in section 
     ____02.
       (b) Notwithstanding any other provision of law and to the 
     extent necessary in the administration of this title, the 
     head of each Federal agency shall waive any administrative 
     provision with respect to allocation, allotments, 
     reservations, priorities, or planning and application 
     requirements (other than audit requirements) for the 
     expenditures reallocated under this title.
       (c) The head of each Federal agency having responsibilities 
     under this title is authorized and directed to cooperate with 
     the Director in the administration of the provisions of this 
     title.

     SEC. ____07. REALLOCATION MECHANISMS.

       (a) Notwithstanding any other provision of law, for 
     purposes of this title, during any fiscal year reallocations 
     of expenditures required by section ____06 shall be 
     accomplished in the following manner:
       (1)(A) With respect to procurement contracts, and 
     subcontracts in excess of $25,000, the head of each Federal 
     agency shall--
       (i) identify qualified firms in eligible States designated 
     under section ____04 and disseminate any information to such 
     firms necessary to increase participation by such firms in 
     the bidding for such contracts and subcontracts,
       (ii) in order to ensure the objective described in section 
     ____02, increase the national share of such contracts and 
     subcontracts for each eligible State designated under section 
     ____04(a) by up to 10 percent each fiscal year, and
       (iii) thirty days after the end of each fiscal year, report 
     to the Director regarding progress made during such fiscal 
     year to increase the share of such contracts and subcontracts 
     for such eligible States, including the percentage increase 
     achieved under clause (ii) and if the goal described in 
     clause (ii) is not attained, the reasons therefor.

     Within ninety days after the end of each fiscal year, the 
     Director shall review, evaluate, and report to the Congress 
     as to the progress made during such fiscal year to increase 
     the share of procurement contracts and subcontracts the 
     preponderance of the value of which has been performed in 
     such eligible States.
       (B) With respect to each fiscal year, if any Federal agency 
     does not attain the goal described in subparagraph (A)(ii), 
     then, during the subsequent fiscal year, such agency shall 
     report to the Director prior to the awarding of any contract 
     or subcontract described in subparagraph (A) to any firm in 
     an ineligible State the reasons such contract or subcontract 
     was not awarded to any firm in an eligible State.
       (C) In the case of any competitive procurement contract or 
     subcontract, the head of the contracting Federal agency shall 
     award such contract or subcontract to the lowest bid from a 
     qualified firm that will perform the preponderance of the 
     value of the work in an eligible State designated under 
     section ____04 if the bid for such contract or subcontract is 
     lower or equivalent to any bid from any qualified firm that 
     will perform the preponderance of the value of the work in an 
     ineligible State.
       (D) In the case of any noncompetitive procurement contract 
     or subcontract, the head of each Federal agency shall 
     identify and award such contract or subcontract to a 
     qualified firm that will perform the preponderance of the 
     value of the work in an eligible State designated under 
     section ____04 and that complete such contract or subcontract 
     at a lower or equivalent price as any qualified firm that 
     will perform the preponderance of the value of the work in an 
     ineligible State.
       (E) For purposes of this paragraph, in the case of any 
     procurement contract or subcontract, any firm shall be 
     qualified if--
       (i) such firm has met the elements of responsibility 
     provided for in section 8(b)(7) of the Small Business Act (15 
     U.S.C. 637(b)(7)) as determined by the head of the 
     contracting Federal agency to be necessary to complete the 
     contract or subcontract in a timely and satisfactory manner, 
     and
       (ii) with respect to any prequalification requirement, such 
     firm has been notified in writing of all standards which a 
     prospective contractor must satisfy in order to become 
     qualified, and upon request, is provided a prompt opportunity 
     to demonstrate the ability of such firm to meet such 
     specified standards.
       (F) In order to reallocate expenditures with respect to 
     subcontracts as required by subparagraph (A), each Federal 
     agency shall collect necessary data to identify such 
     subcontracts beginning in fiscal year 1991.
       (2)(A) With respect to all other expenditures described in 
     section ____05, including all grants administered by the 
     Department of Transportation, the Department of the Interior, 
     the Department of Agriculture, the Environmental Protection 
     Agency, and the United States Army Corps of Engineers, any 
     eligible State designated under section ____04(a) shall 
     receive 110 percent of such State's historic share with 
     respect to such expenditures.
       (b) No reallocation shall be made under this section with 
     respect to allocable expenditures for any program to any 
     State in any fiscal year which results in a reduction of 10 
     percent or more of the amount of such expenditures to such 
     State.
       (c) No reallocation shall be made under the provisions of 
     this title which will result in any allocable Federal 
     expenditure to Federal tax ratio of any State being reduced 
     below 90 percent.

     SEC. ____08. AMENDMENTS.

       No provision of law shall explicitly or implicitly amend 
     the provisions of this title unless such provision 
     specifically refers to this title.

     SEC. ____09. STUDY.

       (a) The Secretary of the Treasury or a delegate of the 
     Secretary shall conduct a study on the impact of Federal 
     spending, tax policy, and fiscal policy on State economies 
     and the economic growth rate of States and regions of the 
     United States. In particular, the Secretary or his delegate 
     shall examine the extent to which the economies of States 
     which have allocable Federal expenditure to Federal tax 
     ratios below 100 are harmed by such a fiscal relationship 
     with the Federal Government.
       (b) The report of the study required by subsection (a) 
     shall be submitted to Congress not later than December 31, 
     1996.

     SEC. ____10. EFFECTIVE DATE.

       The provisions of this title shall take effect for fiscal 
     years beginning after the date of the enactment of this 
     title.
                                 ______


                    GRAMM AMENDMENTS NOS. 2612-2614

  Mr. SANTORUM (for Mr. Gramm) proposed three amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2612

       On page 34, line 20, strike ``For any fiscal year'' and 
     insert ``Solely for the first 12-month period to which the 
     requirement to engage in work under this section is in 
     effect''.
                                                                    ____


                           Amendment No. 2613

       On page 34, beginning on line 24, strike ``and may 
     exclude'' and all that follows through page 35, line 2, and 
     insert a period.
                                                                    ____


                           Amendment No. 2614

       On page 53, strike lines 1 through 8, and insert the 
     following:
       ``(A) In general.--If the Secretary determines that a State 
     has failed to satisfy the minimum participation rates 
     specified in section 404(a) for a fiscal year, the Secretary 
     shall reduce the amount of the grant that would (in the 
     absence of this section) be payable to the State under 
     section 403 for the immediately succeeding fiscal year by--
       ``(i) in the first year in which the State fails to satisfy 
     such rates, 5 percent; and
       ``(ii) in subsequent years in which the State fails to 
     satisfy such rates, the percent reduction determined under 
     this subparagraph (if any) in the preceding year, increased 
     by 5 percent.
                                 ______


            GRAMM (AND FAIRCLOTH) AMENDMENTS NOS. 2615-2617

  Mr. SANTORUM (for Mr. Gramm, for himself and Mr. Faircloth) proposed 

[[Page S 13060]]
  three amendments to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

                           Amendment No. 2615

       On page 792, strike lines 1 through 22 and insert the 
     following:

     SEC. 1202. REDUCTIONS IN FEDERAL BUREAUCRACY.

       (a) In General.--The Secretary of Health and Human Services 
     and the Secretary of Labor shall reduce the Federal workforce 
     within the Department of Health and Human Services and the 
     Department of Labor, respectively, by an amount equal to the 
     sum of--
       (1) 75 percent of the full-time equivalent positions at 
     each such Department that relate to any direct spending 
     program, or any program funded through discretionary 
     spending, that has been converted into a block grant program 
     under this Act and the amendments made by this Act; and
       (2) an amount equal to 75 percent of that portion of the 
     total full-time equivalent departmental management positions 
     at each such Department that bears the same relationship to 
     the amount appropriated for the programs referred to in 
     paragraph (1) as such amount relates to the total amount 
     appropriated for use by each such Department.
       (b) Reductions in the Department of Health and Human 
     Services.--Notwithstanding any other provision of this Act, 
     the Secretary of Health and Human Services shall take such 
     actions as may be necessary, including reductions in force 
     actions, consistent with sections 3502 and 3595 of title 5, 
     United States Code, to reduce the full-time equivalent 
     positions within the Department of Health and Human 
     Services--
       (1) by 245 full-time equivalent positions related to the 
     program converted into a block grant under the amendment made 
     by section 101(b); and
       (2) by 60 full-time equivalent managerial positions in the 
     Department.
       (c) Reductions in the Department of Labor.--Notwithstanding 
     any other provision of this Act, the Secretary of Labor shall 
     take such actions as may be necessary, including reductions 
     in force actions, consistent with sections 3502 and 3595 of 
     title 5, United States Code, to reduce the full-time 
     equivalent positions within the Department of Labor--
       (1) by 675 full-time equivalent positions related to the 
     programs converted into a block grant under titles VII and 
     VIII; and
       (2) by 156 full-time equivalent managerial positions in the 
     Department.
                                                                    ____

                           Amendment No. 2616

       On page 42, between lines 21 and 22, insert the following:
       ``(f) Provisions Relating to Paternity Establishment.--
       ``(1) Paternity not established.--If a State provides cash 
     benefits to families from grant funds received by the State 
     under section 403, the State shall provide that if a family 
     applying for such benefits includes a child who has not 
     attained age 18 and who was born on or after January 1, 1996, 
     with respect to whom paternity has not been established, such 
     benefits shall not be available for--
       ``(A) such child (until the child attains age 18); and
       ``(B) the parent or caretaker relative of such child if the 
     parent or caretaker relative of such child is not the parent 
     or caretaker relative of another child for whom benefits are 
     available.
       ``(2) Exceptions.--Notwithstanding paragraph (1)--
       ``(A) the State may use grant funds received by the State 
     under section 403 to provide cash benefits to a minor child 
     who is up to 6 months of age for whom paternity has not been 
     established if the parent or caretaker relative of the child 
     provides the name, address, and such other identifying 
     information as the State may require of an individual who may 
     be the father of the child; and
       ``(B) the State may exempt up to 25 percent of all families 
     in the population described in paragraph (1) applying for 
     cash benefits from grant funds received by the State under 
     section 403 which include a child who was born on or after 
     January 1, 1996, and with respect to whom paternity has not 
     been established, from the reduction imposed under paragraph 
     (1).
                                                                    ____


                           Amendment No. 2617

       At the appropriate place, insert the following:

     SEC.   . RESTRICTIONS ON TAXPAYER FINANCED LEGAL CHALLENGES.

       (a) In General.--No legal aid organization or other entity 
     that provides legal services and which receives Federal funds 
     or IOLTA funds may challenge (or act as an attorney on behalf 
     of any party who seeks to challenge) in any legal 
     proceeding--
       (1) the legal validity--
       (A) under the United States Constitution--
       (i) of this Act or any regulations promulgated under this 
     Act; and
       (ii) of any law or regulation enacted or promulgated by a 
     State pursuant to this Act;
       (B) under this Act or any regulation adopted under this Act 
     of any State law or regulation; and
       (C) under any State Constitution of any law or regulation 
     enacted or promulgated by a State pursuant to this Act; and
       (2) the conflict--
       (A) of this Act or any regulations promulgated under this 
     Act with any other law or regulation of the United States; 
     and
       (B) of any law or regulation enacted or promulgated by a 
     State pursuant to this Act with any law or regulation of the 
     United States.
       (b) IOLTA Funds Defined.--For purposes of this section, the 
     term ``IOLTA funds'' means interest on lawyers trust account 
     funds that--
       (1) are generated when attorneys are required by State 
     court or State bar rules to deposit otherwise noninterest-
     bearing client funds into an interest-bearing account while 
     awaiting the outcome of a legal proceeding; and
       (2) are pooled and distributed by a subdivision of a State 
     bar association or the State court system to organizations 
     selected by the State courts administration.
       (c) Legal Proceeding Defined.--For purposes of this 
     section, the term ``legal proceeding'' includes--
       (1) a proceeding--
       (A) in a court of the United States;
       (B) in a court of a State; and
       (C) in an administrative hearing in a Federal or State 
     agency; and
       (2) any activities related to the commencement of a 
     proceeding described in subparagraph (A).
                                 ______


                      MOYNIHAN AMENDMENT NO. 2618

  Mr. MOYNIHAN proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page   , strike title XII and insert the following new 
     title:

        ``TITLE XII--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

     ``SEC. 1201. REDUCTIONS.

       ``(a) Definitions.--As used in this section:
       ``(1) Appropriate effective date.--The term `appropriate 
     effective date', used with respect to a department referred 
     to in this section, means the date on which all provisions of 
     this Act that the Department is required to carry out, and 
     amendments and repeals made by this Act to provisions of 
     Federal law that the Department is required to carry out, are 
     effective.
       ``(2) Covered activity.--The term `covered activity', used 
     with respect to a Department referred to in this section, 
     means an activity that the Department is required to carry 
     out under--
       ``(A) a provision of this Act; or
       ``(B) a provision of Federal law that is amended or 
     repealed by this Act.
       ``(b) Reports.--
       ``(1) Contents.--Not later than December 31, 1995, each 
     Secretary referred to in paragraph (2) shall prepare and 
     submit to the relevant committees described in paragraph (3) 
     a report containing--
       ``(A) the determinations described in subsection (c);
       ``(B) appropriate documentation in support of such 
     determinations; and
       ``(C) a description of the methodology used in making such 
     determinations.
       ``(2) Secretary.--The Secretaries referred to in this 
     paragraph are--
       ``(A) the Secretary of Agriculture;
       ``(B) the Secretary of Education;
       ``(C) the Secretary of Labor,
       ``(D) the Secretary of Housing and Urban Development, and
       ``(E) the Secretary of Health and Human Services.
       ``(3) Relevant committees.--The relevant Committees 
     described in this paragraph are the following:
       ``(A) With respect to each Secretary described in paragraph 
     (2), the Committee on Government Reform and Oversight of the 
     House of Representatives and the Committee on Governmental 
     Affairs of the Senate.
       ``(B) With respect to the Secretary of Agriculture, the 
     Committee on Agriculture and the Committee on Economic and 
     Educational Opportunities of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       ``(C) With respect to the Secretary of Education, the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate.
       ``(D) With respect to the Secretary of Labor, the Committee 
     on Economic and Educational Opportunities of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate.
       ``(E) With respect to the Secretary of Housing and Urban 
     Development, the Committee on Banking and Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate.
       ``(F) With respect to the Secretary of Health and Human 
     Services, the Committee on Economic and Educational 
     Opportunities of the House of Representatives, the Committee 
     on Labor and Human Resources of the Senate, the Committee on 
     Ways and Means of the House of Representatives, and the 
     Committee on Finance of the Senate.
       ``(4) Report on changes.--Not later than December 31, 1996, 
     and each December 31 thereafter, each Secretary referred to 
     in paragraph (2) shall prepare and submit to the
      relevant Committees described in paragraph (3), a report 
     concerning any changes with respect to the determinations 
     made under subsection (c) for the year in which the report 
     is being submitted.
       ``(c) Determinations.--Not later than December 31, 1995, 
     each Secretary referred to in subsection (b)(2) shall 
     determine--

[[Page S 13061]]

       ``(1) the number of full-time equivalent positions required 
     by the Department (or the Federal Partnership established 
     under section 771) headed by such Secretary to carry out the 
     covered activities of the Department (or Federal 
     Partnership), as of the day before the date of enactment of 
     this Act;
       ``(2) the number of such positions required by the 
     Department (or Federal Partnership) to carry out the 
     activities, as of the appropriate effective date for the 
     Department (or Federal Partnership); and
       ``(3) the difference obtained by subtracting the number 
     referred to in paragraph (2) from the number referred to in 
     paragraph (1).
       ``(d) Actions.--Not later than 30 days after the 
     appropriate effective date for the Department involved, each 
     Secretary referred to in subsection (b)(2) shall take such 
     actions as may be necessary, including reduction in force 
     actions, consistent with sections 3502 and 3595 of title 5, 
     United States Code, to reduce the number of positions of 
     personnel of the Department by at least the difference 
     referred to in subsection (c)(3).
       ``(e) Consistency.--
       ``(1) Eduation.--The Secretary of Education shall carry out 
     this section in a manner that enables the Secretary to meet 
     the requirements of this section and section 776(1)(2).
       ``(2) Labor.--The Secretary of Labor shall carry out this 
     section in a manner that enables the Secretary to meet the 
     requirements of this section and section 776(1)(2).
       ``(f) Calculation.--In determining, under subsection (c), 
     the number of full-time equivalent positions required by a 
     Department to carry out a covered activity, a Secretary 
     referred to in subsection (b)(2), shall include the number of 
     such positions occupied by personnel carrying out program 
     functions or other functions (including budgetary, 
     legislative, administrative, planning, evaluation, and legal 
     functions) related to the activity.
       ``(g) General Accounting Office Report.--Not later than 
     July 1, 1996, the Comptroller General of the United States 
     shall prepare and submit to the committees described in 
     subsection (b)(3), a report concerning the determinations 
     made by each Secretary under subsection (c). Such report 
     shall contain an analysis of the determinations made by each 
     Secretary under subsection (c) and a determination as to 
     whether further reductions in full-time equivalent positions 
     are appropriate.''.
                                 ______


                   KENNEDY AMENDMENTS NOS. 2619-2631

  Mr. MOYNIHAN (for Mr. Kennedy) proposed 13 amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2619

       On page 289, line 5, strike the period and insert ``, but 
     in no event shall such period extend beyond 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.''
                                                                    ____


                           Amendment No. 2620

       On page 292, strike lines 5 through lines 11 and insert the 
     following:
       Nutrition Act of 1966;
       (E) public health assistance for immunizations with respect 
     to immunizable diseases and for testing and treatment for 
     communicable diseases if the Secretary of Health and Human 
     Services determines that such testing and treatment is 
     necessary; and
       (F) benefits or services which serve a compelling 
     humanitarian or compelling public interest as specified by 
     the Attorney General in consultation with appropriate Federal 
     agencies and departments.
                                                                    ____


                           Amendment No. 2621

       On pages 77 through 83, strike sec. 102 and sec. 103.
                                                                    ____

                            Amendment No. --

       On page 159, strike lines 1 through 5.

       On page 792, after line 22, add the following new title:
                TITLE ____--CORPORATE WELFARE REDUCTION

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Corporate Welfare 
     Reduction Act of 1995''.

     SEC. ____02. FOREIGN OIL AND GAS INCOME.

       (a) Special Rules for Foreign Tax Credit With Respect to 
     Foreign Oil and Gas Income.--
       (1) Certain taxes not creditable.--
       (A) In general.--Subsection (a) of section 907 of the 
     Internal Revenue Code of 1986 (relating to reduction in 
     amount allowed as foreign tax under section 901) is amended 
     to read as follows:
       ``(a) Certain Taxes Not Creditable.--
       ``(1) In general.--For purposes of this subtitle, the term 
     `income, war profits, and excess profits taxes' shall not 
     include--
       ``(A) any taxes which are paid or accrued to any foreign 
     country with respect to foreign oil and gas income and which 
     are not imposed under a generally applicable income tax law 
     of such country, and
       ``(B) any taxes (not described in subparagraph (A)) which 
     are paid or accrued to any foreign country with respect to 
     foreign oil and gas income to the extent that the foreign law 
     imposing such amount of tax is structured, or in fact 
     operates, so that the amount of tax imposed with respect to 
     foreign oil and gas income will generally be materially 
     greater, over a reasonable period of time, than the amount 
     generally imposed on income that is not foreign oil and gas 
     income.

     In computing the amount not treated as tax under subparagraph 
     (B), such amount shall be treated as a deduction under the 
     foreign law.
       ``(2) Foreign oil and gas income.--For purposes of this 
     paragraph, the term `foreign oil and gas income' means the 
     amount of foreign oil and gas extraction income and foreign 
     oil related income.
       ``(3) Generally applicable income tax law.--For purposes of 
     this paragraph, the term `generally applicable income tax 
     law' means any law of a foreign country imposing an income 
     tax if such tax generally applies to all income from sources 
     within such foreign country--
       ``(A) without regard to the residence or nationality of the 
     person earning such income, and
       ``(B) in the case of any income earned by a corporation, 
     partnership, or other entity, without regard to--
       ``(i) where such corporation, partnership, or other entity 
     is organized, and
       ``(ii) the residence or nationality of the persons owning 
     interests in such corporation, partnership, or entity.''
       (B) Conforming amendment.--Section 907 of such Code is 
     amended by striking subsections (b), (c)(3), (c)(4), (c)(5), 
     and (f).
       (2) Separate baskets for foreign oil and gas extraction 
     income and foreign oil related income.--
       (A) In general.--Paragraph (1) of section 904(d) of such 
     Code (relating to separate application of section with 
     respect to certain categories of income) is amended by 
     striking ``and'' at the end of subparagraph (H), by 
     redesignating subparagraph (I) as subparagraph (K) and by 
     inserting after subparagraph (H) the following new 
     subparagraphs:
       ``(I) foreign oil and gas extraction income,
       ``(J) foreign oil related income, and''.
       (B) Definitions.--Paragraph (2) of section 904(d) of such 
     Code is amended by redesignating subparagraphs (H) and (I) as 
     subparagraphs (J) and (K), respectively, and by inserting 
     after subparagraph (G) the following new subparagraphs:
       ``(H) Foreign oil and gas extraction income.--The term 
     `foreign oil and gas extraction income' has the meaning given 
     such term by section 907(c)(1). Such term shall not include 
     any dividend from a noncontrolled section 902 corporation.
       ``(I) Foreign oil related income.--The term `foreign oil 
     related income' has the meaning given such term by section 
     907(c)(2). Such term shall not include any dividend from a 
     noncontrolled section 902 corporation and any shipping 
     income.''
       (C) Conforming amendment.--Clause (i) of section 
     904(d)(3)(F) of such Code is amended by striking ``or (E)'' 
     and inserting ``(E), (I), or (J)''.
       (3) Effective date.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the amendments made by this subsection shall apply 
     to taxable years beginning after December 31, 1995.
       (B) Disallowance rule.--
       (i) Section 907(a) of such Code (as amended by paragraph 
     (1)) shall apply to taxes paid or accrued after December 31, 
     1995, in taxable years ending after such date.
       (ii) In determining the amount of taxes deemed to be paid 
     in a taxable year beginning after December 31, 1995, under 
     section 902 or 960 of such Code, section 907(a) of such Code 
     (as amended by paragraph (1)) shall apply to all taxes 
     whether paid or accrued before, on, or after December 31, 
     1995.
       (C) Loss rule.--Notwithstanding the amendments made by 
     paragraph (1)(B), section 907(c)(4) of such Code shall 
     continue to apply with respect to foreign oil and gas 
     extraction losses for taxable years beginning before January 
     1, 1996.
       (D) Transitional rules.--
       (i) Any taxes paid or accrued in a taxable year beginning 
     before January 1, 1996, with respect to income which was 
     described in subparagraph (I) of section 904(d)(1) of such 
     Code (as in effect on the day before the date of the 
     enactment of this Act) shall be treated as taxes paid or 
     accrued with respect to foreign oil and gas extraction income 
     or foreign oil related income (as the case may be) to the 
     extent such taxes were paid or accrued with respect to such 
     type of income.
       (ii) Any unused oil and gas extraction taxes which under 
     section 907(f) of such Code (as so in effect) would have been 
     allowed as a carryover to the taxpayer's first taxable year 
     beginning after December 31, 1995 (determined without regard 
     to the limitation of paragraph (2) of such section 907(f) for 
     such first taxable year), shall be allowed as carryovers 
     under section 904(c) of such Code in the same manner as if 
     they were unused taxes under section 904(c) with respect to 
     foreign oil and gas extraction income.
       (b) Elimination of Deferral for Foreign Oil and Gas 
     Extraction Income.--
       (1) General rule.--Paragraph (1) of section 954(g) of the 
     Internal Revenue Code of 1986 (defining foreign base company 
     oil related income) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign oil and gas income' means any 
     income of a kind which
      would be taken into account in determining the amount of--
       ``(A) foreign oil and gas extraction income (as defined in 
     section 907(c)(1)), or

[[Page S 13062]]

       ``(B) foreign oil related income (as defined in section 
     907(c)(2)).''
       (2) Conforming amendments.--
       (A) Subsections (a)(5), (b)(4), (b)(5), and (b)(8) of 
     section 954 of such Code are each amended by striking ``base 
     company oil related income'' each place it appears (including 
     in the heading of subsection (b)(8)) and inserting ``oil and 
     gas income''.
       (B) The subsection heading for subsection (g) of section 
     954 of such Code is amended by striking ``Foreign Base 
     Company Oil Related Income'' and inserting ``Foreign Oil and 
     Gas Income''.
       (C) Subparagraph (A) of section 954(g)(2) of such Code is 
     amended by striking ``foreign base company oil related 
     income'' and inserting ``foreign oil and gas income''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 1995, and to taxable years of 
     United States shareholders in which or with which such 
     taxable years of foreign corporations end.

     SEC. ____03. TRANSFER PRICING.

       (a) Authority of Secretary When Legal Limits on Transfer by 
     Taxpayer.--Section 482 of the Internal Revenue Code of 1986 
     (relating to allocation of income and deductions among 
     taxpayers) is amended by adding at the end the following: 
     ``The authority of the Secretary under this section shall not 
     be limited by any restriction (by any law or agreement) on 
     the ability of such interests, organizations, trades, or 
     businesses to transfer or receive money or other property.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. ____04. ELIMINATION OF EXCLUSION FOR CITIZENS OR 
                   RESIDENTS OF UNITED STATES LIVING ABROAD.

       Section 911 of the Internal Revenue Code of 1986 (relating 
     to citizens or residents of the United States living abroad) 
     is amended by redesignating subsection (f) as subsection (g) 
     and by inserting after subsection (e) the following new 
     subsection:
       ``(f) Termination.--This section shall not apply to any 
     taxable year beginning after December 31, 1995.''

     SEC. ____05. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 
                   10-PERCENT FOREIGN SHAREHOLDERS.

       (a) General Rule.--Subpart D of part II of subchapter N of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     miscellaneous provisions) is amended by adding at the end 
     thereof the following new section:

     ``SEC. 899. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 
                   10-PERCENT FOREIGN SHAREHOLDERS.

       ``(a) General Rule.--
       ``(1) Treatment as effectively connected with united states 
     trade or business.--For purposes of this title, if any 
     nonresident alien individual or foreign corporation is a 10-
     percent shareholder in any domestic corporation, any gain or 
     loss of such individual or foreign corporation from the 
     disposition of any stock in such domestic corporation shall 
     be taken into account--
       ``(A) in the case of a nonresident alien individual, under 
     section 871(b)(1), or
       ``(B) in the case of a foreign corporation, under section 
     882(a)(1),
     as if the taxpayer were engaged during the taxable year in a 
     trade or business within the United States through a 
     permanent establishment in the United States and as if such 
     gain or loss were effectively connected with such trade or 
     business and attributable to such permanent establishment. 
     Notwithstanding section 865, any such gain or loss shall be 
     treated as from sources in the United States.
       ``(2) 26-percent minimum tax on nonresident alien 
     individuals.--
       ``(A) In general.--In the case of any nonresident alien 
     individual, the amount determined under section 55(b)(1)(A) 
     shall not be less than 26 percent of the lesser of--
       ``(i) the individual's alternative minimum taxable income 
     (as defined in section 55(b)(2)) for the taxable year, or
       ``(ii) the individual's net taxable stock gain for the 
     taxable year.
       ``(B) Net taxable stock gain.--For purposes of subparagraph 
     (A), the term `net taxable stock gain' means the excess of--
       ``(i) the aggregate gains for the taxable year from 
     dispositions of stock in domestic corporations with respect 
     to which such individual is a 10-percent shareholder, over
       ``(ii) the aggregate of the losses for the taxable year 
     from dispositions of such stock.
       ``(C) Coordination with section 897(a)(2).--Section 
     897(a)(2)(A) shall not apply to any nonresident alien 
     individual for any taxable year for which such individual has 
     a net taxable stock gain, but the amount of such net taxable 
     stock gain shall be increased by the amount of such 
     individual's net United States real property gain (as defined 
     in section 897(a)(2)(B)) for such taxable year.
       ``(b) 10-Percent Shareholder.--
       ``(1) In general.--For purposes of this section, the term 
     `10-percent shareholder' means any person who at any time 
     during the shorter of--
       ``(A) the period beginning on January 1, 1995, and ending 
     on the date of the disposition, or
       ``(B) the 5-year period ending on the date of the 
     disposition,

     owned 10 percent or more (by vote or value) of the stock in 
     the domestic corporation.
       ``(2) Constructive ownership.--
       ``(A) In general.--Section 318(a) (relating to constructive 
     ownership of stock) shall apply for purposes of paragraph 
     (1).
       ``(B) Modifications.--For purposes of subparagraph (A)--
       ``(i) paragraph (2)(C) of section 318(a) shall be applied 
     by substituting `10 percent' for `50 percent', and
       ``(ii) paragraph (3)(C) of section 318(a) shall be 
     applied--

       ``(I) by substituting `10 percent' for `50 percent', and
       ``(II) in any case where such paragraph would not apply but 
     for subclause (I), by considering a corporation as owning the 
     stock (other than stock in such corporation) owned by or for 
     any shareholder of such corporation in that proportion which 
     the value of the stock which such shareholder owns in such 
     corporation bears to the value of all stock in such 
     corporation.

       ``(3) Treatment of stock held by certain partnerships.--
       ``(A) In general.--For purposes of this section, if--
       ``(i) a partnership is a 10-percent shareholder in any 
     domestic corporation, and
       ``(ii) 10 percent or more of the capital or profits 
     interests in such partnership is held (directly or 
     indirectly) by nonresident alien individuals or foreign 
     corporations,
     each partner in such partnership who is not otherwise a 10-
     percent shareholder in such corporation shall, with respect 
     to the stock in such corporation held by the partnership, be 
     treated as a 10-percent shareholder in such corporation.
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply with 
     respect to stock in a domestic corporation held by any 
     partnership if, at all times during the 5-year period ending 
     on the date of the disposition involved--
       ``(I) the aggregate bases of the stock and securities in 
     such domestic corporation held by such partnership were less 
     than 25 percent of the partnership's net adjusted asset cost, 
     and
       ``(II) the partnership did not own 50 percent or more (by 
     vote or value) of the stock in such domestic corporation.

     The Secretary may by regulations disregard any failure to 
     meet the requirements of subclause (I) where the partnership 
     normally met such requirements during such 5-year period.
       ``(ii) Net adjusted asset cost.--For purposes of clause 
     (i), the term `net adjusted asset cost' means--

       ``(I) the aggregate bases of all of the assets of the 
     partnership other than cash and cash items, reduced by
       ``(II) the portion of the liabilities of the partnership 
     not allocable (on a proportionate basis) to assets excluded 
     under subclause (I).

       ``(C) Exception not to apply to 50-percent partners.--
     Subparagraph (B) shall not apply in the case of any partner 
     owning (directly or indirectly) more than 50 percent of the 
     capital or profits interests in the partnership at any time 
     during the 5-year period ending on the date of the 
     disposition.
       ``(D) Special rules.--For purposes of subparagraphs (B) and 
     (C)--
       ``(i) Treatment of predecessors.--Any reference to a 
     partnership or corporation shall be treated as including a 
     reference to any predecessor thereof.
       ``(ii) Partnership not in existence.--If any partnership 
     was not in existence throughout the entire 5-year period 
     ending on the date of the disposition, only the portion of 
     such period during which the partnership (or any predecessor) 
     was in existence shall be taken into account.
       ``(E) Other pass-thru entities; tiered entities.--Rules 
     similar to the rules of the preceding provisions of this 
     paragraph shall also apply in the case of any pass-thru 
     entity other than a partnership and in the case of tiered 
     partnerships and other entities.
       ``(c) Coordination With Nonrecognition Provisions; Etc.--
       ``(1) Coordination with nonrecognition provisions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any nonrecognition provision shall apply for purposes of this 
     section to a transaction only in the case of--
       ``(i) an exchange of stock in a domestic corporation for 
     other property the sale of which would be subject to taxation 
     under this chapter, or
       ``(ii) a distribution with respect to which gain or loss 
     would not be recognized under section 336 if the sale of the 
     distributed property by the distributee would be subject to 
     tax under this chapter.
       ``(B) Regulations.--The Secretary shall prescribe 
     regulations (which are necessary or appropriate to prevent 
     the avoidance of Federal income taxes) providing--
       ``(i) the extent to which nonrecognition provisions shall, 
     and shall not, apply for purposes of this section, and
       ``(ii) the extent to which--

       ``(I) transfers of property in a reorganization, and
       ``(II) changes in interests in, or distributions from, a 
     partnership, trust, or estate,

     shall be treated as sales of property at fair market value.
       ``(C) Nonrecognition provision.--For purposes of this 
     paragraph, the term `nonrecognition provision' means any 
     provision of this title for not recognizing gain or loss.
       ``(2) Certain other rules made applicable.--For purposes of 
     this section, rules similar to the rules of subsections (g) 
     and (j) of section 897 shall apply.
       ``(d) Certain Interest Treated as Stock.--For purposes of 
     this section-- 

[[Page S 13063]]

       ``(1) any option or other right to acquire stock in a 
     domestic corporation,
       ``(2) the conversion feature of any debt instrument issued 
     by a domestic corporation, and
       ``(3) to the extent provided in regulations, any other 
     interest in a domestic corporation other than an interest 
     solely as creditor,

     shall be treated as stock in such corporation.
       ``(e) Treatment of Certain Gain as a Dividend.--In the case 
     of any gain which would be subject to tax by reason of this 
     section but for a treaty and which results from any 
     distribution in liquidation or redemption, for purposes of 
     this subtitle, such gain shall be treated as a dividend to 
     the extent of the earnings and profits of the domestic 
     corporation attributable to the stock. Rules similar to the 
     rules of section 1248(c) (determined without regard to 
     paragraph (2)(D) thereof) shall apply for purposes of the 
     preceding sentence.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including--
       ``(1) regulations coordinating the provisions of this 
     section with the provisions of section 897, and
       ``(2) regulations aggregating stock held by a group of 
     persons acting together.''
       (b) Withholding of Tax.--Subchapter A of chapter 3 of such 
     Code is amended by adding at the end the following new 
     section:

     ``SEC. 1447. WITHHOLDING OF TAX ON CERTAIN STOCK 
                   DISPOSITIONS.

       ``(a) General Rule.--Except as otherwise provided in this 
     section, in the case of any disposition of stock in a 
     domestic corporation by a foreign person who is a 10-percent 
     shareholder in such corporation, the withholding agent shall 
     deduct and withhold a tax equal to 10 percent of the amount 
     realized on the disposition.
       ``(b) Exceptions.--
       ``(1) Stock which is not regularly traded.--In the case of 
     a disposition of stock which is not regularly traded, a 
     withholding agent shall not be required to deduct and 
     withhold any amount under subsection (a) if--
       ``(A) the transferor furnishes to such withholding agent an 
     affidavit by such transferor stating, under penalty of 
     perjury, that section 899 does not apply to such disposition 
     because--
       ``(i) the transferor is not a foreign person, or
       ``(ii) the transferor is not a 10-percent shareholder, and
       ``(B) such withholding agent does not know (or have reason 
     to know) that such affidavit is not correct.
       ``(2) Stock which is regularly traded.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a withholding agent shall not be required to deduct and 
     withhold any amount under subsection (a) with respect to any 
     disposition of regularly traded stock if such withholding 
     agent does not know (or have reason to know) that section 899 
     applies to such disposition.
       ``(B) Special rule where substantial disposition.--If--
       ``(i) there is a disposition of regularly traded stock in a 
     corporation, and
       ``(ii) the amount of stock involved in such disposition 
     constitutes 1 percent or more (by vote or value) of the stock 
     in such corporation,

     subparagraph (A) shall not apply but paragraph (1) shall 
     apply as if the disposition involved stock which was not 
     regularly traded.
       ``(C) Notification by foreign person.--If section 899 
     applies to any disposition by a foreign person of regularly 
     traded stock, such foreign person shall notify the 
     withholding agent that section 899 applies to such 
     disposition.
       ``(3) Nonrecognition transactions.--A withholding agent 
     shall not be required to deduct and withhold any amount under 
     subsection (a) in any case where gain or loss is not 
     recognized by reason of section 899(c) (or the regulations 
     prescribed under such section).
       ``(c) Special Rule Where No Withholding.--If--
       ``(1) there is no amount deducted and withheld under this 
     section with respect to any disposition to which section 899 
     applies, and
       ``(2) the foreign person does not pay the tax imposed by 
     this subtitle to the extent attributable to such disposition 
     on the date prescribed therefor,

     for purposes of determining the amount of such tax, the 
     foreign person's basis in the stock disposed of shall be 
     treated as zero or such other amount as the Secretary may 
     determine (and, for purposes of section 6501, the 
     underpayment of such tax shall be treated as due to a willful 
     attempt to evade such tax).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Withholding agent.--The term `withholding agent' 
     means--
       ``(A) the last United States person to have the control, 
     receipt, custody, disposal, or payment of the amount realized 
     on the disposition, or
       ``(B) if there is no such United States person, the person 
     prescribed in regulations.
       ``(2) Foreign person.--The term `foreign person' means any 
     person other than a United States person.
       ``(3) Regularly traded stock.--The term `regularly traded 
     stock' means any stock of a class which is regularly traded 
     on an established securities market.
       ``(4) Authority to prescribe reduced amount.--At the 
     request of the person making the disposition or the 
     withholding agent, the Secretary may prescribe a reduced 
     amount to be withheld under this section if the Secretary 
     determines that to substitute such reduced amount will not 
     jeopardize the collection of the tax imposed by section 
     871(b)(1) or 882(a)(1).
       ``(5) Other terms.--Except as provided in this section, 
     terms used in this section shall have the same respective 
     meanings as when used in section 899.
       ``(6) Certain rules made applicable.--Rules similar to the 
     rules of section 1445(e) shall apply for purposes of this 
     section.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including regulations coordinating the 
     provisions of this section with the provisions of sections 
     1445 and 1446.''
       (c) Exception From Branch Profits Tax.--Subparagraph (C) of 
     section 884(d)(2) of such Code is amended to read as follows:
       ``(C) gain treated as effectively connected with the 
     conduct of a trade or business within the United States 
     under--
       ``(i) section 897 in the case of the disposition of a 
     United States real property interest described in section 
     897(c)(1)(A)(ii), or
       ``(ii) section 899,''.
       (d) Reports With Respect to Certain Distributions.--
     Paragraph (2) of section 6038B(a) of such Code (relating to 
     notice of certain transfers to foreign person) is amended by 
     striking ``section 336'' and inserting ``section 302, 331, or 
     336''.
       (e) Clerical Amendments.--
       (1) The table of sections for subpart D of part II of 
     subchapter N of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 899. Dispositions of stock in domestic corporations by 10-
              percent foreign shareholders.''
       (2) The table of sections for subchapter A of chapter 3 of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 1447. Withholding of tax on certain stock dispositions.''
       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to dispositions after the date of the enactment of this Act, 
     except that section 1447 of such Code (as added by this 
     section) shall not apply to any disposition before the date 6 
     months after the date of the enactment of this Act.
       (2) Coordination with treaties.--
       (A) In general.--Sections 899 (other than subsection (e) 
     thereof) and 1447 of such Code (as added by this section) 
     shall not apply to any disposition if such disposition is by 
     a qualified resident of a foreign country and the application 
     of such sections to such disposition would be contrary to any 
     treaty between the United States and such foreign country 
     which is in effect on the date of the enactment of this Act 
     and at the time of such disposition.
       (B) Qualified resident.--For purposes of subparagraph (A), 
     the term ``qualified resident'' means any resident of the 
     foreign country entitled to the benefits of the treaty 
     referred to in subparagraph (A); except that such term shall 
     not include a corporation unless such corporation is a 
     qualified resident of such country (as defined in section 
     884(e)(4) of such Code).

     SEC. ____06. PORTFOLIO DEBT.

       (a) In General.--Section 871(h)(3) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(3) Portfolio interest to include only interest on 
     government obligations.--The term `portfolio interest' shall 
     include only interest paid on an obligation issued by a 
     governmental entity.''
       (b) Conforming Amendments.--
       (1) Section 881(c)(3) of such Code is amended--
       (A) in subparagraph (A), by adding ``or'' at the end, and
       (B) by striking subparagraph (B) and redesignating 
     subparagraph (C) as subparagraph (B).
       (2) Section 881(c)(4) of such Code is amended--
       (A) by striking ``section 871(h)(4)'' and inserting 
     ``section 871(h)(3) or (4)'', and
       (B) in the heading, by inserting ``interest on non-
     government obligations or'' after ``include''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to interest received after December 31, 1995, 
     with respect to obligations issued after such date.

     SEC. ____07. SOURCE OF INCOME FROM CERTAIN SALES OF INVENTORY 
                   PROPERTY.

       (a) General Rule.--Subsection (b) of section 865 of the 
     Internal Revenue Code of 1986 (relating to exception for 
     inventory property) is amended to read as follows:
       ``(b) Inventory Property.--
       ``(1) Income attributable to production activity.--In the 
     case of income from the sale of inventory property produced 
     (in whole or in part) by the taxpayer--
       ``(A) a portion (determined under regulations) of such 
     income shall be allocated to production activity (and sourced 
     in the United States or outside the United States depending 
     on where such activity occurs), and
       ``(B) the remaining portion of such income shall be sourced 
     under the other provisions of this section.


[[Page S 13064]]

     The regulations prescribed under subparagraph (A) shall 
     provide that at least 50 percent of such income shall be 
     allocated to production activities.
       ``(2) Sales income.--
       ``(A) United states residents.--Income from the sale of 
     inventory property by a United States resident shall be 
     sourced outside the United States if--
       ``(i) the property is sold for use, consumption, or 
     disposition outside the United States and an office or 
     another fixed place of business of the taxpayer outside the 
     United States participated materially in the sale, and
       ``(ii) such sale is not (directly or indirectly) to an 
     affiliate of the taxpayer.
       ``(B) Nonresident.--Income from the sale of inventory 
     property by a nonresident shall be sourced in the United 
     States if--
       ``(i) the taxpayer has an office or other fixed place of 
     business in the United States, and
       ``(ii) such sale is through such office or other fixed 
     place of business.
     This subparagraph shall not apply if the requirements of 
     clauses (i) and (ii) of subparagraph (A) are met with respect 
     to such sale.
       ``(3) Coordination with treaties.--For purposes of 
     paragraph (2)(A)(i), a United States resident shall not be 
     treated as having an office or fixed place of business in a 
     foreign country if a treaty prevents such country from 
     imposing an income tax on the income.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to income from sales occurring after December 31, 
     1995.

     SEC. ____08. ENHANCEMENT OF BENEFITS FOR FOREIGN SALES 
                   CORPORATIONS.

       (a) In General.--Subsection (a) of section 923 of the 
     Internal Revenue Code of 1986 is amended--
       (1) in paragraph (2), by striking ``32 percent'' and 
     inserting ``34 percent'', and
       (2) in paragraph (3), by striking ``\16/23\'' and inserting 
     ``\17/23\''.
       (b) Special Rules Relating to Corporate Preference Items.--
     Paragraph (4) of section 291(a) of such Code is amended--
       (1) in subparagraph (A), by striking `` `30 percent' for 
     `32 percent' '' and inserting `` `32 percent' for `34 
     percent' '', and
       (2) in subparagraph (B), by striking `` `\15/23\' for `\16/
     23\' '' and inserting `` `\16/23\' for `\17/23\' ''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
                           Amendment No. 2623

       On page 40, between lines 16 and 17, insert the following:
       ``(C) Waiver of limitation.--The Secretary, upon a 
     demonstration by a State that an extraordinary number of 
     families require an exemption from the application of 
     paragraph (1) due to disability, domestic violence, 
     homelessness, or the need to be in the home to care for a 
     disabled child, may permit the State to provide exemptions in 
     excess of the 15 percent limitation described in subparagraph 
     (B) for a specified period of time.''.
                                                                    ____

       On page 40, between lines 16 and 17, insert the following:
       ``(4) Non-cash assistance for children.--Nothing in 
     paragraph (1) shall be construed as prohibiting a State from 
     using funds provided under section 403 to provide aid, in the 
     form of in-kind assistance, vouchers usable for particular 
     goods or services as specified by the State, or vendor 
     payments to individuals providing such goods or services, to 
     the minor children of a needy family.''.
                                                                    ____

                           Amendment No. 2625

       On page 641, between lines 11 and 12, insert the following:

     SEC. 426. DURATION OF SUPPORT.

       Section 466(a) (42 U.S.C. 666(a)), as amended by this Act, 
     is amended--
       (1) by inserting after paragraph (16) the following new 
     paragraph:
       ``(17) Procedures under which the State--
       ``(A) requires a continuing support obligation by the 
     noncustodial parent until at least the later of the date on 
     which a child for whom a support obligation is owed reaches 
     the age of 18, or graduates from or is no longer enrolled in 
     secondary school or its equivalent, unless a child marries, 
     joins the United States armed forces, or is otherwise 
     emancipated under State law;
       ``(B)(i) provides that courts or administrative agencies 
     with child support jurisdiction have the discretionary power, 
     until the date on which the child involved reaches the age of 
     22, pursuant to criteria established by the State, to order 
     child support, payable directly or indirectly (support may be 
     paid directly to a postsecondary or vocational school or 
     college) to a child, at least up to the age of 22 for a child 
     enrolled full-time in an accredited postsecondary or 
     vocational school or college and who is a student in good 
     standing; and
       ``(ii) may, without application of the rebuttable 
     presumption in section 467(b)(2), award support under this 
     subsection in amounts that, in whole or in part, reflect the 
     actual costs of post secondary education; and
       ``(C) provides for child support to continue beyond the 
     child's age of majority provided the child is disabled, 
     unable to be self-supportive, and the disability arose during 
     the child's minority.''; and
       (2) by adding at the end the following new sentence: 
     ``Nothing in paragraph (17) shall preclude a State from 
     imposing more extensive child support obligations or 
     obligations of longer duration.''.
                                                                    ____

       Section 781(b) is amended to read as follows:
       (b) Subsequent Repeals.--The following provisions are 
     repealed:
       (1) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (2) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (3) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (4) The Wagner-Peyser Act (29 U.S.C. et seq.).
       (5) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (6) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (7) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle 
     C of such title.
                                                                    ____

       In title VIII, add at the end the following:

               Subtitle D--Amendment to Trade Act of 1974

     SEC. 841. TRAINING AND OTHER EMPLOYMENT SERVICES FOR TRADE-
                   IMPACTED WORKERS

       Section 239(e) of the Trade Act of 1974 (19 U.S.C. 2311(e)) 
     is amended to read as follows:
       ``(e) Any agreement entered into under this section shall 
     provide that the services made available to adversely 
     affected workers under sections 235 and 236 shall be provided 
     through the statewide workforce development system 
     established by the State under subtitle B of the Workforce 
     Development Act of 1995 to provide such services to other 
     dislocated workers.''.
                                                                    ____

                           Amendment No. 2628

       Beginning on page 520, strike line 13 and all that follows 
     through page 529, line 2, and insert the following:
       (5) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (6) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (7) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle 
     C of such title.
       (c) Effective Dates.--
       (1) Immediate repeals.--The repeals made by subsection (a) 
     shall take effect on the date of enactment of this Act.
       (2) Subsequent repeals.--The repeals made by subsection (b) 
     shall take effect on July 1, 1998.

     SEC. 782. CONFORMING AMENDMENTS.

       (a) Immediate Repeals.--
       (1) References to section 204 of the immigration reform and 
     control act of 1986.--The table of contents for the 
     Immigration Reform and Control Act of 1986 is amended by 
     striking the item relating to section 204 of such Act.
       (2) References to title ii of public law 95-250.--Section 
     103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
       (A) by striking the second sentence of subsection (a); and
       (B) by striking the second sentence of subsection (b).
       (3) References to subtitle c of title vii of the stewart b. 
     mckinney homeless assistance act.--
       (A) Section 762(a) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11472(a)) is amended--
       (i) by striking ``each of the following programs'' and 
     inserting ``the emergency community services homeless grant 
     program established in section 751''; and
       (ii) by striking ``tribes:'' and all that follows and 
     inserting ``tribes.''.
       (B) The table of contents of such Act is amended by 
     striking the items relating to subtitle C of title VII of 
     such Act.
       (4) References to title 49, united states code.--
       (A) Sections 5313(b)(1) and 5314(a)(1) of title 49, United 
     States Code, are amended by striking ``5317, and 5322'' and 
     inserting ``and 5317''.
       (B) The table of contents for chapter 53 of title 49, 
     United States Code, is amended by striking the item relating 
     to section 5322.
       (b) Subsequent Repeals.--
       (1) References to the carl d. perkins vocational and 
     applied technology education act.--
       (A) Section 245A(h)(4)(C) of the Immigration and 
     Nationality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by 
     striking ``Vocational Education Act of 1963'' and inserting 
     ``Workforce Development Act of 1995''.
       (B) The Goals 2000: Educate America Act (20 U.S.C. 5801 et 
     seq.) is amended--
       (i) in section 306 (20 U.S.C. 5886)--

       (I) in subsection (c)(1)(A), by striking all beginning with 
     `` which process'' through ``Act'' and inserting ``which 
     process shall include coordination with the benchmarks 
     described in section 731(c)(2) of the Workforce Development 
     Act of 1995''; and
       (II) in subsection (l), by striking ``Carl D. Perkins 
     Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''; and

       (ii) in section 311(b) (20 U.S.C. 5891(b)), by striking 
     paragraph (6).
       (C) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) is amended--
       (i) in section 1114(b)(2)(C)(v) (20 U.S.C. 
     6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational 
     and Applied Technology Education Act'' and inserting 
     ``Workforce Development Act of 1995'';
       (ii) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
     striking ``Carl D. Perkins Vocational and Applied Technology 
     Education Act'' and inserting ``Workforce Development Act of 
     1995'';

[[Page S 13065]]

       (iii) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--

       (I) by striking subparagraph (C); and
       (II) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively; and

       (iv) in the matter preceding subparagraph (A) of section 
     14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''.
       (D) Section 533(c)(4)(A) of the Equity in Educational Land-
     Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
     striking ``(20 U.S.C. 2397h(3)'' and inserting ``, as such 
     section was in effect on the day preceding the date of 
     enactment of the Workforce Development Act of 1995''.
       (E) Section 563 of the Improving America's Schools Act of 
     1994 (20 U.S.C. 6301 note) is amended by striking ``the date 
     of enactment of an Act reauthorizing the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2301 et seq.)'' and inserting ``July 1, 1998''.
       (F) Section 135(c)(3)(B) of the Internal Revenue Code of 
     1986 (26 U.S.C. 135(c)(3)(B)) is amended--
       (i) by striking ``subparagraph (C) or (D) of section 521(3) 
     of the Carl D. Perkins Vocational Education Act'' and 
     inserting ``subparagraph (C) or (D) of section 703(2) of the 
     Workforce Development Act of 1995''; and
       (ii) by striking ``any State (as defined in section 521(27) 
     of such Act)'' and inserting ``any State or outlying area (as 
     the terms `State' and `outlying area' are defined in section 
     703 of such Act)''.
       (G) Section 101(a)(11)(A) of the Rehabilitation Act of 1973 
     (29 U.S.C. 721(a)(11)(A)) is amended by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act (20 
     U.S.C. 2301 et seq.)'' and inserting ``Workforce Development 
     Act of 1995''.
       (H) Section 214(c) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App. 214(c)) is amended by striking 
     ``Carl D. Perkins Vocational Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (I) Section 104 of the Vocational Education Amendments of 
     1968 (82 Stat. 1091) is amended by striking ``section 3 of 
     the Carl D. Perkins Vocational Education Act'' and inserting 
     ``the Workforce Development Act of 1995''.
       (2) References to the adult education act.--
       (A) Subsection (b) of section 402 of the Refugee Education 
     Assistance Act (8 U.S.C. 1522, note) is repealed.
       (B) Paragraph (20) of section 3 of the Library Services and 
     Construction Act (20 U.S.C. 351a(20)) is amended to read as 
     follows:
       ``(20) The term `educationally disadvantaged adult' means 
     an individual who--
       ``(A) is age 16 or older, or beyond the age of compulsory 
     school attendance under State law;
       ``(B) is not enrolled in secondary school;
       ``(C) demonstrates basic skills equivalent to or below that 
     of students at the fifth grade level; or
       ``(D) has been placed in the lowest or beginning level of 
     an adult education program when that program does not use 
     grade level equivalencies as a measure of students' basic 
     skills.''.
       (C)(i) Section 1202(c)(1) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6362(c)(1)) is amended by 
     striking ``Adult Education Act'' and inserting ``Workforce 
     Development Act of 1995''.
       (ii) Section 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B)) 
     is amended by striking ``Adult Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (iii) Section 1206(a)(1)(A) of such Act (20 U.S.C. 
     6366(a)(1)(A)) is amended by striking ``an adult basic 
     education program under the Adult Education Act'' and 
     inserting ``adult education activities under the Workforce 
     Development Act of 1995''.
       (iv) Section 3113(1) of such Act (20 U.S.C. 6813(1)) is 
     amended by striking ``section 312 of the Adult Education 
     Act'' and inserting ``section 703 of the Workforce 
     Development Act of 1995''.
       (v) Section 9161(2) of such Act (20 U.S.C. 7881(2)) is 
     amended by striking ``section 312(2) of the Adult Education 
     Act'' and inserting ``section 703 of the Workforce 
     Development Act of 1995''.
       (D) Section 203(b)(8) of the Older Americans Act (42 U.S.C. 
     3013(b)(8)) is amended by striking ``Adult Education Act'' 
     and inserting ``Workforce Development Act of 1995''.
       (3) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Federal Partnership 
     shall prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by section 781(b).
       (4) Submission to congress.--Not later than March 31, 1997, 
     the Federal Partnership shall submit the recommended 
     legislation referred to under paragraph (3).
              Subtitle G--Amendments to Wagner-Peyser Act

     SEC. 791. GENERAL PROGRAM REQUIREMENTS.

       Section 1 of the Wagner-Peyser Act (29 U.S.C. 49) is 
     amended by striking ``national system'' and all that follows 
     and inserting ``national system of employment service offices 
     open to the public, there shall be in the Federal Partnership 
     a United States Employment Service.''.

     SEC. 792. DEFINITIONS.

       (a) In General.--Section 2 of the Wagner-Peyser Act (29 
     U.S.C. 49a) is amended--
       (1) by striking paragraphs (1), (2), (3), and (4);
       (2) by inserting before paragraph (5) the following 
     paragraphs:
       ``(1) the term `Federal Partnership' has the meaning given 
     the term in section 703 of the Workforce Development Act of 
     1995;
       ``(2) the term `one-stop career center system' means a 
     means of providing one-stop delivery of core services 
     described in section 716(a)(2)(B) of the Workforce 
     Development Act of 1995;
       ``(3) the term `Secretary', used without further 
     modification, means the Secretary of Labor and the Secretary 
     of Education, acting jointly; and''; and
       (3) by redesignating paragraph (5) as paragraph (4).
       (b) Conforming Amendments.--
       (1) Secretary.--Sections 3(b), 6(b)(1), and 7(d) of the 
     Wagner-Peyser Act (29 U.S.C. 49b(b), 49e(b)(1), and 49f(d)) 
     are amended by striking ``Secretary of Labor'' and inserting 
     ``Secretary''.
       (2) Director.--Section 12 of the Wagner-Peyser Act (29 
     U.S.C. 49k) is amended by striking ``The Director, with the 
     approval of the Secretary of Labor,'' and inserting ``The 
     Secretary''.

     SEC. 793. FUNCTIONS.

       (a) In General.--Section 3 of the Wagner-Peyser Act (29 
     U.S.C. 49b) is amended--
       (1) by striking subsection (a) and inserting the following 
     subsection:
       ``(a) The Federal Partnership shall--
       ``(1) assist in the coordination and development of a 
     nationwide system of labor exchange services for the general 
     public, provided through the one-stop career center systems 
     of the States;
       ``(2) assist in the development of continuous improvement 
     models for such nationwide system that ensure private sector 
     satisfaction with the system and meet the demands of 
     jobseekers relating to the system; and
       ``(3) ensure the continuation of services for individuals 
     receiving unemployment compensation that were provided, under 
     a provision specified in section 781 of the Workforce 
     Development Act of 1995, on the day before the date of 
     enactment of such Act.''; and
       (2) by adding at the end the following new subsection:
       ``(c) Notwithstanding any Act referred to in section 771(b) 
     of the Workforce Development Act of 1995, the Secretary of 
     Labor and the Secretary of Education, acting jointly, in 
     accordance with the plan approved or determinations made by 
     the President under section 776(c) of such Act, shall provide 
     for, and exercise final authority over, the effective and 
     efficient administration of this Act and the officers and 
     employees of the United States Employment Service.''.
       (b) Conforming Amendments.--Section 508(b) of the 
     Unemployment Compensation Amendments of 1976 (42 U.S.C. 
     603a(b)) is amended--
       (1) by striking ``the third sentence of section 3(a)'' and 
     inserting ``section 3(b)''; and
       (2) by striking ``49b(a)'' and inserting ``49b(b))''.

     SEC. 794. DESIGNATION OF STATE AGENCIES.

       Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is 
     amended--
       (1) by striking ``a State shall, through its legislature,'' 
     and inserting ``a Governor shall''; and
       (2) by striking ``the United States Employment Service'' 
     and inserting ``the Federal Partnership''.

     SEC. 795. APPROPRIATIONS.

       Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is 
     amended by striking paragraph (3).

     SEC. 796. ALLOTMENTS.

       Section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) is 
     amended--
       (1) in subsection (a), by striking ``section 5'' and 
     inserting ``section 5, or made available under section 
     901(c)(1)(A) of the Social Security Act (42 U.S.C. 
     1101(c)(1)(A)),''; and
       (2) in subsection (b)(1), by striking ``section 5 of this 
     Act'' and inserting ``section 5, or made available under 
     section 901(c)(1)(A) of the Social Security Act,''.

     SEC. 797. DISPOSITION OF ALLOTTED FUNDS.

       Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is 
     amended--
       (1) in subsection (b)(2), by striking ``and the appropriate 
     private industry council and chief elected official or 
     officials'' and inserting ``, and the appropriate local 
     partnership established under section 728(a) of the Workforce 
     Development Act of 1995 (or, where established, the 
     appropriate local workforce development board described in 
     section 728(b) of such Act)'';
       (2) in subsection (c)(2), by striking ``any program under'' 
     and all that follows and inserting ``any activity carried out 
     under the Workforce Development Act of 1995.'';
       (3) in subsection (d)--
       (A) by striking ``United States Employment Service'' and 
     inserting ``Federal Partnership''; and
       (B) by striking ``administrative entity under the Job 
     Training Partnership Act'' and inserting ``local entity under 
     the Workforce Development Act of 1995''; and
       (4) by adding at the end the following subsection:
       ``(e) All job search, placement, recruitment, labor market 
     information, and other labor exchange services authorized 
     under subsection (a) shall be provided through the one-stop 
     career center system established by the State.''.

[[Page S 13066]]


     SEC. 798. STATE PLANS.

       Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is 
     amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Any State desiring to receive assistance under this 
     Act shall include in the portion of the State workforce 
     development plan described in section 714 of the Workforce 
     Development Act of 1995 relating to workforce employment 
     activities, detailed plans for carrying out this Act in such 
     State.'';
       (2) by striking subsections (b), (c), and (e);
       (3) in subsection (d), by striking ``United States 
     Employment Service'' and inserting ``Federal Partnership''; 
     and
       (4) by redesignating subsection (d) as subsection (b).

     SEC. 799. FEDERAL ADVISORY COUNCIL.

       Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is 
     repealed.
                           Amendment No. 2629

       Beginning on page 419, strike line 17 and all that follows 
     through page 424, line 4, and insert the following:

     SEC. 733. UNEMPLOYMENT TRUST FUND.

       (a) In General.--Section 901(c) of the Social Security Act 
     (42 U.S.C. 1101(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)(iii), by striking ``carrying into 
     effect section 4103'' and inserting ``carrying out the 
     activities described in sections 4103, 4103A, 4104, and 
     4104A''; and
       (B) in subparagraph (B), in the matter preceding clause 
     (i), by striking ``Department of Labor'' and inserting 
     ``Department of Labor or the Workforce Development 
     Partnership, as appropriate,''; and
       (2) in the first sentence of paragraph (4), by striking 
     ``the Department of Labor'' and inserting ``the Workforce 
     Development Partnership''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect July 1, 1998.
                                                                    ____


                           Amendment No. 2630
       Section 772(a)(4)(A) is amended to read as follows:
       (A) In general.--Notwithstanding any other provision of 
     this Act or any amendment made by this Act, any provision of 
     this Act or any amendment made by this Act that would 
     otherwise grant the National Board the authority to carry out 
     a function (as defined in section 776) shall be construed to 
     give the National Board the authority only to provide advice 
     to the Secretary of Labor and the Secretary of Education with 
     respect to the function, and not the authority to carry out 
     the function. The provision shall be deemed to grant the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, the authority to carry out the function.
                                                                    ____

                           Amendment No. 2631

       Beginning on page 337, strike line 4 and all that follows 
     through page 379, line 21, and insert the following:
       (a) Activities.--From the sum of the funds made available 
     to a State through an allotment received under section 712, 
     through funds received under section 6 of the Wagner-Peyser 
     Act (29 U.S.C. 49e), or through funds made available under 
     section 901(c)(1)(A)(ii) of the Social Security Act (42 
     U.S.C. 1101(c)(1)(A)(ii)) for a program year--
       (1) a portion equal to 25 percent of such sum (which 
     portion shall include the amount made available to the State 
     through funds received under section 6 of the Wagner-Peyser 
     Act or through funds made available under section 
     901(c)(1)(A)(ii) of the Social Security Act) shall be made 
     available for workforce employment activities, activities 
     carried out under the Wagner-Peyser Act (29 U.S.C. 49 et 
     seq.), or activities described in section 716(a)(10);
       (2) a portion equal to 25 percent of such sum shall be made 
     available for workforce education activities; and
       (3) a portion (referred to in this title as the ``flex 
     account'') equal to 50 percent of such sum shall be made 
     available for flexible workforce activities.
       (b) Recipients.--In making an allotment under section 712 
     to a State, the Secretary of Labor and the Secretary of 
     Education, acting jointly, shall make a payment--
       (1) to the Governor of the State for the portion described 
     in subsection (a)(1), and such part of the flex account as 
     the Governor may be eligible to receive, as determined under 
     the State plan of the State submitted under section 714; and
       (2) to the State educational agency of the State for the 
     portion described in subsection (a)(2), and such part of the 
     flex account as the State educational agency may be eligible 
     to receive, as determined under the State plan of the State 
     submitted under section 714.

     SEC. 714. STATE PLANS.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section 712, the Governor of the State shall 
     submit to the Federal Partnership, and obtain approval of, a 
     single comprehensive State workforce development plan 
     (referred to in this section as a ``State plan''), outlining 
     a 3-year strategy for the statewide system of the State.
       (b) Parts.--
       (1) In general.--The State plan shall contain 3 parts.
       (2) Strategic plan and flexible workforce activities.--The 
     first part of the State plan shall describe a strategic plan 
     for the statewide system, including the flexible workforce 
     activities, and, if appropriate, economic development 
     activities, that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the first part of the 
     State plan, using procedures that are consistent with the 
     procedures described in subsection (d).
       (3) Workforce employment activities.--The second part of 
     the State plan shall describe the workforce employment 
     activities that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the second part of the 
     State plan.
       (4) Workforce education activities.--The third part of the 
     State plan shall describe the workforce education activities 
     that are designed to meet the State goals and reach the State 
     benchmarks and are to be carried out with the allotment. The 
     State educational agency of the State shall develop the third 
     part of the State plan in consultation, where appropriate, 
     with the State postsecondary education agency and with 
     community colleges.
       (c) Contents of the Plan.--The State plan shall include--
       (1) with respect to the strategic plan for the statewide 
     system--
       (A) information describing how the State will identify the 
     current and future workforce development needs of the 
     industry sectors most important to the economic 
     competitiveness of the State;
       (B) information describing how the State will identify the 
     current and future workforce development needs of all 
     segments of the population of the State;
       (C) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level;
       (D) information describing how the State will coordinate 
     workforce development activities to meet the State goals and 
     reach the State benchmarks;
       (E) information describing the allocation within the State 
     of the funds made available through the flex account for the 
     State, and how the flexible workforce activities, including 
     school-to-work activities, to be carried out with such funds 
     will be carried out to meet the State goals and reach the 
     State benchmarks;
       (F) information identifying how the State will obtain the 
     active and continuous participation of business, industry, 
     and labor in the development and continuous improvement of 
     the statewide system;
       (G) information identifying how any funds that a State 
     receives under this subtitle will be leveraged with other 
     public and private resources to maximize the effectiveness of 
     such resources for all workforce development activities, and 
     expand the participation of business, industry, labor, and 
     individuals in the statewide system;
       (H) information identifying how the workforce development 
     activities to be carried out with funds received through the 
     allotment will be coordinated with programs carried out by 
     the Veterans' Employment and Training Service with funds 
     received under title 38, United States Code, in order to meet 
     the State goals and reach the State benchmarks related to 
     veterans;
       (I) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this title;
       (J) information describing the process the State will use 
     to independently evaluate and continuously improve the 
     performance of the statewide system, on a yearly basis, 
     including the development of specific performance indicators 
     to measure progress toward meeting the State goals;
       (K) an assurance that the funds made available under this 
     subtitle will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (L) information identifying the steps that the State will 
     take over the 3 years covered by the plan to establish common 
     data collection and reporting requirements for workforce 
     development activities and vocational rehabilitation program 
     activities;
       (M) with respect to economic development activities, 
     information--
       (i) describing the activities to be carried out with the 
     funds made available under this subtitle;
       (ii) describing how the activities will lead directly to 
     increased earnings of nonmanagerial employees in the State; 
     and
       (iii) describing whether the labor organization, if any, 
     representing the nonmanagerial employees supports the 
     activities;
       (N) the description referred to in subsection (d)(1); and
       (O)(i) information demonstrating the support of individuals 
     and entities described in subsection (d)(1) for the plan; or
       (ii) in a case in which the Governor is unable to obtain 
     the support of such individuals and entities as provided in 
     subsection (d)(2), the comments referred to in subsection 
     (d)(2)(B),
       (2) with respect to workforce employment activities, 
     information--
       (A)(i) identifying and designating substate areas, 
     including urban and rural areas, to which funds received 
     through the allotment will be distributed, which areas shall, 
     to the extent feasible, reflect local labor market areas; or

[[Page S 13067]]

       (ii) stating that the State will be treated as a substate 
     area for purposes of the application of this subtitle, if the 
     State receives an increase in an allotment under section 712 
     for a program year as a result of the application of section 
     712(c)(2); and
       (B) describing the basic features of one-stop delivery of 
     core services described in section 716(a)(2) in the State, 
     including information regarding--
       (i) the strategy of the State for developing fully 
     operational one-stop delivery of core services described in 
     section 716(a)(2);
       (ii) the time frame for achieving the strategy;
       (iii) the estimated cost for achieving the strategy;
       (iv) the steps that the State will take over the 3 years 
     covered by the plan to provide individuals with access to 
     one-stop delivery of core services described in section 
     716(a)(2);
       (v) the steps that the State will take over the 3 years 
     covered by the plan to ensure that all publicly funded labor 
     exchange services described in section 716(a)(2)(B), and all 
     such services described in the Wagner-Peyser Act (29 U.S.C. 
     49 et seq.), are provided through the one-stop career center 
     system of the State;
       (vi) the steps that the State will take over the 3 years 
     covered by the plan to provide information through the one-
     stop delivery to individuals on the quality of workforce 
     employment activities, workforce education activities, and 
     vocational rehabilitation program activities, provided 
     through the statewide system;
       (vii) the steps that the State will take over the 3 years 
     covered by the plan to link services provided through the 
     one-stop delivery with services provided through State 
     welfare agencies; and
       (viii) in a case in which the State chooses to use vouchers 
     to deliver workforce employment activities, the steps that 
     the State will take over the 3 years covered by the plan to 
     comply with the requirements in section 716(a)(9) and the 
     information required in such section;
       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 773(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     716(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 731(d);
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; and
       (H)(i) describing the steps that the State will take to 
     segregate the amount made available to the State under 
     section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) or under 
     section 901(c)(1)(A)(ii) of the Social Security Act (42 
     U.S.C. 1101(c)(1)(A)(ii)) from the remainder of the portion 
     described in section 713(a)(1); and
       (ii) describing how the State will use the amount described 
     in clause (i) to carry out the activities described in 
     section 716(a)(10);
       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;
       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;
     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan; and
       (3) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 731(c).
       (f) No Entitlement to a Service.--Nothing in this title 
     shall be construed to provide any individual with an 
     entitlement to a service provided under this title.

     SEC. 715. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 712 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     714(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 714, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 731(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 773(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 716(a)(2), 

[[Page S 13068]]
     providers of other workforce employment activities, and providers of 
     workforce education activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this title.
     SEC. 716. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle to carry out workforce employment activities through 
     a statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), and (4); and
       (B) may be used to carry out the activities described in 
     paragraphs (5), (6), (7), and (8), including providing 
     activities described in paragraph (6) through vouchers 
     described in paragraph (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 773(c).
       (4) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 731(d).
       (5) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, welfare 
     assistance, veterans' employment services, or other public 
     assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.
       (6) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) on-the-job training;
       (B) occupational skills training;
       (C) entrepreneurial training;
       (D) training to develop work habits to help individuals 
     obtain and retain employment;
       (E) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual after 
     successful completion of the training;
       (F) rapid response assistance for dislocated workers;
       (G) skill upgrading and retraining for persons not in the 
     workforce;
       (H) preemployment and work maturity skills training for 
     youth;
       (I) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (J) programs for adults that combine workplace training 
     with related instruction;
       (K) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (L) case management services;
       (M) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system;
       (N) followup services for participants who are placed in 
     unsubsidized employment; and
       (O) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (7) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (8) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 731(c), with an emphasis 
     on benchmarks established under section 731(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this title.
       (9) Vouchers.--
       (A) In general.--A State may deliver some or all of the 
     workforce employment activities described in paragraph (6) 
     that are provided under this subtitle through a system of 
     vouchers administered through the one-stop delivery of core 
     services described in paragraph (2) in the State.
       (B) Eligibility requirements.--
       (i) In general.--A State that chooses to deliver the 
     activities described in subparagraph (A) through vouchers 
     shall indicate in the State plan described in section 714 the 
     criteria that will be used to determine--

       (I) which workforce employment activities described in 
     paragraph (6) will be delivered through the voucher system;
       (II) eligibility requirements for participants to receive 
     the vouchers and the amount of funds that participants will 
     be able to access through the voucher system; and
       (III) which employment, training, and education providers 
     are eligible to receive payment through the vouchers.

       (ii) Considerations.--In establishing State criteria for 
     service providers eligible to receive payment through the 
     vouchers under clause (i)(III), the State shall take into 
     account industry-recognized skills standards promoted by the 
     National Skills Standards Board.
       (C) Accountability requirements.--A State that chooses to 
     deliver the activities described in paragraph (6) through 
     vouchers shall indicate in the State plan--
       (i) information concerning how the State will utilize the 
     statewide comprehensive labor market information system 
     described in section 773(c) and the job placement 
     accountability system established under section 731(d) to 
     provide timely and accurate information to participants about 
     the performance of eligible employment, training, and 
     education providers;
       (ii) other information about the performance of eligible 
     providers of services that the State believes is necessary 
     for participants receiving the vouchers to make informed 
     career choices; and
       (iii) the timeframe in which the information developed 
     under clauses (i) and (ii) will be widely available through 
     the one-stop delivery of core services described in paragraph 
     (2) in the State.
       (10) Funds from unemployment trust fund.--Funds made 
     available to a Governor under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) for a program 
     year shall only be available for activities authorized under 
     such section 901(c)(1)(A), which are--
       (A) the administration of State unemployment compensation 
     laws as provided in title III of the Social Security Act 
     (including administration pursuant to agreements under any 
     Federal unemployment compensation law);
       (B) the establishment and maintenance of systems of public 
     employment offices in accordance with the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.); and
       (C) carrying out the activities described in sections 4103, 
     4103A, 4104, and 4104A of title 38, United States Code 
     (relating to veterans' employment services).
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this subtitle for workforce 
     education activities to carry out, through the statewide 
     system, activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, planning, and guidance 
     information to students and their parents that is, to the 
     extent possible, in a language and form that the students and 
     their parents understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, 

[[Page S 13069]]
     including adults and out-of-school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this subtitle for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     determines that the fiscal effort per student or the 
     aggregate expenditures of such State for workforce education 
     for the program year preceding the program year for which the 
     determination is made, equaled or exceeded such effort or 
     expenditures for workforce education for the second program 
     year preceding the fiscal year for which the determination is 
     made.
       (B) Waiver.--The Federal Partnership may waive the 
     requirements of this section (with respect to not more than 5 
     percent of expenditures by any State educational agency) for 
     1 program year only, on making a determination that such 
     waiver would be equitable due to exceptional or 
     uncontrollable circumstances affecting the ability of the 
     applicant to meet such requirements, such as a natural 
     disaster or an unforeseen and precipitous decline in 
     financial resources. No level of funding permitted under such 
     a waiver may be used as the basis for computing the fiscal 
     effort or aggregate expenditures required under this section 
     for years subsequent to the year covered by such waiver. The 
     fiscal effort or aggregate expenditures for the subsequent 
     years shall be computed on the basis of the level of funding 
     that would, but for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this subtitle through the flex account to carry out school-
     to-work activities through the statewide system, except that 
     any State that received a grant under subtitle B of title II 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6141 et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this subtitle through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 728(c), the 
     State may use a portion of the funds made available to the 
     State under this subtitle through the flex account to 
     supplement other funds provided by the State or private 
     sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this subtitle shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this subtitle 
     shall be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this subtitle shall be used for 
     customized or skill training, on-the-job training, or company 
     specific assessments of job applicants or workers, for any 
     business or part of a business, that has relocated, until 120 
     days after the date on which such business commences 
     operations at the new location, if the relocation of such 
     business or part of a business, results in a loss of 
     employment for any worker of such business at the original 
     location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of subsection (a)(6) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this title, a State may use funds made available 
     under section 713(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--
       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of subsection (a)(6); and
       (ii) are otherwise unable to obtain such services.

     SEC. 717. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     workforce development activities for Indian and Native 
     Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the same meanings given such terms in 
     subsections (d), (e) and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (4) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the same meanings given such terms in 
     paragraphs (1) and (3), respectively, of section 9212 of the 
     Native Hawaiian Education Act (20 U.S.C. 7912).
       (5) Tribally controlled community college.--The term 
     ``tribally controlled community college'' has the same 
     meaning given such term in section 2(a)(4) of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801(a)(4)).
       (6) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered, by the governing body of an Indian tribe or 
     Indian tribes;
       (B) offers a technical degree or certificate granting 
     program;
       (C) is governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (D) demonstrates adherence to stated goals, a philosophy, 
     or a plan of operation, that fosters individual Indian 
     economic and self-sufficiency opportunity, including programs 
     that are appropriate to stated tribal goals of developing 
     individual entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (E) has been in operation for at least 3 years;
       (F) holds accreditation with or is a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (G) enrolls the full-time equivalent of not fewer than 100 
     students, of whom a majority are Indians.
       (c) Program Authorized.--

[[Page S 13070]]

       (1) Assistance authorized.--From amounts made available 
     under section 734(b)(2), the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make grants to, or enter into 
     contracts or cooperative agreements with, Indian tribes and 
     tribal organizations, Alaska Native entities, tribally 
     controlled community colleges, tribally controlled 
     postsecondary vocational institutions, Indian-controlled 
     organizations serving Indians or Alaska Natives, and Native 
     Hawaiian organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Formula.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to, or enter into contracts 
     and cooperative agreements with, entities as described in 
     paragraph (1) to carry out the activities described in 
     paragraphs (2) and (3) of subsection (d) on the basis of a 
     formula developed by the Federal Partnership in consultation 
     with entities described in paragraph (1).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under this section 
     shall be used to carry out the activities described in 
     paragraphs (2) and (3) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians and Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians and Native Hawaiians;
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations in Oklahoma, Alaska, or 
     Hawaii; and
       (iii) supplemental services to recipients of public 
     assistance on or near Indian reservations or former 
     reservation areas in Oklahoma or in Alaska.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education, adult education, and literacy 
     services.--Funds made available under this section shall be 
     used for--
       (A) workforce education activities conducted by entities 
     described in subsection (c)(1); and
       (B) the support of tribally controlled postsecondary 
     vocational institutions in order to ensure continuing and 
     expanded educational opportunities for Indian students.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section 
     an entity described in subsection (c)(1) shall submit to the 
     Federal Partnership a plan that describes a 3-year strategy 
     for meeting the needs of Indian and Native Hawaiian 
     individuals, as appropriate, in the area served by such 
     entity. Such plan shall--
       (1) be consistent with the purposes of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or retain unsubsidized employment;
       (4) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and
       (5) describe the goals and benchmarks to be used to assess 
     the performance of entities in carrying out the activities 
     assisted under this section.
       (f) Further Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c)(1) to participate in any program offered by a 
     State or local entity under this title; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c)(1) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Partnership Provisions.--
       (1) Office established.--There shall be established within 
     the Federal Partnership an office to administer the 
     activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Federal Partnership, through the 
     office established under paragraph (1), shall develop 
     regulations and policies for activities assisted under this 
     section in consultation with tribal organizations and Native 
     Hawaiian organizations. Such regulations and policies shall 
     take into account the special circumstances under which such 
     activities operate.
       (B) Administrative support.--The Federal Partnership shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Federal Partnership determines to 
     be necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Federal Partnership, through 
     the office established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c)(1) that receive assistance under this section 
     to enable such entities to improve the workforce development 
     activities provided by such entities.

     SEC. 718. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 734(b)(3), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to outlying areas to carry out 
     workforce development activities.
       (b) Application.--The Federal Partnership shall issue 
     regulations specifying the provisions of this title that 
     shall apply to outlying areas that receive funds under this 
     subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 721. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of--
       (A) the funds made available to a State for any fiscal year 
     under section 713(a)(1), less any portion of such funds made 
     available under section 6 of the Wagner-Peyser Act (29 U.S.C. 
     49e) or section 901(c)(1)(A) of the Social Security Act (42 
     U.S.C. 1101(c)(1)(A)); and
       (B) the funds made available to a State for any fiscal year 
     under section 713(a)(3) for workforce employment activities;

     shall be made available to the Governor of such State for use 
     in accordance with paragraph (2).
                                 ______


                       KENNEDY AMENDMENT NO. 2632
  Mr. MOYNIHAN (for Mr. Kennedy) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 359, strike lines 11 through 16 and insert the 
     following:

     viduals to participate in the statewide system; and
       (N) followup services for participants who are placed in 
     unsubsidized employment.
                                 ______


                       KENNEDY AMENDMENT NO. 2633

  Mr. Moynihan (for Mr. Kennedy) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       In section 721(b), strike paragraph (4) and insert the 
     following:
       (4) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a fiscal 
     year, such agency shall distribute such amount for workforce 
     education activities in such State as follows:
       (A) 75 percent of such amount shall be distributed for 
     secondary school vocational education in accordance with 
     section 722, or for postsecondary and adult vocational 
     education in accordance with section 723, or for both; and
       (B) 25 percent of such amount shall be distributed for 
     adult education in accordance with section 724.
                                 ______


                KENNEDY (AND OTHERS) AMENDMENT NO. 2634

  Mr. MOYNIHAN (for Mr. Kennedy for himself, Mr. Lieberman, Mr. Breaux, 
and Mr. Conrad) proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 17, line 8, insert ``and for each of fiscal years 
     1998, 1999 and 2000, the amount of the State's job placement 
     performance bonus determined under subsection (f)(1) for the 
     fiscal year'' after ``year''.
       On page 17, line 22, insert ``and the applicable amount 
     specified under subsection (f)(2)(B) for such fiscal year'' 
     after ``(B)''.
       On page 29, between lines 15 and 16, insert:
       ``(f) Job Placement Performance Bonus.--
       ``(1) In General.--The job placement performance bonus 
     determined with respect to a State and a fiscal year is an 
     amount equal to the amount of the State's allocation of the 
     job placement performance fund determined in accordance with 
     the formula developed under paragraph (2).
       ``(2) Allocation formula; bonus fund.--
       ``(A) Allocation formula.--
       ``(i) In General.--Not later than September 30, 1996, the 
     Secretary of Health and Human Services shall develop and 
     publish in the Federal Register a formula for allocating 
     amounts in the job placement performance bonus fund to States 
     based on the number of families that received assistance 
     under a State program funded under this part in the preceding 
     fiscal year that became ineligible for assistance under the 
     State program, or the number of families with a reduction in 
     the amount of such assistance, as a result of unsubsidized 
     employment during such year.
       ``(ii) Factors to consider.--In developing the allocation 
     formula under clause (i), the Secretary shall--
       ``(I) provide a greater financial bonus for individuals in 
     families described in clause (i) who remain employed for 
     greater periods of time or are at a greater risk of long-term 
     welfare dependency;

[[Page S 13071]]

       ``(II) take into account the unemployment conditions of 
     each State or geographic area; and
       ``(III) take into account the number of families in each 
     State that received assistance under a State program funded 
     under this part in the preceding fiscal year that became 
     ineligible for assistance under the State program, or the 
     number of families with a reduction in the amount of such 
     assistance, as a result of unsubsidized employment during 
     such year, including fiscal years prior to 1997.
       ``(B) Job placement performance bonus fund.--
       ``(i) general.--For purposes of establishing a job 
     placement performance bonus fund and making disbursements 
     from such fund in accordance with subparagraph (A), with 
     respect to a fiscal year there are authorized to be 
     appropriated and there are appropriated an amount equal to 
     the sum of--
       ``(I)(aa) for fiscal year 1998, $70,000,000;
       ``(bb) for fiscal year 1999, $140,000,000;
       ``(cc) for fiscal year 2000, $210,000,000; and
       ``(II) the amount of the reduction in grants made under 
     this section for the preceding fiscal year resulting from the 
     application of section 407 for the fiscal year involved.
       On page 29, line 16, strike ``(f)'' and insert ``(g)''.
       On page 66, line 7, insert ``and a preliminary assessment 
     of the job placement performance bonus established under 
     section 403(f)'' before the period.
       On page 108, between lines 20 and 21, insert the following 
     new subsection:
       (i) Repeal of Market Promotion Program.--Section 203 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623) is repealed.
                                 ______


                       KENNEDY AMENDMENT NO. 2635

  Mr. MOYNIHAN (for Mr. Kennedy) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows

       In section 716(a), add at the end the following:
       (11) Workforce employment activities for dislocated 
     workers.--Each State shall use 25 percent of the funds made 
     available to the State for a program year under section 
     713(a)(1), less any portion of such funds made available 
     under section 901(c)(1)(A) of the Social Security Act (42 
     U.S.C. 1101(c)(1)(A), to provide workforce employment 
     activities for dislocated workers.
                                 ______


             KENNEDY (AND BREAUX) AMENDMENTS NOS. 2636-2638

  Mr. MOYNIHAN (for Mr. Kennedy, for himself and Mr. Breaux) proposed 
three amendments to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

                           Amendment No. 2636

       On page 324, strike lines 1 through 3 and insert the 
     following:
       (17) Local workforce development board.--The term ``local 
     workforce development board'' means a board established under 
     section 715.
                                                                    ____


                           Amendment No. 2637

       On page 380, strike lines 17 through 22 and insert the 
     following:
       (ii) such additional factors as the Governor (in 
     consultation with local workforce development boards) 
     determines to be necessary.
                                                                    ____

                           Amendment No. 2638

       Beginning on page 400, strike line 10 and all that follows 
     through page 404, line 1 and insert the following:

     the local workforce development board in the substate area.

     SEC. 728. LOCAL AGREEMENTS AND WORKFORCE DEVELOPMENT BOARDS.

       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 714 to the Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local workforce development 
     boards.
       (2) Business and industry involvement.--The business and 
     industry representatives on the local workforce development 
     board shall have a lead role in the design, management, and 
     evaluation of the activities to be carried out in the 
     substate area under the local agreement.
       (3) Contents.--
       (A) State goals and state benchmarks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this subtitle will be 
     spent to meet the State goals and reach the State benchmarks 
     in a manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local workforce development board;

     collaborated in reaching the agreement.
       (4) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local workforce development board, the Governor 
     shall notify the partnership or board, as appropriate, with 
     the opportunity to comment, not later than 30 days after the 
     date of the notification, on the manner in which funds 
     allocated to such substate area will be spent to meet the 
     State goals and reach the State benchmarks.
       (5) Exception.--A State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--
       (1) In general.--Each State shall facilitate
                                 ______


                       KENNEDY AMENDMENT NO. 2639

  Mr. MOYNIHAN (for Mr. Kennedy) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       In section 759, strike subsections (b) through (e) and 
     insert the following:
       (b) State Use of Funds.--
       (1) Core job corps activities.--The State shall use a 
     portion of the funds made available to the State through an 
     allotment received under subsection (c) to establish and 
     operate Job Corps centers as described in chapter 2, if a 
     center located in the State received assistance under part B 
     of title IV of the Job Training Partnership Act for fiscal 
     year 1996 and was not closed in accordance with section 755.
       (2) Core work-based learning opportunities.--
       (A) In general.--The State shall use 25 percent of the 
     funds made available to the State through an allotment 
     received under subsection (c) to make grants to eligible 
     entities in substate areas, in accordance with the procedures 
     described in subsection (e), to assist the substate areas in 
     organizing summer jobs programs that provide work-based 
     learning opportunities in the private and public sectors that 
     are directly linked to year-round school-to-work activities 
     in the substate areas.
       (B)  Limitation.--No funds provided under this subtitle 
     shall be used to displace employed workers.
       (3) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants to eligible entities in substate areas, in 
     accordance with the procedures described in subsection (e), 
     to assist each such entity in carrying out alternative 
     programs to assist out-of-school at-risk youth in 
     participating in school-to-work activities in the substate 
     area; and
       (B) carry out other workforce development activities 
     specifically for at-risk youth.
       (c) Allotments.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall allot to each State an amount equal to the 
     total of--
       (A) the amount made available to the State under paragraph 
     (2); and
       (B) the amounts made available to the State under 
     subparagraphs (C), (D), and (E) of paragraph (3).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (g) for a fiscal year, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State the 
     amount that Job Corps centers in the State expended for 
     fiscal year 1996 under part B of title IV of the Job Training 
     Partnership Act to carry out activities
      related to the direct operation of the centers, as 
     determined under section 755(a)(2).
       (3) Allotments based on populations.--
       (A) Definitions.--As used in this paragraph:
       (i) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--
       (I) is not less than age 18;
       (II) is not more than age 64; and
       (III) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.
       (ii) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (B) Total allotments.--The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall use the remainder of the funds 
     that are appropriated under subsection (g) for a fiscal year, 
     and that are not made available under paragraph (2), to make 
     amounts available under this paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     average number of unemployed individuals (as determined by 
     the Secretary of Labor for the most recent 24-month period 
     for which data are available, prior to the program year for 
     which the allotment is made) in the State bears to the 
     average number of unemployed individuals (as so determined) 
     in the United States.

[[Page S 13072]]

       (D) Individuals in poverty.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     total number of individuals in poverty in the State bears to 
     the total number of individuals in poverty in the United 
     States.
       (E) At-risk youth.--From funds equal to 33\1/3\ percent of 
     such remainder, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make available to each State an amount 
     that bears the same relationship to such funds as the total 
     number of at-risk youth in the State bears to the total 
     number of at-risk youth in the United States.
       (d) State Plan.--
       (1) Information.--To be eligible to receive an allotment 
     under subsection (c), a State shall include, in the State 
     plan to be submitted under section 714, information 
     describing the allocation within the State of the funds made 
     available through the allotment, and how the programs and 
     activities described in subsection (b) will be carried out to 
     meet the State goals and reach the State benchmarks.
       (2) Limitation.--A State may not be required to include the 
     information described in paragraph (1) in the State plan to 
     be submitted under section 714 to be eligible to receive an 
     allotment under section 712.
       (e) Application.--To be eligible to receive a grant under 
     paragraph (2) or (3)(A) of subsection (b) from a State to 
     carry out programs in a substate area, an entity shall 
     prepare and submit an application to the Governor of the 
     State at such time, in such manner, and containing such 
     information as the Governor may require. The Governor may 
     establish criteria for reviewing such applications. Any such 
     criteria shall, at a minimum, include the extent to which the 
     local partnership described in section 728(a) (or, where 
     established, the local workforce development board described 
     in section 728(b)) for the substate area approves of such 
     application.
                                 ______


                   KENNEDY AMENDMENTS NOS. 2640-2660

  Mr. MOYNIHAN (for Mr. Kennedy) proposed 21 amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2640

       At the end of section 716(f), insert the following:
       (4) Displacement.--No funds provided under this title shall 
     be used in a manner that would result in--
       (A) the displacement of any currently employed worker 
     (including partial displacement such as a reduction in wages, 
     hours of nonovertime work, or employment benefits) or the 
     impairment of an existing contract for services or collective 
     bargaining agreement; or
       (B) the employment or assignment of a participant to fill a 
     position when--
       (i) any other person is on layoff from the same or a 
     substantially equivalent position; or
       (ii) the employer has terminated the employment of any 
     other employee or otherwise reduced its workforce in order to 
     fill the vacancy so created with a participant subsidized 
     under this title.
       (5) Health and safety.--Health and safety standards 
     established under Federal and State law otherwise applicable 
     to working conditions of employees shall be equally 
     applicable to working conditions of participants engaged in 
     work activities pursuant to this title. Appropriate workers' 
     compensation and tort claims protections shall be provided to 
     participants on the same basis as such protections are 
     provided to other individuals in the State in similar 
     employment (as determined under regulations issued by the 
     Secretary of Labor).
       (6) Employment conditions.--Participants employed or 
     assigned to work in positions subsidized under this title 
     shall be provided benefits and working conditions at the same 
     level and to the same
      extent as other employees working a similar length of time 
     and doing the same type of work.
       (7) Dispute resolution procedure.--The State shall 
     establish and maintain (pursuant to regulations issued by the 
     Secretary of Labor) a dispute resolution procedure for 
     resolving complaints alleging violations of any of the 
     prohibitions or requirements described in this subsection. 
     Such procedure shall include an opportunity for a hearing and 
     shall be completed not later than the 90th day after the date 
     of the submission of a complaint, by which day the 
     complainant shall be provided a written decision by the 
     State. A decision of the State under such procedure, or a 
     failure of a State to issue a decision within the 90-day 
     period, may be appealed to the Secretary of Labor, who shall 
     investigate the allegations contained in the complaint and 
     make a determination not later than 60 days after the date of 
     the appeal as to whether a violation of a prohibition or 
     requirement of this subsection has occurred.
       (8) Remedies.--
       (A) In general.--Except as provided in subparagraphs (B) 
     and (C), remedies that may be imposed under this paragraph 
     for violations of the prohibitions and requirements described 
     in this subsection shall be limited to--
       (i) suspension or termination of payments under this title;
       (ii) prohibition of placement of any participant, for an 
     appropriate period of time, with an employer that has 
     violated this subsection; and
       (iii) appropriate equitable relief (other than back pay).
       (B) Exceptions.--
       (i) Repayment.--If the Secretary of Labor determines that a 
     violation of paragraph (2) or (3) has occurred, the Secretary 
     of Labor shall require the State or substate recipient of 
     funds that has violated paragraph (2) or (3), respectively, 
     to repay to the United States an amount equal to the amount 
     expended in violation of paragraph (2) or (3), respectively.
       (ii) Additional remedies.--In addition to the remedies 
     available under subparagraph (A), remedies available under 
     this paragraph for violations of paragraph (4) may include--
       (I) reinstatement of the displaced employee to the position 
     held by such employee prior to displacement;
       (II) payment of lost wages and benefits of the employee; 
     and
       (III) reestablishment of other relevant terms, conditions, 
     and privileges of employment of the employee.
       (C) Other laws or contracts.--Nothing in this paragraph 
     shall be construed to prohibit a complainant from pursuing a 
     remedy authorized under another Federal, State, or local law 
     or a contract or collective bargaining agreement for a 
     violation of the prohibitions or requirements described in 
     this subsection.
                                                                    ____

                           Amendment No. 2641

       On page 337, strike lines 4 through 20 and insert the 
     following:
       (a) Activities.--From the sum of the funds made available 
     to a State through an allotment received under section 712 
     and the funds made available under section 901(c)(1)(A) of 
     the Social Security Act (42 U.S.C. 1101(c)(1)(A)) to carry 
     out this title for a program year--
       (1) a portion equal to 40 percent of such sum (which 
     portion shall include the amount allotted to the State from 
     funds made available under section 901(c)(1)(A) of the Social 
     Security Act) shall be made available for workforce 
     employment activities or activities described in section 
     716(a)(10);
       (2) a portion equal to 25 percent of such sum shall be made 
     available for workforce education activities; and
       (3) a portion (referred to in this title as the ``flex 
     account'') equal to 35 percent of such sum shall be made 
     available for flexible workforce activities.
                                                                    ____


                           Amendment No. 2642

       In section 759, strike subsections (b) through (e) and 
     insert the following:
       (b) State Use of Funds.--
       (1) Core job corps activities.--The State shall use a 
     portion of the funds made available to the State through an 
     allotment received under subsection (c) to establish and 
     operate Job Corps centers as described in chapter 2, if a 
     center located in the State received assistance under part B 
     of title IV of the Job Training Partnership Act for fiscal 
     year 1996 and was not closed in accordance with section 755.
       (2) Core work-based learning opportunities.--
       (A) In general.--The State shall use a portion of the funds 
     made available to the State through an allotment received 
     under subsection (c) to make grants to eligible entities in 
     substate areas, in accordance with the procedures described 
     in subsection (e), to assist the substate areas in organizing 
     summer jobs programs that provide work-based learning 
     opportunities in the private and public sectors that are 
     directly linked to year-round school-to-work activities in 
     the substate areas.
       (B)  Limitation.--No funds provided under this subtitle 
     shall be used to displace employed workers.
       (3) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants to eligible entities in substate areas, in 
     accordance with the procedures described in subsection (e), 
     to assist each such entity in carrying out alternative 
     programs to
      assist out-of-school at-risk youth in participating in 
     school-to-work activities in the substate area; and
       (B) carry out other workforce development activities 
     specifically for at-risk youth.
       (c) Allotments.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall allot to each State an amount equal to the 
     total of--
       (A) the amount made available to the State under paragraph 
     (2); and
       (B) the amounts made available to the State under 
     subparagraphs (C), (D), and (E) of paragraph (3).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (g) for a fiscal year, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State the 
     amount that Job Corps centers in the State expended for 
     fiscal year 1996 under part B of title IV of the Job Training 
     Partnership Act to carry out activities related to the direct 
     operation of the centers, as determined under section 
     755(a)(2). 

[[Page S 13073]]

       (3) Allotments based on populations.--
       (A) Definitions.--As used in this paragraph:
       (i) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--

       (I) is not less than age 18;
       (II) is not more than age 64; and
       (III) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.

       (ii) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (B) Total allotments.--The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall use the remainder of the funds 
     that are appropriated under subsection (g) for a fiscal year, 
     and that are not made available under paragraph (2), to make 
     amounts available under this paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     average number of unemployed individuals (as determined by 
     the Secretary of Labor for the most recent 24-month period 
     for which data are available, prior to the program year for 
     which the allotment is made) in the State bears to the 
     average number of unemployed individuals (as so determined) 
     in the United States.
       (D) Individuals in poverty.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     total number of individuals in poverty in the State bears to 
     the total number of individuals in poverty in the United 
     States.
       (E) At-risk youth.--From funds equal to 33\1/3\ percent of 
     such remainder, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make available to each State an amount 
     that bears the same relationship to such funds as the total 
     number of at-risk youth in the State bears to the total 
     number of at-risk youth in the United States.
       (d) State Plan.--
       (1) Information.--To be eligible to receive an allotment 
     under subsection (c), a State shall include, in the State 
     plan to be submitted under section 714, information 
     describing the allocation within the State of the funds made 
     available through the allotment, and how the programs and 
     activities described in subsection (b) will be carried out to 
     meet the State goals and reach the State benchmarks.
       (2) Limitation.--A State may not be required to include the 
     information described in paragraph (1) in the State plan to 
     be submitted under section 714 to be eligible to receive an 
     allotment under section 712.
       (e) Application.--To be eligible to receive a grant under 
     paragraph (2) or (3)(A) of subsection (b) from a State to 
     carry out programs in a substate area, an entity shall 
     prepare and submit an application to the Governor of the 
     State at such time, in such manner, and containing such 
     information as the Governor may require. The Governor may 
     establish criteria for reviewing such applications. Any such 
     criteria shall, at a minimum, include the extent to which the 
     local partnership described in section 728(a) (or, where 
     established, the local workforce development board described 
     in section 728(b)) for the substate area approves of such 
     application.
                                                                    ____


                           Amendment No. 2643

       On page 424, line 8, strike ``$6,127,000,000'' and insert 
     ``$8,100,000,000''.
                                                                    ____

                           Amendment No. 2644

       Beginning on page 366, strike line 24 and all that follows 
     through page 367, line 24, and insert the following:
       (e) Economic Development Activities.--
       (1) In general.--In the case of a State that meets the 
     requirements of section 728(c), the State may, subject to 
     paragraph (2), use not more than 10 percent of the funds made 
     available to the State under this subtitle through the flex 
     account to supplement other funds provided by the State or 
     private sector--
       (A) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (B) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (C) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (D) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (E) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (F) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (2) Conditions.--In order for a State to be eligible to use 
     funds described in paragraph (1) to award a grant to provide 
     services described in paragraph (1)--
       (A) the State shall make available (directly or through 
     donations from the affected employers or businesses) non-
     Federal contributions in an amount equal to not less than $1 
     for every $1 of Federal funds provided under the grant;
       (B) the services are designed to result in an increase in 
     the wages of the incumbent workers served; and
       (C) the providers of the services are--
       (i) eligible to provide services under the Higher Education 
     Act of 1965 (20 U.S.C. 1001 et seq.); or
       (ii) determined to be eligible, under procedures 
     established by the Governor, to receive payment through 
     vouchers as described in subsection (a)(9)(B)(i)(III).
                                                                    ____


                           Amendment No. 2645

       On page 407, line 16, strike ``the funds'' and insert ``not 
     more than 10 percent of the funds''.
                                                                    ____

                           Amendment No. 2646

       Beginning on page 333, line 20, strike all through page 
     569, line 2, and insert the following:

     734(b)(7), the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership--
       (A) using funds equal to 60 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals who are not less than 15 and not more than 65 
     (as determined by the Federal Partnership using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the program year for which the allotment is made) in 
     the State bears to the total number of such individuals in 
     all States;
       (B) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals in poverty in the State bears to the total 
     number of individuals in poverty in all States;
       (C) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     number of unemployed individuals (as determined by the 
     Secretary of Labor for the most recent 24-month period for 
     which data are available, prior to the program year for which 
     the allotment is made) in the State bears to the average 
     number of unemployed individuals (as so determined) in all 
     States; and
       (D) using funds equal to 20 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     monthly number of adult recipients of assistance (as 
     determined by the Secretary of Health and Human Services for 
     the most recent 12-month period for which data are available, 
     prior to the program year for which the allotment is made) in 
     the State bears to the average monthly number of adult 
     recipients of assistance (as so determined) in all States.
       (c) Adjustments.--
       (1) Definition.--As used in this subsection, the term 
     ``national average per capita payment'', used with respect to 
     a program year, means the amount obtained by dividing--
       (A) the total amount allotted to all States under this 
     section for the program year; by
       (B) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Federal 
     Partnership using the most recent available data provided by 
     the Bureau of the Census, prior to the program year for which 
     the allotment is made) in all States.
       (2) Minimum allotment.--Except as provided in paragraph 
     (3), no State with a State plan approved under section 714 
     for a program year shall receive an allotment under this 
     section for the program year in an amount that is less than 
     0.5 percent of the amount reserved under section 734(b)(7) 
     for the program year.
       (3) Limitation.--No State that receives an increase in an 
     allotment under this section for a program year as a result 
     of the application of paragraph (2) shall receive an 
     allotment under this section for the program year in an 
     amount that is more than the product obtained by 
     multiplying--
       (A) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Federal 
     Partnership using the most recent available data provided by 
     the Bureau of the Census, prior to the program year for which 
     the allotment is made) in the State; and
       (B) the product obtained by multiplying--
       (i) 1.3; and
       (ii) the national average per capita payment for the 
     program year.

     SEC. 713. STATE APPORTIONMENT BY ACTIVITY.

       (a) Activities.--From the sum of the funds made available 
     to a State through an allotment received under section 712 
     and the funds made available under section 

[[Page S 13074]]
     901(c)(1)(A) of the Social Security Act (42 U.S.C. 1101(c)(1)(A)) to 
     carry out this title for a program year--
       (1) a portion equal to 25 percent of such sum (which 
     portion shall include the amount allotted to the State from 
     funds made available under section 901(c)(1)(A) of the Social 
     Security Act) shall be made available for workforce 
     employment activities;
       (2) a portion equal to 25 percent of such sum shall be made 
     available for workforce education activities; and
       (3) a portion (referred to in this title as the ``flex 
     account'') equal to 50 percent of such sum shall be made 
     available for flexible workforce activities.
       (b) Recipients.--In making an allotment under section 712 
     to a State, the Secretary of Labor and the Secretary of 
     Education, acting jointly, shall make a payment--
       (1) to the Governor of the State for the portion described 
     in subsection (a)(1), and such part of the flex account as 
     the Governor may be eligible to receive, as determined under 
     the State plan of the State submitted under section 714; and
       (2) to the State educational agency of the State for the 
     portion described in subsection (a)(2), and such part of the 
     flex account as the State educational agency may be eligible 
     to receive, as determined under the State plan of the State 
     submitted under section 714.

     SEC. 714. STATE PLANS.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section 712, the Governor of the State shall 
     submit to the Federal Partnership, and obtain approval of, a 
     single comprehensive State workforce development plan 
     (referred to in this section as a ``State plan''), outlining 
     a 3-year strategy for the statewide system of the State.
       (b) Parts.--
       (1) In general.--The State plan shall contain 3 parts.
       (2) Strategic plan and flexible workforce activities.--The 
     first part of the State plan shall describe a strategic plan 
     for the statewide system, including the flexible workforce 
     activities, and, if appropriate, economic development 
     activities, that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the first part of the 
     State plan, using procedures that are consistent with the 
     procedures described in subsection (d).
       (3) Workforce employment activities.--The second part of 
     the State plan shall describe the workforce employment 
     activities that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the second part of the 
     State plan.
       (4) Workforce education activities.--The third part of the 
     State plan shall describe the workforce education activities 
     that are designed to meet the State goals and reach the State 
     benchmarks and are to be carried out with the allotment. The 
     State educational agency of the State shall develop the third 
     part of the State plan in consultation, where appropriate, 
     with the State postsecondary education agency and with 
     community colleges.
       (c) Contents of the Plan.--The State plan shall include--
       (1) with respect to the strategic plan for the statewide 
     system--
       (A) information describing how the State will identify the 
     current and future workforce development needs of the 
     industry sectors most important to the economic 
     competitiveness of the State;
       (B) information describing how the State will identify the 
     current and future workforce development needs of all 
     segments of the population of the State;
       (C) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level;
       (D) information describing how the State will coordinate 
     workforce development activities to meet the State goals and 
     reach the State benchmarks;
       (E) information describing the allocation within the State 
     of the funds made available through the flex account for the 
     State, and how the flexible workforce activities, including 
     school-to-work activities, to be carried out with such funds 
     will be carried out to meet the State goals and reach the 
     State benchmarks;
       (F) information identifying how the State will obtain the 
     active and continuous participation of business, industry, 
     and labor in the development and continuous improvement of 
     the statewide system;
       (G) information identifying how any funds that a State 
     receives under this subtitle will be leveraged with other 
     public and private resources to maximize the effectiveness of 
     such resources for all workforce development activities, and 
     expand the participation of business, industry, labor, and 
     individuals in the statewide system;
       (H) information identifying how the workforce development 
     activities to be carried out with funds received through the 
     allotment will be coordinated with programs carried out by 
     the Veterans' Employment and Training Service with funds 
     received under title 38, United States Code, in order to meet 
     the State goals and reach the State benchmarks related to 
     veterans;
       (I) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this title;
       (J) information describing the process the State will use 
     to independently evaluate and continuously improve the 
     performance of the statewide system, on a yearly basis, 
     including the development of specific performance indicators 
     to measure progress toward meeting the State goals;
       (K) an assurance that the funds made available under this 
     subtitle will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (L) information identifying the steps that the State will 
     take over the 3 years covered by the plan to establish common 
     data collection and reporting requirements for workforce 
     development activities and vocational rehabilitation program 
     activities;
       (M) with respect to economic development activities, 
     information--
       (i) describing the activities to be carried out with the 
     funds made available under this subtitle;
       (ii) describing how the activities will lead directly to 
     increased earnings of nonmanagerial employees in the State; 
     and
       (iii) describing whether the labor organization, if any, 
     representing the nonmanagerial employees supports the 
     activities;
       (N) the description referred to in subsection (d)(1); and
       (O)(i) information demonstrating the support of individuals 
     and entities described in subsection (d)(1) for the plan; or
       (ii) in a case in which the Governor is unable to obtain 
     the support of such individuals and entities as provided in 
     subsection (d)(2), the comments referred to in subsection 
     (d)(2)(B),
       (2) with respect to workforce employment activities, 
     information--
       (A)(i) identifying and designating substate areas, 
     including urban and rural areas, to which funds received 
     through the allotment will be distributed, which areas shall, 
     to the extent feasible, reflect local labor market areas; or
       (ii) stating that the State will be treated as a substate 
     area for purposes of the application of this subtitle, if the 
     State receives an increase in an allotment under section 712 
     for a program year as a result of the application of section 
     712(c)(2); and
       (B) describing the basic features of one-stop delivery of 
     core services described in section 716(a)(2) in the State, 
     including information regarding--
       (i) the strategy of the State for developing fully 
     operational one-stop delivery of core services described in 
     section 716(a)(2);
       (ii) the time frame for achieving the strategy;
       (iii) the estimated cost for achieving the strategy;
       (iv) the steps that the State will take over the 3 years 
     covered by the plan to provide individuals with access to 
     one-stop delivery of core services described in section 
     716(a)(2);
       (v) the steps that the State will take over the 3 years 
     covered by the plan to provide information through the one-
     stop delivery to individuals on the quality of workforce 
     employment activities, workforce education activities, and 
     vocational rehabilitation program activities, provided 
     through the statewide system;
       (vi) the steps that the State will take over the 3 years 
     covered by the plan to link services provided through the 
     one-stop delivery with services provided through State 
     welfare agencies; and
       (vii) in a case in which the State chooses to use vouchers 
     to deliver workforce employment activities, the steps that 
     the State will take over the 3 years covered by the plan to 
     comply with the requirements in section 716(a)(9) and the 
     information required in such section;
       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 773(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     716(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 731(d);
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; and
       (H)(i) describing the steps that the State will take to 
     segregate the amount allotted to the State from funds made 
     available under section 901(c)(1)(A) of the Social Security 
     Act (42 U.S.C. 1101(c)(1)(A)) from the remainder of the 
     portion described in section 713(a)(1); and
       (ii) describing how the State will use the amount allotted 
     to the State from funds made available under such section 
     901(c)(1)(A) to carry out the required activities described 
     in clauses (ii) through (v) of section 716(a)(2)(B) and 
     section 773;
       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and

[[Page S 13075]]

       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;
       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;

     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan; and
       (3) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 731(c).
       (f) No Entitlement to a Service.--Nothing in this title 
     shall be construed to provide any individual with an 
     entitlement to a service provided under this title.

     SEC. 715. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 712 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     714(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 714, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 731(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 773(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 716(a)(2), providers of other workforce 
     employment activities, and providers of workforce education 
     activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this title.
     SEC. 716. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle to carry out workforce employment activities through 
     a statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), and (4); and
       (B) may be used to carry out the activities described in 
     paragraphs (5), (6), (7), and (8), including providing 
     activities described in paragraph (6) through vouchers 
     described in paragraph (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 773(c).
       (4) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 731(d).
       (5) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as 

[[Page S 13076]]
     unemployment insurance, vocational rehabilitation program activities, 
     welfare assistance, veterans' employment services, or other 
     public assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.
       (6) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) on-the-job training;
       (B) occupational skills training;
       (C) entrepreneurial training;
       (D) training to develop work habits to help individuals 
     obtain and retain employment;
       (E) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual after 
     successful completion of the training;
       (F) rapid response assistance for dislocated workers;
       (G) skill upgrading and retraining for persons not in the 
     workforce;
       (H) preemployment and work maturity skills training for 
     youth;
       (I) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (J) programs for adults that combine workplace training 
     with related instruction;
       (K) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (L) case management services;
       (M) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system;
       (N) followup services for participants who are placed in 
     unsubsidized employment; and
       (O) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (7) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (8) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 731(c), with an emphasis 
     on benchmarks established under section 731(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this title.
       (9) Vouchers.--
       (A) In general.--A State may deliver some or all of the 
     workforce employment activities described in paragraph (6) 
     that are provided under this subtitle through a system of 
     vouchers administered through the one-stop delivery of core 
     services described in paragraph (2) in the State.
       (B) Eligibility requirements.--
       (i) In general.--A State that chooses to deliver the 
     activities described in subparagraph (A) through vouchers 
     shall indicate in the State plan described in section 714 the 
     criteria that will be used to determine--

       (I) which workforce employment activities described in 
     paragraph (6) will be delivered through the voucher system;
       (II) eligibility requirements for participants to receive 
     the vouchers and the amount of funds that participants will 
     be able to access through the voucher system; and
       (III) which employment, training, and education providers 
     are eligible to receive payment through the vouchers.

       (ii) Considerations.--In establishing State criteria for 
     service providers eligible to receive payment through the 
     vouchers under clause (i)(III), the State shall take into 
     account industry-recognized skills standards promoted by the 
     National Skills Standards Board.
       (C) Accountability requirements.--A State that chooses to 
     deliver the activities described in paragraph (6) through 
     vouchers shall indicate in the State plan--
       (i) information concerning how the State will utilize the 
     statewide comprehensive labor market information system 
     described in section 773(c) and the job placement 
     accountability system established under section 731(d) to 
     provide timely and accurate information to participants about 
     the performance of eligible employment, training, and 
     education providers;
       (ii) other information about the performance of eligible 
     providers of services that the State believes is necessary 
     for participants receiving the vouchers to make informed 
     career choices; and
       (iii) the timeframe in which the information developed 
     under clauses (i) and (ii) will be widely available through 
     the one-stop delivery of core services described in paragraph 
     (2) in the State.
       (10) Funds from unemployment trust fund.--Funds made 
     available to a Governor under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) for a program 
     year shall only be available for workforce employment 
     activities authorized under such section 901(c)(1)(A), which 
     are--
       (A) the administration of State unemployment compensation 
     laws as provided in title III of the Social Security Act 
     (including administration pursuant to agreements under any 
     Federal unemployment compensation law);
       (B) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B); and
       (C) carrying out the activities described in sections 4103, 
     4103A, 4104, and 4104A of title 38, United States Code 
     (relating to veterans' employment services).
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this subtitle for workforce 
     education activities to carry out, through the statewide 
     system, activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, planning, and guidance 
     information to students and their parents that is, to the 
     extent possible, in a language and form that the students and 
     their parents understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this subtitle for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     determines that the fiscal effort per student or the 
     aggregate expenditures of such State for workforce education 
     for the program year preceding the program year for which the 
     determination is made, equaled or exceeded such effort or 
     expenditures for workforce education for the second program 
     year preceding the fiscal year for which the determination is 
     made.
       (B) Waiver.--The Federal Partnership may waive the 
     requirements of this section (with respect to not more than 5 
     percent of expenditures by any State educational agency) for 
     1 program year only, on making a determination that such 
     waiver would be equitable due to exceptional or 
     uncontrollable circumstances affecting the ability of the 
     applicant to meet such requirements, such as a natural 
     disaster or an unforeseen and precipitous decline in 
     financial resources. No level of funding permitted under such 
     a waiver may be used as the basis for computing the fiscal 
     effort or aggregate expenditures required under this section 
     for years subsequent to the year covered by such waiver. The 
     fiscal effort or aggregate expenditures for the subsequent 
     years shall be computed on the basis of the level of funding 
     that would, but for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this subtitle through the flex account to carry out school-
     to-work activities through the statewide system, except that 
     any State that received a grant under subtitle B of title II 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6141 et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this subtitle through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 728(c), the 
     State may use a portion of the funds made available to the 
     State under this subtitle through the flex account to 
     supplement other funds provided by the State or private 
     sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the 

[[Page S 13077]]
     workforces of small- and medium-size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this subtitle shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this subtitle 
     shall be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this subtitle shall be used for 
     customized or skill training, on-the-job training, or company 
     specific assessments of job applicants or workers, for any 
     business or part of a business, that has relocated, until 120 
     days after the date on which such business commences 
     operations at the new location, if the relocation of such 
     business or part of a business, results in a loss of 
     employment for any worker of such business at the original 
     location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of subsection (a)(6) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this title, a State may use funds made available 
     under section 713(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--
       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of subsection (a)(6); and
       (ii) are otherwise unable to obtain such services.

     SEC. 717. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     workforce development activities for Indian and Native 
     Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the same meanings given such terms in 
     subsections (d), (e) and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (4) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the same meanings given such terms in 
     paragraphs (1) and (3), respectively, of section 9212 of the 
     Native Hawaiian Education Act (20 U.S.C. 7912).
       (5) Tribally controlled community college.--The term 
     ``tribally controlled community college'' has the same 
     meaning given such term in section 2(a)(4) of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801(a)(4)).
       (6) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered, by the governing body of an Indian tribe or 
     Indian tribes;
       (B) offers a technical degree or certificate granting 
     program;
       (C) is governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (D) demonstrates adherence to stated goals, a philosophy, 
     or a plan of operation, that fosters individual Indian 
     economic and self-sufficiency opportunity, including programs 
     that are appropriate to stated tribal goals of developing 
     individual entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (E) has been in operation for at least 3 years;
       (F) holds accreditation with or is a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (G) enrolls the full-time equivalent of not fewer than 100 
     students, of whom a majority are Indians.
       (c) Program Authorized.--
       (1) Assistance authorized.--From amounts made available 
     under section 734(b)(1), the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make grants to, or enter into 
     contracts or cooperative agreements with, Indian tribes and 
     tribal organizations, Alaska Native entities, tribally 
     controlled community colleges, tribally controlled 
     postsecondary vocational institutions, Indian-controlled 
     organizations serving Indians or Alaska Natives, and Native 
     Hawaiian organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Formula.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to, or enter into contracts 
     and cooperative agreements with, entities as described in 
     paragraph (1) to carry out the activities described in 
     paragraphs (2) and (3) of subsection (d) on the basis of a 
     formula developed by the Federal Partnership in consultation 
     with entities described in paragraph (1).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under this section 
     shall be used to carry out the activities described in 
     paragraphs (2) and (3) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians and Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians and Native Hawaiians;
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations in Oklahoma, Alaska, or 
     Hawaii; and
       (iii) supplemental services to recipients of public 
     assistance on or near Indian reservations or former 
     reservation areas in Oklahoma or in Alaska.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education, adult education, and literacy 
     services.--Funds made available under this section shall be 
     used for--
       (A) workforce education activities conducted by entities 
     described in subsection (c)(1); and
       (B) the support of tribally controlled postsecondary 
     vocational institutions in order to ensure continuing and 
     expanded educational opportunities for Indian students.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section 
     an entity described in subsection (c)(1) shall submit to the 
     Federal Partnership a plan that describes a 3-year strategy 
     for meeting the needs of Indian and Native Hawaiian 
     individuals, as appropriate, in the area served by such 
     entity. Such plan shall--
       (1) be consistent with the purposes of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or retain unsubsidized employment;
       (4) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and

[[Page S 13078]]

       (5) describe the goals and benchmarks to be used to assess 
     the performance of entities in carrying out the activities 
     assisted under this section.
       (f) Further Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c)(1) to participate in any program offered by a 
     State or local entity under this title; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c)(1) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Partnership Provisions.--
       (1) Office established.--There shall be established within 
     the Federal Partnership an office to administer the 
     activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Federal Partnership, through the 
     office established under paragraph (1), shall develop 
     regulations and policies for activities assisted under this 
     section in consultation with tribal organizations and Native 
     Hawaiian organizations. Such regulations and policies shall 
     take into account the special circumstances under which such 
     activities operate.
       (B) Administrative support.--The Federal Partnership shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Federal Partnership determines to 
     be necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Federal Partnership, through 
     the office established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c)(1) that receive assistance under this section 
     to enable such entities to improve the workforce development 
     activities provided by such entities.

     SEC. 718. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 734(b)(2), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to outlying areas to carry out 
     workforce development activities.
       (b) Application.--The Federal Partnership shall issue 
     regulations specifying the provisions of this title that 
     shall apply to outlying areas that receive funds under this 
     subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 721. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (1) and (3) of 
     section 713(a) for workforce employment activities shall be 
     made available to the Governor of such State for use in 
     accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 25 percent shall be reserved by the Governor to carry 
     out workforce employment activities through the statewide 
     system, of which not more than 20 percent of such 25 percent 
     may be used for administrative expenses; and
       (B) 75 percent shall be distributed by the Governor to 
     local entities to carry out workforce employment activities 
     through the statewide system, based on--
       (i) such factors as the relative distribution among 
     substate areas of individuals who are not less than 15 and 
     not more than 65, individuals in poverty, unemployed 
     individuals, and adult recipients of assistance, as 
     determined using the definitions specified and the 
     determinations described in section 712(b); and
       (ii) such additional factors as the Governor (in 
     consultation with local partnerships described in section 
     728(a) or, where established, local workforce development 
     boards described in section 728(b)), determines to be 
     necessary.
       (b) Workforce Education Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (2) and (3) of 
     section 713(a) for workforce education activities shall be 
     made available to the State educational agency serving such 
     State for use in accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 20 percent shall be reserved by the State educational 
     agency to carry out statewide workforce education activities 
     through the statewide system, of which not more than 5 
     percent of such 20 percent may be used for administrative 
     expenses; and
       (B) 80 percent shall be distributed by the State 
     educational agency to entities eligible for financial 
     assistance under section 722, 723, or 724, to carry out 
     workforce education activities through the statewide system.
       (3) State activities.--Activities to be carried out under 
     paragraph (2)(A) may include professional development, 
     technical assistance, and program assessment activities.
       (4) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a program 
     year, such agency shall determine the percentage of such 
     amount that will be distributed in accordance with sections 
     722, 723, and 724 for such year for workforce education 
     activities in such State in each of the following areas:
       (A) Secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (B) Adult education.
       (c) Special Rule.--Nothing in this subtitle shall be 
     construed to prohibit any individual, entity, or agency in a 
     State (other than the State educational agency) that is 
     administering workforce education activities or setting 
     education policies consistent with authority under State law 
     for workforce education activities, on the day preceding the 
     date of enactment of this Act from continuing to administer 
     or set education policies consistent with authority under 
     State law for such activities under this subtitle.

     SEC. 722. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--Except as otherwise provided in this 
     section and section 725, each State educational agency shall 
     distribute the portion of the funds made available for any 
     program year (from funds made available for the corresponding 
     fiscal year, as determined under section 734(c)) by such 
     agency for secondary school vocational education under 
     section 721(b)(3)(A) to local educational agencies within the 
     State as follows:
       (1) Seventy percent.--From 70 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 70 percent as the amount 
     such local educational agency was allocated under section 
     1124 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6333) for the preceding fiscal year bears to the 
     total amount received under such section by all local 
     educational agencies in the State for such year.
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students with disabilities who have individualized 
     education programs under section 614(a)(5) of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1414(a)(5)) served 
     by such local educational agency for the preceding fiscal 
     year bears to the total number of such students served by all 
     local educational agencies in the State for such year.
       (3) Ten percent.--From 10 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 10 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Minimum Allocation.--
       (1) In general.--Except as provided in paragraph (2), no 
     local educational agency shall receive an allocation under 
     subsection (a) unless the amount allocated to such agency 
     under subsection (a) is not less than $15,000. A local 
     educational agency may enter into a consortium with other 
     local educational agencies for purposes of meeting the 
     minimum allocation requirement of this paragraph.
       (2) Waiver.--The State educational agency may waive the 
     application of paragraph (1) in any case in which the local 
     educational agency--
       (A) is located in a rural, sparsely-populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.
       (3) Redistribution.--Any amounts that are not allocated by 
     reason of paragraph (1) or (2) shall be redistributed to 
     local educational agencies that meet the requirements of 
     paragraph (1) or (2) in accordance with the provisions of 
     this section.
       (c) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (a), no State educational agency receiving assistance under 
     this subtitle shall allocate funds to a local educational 
     agency that serves only elementary schools, but shall 
     distribute such funds to the local educational agency or 
     regional educational agency that provides secondary school 
     services to secondary school students in the same attendance 
     area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each State educational agency shall 
     distribute the portion of funds made available for any 
     program year by such agency for secondary school vocational 
     education under section 721(b)(3)(A) to the appropriate area 
     vocational education school or educational service agency in 
     any case in which--
       (A) the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (i) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or

[[Page S 13079]]

       (ii) have entered into or will enter into a cooperative 
     arrangement for such purpose; and
       (B)(i) the area vocational education school or educational 
     service agency serves an approximately equal or greater 
     proportion of students who are individuals with disabilities 
     or are low-income than the proportion of such students 
     attending the secondary schools under the jurisdiction of all 
     of the local educational agencies sending students to the 
     area vocational education school or the educational service 
     agency; or
       (ii) the area vocational education school, educational 
     service agency, or local educational agency demonstrates that 
     the vocational education school or educational service agency 
     is unable to meet the criterion described in clause (i) due 
     to the lack of interest by students described in clause (i) 
     in attending vocational education programs in that area 
     vocational education school or educational service agency.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that will otherwise be distributed to the 
     local educational agency under this section shall be 
     allocated to the area vocational education school, the 
     educational service agency, and the local educational agency, 
     based on each school's or agency's relative share of students 
     described in paragraph (1)(B)(i) who are attending vocational 
     education programs (based, if practicable, on the average 
     enrollment for the prior 3 years); or
       (B) such amount may be allocated on the basis of an 
     agreement between the local educational agency and the area 
     vocational education school or educational service agency.
       (3) State determination.--
       (A) In general.--For the purposes of this subsection, the 
     State educational agency may determine the number of students 
     who are low-income on the basis of--
       (i) eligibility for--

       (I) free or reduced-price meals under the National School 
     Lunch Act (7 U.S.C. 1751 et seq.);
       (II) assistance under a State program funded under part A 
     of title IV of the Social Security Act;
       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the State educational agency 
     demonstrates to the satisfaction of the Federal Partnership 
     that such index is a more representative means of determining 
     such number.
       (B) Data.--If a State educational agency elects to use more 
     than 1 factor described in subparagraph (A) for purposes of 
     making the determination described in such subparagraph, the 
     State educational agency shall ensure that the data used is 
     not duplicative.
       (4) Appeals procedure.--The State educational agency shall 
     establish an appeals procedure for resolution of any dispute 
     arising between a local educational agency and an area 
     vocational education school or an educational service agency 
     with respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium.
       (5) Special rule.--Notwithstanding the provisions of 
     paragraphs (1), (2), (3), and (4), any local educational 
     agency receiving an allocation that is not sufficient to 
     conduct a secondary school vocational education program of 
     sufficient size, scope, and quality to be effective may--
       (A) form a consortium or enter into a cooperative agreement 
     with an area vocational education school or educational 
     service agency offering secondary school vocational education 
     programs of sufficient size, scope, and quality to be 
     effective and that are accessible to students who are 
     individuals with disabilities or are low-income, and are 
     served by such local educational agency; and
       (B) transfer such allocation to the area vocational 
     education school or educational service agency.
       (e) Special Rule.--Each State educational agency 
     distributing funds under this section shall treat a secondary 
     school funded by the Bureau of Indian Affairs within the 
     State as if such school were a local educational agency 
     within the State for the purpose of receiving a distribution 
     under this section.

     SEC. 723. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--
       (1) In general.--Except as provided in subsection (b) and 
     section 725, each State educational agency, using the portion 
     of the funds made available for any program year by such 
     agency for postsecondary and adult vocational education under 
     section 721(b)(3)(A)--
       (A) shall reserve funds to carry out subsection (d); and
       (B) shall distribute the remainder to eligible institutions 
     or consortia of the institutions within the State.
       (2) Formula.--Each such eligible institution or consortium 
     shall receive an amount for the program year (from funds made 
     available for the corresponding fiscal year, as determined 
     under section 734(c)) from such remainder bears the same 
     relationship to such remainder as the number of individuals 
     who are Pell Grant recipients or recipients of assistance 
     from the Bureau of Indian Affairs and are enrolled in 
     programs offered by such institution or consortium for the 
     preceding fiscal year bears to the number of all such 
     individuals who are enrolled in any such program within the 
     State for such preceding year.
       (3) Consortium requirements.--In order for a consortium of 
     eligible institutions described in paragraph (1) to receive 
     assistance pursuant to such paragraph such consortium shall 
     operate joint projects that--
       (A) provide services to all postsecondary institutions 
     participating in the consortium; and
       (B) are of sufficient size, scope, and quality to be 
     effective.
       (b) Waiver for More Equitable Distribution.--The Federal 
     Partnership may waive the application of subsection (a) in 
     the case of any State educational agency that submits to the 
     Federal Partnership an application for such a waiver that--
       (1) demonstrates that the formula described in subsection 
     (a) does not result in a distribution of funds to the 
     institutions or consortia within the State that have the 
     highest numbers of low-income individuals and that an 
     alternative formula will result in such a distribution; and
       (2) includes a proposal for an alternative formula that may 
     include criteria relating to the number of individuals 
     attending the institutions or consortia within the State 
     who--
       (A) receive need-based postsecondary financial aid provided 
     from public funds;
       (B) are members of families receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act;
       (C) are enrolled in postsecondary educational institutions 
     that--
       (i) are funded by the State;
       (ii) do not charge tuition; and
       (iii) serve only low-income students;
       (D) are enrolled in programs serving low-income adults; or
       (E) are Pell Grant recipients.
       (c) Minimum Amount.--
       (1) In general.--No distribution of funds provided to any 
     institution or consortium for a program year under this 
     section shall be for an amount that is less than $50,000.
       (2) Redistribution.--Any amounts that are not distributed 
     by reason of paragraph (1) shall be redistributed to eligible 
     institutions or consortia in accordance with the provisions 
     of this section.
       (d) Special Rule for Criminal Offenders.--Each State 
     educational agency shall distribute the funds reserved under 
     subsection (a)(1)(A) to 1 or more State corrections agencies 
     to enable the State corrections agencies to administer 
     vocational education programs for juvenile and adult criminal 
     offenders in correctional institutions in the State, 
     including correctional institutions operated by local 
     authorities.
       (e) Definition.--For the purposes of this section--
       (1) the term ``eligible institution'' means a postsecondary 
     educational institution, a local educational agency serving 
     adults, or an area vocational education school serving adults 
     that offers or will offer a program that seeks to receive 
     financial assistance under this section;
       (2) the term ``low-income'', used with respect to a person, 
     means a person who is determined under guidelines developed 
     by the Federal Partnership to be low-income, using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the determination; and
       (3) the term ``Pell Grant recipient'' means a recipient of 
     financial aid under subpart 1 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

     SEC. 724. DISTRIBUTION FOR ADULT EDUCATION.

       (a) In General.--Except as provided in subsection (b)(3), 
     from the amount made available by a State educational agency 
     for adult education under section 721(b)(3)(B) for a program 
     year, such agency shall award grants, on a competitive basis, 
     to local educational agencies, correctional education 
     agencies, community-based organizations of demonstrated 
     effectiveness, volunteer literacy organizations, libraries, 
     public or private nonprofit agencies, postsecondary 
     educational institutions, public housing authorities, and 
     other nonprofit institutions that have the ability to provide 
     literacy services to adults and families, or consortia of 
     agencies, organizations, or institutions described in this 
     subsection, to enable such agencies, organizations, 
     institutions, and consortia to establish or expand adult 
     education programs.
       (b) Grant Requirements.--
       (1) Access.--Each State educational agency making funds 
     available for any program year for adult education under 
     section 721(b)(3)(B) shall ensure that the entities described 
     in subsection (a) will be provided direct and equitable 
     access to all Federal funds provided under this section.
       (2) Considerations.--In awarding grants under this section, 
     the State educational agency shall consider--
       (A) the past effectiveness of applicants in providing 
     services (especially with respect to recruitment and 
     retention of educationally disadvantaged adults and the 
     learning gains demonstrated by such adults);
       (B) the degree to which an applicant will coordinate and 
     utilize other literacy and social services available in the 
     community; and
       (C) the commitment of the applicant to serve individuals in 
     the community who are most in need of literacy services.

[[Page S 13080]]

       (3) Consortia.--A State educational agency may award a 
     grant under subsection (a) to a consortium that includes an 
     entity described in subsection (a) and a for-profit agency, 
     organization, or institution, if such agency, organization, 
     or institution--
       (A) can make a significant contribution to carrying out the 
     purposes of this title; and
       (B) enters into a contract with the entity described in 
     subsection (a) for the purpose of establishing or expanding 
     adult education programs.
       (c) Local Administrative Costs Limits.--
       (1) In general.--Except as provided in paragraph (2), of 
     the funds provided under this section by a State educational 
     agency to an agency, organization, institution, or consortium 
     described in subsection (a), at least 95 percent shall be 
     expended for provision of adult education instructional 
     activities. The remainder shall be used for planning, 
     administration, personnel development, and interagency 
     coordination.
       (2) Special rule.--In cases where the cost limits described 
     in paragraph (1) will be too restrictive to allow for 
     adequate planning, administration, personnel development, and 
     interagency coordination supported under this section, the 
     State educational agency shall negotiate with the agency, 
     organization, institution, or consortium described in 
     subsection (a) in order to determine an adequate level of 
     funds to be used for noninstructional purposes.

     SEC. 725. SPECIAL RULE FOR MINIMAL ALLOCATION.

       (a) General Authority.--For any program year for which a 
     minimal amount is made available by a State educational 
     agency for distribution under section 722 or 723 such agency 
     may, notwithstanding the provisions of section 722 or 723, 
     respectively, in order to make a more equitable distribution 
     of funds for programs serving the highest numbers of low-
     income individuals (as defined in section 723(e)), distribute 
     such minimal amount--
       (1) on a competitive basis; or
       (2) through any alternative method determined by the State 
     educational agency.
       (b) Minimal Amount.--For purposes of this section, the term 
     ``minimal amount'' means not more than 15 percent of the 
     total amount made available by the State educational agency 
     under section 721(b)(3)(A) for section 722 or 723, 
     respectively, for such program year.

     SEC. 726. REDISTRIBUTION.

       (a) In General.--In any program year that an entity 
     receiving financial assistance under section 722 or 723 does 
     not expend all of the amounts distributed to such entity for 
     such year under section 722 or 723, respectively, such entity 
     shall return any unexpended amounts to the State educational 
     agency for distribution under section 722 or 723, 
     respectively.
       (b) Redistribution of Amounts Returned Late in a Program 
     Year.--In any program year in which amounts are returned to 
     the State educational agency under subsection (a) for 
     programs described in section 722 or 723 and the State 
     educational agency is unable to redistribute such amounts 
     according to section 722 or 723, respectively, in time for 
     such amounts to be expended in such program year, the State 
     educational agency shall retain such amounts for distribution 
     in combination with amounts provided under such section for 
     the following program year.
     SEC. 727. LOCAL APPLICATION FOR WORKFORCE EDUCATION 
                   ACTIVITIES.

       (a) In General.--
       (1) In general.--Each eligible entity desiring financial 
     assistance under this subtitle for workforce education 
     activities shall submit an application to the State 
     educational agency at such time, in such manner and 
     accompanied by such information as such agency (in 
     consultation with such other educational entities as the 
     State educational agency determines to be appropriate) may 
     require. Such application shall cover the same period of time 
     as the period of time applicable to the State workforce 
     development plan.
       (2) Definition.--For the purpose of this section the term 
     ``eligible entity'' means an entity eligible for financial 
     assistance under section 722, 723, or 724 from a State 
     educational agency.
       (b) Contents.--Each application described in subsection (a) 
     shall, at a minimum--
       (1) describe how the workforce education activities 
     required under section 716(b), and other workforce education 
     activities, will be carried out with funds received under 
     this subtitle;
       (2) describe how the activities to be carried out relate to 
     meeting the State goals, and reaching the State benchmarks, 
     concerning workforce education activities;
       (3) describe how the activities to be carried out are an 
     integral part of the comprehensive efforts of the eligible 
     entity to improve education for all students and adults;
       (4) describe the process that will be used to independently 
     evaluate and continuously improve the performance of the 
     eligible entity; and
       (5) describe how the eligible entity will coordinate the 
     activities of the entity with the activities of the local 
     workforce development board, if any, in the substate area.

     SEC. 728. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE 
                   DEVELOPMENT BOARDS.

       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 714 to the Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local partnerships (or, where 
     established, local workforce development boards described in 
     subsection (b)).
       (2) Local partnerships.--
       (A) In general.--A local partnership referred to in 
     paragraph (1) shall be established by the local chief elected 
     official, in accordance with subparagraphs (B) and (C), and 
     shall consist of individuals representing business, industry, 
     and labor, local secondary schools, local postsecondary 
     education institutions, local adult education providers, 
     local elected officials, rehabilitation agencies and 
     organizations, community-based organizations, and veterans, 
     within the appropriate substate area.
       (B) Multiple jurisdictions.--In any case in which there are 
     2 or more units of general local government in the substate 
     area involved, the chief elected official of each such unit 
     shall appoint members of the local partnership in accordance 
     with an agreement entered into by such chief elected 
     officials. In the absence of such an agreement, such 
     appointments shall be made by the Governor of the State 
     involved from the individuals nominated or recommended by the 
     chief elected officials.
       (C) Selection of business and industry representatives.--
     Individuals representing business and industry in the local 
     partnership shall be appointed by the chief elected official 
     from nominations submitted by business organizations in the 
     substate area involved. Such individuals shall reasonably 
     represent the industrial and demographic composition of the 
     business community. Where possible, at least 50 percent of 
     such business and industry representatives shall be 
     representatives of small business.
       (3) Business and industry involvement.--The business and 
     industry representatives shall have a lead role in the 
     design, management, and evaluation of the activities to be 
     carried out in the substate area under the local agreement.
       (4) Contents.--
       (A) State goals and state benchmarks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this subtitle will be 
     spent to meet the State goals and reach the State benchmarks 
     in a manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local partnership (or, where established, the 
     local workforce development board);
     collaborated in reaching the agreement.
       (5) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local partnership (or, where established, the local 
     workforce development board), the Governor shall notify the 
     partnership or board, as appropriate, and provide the 
     partnership or board, as appropriate, with the opportunity to 
     comment, not later than 30 days after the date of the 
     notification, on the manner in which funds allocated to such 
     substate area will be spent to meet the State goals and reach 
     the State benchmarks.
       (6) Exception.--A State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--
       (1) In general.--Each State may facilitate the 
     establishment of local workforce development boards in each 
     substate area to set policy and provide oversight over the 
     workforce development activities in the substate area.
       (2) Membership.--
       (A) State criteria.--The Governor shall establish criteria 
     for use by local chief elected officials in each substate 
     area in the selection of members of the local workforce 
     development boards, in accordance with the requirements of 
     subparagraph (B).
       (B) Representation requirement.--Such criteria shall 
     require, at a minimum, that a local workforce development 
     board consist of--
       (i) representatives of business and industry in the 
     substate area, who shall constitute a majority of the board;
       (ii) representatives of labor, workers, and community-based 
     organizations, who shall constitute not less than 25 percent 
     of the members of the board;
       (iii) representatives of local secondary schools, 
     postsecondary education institutions, and adult education 
     providers;
       (iv) representatives of veterans; and
       (v) 1 or more individuals with disabilities, or their 
     representatives.
       (C) Chair.--Each local workforce development board shall 
     select a chairperson from among the members of the board who 
     are representatives of business and industry.
       (3) Conflict of interest.--No member of a local workforce 
     development board shall vote on a matter relating to the 
     provision of services by the member (or any organization that 
     the member directly represents) or vote on a matter that 
     would provide direct financial benefit to such member or the 
     immediate family of such member or engage in any other 
     activity determined by the Governor to constitute a conflict 
     of interest.

[[Page S 13081]]

       (4) Functions.--The functions of the local workforce 
     development board shall include--
       (A) submitting to the Governor a single comprehensive 3-
     year strategic plan for workforce development activities in 
     the substate area that includes information--
       (i) identifying the workforce development needs of local 
     industries, students, jobseekers, and workers;
       (ii) identifying the workforce development activities to be 
     carried out in the substate area with funds received through 
     the allotment made to the State under section 712, to meet 
     the State goals and reach the State benchmarks; and
       (iii) identifying how the local workforce development board 
     will obtain the active and continuous participation of 
     business, industry, and labor in the development and 
     continuous improvement of the workforce development 
     activities carried out in the substate area;
       (B) entering into local agreements with the Governor as 
     described in subsection (a);
       (C) overseeing the operations of the one-stop delivery of 
     core services described in section 716(a)(2) in the substate 
     area, including the responsibility to--
       (i) designate local entities to operate the one-stop 
     delivery in the substate area, consistent with the criteria 
     referred to in section 716(a)(2); and
       (ii) develop and approve the budgets and annual operating 
     plans of the providers of the one-stop delivery; and
       (D) submitting annual reports to the Governor on the 
     progress being made in the substate area toward meeting the 
     State goals and reaching the State benchmarks.
       (5) Consultation.--A local workforce development board that 
     serves a substate area shall conduct the functions described 
     in paragraph (4) in consultation with the chief elected 
     officials in the substate area.
       (c) Economic Development Activities.--A State shall be 
     eligible to use the funds made available through the flex 
     account for flexible workforce activities to carry out 
     economic development activities if--
       (1) the boards described in section 715 and subsection (b) 
     are established in the State; or
       (2) in the case of a State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle, the board described in section 715 is established 
     in the State.

     SEC. 729. CONSTRUCTION.

       Nothing in this title shall be construed--
       (1) to prohibit a local educational agency (or a consortium 
     thereof) that receives assistance under section 722, from 
     working with an eligible entity (or consortium thereof) that 
     receives assistance under section 723, to carry out secondary 
     school vocational education activities in accordance with 
     this title; or
       (2) to prohibit an eligible entity (or consortium thereof) 
     that receives assistance under section 723, from working with 
     a local educational agency (or consortium thereof) that 
     receives assistance under section 722, to carry out 
     postsecondary and adult vocational education activities in 
     accordance with this title.

                       CHAPTER 3--ADMINISTRATION

     SEC. 731. ACCOUNTABILITY.

       (a) Report.--
       (1) In general.--Each State that receives an allotment 
     under section 712 shall annually prepare and submit to the 
     Federal Partnership, a report that states how the State is 
     performing on State benchmarks specified in this section, 
     which relate to workforce development activities carried out 
     through the statewide system of the State. In preparing the 
     report, the State may include information on such additional 
     benchmarks as the State may establish to meet the State 
     goals.
       (2) Consolidated report.--In lieu of submitting separate 
     reports under paragraph (1) and section 409(a) of the Social 
     Security Act, the State may prepare a consolidated report. 
     Any consolidated report prepared under this paragraph shall 
     contain the information described in paragraph (1) and 
     subsections (a) through (h) of section 409 of the Social 
     Security Act. The State shall submit any consolidated report 
     prepared under this paragraph to the Federal Partnership, the 
     Secretary of Agriculture, and the Secretary of Health and 
     Human Services, on the dates specified in section 409(a) of 
     the Social Security Act.
       (b) Goals.--
       (1) Meaningful employment.--Each statewide system supported 
     by an allotment under section 712 shall be designed to meet 
     the goal of assisting participants in obtaining meaningful 
     unsubsidized employment opportunities in the State.
       (2) Education.--Each statewide system supported by an 
     allotment under section 712 shall be designed to meet the 
     goal of enhancing and developing more fully the academic, 
     occupational, and literacy skills of all segments of the 
     population of the State.
       (c) Benchmarks.--
       (1) Meaningful employment.--To be eligible to receive an 
     allotment under section 712, a State shall develop, in 
     accordance with paragraph (5), and identify in the State plan 
     of the State, proposed quantifiable benchmarks to measure the 
     statewide progress of the State toward meeting the goal 
     described in subsection (b)(1), which shall include, at a 
     minimum, measures of--
       (A) placement in unsubsidized employment of participants;
       (B) retention of the participants in such employment (12 
     months after completion of the participation); and
       (C) increased earnings for the participants.
       (2) Education.--To be eligible to receive an allotment 
     under section 712, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure the statewide 
     progress of the State toward meeting the goal described in 
     subsection (b)(2), which shall include, at a minimum, 
     measures of--
       (A) student mastery of academic knowledge and work 
     readiness skills;
       (B) student mastery of occupational and industry-recognized 
     skills according to skill proficiencies for students in 
     career preparation programs;
       (C) placement in, retention in, and completion of secondary 
     education (as determined under State law) and postsecondary 
     education, and placement and retention in employment and in 
     military service; and
       (D) mastery of the literacy, knowledge, and skills adults 
     need to be productive and responsible citizens and to become 
     more actively involved in the education of their children.
       (3) Populations.--To be eligible to receive an allotment 
     under section 712, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure progress toward 
     meeting the goals described in subsection (b) for populations 
     including, at a minimum--
       (A) welfare recipients (including a benchmark for welfare 
     recipients described in section 3(36)(B));
       (B) individuals with disabilities;
       (C) older workers;
       (D) at-risk youth;
       (E) dislocated workers; and
       (F) veterans.
       (4) Special rule.--If a State has developed for all 
     students in the State performance indicators, attainment 
     levels, or assessments for skills according to challenging 
     academic, occupational, or industry-recognized skill 
     proficiencies, the State shall use such performance 
     indicators, attainment levels, or assessments in measuring 
     the progress of all students served under this title in 
     attaining the skills.
       (5) Negotiations.--
       (A) Initial determination.--On receipt of a State plan 
     submitted under section 714, the Federal Partnership shall, 
     not later than 30 days after the date of the receipt, 
     determine--
       (i) how the proposed State benchmarks identified by the 
     State in the State plan compare to the model benchmarks 
     established by the Federal Partnership under section 
     772(b)(2);
       (ii) how the proposed State benchmarks compare with State 
     benchmarks proposed by other States in their State plans; and
       (iii) whether the proposed State benchmarks, taken as a 
     whole, are sufficient--

       (I) to enable the State to meet the State goals; and
       (II) to make the State eligible for an incentive grant 
     under section 732(a).

       (B) Notification.--The Federal Partnership shall 
     immediately notify the State of the determinations referred 
     to in subparagraph (A). If the Federal Partnership determines 
     that the proposed State benchmarks are not sufficient to make 
     the State eligible for an incentive grant under section 
     732(a), the Federal Partnership shall provide the State with 
     guidance on the steps the State may take to allow the State 
     to become eligible for the grant.
       (C) Revision.--Not later than 30 days after the date of 
     receipt of the notification referred to in subparagraph (B), 
     the State may revise some or all of the State benchmarks 
     identified in the State plan in order to become eligible for 
     the incentive grant or provide reasons why the State 
     benchmarks should be sufficient to make the State eligible 
     for the incentive grant.
       (D) Determination.--After reviewing any revised State 
     benchmarks or information submitted by the State in 
     accordance with subparagraph (C), the Federal Partnership 
     shall make a determination on the eligibility of the State 
     for the incentive grant, as described in paragraph (6), and 
     provide advice to the Secretary of Labor and the Secretary of 
     Education. The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may award a grant to the State under section 
     732(a).
       (6) Incentive grants.--Each State that sets high benchmarks 
     under paragraph (1), (2), or (3) and reaches or exceeds the 
     benchmarks, as determined by the Federal Partnership, shall 
     be eligible to receive an incentive grant under section 
     732(a).
       (7) Sanctions.--A State that has failed to demonstrate 
     sufficient progress toward reaching the State benchmarks 
     established under this subsection for the 3 years covered by 
     a State plan described in section 714, as determined by the 
     Federal Partnership, may be subject to sanctions under 
     section 732(b).
       (d) Job Placement Accountability System.--
       (1) In general.--Each State that receives an allotment 
     under section 712 shall establish a job placement 
     accountability system, which will provide a uniform set of 
     data to track the progress of the State toward reaching the 
     State benchmarks.
       (2) Data.--
       (A) In general.--In order to maintain data relating to the 
     measures described in subsection (c)(1), each such State 
     shall establish 

[[Page S 13082]]
     a job placement accountability system using quarterly wage records 
     available through the unemployment insurance system. The 
     State agency or entity within the State responsible for labor 
     market information, as designated in section 773(c)(1)(B), in 
     conjunction with the Commissioner of Labor Statistics, shall 
     maintain the job placement accountability system and match 
     information on participants served by the statewide systems 
     of the State and other States with quarterly employment and 
     earnings records.
       (B) Reimbursement.--Each local entity that carries out 
     workforce employment activities or workforce education 
     activities and that receives funds under this subtitle shall 
     provide information regarding the social security numbers of 
     the participants served by the entity and such other 
     information as the State may require to the State agency or 
     entity within the State responsible for labor market 
     information, as designated in section 773(c)(1)(B).
       (C) Confidentiality.--The State agency or entity within the 
     State responsible for labor market information, as designated 
     in section 773(c)(1)(B), shall protect the confidentiality of 
     information obtained through the job placement accountability 
     system through the use of recognized security procedures.
       (e) Individual Accountability.--Each State that receives an 
     allotment under section 712 shall devise and implement 
     procedures to provide, in a timely manner, information on 
     participants in activities carried out through the statewide 
     system who are participating as a condition of receiving 
     welfare assistance. The procedures shall require that the 
     State provide the information to the State and local agencies 
     carrying out the programs through which the welfare 
     assistance is provided, in a manner that ensures that the 
     agencies can monitor compliance with the conditions regarding 
     the receipt of the welfare assistance.

     SEC. 732. INCENTIVES AND SANCTIONS.

       (a) Incentives.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, may award incentive grants of not more than 
     $15,000,000 per program year to a State that--
       (A) reaches or exceeds State benchmarks established under 
     section 731(c), with an emphasis on the benchmarks 
     established under section 731(c)(3), in accordance with 
     section 731(c)(6); or
       (B) demonstrates to the Federal Partnership that the State 
     has made substantial reductions in the number of adult 
     recipients of assistance, as defined in section 712(b)(1)(A), 
     resulting from increased placement of such adult recipients 
     in unsubsidized employment.
       (2) Use of funds.--A State that receives such a grant may 
     use the funds made available through the grant to carry out 
     any workforce development activities authorized under this 
     title.
       (b) Sanctions.--
       (1) Failure to demonstrate sufficient progress.--If the 
     Federal Partnership determines, after notice and an 
     opportunity for a hearing, that a State has failed to 
     demonstrate sufficient progress toward reaching the State 
     benchmarks established under section 731(c) for the 3 years 
     covered by a State plan described in section 714, the Federal 
     Partnership shall provide advice to the Secretary of Labor 
     and the Secretary of Education. The Secretary of Labor and 
     the Secretary of Education, acting jointly on the advice of 
     the Federal Partnership, may reduce the allotment of the 
     State under section 712 by not more than 10 percent per 
     program year for not more than 3 years. The Federal 
     Partnership may determine that the failure of the State to 
     demonstrate such progress is attributable to the workforce 
     employment activities, workforce education activities, or 
     flexible workforce activities, of the State and provide 
     advice to the Secretary of Labor and the Secretary of 
     Education. The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may decide to reduce only the portion of the 
     allotment for such activities.
       (2) Expenditure contrary to title.--If the Governor of a 
     State determines that a local entity that carries out 
     workforce employment activities in a substate area of the 
     State has expended funds made available under this title in a 
     manner contrary to the purposes of this title, and such 
     expenditures do not constitute fraudulent activity, the 
     Governor may deduct an amount equal to the funds from a 
     subsequent program year allocation to the substate area.
       (c) Funds Resulting From Reduced Allotments.--The Secretary 
     of Labor and the Secretary of Education, acting jointly on 
     the advice of the Federal Partnership, may use an amount 
     retained as a result of a reduction in an allotment made 
     under subsection (b)(1) to award an incentive grant under 
     subsection (a).

     SEC. 733. UNEMPLOYMENT TRUST FUND.

       (a) In General.--Section 901(c) of the Social Security Act 
     (42 U.S.C. 1101(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by striking clause (ii) and inserting the following:
       ``(ii) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B), of 
     the Workforce Development Act of 1995, and''; and
       (ii) in clause (iii), by striking ``carrying into effect 
     section 4103'' and ``carrying out the activities described in 
     sections 4103, 4103A, 4104, and 4104A''; and
       (B) in subparagraph (B)--
       (i) in the matter preceding clause (i), by striking 
     ``Department of Labor'' and inserting ``Department of Labor 
     or the Workforce Development Partnership, as appropriate,''; 
     and
       (ii) by striking clause (iii) and inserting the following:
       ``(iii) the Workforce Development Act of 1995,''; and
       (2) in the first sentence of paragraph (4), by striking 
     ``the total cost'' and all that follows through ``the 
     President determines'' and inserting ``the total cost of 
     administering the statewide workforce development systems, to 
     the extent the systems are used to carry out activities 
     described in section 773, or in any of clauses (ii) through 
     (v) of section 716(a)(2)(B), of the Workforce Development Act 
     of 1995, and of the necessary expenses of the Workforce 
     Development Partnership for the performance of the functions 
     of the partnership under such Act, as the President 
     determines''.
       (b) Guam; United States Virgin Islands.--From the total 
     amount made available under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) (referred to in 
     this section as the ``total amount'') for each fiscal year, 
     the Secretary of Labor and the Secretary of Education, acting 
     jointly, shall first allot to Guam and the United States 
     Virgin Islands an amount that, in relation to the total 
     amount for the fiscal year, is equal to the allotment 
     percentage that each received of amounts available under 
     section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) in fiscal 
     year 1983.
       (c) States.--
       (1) Allotments.--
       (A) In general.--Subject to paragraphs (2) and (3), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, shall (after making the allotments required by 
     subsection (b)) allot the remainder of the total amount for 
     each fiscal year among the States as follows:
       (i) Civilian labor force.--Two-thirds of such remainder 
     shall be allotted on the basis of the relative number of 
     individuals in the civilian labor force in each State as 
     compared to the total number of such individuals in all 
     States.
       (ii) Unemployed individuals.--One-third of such remainder 
     shall be allotted on the basis of the relative number of 
     unemployed individuals in each State as compared to the total 
     number of such individuals in all States.
       (B) Calculation.--For purposes of this paragraph, the 
     number of individuals in the civilian labor force and the 
     number of unemployed individuals shall be based on data for 
     the most recent calendar year available, as determined by the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly.
       (2) Minimum percentage.--No State allotment under this 
     section for any fiscal year shall be a smaller percentage of 
     the total amount for the fiscal year than 90 percent of the 
     allotment percentage for the State for the fiscal year 
     preceding the fiscal year for which the determination is 
     made. For the purpose of this section, the Secretary of Labor 
     and the Secretary of Education, acting jointly, shall 
     determine the allotment percentage for each State for fiscal 
     year 1984, which shall be the percentage that the State 
     received of amounts available under section 6 of the Wagner-
     Peyser Act for fiscal year 1983. For the purpose of this 
     section, for each succeeding fiscal year, the allotment 
     percentage for each such State shall be the percentage that 
     the State received of amounts available under section 6 of 
     the Wagner-Peyser Act for the preceding fiscal year.
       (3) Minimum allotment.--For each fiscal year, no State 
     shall receive a total allotment under paragraphs (1) and (2) 
     that is less than 0.28 percent of the total amount for such 
     fiscal year.
       (4) Estimates.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, shall, not later than March 15 of 
     each fiscal year, provide preliminary planning estimates and 
     shall, not later than May 15 of each fiscal year, provide 
     final planning estimates, showing the projected allocation 
     for each State for the following year.
       (5) Definition.--Notwithstanding section 703, as used in 
     paragraphs (2) through (4), the term ``State'' means each of 
     the several States of the United States, the District of 
     Columbia, the Commonwealth of Puerto Rico, Guam, and United 
     States Virgin Islands.
       (d) Effective Date.--This section, and the amendments made 
     by this section, shall take effect July 1, 1998.

     SEC. 734. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this title (other than subtitle C) $6,127,000,000 
     for each of fiscal years 1998 through 2001.
       (b) Reservations.--Of the amount appropriated under 
     subsection (a)--
       (1) not more than 1.25 percent shall be reserved for 
     carrying out section 717;
       (2) not more than 0.2 percent shall be reserved for 
     carrying out section 718;
       (3) 4.3 percent shall be reserved for making incentive 
     grants under section 732(a) and for the administration of 
     this title;
       (4) not more than 1.4 percent shall be reserved for 
     carrying out section 773; 

[[Page S 13083]]

       (5) 0.15 percent shall be reserved for carrying out 
     sections 774 and 775 and the National Literacy Act of 1991 
     (20 U.S.C. 1201 note);
       (6) not more than 6.7 percent shall be reserved for 
     carrying out section 775A; and
       (7) the remainder shall be reserved for making allotments 
     under section 712.
       (c) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities under this title shall be available 
     for obligation only on the basis of a program year. The 
     program year shall begin on July 1 in the fiscal year for 
     which the appropriation is made.
       (2) Administration.--Funds obligated for any program year 
     may be expended by each recipient during the program year and 
     the 2 succeeding program years and no amount shall be 
     deobligated on account of a rate of expenditure that is 
     consistent with the provisions of the State plan specified in 
     section 714 that relate to workforce employment activities.

     SEC. 735. EFFECTIVE DATE.

       This subtitle shall take effect July 1, 1998.
 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 741. PURPOSES.

       The purposes of this subtitle are--
       (1) to maintain a Job Corps for at-risk youth as part of 
     statewide systems;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of residential and 
     nonresidential Job Corps centers in which enrollees will 
     participate in intensive programs of workforce development 
     activities;
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps; and
       (5) to assist at-risk youth who need and can benefit from 
     an unusually intensive program, operated in a group setting, 
     to become more responsible, employable, and productive 
     citizens.

     SEC. 742. DEFINITIONS.

       As used in this subtitle:
       (1) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24;
       (B) is low-income (as defined in section 723(e));
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) Involved in the juvenile justice system.
       (vi) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the corps 
     described in section 744.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 744.

     SEC. 743. AUTHORITY OF GOVERNOR.

       The duties and powers granted to a State by this subtitle 
     shall be considered to be granted to the Governor of the 
     State.

                          CHAPTER 2--JOB CORPS

     SEC. 744. GENERAL AUTHORITY.

       If a State receives an allotment under section 759, and a 
     center located in the State received assistance under part B 
     of title IV of the Job Training Partnership Act for fiscal 
     year 1996 and was not closed in accordance with section 755, 
     the State shall use a portion of the funds made available 
     through the allotment to maintain the center, and carry out 
     activities described in this subtitle for individuals 
     enrolled in a Job Corps and assigned to the center.

     SEC. 745. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The State shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps.
       (2) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) one-stop career centers;
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (3) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     can participate successfully in group situations and 
     activities, is not likely to engage in behavior that would 
     prevent other enrollees from receiving the benefit of the 
     program or be incompatible with the maintenance of sound 
     discipline and satisfactory relationships between the Job 
     Corps center to which the individual might be assigned and 
     surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.
       (c) Individuals Eligible.--To be eligible to become an 
     enrollee, an individual shall be an at-risk youth.

     SEC. 746. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--
       (1) In general.--Except as provided in paragraph (2), the 
     State shall assign an enrollee to the Job Corps center within 
     the State that is closest to the residence of the enrollee.
       (2) Agreements with other states.--The State may enter into 
     agreements with 1 or more States to enroll individuals from 
     the States in the Job Corps and assign the enrollees to Job 
     Corps centers in the State.

     SEC. 747. JOB CORPS CENTERS.

       (a) Development.--The State shall enter into an agreement 
     with a Federal, State, or local agency, which may be a State 
     board or agency that operates or wishes to develop an area 
     vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     establishment and operation of a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 748.
       (c) Civilian Conservation Centers.--The Job Corps centers 
     may include Civilian Conservation Centers, located primarily 
     in rural areas, which shall provide, in addition to other 
     training and assistance, programs of work experience to 
     conserve, develop, or manage public natural resources or 
     public recreational areas or to develop community projects in 
     the public interest.
       (d) Job Corps Operators.--To be eligible to receive funds 
     under this chapter, an entity who entered into a contract 
     with the Secretary of Labor that is in effect on the 
     effective date of this section to carry out activities 
     through a center under part B of title IV of the Job Training 
     Partnership Act (as in effect on the day before the effective 
     date of this section), shall enter into a contract with the 
     State in which the center is located that contains provisions 
     substantially similar to the provisions of the contract with 
     the Secretary of Labor, as determined by the State.

     SEC. 748. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     716(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the enrollees, 
     including providing work-based learning throughout the 
     enrollment of the enrollees and assisting the enrollees in 
     obtaining meaningful unsubsidized employment on completion of 
     their enrollment.
       (b) Arrangements.--The State shall arrange for enrollees 
     assigned to Job Corps centers in the State to receive 
     workforce development activities through the statewide 
     system, including workforce development activities provided 
     through local public or private educational agencies, 
     vocational educational institutions, or technical institutes.
       (c) Job Placement Accountability.--Each Job Corps center 
     located in a State shall be connected to the job placement 
     accountability system of the State described in section 
     731(d).

     SEC. 749. SUPPORT.

       The State shall provide enrollees assigned to Job Corps 
     centers in the State with such personal allowances as the 
     State may determine to be necessary or appropriate to meet 
     the needs of the enrollees.

     SEC. 750. OPERATING PLAN.

       To be eligible to operate a Job Corps center and receive 
     assistance under section 759 for program year 1998 or any 
     subsequent program year, an entity shall prepare and submit, 
     to the Governor of the State in which the center is located, 
     and obtain the approval of the Governor for, an operating 
     plan that shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan for 
     the State submitted under section 714;
       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 716(a)(2) by the State.

     SEC. 751. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The State shall provide, 
     and directors of Job Corps center shall stringently enforce, 
     standards of conduct within the centers. Such 

[[Page S 13084]]
     standards of conduct shall include provisions forbidding violence, drug 
     abuse, and other criminal activity.
       (b) Disciplinary Measures.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Corps if the director determines that the retention of the 
     enrollee in the Corps will jeopardize the enforcement of such 
     standards or diminish the opportunities of other enrollees. 
     If the director determines that an enrollee has engaged in an 
     incident involving violence, drug abuse, or other criminal 
     activity, the director shall immediately dismiss the enrollee 
     from the Corps.
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the State.

     SEC. 752. COMMUNITY PARTICIPATION.

       The State shall encourage and cooperate in activities to 
     establish a mutually beneficial relationship between Job 
     Corps centers in the State and nearby communities. The 
     activities may include the use of any local workforce 
     development boards established in the State under section 
     728(b) to provide a mechanism for joint discussion of common 
     problems and for planning programs of mutual interest.

     SEC. 753. COUNSELING AND PLACEMENT.

       The State shall ensure that enrollees assigned to Job Corps 
     centers in the State receive counseling and job placement 
     services, which shall be provided, to the maximum extent 
     practicable, through the delivery of core services described 
     in section 716(a)(2).

     SEC. 754. LEASES AND SALES OF CENTERS.

       (a) Leases.--
       (1) In general.--The Secretary of Labor shall offer to 
     enter into a lease with each State that has an approved State 
     plan submitted under section 714 and in which 1 or more Job 
     Corps centers are located.
       (2) Nominal consideration.--Under the terms of the lease, 
     the Secretary of Labor shall lease the Job Corps centers in 
     the State to the State in return for nominal consideration.
       (3) Indemnity agreement.--To be eligible to lease such a 
     center, a State shall enter into an agreement to hold 
     harmless and indemnify the United States from any liability 
     or claim for damages or injury to any person or property 
     arising out of the lease.
       (b) Sales.--Notwithstanding the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
     the Secretary of Labor shall offer each State described in 
     subsection (a)(1) the opportunity to purchase the Job Corps 
     centers in the State in return for nominal consideration.

     SEC. 755. CLOSURE OF JOB CORPS CENTERS.

       (a) National Job Corps Audit.--Not later than March 31, 
     1997, the Federal Partnership shall conduct an audit of the 
     activities carried out under part B of title IV of the Job 
     Training Partnership Act (29 U.S.C. 1691 et seq.), and submit 
     to the appropriate committees of Congress a report containing 
     the results of the audit, including information indicating--
       (1) the amount of funds expended for fiscal year 1996 to 
     carry out activities under such part, for each State and for 
     the United States;
       (2) for each Job Corps center funded under such part 
     (referred to in this subtitle as a ``Job Corps center''), the 
     amount of funds expended for fiscal year 1996 under such part 
     to carry out activities related to the direct operation of 
     the center, including funds expended for student training, 
     outreach or intake activities, meals and lodging, student 
     allowances, medical care, placement or settlement activities, 
     and administration;
       (3) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part through contracts to 
     carry out activities not related to the direct operation of 
     the center, including funds expended for student travel, 
     national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part for facility 
     construction, rehabilitation, and acquisition expenses; and
       (5) the amount of funds required to be expended under such 
     part to complete each new or proposed Job Corps center, and 
     to rehabilitate and repair each existing Job Corps center, as 
     of the date of the submission of the report.
       (b) Recommendations of National Board.--
       (1) Recommendations.--The National Board shall, based on 
     the results of the audit described in subsection (a), make 
     recommendations to the Secretary of Labor, including 
     identifying 25 Job Corps centers to be closed by September 
     30, 1997.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the National 
     Board shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the audit described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the audit 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the National Board may determine to be 
     appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the National Board shall not recommend that 
     the Secretary of Labor close the only Job Corps center in a 
     State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the National Board shall not evaluate the center under 
     this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the National 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the National Board resulting from the audit 
     described in subsection (a) together with the recommendations 
     described in paragraph (1).
       (c) Closure.--The Secretary of Labor shall, after reviewing 
     the report submitted under subsection (b)(3), close 25 Job 
     Corps centers by September 30, 1997.

     SEC. 756. INTERIM OPERATING PLANS FOR JOB CORPS CENTERS.

       Part B of title IV of the Job Training Partnership Act (29 
     U.S.C. 1691 et seq.) is amended by inserting after section 
     439 the following section:

     ``SEC. 439A. OPERATING PLAN.

       ``(a) Submission of Plan.--To be eligible to operate a Job 
     Corps center and receive assistance under this part for 
     fiscal year 1997, an entity shall prepare and submit to the 
     Secretary and the Governor of the State in which the center 
     is located, and obtain the approval of the Secretary for, an 
     operating plan that shall include, at a minimum, information 
     indicating--
       ``(1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the interim plan for 
     the State submitted under section 763 of the Workforce 
     Development Act of 1995;
       ``(2) the extent to which workforce employment activities 
     and workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       ``(3) an implementation strategy to ensure that all 
     enrollees assigned to the Job Corps center will have access 
     to services through the one-stop delivery of core services 
     described in section 716(a)(2) of the Workforce Development 
     Act of 1995 by the State as identified in the interim plan.
       ``(b) Submission of Comments.--Not later than 30 days after 
     receiving an operating plan described in subsection (a), the 
     Governor of the State in which the center is located may 
     submit comments on the plan to the Secretary.
       ``(c) Approval.--The Secretary shall not approve an 
     operating plan described in subsection (a) for a center if 
     the Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities to be carried out through the 
     statewide system of the State in which the center is 
     located.''.

     SEC. 757. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Interim Provisions.--Sections 754 and 755, and the 
     amendment made by section 756, shall take effect on the date 
     of enactment of this Act.

  CHAPTER 3--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

     SEC. 759. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

       (a) In General.--For program year 1998 and each subsequent 
     program year, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make allotments under subsection (c) to 
     States to assist the States in paying for the cost of 
     carrying out workforce preparation activities for at-risk 
     youth, as described in this section.
       (b) State Use of Funds.--
       (1) Core activities.--The State shall use a portion of the 
     funds made available to the State through an allotment 
     received under subsection (c) to establish and operate Job 
     Corps centers as described in chapter 2, if a 

[[Page S 13085]]
     center located in the State received assistance under part B of title 
     IV of the Job Training Partnership Act for fiscal year 1996 
     and was not closed in accordance with section 755.
       (2) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants to eligible entities, as described in 
     subsection (e), to assist the entities in carrying out 
     innovative programs to assist out-of-school at-risk youth in 
     participating in school-to-work activities;
       (B) make grants to eligible entities, as described in 
     subsection (e), to assist the entities in providing work-
     based learning as a component of school-to-work activities, 
     including summer jobs linked to year-round school-to-work 
     programs; and
       (C) carry out other workforce development activities 
     specifically for at-risk youth.
       (c) Allotments.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall allot to each State an amount equal to the 
     total of--
       (A) the amount made available to the State under paragraph 
     (2); and
       (B) the amounts made available to the State under 
     subparagraphs (C), (D), and (E) of paragraph (3).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (g) for a fiscal year, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State the 
     amount that Job Corps centers in the State expended for 
     fiscal year 1996 under part B of title IV of the Job Training 
     Partnership Act to carry out activities related to the direct 
     operation of the centers, as determined under section 
     755(a)(2).
       (3) Allotments based on populations.--
       (A) Definitions.--As used in this paragraph:
       (i) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--

       (I) is not less than age 18;
       (II) is not more than age 64; and
       (III) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.

       (ii) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (B) Total allotments.--The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall use the remainder of the funds 
     that are appropriated under subsection (g) for a fiscal year, 
     and that are not made available under paragraph (2), to make 
     amounts available under this paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     average number of unemployed individuals (as determined by 
     the Secretary of Labor for the most recent 24-month period 
     for which data are available, prior to the program year for 
     which the allotment is made) in the State bears to the 
     average number of unemployed individuals (as so determined) 
     in the United States.
       (D) Individuals in poverty.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     total number of individuals in poverty in the State bears to 
     the total number of individuals in poverty in the United 
     States.
       (E) At-risk youth.--From funds equal to 33\1/3\ percent of 
     such remainder, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make available to each State an amount 
     that bears the same relationship to such funds as the total 
     number of at-risk youth in the State bears to the total 
     number of at-risk youth in the United States.
       (d) State Plan.--
       (1) Information.--To be eligible to receive an allotment 
     under subsection (c), a State shall include, in the State 
     plan to be submitted under section 714, information 
     describing the allocation within the State of the funds made 
     available through the allotment, and how the programs and 
     activities described in subsection (b)(2) will be carried out 
     to meet the State goals and reach the State benchmarks.
       (2) Limitation.--A State may not be required to include the 
     information described in paragraph (1) in the State plan to 
     be submitted under section 714 to be eligible to receive an 
     allotment under section 712.
       (e) Application.--To be eligible to receive a grant under 
     subparagraph (A) or (B) of subsection (b)(2) from a State, an 
     entity shall prepare and submit to the Governor of the State 
     an application at such time, in such manner, and containing 
     such information as the Governor may require.
       (f) Within State Distribution.--Of the funds allotted to a 
     State under subsection (c)(3) for workforce preparation 
     activities for at-risk youth for a program year--
       (1) 15 percent shall be reserved by the Governor to carry 
     out such activities through the statewide system; and
       (2) 85 percent shall be distributed to local entities to 
     carry out such activities through the statewide system.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subtitle, $2,100,000,000 
     for each of fiscal years 1998 through 2001.
       (h) Effective Date.--This chapter shall take effect on July 
     1, 1998.
                   Subtitle D--Transition Provisions

     SEC. 761. WAIVERS.

       (a) Waiver Authority.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, and except as provided in subsection (d), the 
     Secretary may waive any requirement under any provision of 
     law relating to a covered activity, or of any regulation 
     issued under such a provision, for--
       (A) a State that requests such a waiver and submits an 
     application as described in subsection (b); or
       (B) a local entity that requests such a waiver and complies 
     with the requirements of subsection (c);
     in order to assist the State or local entity in planning or 
     developing a statewide system or workforce development 
     activities to be carried out through the statewide system.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     each waiver approved pursuant to this section shall be for a 
     period beginning on the date of the approval and ending on 
     June 30, 1998.
       (B) Failure to submit interim plan.--If a State receives a 
     waiver under this section and fails to submit an interim plan 
     under section 763 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997. If a local entity 
     receives a waiver under this section, and the State in which 
     the local entity is located fails to submit an interim plan 
     under section 763 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997.
       (b) State Request for Waiver.--
       (1) In general.--A State may submit to the Secretary a 
     request for a waiver of 1 or more requirements referred to in 
     subsection (a). The request may include a request for 
     different waivers with respect to different areas within the 
     State.
       (2) Application.--To be eligible to receive a waiver 
     described in subsection (a), a State shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including information--
       (A) identifying the requirement to be waived and the goal 
     that the State (or the local agency applying to the State 
     under subsection (c)) intends to achieve through the waiver;
       (B) identifying, and describing the actions that the State 
     will take to remove, similar State requirements;
       (C) describing the activities to which the waiver will 
     apply, including information on how the activities may be 
     continued, or related to activities carried out, under the 
     statewide system of the State;
       (D) describing the number and type of persons to be 
     affected by such waiver; and
       (E) providing evidence of support for the waiver request by 
     the State agencies or officials with jurisdiction over the 
     requirement to be waived.
       (c) Local Entity Request for Waiver.--
       (1) In general.--A local entity that seeks a waiver of such 
     a requirement shall submit to the State a request for the 
     waiver and an application containing sufficient information 
     to enable the State to comply with the requirements of 
     subsection (b)(2). The State shall determine whether to 
     submit a request and an application for a waiver to the 
     Secretary, as provided in subsection (b).
       (2) Time limit.--
       (A) In general.--The State shall make a determination 
     concerning whether to submit the request and application for 
     a waiver as described in paragraph (1) not later than 30 days 
     after the date on which the State receives the application 
     from the local entity.
       (B) Direct submission.--
       (i) In general.--If the State does not make a determination 
     to submit or does not submit the request and application 
     within the 30-day time period specified in subparagraph (A), 
     the local entity may submit the request and application to 
     the Secretary.
       (ii) Requirements.--In submitting such a request, the local 
     entity shall obtain the agreement of the State involved to 
     comply with the requirements of this section that would 
     otherwise apply to a State submitting a request for a waiver. 
     In reviewing an application submitted by a local entity, the 
     Secretary shall comply with the requirements of this section 
     that would otherwise apply to the Secretary with respect to 
     review of such an application submitted by a State.
       (d) Waivers Not Authorized.--The Secretary may not waive 
     any requirement of any provision referred to in subsection 
     (a), or of any regulation issued under such provision, 
     relating to--
       (1) the allocation of funds to States, local entities, or 
     individuals;

[[Page S 13086]]

       (2) public health or safety, civil rights, occupational 
     safety and health, environmental protection, displacement of 
     employees, or fraud and abuse;
       (3) the eligibility of an individual for participation in a 
     covered activity, except in a case in which the State or 
     local entity can demonstrate that the individuals who would 
     have been eligible to participate in such activity without 
     the waiver will participate in a similar covered activity; or
       (4) a required supplementation of funds by the State or a 
     prohibition against the State supplanting such funds.
       (e) Activities.--Subject to subsection (d), the Secretary 
     may approve a request for a waiver described in subsection 
     (a) that would enable a State or local entity to--
       (1) use the assistance that would otherwise have been used 
     to carry out 2 or more covered activities (if the State or 
     local entity were not using the assistance as described in 
     this section)--
       (A) to address the high priority needs of unemployed 
     persons and at-risk youth in the appropriate State or 
     community for workforce employment activities or workforce 
     education activities;
       (B) to improve efficiencies in the delivery of the covered 
     activities; or
       (C) in the case of overlapping or duplicative activities--
       (i) by combining the covered activities and funding the 
     combined activities; or
       (ii) by eliminating 1 of the covered activities and 
     increasing the funding to the remaining covered activity; and
       (2) use the assistance that would otherwise have been used 
     for administrative expenses relating to a covered activity 
     (if the State or local entity were not using the assistance 
     as described in this section) to pay for the cost of 
     developing an interim State plan described in section 763 or 
     a State plan described in section 714.
       (f) Approval or Disapproval.--The Secretary shall approve 
     or disapprove any request submitted pursuant to subsection 
     (b) or (c), not later than 45 days after the date of the 
     submission and shall issue a decision that shall include the 
     reasons for approving or disapproving the request.
       (g) Failure To Act.--If the Secretary fails to approve or 
     disapprove the request within the 45-day period described in 
     subsection (f), the request shall be deemed to be approved on 
     the day after such period ends. If the Secretary subsequently 
     determines that the waiver relates to a matter described in 
     subsection (d) and issues a decision that includes the 
     reasons for the determination, the waiver shall be deemed to 
     terminate on the date of issuance of the decision.
       (h) Definition.--As used in this section:
       (1) Local entity.--The term ``local entity'' means--
       (A) a local educational agency, with respect to any act by 
     a local agency or organization relating to a covered activity 
     that is a workforce education activity; and
       (B) the local public or private agency or organization 
     responsible for carrying out the covered activity at issue, 
     with respect to any act by a local agency or organization 
     relating to any other covered activity.
       (2) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Labor, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Labor;
       (B) the Secretary of Education, with respect to any act 
     relating to a covered activity carried out by the Secretary 
     of Education; and
       (C) the Secretary of Health and Human Services, with 
     respect to any act relating to a covered activity carried out 
     by the Secretary of Health and Human Services.
       (3) State.--The term ``State'' means--
       (A) a State educational agency, with respect to any act by 
     a State entity relating to a covered activity that is a 
     workforce education activity; and
       (B) the Governor, with respect to any act by a State entity 
     relating to any other covered activity.
       (i) Conforming Amendments.--
       (1) Section 501 of the School-to-Work Opportunities Act of 
     1994 (20 U.S.C. 6211) is amended--
       (A) in subsection (a), by striking ``sections 502 and 503'' 
     and inserting ``section 502'';
       (B) in subsection (b)(2)(B)(ii)--
       (i) by striking ``section 502(a)(1)(C) or 503(a)(1)(C), as 
     appropriate,'' and inserting ``section 502(a)(1)(C)''; and
       (ii) by striking ``section 502 or 503, as appropriate,'' 
     and inserting ``section 502'';
       (C) in subsection (c), by striking ``section 502 or 503'' 
     and inserting ``section 502''; and
       (D) by striking ``Secretaries'' each place the term appears 
     and inserting ``Secretary of Education''.
       (2) Section 502(b) of such Act (20 U.S.C. 6212(b)) is 
     amended--
       (A) in paragraph (4), by striking the semicolon and 
     inserting ``; and'';
       (B) in paragraph (5), by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (6).
       (3) Section 503 of such Act (20 U.S.C. 6213) is repealed.
       (4) Section 504 of such Act (20 U.S.C. 6214) is amended--
       (A) in subsection (a)(2)(B), by striking clauses (i) and 
     (ii) and inserting the following clauses:
       ``(i) the provisions of law listed in paragraphs (2) 
     through (5) of section 502(b);
       ``(ii) the Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.); and
       ``(iii) the Carl D. Perkins Vocational and Applied 
     Technology Education Act (20 U.S.C. 2301 et seq.).''; and
       (B) in subsection (b), by striking ``paragraphs (1) through 
     (3), and paragraphs (5) and (6), of section 503(b)'' and 
     inserting ``paragraphs (2) through (4) and paragraphs (6) and 
     (7) of section 505(b)''.
       (5) Section 505(b) of such Act (20 U.S.C. 6215(b)) is 
     amended to read as follows:
       ``(b) Use of Funds.--A State may use, under the 
     requirements of this Act, Federal funds that are made 
     available to the State and combined under subsection (a) to 
     carry out school-to-work activities, except that the 
     provisions relating to--
       ``(1) the matters specified in section 502(c);
       ``(2) basic purposes or goals;
       ``(3) maintenance of effort;
       ``(4) distribution of funds;
       ``(5) eligibility of an individual for participation;
       ``(6) public health or safety, labor standards, civil 
     rights, occupational safety and health, or environmental 
     protection; or
       ``(7) prohibitions or restrictions relating to the 
     construction of buildings or facilities;
     that relate to the program through which the funds described 
     in subsection (a)(2)(B) were made available, shall remain in 
     effect with respect to the use of such funds.''.

     SEC. 762. FLEXIBILITY DEMONSTRATION PROGRAM.

       (a) Definition.--As used in this section:
       (1) Eligible state.--The term ``eligible State'' means a 
     State that--
       (A)(i) has submitted an interim State plan under section 
     763;
       (ii) has an executed Memorandum of Understanding with the 
     Federal Government; or
       (iii) is a designated ``Ed-Flex Partnership State'' under 
     section 311(e) of the Goals 2000: Educate America Act (20 
     U.S.C. 5891(e)); and
       (B) waives State statutory or regulatory requirements 
     relating to workforce development activities while holding 
     local entities within the State that are effected by such 
     waivers accountable for the performance of the participants 
     who are affected by such waivers.
       (2) Local entity; secretary; state.--The terms ``local 
     entity'', ``Secretary'', and ``State'' have the meanings 
     given the terms in section 761(h).
       (b) Demonstration Program.--
       (1) Establishment.--In addition to providing for the 
     waivers described in section 761(a), the Secretary shall 
     establish a workforce flexibility demonstration program under 
     which the Secretary shall permit not more than 6 eligible 
     States (or local entities within such States) to waive any 
     statutory or regulatory requirement applicable to any covered 
     activity described in section 761(a), other than the 
     requirements described in section 761(d).
       (2) Selection of participant states.--In carrying out the 
     program under paragraph (1), the Secretary shall select for 
     participation in the program 3 eligible States that each have 
     a population of not less than 3,500,000 individuals and 3 
     eligible States that each have a population of not more than 
     3,500,000 individuals, as determined in accordance with the 
     most recent decennial census of the population as provided by 
     the Bureau of the Census.
       (3) Application.--
       (A) Submission.--To be eligible to participate in the 
     program established under paragraph (1), a State shall 
     prepare and submit an application, in accordance with section 
     761(b)(2), that includes--
       (i) a description of the process the eligible State will 
     use to evaluate applications from local entities requesting 
     waivers of--

       (I) Federal statutory or regulatory requirements described 
     in section 761(a); and
       (II) State statutory or regulatory requirements relating to 
     workforce development activities; and

       (ii) a detailed description of the State statutory or 
     regulatory requirements relating to workforce development 
     activities that the State will waive.
       (B) Approval.--The Secretary may approve an application 
     submitted under subparagraph (A) if the Secretary determines 
     that such application demonstrates substantial promise of 
     assisting the State and local entities within such State in 
     carrying out comprehensive reform of workforce development 
     activities and in otherwise meeting the purposes of this 
     title.
       (C) Local entity applications.--A State participating in 
     the program established under paragraph (1) shall not approve 
     an application by a local entity for a waiver under this 
     subsection unless the State determines that such waiver will 
     assist the local entity in reaching the goals of the local 
     entity.
       (4) Monitoring.--A State participating in the program 
     established under paragraph (1) shall annually monitor the 
     activities of local entities receiving waivers under this 
     subsection and shall submit an annual report regarding such 
     monitoring to the Secretary. The Secretary shall periodically 
     review the performance of such States and shall terminate the 
     waiver of a State under this subsection if the Secretary 
     determines, after notice and opportunity for a hearing, that 
     the performance of such State has been inadequate to a level 
     that justifies discontinuation of such authority.
       (5) Reference.--Each eligible State participating in the 
     program established under paragraph (1) shall be referred to 
     as a ``Work-Flex Partnership State''.

[[Page S 13087]]


     SEC. 763. INTERIM STATE PLANS.

       (a) In General.--For a State or local entity in a State to 
     use a waiver received under section 761 or 762 through June 
     30, 1998, and for a State to be eligible to submit a State 
     plan described in section 714 for program year 1998, the 
     Governor of the State shall submit an interim State plan to 
     the Federal Partnership. The Governor shall submit the plan 
     not later than June 30, 1997.
       (b) Requirements.--The interim State plan shall comply with 
     the requirements applicable to State plans described in 
     section 714.
       (c) Program Year.--In submitting the interim State plan, 
     the Governor shall indicate whether the plan is submitted--
       (1) for review and approval for program year 1997; or
       (2) solely for review.
       (d) Review.--In reviewing an interim State plan, the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, may--
       (1) in the case of a plan submitted for review and approval 
     for program year 1997--
       (A) approve the plan and permit the State to use a waiver 
     as described in section 761 or 762 to carry out the plan; or
       (B)(i) disapprove the plan and provide to the State reasons 
     for the disapproval; and
       (ii) direct the Federal Partnership to provide technical 
     assistance to the State for developing an approvable plan to 
     be submitted under section 714 for program year 1998; and
       (2) in the case of a plan submitted solely for review, 
     review the plan and provide to the State technical assistance 
     for developing an approvable plan to be submitted under 
     section 714 for program year 1998.
       (e) Effect of Disapproval.--Disapproval of an interim plan 
     shall not affect the ability of a State to use a waiver as 
     described in section 761 or 762 through June 30, 1998.

     SEC. 764. APPLICATIONS AND PLANS UNDER COVERED ACTS.

       Notwithstanding any other provision of law, no State or 
     local entity shall be required to comply with any provision 
     of a covered Act that would otherwise require the entity to 
     submit an application or a plan to a Federal agency during 
     fiscal year 1996 or 1997 for funding of a covered activity. 
     In determining whether to provide funding to the State or 
     local entity for the covered activity, the Secretary of 
     Education, the Secretary of Labor, or the Secretary of Health 
     and Human Services, as appropriate, shall consider the last 
     application or plan, as appropriate, submitted by the entity 
     for funding of the covered activity.

     SEC. 765. INTERIM ADMINISTRATION OF SCHOOL-TO-WORK PROGRAMS.

       (a) In General.--Any provision of the School-to-Work 
     Opportunities Act of 1994 (20 U.S.C. 6101 et seq.) that 
     grants authority to the Secretary of Labor or the Secretary 
     of Education shall be considered to grant the authority to 
     the Federal Partnership.
       (b) Effective Date.--Subsection (a) shall take effect on 
     October 1, 1996.

     SEC. 766. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

       (a) Older American Community Service Employment Act.--
     Section 508(a)(1) of the Older American Community Service 
     Employment Act (42 U.S.C. 3056f(a)(1)) is amended by striking 
     ``for fiscal years 1993, 1994, and 1995'' and inserting ``for 
     each of fiscal years 1993 through 1998''.
       (b) Carl D. Perkins Vocational and Applied Technology 
     Education Act.--
       (1) In general.--Section 3(a) of the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2302(a)) is amended by striking ``for each of the fiscal 
     years'' and all that follows through ``1995'' and inserting 
     ``for each of fiscal years 1992 through 1998''.
       (2) Research.--Section 404(d) of such Act (20 U.S.C. 
     2404(d)) is amended by striking ``for each of the fiscal 
     years'' and all that follows through ``1995'' and inserting 
     ``for each of fiscal years 1992 through 1998''.
       (c) Adult Education Act.--
       (1) In general.--Section 313(a) of the Adult Education Act 
     (20 U.S.C. 1201b(a)) is amended by striking ``for each of the 
     fiscal years'' and all that follows through ``1995'' and 
     inserting ``for each of fiscal years 1993 through 1998''.
       (2) State literacy resource centers.--Section 356(k) of 
     such Act (20 U.S.C. 1208aa(k)) is amended by striking ``for 
     each of the fiscal years 1994 and 1995'' and inserting ``for 
     each of fiscal years 1994 and 1995''.
       (3) Business, industry, labor, and education partnerships 
     for workplace literacy.--Section 371(e)(1) of such Act (20 
     U.S.C. 1211(e)(1)) is amended by striking ``for each of the 
     fiscal years'' and all that follows through ``1995'' and 
     inserting ``for each of fiscal years 1993 through 1998''.
       (4) National institute for literacy.--Section 384(n)(1) of 
     such Act (20 U.S.C. 1213c(n)(1)) is amended by striking ``for 
     each of the fiscal years'' and all that follows through 
     ``1996'' and inserting ``for each of fiscal years 1992 
     through 1995''.
                    Subtitle E--National Activities

     SEC. 771. FEDERAL PARTNERSHIP.

       (a) Establishment.--There is established in the Department 
     of Labor and the Department of Education a Workforce 
     Development Partnership, under the joint control of the 
     Secretary of Labor and the Secretary of Education.
       (b) Administration.--Notwithstanding the Department of 
     Education Organization Act (20 U.S.C. 3401 et seq.), the 
     General Education Provisions Act (20 U.S.C. 1221 et seq.), 
     the Act entitled ``An Act To Create a Department of Labor'', 
     approved March 4, 1913 (29 U.S.C. 551 et seq.), and section 
     169 of the Job Training Partnership Act (29 U.S.C. 1579), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, in accordance with the plan approved or 
     determinations made by the President under section 776(c), 
     shall provide for, and exercise final authority over, the 
     effective and efficient administration of this title and the 
     officers and employees of the Federal Partnership.
       (c) Responsibilities of Secretary of Labor and Secretary of 
     Education.--The Secretary of Labor and the Secretary of 
     Education, working jointly through the Federal Partnership, 
     shall--
       (1) approve applications and plans under sections 714, 717, 
     718, and 763;
       (2) award financial assistance under sections 712, 717, 
     718, 732(a), 759, and 774;
       (3) approve State benchmarks in accordance with section 
     731(c); and
       (4) apply sanctions described in section 732(b).
       (d) Workplans.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, shall prepare and submit the 
     workplans described in sections 776(c) and 777(b).
       (e) Information and Technical Assistance 
     Responsibilities.--The Secretary of Labor and the Secretary 
     of Education, acting jointly, shall, in appropriate cases, 
     disseminate information and provide technical assistance to 
     States on the best practices for establishing and carrying 
     out activities through statewide systems, including model 
     programs to provide structured work and learning experiences 
     for welfare recipients.

     SEC. 772. NATIONAL WORKFORCE DEVELOPMENT BOARD AND PERSONNEL.

       (a) National Board.--
       (1) Composition.--The Federal Partnership shall be directed 
     by a National Board that shall be composed of 13 individuals, 
     including--
       (A) 7 individuals who are representative of business and 
     industry in the United States, appointed by the President by 
     and with the advice and consent of the Senate;
       (B) 2 individuals who are representative of labor and 
     workers in the United States, appointed by the President by 
     and with the advice and consent of the Senate;
       (C) 2 individuals who are representative of education 
     providers, 1 of whom is a State or local adult education 
     provider and 1 of whom is a State or local vocational 
     education provider, appointed by the President by and with 
     the advice and consent of the Senate; and
       (D) 2 Governors, representing different political parties, 
     appointed by the President by and with the advice and consent 
     of the Senate.
       (2) Terms.--Each member of the National Board shall serve 
     for a term of 3 years, except that, as designated by the 
     President--
       (A) 5 of the members first appointed to the National Board 
     shall serve for a term of 2 years;
       (B) 4 of the members first appointed to the National Board 
     shall serve for a term of 3 years; and
       (C) 4 of the members first appointed to the National Board 
     shall serve for a term of 4 years.
       (3) Vacancies.--Any vacancy in the National Board shall not 
     affect the powers of the National Board, but shall be filled 
     in the same manner as the original appointment. Any member 
     appointed to fill such a vacancy shall serve for the 
     remainder of the term for which the predecessor of such 
     member was appointed.
       (4) Duties and powers of the national board.--
       (A) Oversight.--Subject to section 771(b), the National 
     Board shall oversee all activities of the Federal 
     Partnership.
       (B) Recommendations about implementation.--If the Secretary 
     of Labor and the Secretary of Education fail to reach 
     agreement with respect to the implementation of their duties 
     and responsibilities under this title, the National Board 
     shall review the issues about which disagreement exists and 
     make a recommendation to the President regarding a solution 
     to the disagreement.
       (5) Chairperson.--The position of Chairperson of the 
     National Board shall rotate annually among the appointed 
     members described in paragraph (1)(A).
       (6) Meetings.--The National Board shall meet at the call of 
     the Chairperson but not less often than 4 times during each 
     calendar year. Seven members of the National Board shall 
     constitute a quorum. All decisions of the National Board with 
     respect to the exercise of the duties and powers of the 
     National Board shall be made by a majority vote of the 
     members of the National Board.
       (7) Compensation and travel expenses.--
       (A) Compensation.--In accordance with the plan approved or 
     the determinations made by the President under section 
     776(c), each member of the National Board shall be 
     compensated at a rate to be fixed by the President but not to 
     exceed the daily equivalent of the maximum rate authorized 
     for a position above GS-15 of the General Schedule under 
     section 5108 of title 5, United States Code, for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the National Board.
       (B) Expenses.--While away from their homes or regular 
     places of business on the business of the National Board, 
     members of such National Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of 

[[Page S 13088]]
     title 5, United States Code, for persons employed intermittently in the 
     Government service.
       (8) Date of appointment.--The National Board shall be 
     appointed not later than 120 days after the date of enactment 
     of this Act.
       (b) Duties and Powers of the Federal Partnership.--The 
     Federal Partnership shall--
       (1) oversee the development, maintenance, and continuous 
     improvement of the nationwide integrated labor market 
     information system described in section 773, and the 
     relationship between such system and the job placement 
     accountability system described in section 731(d);
       (2) establish model benchmarks for each of the benchmarks 
     referred to in paragraph (1), (2), or (3) of section 731(c), 
     at achievable levels based on existing (as of the date of the 
     establishment of the benchmarks) workforce development 
     efforts in the States;
       (3) negotiate State benchmarks with States in accordance 
     with section 731(c);
       (4) provide advice to the Secretary of Labor and the 
     Secretary of Education regarding the review and approval of 
     applications and plans described in section 771(c)(1) and the 
     approval of financial assistance described in section 
     771(c)(2);
       (5) receive and review reports described in section 731(a);
       (6) prepare and submit to the appropriate committees of 
     Congress an annual report on the absolute and relative 
     performance of States toward reaching the State benchmarks;
       (7) provide advice to the Secretary of Labor and the 
     Secretary of Education regarding applying sanctions described 
     in section 732(b);
       (8) review all federally funded programs providing 
     workforce development activities, other than programs carried 
     out under this title, and submit recommendations to Congress 
     on how the federally funded programs could be integrated into 
     the statewide systems of the States, including 
     recommendations on the development of common terminology for 
     activities and services provided through the programs;
       (9) prepare an annual plan for the nationwide integrated 
     labor market information system, as described in section 
     773(b)(2); and
       (10) perform the duties specified for the Federal 
     Partnership in this title.
       (c) Director.--
       (1) In general.--There shall be in the Federal Partnership 
     a Director, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) Compensation.--The Director shall be compensated at the 
     rate provided for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (3) Duties.--The Director shall make recommendations to the 
     National Board regarding the activities described in 
     subsection (b).
       (4) Date of appointment.--The Director shall be appointed 
     not later than 120 days after the date of enactment of this 
     Act.
       (d) Personnel.--
       (1) Appointments.--The Director may appoint and fix the 
     compensation of such officers and employees as may be 
     necessary to carry out the functions of the Federal 
     Partnership. Except as otherwise provided by law, such 
     officers and employees shall be appointed in accordance with 
     the civil service laws and their compensation fixed in 
     accordance with title 5, United States Code.
       (2) Experts and consultants.--The Director may obtain the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, and compensate 
     such experts and consultants for each day (including travel 
     time) at rates not in excess of the rate of pay for level IV 
     of the Executive Schedule under section 5315 of such title. 
     The Director may pay experts and consultants who are serving 
     away from their homes or regular place of business travel 
     expenses and per diem in lieu of subsistence at rates 
     authorized by sections 5702 and 5703 of such title for 
     persons in Government service employed intermittently.
       (3) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Federal Partnership without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service or privilege. The Secretary of 
     Education and the Secretary of Labor shall detail a 
     sufficient number of employees to the Federal Partnership for 
     the period beginning October 1, 1996 and ending June 30, 1998 
     to carry out the functions of the Federal Partnership during 
     such period.
       (4) Use of voluntary and uncompensated services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     the Secretary of Labor and the Secretary of Education are 
     authorized to accept voluntary and uncompensated services in 
     furtherance of the purposes of this title.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal years 1996 and 1997 $500,000 to 
     the National Board for the administration of the duties and 
     responsibilities of the Federal Partnership under this title.
     SEC. 773. LABOR MARKET INFORMATION.

       (a) Federal Responsibilities.--The Federal Partnership, in 
     accordance with the provisions of this section, shall oversee 
     the development, maintenance, and continuous improvement of a 
     nationwide integrated labor market information system that 
     shall include--
       (1) statistical data from cooperative statistical survey 
     and projection programs and data from administrative 
     reporting systems, that, taken together, shall enumerate, 
     estimate, and project the supply and demand for labor at the 
     substate, State, and national levels in a timely manner, 
     including data on--
       (A) the demographics, socioeconomic characteristics, and 
     current employment status of the substate, State, and 
     national populations (as of the date of the collection of the 
     data), including self-employed, part-time, and seasonal 
     workers;
       (B) job vacancies, education and training requirements, 
     skills, wages, benefits, working conditions, and industrial 
     distribution, of occupations, as well as current and 
     projected employment opportunities and trends by industry and 
     occupation;
       (C) the educational attainment, training, skills, skill 
     levels, and occupations of the populations;
       (D) information maintained in a longitudinal manner on the 
     quarterly earnings, establishment and industry affiliation, 
     and geographic location of employment for all individuals for 
     whom the information is collected by the States; and
       (E) the incidence, industrial and geographical location, 
     and number of workers displaced by permanent layoffs and 
     plant closings;
       (2) State and substate area employment and consumer 
     information (which shall be current, comprehensive, 
     automated, accessible, easy to understand, and in a form 
     useful for facilitating immediate employment, entry into 
     education and training programs, and career exploration) on--
       (A) job openings, locations, hiring requirements, and 
     application procedures, including profiles of industries in 
     the local labor market that describe the nature of work 
     performed, employment requirements, and patterns in wages and 
     benefits;
       (B) jobseekers, including the education, training, and 
     employment experience of the jobseekers; and
       (C) the cost and effectiveness of providers of workforce 
     employment activities, workforce education activities, and 
     flexible workforce activities, including the percentage of 
     program completion, acquisition of skills to meet industry-
     recognized skill standards, continued education, job 
     placement, and earnings, by participants, and other 
     information that may be useful in facilitating informed 
     choices among providers by participants;
       (3) technical standards for labor market information that 
     will--
       (A) ensure compatibility of the information and the ability 
     to aggregate the information from substate areas to State and 
     national levels;
       (B) support standardization and aggregation of the data 
     from administrative reporting systems;
       (C) include--
       (i) classification and coding systems for industries, 
     occupations, skills, programs, and courses;
       (ii) nationally standardized definitions of labor market 
     terms, including terms related to State benchmarks 
     established pursuant to section 731(c);
       (iii) quality control mechanisms for the collection and 
     analysis of labor market information; and
       (iv) common schedules for collection and dissemination of 
     labor market information; and
       (D) eliminate gaps and duplication in statistical 
     undertakings, with a high priority given to the systemization 
     of wage surveys;
       (4) an analysis of data and information described in 
     paragraphs (1) and (2) for uses such as--
       (A) national, State, and substate area economic 
     policymaking;
       (B) planning and evaluation of workforce development 
     activities;
       (C) the implementation of Federal policies, including the 
     allocation of Federal funds to States and substate areas; and
       (D) research on labor market dynamics;
       (5) dissemination mechanisms for data and analysis, 
     including mechanisms that may be standardized among the 
     States; and
       (6) programs of technical assistance for States and 
     substate areas in the development, maintenance, utilization, 
     and continuous improvement of the data, information, 
     standards, analysis, and dissemination mechanisms, described 
     in paragraphs (1) through (5).
       (b) Joint Federal-State Responsibilities.--
       (1) In general.--The nationwide integrated labor market 
     information system shall be planned, administered, overseen, 
     and evaluated through a cooperative governance structure 
     involving the Federal Government and the States receiving 
     financial assistance under this title.
       (2) Annual plan.--The Federal Partnership shall, with the 
     assistance of the Bureau of Labor Statistics and other 
     Federal agencies, where appropriate, prepare an annual plan 
     that shall be the mechanism for achieving the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system. The plan shall--
       (A) establish goals for the development and improvement of 
     a nationwide integrated labor market information system based 
     on information needs for achieving economic growth and 
     productivity, accountability, fund allocation equity, and an 
     understanding of labor market characteristics and dynamics;
       (B) describe the elements of the system, including--

[[Page S 13089]]

       (i) standards, definitions, formats, collection 
     methodologies, and other necessary system elements, for use 
     in collecting the data and information described in 
     paragraphs (1) and (2) of subsection (a); and
       (ii) assurances that--

       (I) data will be sufficiently timely and detailed for uses 
     including the uses described in subsection (a)(4);
       (II) administrative records will be standardized to 
     facilitate the aggregation of data from substate areas to 
     State and national levels and to support the creation of new 
     statistical series from program records; and
       (III) paperwork and reporting requirements on employers and 
     individuals will be reduced;

       (C) recommend needed improvements in administrative 
     reporting systems to be used for the nationwide integrated 
     labor market information system;
       (D) describe the current spending on integrated labor 
     market information activities from all sources, assess the 
     adequacy of the funds spent, and identify the specific budget 
     needs of the Federal Government and States with respect to 
     implementing and improving the nationwide integrated labor 
     market information system;
       (E) develop a budget for the nationwide integrated labor 
     market information system that--
       (i) accounts for all funds described in subparagraph (D) 
     and any new funds made available pursuant to this title; and
       (ii) describes the relative allotments to be made for--

       (I) operating the cooperative statistical programs pursuant 
     to subsection (a)(1);
       (II) developing and providing employment and consumer 
     information pursuant to subsection (a)(2);
       (III) ensuring that technical standards are met pursuant to 
     subsection (a)(3); and
       (IV) providing the analysis, dissemination mechanisms, and 
     technical assistance under paragraphs (4), (5), and (6) of 
     subsection (a), and matching data;

       (F) describe the involvement of States in developing the 
     plan by holding formal consultations conducted in cooperation 
     with representatives of the Governors of each State or the 
     State workforce development board described in section 715, 
     where appropriate, pursuant to a process established by the 
     Federal Partnership; and
       (G) provide for technical assistance to the States for the 
     development of statewide comprehensive labor market 
     information systems described in subsection (c), including 
     assistance with the development of easy-to-use software and 
     hardware, or uniform information displays.
     For purposes of applying Office of Management and Budget 
     Circular A-11 to determine persons eligible to participate in 
     deliberations relating to budget issues for the development 
     of the plan, the representatives of the Governors of each 
     State and the State workforce development board described in 
     subparagraph (F) shall be considered to be employees of the 
     Department of Labor.
       (c) State Responsibilities.--
       (1) Designation of state agency.--In order to receive 
     Federal financial assistance under this title, the Governor 
     of a State shall--
       (A) establish an interagency process for the oversight of a 
     statewide comprehensive labor market information system and 
     for the participation of the State in the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system; and
       (B) designate a single State agency or entity within the 
     State to be responsible for the management of the statewide 
     comprehensive labor market information system.
       (2) Duties.--In order to receive Federal financial 
     assistance under this title, the State agency or entity 
     within the State designated under paragraph (1)(B) shall--
       (A) consult with employers and local workforce development 
     boards described in section 728(b), where appropriate, about 
     the labor market relevance of the data to be collected and 
     displayed through the statewide comprehensive labor market 
     information system;
       (B) develop, maintain, and continuously improve the 
     statewide comprehensive labor market information system, 
     which shall--
       (i) include all of the elements described in paragraphs 
     (1), (2), (3), (4), (5), and (6) of subsection (a); and
       (ii) provide the consumer information described in clauses 
     (v) and (vi) of section 716(a)(2)(B) in a manner that shall 
     be responsive to the needs of business, industry, workers, 
     and jobseekers;
       (C) ensure the performance of contract and grant 
     responsibilities for data collection, analysis, and 
     dissemination, through the statewide comprehensive labor 
     market information system;
       (D) conduct such other data collection, analysis, and 
     dissemination activities to ensure that State and substate 
     area labor market information is comprehensive;
       (E) actively seek the participation of other State and 
     local agencies, with particular attention to State education, 
     economic development, human services, and welfare agencies, 
     in data collection, analysis, and dissemination activities in 
     order to ensure complementarity and compatibility among data;
       (F) participate in the development of the national annual 
     plan described in subsection (b)(2); and
       (G) ensure that the matches required for the job placement 
     accountability system by section 731(d)(2)(A) are made for 
     the State and for other States.
       (3) Rule of construction.--Nothing in this title shall be 
     construed as limiting the ability of a State agency to 
     conduct additional data collection, analysis, and 
     dissemination activities with State funds or with Federal 
     funds from sources other than this title.
       (d) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 774. NATIONAL CENTER FOR RESEARCH IN EDUCATION AND 
                   WORKFORCE DEVELOPMENT.

       (a) Grants Authorized.--From amounts made available under 
     section 734(b)(5), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, are authorized to award a grant, on a 
     competitive basis, to an institution of higher education, 
     public or private nonprofit organization or agency, or a 
     consortium of such institutions, organizations, or agencies, 
     to enable such institution, organization, agency, or 
     consortium to establish a national center to carry out the 
     activities described in subsection (b).
       (b) Authorized Activities.--Grant funds made available 
     under this section shall be used by the national center 
     assisted under subsection (a)--
       (1) to increase the effectiveness and improve the 
     implementation of workforce development programs, including 
     conducting research and development and providing technical 
     assistance with respect to--
       (A) combining academic and vocational education;
       (B) connecting classroom instruction with work-based 
     learning;
       (C) creating a continuum of educational programs that 
     provide multiple exit points for employment, which may 
     include changes or development of instructional materials or 
     curriculum;
       (D) establishing high quality support services for all 
     students to ensure access to workforce development programs, 
     educational success, and job placement assistance;
       (E) developing new models for remediation of basic academic 
     skills, which models shall incorporate appropriate 
     instructional methods, rather than using rote and didactic 
     methods;
       (F) identifying ways to establish links among educational 
     and job training programs at the State and local levels;
       (G) developing new models for career guidance, career 
     information, and counseling services;
       (H) identifying economic and labor market changes that will 
     affect workforce needs;
       (I) developing model programs for the transition of members 
     of the Armed Forces from military service to civilian 
     employment;
       (J) conducting preparation of teachers, counselors, 
     administrators, and other professionals, who work with 
     programs funded under this title; and
       (K) obtaining information on practices in other countries 
     that may be adapted for use in the United States;
       (2) to provide assistance to States and local recipients of 
     assistance under this title in developing and using systems 
     of performance measures and standards for improvement of 
     programs and services; and
       (3) to maintain a clearinghouse that will provide data and 
     information to Federal, State, and local organizations and 
     agencies about the condition of statewide systems and 
     programs funded under this title, which data and information 
     shall be disseminated in a form that is useful to 
     practitioners and policymakers.
       (c) Other Activities.--The Federal Partnership may request 
     that the national center assisted under subsection (a) 
     conduct activities not described in subsection (b), or study 
     topics not described in subsection (b), as the Federal 
     Partnership determines to be necessary to carry out this 
     title.
       (d) Identification of Current Needs.--The national center 
     assisted under subsection (a) shall identify current needs 
     (as of the date of the identification) for research and 
     technical assistance through a variety of sources including a 
     panel of Federal, State, and local level practitioners.
       (e) Summary Report.--The national center assisted under 
     subsection (a) shall annually prepare and submit to the 
     Federal Partnership and Congress a report summarizing the 
     research findings obtained, and the results of development 
     and technical assistance activities carried out, under this 
     section.
       (f) Definition.--As used in this section, the term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (g) Effective Date.--This section shall take effect on July 
     1, 1998.
     SEC. 775. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION 
                   PROGRAMS.

       (a) In General.--The Secretary of Education (referred to in 
     this section as the ``Secretary'') shall conduct a national 
     assessment of vocational education programs assisted under 
     this title, through studies and analyses conducted 
     independently through competitive awards.
       (b) Independent Advisory Panel.--The Secretary shall 
     appoint an independent advisory panel, consisting of 
     vocational education administrators, educators, researchers, 
     and representatives of business, industry, labor, career 
     guidance and counseling professionals, and other relevant 
     groups, to advise the Secretary on the implementation 

[[Page S 13090]]
     of such assessment, including the issues to be addressed and the 
     methodology of the studies involved, and the findings and 
     recommendations resulting from the assessment. The panel, in 
     the discretion of the panel, may submit to Congress an 
     independent analysis of the findings and recommendations 
     resulting from the assessment. The Federal Advisory Committee 
     Act (5 U.S.C. App.) shall not apply to the panel established 
     under this subsection.
       (c) Contents.--The assessment required under subsection (a) 
     shall include descriptions and evaluations of--
       (1) the effect of this title on State and tribal 
     administration of vocational education programs and on local 
     vocational education practices, including the capacity of 
     State, tribal, and local vocational education systems to 
     address the purposes of this title;
       (2) expenditures at the Federal, State, tribal, and local 
     levels to address program improvement in vocational 
     education, including the impact of Federal allocation 
     requirements (such as within-State distribution formulas) on 
     the delivery of services;
       (3) preparation and qualifications of teachers of 
     vocational and academic curricula in vocational education 
     programs, as well as shortages of such teachers;
       (4) participation in vocational education programs;
       (5) academic and employment outcomes of vocational 
     education, including analyses of--
       (A) the effect of educational reform on vocational 
     education;
       (B) the extent and success of integration of academic and 
     vocational curricula;
       (C) the success of the school-to-work transition; and
       (D) the degree to which vocational training is relevant to 
     subsequent employment;
       (6) employer involvement in, and satisfaction with, 
     vocational education programs;
       (7) the effect of benchmarks, performance measures, and 
     other measures of accountability on the delivery of 
     vocational education services; and
       (8) the degree to which minority students are involved in 
     vocational student organizations.
       (d) Consultation.--
       (1) In general.--The Secretary shall consult with the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate in the design and implementation of 
     the assessment required under subsection (a).
       (2) Reports.--The Secretary shall submit to Congress--
       (A) an interim report regarding the assessment on or before 
     January 1, 2000; and
       (B) a final report, summarizing all studies and analyses 
     that relate to the assessment and that are completed after 
     the assessment, on or before July 1, 2000.
       (3) Prohibition.--Notwithstanding any other provision of 
     law or regulation, the reports required by this subsection 
     shall not be subject to any review outside of the Department 
     of Education before their transmittal to Congress, but the 
     President, the Secretary, and the independent advisory panel 
     established under subsection (b) may make such additional 
     recommendations to Congress with respect to the assessment as 
     the President, Secretary, or panel determine to be 
     appropriate.
       (e) Effective Date.--This section shall take effect on July 
     1, 1998.

     SEC. 775A. NATIONAL ACTIVITIES.

       (a) Workforce Employment.--
       (1) Grants.--From the amounts reserved under section 
     734(b)(6) for each fiscal year, an amount, not to exceed 75 
     percent of the amounts so reserved, shall be available to the 
     Secretary of Labor for national activities that relate to 
     workforce employment activities and that are appropriately 
     administered at the national level, including awarding--
       (A) discretionary grants to provide adjustment assistance 
     to workers affected by major economic dislocations such as a 
     closure, layoff, or realignment described in section 
     703(8)(B);
       (B) discretionary grants to provide disaster relief 
     employment assistance to areas that have suffered an 
     emergency or major disaster;
       (C) grants for programs to provide workforce employment 
     activities for Indians;
       (D) grants for programs to provide workforce employment 
     activities for low-income migrant or seasonal farmworkers, as 
     defined in section 2281(b) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (42 U.S.C. 5177a(b)); and
       (E) grants for partnerships between the Secretary of Labor 
     and national organizations possessing special expertise for 
     developing, organizing, and administering workforce 
     employment activities at the national, State, and local 
     levels to enable such partnerships to carry out such 
     development, organization, and administration.
       (2) Additional activities.--From the amounts reserved under 
     section 734(b)(6) for each fiscal year, an amount, not to 
     exceed 15 percent of the amounts so reserved, shall be 
     available to the Secretary of Labor for additional national 
     activities that relate to workforce employment activities and 
     that are appropriately administered at the national level, 
     such as data collection, research and development, 
     demonstration projects, dissemination, technical assistance, 
     and evaluation activities, relating to workforce employment 
     activities.
       (b) Workforce Education.--From the amounts reserved under 
     section 734(b)(6) for each fiscal year, an amount, not to 
     exceed 10 percent of the amounts so reserved, shall be 
     available to the Secretary of Education for national 
     activities that relate to workforce education activities and 
     that are appropriately administered at the national level, 
     including--
       (1) national activities relating to workforce education 
     activities such as data collection, research and development, 
     demonstration projects, dissemination, technical assistance, 
     and evaluation activities, relating to workforce education 
     activities; and
       (2) workforce education activities that are provided to 
     Indians and Native Hawaiians and consistent with the purposes 
     of this title.
       (c) Awards for Excellence.--The Secretary of Labor and the 
     Secretary of Education, from the amounts reserved under 
     section 734(b)(6) and not used in accordance with subsections 
     (a) and (b) for each fiscal year, and through a peer review 
     process, may make performance awards to 1 or more States that 
     have--
       (1) implemented exemplary workforce employment activities 
     or workforce education activities;
       (2) implemented exemplary systems of school-to-work 
     activities; or
       (3) implemented exemplary one-stop delivery, as described 
     in section 716(a)(2)(A).
       (d) Definitions.--As used in this section:
       (1) Indian.--The term ``Indian'' has the same meaning given 
     such term in section 4(d) of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b(d)).
       (2) Native hawaiian.--The term ``Native Hawaiian'' has the 
     same meaning given such term in section 9212(1) of the Native 
     Hawaiian Education Act (20 U.S.C. 7912(1)).

     SEC. 776. TRANSFERS TO FEDERAL PARTNERSHIP.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--
       (1) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code;
       (2) the term ``function'' means any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (3) the term ``office'' includes any office, 
     administration, agency, institute, unit, organizational 
     entity, or component thereof.
       (b) Transfer of Functions.--There are transferred to the 
     appropriate Secretary in the Federal Partnership, in 
     accordance with subsection (c), all functions that the 
     Secretary of Labor or the Secretary of Education exercised 
     before the effective date of this section (including all 
     related functions of any officer or employee of the 
     Department of Labor or the Department of Education) that 
     relate to a covered activity and that are minimally necessary 
     to carry out the functions of the Federal Partnership. The 
     authority of a transferred employee to carry out a function 
     that relates to a covered activity shall terminate on July 1, 
     1998.
       (c) Transition Workplan.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Labor and the 
     Secretary of Education shall prepare and submit to the 
     National Board a proposed workplan as described in paragraph 
     (2). The Secretary of Labor and the Secretary of Education 
     shall also submit the plan to the President, the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives, and the Committee on Labor and Human 
     Resources of the Senate for review and comment.
       (2) Contents.--The proposed workplan shall include, at a 
     minimum--
       (A) an analysis of the functions that officers and 
     employees of the Department of Labor and the Department of 
     Education carry out (as of the date of the submission of the 
     workplan) that relate to a covered activity;
       (B) information on the levels of personnel and funding used 
     to carry out the functions (as of such date);
       (C) a determination of the functions described in 
     subparagraph (A) that are minimally necessary to carry out 
     the functions of the Federal Partnership;
       (D) information on the levels of personnel and other 
     resources that are minimally necessary to carry out the 
     functions of the Federal Partnership;
       (E) a determination of the manner in which the Secretary of 
     Labor and the Secretary of Education will provide personnel 
     and other resources of the Department of Labor and the 
     Department of Education for the Federal Partnership;
       (F) a determination of the appropriate Secretary to receive 
     the personnel, resources, and related items to be transferred 
     under this section, based on factors including increased 
     efficiency and elimination of duplication of functions;
       (G) a determination of the proposed organizational 
     structure for the Federal Partnership; and
       (H) a determination of the manner in which the Secretary of 
     Labor and the Secretary of Education, acting jointly through 
     the Federal Partnership, will carry out their duties and 
     responsibilities under this title.
       (3) Review by national board.--
       (A) In general.--Not later than 45 days after the date of 
     submission of the proposed workplan under paragraph (1), the 
     National Board shall--
       (i) review and concur with the workplan; or

[[Page S 13091]]

       (ii) reject the workplan and prepare and submit to the 
     President a revised workplan that contains the analysis, 
     information, and determinations described in paragraph (2).
       (B) Functions transferred.--If the National Board concurs 
     with the proposed workplan, the functions described in 
     paragraph (2)(C), as determined in the workplan, shall be 
     transferred under subsection (b).
       (4) Review by the president.--
       (A) In general.--Not later than 30 days after the date of 
     submission of a revised workplan under paragraph (3)(A)(ii), 
     the President shall--
       (i) review and approve the workplan; or
       (ii) reject the workplan and prepare an alternative 
     workplan that contains the analysis, information, and 
     determinations described in paragraph (2).
       (B) Functions transferred.--If the President approves the 
     revised workplan, or prepares the alternative workplan, the 
     functions described in paragraph (2)(C), as determined in 
     such revised or alternative workplan, shall be transferred 
     under subsection (b).
       (C) Special rule.--If the President takes no action on the 
     revised workplan submitted under paragraph (3)(A)(ii) within 
     the 30-day period described in subparagraph (A), the 
     Secretary of Labor, the Secretary of Education, and the 
     National Board may attempt to reach agreement on a compromise 
     workplan. If the Secretary of Labor, the Secretary of 
     Education, and the National Board reach such agreement, the 
     functions described in paragraph (2)(C), as determined in 
     such compromise workplan, shall be transferred under 
     subsection (b). If, after an additional 15-day period, the 
     Secretary of Labor, the Secretary of Education and the 
     National Board are unable to reach such agreement, the 
     revised workplan shall be deemed to be approved and shall 
     take effect on the day after the end of such period. The 
     functions described in paragraph (2)(C), as determined in the 
     revised workplan, shall be transferred under subsection (b).
       (5) Determination by president.--
       (A) In general.--In the event that the Secretary of Labor 
     and the Secretary of Education fail to reach agreement 
     regarding, and submit, a proposed workplan described in 
     paragraph (2), the President shall make the determinations 
     described in paragraph (2)(C). The President shall delegate 
     full responsibility for administration of this title to 1 of 
     the 2 Secretaries. Such Secretary shall be considered to be 
     the appropriate Secretary for purposes of this title and 
     shall have authority to carry out any function that the 
     Secretaries would otherwise be authorized to carry out 
     jointly.
       (B) Transfers.--The functions described in paragraph 
     (2)(C), as determined by the President under subparagraph 
     (A), shall be transferred under subsection (b). All positions 
     of personnel that relate to a covered activity and that, 
     prior to the transfer, were within the Department headed by 
     the other of the 2 Secretaries shall be separated from 
     service as provided in subsection (i)(2)(A).
       (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the National Board may delegate any function 
     transferred or granted to the Federal Partnership after the 
     effective date of this section to such officers and employees 
     of the Federal Partnership as the National Board may 
     designate, and may authorize successive redelegations of such 
     functions as may be necessary or appropriate. No delegation 
     of functions by the National Board under this subsection or 
     under any other provision of this section shall relieve such 
     National Board of responsibility for the administration of 
     such functions.
       (e) Reorganization.--The National Board may allocate or 
     reallocate any function transferred or granted to the Federal 
     Partnership after the effective date of this section among 
     the officers of the Federal Partnership, and establish, 
     consolidate, alter, or discontinue such organizational 
     entities in the Federal Partnership as may be necessary or 
     appropriate.
       (f) Rules.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may prescribe, in accordance with the provisions 
     of chapters 5 and 6 of title 5, United States Code, such 
     rules and regulations as the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, determine to be necessary or appropriate 
     to administer and manage the functions of the Federal 
     Partnership.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--
       (1) In general.--Except as otherwise provided in this 
     section, the personnel employed in connection with, and the 
     assets, liabilities, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds employed, used, held, arising 
     from, available to, or to be made available in connection 
     with the functions transferred by this section, subject to 
     section 1531 of title 31, United States Code, shall be 
     transferred to the appropriate Secretary in the Federal 
     Partnership. Unexpended funds transferred pursuant to this 
     subsection shall be used only to carry out the functions of 
     the Federal Partnership.
       (2) Existing facilities and other federal resources.--
     Pursuant to paragraph (1), the Secretary of Labor and the 
     Secretary of Education shall supply such office facilities, 
     office supplies, support services, and related expenses as 
     may be minimally necessary to carry out the functions of the 
     Federal Partnership. None of the funds made available under 
     this title may be used for the construction of office 
     facilities for the Federal Partnership.
       (h) Incidental Transfers.--The Director of the Office of 
     Management and Budget, at such time or times as the Director 
     shall provide, may make such determinations as may be 
     necessary with regard to the functions transferred by this 
     section, and to make such additional incidental dispositions 
     of personnel, assets, liabilities, grants, contracts, 
     property, records, and unexpended balances of appropriations, 
     authorizations, allocations, and other funds held, used, 
     arising from, available to, or to be made available in 
     connection with such functions, as may be necessary to carry 
     out the provisions of this section. The Director of the 
     Office of Management and Budget shall provide for the 
     termination of the affairs of all entities terminated by this 
     section and for such further measures and dispositions as may 
     be necessary to effectuate the objectives of this section.
       (i) Effect on Personnel.--
       (1) Termination of certain positions.--Positions whose 
     incumbents are appointed by the President, by and with the 
     advice and consent of the Senate, the functions of which are 
     transferred by this section, shall terminate on the effective 
     date of this section.
       (2) Actions.--
       (A) In general.--The Secretary of Labor and the Secretary 
     of Education shall take such actions as may be necessary, 
     including reduction in force actions, consistent with 
     sections 3502 and 3595 of title 5, United States Code, to 
     ensure that the positions of personnel that relate to a 
     covered activity and are not transferred under subsection (b) 
     are separated from service.
       (B) Scope.--The Secretary of Labor and the Secretary of 
     Education shall take the actions described in subparagraph 
     (A) with respect to not less than \1/3\ of the positions of 
     personnel that relate to a covered activity.
       (j) Savings Provisions.--
       (1) Suits not affected.--The provisions of this section 
     shall not affect suits commenced before the effective date of 
     this section, and in all such suits, proceedings shall be 
     had, appeals taken, and judgments rendered in the same manner 
     and with the same effect as if this section had not been 
     enacted.
       (2) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Department of Labor or 
     the Department of Education, or by or against any individual 
     in the official capacity of such individual as an officer of 
     the Department of Labor or the Department of Education, shall 
     abate by reason of the enactment of this section.
       (k) Transition.--The National Board may utilize--
       (1) the services of officers, employees, and other 
     personnel of the Department of Labor or the Department of 
     Education, other than personnel of the Federal Partnership, 
     with respect to functions transferred to the Federal 
     Partnership by this section; and
       (2) funds appropriated to such functions;
     for such period of time as may reasonably be needed to 
     facilitate the orderly implementation of this section.
       (l) References.--A reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Secretary of Labor or the Secretary of Education 
     with regard to functions transferred under subsection (b), 
     shall be deemed to refer to the Federal Partnership; and
       (2) the Department of Labor or the Department of Education 
     with regard to functions transferred under subsection (b), 
     shall be deemed to refer to the Federal Partnership.
       (m) Additional Conforming Amendments.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Federal Partnership 
     shall prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by this section.
       (2) Submission to congress.--Not later than March 31, 1997, 
     the Federal Partnership shall submit the recommended 
     legislation referred to in paragraph (1).
       (n) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), this section shall take effect on June 30, 1998.
       (2) Regulations and conforming amendments.--Subsections (f) 
     and (m) shall take effect on September 30, 1996.
       (3) Workplan.--Subsection (c) shall take effect on the date 
     of enactment of this Act.

     SEC. 777. TRANSFERS TO OTHER FEDERAL AGENCIES AND OFFICES.

       (a) Transfer.--There are transferred to the appropriate 
     receiving agency, in accordance with subsection (b), all 
     functions that the Secretary of Labor, acting through the 
     Employment and Training Administration, or the Secretary of 
     Education, acting through the Office of Vocational and Adult 
     Education, exercised before the effective date of this 
     section (including all related functions of any officer or 
     employee of the Employment and Training Administration or the 
     Office of Vocational and Adult Education) that do not relate 
     to a covered activity.
       (b) Determinations of Functions and Appropriate Receiving 
     Agencies.--
       (1) Transition workplan.--Not later than 180 days after the 
     date of enactment of this 

[[Page S 13092]]
     Act, the Secretary of Labor and the Secretary of Education shall 
     prepare and submit to the President a proposed workplan that 
     specifies the steps that the Secretaries will take, during 
     the period ending on July 1, 1998, to carry out the transfer 
     described in subsection (a).
       (2) Contents.--The proposed workplan shall include, at a 
     minimum--
       (A) a determination of the functions that officers and 
     employees of the Employment and Training Administration and 
     the Office of Vocational and Adult Education carry out (as of 
     the date of the submission of the workplan) that do not 
     relate to a covered activity; and
       (B) a determination of the appropriate receiving agencies 
     for the functions, based on factors including increased 
     efficiency and elimination of duplication of functions.
       (3) Review.--
       (A) In general.--Not later than 45 days after the date of 
     submission of the proposed workplan under paragraph (1), the 
     President shall--
       (i) review and approve the workplan and submit the workplan 
     to the Committee on Economic and Educational Opportunities of 
     the House of Representatives and the Committee on Labor and 
     Human Resources of the Senate; or
       (ii) reject the workplan, prepare an alternative workplan 
     that contains the determinations described in paragraph (2), 
     and submit the alternative workplan to the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate.
       (B) Functions transferred.--If the President approves the 
     proposed workplan, or prepares the alternative workplan, the 
     functions described in paragraph (2)(A), as determined in 
     such proposed or alternative workplan, shall be transferred 
     under subsection (a) to the appropriate receiving agencies 
     described in paragraph (2)(B), as determined in such proposed 
     or alternative workplan.
       (C) Special rule.--If the President takes no action on the 
     proposed workplan submitted under paragraph (1) within the 
     45-day period described in subparagraph (A), such workplan 
     shall be deemed to be approved and shall take effect on the 
     day after the end of such period. The functions described in 
     paragraph (2)(A), as determined in the proposed workplan, 
     shall be transferred under subsection (a) to the appropriate 
     receiving agencies described in paragraph (2)(B), as 
     determined in the proposed workplan.
       (4) Report.--Not later than July 1, 1998, the Secretary of 
     Education and the Secretary of Labor shall submit to the 
     appropriate committees of Congress information on the 
     transfers required by this section.
       (c) Application of Authorities.--
       (1) In general.--
       (A) Application.--Subsection (a), and subsections (d) 
     through (m), of section 776 (other than subsections (f), 
     (g)(2), (i)(2), and (m)) shall apply to transfers under this 
     section, in the same manner and to the same extent as the 
     subsections apply to transfers under section 776.
       (B) Regulations and conforming amendments.--Subsections (f) 
     and (m) of section 776 shall apply to transfers under this 
     section, in the same manner and to the same extent as the 
     subsections apply to transfers under section 776.
       (2) References.--For purposes of the application of the 
     subsections described in paragraph (1) (other than 
     subsections (g)(2) and (i)(2) of section 776) to transfers 
     under this section--
       (A) references to the Federal Partnership shall be deemed 
     to be references to the appropriate receiving agency, as 
     determined in the approved or alternative workplan referred 
     to in subsection (b)(3);
       (B) references to the Secretary of Labor and the Secretary 
     of Education, Director, or National Board shall be deemed to 
     be references to the head of the appropriate receiving 
     agency; and
       (C) references to transfers in section 776 shall be deemed 
     to include transfers under this section.
       (3) Administration.--Unexpended funds transferred pursuant 
     to this section shall be used only for the purposes for which 
     the funds were originally authorized and appropriated.
       (4) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) that have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official of a Federal agency, or by a court of competent 
     jurisdiction, in the performance of functions that are 
     transferred under this section; and
       (B) that are in effect on the effective date of this 
     section or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section;
     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the appropriate 
     receiving agency or other authorized official, a court of 
     competent jurisdiction, or by operation of law.
       (5) Proceedings not affected.--
       (A) In general.--The provisions of this section shall not 
     affect any proceedings, including notices of proposed 
     rulemaking, or any application for any license, permit, 
     certificate, or financial assistance pending before the 
     Department of Labor or the Department of Education on the 
     date this section takes effect, with respect to functions 
     transferred by this section.
       (B) Continuation.--Such proceedings and applications shall 
     be continued. Orders shall be issued in such proceedings, 
     appeals shall be taken from the orders, and payments shall be 
     made pursuant to such orders, as if this section had not been 
     enacted, and orders issued in any such proceedings shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by a duly authorized official, by a court of 
     competent jurisdiction, or by operation of law.
       (C) Construction.--Nothing in this paragraph shall be 
     deemed to prohibit the discontinuance or modification of any 
     such proceeding under the same terms and conditions and to 
     the same extent that such proceeding could have been 
     discontinued or modified if this section had not been 
     enacted.
       (6) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the Department 
     of Labor or the Department of Education relating to a 
     function transferred under this section may be continued by 
     the appropriate receiving agency with the same effect as if 
     this section had not been enacted.
       (d) Construction.--Nothing in this section shall be 
     construed to require the transfer of any function described 
     in subsection (b)(2)(A) to the Federal Partnership.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), this section shall take effect on June 30, 1998.
       (2) Regulations and conforming amendments.--Subsection 
     (c)(1)(B) shall take effect on September 30, 1996.
       (3) Workplan.--Subsection (b) shall take effect on the date 
     of enactment of this Act.

     SEC. 778. ELIMINATION OF CERTAIN OFFICES.

       (a) Termination.--The Office of Vocational and Adult 
     Education and the Employment and Training Administration 
     shall terminate on July 1, 1998.
       (b) Office of Vocational and Adult Education.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking ``Assistant 
     Secretaries of Education (10)'' and inserting ``Assistant 
     Secretaries of Education (9)''.
       (2) Department of education organization act.--
       (A) Section 202 of the Department of Education Organization 
     Act (20 U.S.C. 3412) is amended--
       (i) in subsection (b)(1)--

       (I) by striking subparagraph (C); and
       (II) by redesignating subparagraphs (D) through (F) as 
     subparagraphs (C) through (E), respectively;

       (ii) by striking subsection (h); and
       (iii) by redesignating subsection (i) as subsection (h).
       (B) Section 206 of such Act (20 U.S.C. 3416) is repealed.
       (C) Section 402(c)(1) of the Improving America's Schools 
     Act of 1994 (20 U.S.C. 9001(c)(1)) is amended by striking 
     ``established under'' and all that follows and inserting a 
     semicolon.
       (3) Goals 2000: educate america act.--Section 931(h)(3)(A) 
     of the Goals 2000: Educate America Act (20 U.S.C. 
     6031(h)(3)(A)) is amended--
       (A) by striking clause (iii); and
       (B) by redesignating clauses (iv) and (v) as clauses (iii) 
     and (iv), respectively.
       (c) Employment and Training Administration.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking ``Assistant 
     Secretaries of Labor (10)'' and inserting ``Assistant 
     Secretaries of Labor (9)''.
       (2) Veterans' benefits and programs improvement act of 
     1988.--Section 402(d)(3) of the Veterans' Benefits and 
     Programs Improvement Act of 1988 (29 U.S.C. 1721 note) is 
     amended by striking ``and under any other program 
     administered by the Employment and Training Administration of 
     the Department of Labor''.
       (3) Title 38, united states code.--Section 4110(d) of title 
     38, United States Code, is amended--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8) through (12) as 
     paragraphs (7) through (11), respectively.
       (4) National and community service act of 1990.--The last 
     sentence of section 162(b) of the National and Community 
     Service Act of 1990 (42 U.S.C. 12622(b)) is amended by 
     striking ``or the Office of Job Training''.
       (d) United States Employment Service.--
       (1) Title 5, united states code.--Section 3327 of title 5, 
     United States Code, is amended--
       (A) in subsection (a), by striking ``the employment offices 
     of the United States Employment Service'' and inserting 
     ``Governors''; and
       (B) in subsection (b), by striking ``of the United States 
     Employment Service''.
       (2) Title 10, united states code.--
       (A) Section 1143a(d) of title 10, United States Code, is 
     amended by striking paragraph (3).
       (B) Section 2410k(b) of title 10, United States Code, is 
     amended by striking ``, and where appropriate the Interstate 
     Job Bank (established by the United States Employment 
     Service),''.

[[Page S 13093]]

       (3) Internal revenue code of 1986.--Section 51 of the 
     Internal Revenue Code of 1986 is amended by striking 
     subsection (g).
       (4) National defense authorization act for fiscal year 
     1993.--Section 4468 of the National Defense Authorization Act 
     for Fiscal Year 1993 (29 U.S.C. 1662d-1 note) is repealed.
       (5) Title 38, united states code.--Section 4110(d) of title 
     38, United States Code (as amended by subsection (c)(3)), is 
     further amended--
       (A) by striking paragraph (10); and
       (B) by redesignating paragraph (11) as paragraph (10).
       (6) Title 39, united states code.--
       (A) Section 3202(a)(1) of title 39, United States Code is 
     amended--
       (i) in subparagraph (D), by striking the semicolon and 
     inserting ``; and'';
       (ii) by striking subparagraph (E); and
       (iii) by redesignating subparagraph (F) as subparagraph 
     (E).
       (B) Section 3203(b) of title 39, United States Code, is 
     amended by striking ``(1)(E), (2), and (3)'' and inserting 
     ``(2) and (3)''.
       (C) Section 3206(b) of title 39, United States Code, is 
     amended by striking ``(1)(F)'' and inserting ``(1)(E)''.
       (7) National and community service act of 1990.--Section 
     162(b) of the National and Community Service Act of 1990 (42 
     U.S.C. 12622(b)) (as amended by subsection (c)(4)) is further 
     amended by striking the last sentence.
       (e) Reorganization Plans.--Except with respect to functions 
     transferred under section 777, the authority granted to the 
     Employment and Training Administration, the Office of 
     Vocational and Adult Education, or any unit of the Employment 
     and Training Administration or the Office of Vocational and 
     Adult Education by any reorganization plan shall terminate on 
     July 1, 1998.
Subtitle F--Repeals of Employment and Training and Vocational and Adult 
                           Education Programs

     SEC. 781. REPEALS.

       (a) Immediate Repeals.--The following provisions are 
     repealed:
       (1) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (2) Title II of Public Law 95-250 (92 Stat. 172).
       (3) The Displaced Homemakers Self-Sufficiency Assistance 
     Act (29 U.S.C. 2301 et seq.).
       (4) Section 211 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App. 211).
       (5) Subtitle C of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11441 et seq.).
       (6) Section 5322 of title 49, United States Code.
       (7) Subchapter I of chapter 421 of title 49, United States 
     Code.
       (b) Subsequent Repeals.--The following provisions are 
     repealed:
       (1) Sections 235 and 236 of the Trade Act of 1974 (19 
     U.S.C. 2295 and 2296), and paragraphs (1) and (2) of section 
     250(d) of such Act (19 U.S.C. 2331(d)).
       (2) The Adult Education Act (20 U.S.C. 1201 et seq.).
       (3) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (4) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (5) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).
       (6) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (7) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (8) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle 
     C of such title.
       (c) Effective Dates.--
       (1) Immediate repeals.--The repeals made by subsection (a) 
     shall take effect on the date of enactment of this Act.
       (2) Subsequent repeals.--The repeals made by subsection (b) 
     shall take effect on July 1, 1998.

     SEC. 782. CONFORMING AMENDMENTS.

       (a) Immediate Repeals.--
       (1) References to section 204 of the immigration reform and 
     control act of 1986.--The table of contents for the 
     Immigration Reform and Control Act of 1986 is amended by 
     striking the item relating to section 204 of such Act.
       (2) References to title ii of public law 95-250.--Section 
     103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
       (A) by striking the second sentence of subsection (a); and
       (B) by striking the second sentence of subsection (b).
       (3) References to subtitle c of title vii of the stewart b. 
     mckinney homeless assistance act.--
       (A) Section 762(a) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11472(a)) is amended--
       (i) by striking ``each of the following programs'' and 
     inserting ``the emergency community services homeless grant 
     program established in section 751''; and
       (ii) by striking ``tribes:'' and all that follows and 
     inserting ``tribes.''.
       (B) The table of contents of such Act is amended by 
     striking the items relating to subtitle C of title VII of 
     such Act.
       (4) References to title 49, united states code.--
       (A) Sections 5313(b)(1) and 5314(a)(1) of title 49, United 
     States Code, are amended by striking ``5317, and 5322'' and 
     inserting ``and 5317''.
       (B) The table of contents for chapter 53 of title 49, 
     United States Code, is amended by striking the item relating 
     to section 5322.
       (b) Subsequent Repeals.--
       (1) References to the carl d. perkins vocational and 
     applied technology education act.--
       (A) Section 245A(h)(4)(C) of the Immigration and 
     Nationality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by 
     striking ``Vocational Education Act of 1963'' and inserting 
     ``Workforce Development Act of 1995''.
       (B) The Goals 2000: Educate America Act (20 U.S.C. 5801 et 
     seq.) is amended--
       (i) in section 306 (20 U.S.C. 5886)--

       (I) in subsection (c)(1)(A), by striking all beginning with 
     `` which process'' through ``Act'' and inserting ``which 
     process shall include coordination with the benchmarks 
     described in section 731(c)(2) of the Workforce Development 
     Act of 1995''; and
       (II) in subsection (l), by striking ``Carl D. Perkins 
     Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''; and

       (ii) in section 311(b) (20 U.S.C. 5891(b)), by striking 
     paragraph (6).
       (C) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) is amended--
       (i) in section 1114(b)(2)(C)(v) (20 U.S.C. 
     6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational 
     and Applied Technology Education Act'' and inserting 
     ``Workforce Development Act of 1995'';
       (ii) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
     striking ``Carl D. Perkins Vocational and Applied Technology 
     Education Act'' and inserting ``Workforce Development Act of 
     1995'';
       (iii) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--

       (I) by striking subparagraph (C); and
       (II) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (C), (D), and (E), respectively; and

       (iv) in the matter preceding subparagraph (A) of section 
     14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act'' and 
     inserting ``Workforce Development Act of 1995''.
       (D) Section 533(c)(4)(A) of the Equity in Educational Land-
     Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
     striking ``(20 U.S.C. 2397h(3)'' and inserting ``, as such 
     section was in effect on the day preceding the date of 
     enactment of the Workforce Development Act of 1995''.
       (E) Section 563 of the Improving America's Schools Act of 
     1994 (20 U.S.C. 6301 note) is amended by striking ``the date 
     of enactment of an Act reauthorizing the Carl D. Perkins 
     Vocational and Applied Technology Education Act (20 U.S.C. 
     2301 et seq.)'' and inserting ``July 1, 1998''.
       (F) Section 135(c)(3)(B) of the Internal Revenue Code of 
     1986 (26 U.S.C. 135(c)(3)(B)) is amended--
       (i) by striking ``subparagraph (C) or (D) of section 521(3) 
     of the Carl D. Perkins Vocational Education Act'' and 
     inserting ``subparagraph (C) or (D) of section 703(2) of the 
     Workforce Development Act of 1995''; and
       (ii) by striking ``any State (as defined in section 521(27) 
     of such Act)'' and inserting ``any State or outlying area (as 
     the terms `State' and `outlying area' are defined in section 
     703 of such Act)''.
       (G) Section 101(a)(11)(A) of the Rehabilitation Act of 1973 
     (29 U.S.C. 721(a)(11)(A)) is amended by striking ``Carl D. 
     Perkins Vocational and Applied Technology Education Act (20 
     U.S.C. 2301 et seq.)'' and inserting ``Workforce Development 
     Act of 1995''.
       (H) Section 214(c) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App. 214(c)) is amended by striking 
     ``Carl D. Perkins Vocational Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (I) Section 104 of the Vocational Education Amendments of 
     1968 (82 Stat. 1091) is amended by striking ``section 3 of 
     the Carl D. Perkins Vocational Education Act'' and inserting 
     ``the Workforce Development Act of 1995''.
       (2) References to the adult education act.--
       (A) Subsection (b) of section 402 of the Refugee Education 
     Assistance Act (8 U.S.C. 1522, note) is repealed.
       (B) Paragraph (20) of section 3 of the Library Services and 
     Construction Act (20 U.S.C. 351a(20)) is amended to read as 
     follows:
       ``(20) The term `educationally disadvantaged adult' means 
     an individual who--
       ``(A) is age 16 or older, or beyond the age of compulsory 
     school attendance under State law;
       ``(B) is not enrolled in secondary school;
       ``(C) demonstrates basic skills equivalent to or below that 
     of students at the fifth grade level; or
       ``(D) has been placed in the lowest or beginning level of 
     an adult education program when that program does not use 
     grade level equivalencies as a measure of students' basic 
     skills.''.
       (C)(i) Section 1202(c)(1) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6362(c)(1)) is amended by 
     striking ``Adult Education Act'' and inserting ``Workforce 
     Development Act of 1995''.
       (ii) Section 1205(8)(B) of such Act (20 U.S.C. 6365(8)(B)) 
     is amended by striking ``Adult Education Act'' and inserting 
     ``Workforce Development Act of 1995''.
       (iii) Section 1206(a)(1)(A) of such Act (20 U.S.C. 
     6366(a)(1)(A)) is amended by striking ``an adult basic 
     education program under the Adult Education Act'' and 
     inserting ``adult 

[[Page S 13094]]
     education activities under the Workforce Development Act of 1995''.
       (iv) Section 3113(1) of such Act (20 U.S.C. 6813(1)) is 
     amended by striking ``section 312 of the Adult Education 
     Act'' and inserting ``section 703 of the Workforce 
     Development Act of 1995''.
       (v) Section 9161(2) of such Act (20 U.S.C. 7881(2)) is 
     amended by striking ``section 312(2) of the Adult Education 
     Act'' and inserting ``section 703 of the Workforce 
     Development Act of 1995''.
       (D) Section 203(b)(8) of the Older Americans Act (42 U.S.C. 
     3013(b)(8)) is amended by striking ``Adult Education Act'' 
     and inserting ``Workforce Development Act of 1995''.
       (3) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Federal Partnership 
     shall prepare and submit to Congress recommended legislation 
     containing technical and conforming amendments to reflect the 
     changes made by section 781(b).
       (4) Submission to congress.--Not later than March 31, 1997, 
     the Federal Partnership shall submit the recommended 
     legislation referred to under paragraph (3).
          TITLE VIII--WORKFORCE DEVELOPMENT-RELATED ACTIVITIES
        Subtitle A--Amendments to the Rehabilitation Act of 1973

     SEC. 801. REFERENCES.

       Except as otherwise expressly provided in this subtitle, 
     whenever in this subtitle 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 Rehabilitation Act of 1973 
     (29 U.S.C. 701 et seq.).

     SEC. 802. FINDINGS AND PURPOSES.

       Section 2 (29 U.S.C. 701) is amended--
       (1) in subsection (a)(4), by striking ``the provision of 
     individualized training, independent living services, 
     educational and support services,'' and inserting 
     ``implementation of a statewide workforce development system 
     that provides meaningful and effective participation for 
     individuals with disabilities in workforce development 
     activities and activities carried out through the vocational 
     rehabilitation program established under title I, and through 
     the provision of independent living services, support 
     services,''; and
       (2) in subsection (b)(1)(A), by inserting ``statewide 
     workforce development systems that include, as integral 
     components,'' after ``(A)''.

     SEC. 803. CONSOLIDATED REHABILITATION PLAN.

       (a) In General.--Section 6 (29 U.S.C. 705) is repealed.
       (b) Conforming Amendment.--The table of contents for the 
     Act is amended by striking the item relating to section 6.

     SEC. 804. DEFINITIONS.

       Section 7 (29 U.S.C. 706) is amended by adding at the end 
     the following new paragraphs:
       ``(36) The term `statewide workforce development system' 
     means a statewide system, as defined in section 703 of the 
     Workforce Development Act of 1995.
       ``(37) The term `workforce development activities' has the 
     meaning given the term in section 703 of the Workforce 
     Development Act of 1995.
       ``(38) The term `workforce employment activities' means the 
     activities described in paragraphs (2) through (8) of section 
     716(a) of the Workforce Development Act of 1995, including 
     activities described in section 716(a)(6) of such Act 
     provided through a voucher described in section 716(a)(9) of 
     such Act.''.

     SEC. 805. ADMINISTRATION.

       Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by 
     inserting ``, including providing assistance to achieve the 
     meaningful and effective participation by individuals with 
     disabilities in the activities carried out through a 
     statewide workforce development system'' before the 
     semicolon.

     SEC. 806. REPORTS.

       Section 13 (29 U.S.C. 712) is amended in the fourth 
     sentence by striking ``The data elements'' and all that 
     follows through ``age,'' and inserting the following: ``The 
     information shall include all information that is required to 
     be submitted in the report described in section 731(a) of the 
     Workforce Development Act of 1995 and that pertains to the 
     employment of individuals with disabilities, including 
     information on age,''.

     SEC. 807. EVALUATION.

       Section 14(a) (29 U.S.C. 713(a)) is amended in the third 
     sentence by striking ``to the extent feasible,'' and all that 
     follows through the end of the sentence and inserting the 
     following: ``to the maximum extent appropriate, be consistent 
     with the State benchmarks established under paragraphs (1) 
     and (2) of section 731(c) of the Workforce Development Act of 
     1995. For purposes of this section, the Secretary may modify 
     or supplement such benchmarks after consultation with the 
     National Board established under section 772 of the Workforce 
     Development Act of 1995, to the extent necessary to address 
     unique considerations applicable to the participation of 
     individuals with disabilities in the vocational 
     rehabilitation program established under title I and 
     activities carried out under other provisions of this Act.''.

     SEC. 808. DECLARATION OF POLICY.

       Section 100(a) (29 U.S.C. 720(a)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (E), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (F)--
       (i) by inserting ``workforce development activities and'' 
     before ``vocational rehabilitation services''; and
       (ii) by striking the period and inserting ``; and''; and
       (C) by adding at the end the following subparagraph:
       ``(G) linkages between the vocational rehabilitation 
     program established under this title and other components of 
     the statewide workforce development system are critical to 
     ensure effective and meaningful participation by individuals 
     with disabilities in workforce development activities.''; and
       (2) in paragraph (2)--
       (A) by striking ``a comprehensive'' and inserting 
     ``statewide comprehensive''; and
       (B) by striking ``program of vocational rehabilitation that 
     is designed'' and inserting ``programs of vocational 
     rehabilitation, each of which is--
       ``(A) an integral component of a statewide workforce 
     development system; and
       ``(B) designed''.

     SEC. 809. STATE PLANS.

       (a) In General.--Section 101(a) (29 U.S.C. 721(a)) is 
     amended--
       (1) in the first sentence, by striking ``, or shall 
     submit'' and all that follows through ``et seq.)'' and 
     inserting ``, and shall submit the State plan on the same 
     dates as the State submits the State plan described in 
     section 714 of the Workforce Development Act of 1995 to the 
     Federal Partnership established under section 771 of such 
     Act'';
       (2) by inserting after the first sentence the following: 
     ``The State shall also submit the State plan for vocational 
     rehabilitation services for review and comment to any State 
     workforce development board established for the State under 
     section 715 of the Workforce Development Act of 1995, which 
     shall submit the comments on the State plan to the designated 
     State unit.'';
       (3) by striking paragraphs (10), (12), (13), (15), (17), 
     (19), (23), (27), (28), (30), (34), and (35);
       (4) in paragraph (20), by striking ``(20)'' and inserting 
     ``(B)'';
       (5) by redesignating paragraphs (3), (4), (5), (6), (7), 
     (8), (9), (14), (16), (18), (21), (22), (24), (25), (26), 
     (29), (31), (32), (33), and (36) as paragraphs (4), (5), (6), 
     (7), (8), (9), (10), (12), (13), (14), (15), (16), (17), 
     (18), (19), (20), (21), (22), (23), and (24), respectively;
       (6) in paragraph (1)(B)--
       (A) by redesignating clauses (i), (ii), and (iii) as 
     clauses (ii), (iii), and (iv), respectively; and
       (B) by inserting before clause (ii) (as redesignated in 
     subparagraph (A)) the following: ``(i) a State entity 
     primarily responsible for implementing workforce employment 
     activities through the statewide workforce development system 
     of the State,'';
       (7) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``(1)(B)(i)'' and inserting ``(1)(B)(ii)''; and
       (B) in subparagraph (B)(ii), by striking ``(1)(B)(ii)'' and 
     inserting ``(1)(B)(iii)'';
       (8) by inserting after paragraph (2) the following 
     paragraph:
       ``(3) provide a plan for expanding and improving vocational 
     rehabilitation services for individuals with disabilities on 
     a statewide basis, including--
       ``(A) a statement of values and goals;
       ``(B) evidence of ongoing efforts to use outcome measures 
     to make decisions about the effectiveness and future 
     direction of the vocational rehabilitation program 
     established under this title in the State; and
       ``(C) information on specific strategies for strengthening 
     the program as an integral component of the statewide 
     workforce development system established in the State, 
     including specific innovative, state-of-the-art approaches 
     for achieving sustained success in improving and expanding 
     vocational rehabilitation services provided through the 
     program, for all individuals with disabilities who seek 
     employment, through plans, policies, and procedures that link 
     the program with other components of the system, including 
     plans, policies, and procedures relating to--
       ``(i) entering into cooperative agreements, between the 
     designated State unit and appropriate entities responsible 
     for carrying out the other components of the statewide 
     workforce development system, which agreements may provide 
     for--
       ``(I) provision of intercomponent staff training and 
     technical assistance regarding the availability and benefits 
     of, and eligibility standards for, vocational rehabilitation 
     services, and regarding the provision of equal, effective, 
     and meaningful participation by individuals with disabilities 
     in workforce employment activities in the State through 
     program accessibility, use of nondiscriminatory policies and 
     procedures, and provision of reasonable accommodations, 
     auxiliary aids and services, and rehabilitation technology, 
     for individuals with disabilities;
       ``(II) use of information and financial management systems 
     that link all components of the statewide workforce 
     development system, that link the components to other 
     electronic networks, and that relate to such subjects as 
     labor market information, and information on job vacancies, 
     skill qualifications, career planning, and workforce 
     development activities;
       ``(III) use of customer service features such as common 
     intake and referral procedures, customer data bases, resource 
     information, and human service hotlines; 

[[Page S 13095]]

       ``(IV) establishment of cooperative efforts with employers 
     to facilitate job placement and to develop and sustain 
     working relationships with employers, trade associations, and 
     labor organizations;
       ``(V) identification of staff roles and responsibilities 
     and available resources for each entity that carries out a 
     component of the statewide workforce development system with 
     regard to paying for necessary services (consistent with 
     State law); and
       ``(VI) specification of procedures for resolving disputes 
     among such entities; and
       ``(ii) providing for the replication of such cooperative 
     agreements at the local level between individual offices of 
     the designated State unit and local entities carrying out 
     activities through the statewide workforce development 
     system;'';
       (9) in paragraph (6) (as redesignated in paragraph (5))--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) contain the plans, policies, and methods to be 
     followed in carrying out the State plan and in the 
     administration and supervision of the plan, including--
       ``(i)(I) the results of a comprehensive, statewide 
     assessment of the rehabilitation needs of individuals with 
     disabilities (including individuals with severe disabilities, 
     individuals with disabilities who are minorities, and 
     individuals with disabilities who have been unserved, or 
     underserved, by the vocational rehabilitation system) who are 
     residing within the State; and
       ``(II) the response of the State to the assessment;
       ``(ii) a description of the method to be used to expand and 
     improve services to individuals with the most severe 
     disabilities, including individuals served under part C of 
     title VI;
       ``(iii) with regard to community rehabilitation programs--
       ``(I) a description of the method to be used (such as a 
     cooperative agreement) to utilize the programs to the maximum 
     extent feasible; and
       ``(II) a description of the needs of the programs, 
     including the community rehabilitation programs funded under 
     the Act entitled ``An Act to Create a Committee on Purchases 
     of Blind-made Products, and for other purposes'', approved 
     June 25, 1938 (commonly known as the Wagner-O'Day Act; 41 
     U.S.C. 46 et seq.) and such programs funded by State use 
     contracting programs; and
       ``(iv) an explanation of the methods by which the State 
     will provide vocational rehabilitation services to all 
     individuals with disabilities within the State who
      are eligible for such services, and, in the event that 
     vocational rehabilitation services cannot be provided to 
     all such eligible individuals with disabilities who apply 
     for such services, information--
       ``(I) showing and providing the justification for the order 
     to be followed in selecting individuals to whom vocational 
     rehabilitation services will be provided (which order of 
     selection for the provision of vocational rehabilitation 
     services shall be determined on the basis of serving first 
     the individuals with the most severe disabilities in 
     accordance with criteria established by the State, and shall 
     be consistent with priorities in such order of selection so 
     determined, and outcome and service goals for serving 
     individuals with disabilities, established in regulations 
     prescribed by the Commissioner);
       ``(II) showing the outcomes and service goals, and the time 
     within which the outcomes and service goals may be achieved, 
     for the rehabilitation of individuals receiving such 
     services; and
       ``(III) describing how individuals with disabilities who 
     will not receive such services if such order is in effect 
     will be referred to other components of the statewide 
     workforce development system for access to services offered 
     by the components;''; and
       (B) by striking subparagraph (C) and inserting the 
     following subparagraphs:
       ``(C) with regard to the statewide assessment of 
     rehabilitation needs described in subparagraph (A)(i)--
       ``(i) provide that the State agency will make reports at 
     such time, in such manner, and containing such information, 
     as the Commissioner may require to carry out the functions of 
     the Commissioner under this title, and comply with such 
     provisions as are necessary to assure the correctness and 
     verification of such reports; and
       ``(ii) provide that reports made under clause (i) will 
     include information regarding individuals with disabilities 
     and, if an order of selection described in subparagraph 
     (A)(iv)(I) is in effect in the State, will separately include 
     information regarding individuals with the most severe 
     disabilities, on--
       ``(I) the number of such individuals who are evaluated and 
     the number rehabilitated;
       ``(II) the costs of administration, counseling, provision 
     of direct services, development of community rehabilitation 
     programs, and other functions carried out under this Act; and
       ``(III) the utilization by such individuals of other 
     programs pursuant to paragraph (11); and
       ``(D) describe--
       ``(i) how a broad range of rehabilitation technology 
     services will be provided at each stage of the rehabilitation 
     process;
       ``(ii) how a broad range of such rehabilitation technology 
     services will be provided on a statewide basis; and
       ``(iii) the training that will be provided to vocational 
     rehabilitation counselors, client assistance personnel, 
     personnel of the providers of one-stop delivery of core 
     services described in section 716(a)(2) of the Workforce 
     Development Act of 1995, and other related services 
     personnel;'';
       (10) in subparagraph (A) of paragraph (8) (as redesignated 
     in paragraph (5))--
       (A) in clause (i)(II), by striking ``, based on 
     projections'' and all that follows through ``relevant 
     factors''; and
       (B) by striking clauses (iii) and (iv) and inserting the 
     following clauses:
       ``(iii) a description of the ways in which the system for 
     evaluating the performance of rehabilitation counselors, 
     coordinators, and other personnel used in the State 
     facilitates the accomplishment of the purpose and policy of 
     this title, including the policy of serving, among others, 
     individuals with the most severe disabilities;
       ``(iv) provide satisfactory assurances that the system 
     described in clause (iii) in no way impedes such 
     accomplishment; and'';
       (11) in paragraph (9) (as redesignated in paragraph (5)) by 
     striking ``required--'' and all that follows through ``(B) 
     prior'' and inserting ``required prior'';
       (12) in paragraph (10) (as redesignated in paragraph (5))--
       (A) in subparagraph (B), by striking ``written 
     rehabilitation program'' and inserting ``employment plan''; 
     and
       (B) in subparagraph (C), by striking ``plan in accordance 
     with such program'' and inserting ``State plan in accordance 
     with the employment plan'';
       (13) in paragraph (11)--
       (A) in subparagraph (A), by striking ``State's public'' and 
     all that follows and inserting ``State programs that are not 
     part of the statewide workforce development system of the 
     State;''; and
       (B) in subparagraph (C)--
       (i) by striking ``if appropriate--'' and all that follows 
     through ``entering into'' and inserting ``if appropriate, 
     entering into'';
       (ii) by redesignating subclauses (I), (II), and (III) as 
     clauses (i), (ii), and (iii), respectively; and
       (iii) by indenting the clauses and aligning the margins of 
     the clauses with the margins of clause (ii) of subparagraph 
     (A) of paragraph (8) (as redesignated in paragraph (5));
       (14) in paragraph (14) (as redesignated in paragraph (5))--
       (A) by striking ``(14)'' and inserting ``(14)(A)''; and
       (B) by inserting before the semicolon the following ``, 
     and, in the case of the designated State unit, will take 
     actions to take such views into account that include 
     providing timely notice, holding public hearings, preparing a 
     summary of hearing comments, and documenting and 
     disseminating information relating to the manner in which the 
     comments will affect services; and'';
       (15) in paragraph (16) (as redesignated in paragraph (5)), 
     by striking ``referrals to other Federal and State programs'' 
     and inserting ``referrals within the statewide workforce 
     development system of the State to programs''; and
       (16) in paragraph (17) (as redesignated in paragraph (5))--
       (A) in subparagraph (B), by striking ``written 
     rehabilitation program'' and inserting ``employment plan''; 
     and
       (B) in subparagraph (C)--
       (i) in clause (ii), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in clause (iii), by striking the semicolon and 
     inserting ``; and''; and
       (iii) by adding at the end the following clause:
       ``(iv) the manner in which students who are individuals 
     with disabilities and who are not in special education 
     programs can access and receive vocational rehabilitation 
     services, where appropriate;''.
       (b) Conforming Amendments.--
       (1) Section 7 (29 U.S.C. 706) is amended--
       (A) in paragraph (3)(B)(ii), by striking 
     ``101(a)(1)(B)(i)'' and inserting ``101(a)(1)(B)(ii)''; and
       (B) in paragraph (22)(A)(i)(II), by striking 
     ``101(a)(5)(A)'' each place it appears and inserting 
     ``101(a)(6)(A)(iv)''.
       (2) Section 12(d) (29 U.S.C. 711(d)) is amended by striking 
     ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''.
       (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
       (A) in paragraph (1)(A), by striking ``paragraph (4) of 
     this subsection'' and inserting ``paragraph (5)'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``paragraph (1)(B)(i)'' and inserting ``paragraph 
     (1)(B)(ii)''; and
       (ii) in subparagraph (B)(i), by striking ``paragraph 
     (1)(B)(ii)'' and inserting ``paragraph (1)(B)(iii)'';
       (C) in paragraph (17) (as redesignated in subsection 
     (a)(5)), by striking ``paragraph (11)(C)(ii)'' and inserting 
     ``paragraph (11)(C)'';
       (D) in paragraph (22) (as redesignated in subsection 
     (a)(5)), by striking ``paragraph (36)'' and inserting 
     ``paragraph (24)''; and
       (E) in subparagraph (C) of paragraph (24) (as redesignated 
     in subsection (a)(5)), by striking ``101(a)(1)(A)(i)'' and 
     inserting ``paragraph (1)(A)(i)''.
       (4) Section 102 (29 U.S.C. 722) is amended--
       (A) in subsection (a)(3), by striking ``101(a)(24)'' and 
     inserting ``101(a)(17)''; and
       (B) in subsection (d)(2)(C)(ii)--
       (i) in subclause (II), by striking ``101(a)(36)'' and 
     inserting ``101(a)(24)''; and
       (ii) in subclause (III), by striking ``101(a)(36)(C)(ii)'' 
     and inserting ``101(a)(24)(C)(ii)''.

[[Page S 13096]]

       (5) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is amended by 
     striking ``101(a)(36)'' and inserting ``101(a)(24)''.
       (6) Section 107(a) (29 U.S.C. 727(a)) is amended--
       (A) in paragraph (2)(F), by striking ``101(a)(32)'' and 
     inserting ``101(a)(22)'';
       (B) in paragraph (3)(A), by striking ``101(a)(5)(A)'' and 
     inserting ``101(a)(6)(A)(iv)''; and
       (C) in paragraph (4), by striking ``101(a)(35)'' and 
     inserting ``101(a)(8)(A)(iii)''.
       (7) Section 111(a) (29 U.S.C. 731(a)) is amended--
       (A) in paragraph (1), by striking ``and development and 
     implementation'' and all that follows through ``referred to 
     in section 101(a)(34)(B)''; and
       (B) in paragraph (2)(A), by striking ``and such payments 
     shall not be made in an amount which would result in a 
     violation of the provisions of the State plan required by 
     section 101(a)(17)''.
       (8) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) is 
     amended by striking ``(not including sums used in accordance 
     with section 101(a)(34)(B))''.
       (9) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is amended by 
     striking ``101(a)(22)'' and inserting ``101(a)(16)''.
       (10) Section 635(b)(2) (29 U.S.C. 795n(b)(2)) is amended by 
     striking ``101(a)(5)'' and inserting ``101(a)(6)(A)(i)(I)''.
       (11) Section 802(h)(2)(B)(ii) (29 U.S.C. 797a(h)(2)(B)(ii)) 
     is amended by striking ``101(a)(5)(A)'' and inserting 
     ``101(a)(6)(A)(iv)''.
       (12) Section 102(e)(23)(A) of the Technology-Related 
     Assistance for Individuals With Disabilities Act of 1988 (29 
     U.S.C. 2212(e)(23)(A)) is amended by striking ``section 
     101(a)(36) of the Rehabilitation Act of 1973 (29 U.S.C. 
     721(a)(36))'' and inserting ``section 101(a)(24) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 721(a)(24))''.

     SEC. 810. INDIVIDUALIZED EMPLOYMENT PLANS.

       (a) In General.--Section 102 (29 U.S.C. 722) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.'';

       (2) in subsection (a)(6), by striking ``written 
     rehabilitation program'' and inserting ``employment plan'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A)--
       (i) in clause (i), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (ii) in clause (ii), by striking ``program'' and inserting 
     ``plan'';
       (B) in paragraph (1)(B)--
       (i) in the matter preceding clause (i), by striking 
     ``written rehabilitation program'' and inserting ``employment 
     plan'';
       (ii) in clause (iv)--

       (I) by striking subclause (I) and inserting the following:

       ``(I) include a statement of the specific vocational 
     rehabilitation services to be provided (including, if 
     appropriate, rehabilitation technology services and training 
     in how to use such services) that includes specification of 
     the public or private entity that will provide each such 
     vocational rehabilitation service and the projected dates for 
     the initiation and the anticipated duration of each such 
     service; and'';

       (II) by striking subclause (II); and
       (III) by redesignating subclause (III) as subclause (II); 
     and

       (iii) in clause (xi)(I), by striking ``program'' and 
     inserting ``plan'';
       (C) in paragraph (1)(C), by striking ``written 
     rehabilitation program and amendments to the program'' and 
     inserting ``employment plan and amendments to the plan''; and
       (D) in paragraph (2)--
       (i) by striking ``program'' each place the term appears and 
     inserting ``plan''; and
       (ii) by striking ``written rehabilitation'' each place the 
     term appears and inserting ``employment'';
       (4) in subsection (c)--
       (A) in paragraph (1), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (B) by striking ``written program'' each place the term 
     appears and inserting ``plan''; and
       (5) in subsection (d)--
       (A) in paragraph (5), by striking ``written rehabilitation 
     program'' and inserting ``employment plan''; and
       (B) in paragraph (6)(A), by striking the second sentence.
       (b) Conforming Amendments.--
       (1) The table of contents for the Act is amended by 
     striking the item relating to section 102 and inserting the 
     following:

``Sec. 102. Individualized employment plans.''.

       (2) Paragraphs (22)(B) and (27)(B), and subparagraphs (B) 
     and (C) of paragraph (34) of section 7 (29 U.S.C. 706), 
     section 12(e)(1) (29 U.S.C. 711(e)(1)), section 501(e) (29 
     U.S.C. 791(e)), subparagraphs (C), (D), and (E) of section 
     635(b)(6) (29 U.S.C. 795n(b)(6) (C), (D), and (E)), section 
     802(g)(8)(B) (29 U.S.C. 797a(g)(8)(B)), and section 
     803(c)(2)(D) (29 U.S.C. 797b(c)(2)(D)) are amended by 
     striking ``written rehabilitation program'' each place the 
     term appears and inserting ``employment plan''.
       (3) Section 7(22)(B)(i) (29 U.S.C. 706(22)(B)(i)) is 
     amended by striking ``rehabilitation program'' and inserting 
     ``employment plan''.
       (4) Section 107(a)(3)(D) (29 U.S.C. 727(a)(3)(D)) is 
     amended by striking ``written rehabilitation programs'' and 
     inserting ``employment plans''.
       (5) Section 101(b)(7)(A)(ii)(II) of the Technology-Related 
     Assistance for Individuals With Disabilities Act of 1988 (29 
     U.S.C. 2211(b)(7)(A)(ii)(II)) is amended by striking 
     ``written rehabilitation program'' and inserting ``employment 
     plan''.

     SEC. 811. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

       Section 103 (29 U.S.C. 723) is amended--
       (1) in subsection (a)(4)--
       (A) in subparagraph (B), by striking ``surgery or'';
       (B) in subparagraph (D), by striking the comma at the end 
     and inserting ``, and'';
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraph (F) as subparagraph (E); 
     and
       (2) in subsection (b)(1), by striking ``the most severe''.

     SEC. 812. STATE REHABILITATION ADVISORY COUNCIL.

       (a) In General.--Section 105 (29 U.S.C. 725) is amended--
       (1) in subsection (b)(1)(A)(vi), by inserting before the 
     semicolon the following: ``who, to the extent feasible, are 
     members of any State workforce development board established 
     for the State under section 715 of the Workforce Development 
     Act of 1995''; and
       (2) in subsection (c)--
       (A) by redesignating paragraphs (3) through (7) as 
     paragraphs (4) through (8), respectively;
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) advise the designated State agency and the designated 
     State unit regarding strategies for ensuring that the 
     vocational rehabilitation program established under this 
     title becomes an integral part of the statewide workforce 
     development system of the State;''; and
       (C) in paragraph (6) (as redesignated in subparagraph 
     (A))--
       (i) by striking ``6024), and'' and inserting ``6024),''; 
     and
       (ii) by striking the semicolon at the end and inserting the 
     following: ``, and any State workforce development board 
     established for the State under section 715 of the Workforce 
     Development Act of 1995;''.
       (b) Conforming Amendment.--Subparagraph (B)(iv), and 
     clauses (ii)(I) and (iii)(I) of subparagraph (C), of 
     paragraph (24) (as redesignated in section 409(a)(5)) of 
     section 101(a) (29 U.S.C. 721(a)) are amended by striking 
     ``105(c)(3)'' and inserting ``105(c)(4)''.

     SEC. 813. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

       Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
       (1) by striking ``1994'' and inserting ``1996''; and
       (2) by striking the period and inserting the following: 
     ``that shall, to the maximum extent appropriate, be 
     consistent with the State benchmarks established under 
     paragraphs (1) and (2) of section 731(c) of the Workforce 
     Development Act of 1995. For purposes of this section, the 
     Commissioner may modify or supplement such benchmarks, after 
     consultation with the National Board established under 
     section 772 of the Workforce Development Act of 1995, to the 
     extent necessary to address unique considerations applicable 
     to the participation of individuals with disabilities in the 
     vocational rehabilitation program.''.

     SEC. 814. REPEALS.

       (a) In General.--Title I (29 U.S.C. 720 et seq.) is 
     amended--
       (1) by repealing part C; and
       (2) by redesignating parts D and E as parts C and D, 
     respectively.
       (b) Conforming Amendments.--The table of contents for the 
     Act is amended--
       (1) by striking the items relating to part C of title I; 
     and
       (2) by striking the items relating to parts D and E of 
     title I and inserting the following:
      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 130. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 140. Review of data collection and reporting system.
``Sec. 141. Exchange of data.''.
     SEC. 815. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this subtitle shall take effect on the 
     date of enactment of this Act.
       (b) Statewide System Requirements.--The changes made in the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) by the 
     amendments made by this subtitle that relate to State 
     benchmarks, or other components of a statewide system, shall 
     take effect--
       (1) in a State that submits and obtains approval of an 
     interim plan under section 763 for program year 1997, on July 
     1, 1997; and
       (2) in any other State, on July 1, 1998.
       Subtitle B--Amendments to Immigration and Nationality Act

     SEC. 821. PROHIBITION ON USE OF FUNDS FOR CERTAIN EMPLOYMENT 
                   ACTIVITIES.

       Section 412(c)(1) of the Immigration and Nationality Act is 
     amended by adding at the end the following new subparagraph:
       ``(D) Funds available under this paragraph may not be 
     provided to States for workforce employment activities 
     authorized and funded under the Workforce Development Act of 
     1995.''.

[[Page S 13097]]

      Subtitle C--Amendments to the National Literacy Act of 1991

     SEC. 831. NATIONAL INSTITUTE FOR LITERACY.

       Section 102 of the National Literacy Act of 1991 (20 U.S.C. 
     1213c note) is amended to read as follows:

     ``SEC. 102. NATIONAL INSTITUTE FOR LITERACY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the National 
     Institute for Literacy (in this section referred to as the 
     `Institute'). The Institute shall be administered by the 
     National Board established under section 772 of the Workforce 
     Development Act of 1995 (in this section referred to as the 
     `National Board'). The National Board may include in the 
     Institute any research and development center, institute, or 
     clearinghouse that the National Board determines is 
     appropriately included in the Institute.
       ``(2) Offices.--The Institute shall have offices separate 
     from the offices of the Department of Education or the 
     Department of Labor.
       ``(3) Recommendations.--The National Board shall consider 
     the recommendations of the National Institute Council 
     established under subsection (d) in planning the goals of the 
     Institute and in the implementation of any programs to 
     achieve such goals. The daily operations of the Institute 
     shall be carried out by the Director of the Institute 
     appointed under subsection (g). If such Council's 
     recommendations are not followed, the National Board shall 
     provide a written explanation to such Council concerning 
     actions the National Board has taken that includes the 
     National Board's reasons for not following such Council's 
     recommendations with respect to such actions. Such Council 
     may also request a meeting with the National Board to discuss 
     such Council's recommendations.
       ``(b) Duties.--
       ``(1) In general.--The Institute is authorized, in order to 
     improve the quality and accountability of the adult basic 
     skills and literacy delivery system, to--
       ``(A) coordinate the support of research and development on 
     literacy and basic skills education across Federal agencies 
     and carry out basic and applied research and development on 
     topics such as--
       ``(i) identifying effective models of basic skills and 
     literacy education for adults and families that are essential 
     to success in job training, work, the family, and the 
     community;
       ``(ii) carrying out evaluations of the effectiveness of 
     literacy and adult education programs and services, including 
     those supported by this Act; and
       ``(iii) supporting the development of models at the State 
     and local level of accountability systems that consist of 
     goals, performance measures, benchmarks, and assessments that 
     can be used to improve the quality of literacy and adult 
     education services;
       ``(B) provide technical assistance, information, and other 
     program improvement activities to national, State, and local 
     organizations, such as--
       ``(i) providing information and training to State and local 
     workforce development boards and one-stop centers concerning 
     how literacy and basic skills services can be incorporated in 
     a coordinated workforce development model;
       ``(ii) improving the capacity of national, State, and local 
     public and private literacy and basic skills professional 
     development and technical assistance organizations, such as 
     the State Literacy Resource Centers established under section 
     103; and
       ``(iii) providing information on-line and in print to all 
     literacy and basic skills programs about best practices, 
     models of collaboration for effective workforce, family, 
     English as a Second Language, and other literacy programs, 
     and other informational and communication needs; and
       ``(C) work with the National Board, the Departments of 
     Education, Labor, and Health and Human Services, and the 
     Congress to ensure that they have the best information 
     available on literacy and basic skills programs in 
     formulating Federal policy around the issues of literacy, 
     basic skills, and workforce development.
       ``(2) Contracts, cooperative agreements, and grants.--The 
     Institute may enter into contracts or cooperative agreements 
     with, or make grants to, individuals, public or private 
     nonprofit institutions, agencies, organizations, or consortia 
     of such institutions, agencies, or organizations to carry out 
     the activities of the Institute. Such grants, contracts, or 
     agreements shall be subject to the laws and regulations that 
     generally apply to grants, contracts, or agreements entered 
     into by Federal agencies.
       ``(c) Literacy Leadership.--
       ``(1) Fellowships.--The Institute is, in consultation with 
     the Council, authorized to award fellowships, with such 
     stipends and allowances that the Director considers 
     necessary, to outstanding individuals pursuing careers in 
     adult education or literacy in the areas of instruction, 
     management, research, or innovation.
       ``(2) Use of fellowships.--Fellowships awarded under this 
     subsection shall be used, under the auspices of the 
     Institute, to engage in research, education, training, 
     technical assistance, or other activities to advance the 
     field of adult education or literacy, including the training 
     of volunteer literacy providers at the national, State, or 
     local level.
       ``(3) Designation.--Individuals receiving fellowships 
     pursuant to this subsection shall be known as ``Literacy 
     Leader Fellows''.
       ``(d) National Institute Council.--
       ``(1) In general.--
       ``(A) Establishment.--There is established the National 
     Institute Council (in this section referred to as the 
     ``Council''). The Council shall consist of 10 individuals 
     appointed by the President with the advice and consent of the 
     Senate from individuals who--
       ``(i) are not otherwise officers or employees of the 
     Federal Government;
       ``(ii) are representative of entities or groups described 
     in subparagraph (B); and
       ``(iii) are chosen from recommendations made to the 
     President by individuals who represent such entities or 
     groups.
       ``(B) Entities or groups.--Entities or groups described in 
     this subparagraph are--
       ``(i) literacy organizations and providers of literacy 
     services, including--

       ``(I) providers of literacy services receiving assistance 
     under this Act; and
       ``(II) nonprofit providers of literacy services;

       ``(ii) businesses that have demonstrated interest in 
     literacy programs;
       ``(iii) literacy students;
       ``(iv) experts in the area of literacy research;
       ``(v) State and local governments; and
       ``(vi) organized labor.
       ``(2) Duties.--The Council shall--
       ``(A) make recommendations concerning the appointment of 
     the Director and staff of the Institute;
       ``(B) provide independent advice on the operation of the 
     Institute; and
       ``(C) receive reports from the National Board and the 
     Director.
       ``(3) Except as otherwise provided, the Council established 
     by this subsection shall be subject to the provisions of the 
     Federal Advisory Committee Act.
       ``(4) Appointment.--
       ``(A) Duration.--Each member of the Council shall be 
     appointed for a term of 3 years. Any such member may be 
     appointed for not more than 2 consecutive terms.
       ``(B) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that members' term until a successor has taken 
     office. A vacancy in the Council shall be filled in the 
     manner in which the original appointment was made. A vacancy 
     in the Council shall not affect the powers of the Council.
       ``(5) Quorum.--A majority of the members of the Council 
     shall constitute a quorum but a lesser number may hold 
     hearings. Any recommendation may be passed only by a majority 
     of its members present.
       ``(6) Election of officers.--The Chairperson and Vice 
     Chairperson of the Council shall be elected by the members. 
     The term of office of the Chairperson and Vice Chairperson 
     shall be 2 years.
       ``(7) Meetings.--The Council shall meet at the call of the 
     Chairperson or a majority of its members.
       ``(e) Gifts, Bequests, and Devises.--The Institute and the 
     Council may accept (but not solicit), use, and dispose of 
     gifts, bequests, or devises of services or property, both 
     real and personal, for the purpose of aiding or facilitating 
     the work of the Institute or the Council, respectively. 
     Gifts, bequests, or devises of money and proceeds from sales 
     of other property received as gifts, bequests, or devises 
     shall be deposited in the Treasury and shall be available for 
     disbursement upon order of the Institute or the Council, 
     respectively.
       ``(f) Mails.--The Council and the Institute may use the 
     United States mails in the same manner and under the same 
     conditions as other departments and agencies of the United 
     States.
       ``(g) Staff.--The National Board, after considering 
     recommendations made by the Council, shall appoint and fix 
     the pay of a Director of the Institute and staff of the 
     Institute.
       ``(h) Applicability of Certain Civil Service Laws.--The 
     Director of the Institute and staff of the Institute may be 
     appointed without regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, and may be paid without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of that title 
     relating to classification and General Schedule pay rates, 
     except that an individual so appointed may not receive pay in 
     excess of the annual rate of basic pay payable for GS-15 of 
     the General Schedule.
       ``(i) Experts and Consultants.--The Council and the 
     Institute may procure temporary and intermittent services 
     under section 3109(b) of title 5, United States Code.
       ``(j) Report.--The Institute shall submit a report to the 
     Congress biennially. Each report submitted under this 
     subsection shall include--
       ``(1) a comprehensive and detailed description of the 
     Institute's operations, activities, financial condition, and 
     accomplishments in the field of literacy for such fiscal 
     year;
       ``(2) a description of how plans for the operation of the 
     Institute for the succeeding fiscal year will facilitate 
     achievement of the goals of the Institute and the goals of 
     the literacy programs within the National Board, Department 
     of Education, the Department of Labor, and the Department of 
     Health and Human Services; and
       ``(3) any additional minority, or dissenting views 
     submitted by members of the Council.

[[Page S 13098]]

       ``(k) Funding.--Any amounts appropriated to the National 
     Board, the Secretary of Education, the Secretary of Labor, or 
     the Secretary of Health and Human Services for purposes that 
     the Institute is authorized to perform under this section may 
     be provided to the Institute for such purposes.''.

     SEC. 832. STATE LITERACY RESOURCE CENTERS.

       Section 103 of the National Literacy Act of 1991 is amended 
     to read as follows:

     ``SEC. 103. STATE LITERACY RESOURCE CENTERS.

       ``(a) Purpose.--The purpose of this section is to establish 
     a network of State or regional adult literacy resource 
     centers to assist State and local public and private 
     nonprofit efforts to eliminate illiteracy by--
       ``(1) stimulating the coordination of literacy services;
       ``(2) enhancing the capacity of State and local 
     organizations to provide literacy services; and
       ``(3) serving as a reciprocal link between the National 
     Institute for Literacy established under section 102 and 
     service providers for the purpose of sharing information, 
     data, research, and expertise and literacy resources.
       ``(b) Establishment.--From amounts appropriated pursuant to 
     section 734(b)(5) of the Workforce Develop-
                                                                    ____

                           Amendment No. 2647

       At the end of section 716, add the following new 
     subsection:
       (h) All Aspects of an Industry.--
       (1) Definition.--As used in this subsection, the term ``all 
     aspects of an industry'', used with respect to a participant, 
     means all aspects of the industry or industry sector the 
     participant is preparing to enter, including planning, 
     management, finances, technical and production skills, 
     underlying principles of technology, labor and community 
     issues, health and safety issues, and environmental issues, 
     related to such industry or industry sector.
       (2) Workforce education activities and school-to-work 
     activities.--Each State that receives an allotment under 
     section 712 shall ensure that the workforce education 
     activities and school-to-work activities carried out with 
     funds made available through the allotment provide strong 
     experience in and understanding of all aspects of an industry 
     relating to the career major of each participant in either 
     type of activities.
       (3) State plan requirement.--To be eligible to receive an 
     allotment under section 712, the State shall specify, in the 
     portion of the State plan described in section 714(c)(3) 
     (relating to workforce education activities), how the 
     activities will provide participants with the experience and 
     understanding described in paragraph (2).
       (4) State benchmarks.--In developing and identifying State 
     benchmarks that measure student mastery of academic knowledge 
     and work readiness skills under section 731(c)(2)(A), the 
     State shall develop and identify State benchmarks that 
     measure the understanding of all aspects of an industry by 
     student participants.
                                                                    ____


                           Amendment No. 2648

       On page 323, line 8, strike ``under the direction of the 
     National Board'' and insert ``under the joint direction of 
     the Secretary of Labor and the Secretary of Education''.
       On page 469, lines 4 and 5, strike ``The Federal 
     Partnership shall be directed by'' and insert ``There shall 
     be in the Federal Partnership''.
       On page 470, lines 20 and 21, strike ``oversee all 
     activities'' and insert ``provide advice to the Secretary of 
     Labor and the Secretary of Education regarding all 
     activities''.
       On page 476, line 19, strike ``to the National Board''.
       On page 496, line 4, strike ``to the National Board'' and 
     insert ``to the President''.
       On page 496, lines 7 through 9, strike ``the President, the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives,'' and insert ``the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives''.
       Beginning on page 497, strike line 25 and all that follows 
     through page 500, line 4, and insert the following:
       (3) Review.--
       (A) In general.--Not later than 45 days after the date of 
     submission of the proposed workplan under paragraph (1), the 
     President shall--
       (i) review and approve the workplan; or
       (ii) reject the workplan, prepare an alternative workplan 
     that contains the analysis, information, and determinations 
     described in paragraph (2), and submit the alternative 
     workplan to the Committee on Economic and Educational 
     Opportunities of the House of Representatives and the 
     Committee on Labor and Human Resources of the Senate.
       (B) Functions transferred.--If the President approves the 
     proposed workplan, or prepares the alternative workplan, the 
     functions described in paragraph (2)(C), as determined in 
     such proposed or alternative workplan, shall be transferred 
     under subsection (b).
       (C) Special rule.--If the President takes no action on the 
     proposed workplan submitted under paragraph (1) within the 
     45-day period described in subparagraph (A), such workplan 
     shall be deemed to be approved and shall take effect on the 
     day after the end of such period. The functions described in 
     paragraph (2)(C), as determined in the proposed workplan, 
     shall be transferred under subsection (b).
       (4) Report.--Not later than July 1, 1998, the Secretary of 
     Education and the Secretary of Labor shall submit to the 
     appropriate committees of Congress information on the 
     transfers required by this section.
       On page 501, line 5, strike ``National Board'' and insert 
     ``Secretary of Labor and Secretary of Education, acting 
     jointly''.
       On page 501, lines 8 and 9, strike ``National Board'' and 
     insert ``Secretaries''.
       On page 501, lines 11 and 12, strike ``National Board'' and 
     insert ``Secretary of Labor and Secretary of Education''.
       On page 501, line 13, strike ``National Board'' and insert 
     ``Secretaries''.
       On page 501, line 15, strike ``National Board'' and insert 
     ``Secretary of Labor and Secretary of Education, acting 
     jointly''.
       On page 505, line 9, strike ``National Board'' and insert 
     ``Secretary of Labor and Secretary of Education, acting 
     jointly''.
       On page 511, lines 4 and 5, strike ``Director, or National 
     Board'' and insert ``or Director,''.
       On page 558, strike lines 15 through 18 and insert the 
     following:

     administered by the Secretary of Education (referred to in 
     this section as the `Secretary'). The Secretary may include 
     in
       On page 558, line 20, strike ``National Board'' and insert 
     ``Secretary''.
       On page 559, lines 1 and 2, strike ``National Board'' and 
     insert ``Secretary''.
       On page 559, lines 9 and 10, strike ``National Board'' and 
     insert ``Secretary''.
       On page 559, line 11, strike ``National Board'' and insert 
     ``Secretary''.
       On page 559, line 12, strike ``National Board's'' and 
     insert ``Secretary's''.
       On page 559, line 15, strike ``National Board'' and insert 
     ``Secretary''.
       On page 564, lines 19 and 20, strike ``National Board'' and 
     insert ``Secretary''.
       On page 566, line 18, strike ``National Board'' and insert 
     ``Secretary''.
       On page 567, line 22, strike ``National Board,''.
       On page 568, lines 3 and 4, strike ``the National Board,''.
       On page 569, line 3, strike ``National Board'' and insert 
     ``Secretary of Education (referred to in this section as the 
     `Secretary')''.
       On page 569, line 9, strike ``National Board'' and insert 
     ``Secretary''.
       On page 572, line 24, strike ``National Board'' and insert 
     ``Secretary''.
       On page 573, line 22, strike ``National Board'' and insert 
     ``Secretary''.
       On page 575, line 5, strike ``National Board'' and insert 
     ``Secretary''.
       On page 575, line 10, strike ``National Board'' and insert 
     ``Secretary''.
       On page 575, line 15, strike ``National Board'' and insert 
     ``Secretary''.
                           Amendment No. 2649

       At the end of section 716, add the following new 
     subsection:
       (h) Nontraditional Occupations.--
       (1) Definition.--The term ``nontraditional occupation'', 
     used with respect to women or men, refers to an occupation or 
     field of work in which women or men, respectively, comprise 
     less than 25 percent of the individuals employed in such 
     occupation or field of work.
       (2) Work force employment activities.--Each State that 
     receives an allotment under section 712 may, in carrying out 
     work force employment activities with funds made available 
     through the allotment, carry out--
       (A) programs encouraging women and men to consider 
     nontraditional occupations for women and men, respectively; 
     and
       (B) development and training relating to provision of 
     effective services, including the provision of current 
     information (as of the date of the provision) on high-wage, 
     high-demand occupations, to individuals with multiple 
     barriers to employment.
       (3) Work force education activities.--Each State that 
     receives an allotment under section 712 shall ensure that the 
     work force education activities carried out with funds made 
     available through the allotment provide exposure to high-
     wage, high-skill careers.
       (4) State benchmarks.--In developing and identifying State 
     benchmarks under section 731(c)(1), the State shall develop 
     and identify State benchmarks that measure the understanding 
     of all aspects of an industry by participants.
                                                                    ____

                           Amendment No. 2650

       At the end of subtitle C, add the following:

     SEC. 760. NONTRADITIONAL OCCUPATIONS.

       (a) Definition.--The term ``nontraditional occupation'', 
     used with respect to women or men, refers to an occupation or 
     field of work in which women or men, respectively, comprise 
     less than 25 percent of the individuals employed in such 
     occupation or field of work.
       (b) Job Corps.--A State that receives funds through an 
     allotment made under section 759(c)(2) shall ensure that 
     enrollees assigned to Job Corps centers in the State receive 
     career awareness activities relating to nontraditional 
     occupations for women and men.
       (c) Permissible Workforce Preparation Activities.--A State 
     that receives funds through an allotment made under section 
     759(c)(3) and uses the funds to assist entities in providing 
     work-based learning as a component of school-to-work 
     activities under section 759(b)(2)(B) shall ensure that the 
     work-based learning includes career exploration programs and 
     occupational skill training relating to nontraditional 
     occupations for women and men.
     
[[Page S 13099]]


                           Amendment No. 2651

       On page 340, line 9, after ``State'' insert the following: 
     ``, including how the State will develop, adopt, or use 
     industry-recognized skill standards, such as the skill 
     standards endorsed by the National Skill Standards Board, to 
     identify skill needs for current (as of the date of 
     submission of the plan) and emerging occupations''.
                                                                    ____

                           Amendment No. 2652

       Beginning on page 349, strike line 6 and all that follows 
     through page 351, line 20, and insert the following:

     dent performance measures, including measures of academic and 
     occupational skills at levels specified in challenging 
     standards, such as the student performance standards 
     certified by the National Education Standards and Improvement 
     Council (and not disapproved by the National Education Goals 
     Panel) and the skill standards endorsed by the National Skill 
     Standards Board, that are developed, adopted, or used by the 
     State.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;

     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan;
       (3) the Federal Partnership determines that the State, in 
     preparing the plan, has described activities that will enable 
     the State to meet the State benchmarks; and
       (4) the State benchmarks for the State have
                           Amendment No. 2653

       In section 714(c)(2)(E), strike ``labor market 
     information'' and insert ``labor market and occupational 
     information (referred to in this Act as `labor market 
     information')''.
                                                                    ____

                           Amendment No. 2654

       Strike section 773 and insert the following:

     SEC. 773. LABOR MARKET INFORMATION.

       (a) Federal Responsibilities.--The Federal Partnership, in 
     accordance with the provisions of this section, shall oversee 
     the development, maintenance, and continuous improvement of a 
     nationwide integrated labor market information system that 
     shall include--
       (1) statistical data from cooperative statistical survey 
     and projection programs and data from administrative 
     reporting systems, that, taken together, shall enumerate, 
     estimate, and project the supply and demand for labor at the 
     substate, State, and national levels in a timely manner, 
     including data on--
       (A) the demographics, socioeconomic characteristics, and 
     current employment status of the substate, State, and 
     national populations (as of the date of the collection of the 
     data), including self-employed, part-time, and seasonal 
     workers;
       (B) job vacancies, education and training requirements, 
     skills, wages, benefits, working conditions, and industrial 
     distribution, of occupations, as well as current and 
     projected employment opportunities and trends by industry and 
     occupation;
       (C) the educational attainment, training, skills, skill 
     levels, and occupations of the populations;
       (D) information maintained in a longitudinal manner on the 
     quarterly earnings, establishment and industry affiliation, 
     and geographic location of employment for all individuals for 
     whom the information is collected by the States; and
       (E) the incidence, industrial and geographical location, 
     and number of workers displaced by permanent layoffs and 
     plant closings;
       (2) State and substate area employment and consumer 
     information (which shall be current, comprehensive, 
     automated, accessible, easy to understand, and in a form 
     useful for facilitating immediate employment, entry into 
     education and training programs, and career exploration) on--
       (A) job openings, locations, hiring requirements, and 
     application procedures, including profiles of industries in 
     the local labor market that describe the nature of work 
     performed, employment requirements, and patterns in wages and 
     benefits;
       (B) jobseekers, including the education, training, and 
     employment experience of the jobseekers; and
       (C) the cost and effectiveness of providers of workforce 
     employment activities, workforce education activities, and 
     flexible workforce activities, including the percentage of 
     program completion, acquisition of skills to meet industry-
     recognized skill standards, continued education, job 
     placement, and earnings, by participants, and other 
     information that may be useful in facilitating informed 
     choices among providers by participants;
       (3) technical standards for labor market information that 
     will--
       (A) ensure compatibility of the information and the ability 
     to aggregate the information from substate areas to State and 
     national levels;
       (B) support standardization and aggregation of the data 
     from administrative reporting systems;
       (C) include--
       (i) classification and coding systems for industries, 
     occupations, skills, programs, and courses;
       (ii) nationally standardized definitions of labor market 
     and occupational terms, including terms related to State 
     benchmarks established pursuant to section 731(c);
       (iii) quality control mechanisms for the collection and 
     analysis of labor market information; and
       (iv) common schedules for collection and dissemination of 
     labor market information; and
       (D) eliminate gaps and duplication in statistical 
     undertakings, with a high priority given to the systemization 
     of wage surveys;
       (4) an analysis of data and information described in 
     paragraphs (1) and (2) for uses such as--
       (A) national, State, and substate area economic 
     policymaking;
       (B) planning and evaluation of workforce development 
     activities;
       (C) the implementation of Federal policies, including the 
     allocation of Federal funds to States and substate areas; and
       (D) research on labor market and occupational dynamics;
       (5) dissemination mechanisms for data and analysis, 
     including mechanisms that may be standardized among the 
     States; and
       (6) programs of technical assistance for States and 
     substate areas in the development, maintenance, utilization, 
     and continuous improvement of the data, information, 
     standards, analysis, and dissemination mechanisms, described 
     in paragraphs (1) through (5).
       (b) Joint Federal-State Responsibilities.--
       (1) In general.--The nationwide integrated labor market 
     information system shall be planned, administered, overseen, 
     and evaluated through a cooperative governance structure 
     involving the Federal Government and the States receiving 
     financial assistance under this title.
       (2) Annual plan.--The Federal Partnership shall, with the 
     assistance of the Bureau of Labor Statistics and other 
     Federal agencies, where appropriate, prepare an annual plan 
     that shall be the mechanism for achieving the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system. The plan shall--
       (A) establish goals for the development and improvement of 
     a nationwide integrated labor market information system based 
     on information needs for achieving economic growth and 
     productivity, accountability, fund allocation equity, and an 
     understanding of labor market and occupational 
     characteristics and dynamics;
       (B) describe the elements of the system, including--
       (i) standards, definitions, formats, collection 
     methodologies, and other necessary system elements, for use 
     in collecting the data and information described in 
     paragraphs (1) and (2) of subsection (a); and
       (ii) assurances that--

       (I) data will be sufficiently timely and detailed for uses 
     including the uses described in subsection (a)(4);
       (II) administrative records will be standardized to 
     facilitate the aggregation of data from substate areas to 
     State and national levels and to support the creation of new 
     statistical series from program records; and
       (III) paperwork and reporting requirements on employers and 
     individuals will be reduced;

[[Page S 13100]]


       (C) recommend needed improvements in administrative 
     reporting systems to be used for the nationwide integrated 
     labor market information system;
       (D) describe the current spending on integrated labor 
     market information activities from all sources, assess the 
     adequacy of the funds spent, and identify the specific budget 
     needs of the Federal Government and States with respect to 
     implementing and improving the nationwide integrated labor 
     market information system;
       (E) develop a budget for the nationwide integrated labor 
     market information system that--
       (i) accounts for all funds described in subparagraph (D) 
     and any new funds made available pursuant to this title; and
       (ii) describes the relative allotments to be made for--

       (I) operating the cooperative statistical programs pursuant 
     to subsection (a)(1);
       (II) developing and providing employment and consumer 
     information pursuant to subsection (a)(2);
       (III) ensuring that technical standards are met pursuant to 
     subsection (a)(3); and
       (IV) providing the analysis, dissemination mechanisms, and 
     technical assistance under paragraphs (4), (5), and (6) of 
     subsection (a), and matching data;

       (F) describe the involvement of States in developing the 
     plan by holding formal consultations conducted in cooperation 
     with representatives of the Governors of each State or the 
     State workforce development board described in section 715, 
     where appropriate, pursuant to a process established by the 
     Federal Partnership; and
       (G) provide for technical assistance to the States for the 
     development of statewide comprehensive labor market 
     information systems described in subsection (c), including 
     assistance with the development of easy-to-use software and 
     hardware, or uniform information displays.

     For purposes of applying Office of Management and Budget 
     Circular A-11 to determine persons eligible to participate in 
     deliberations relating to budget issues for the development 
     of the plan, the representatives of the Governors of each 
     State and the State workforce development board described in 
     subparagraph (F) shall be considered to be employees of the 
     Department of Labor.
       (c) State Responsibilities.--
       (1) Designation of state agency.--In order to receive 
     Federal financial assistance under this title, the Governor 
     of a State shall--
       (A) establish an interagency process for the oversight of a 
     statewide comprehensive labor market information system and 
     for the participation of the State in the cooperative 
     Federal-State governance structure for the nationwide 
     integrated labor market information system; and
       (B) designate a single State agency or entity within the 
     State to be responsible for the management of the statewide 
     comprehensive labor market information system.
       (2) Duties.--In order to receive Federal financial 
     assistance under this title, the State agency or entity 
     within the State designated under paragraph (1)(B) shall--
       (A) consult with employers and local workforce development 
     boards described in section 728(b), where appropriate, about 
     the labor market relevance of the data to be collected and 
     displayed through the statewide comprehensive labor market 
     information system;
       (B) develop, maintain, and continuously improve the 
     statewide comprehensive labor market information system, 
     which shall--
       (i) include all of the elements described in paragraphs 
     (1), (2), (3), (4), (5), and (6) of subsection (a); and
       (ii) provide the consumer information described in clauses 
     (v) and (vi) of section 716(a)(2)(B) in a manner that shall 
     be responsive to the needs of business, industry, workers, 
     and jobseekers;
       (C) ensure the performance of contract and grant 
     responsibilities for data collection, analysis, and 
     dissemination, through the statewide comprehensive labor 
     market information system;
       (D) conduct such other data collection, analysis, and 
     dissemination activities to ensure that State and substate 
     area labor market information is comprehensive;
       (E) actively seek the participation of other State and 
     local agencies, with particular attention to State education, 
     economic development, human services, and welfare agencies, 
     in data collection, analysis, and dissemination activities in 
     order to ensure complementarity and compatibility among data;
       (F) participate in the development of the national annual 
     plan described in subsection (b)(2); and
       (G) ensure that the matches required for the job placement 
     accountability system by section 731(d)(2)(A) are made for 
     the State and for other States.
       (3) Rule of construction.--Nothing in this title shall be 
     construed as limiting the ability of a State agency to 
     conduct additional data collection, analysis, and 
     dissemination activities with State funds or with Federal 
     funds from sources other than this title.
       (d) Effective Date.--This section shall take effect on July 
     1, 1998.
                           Amendment No. 2655

       In section 101(a)(3)(C)(i)(II) of the Rehabilitation Act of 
     1973, as amended by section 809(a)(8), strike ``labor market 
     information'' and insert ``labor market and occupational 
     information''.
                                                                    ____


                           Amendment No. 2656

       On page 465, strike lines 4 through 12.
                                                                    ____


                           Amendment No. 2657

       On page 363, beginning with line 12, strike all through 
     page 364, line 13, and insert the following:
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this title for workforce education 
     activities to carry out, through the statewide workforce 
     development system, activities that include--
       (1) ensuring that all students, including students who are 
     members of special populations, have the opportunity to 
     achieve to challenging State academic standards and industry-
     based skill standards;
       (2) promoting the integration of academic and vocational 
     education;
       (3) supporting career majors in broad occupational clusters 
     or industry sectors;
       (4) effectively linking secondary education and 
     postsecondary education, including implementing tech-prep 
     programs;
       (5) providing students with strong experience in, and 
     understanding of, all aspects of the industry such students 
     are preparing to enter;
       (6) providing connecting activities that link each youth 
     participating in workforce education activities under this 
     subsection with an employer in an industry or occupation 
     relating to the career of such youth;
       (7) combining school-based and work-based instruction, 
     including instruction in general workplace competencies;
       (8) providing school-site and workplace mentoring;
       (9) providing a planned program of job training and work 
     experience that is coordinated with school-based learning;
       (10) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, career exploration, exposure to high-wage, 
     high-skill careers, and guidance information, to students and 
     their parents that is, to the extent possible, in a language 
     and form that the students and their parents understand;
       (11) expanding, improving, and modernizing quality 
     vocational education programs;
       (12) improving access to quality vocational education 
     programs for at-risk youth;
       (13) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (14) providing programs for adults and out-of-school youth 
     to complete their secondary education; or
       (15) providing programs of family and work-place literacy.
                                                                    ____

                           Amendment No. 2658

       Beginning on page 328, line 10, strike all through page 
     451, line 11, and insert the following:
     ernor, in cooperation with the State educational agency and a 
     local educational agency, that reflects, to the extent 
     feasible, a local labor market in a State.
       (31) Tech-prep program.--The term ``tech-prep program'' 
     means a program of study that--
       (A) combines at least 2 years of secondary education (as 
     determined under State law) and 2 years of postsecondary 
     education in a nonduplicative sequence;
       (B) integrates academic and vocational instruction and 
     utilizes worksite learning where appropriate;
       (C) provides technical preparation in an area such as 
     engineering technology, applied science, a mechanical, 
     industrial, or practical art or trade, agriculture, a health 
     occupation, business, or applied economics;
       (D) builds student competence in mathematics, science, 
     communications, economics, and workplace skills, through 
     applied academics and integrated instruction in a coherent 
     sequence of courses;
       (E) leads to an associate degree or a certificate in a 
     specific career field; and
       (F) leads to placement in appropriate employment or further 
     education.
       (32) Veteran.--The term ``veteran'' has the meaning given 
     the term in section 101(2) of title 38, United States Code.
       (33) Vocational education.--The term ``vocational 
     education'' means organized educational programs that--
       (A) offer a sequence of courses that provide individuals 
     with the academic knowledge and skills the individuals need 
     to prepare for further education and careers in current or 
     emerging employment sectors; and
       (B) include competency-based applied learning that 
     contributes to the academic knowledge, higher-order reasoning 
     and problem-solving skills, work attitudes, general 
     employability skills, and occupational-specific skills, of an 
     individual.
       (34) Vocational rehabilitation program.--The term 
     ``vocational rehabilitation program'' means a program 
     assisted under title I of the Rehabilitation Act of 1973 (29 
     U.S.C. 720 et seq.).
       (35) Welfare assistance.--The term ``welfare assistance'' 
     means--
       (A) assistance provided under part A of title IV of the 
     Social Security Act; and
       (B) assistance provided under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.).
       (36) Welfare recipient.--The term ``welfare recipient'' 
     means--

[[Page S 13101]]

       (A) an individual who receives assistance under part A of 
     title IV of the Social Security Act; and
       (B) an individual who--
       (i) is not an individual described in subparagraph (A); and
       (ii) receives assistance under the Food Stamp Act of 1977.
       (37) Workforce development activities.--The term 
     ``workforce development activities'' means workforce 
     education activities, workforce employment activities, 
     flexible workforce activities, and economic development 
     activities (within a State that is eligible to carry out such 
     activities).
       (38) Workforce education activities.--The term ``workforce 
     education activities'' means the activities described in 
     section 716(b).
       (39) Workforce employment activities.--The term ``workforce 
     employment activities'' means the activities described in 
     paragraphs (2) through (8) of section 716(a), including 
     activities described in section 716(a)(6) provided through a 
     voucher described in section 716(a)(9).
       (40) Workforce preparation activities for at-risk youth.--
     The term ``workforce preparation activities for at-risk 
     youth'' means the activities described in section 759(b), 
     carried out for at-risk youth.
          Subtitle B--Statewide Workforce Development Systems

          CHAPTER 1--PROVISIONS FOR STATES AND OTHER ENTITIES

     SEC. 711. STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS 
                   ESTABLISHED.

       For program year 1998 and each subsequent program year, the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, shall make 
     allotments under section 712 to States to assist the States 
     in paying for the cost of establishing and carrying out 
     activities through statewide workforce development systems, 
     in accordance with this subtitle.

     SEC. 712. STATE ALLOTMENTS.

       (a) In General.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall allot to each State with a State plan 
     approved under section 714 an amount equal to the total of 
     the amounts made available under subparagraphs (A), (B), (C), 
     and (D) of subsection (b)(2), adjusted in accordance with 
     subsection (c).
       (b) Allotments Based on Populations.--
       (1) Definitions.--As used in this subsection:
       (A) Adult recipient of assistance.--The term ``adult 
     recipient of assistance'' means a recipient of assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act who is not a minor child (as defined in 
     section 402(c)(1) of such Act).
       (B) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--
       (i) is not less than age 18;
       (ii) is not more than age 64; and
       (iii) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.
       (C) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (2) Calculation.--Except as provided in subsection (c), 
     from the amount reserved under section 734(b)(1), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership--
       (A) using funds equal to 60 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals who are not less than 15 and not more than 65 
     (as determined by the Federal Partnership using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the program year for which the allotment is made) in 
     the State bears to the total number of such individuals in 
     all States;
       (B) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the total number 
     of individuals in poverty in the State bears to the total 
     number of individuals in poverty in all States;
       (C) using funds equal to 10 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     number of unemployed individuals (as determined by the 
     Secretary of Labor for the most recent 24-month period for 
     which data are available, prior to the program year for which 
     the allotment is made) in the State bears to the average 
     number of unemployed individuals (as so determined) in all 
     States; and
       (D) using funds equal to 20 percent of such reserved 
     amount, shall make available to each State an amount that 
     bears the same relationship to such funds as the average 
     monthly number of adult recipients of assistance (as 
     determined by the Secretary of Health and Human Services for 
     the most recent 12-month period for which data are available, 
     prior to the program year for which the allotment is made) in 
     the State bears to the average monthly number of adult 
     recipients of assistance (as so determined) in all States.
       (c) Adjustments.--
       (1) Definition.--As used in this subsection, the term 
     ``national average per capita payment'', used with respect to 
     a program year, means the amount obtained by dividing--
       (A) the total amount allotted to all States under this 
     section for the program year; by
       (B) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Federal 
     Partnership using the most recent available data provided by 
     the Bureau of the Census, prior to the program year for which 
     the allotment is made) in all States.
       (2) Minimum allotment.--Except as provided in paragraph 
     (3), no State with a State plan approved under section 714 
     for a program year shall receive an allotment under this 
     section for the program year in an amount that is less than 
     0.5 percent of the amount reserved under section 734(b)(1) 
     for the program year.
       (3) Limitation.--No State that receives an increase in an 
     allotment under this section for a program year as a result 
     of the application of paragraph (2) shall receive an 
     allotment under this section for the program year in an 
     amount that is more than the product obtained by 
     multiplying--
       (A) the total number of individuals who are not less than 
     15 and not more than 65 (as determined by the Federal 
     Partnership using the most recent available data provided by 
     the Bureau of the Census, prior to the program year for which 
     the allotment is made) in the State; and
       (B) the product obtained by multiplying--
       (i) 1.3; and
       (ii) the national average per capita payment for the 
     program year.

     SEC. 713. STATE APPORTIONMENT BY ACTIVITY.

       (a) Activities.--From the sum of the funds made available 
     to a State through an allotment received under section 712 
     and the funds made available under section 901(c)(1)(A) of 
     the Social Security Act (42 U.S.C. 1101(c)(1)(A)) to carry 
     out this title for a program year--
       (1) a portion equal to 25 percent of such sum (which 
     portion shall include the amount allotted to the State from 
     funds made available under section 901(c)(1)(A) of the Social 
     Security Act) shall be made available for workforce 
     employment activities;
       (2) a portion equal to 25 percent of such sum shall be made 
     available for workforce education activities; and
       (3) a portion (referred to in this title as the ``flex 
     account'') equal to 50 percent of such sum shall be made 
     available for flexible workforce activities.
       (b) Recipients.--In making an allotment under section 712 
     to a State, the Secretary of Labor and the Secretary of 
     Education, acting jointly, shall make a payment--
       (1) to the Governor of the State for the portion described 
     in subsection (a)(1), and such part of the flex account as 
     the Governor may be eligible to receive, as determined under 
     the State plan of the State submitted under section 714; and
       (2) to the State educational agency of the State for the 
     portion described in subsection (a)(2), and such part of the 
     flex account as the State educational agency may be eligible 
     to receive, as determined under the State plan of the State 
     submitted under section 714.

     SEC. 714. STATE PLANS.

       (a) In General.--For a State to be eligible to receive an 
     allotment under section 712, the Governor of the State shall 
     submit to the Federal Partnership, and obtain approval of, a 
     single comprehensive State workforce development plan 
     (referred to in this section as a ``State plan''), outlining 
     a 3-year strategy for the statewide system of the State.
       (b) Parts.--
       (1) In general.--The State plan shall contain 3 parts.
       (2) Strategic plan and flexible workforce activities.--The 
     first part of the State plan shall describe a strategic plan 
     for the statewide system, including the flexible workforce 
     activities, and, if appropriate, economic development 
     activities, that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the first part of the 
     State plan, using procedures that are consistent with the 
     procedures described in subsection (d).
       (3) Workforce employment activities.--The second part of 
     the State plan shall describe the workforce employment 
     activities that are designed to meet the State goals and 
     reach the State benchmarks and are to be carried out with the 
     allotment. The Governor shall develop the second part of the 
     State plan.
       (4) Workforce education activities.--The third part of the 
     State plan shall describe the workforce education activities 
     that are designed to meet the State goals and reach the State 
     benchmarks and are to be carried out with the allotment. The 
     State educational agency of the State shall develop the third 
     part of the State plan in consultation, where appropriate, 
     with the State postsecondary education agency and with 
     community colleges.
       (c) Contents of the Plan.--The State plan shall include--
       (1) with respect to the strategic plan for the statewide 
     system--

[[Page S 13102]]

       (A) information describing how the State will identify the 
     current and future workforce development needs of the 
     industry sectors most important to the economic 
     competitiveness of the State;
       (B) information describing how the State will identify the 
     current and future workforce development needs of all 
     segments of the population of the State;
       (C) information identifying the State goals and State 
     benchmarks and how the goals and benchmarks will make the 
     statewide system relevant and responsive to labor market and 
     education needs at the local level;
       (D) information describing how the State will coordinate 
     workforce development activities to meet the State goals and 
     reach the State benchmarks;
       (E) information describing the allocation within the State 
     of the funds made available through the flex account for the 
     State, and how the flexible workforce activities, including 
     school-to-work activities, to be carried out with such funds 
     will be carried out to meet the State goals and reach the 
     State benchmarks;
       (F) information identifying how the State will obtain the 
     active and continuous participation of business, industry, 
     and labor in the development and continuous improvement of 
     the statewide system;
       (G) information identifying how any funds that a State 
     receives under this subtitle will be leveraged with other 
     public and private resources to maximize the effectiveness of 
     such resources for all workforce development activities, and 
     expand the participation of business, industry, labor, and 
     individuals in the statewide system;
       (H) information identifying how the workforce development 
     activities to be carried out with funds received through the 
     allotment will be coordinated with programs carried out by 
     the Veterans' Employment and Training Service with funds 
     received under title 38, United States Code, in order to meet 
     the State goals and reach the State benchmarks related to 
     veterans;
       (I) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this title;
       (J) information describing the process the State will use 
     to independently evaluate and continuously improve the 
     performance of the statewide system, on a yearly basis, 
     including the development of specific performance indicators 
     to measure progress toward meeting the State goals;
       (K) an assurance that the funds made available under this 
     subtitle will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (L) information identifying the steps that the State will 
     take over the 3 years covered by the plan to establish common 
     data collection and reporting requirements for workforce 
     development activities and vocational rehabilitation program 
     activities;
       (M) with respect to economic development activities, 
     information--
       (i) describing the activities to be carried out with the 
     funds made available under this subtitle;
       (ii) describing how the activities will lead directly to 
     increased earnings of nonmanagerial employees in the State; 
     and
       (iii) describing whether the labor organization, if any, 
     representing the nonmanagerial employees supports the 
     activities;
       (N) the description referred to in subsection (d)(1); and
       (O)(i) information demonstrating the support of individuals 
     and entities described in subsection (d)(1) for the plan; or
       (ii) in a case in which the Governor is unable to obtain 
     the support of such individuals and entities as provided in 
     subsection (d)(2), the comments referred to in subsection 
     (d)(2)(B),
       (2) with respect to workforce employment activities, 
     information--
       (A)(i) identifying and designating substate areas, 
     including urban and rural areas, to which funds received 
     through the allotment will be distributed, which areas shall, 
     to the extent feasible, reflect local labor market areas; or
       (ii) stating that the State will be treated as a substate 
     area for purposes of the application of this subtitle, if the 
     State receives an increase in an allotment under section 712 
     for a program year as a result of the application of section 
     712(c)(2); and
       (B) describing the basic features of one-stop delivery of 
     core services described in section 716(a)(2) in the State, 
     including information regarding--
       (i) the strategy of the State for developing fully 
     operational one-stop delivery of core services described in 
     section 716(a)(2);
       (ii) the time frame for achieving the strategy;
       (iii) the estimated cost for achieving the strategy;
       (iv) the steps that the State will take over the 3 years 
     covered by the plan to provide individuals with access to 
     one-stop delivery of core services described in section 
     716(a)(2);
       (v) the steps that the State will take over the 3 years 
     covered by the plan to provide information through the one-
     stop delivery to individuals on the quality of workforce 
     employment activities, workforce education activities, and 
     vocational rehabilitation program activities, provided 
     through the statewide system;
       (vi) the steps that the State will take over the 3 years 
     covered by the plan to link services provided through the 
     one-stop delivery with services provided through State 
     welfare agencies; and
       (vii) in a case in which the State chooses to use vouchers 
     to deliver workforce employment activities, the steps that 
     the State will take over the 3 years covered by the plan to 
     comply with the requirements in section 716(a)(9) and the 
     information required in such section;
       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 773(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     716(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 731(d);
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; and
       (H)(i) describing the steps that the State will take to 
     segregate the amount allotted to the State from funds made 
     available under section 901(c)(1)(A) of the Social Security 
     Act (42 U.S.C. 1101(c)(1)(A)) from the remainder of the 
     portion described in section 713(a)(1); and
       (ii) describing how the State will use the amount allotted 
     to the State from funds made available under such section 
     901(c)(1)(A) to carry out the required activities described 
     in clauses (ii) through (v) of section 716(a)(2)(B) and 
     section 773;
       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;
       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;


[[Page S 13103]]

     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan; and
       (3) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 731(c).
       (f) No Entitlement to a Service.--Nothing in this title 
     shall be construed to provide any individual with an 
     entitlement to a service provided under this title.

     SEC. 715. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 712 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     714(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 714, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 731(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 773(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 716(a)(2), providers of other workforce 
     employment activities, and providers of workforce education 
     activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this title.
     SEC. 716. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle to carry out workforce employment activities through 
     a statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), and (4); and
       (B) may be used to carry out the activities described in 
     paragraphs (5), (6), (7), and (8), including providing 
     activities described in paragraph (6) through vouchers 
     described in paragraph (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 773(c).
       (4) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 731(d).
       (5) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, welfare 
     assistance, veterans' employment services, or other public 
     assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.
       (6) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) on-the-job training;
       (B) occupational skills training;
       (C) entrepreneurial training;
       (D) training to develop work habits to help individuals 
     obtain and retain employment;
       (E) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual after 
     successful completion of the training;
       (F) rapid response assistance for dislocated workers;
       (G) skill upgrading and retraining for persons not in the 
     workforce;
       (H) preemployment and work maturity skills training for 
     youth;
       (I) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (J) programs for adults that combine workplace training 
     with related instruction;
       (K) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (L) case management services;
       (M) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system;
       (N) followup services for participants who are placed in 
     unsubsidized employment; and
       (O) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (7) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (8) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 731(c), with an emphasis 
     on benchmarks established under section 731(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this title.
       (9) Vouchers.--
       (A) In general.--A State may deliver some or all of the 
     workforce employment activities described in paragraph (6) 
     that are provided under this subtitle through a system of 
     vouchers administered through the one-stop delivery of core 
     services described in paragraph (2) in the State.
       (B) Eligibility requirements.--
       (i) In general.--A State that chooses to deliver the 
     activities described in subparagraph (A) through vouchers 
     shall indicate in the State plan described in section 714 the 


[[Page S 13104]]
     criteria that will be developed in cooperation with the State 
     educational agency and used to determine--

       (I) which workforce employment activities described in 
     paragraph (6) will be delivered through the voucher system;
       (II) eligibility requirements for participants to receive 
     the vouchers and the amount of funds that participants will 
     be able to access through the voucher system; and
       (III) which employment, training, and education providers 
     are eligible to receive payment through the vouchers.

       (ii) Considerations.--In establishing State criteria for 
     service providers eligible to receive payment through the 
     vouchers under clause (i)(III), the State shall take into 
     account industry-recognized skills standards promoted by the 
     National Skills Standards Board.
       (C) Accountability requirements.--A State that chooses to 
     deliver the activities described in paragraph (6) through 
     vouchers shall indicate in the State plan--
       (i) information concerning how the State will utilize the 
     statewide comprehensive labor market information system 
     described in section 773(c) and the job placement 
     accountability system established under section 731(d) to 
     provide timely and accurate information to participants about 
     the performance of eligible employment, training, and 
     education providers;
       (ii) other information about the performance of eligible 
     providers of services that the State believes is necessary 
     for participants receiving the vouchers to make informed 
     career choices; and
       (iii) the timeframe in which the information developed 
     under clauses (i) and (ii) will be widely available through 
     the one-stop delivery of core services described in paragraph 
     (2) in the State.
       (10) Funds from unemployment trust fund.--Funds made 
     available to a Governor under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) for a program 
     year shall only be available for workforce employment 
     activities authorized under such section 901(c)(1)(A), which 
     are--
       (A) the administration of State unemployment compensation 
     laws as provided in title III of the Social Security Act 
     (including administration pursuant to agreements under any 
     Federal unemployment compensation law);
       (B) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B); and
       (C) carrying out the activities described in sections 4103, 
     4103A, 4104, and 4104A of title 38, United States Code 
     (relating to veterans' employment services).
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this subtitle for workforce 
     education activities to carry out, through the statewide 
     system, activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, planning, and guidance 
     information to students and their parents that is, to the 
     extent possible, in a language and form that the students and 
     their parents understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this subtitle for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     determines that the fiscal effort per student or the 
     aggregate expenditures of such State for workforce education 
     for the program year preceding the program year for which the 
     determination is made, equaled or exceeded such effort or 
     expenditures for workforce education for the second program 
     year preceding the fiscal year for which the determination is 
     made.
       (B) Waiver.--The Federal Partnership may waive the 
     requirements of this section (with respect to not more than 5 
     percent of expenditures by any State educational agency) for 
     1 program year only, on making a determination that such 
     waiver would be equitable due to exceptional or 
     uncontrollable circumstances affecting the ability of the 
     applicant to meet such requirements, such as a natural 
     disaster or an unforeseen and precipitous decline in 
     financial resources. No level of funding permitted under such 
     a waiver may be used as the basis for computing the fiscal 
     effort or aggregate expenditures required under this section 
     for years subsequent to the year covered by such waiver. The 
     fiscal effort or aggregate expenditures for the subsequent 
     years shall be computed on the basis of the level of funding 
     that would, but for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this subtitle through the flex account to carry out school-
     to-work activities through the statewide system, except that 
     any State that received a grant under subtitle B of title II 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6141 et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this subtitle through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 728(c), the 
     State may use a portion of the funds made available to the 
     State under this subtitle through the flex account to 
     supplement other funds provided by the State or private 
     sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this subtitle shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this subtitle 
     shall be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this subtitle shall be used for 
     customized or skill training, on-the-job training, or company 
     specific assessments of job applicants or workers, for any 
     business or part of a business, that has relocated, until 120 
     days after the date on which such business commences 
     operations at the new location, if the relocation of such 
     business or part of a business, results in a loss of 
     employment for any worker of such business at the original 
     location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of subsection (a)(6) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this title, a State may use funds made available 
     under section 713(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--

[[Page S 13105]]

       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of subsection (a)(6); and
       (ii) are otherwise unable to obtain such services.

     SEC. 717. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     workforce development activities for Indian and Native 
     Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the same meanings given such terms in 
     subsections (d), (e) and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (4) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the same meanings given such terms in 
     paragraphs (1) and (3), respectively, of section 9212 of the 
     Native Hawaiian Education Act (20 U.S.C. 7912).
       (5) Tribally controlled community college.--The term 
     ``tribally controlled community college'' has the same 
     meaning given such term in section 2(a)(4) of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801(a)(4)).
       (6) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered, by the governing body of an Indian tribe or 
     Indian tribes;
       (B) offers a technical degree or certificate granting 
     program;
       (C) is governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (D) demonstrates adherence to stated goals, a philosophy, 
     or a plan of operation, that fosters individual Indian 
     economic and self-sufficiency opportunity, including programs 
     that are appropriate to stated tribal goals of developing 
     individual entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (E) has been in operation for at least 3 years;
       (F) holds accreditation with or is a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (G) enrolls the full-time equivalent of not fewer than 100 
     students, of whom a majority are Indians.
       (c) Program Authorized.--
       (1) Assistance authorized.--From amounts made available 
     under section 734(b)(2), the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make grants to, or enter into 
     contracts or cooperative agreements with, Indian tribes and 
     tribal organizations, Alaska Native entities, tribally 
     controlled community colleges, tribally controlled 
     postsecondary vocational institutions, Indian-controlled 
     organizations serving Indians or Alaska Natives, and Native 
     Hawaiian organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Formula.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to, or enter into contracts 
     and cooperative agreements with, entities as described in 
     paragraph (1) to carry out the activities described in 
     paragraphs (2) and (3) of subsection (d) on the basis of a 
     formula developed by the Federal Partnership in consultation 
     with entities described in paragraph (1).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under this section 
     shall be used to carry out the activities described in 
     paragraphs (2) and (3) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians and Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians and Native Hawaiians;
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations in Oklahoma, Alaska, or 
     Hawaii; and
       (iii) supplemental services to recipients of public 
     assistance on or near Indian reservations or former 
     reservation areas in Oklahoma or in Alaska.
       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education, adult education, and literacy 
     services.--Funds made available under this section shall be 
     used for--
       (A) workforce education activities conducted by entities 
     described in subsection (c)(1); and
       (B) the support of tribally controlled postsecondary 
     vocational institutions in order to ensure continuing and 
     expanded educational opportunities for Indian students.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section 
     an entity described in subsection (c)(1) shall submit to the 
     Federal Partnership a plan that describes a 3-year strategy 
     for meeting the needs of Indian and Native Hawaiian 
     individuals, as appropriate, in the area served by such 
     entity. Such plan shall--
       (1) be consistent with the purposes of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or retain unsubsidized employment;
       (4) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and
       (5) describe the goals and benchmarks to be used to assess 
     the performance of entities in carrying out the activities 
     assisted under this section.
       (f) Further Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c)(1) to participate in any program offered by a 
     State or local entity under this title; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c)(1) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Partnership Provisions.--
       (1) Office established.--There shall be established within 
     the Federal Partnership an office to administer the 
     activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Federal Partnership, through the 
     office established under paragraph (1), shall develop 
     regulations and policies for activities assisted under this 
     section in consultation with tribal organizations and Native 
     Hawaiian organizations. Such regulations and policies shall 
     take into account the special circumstances under which such 
     activities operate.
       (B) Administrative support.--The Federal Partnership shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Federal Partnership determines to 
     be necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Federal Partnership, through 
     the office established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c)(1) that receive assistance under this section 
     to enable such entities to improve the workforce development 
     activities provided by such entities.

     SEC. 718. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 734(b)(3), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to outlying areas to carry out 
     workforce development activities.
       (b) Application.--The Federal Partnership shall issue 
     regulations specifying the provisions of this title that 
     shall apply to outlying areas that receive funds under this 
     subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 721. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (1) and (3) of 
     section 713(a) for workforce employment activities shall be 
     made available to the Governor of such State for use in 
     accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 25 percent shall be reserved by the Governor to carry 
     out workforce employment 

[[Page S 13106]]
     activities through the statewide system, of which not more than 20 
     percent of such 25 percent may be used for administrative 
     expenses; and
       (B) 75 percent shall be distributed by the Governor to 
     local entities to carry out workforce employment activities 
     through the statewide system, based on--
       (i) such factors as the relative distribution among 
     substate areas of individuals who are not less than 15 and 
     not more than 65, individuals in poverty, unemployed 
     individuals, and adult recipients of assistance, as 
     determined using the definitions specified and the 
     determinations described in section 712(b); and
       (ii) such additional factors as the Governor (in 
     consultation with local partnerships described in section 
     728(a) or, where established, local workforce development 
     boards described in section 728(b)), determines to be 
     necessary.
       (b) Workforce Education Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (2) and (3) of 
     section 713(a) for workforce education activities shall be 
     made available to the State educational agency serving such 
     State for use in accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 20 percent shall be reserved by the State educational 
     agency to carry out statewide workforce education activities 
     through the statewide system, of which not more than 5 
     percent of such 20 percent may be used for administrative 
     expenses; and
       (B) 80 percent shall be distributed by the State 
     educational agency to entities eligible for financial 
     assistance under section 722, 723, or 724, to carry out 
     workforce education activities through the statewide system.
       (3) State activities.--Activities to be carried out under 
     paragraph (2)(A) may include professional development, 
     technical assistance, and program assessment activities.
       (4) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a program 
     year, such agency shall determine the percentage of such 
     amount that will be distributed in accordance with sections 
     722, 723, and 724 for such year for workforce education 
     activities in such State in each of the following areas:
       (A) Secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (B) Adult education.
       (c) Special Rule.--Nothing in this subtitle shall be 
     construed to prohibit any individual, entity, or agency in a 
     State (other than the State educational agency) that is 
     administering workforce education activities or setting 
     education policies consistent with authority under State law 
     for workforce education activities, on the day preceding the 
     date of enactment of this Act from continuing to administer 
     or set education policies consistent with authority under 
     State law for such activities under this subtitle.

     SEC. 722. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--Except as otherwise provided in this 
     section and section 725, each State educational agency shall 
     distribute the portion of the funds made available for any 
     program year (from funds made available for the corresponding 
     fiscal year, as determined under section 734(c)) by such 
     agency for secondary school vocational education under 
     section 721(b)(3)(A) to local educational agencies within the 
     State as follows:
       (1) Seventy percent.--From 70 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 70 percent as the amount 
     such local educational agency was allocated under section 
     1124 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6333) for the preceding fiscal year bears to the 
     total amount received under such section by all local 
     educational agencies in the State for such year.
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students with disabilities who have individualized 
     education programs under section 614(a)(5) of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1414(a)(5)) served 
     by such local educational agency for the preceding fiscal 
     year bears to the total number of such students served by all 
     local educational agencies in the State for such year.
       (3) Ten percent.--From 10 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 10 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Minimum Allocation.--
       (1) In general.--Except as provided in paragraph (2), no 
     local educational agency shall receive an allocation under 
     subsection (a) unless the amount allocated to such agency 
     under subsection (a) is not less than $15,000. A local 
     educational agency may enter into a consortium with other 
     local educational agencies for purposes of meeting the 
     minimum allocation requirement of this paragraph.
       (2) Waiver.--The State educational agency may waive the 
     application of paragraph (1) in any case in which the local 
     educational agency--
       (A) is located in a rural, sparsely-populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.
       (3) Redistribution.--Any amounts that are not allocated by 
     reason of paragraph (1) or (2) shall be redistributed to 
     local educational agencies that meet the requirements of 
     paragraph (1) or (2) in accordance with the provisions of 
     this section.
       (c) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (a), no State educational agency receiving assistance under 
     this subtitle shall allocate funds to a local educational 
     agency that serves only elementary schools, but shall 
     distribute such funds to the local educational agency or 
     regional educational agency that provides secondary school 
     services to secondary school students in the same attendance 
     area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each State educational agency shall 
     distribute the portion of funds made available for any 
     program year by such agency for secondary school vocational 
     education under section 721(b)(3)(A) to the appropriate area 
     vocational education school or educational service agency in 
     any case in which--
       (A) the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (i) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or
       (ii) have entered into or will enter into a cooperative 
     arrangement for such purpose; and
       (B)(i) the area vocational education school or educational 
     service agency serves an approximately equal or greater 
     proportion of students who are individuals with disabilities 
     or are low-income than the proportion of such students 
     attending the secondary schools under the jurisdiction of all 
     of the local educational agencies sending students to the 
     area vocational education school or the educational service 
     agency; or
       (ii) the area vocational education school, educational 
     service agency, or local educational agency demonstrates that 
     the vocational education school or educational service agency 
     is unable to meet the criterion described in clause (i) due 
     to the lack of interest by students described in clause (i) 
     in attending vocational education programs in that area 
     vocational education school or educational service agency.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that will otherwise be distributed to the 
     local educational agency under this section shall be 
     allocated to the area vocational education school, the 
     educational service agency, and the local educational agency, 
     based on each school's or agency's relative share of students 
     described in paragraph (1)(B)(i) who are attending vocational 
     education programs (based, if practicable, on the average 
     enrollment for the prior 3 years); or
       (B) such amount may be allocated on the basis of an 
     agreement between the local educational agency and the area 
     vocational education school or educational service agency.
       (3) State determination.--
       (A) In general.--For the purposes of this subsection, the 
     State educational agency may determine the number of students 
     who are low-income on the basis of--
       (i) eligibility for--

       (I) free or reduced-price meals under the National School 
     Lunch Act (7 U.S.C. 1751 et seq.);
       (II) assistance under a State program funded under part A 
     of title IV of the Social Security Act;
       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the State educational agency 
     demonstrates to the satisfaction of the Federal Partnership 
     that such index is a more representative means of determining 
     such number.
       (B) Data.--If a State educational agency elects to use more 
     than 1 factor described in subparagraph (A) for purposes of 
     making the determination described in such subparagraph, the 
     State educational agency shall ensure that the data used is 
     not duplicative.
       (4) Appeals procedure.--The State educational agency shall 
     establish an appeals procedure for resolution of any dispute 
     arising between a local educational agency and an area 
     vocational education school or an educational service agency 
     with respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium.
       (5) Special rule.--Notwithstanding the provisions of 
     paragraphs (1), (2), (3), and (4), 

[[Page S 13107]]
     any local educational agency receiving an allocation that is not 
     sufficient to conduct a secondary school vocational education 
     program of sufficient size, scope, and quality to be 
     effective may--
       (A) form a consortium or enter into a cooperative agreement 
     with an area vocational education school or educational 
     service agency offering secondary school vocational education 
     programs of sufficient size, scope, and quality to be 
     effective and that are accessible to students who are 
     individuals with disabilities or are low-income, and are 
     served by such local educational agency; and
       (B) transfer such allocation to the area vocational 
     education school or educational service agency.
       (e) Special Rule.--Each State educational agency 
     distributing funds under this section shall treat a secondary 
     school funded by the Bureau of Indian Affairs within the 
     State as if such school were a local educational agency 
     within the State for the purpose of receiving a distribution 
     under this section.

     SEC. 723. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--
       (1) In general.--Except as provided in subsection (b) and 
     section 725, each State educational agency, using the portion 
     of the funds made available for any program year by such 
     agency for postsecondary and adult vocational education under 
     section 721(b)(3)(A)--
       (A) shall reserve funds to carry out subsection (d); and
       (B) shall distribute the remainder to eligible institutions 
     or consortia of the institutions within the State.
       (2) Formula.--Each such eligible institution or consortium 
     shall receive an amount for the program year (from funds made 
     available for the corresponding fiscal year, as determined 
     under section 734(c)) from such remainder bears the same 
     relationship to such remainder as the number of individuals 
     who are Pell Grant recipients or recipients of assistance 
     from the Bureau of Indian Affairs and are enrolled in 
     programs offered by such institution or consortium for the 
     preceding fiscal year bears to the number of all such 
     individuals who are enrolled in any such program within the 
     State for such preceding year.
       (3) Consortium requirements.--In order for a consortium of 
     eligible institutions described in paragraph (1) to receive 
     assistance pursuant to such paragraph such consortium shall 
     operate joint projects that--
       (A) provide services to all postsecondary institutions 
     participating in the consortium; and
       (B) are of sufficient size, scope, and quality to be 
     effective.
       (b) Waiver for More Equitable Distribution.--The Federal 
     Partnership may waive the application of subsection (a) in 
     the case of any State educational agency that submits to the 
     Federal Partnership an application for such a waiver that--
       (1) demonstrates that the formula described in subsection 
     (a) does not result in a distribution of funds to the 
     institutions or consortia within the State that have the 
     highest numbers of low-income individuals and that an 
     alternative formula will result in such a distribution; and
       (2) includes a proposal for an alternative formula that may 
     include criteria relating to the number of individuals 
     attending the institutions or consortia within the State 
     who--
       (A) receive need-based postsecondary financial aid provided 
     from public funds;
       (B) are members of families receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act;
       (C) are enrolled in postsecondary educational institutions 
     that--
       (i) are funded by the State;
       (ii) do not charge tuition; and
       (iii) serve only low-income students;
       (D) are enrolled in programs serving low-income adults; or
       (E) are Pell Grant recipients.
       (c) Minimum Amount.--
       (1) In general.--No distribution of funds provided to any 
     institution or consortium for a program year under this 
     section shall be for an amount that is less than $50,000.
       (2) Redistribution.--Any amounts that are not distributed 
     by reason of paragraph (1) shall be redistributed to eligible 
     institutions or consortia in accordance with the provisions 
     of this section.
       (d) Special Rule for Criminal Offenders.--Each State 
     educational agency shall distribute the funds reserved under 
     subsection (a)(1)(A) to 1 or more State corrections agencies 
     to enable the State corrections agencies to administer 
     vocational education programs for juvenile and adult criminal 
     offenders in correctional institutions in the State, 
     including correctional institutions operated by local 
     authorities.
       (e) Definition.--For the purposes of this section--
       (1) the term ``eligible institution'' means a postsecondary 
     educational institution, a local educational agency serving 
     adults, or an area vocational education school serving adults 
     that offers or will offer a program that seeks to receive 
     financial assistance under this section;
       (2) the term ``low-income'', used with respect to a person, 
     means a person who is determined under guidelines developed 
     by the Federal Partnership to be low-income, using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the determination; and
       (3) the term ``Pell Grant recipient'' means a recipient of 
     financial aid under subpart 1 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

     SEC. 724. DISTRIBUTION FOR ADULT EDUCATION.

       (a) In General.--Except as provided in subsection (b)(3), 
     from the amount made available by a State educational agency 
     for adult education under section 721(b)(3)(B) for a program 
     year, such agency shall award grants, on a competitive basis, 
     to local educational agencies, correctional education 
     agencies, community-based organizations of demonstrated 
     effectiveness, volunteer literacy organizations, libraries, 
     public or private nonprofit agencies, postsecondary 
     educational institutions, public housing authorities, and 
     other nonprofit institutions that have the ability to provide 
     literacy services to adults and families, or consortia of 
     agencies, organizations, or institutions described in this 
     subsection, to enable such agencies, organizations, 
     institutions, and consortia to establish or expand adult 
     education programs.
       (b) Grant Requirements.--
       (1) Access.--Each State educational agency making funds 
     available for any program year for adult education under 
     section 721(b)(3)(B) shall ensure that the entities described 
     in subsection (a) will be provided direct and equitable 
     access to all Federal funds provided under this section.
       (2) Considerations.--In awarding grants under this section, 
     the State educational agency shall consider--
       (A) the past effectiveness of applicants in providing 
     services (especially with respect to recruitment and 
     retention of educationally disadvantaged adults and the 
     learning gains demonstrated by such adults);
       (B) the degree to which an applicant will coordinate and 
     utilize other literacy and social services available in the 
     community; and
       (C) the commitment of the applicant to serve individuals in 
     the community who are most in need of literacy services.
       (3) Consortia.--A State educational agency may award a 
     grant under subsection (a) to a consortium that includes an 
     entity described in subsection (a) and a for-profit agency, 
     organization, or institution, if such agency, organization, 
     or institution--
       (A) can make a significant contribution to carrying out the 
     purposes of this title; and
       (B) enters into a contract with the entity described in 
     subsection (a) for the purpose of establishing or expanding 
     adult education programs.
       (c) Local Administrative Costs Limits.--
       (1) In general.--Except as provided in paragraph (2), of 
     the funds provided under this section by a State educational 
     agency to an agency, organization, institution, or consortium 
     described in subsection (a), at least 95 percent shall be 
     expended for provision of adult education instructional 
     activities. The remainder shall be used for planning, 
     administration, personnel development, and interagency 
     coordination.
       (2) Special rule.--In cases where the cost limits described 
     in paragraph (1) will be too restrictive to allow for 
     adequate planning, administration, personnel development, and 
     interagency coordination supported under this section, the 
     State educational agency shall negotiate with the agency, 
     organization, institution, or consortium described in 
     subsection (a) in order to determine an adequate level of 
     funds to be used for noninstructional purposes.

     SEC. 725. SPECIAL RULE FOR MINIMAL ALLOCATION.

       (a) General Authority.--For any program year for which a 
     minimal amount is made available by a State educational 
     agency for distribution under section 722 or 723 such agency 
     may, notwithstanding the provisions of section 722 or 723, 
     respectively, in order to make a more equitable distribution 
     of funds for programs serving the highest numbers of low-
     income individuals (as defined in section 723(e)), distribute 
     such minimal amount--
       (1) on a competitive basis; or
       (2) through any alternative method determined by the State 
     educational agency.
       (b) Minimal Amount.--For purposes of this section, the term 
     ``minimal amount'' means not more than 15 percent of the 
     total amount made available by the State educational agency 
     under section 721(b)(3)(A) for section 722 or 723, 
     respectively, for such program year.

     SEC. 726. REDISTRIBUTION.

       (a) In General.--In any program year that an entity 
     receiving financial assistance under section 722 or 723 does 
     not expend all of the amounts distributed to such entity for 
     such year under section 722 or 723, respectively, such entity 
     shall return any unexpended amounts to the State educational 
     agency for distribution under section 722 or 723, 
     respectively.
       (b) Redistribution of Amounts Returned Late in a Program 
     Year.--In any program year in which amounts are returned to 
     the State educational agency under subsection (a) for 
     programs described in section 722 or 723 and the State 
     educational agency is unable to redistribute such amounts 
     according to section 722 or 723, respectively, in time for 
     such amounts to be expended in such program year, the State 
     educational agency shall retain such amounts for distribution 
     in combination with amounts provided under such section for 
     the following program year.
     SEC. 727. LOCAL APPLICATION FOR WORKFORCE EDUCATION 
                   ACTIVITIES.

       (a) In General.--

[[Page S 13108]]

       (1) In general.--Each eligible entity desiring financial 
     assistance under this subtitle for workforce education 
     activities shall submit an application to the State 
     educational agency at such time, in such manner and 
     accompanied by such information as such agency (in 
     consultation with such other educational entities as the 
     State educational agency determines to be appropriate) may 
     require. Such application shall cover the same period of time 
     as the period of time applicable to the State workforce 
     development plan.
       (2) Definition.--For the purpose of this section the term 
     ``eligible entity'' means an entity eligible for financial 
     assistance under section 722, 723, or 724 from a State 
     educational agency.
       (b) Contents.--Each application described in subsection (a) 
     shall, at a minimum--
       (1) describe how the workforce education activities 
     required under section 716(b), and other workforce education 
     activities, will be carried out with funds received under 
     this subtitle;
       (2) describe how the activities to be carried out relate to 
     meeting the State goals, and reaching the State benchmarks, 
     concerning workforce education activities;
       (3) describe how the activities to be carried out are an 
     integral part of the comprehensive efforts of the eligible 
     entity to improve education for all students and adults;
       (4) describe the process that will be used to independently 
     evaluate and continuously improve the performance of the 
     eligible entity; and
       (5) describe how the eligible entity will coordinate the 
     activities of the entity with the activities of the local 
     workforce development board, if any, in the substate area.

     SEC. 728. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE 
                   DEVELOPMENT BOARDS.

       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 714 to the Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local partnerships (or, where 
     established, local workforce development boards described in 
     subsection (b)).
       (2) Local partnerships.--
       (A) In general.--A local partnership referred to in 
     paragraph (1) shall be established by the local chief elected 
     official, in accordance with subparagraphs (B) and (C), and 
     shall consist of individuals representing business, industry, 
     and labor, local secondary schools, local postsecondary 
     education institutions, local adult education providers, 
     local elected officials, rehabilitation agencies and 
     organizations, community-based organizations, and veterans, 
     within the appropriate substate area.
       (B) Multiple jurisdictions.--In any case in which there are 
     2 or more units of general local government in the substate 
     area involved, the chief elected official of each such unit 
     shall appoint members of the local partnership in accordance 
     with an agreement entered into by such chief elected 
     officials. In the absence of such an agreement, such 
     appointments shall be made by the Governor of the State 
     involved from the individuals nominated or recommended by the 
     chief elected officials.
       (C) Selection of business and industry representatives.--
     Individuals representing business and industry in the local 
     partnership shall be appointed by the chief elected official 
     from nominations submitted by business organizations in the 
     substate area involved. Such individuals shall reasonably 
     represent the industrial and demographic composition of the 
     business community. Where possible, at least 50 percent of 
     such business and industry representatives shall be 
     representatives of small business.
       (3) Business and industry involvement.--The business and 
     industry representatives shall have a lead role in the 
     design, management, and evaluation of the activities to be 
     carried out in the substate area under the local agreement.
       (4) Contents.--
       (A) State goals and state benchmarks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this subtitle will be 
     spent to meet the State goals and reach the State benchmarks 
     in a manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local partnership (or, where established, the 
     local workforce development board);

     collaborated in reaching the agreement.
       (5) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local partnership (or, where established, the local 
     workforce development board), the Governor shall notify the 
     partnership or board, as appropriate, and provide the 
     partnership or board, as appropriate, with the opportunity to 
     comment, not later than 30 days after the date of the 
     notification, on the manner in which funds allocated to such 
     substate area will be spent to meet the State goals and reach 
     the State benchmarks.
       (6) Exception.--A State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--
       (1) In general.--Each State may facilitate the 
     establishment of local workforce development boards in each 
     substate area to set policy and provide oversight over the 
     workforce development activities in the substate area.
       (2) Membership.--
       (A) State criteria.--The Governor shall establish criteria 
     for use by local chief elected officials in each substate 
     area in the selection of members of the local workforce 
     development boards, in accordance with the requirements of 
     subparagraph (B).
       (B) Representation requirement.--Such criteria shall 
     require, at a minimum, that a local workforce development 
     board consist of--
       (i) representatives of business and industry in the 
     substate area, who shall constitute a majority of the board;
       (ii) representatives of labor, workers, and community-based 
     organizations, who shall constitute not less than 25 percent 
     of the members of the board;
       (iii) representatives of local secondary schools, 
     postsecondary education institutions, and adult education 
     providers;
       (iv) representatives of veterans; and
       (v) 1 or more individuals with disabilities, or their 
     representatives.
       (C) Chair.--Each local workforce development board shall 
     select a chairperson from among the members of the board who 
     are representatives of business and industry.
       (3) Conflict of interest.--No member of a local workforce 
     development board shall vote on a matter relating to the 
     provision of services by the member (or any organization that 
     the member directly represents) or vote on a matter that 
     would provide direct financial benefit to such member or the 
     immediate family of such member or engage in any other 
     activity determined by the Governor to constitute a conflict 
     of interest.
       (4) Functions.--The functions of the local workforce 
     development board shall include--
       (A) submitting to the Governor a single comprehensive 3-
     year strategic plan for workforce development activities in 
     the substate area that includes information--
       (i) identifying the workforce development needs of local 
     industries, students, jobseekers, and workers;
       (ii) identifying the workforce development activities to be 
     carried out in the substate area with funds received through 
     the allotment made to the State under section 712, to meet 
     the State goals and reach the State benchmarks; and
       (iii) identifying how the local workforce development board 
     will obtain the active and continuous participation of 
     business, industry, and labor in the development and 
     continuous improvement of the workforce development 
     activities carried out in the substate area;
       (B) entering into local agreements with the Governor as 
     described in subsection (a);
       (C) overseeing the operations of the one-stop delivery of 
     core services described in section 716(a)(2) in the substate 
     area, including the responsibility to--
       (i) designate local entities to operate the one-stop 
     delivery in the substate area, consistent with the criteria 
     referred to in section 716(a)(2); and
       (ii) develop and approve the budgets and annual operating 
     plans of the providers of the one-stop delivery; and
       (D) submitting annual reports to the Governor on the 
     progress being made in the substate area toward meeting the 
     State goals and reaching the State benchmarks.
       (5) Consultation.--A local workforce development board that 
     serves a substate area shall conduct the functions described 
     in paragraph (4) in consultation with the chief elected 
     officials in the substate area.
       (c) Economic Development Activities.--A State shall be 
     eligible to use the funds made available through the flex 
     account for flexible workforce activities to carry out 
     economic development activities if--
       (1) the boards described in section 715 and subsection (b) 
     are established in the State; or
       (2) in the case of a State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle, the board described in section 715 is established 
     in the State.

     SEC. 729. CONSTRUCTION.

       Nothing in this title shall be construed--
       (1) to prohibit a local educational agency (or a consortium 
     thereof) that receives assistance under section 722, from 
     working with an eligible entity (or consortium thereof) that 
     receives assistance under section 723, to carry out secondary 
     school vocational education activities in accordance with 
     this title; or
       (2) to prohibit an eligible entity (or consortium thereof) 
     that receives assistance under section 723, from working with 
     a local educational agency (or consortium thereof) that 
     receives assistance under section 722, to carry out 
     postsecondary and adult vocational education activities in 
     accordance with this title.

                       CHAPTER 3--ADMINISTRATION

     SEC. 731. ACCOUNTABILITY.

       (a) Report.--

[[Page S 13109]]

       (1) In general.--Each State that receives an allotment 
     under section 712 shall annually prepare and submit to the 
     Federal Partnership, a report that states how the State is 
     performing on State benchmarks specified in this section, 
     which relate to workforce development activities carried out 
     through the statewide system of the State. In preparing the 
     report, the State may include information on such additional 
     benchmarks as the State may establish to meet the State 
     goals.
       (2) Consolidated report.--In lieu of submitting separate 
     reports under paragraph (1) and section 409(a) of the Social 
     Security Act, the State may prepare a consolidated report. 
     Any consolidated report prepared under this paragraph shall 
     contain the information described in paragraph (1) and 
     subsections (a) through (h) of section 409 of the Social 
     Security Act. The State shall submit any consolidated report 
     prepared under this paragraph to the Federal Partnership, the 
     Secretary of Agriculture, and the Secretary of Health and 
     Human Services, on the dates specified in section 409(a) of 
     the Social Security Act.
       (b) Goals.--
       (1) Meaningful employment.--Each statewide system supported 
     by an allotment under section 712 shall be designed to meet 
     the goal of assisting participants in obtaining meaningful 
     unsubsidized employment opportunities in the State.
       (2) Education.--Each statewide system supported by an 
     allotment under section 712 shall be designed to meet the 
     goal of enhancing and developing more fully the academic, 
     occupational, and literacy skills of all segments of the 
     population of the State.
       (c) Benchmarks.--
       (1) Meaningful employment.--To be eligible to receive an 
     allotment under section 712, a State shall develop, in 
     accordance with paragraph (5), and identify in the State plan 
     of the State, proposed quantifiable benchmarks to measure the 
     statewide progress of the State toward meeting the goal 
     described in subsection (b)(1), which shall include, at a 
     minimum, measures of--
       (A) placement in unsubsidized employment of participants;
       (B) retention of the participants in such employment (12 
     months after completion of the participation); and
       (C) increased earnings for the participants.
       (2) Education.--To be eligible to receive an allotment 
     under section 712, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure the statewide 
     progress of the State toward meeting the goal described in 
     subsection (b)(2), which shall include, at a minimum, 
     measures of--
       (A) student mastery of academic knowledge and work 
     readiness skills;
       (B) student mastery of occupational and industry-recognized 
     skills according to skill proficiencies for students in 
     career preparation programs;
       (C) placement in, retention in, and completion of secondary 
     education (as determined under State law) and postsecondary 
     education, and placement and retention in employment and in 
     military service; and
       (D) mastery of the literacy, knowledge, and skills adults 
     need to be productive and responsible citizens and to become 
     more actively involved in the education of their children.
       (3) Populations.--To be eligible to receive an allotment 
     under section 712, a State shall develop, in accordance with 
     paragraph (5), and identify in the State plan of the State, 
     proposed quantifiable benchmarks to measure progress toward 
     meeting the goals described in subsection (b) for populations 
     including, at a minimum--
       (A) welfare recipients (including a benchmark for welfare 
     recipients described in section 3(36)(B));
       (B) individuals with disabilities;
       (C) older workers;
       (D) at-risk youth;
       (E) dislocated workers; and
       (F) veterans.
       (4) Special rule.--If a State has developed for all 
     students in the State performance indicators, attainment 
     levels, or assessments for skills according to challenging 
     academic, occupational, or industry-recognized skill 
     proficiencies, the State shall use such performance 
     indicators, attainment levels, or assessments in measuring 
     the progress of all students served under this title in 
     attaining the skills.
       (5) Negotiations.--
       (A) Initial determination.--On receipt of a State plan 
     submitted under section 714, the Federal Partnership shall, 
     not later than 30 days after the date of the receipt, 
     determine--
       (i) how the proposed State benchmarks identified by the 
     State in the State plan compare to the model benchmarks 
     established by the Federal Partnership under section 
     772(b)(2);
       (ii) how the proposed State benchmarks compare with State 
     benchmarks proposed by other States in their State plans; and
       (iii) whether the proposed State benchmarks, taken as a 
     whole, are sufficient--

       (I) to enable the State to meet the State goals; and
       (II) to make the State eligible for an incentive grant 
     under section 732(a).

       (B) Notification.--The Federal Partnership shall 
     immediately notify the State of the determinations referred 
     to in subparagraph (A). If the Federal Partnership determines 
     that the proposed State benchmarks are not sufficient to make 
     the State eligible for an incentive grant under section 
     732(a), the Federal Partnership shall provide the State with 
     guidance on the steps the State may take to allow the State 
     to become eligible for the grant.
       (C) Revision.--Not later than 30 days after the date of 
     receipt of the notification referred to in subparagraph (B), 
     the State may revise some or all of the State benchmarks 
     identified in the State plan in order to become eligible for 
     the incentive grant or provide reasons why the State 
     benchmarks should be sufficient to make the State eligible 
     for the incentive grant.
       (D) Determination.--After reviewing any revised State 
     benchmarks or information submitted by the State in 
     accordance with subparagraph (C), the Federal Partnership 
     shall make a determination on the eligibility of the State 
     for the incentive grant, as described in paragraph (6), and 
     provide advice to the Secretary of Labor and the Secretary of 
     Education. The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, may award a grant to the State under section 
     732(a).
       (6) Incentive grants.--Each State that sets high benchmarks 
     under paragraph (1), (2), or (3) and reaches or exceeds the 
     benchmarks, as determined by the Federal Partnership, shall 
     be eligible to receive an incentive grant under section 
     732(a).
       (7) Sanctions.--A State that has failed to demonstrate 
     sufficient progress toward reaching the State benchmarks 
     established under this subsection for the 3 years covered by 
     a State plan described in section 714, as determined by the 
     Federal Partnership, may be subject to sanctions under 
     section 732(b).
       (d) Job Placement Accountability System.--
       (1) In general.--Each State that receives an allotment 
     under section 712 shall establish a job placement 
     accountability system, which will provide a uniform set of 
     data to track the progress of the State toward reaching the 
     State benchmarks.
       (2) Data.--
       (A) In general.--In order to maintain data relating to the 
     measures described in subsection (c)(1), each such State 
     shall establish a job placement accountability system using 
     quarterly wage records available through the unemployment 
     insurance system. The State agency or entity within the State 
     responsible for labor market information, as designated in 
     section 773(c)(1)(B), in conjunction with the Commissioner of 
     Labor Statistics, shall maintain the job placement 
     accountability system and match information on participants 
     served by the statewide systems of the State and other States 
     with quarterly employment and earnings records.
       (B) Reimbursement.--Each local entity that carries out 
     workforce employment activities or workforce education 
     activities and that receives funds under this subtitle shall 
     provide information regarding the social security numbers of 
     the participants served by the entity and such other 
     information as the State may require to the State agency or 
     entity within the State responsible for labor market 
     information, as designated in section 773(c)(1)(B).
       (C) Confidentiality.--The State agency or entity within the 
     State responsible for labor market information, as designated 
     in section 773(c)(1)(B), shall protect the confidentiality of 
     information obtained through the job placement accountability 
     system through the use of recognized security procedures.
       (e) Individual Accountability.--Each State that receives an 
     allotment under section 712 shall devise and implement 
     procedures to provide, in a timely manner, information on 
     participants in activities carried out through the statewide 
     system who are participating as a condition of receiving 
     welfare assistance. The procedures shall require that the 
     State provide the information to the State and local agencies 
     carrying out the programs through which the welfare 
     assistance is provided, in a manner that ensures that the 
     agencies can monitor compliance with the conditions regarding 
     the receipt of the welfare assistance.

     SEC. 732. INCENTIVES AND SANCTIONS.

       (a) Incentives.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, may award incentive grants of not more than 
     $15,000,000 per program year to a State that--
       (A) reaches or exceeds State benchmarks established under 
     section 731(c), with an emphasis on the benchmarks 
     established under section 731(c)(3), in accordance with 
     section 731(c)(6); or
       (B) demonstrates to the Federal Partnership that the State 
     has made substantial reductions in the number of adult 
     recipients of assistance, as defined in section 712(b)(1)(A), 
     resulting from increased placement of such adult recipients 
     in unsubsidized employment.
       (2) Use of funds.--A State that receives such a grant may 
     use the funds made available through the grant to carry out 
     any workforce development activities authorized under this 
     title.
       (b) Sanctions.--
       (1) Failure to demonstrate sufficient progress.--If the 
     Federal Partnership determines, after notice and an 
     opportunity for a hearing, that a State has failed to 
     demonstrate sufficient progress toward reaching the State 
     benchmarks established under section 731(c) for the 3 years 
     covered by a State plan described in section 714, the Federal 


[[Page S 13110]]
     Partnership shall provide advice to the Secretary of Labor and the 
     Secretary of Education. The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, may reduce the allotment of the State 
     under section 712 by not more than 10 percent per program 
     year for not more than 3 years. The Federal Partnership may 
     determine that the failure of the State to demonstrate such 
     progress is attributable to the workforce employment 
     activities, workforce education activities, or flexible 
     workforce activities, of the State and provide advice to the 
     Secretary of Labor and the Secretary of Education. The 
     Secretary of Labor and the Secretary of Education, acting 
     jointly on the advice of the Federal Partnership, may decide 
     to reduce only the portion of the allotment for such 
     activities.
       (2) Expenditure contrary to title.--If the Governor of a 
     State determines that a local entity that carries out 
     workforce employment activities in a substate area of the 
     State has expended funds made available under this title in a 
     manner contrary to the purposes of this title, and such 
     expenditures do not constitute fraudulent activity, the 
     Governor may deduct an amount equal to the funds from a 
     subsequent program year allocation to the substate area.
       (c) Funds Resulting From Reduced Allotments.--The Secretary 
     of Labor and the Secretary of Education, acting jointly on 
     the advice of the Federal Partnership, may use an amount 
     retained as a result of a reduction in an allotment made 
     under subsection (b)(1) to award an incentive grant under 
     subsection (a).

     SEC. 733. UNEMPLOYMENT TRUST FUND.

       (a) In General.--Section 901(c) of the Social Security Act 
     (42 U.S.C. 1101(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by striking clause (ii) and inserting the following:
       ``(ii) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B), of 
     the Workforce Development Act of 1995, and''; and
       (ii) in clause (iii), by striking ``carrying into effect 
     section 4103'' and ``carrying out the activities described in 
     sections 4103, 4103A, 4104, and 4104A''; and
       (B) in subparagraph (B)--
       (i) in the matter preceding clause (i), by striking 
     ``Department of Labor'' and inserting ``Department of Labor 
     or the Workforce Development Partnership, as appropriate,''; 
     and
       (ii) by striking clause (iii) and inserting the following:
       ``(iii) the Workforce Development Act of 1995,''; and
       (2) in the first sentence of paragraph (4), by striking 
     ``the total cost'' and all that follows through ``the 
     President determines'' and inserting ``the total cost of 
     administering the statewide workforce development systems, to 
     the extent the systems are used to carry out activities 
     described in section 773, or in any of clauses (ii) through 
     (v) of section 716(a)(2)(B), of the Workforce Development Act 
     of 1995, and of the necessary expenses of the Workforce 
     Development Partnership for the performance of the functions 
     of the partnership under such Act, as the President 
     determines''.
       (b) Guam; United States Virgin Islands.--From the total 
     amount made available under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) (referred to in 
     this section as the ``total amount'') for each fiscal year, 
     the Secretary of Labor and the Secretary of Education, acting 
     jointly, shall first allot to Guam and the United States 
     Virgin Islands an amount that, in relation to the total 
     amount for the fiscal year, is equal to the allotment 
     percentage that each received of amounts available under 
     section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) in fiscal 
     year 1983.
       (c) States.--
       (1) Allotments.--
       (A) In general.--Subject to paragraphs (2) and (3), the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly, shall (after making the allotments required by 
     subsection (b)) allot the remainder of the total amount for 
     each fiscal year among the States as follows:
       (i) Civilian labor force.--Two-thirds of such remainder 
     shall be allotted on the basis of the relative number of 
     individuals in the civilian labor force in each State as 
     compared to the total number of such individuals in all 
     States.
       (ii) Unemployed individuals.--One-third of such remainder 
     shall be allotted on the basis of the relative number of 
     unemployed individuals in each State as compared to the total 
     number of such individuals in all States.
       (B) Calculation.--For purposes of this paragraph, the 
     number of individuals in the civilian labor force and the 
     number of unemployed individuals shall be based on data for 
     the most recent calendar year available, as determined by the 
     Secretary of Labor and the Secretary of Education, acting 
     jointly.
       (2) Minimum percentage.--No State allotment under this 
     section for any fiscal year shall be a smaller percentage of 
     the total amount for the fiscal year than 90 percent of the 
     allotment percentage for the State for the fiscal year 
     preceding the fiscal year for which the determination is 
     made. For the purpose of this section, the Secretary of Labor 
     and the Secretary of Education, acting jointly, shall 
     determine the allotment percentage for each State for fiscal 
     year 1984, which shall be the percentage that the State 
     received of amounts available under section 6 of the Wagner-
     Peyser Act for fiscal year 1983. For the purpose of this 
     section, for each succeeding fiscal year, the allotment 
     percentage for each such State shall be the percentage that 
     the State received of amounts available under section 6 of 
     the Wagner-Peyser Act for the preceding fiscal year.
       (3) Minimum allotment.--For each fiscal year, no State 
     shall receive a total allotment under paragraphs (1) and (2) 
     that is less than 0.28 percent of the total amount for such 
     fiscal year.
       (4) Estimates.--The Secretary of Labor and the Secretary of 
     Education, acting jointly, shall, not later than March 15 of 
     each fiscal year, provide preliminary planning estimates and 
     shall, not later than May 15 of each fiscal year, provide 
     final planning estimates, showing the projected allocation 
     for each State for the following year.
       (5) Definition.--Notwithstanding section 703, as used in 
     paragraphs (2) through (4), the term ``State'' means each of 
     the several States of the United States, the District of 
     Columbia, the Commonwealth of Puerto Rico, Guam, and United 
     States Virgin Islands.
       (d) Effective Date.--This section, and the amendments made 
     by this section, shall take effect July 1, 1998.

     SEC. 734. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this title (other than subtitle C) $6,127,000,000 
     for each of fiscal years 1998 through 2001.
       (b) Reservations.--Of the amount appropriated under 
     subsection (a)--
       (1) 92.7 percent shall be reserved for making allotments 
     under section 712;
       (2) 1.25 percent shall be reserved for carrying out section 
     717;
       (3) 0.2 percent shall be reserved for carrying out section 
     718;
       (4) 4.3 percent shall be reserved for making incentive 
     grants under section 732(a) and for the administration of 
     this title;
       (5) 1.4 percent shall be reserved for carrying out section 
     773; and
       (6) 0.15 percent shall be reserved for carrying out 
     sections 774 and 775 and the National Literacy Act of 1991 
     (20 U.S.C. 1201 note).
       (c) Program Year.--
       (1) In general.--Appropriations for any fiscal year for 
     programs and activities under this title shall be available 
     for obligation only on the basis of a program year. The 
     program year shall begin on July 1 in the fiscal year for 
     which the appropriation is made.
       (2) Administration.--Funds obligated for any program year 
     may be expended by each recipient during the program year and 
     the 2 succeeding program years and no amount shall be 
     deobligated on account of a rate of expenditure that is 
     consistent with the provisions of the State plan specified in 
     section 714 that relate to workforce employment activities.

     SEC. 735. EFFECTIVE DATE.

       This subtitle shall take effect July 1, 1998.
 Subtitle C--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 741. PURPOSES.

       The purposes of this subtitle are--
       (1) to maintain a Job Corps for at-risk youth as part of 
     statewide systems;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of residential and 
     nonresidential Job Corps centers in which enrollees will 
     participate in intensive programs of workforce development 
     activities;
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps; and
       (5) to assist at-risk youth who need and can benefit from 
     an unusually intensive program, operated in a group setting, 
     to become more responsible, employable, and productive 
     citizens.

     SEC. 742. DEFINITIONS.

       As used in this subtitle:
       (1) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24;
       (B) is low-income (as defined in section 723(e));
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) Involved in the juvenile justice system.
       (vi) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the corps 
     described in section 744.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 744.

[[Page S 13111]]


     SEC. 743. AUTHORITY OF GOVERNOR.

       The duties and powers granted to a State by this subtitle 
     shall be considered to be granted to the Governor of the 
     State.

                          CHAPTER 2--JOB CORPS

     SEC. 744. GENERAL AUTHORITY.

       If a State receives an allotment under section 759, and a 
     center located in the State received assistance under part B 
     of title IV of the Job Training Partnership Act for fiscal 
     year 1996 and was not closed in accordance with section 755, 
     the State shall use a portion of the funds made available 
     through the allotment to maintain the center, and carry out 
     activities described in this subtitle for individuals 
     enrolled in a Job Corps and assigned to the center.

     SEC. 745. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The State shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps.
       (2) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) one-stop career centers;
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (3) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     can participate successfully in group situations and 
     activities, is not likely to engage in behavior that would 
     prevent other enrollees from receiving the benefit of the 
     program or be incompatible with the maintenance of sound 
     discipline and satisfactory relationships between the Job 
     Corps center to which the individual might be assigned and 
     surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.
       (c) Individuals Eligible.--To be eligible to become an 
     enrollee, an individual shall be an at-risk youth.

     SEC. 746. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--
       (1) In general.--Except as provided in paragraph (2), the 
     State shall assign an enrollee to the Job Corps center within 
     the State that is closest to the residence of the enrollee.
       (2) Agreements with other states.--The State may enter into 
     agreements with 1 or more States to enroll individuals from 
     the States in the Job Corps and assign the enrollees to Job 
     Corps centers in the State.

     SEC. 747. JOB CORPS CENTERS.

       (a) Development.--The State shall enter into an agreement 
     with a Federal, State, or local agency, which may be a State 
     board or agency that operates or wishes to develop an area 
     vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     establishment and operation of a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 748.
       (c) Civilian Conservation Centers.--The Job Corps centers 
     may include Civilian Conservation Centers, located primarily 
     in rural areas, which shall provide, in addition to other 
     training and assistance, programs of work experience to 
     conserve, develop, or manage public natural resources or 
     public recreational areas or to develop community projects in 
     the public interest.
       (d) Job Corps Operators.--To be eligible to receive funds 
     under this chapter, an entity who entered into a contract 
     with the Secretary of Labor that is in effect on the 
     effective date of this section to carry out activities 
     through a center under part B of title IV of the Job Training 
     Partnership Act (as in effect on the day before the effective 
     date of this section), shall enter into a contract with the 
     State in which the center is located that contains provisions 
     substantially similar to the provisions of the contract with 
     the Secretary of Labor, as determined by the State.

     SEC. 748. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     716(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the enrollees, 
     including providing work-based learning throughout the 
     enrollment of the enrollees and assisting the enrollees in 
     obtaining meaningful unsubsidized employment on completion of 
     their enrollment.
       (b) Arrangements.--The State shall arrange for enrollees 
     assigned to Job Corps centers in the State to receive 
     workforce development activities through the statewide 
     system, including workforce development activities provided 
     through local public or private educational agencies, 
     vocational educational institutions, or technical institutes.
       (c) Job Placement Accountability.--Each Job Corps center 
     located in a State shall be connected to the job placement 
     accountability system of the State described in section 
     731(d).

     SEC. 749. SUPPORT.

       The State shall provide enrollees assigned to Job Corps 
     centers in the State with such personal allowances as the 
     State may determine to be necessary or appropriate to meet 
     the needs of the enrollees.

     SEC. 750. OPERATING PLAN.

       To be eligible to operate a Job Corps center and receive 
     assistance under section 759 for program year 1998 or any 
     subsequent program year, an entity shall prepare and submit, 
     to the Governor of the State in which the center is located, 
     and obtain the approval of the Governor for, an operating 
     plan that shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan for 
     the State submitted under section 714;
       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 716(a)(2) by the State.

     SEC. 751. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The State shall provide, 
     and directors of Job Corps center shall stringently enforce, 
     standards of conduct within the centers. Such standards of 
     conduct shall include provisions forbidding violence, drug 
     abuse, and other criminal activity.
       (b) Disciplinary Measures.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Corps if the director determines that the retention of the 
     enrollee in the Corps will jeopardize the enforcement of such 
     standards or diminish the opportunities of other enrollees. 
     If the director determines that an enrollee has engaged in an 
     incident involving violence, drug abuse, or other criminal 
     activity, the director shall immediately dismiss the enrollee 
     from the Corps.
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the State.

     SEC. 752. COMMUNITY PARTICIPATION.

       The State shall encourage and cooperate in activities to 
     establish a mutually beneficial relationship between Job 
     Corps centers in the State and nearby communities. The 
     activities may include the use of any local workforce 
     development boards established in the State under section 
     728(b) to provide a mechanism for joint discussion of common 
     problems and for planning programs of mutual interest.

     SEC. 753. COUNSELING AND PLACEMENT.

       The State shall ensure that enrollees assigned to Job Corps 
     centers in the State receive counseling and job placement 
     services, which shall be provided, to the maximum extent 
     practicable, through the delivery of core services described 
     in section 716(a)(2).

     SEC. 754. LEASES AND SALES OF CENTERS.

       (a) Leases.--
       (1) In general.--The Secretary of Labor shall offer to 
     enter into a lease with each State that has an approved State 
     plan submitted under section 714 and in which 1 or more Job 
     Corps centers are located.
       (2) Nominal consideration.--Under the terms of the lease, 
     the Secretary of Labor shall lease the Job Corps centers in 
     the State to the State in return for nominal consideration.
       (3) Indemnity agreement.--To be eligible to lease such a 
     center, a State shall enter into an agreement to hold 
     harmless and indemnify the United States from any liability 
     or claim for damages or injury to any person or property 
     arising out of the lease.
       (b) Sales.--Notwithstanding the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
     the Secretary of Labor shall offer each State described in 
     subsection (a)(1) the opportunity to purchase the Job Corps 
     centers in the State in return for nominal consideration.

     SEC. 755. CLOSURE OF JOB CORPS CENTERS.

       (a) National Job Corps Audit.--Not later than March 31, 
     1997, the Federal Partnership shall conduct an audit of the 
     activities carried out under part B of title IV of the Job 
     Training Partnership Act (29 U.S.C. 1691 et seq.), and submit 
     to the appropriate committees of Congress a report containing 
     the results of the audit, including information indicating--

[[Page S 13112]]

       (1) the amount of funds expended for fiscal year 1996 to 
     carry out activities under such part, for each State and for 
     the United States;
       (2) for each Job Corps center funded under such part 
     (referred to in this subtitle as a ``Job Corps center''), the 
     amount of funds expended for fiscal year 1996 under such part 
     to carry out activities related to the direct operation of 
     the center, including funds expended for student training, 
     outreach or intake activities, meals and lodging, student 
     allowances, medical care, placement or settlement activities, 
     and administration;
       (3) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part through contracts to 
     carry out activities not related to the direct operation of 
     the center, including funds expended for student travel, 
     national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, the amount of funds expended 
     for fiscal year 1996 under such part for facility 
     construction, rehabilitation, and acquisition expenses; and
       (5) the amount of funds required to be expended under such 
     part to complete each new or proposed Job Corps center, and 
     to rehabilitate and repair each existing Job Corps center, as 
     of the date of the submission of the report.
       (b) Recommendations of National Board.--
       (1) Recommendations.--The National Board shall, based on 
     the results of the audit described in subsection (a), make 
     recommendations to the Secretary of Labor, including 
     identifying 25 Job Corps centers to be closed by September 
     30, 1997.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the National 
     Board shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the audit described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the audit 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the National Board may determine to be 
     appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the National Board shall not recommend that 
     the Secretary of Labor close the only Job Corps center in a 
     State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the National Board shall not evaluate the center under 
     this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the National 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the National Board resulting from the audit 
     described in subsection (a) together with the recommendations 
     described in paragraph (1).
       (c) Closure.--The Secretary of Labor shall, after reviewing 
     the report submitted under subsection (b)(3), close 25 Job 
     Corps centers by September 30, 1997.

     SEC. 756. INTERIM OPERATING PLANS FOR JOB CORPS CENTERS.

       Part B of title IV of the Job Training Partnership Act (29 
     U.S.C. 1691 et seq.) is amended by inserting after section 
     439 the following section:

     ``SEC. 439A. OPERATING PLAN.

       ``(a) Submission of Plan.--To be eligible to operate a Job 
     Corps center and receive assistance under this part for 
     fiscal year 1997, an entity shall prepare and submit to the 
     Secretary and the Governor of the State in which the center 
     is located, and obtain the approval of the Secretary for, an 
     operating plan that shall include, at a minimum, information 
     indicating--
       ``(1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the interim plan for 
     the State submitted under section 763 of the Workforce 
     Development Act of 1995;
       ``(2) the extent to which workforce employment activities 
     and workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the industry sectors most important to the economic 
     competitiveness of the State; and
       ``(3) an implementation strategy to ensure that all 
     enrollees assigned to the Job Corps center will have access 
     to services through the one-stop delivery of core services 
     described in section 716(a)(2) of the Workforce Development 
     Act of 1995 by the State as identified in the interim plan.
       ``(b) Submission of Comments.--Not later than 30 days after 
     receiving an operating plan described in subsection (a), the 
     Governor of the State in which the center is located may 
     submit comments on the plan to the Secretary.
       ``(c) Approval.--The Secretary shall not approve an 
     operating plan described in subsection (a) for a center if 
     the Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities to be carried out through the 
     statewide system of the State in which the center is 
     located.''.

     SEC. 757. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Interim Provisions.--Sections 754 and 755, and the 
     amendment made by section 756, shall take effect on the date 
     of enactment of this Act.

  CHAPTER 3--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

     SEC. 759. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

       (a) In General.--For program year 1998 and each subsequent 
     program year, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make allotments under subsection (c) to 
     States to assist the States in paying for the cost of 
     carrying out workforce preparation activities for at-risk 
     youth, as described in this section.
       (b) State Use of Funds.--
       (1) Core activities.--The State shall use a portion of the 
     funds made available to the State through an allotment 
     received under subsection (c) to establish and operate Job 
     Corps centers as described in chapter 2, if a center located 
     in the State received assistance under part B of title IV of 
     the Job Training Partnership Act for fiscal year 1996 and was 
     not closed in accordance with section 755.
       (2) Permissible activities.--The State may use a portion of 
     the funds described in paragraph (1) to--
       (A) make grants, in cooperation with the State educational 
     agency, to eligible entities, as described in subsection (e), 
     to assist the entities in carrying out innovative programs to 
     assist out-of-school at-risk youth in participating in 
     school-to-work activities;
       (B) make grants, in cooperation with the State educational 
     agency, to eligible entities, as described in subsection (e), 
     to assist the entities in providing work-based learning as a 
     component of school-to-work activities, including summer jobs 
     linked to year-round school-to-work programs; and
       (C) carry out, in cooperation with the State educational 
     agency, other workforce development activities specifically 
     for at-risk youth.
       (c) Allotments.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall allot to each State an amount equal to the 
     total of--
       (A) the amount made available to the State under paragraph 
     (2); and
       (B) the amounts made available to the State under 
     subparagraphs (C), (D), and (E) of paragraph (3).
       (2) Allotments based on fiscal year 1996 appropriations.--
     Using a portion of the funds appropriated under subsection 
     (g) for a fiscal year, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State the 
     amount that Job Corps centers in the State expended for 
     fiscal year 1996 under part B of title IV of the Job Training 
     Partnership Act to carry out activities related to the direct 
     operation of the centers, as determined under section 
     755(a)(2).
       (3) Allotments based on populations.--
       (A) Definitions.--As used in this paragraph:
       (i) Individual in poverty.--The term ``individual in 
     poverty'' means an individual who--

       (I) is not less than age 18;
       (II) is not more than age 64; and
       (III) is a member of a family (of 1 or more members) with 
     an income at or below the poverty line.

       (ii) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved, using 
     the most recent available data provided by the Bureau of the 
     Census, prior to the program year for which the allotment is 
     made, and applying the definition of poverty used by the 
     Bureau of the Census in compiling the 1990 decennial census.
       (B) Total allotments.--The Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall use the remainder of the funds 

[[Page S 13113]]
     that are appropriated under subsection (g) for a fiscal year, and that 
     are not made available under paragraph (2), to make amounts 
     available under this paragraph.
       (C) Unemployed individuals.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     average number of unemployed individuals (as determined by 
     the Secretary of Labor for the most recent 24-month period 
     for which data are available, prior to the program year for 
     which the allotment is made) in the State bears to the 
     average number of unemployed individuals (as so determined) 
     in the United States.
       (D) Individuals in poverty.--From funds equal to 33\1/3\ 
     percent of such remainder, the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make available to each State an 
     amount that bears the same relationship to such funds as the 
     total number of individuals in poverty in the State bears to 
     the total number of individuals in poverty in the United 
     States.
       (E) At-risk youth.--From funds equal to 33\1/3\ percent of 
     such remainder, the Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make available to each State an amount 
     that bears the same relationship to such funds as the total 
     number of at-risk youth in the State bears to the total 
     number of at-risk youth in the United States.
       (d) State Plan.--
       (1) Information.--To be eligible to receive an allotment 
     under subsection (c), a State shall include, in the State 
     plan to be submitted under section 714, information 
     describing the allocation within the State of the funds made 
     available through the allotment, and how the programs and 
     activities described in subsection (b)(2) will be carried out 
     to meet the State goals and reach the State benchmarks.
       (2) Limitation.--A State may not be required to include the 
     information described in paragraph (1) in the State plan to 
     be submitted under section 714 to be eligible to receive an 
     allotment under section 712.
       (e) Application.--To be eligible to receive a grant under 
     subparagraph (A) or (B) of subsection (b)(2) from a State, an 
     entity shall prepare and submit to the Governor of the State 
     an application at such time, in such manner, and containing 
     such information as the Governor may require.
       (f) Within State Distribution.--Of the funds allotted to a 
     State under subsection (c)(3) for workforce preparation 
     activities for at-risk youth for a program year--
       (1) 15 percent shall be reserved by the Governor to carry 
     out such activities through the statewide system; and
       (2) 85 percent shall be distributed to local entities to 
     carry out such activities through the statewide system.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subtitle, $2,100,000,000 
     for each of fiscal years 1998 through 2001.
       (h) Effective Date.--This chapter shall take effect on July 
     1, 1998.
                   Subtitle D--Transition Provisions

     SEC. 761. WAIVERS.

       (a) Waiver Authority.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, and except as provided in subsection (d), the 
     Secretary may waive any requirement under any provision of 
     law relating to a covered activity, or of any regulation 
     issued under such a provision, for--
       (A) a State that requests such a waiver and submits an 
     application as described in subsection (b); or
       (B) a local entity that requests such a waiver and complies 
     with the requirements of subsection (c);

     in order to assist the State or local entity in planning or 
     developing a statewide system or workforce development 
     activities to be carried out through the statewide system.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     each waiver approved pursuant to this section shall be for a 
     period beginning on the date of the approval and ending on 
     June 30, 1998.
       (B) Failure to submit interim plan.--If a State receives a 
     waiver under this section and fails to submit an interim plan 
     under section 763 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997. If a local entity 
     receives a waiver under this section, and the State in which 
     the local entity is located fails to submit an interim plan 
     under section 763 by June 30, 1997, the waiver shall be 
     deemed to terminate on September 30, 1997.
       (b) State Request for Waiver.--
       (1) In general.--A State may submit to the Secretary a 
     request for a waiver of 1 or more requirements referred to in 
     subsection (a). The request may include a request for 
     different waivers with respect to different areas within the 
     State.
       (2) Application.--To be eligible to receive a waiver 
     described in subsection (a), a State shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including information--
       (A) identifying the requirement to be waived and the goal 
     that the State (or the local agency applying to the State 
     under subsection (c)) intends to achieve through the waiver;
       (B) identifying, and describing the actions that the State 
     will take to remove, similar State requirements;
       (C) describing the activities to which the waiver will 
     apply, including information on how the activities may be 
     continued, or related to activities carried out, under the 
     statewide system of the State;
       (D) describing the number and type of persons to be 
     affected by such waiver; and
       (E) providing evidence of approval of the
                                                                    ____

                           Amendment No. 2659

       Beginning on page 341, line 7, strike all through page 406, 
     line 13, and insert the following:

     tion of business, industry, labor, and the education 
     community in the development and continuous improvement of 
     the statewide system;
       (G) information identifying how any funds that a State 
     receives under this subtitle will be leveraged with other 
     public and private resources to maximize the effectiveness of 
     such resources for all workforce development activities, and 
     expand the participation of business, industry, labor, the 
     education community, and individuals in the statewide system;
       (H) information identifying how the workforce development 
     activities to be carried out with funds received through the 
     allotment will be coordinated with programs carried out by 
     the Veterans' Employment and Training Service with funds 
     received under title 38, United States Code, in order to meet 
     the State goals and reach the State benchmarks related to 
     veterans;
       (I) information describing how the State will eliminate 
     duplication in the administration and delivery of services 
     under this title;
       (J) information describing the process the State will use 
     to independently evaluate and continuously improve the 
     performance of the statewide system, on a yearly basis, 
     including the development of specific performance indicators 
     to measure progress toward meeting the State goals;
       (K) an assurance that the funds made available under this 
     subtitle will supplement and not supplant other public funds 
     expended to provide workforce development activities;
       (L) information identifying the steps that the State will 
     take over the 3 years covered by the plan to establish common 
     data collection and reporting requirements for workforce 
     development activities and vocational rehabilitation program 
     activities;
       (M) with respect to economic development activities, 
     information--
       (i) describing the activities to be carried out with the 
     funds made available under this subtitle;
       (ii) describing how the activities will lead directly to 
     increased earnings of nonmanagerial employees in the State; 
     and
       (iii) describing whether the labor organization, if any, 
     representing the nonmanagerial employees supports the 
     activities;
       (N) the description referred to in subsection (d)(1); and
       (O)(i) information demonstrating the support of individuals 
     and entities described in subsection (d)(1) for the plan; or
       (ii) in a case in which the Governor is unable to obtain 
     the support of such individuals and entities as provided in 
     subsection (d)(2), the comments referred to in subsection 
     (d)(2)(B),
       (2) with respect to workforce employment activities, 
     information--
       (A)(i) identifying and designating substate areas, 
     including urban and rural areas, to which funds received 
     through the allotment will be distributed, which areas shall, 
     to the extent feasible, reflect local labor market areas; or
       (ii) stating that the State will be treated as a substate 
     area for purposes of the application of this subtitle, if the 
     State receives an increase in an allotment under section 712 
     for a program year as a result of the application of section 
     712(c)(2); and
       (B) describing the basic features of one-stop delivery of 
     core services described in section 716(a)(2) in the State, 
     including information regarding--
       (i) the strategy of the State for developing fully 
     operational one-stop delivery of core services described in 
     section 716(a)(2);
       (ii) the time frame for achieving the strategy;
       (iii) the estimated cost for achieving the strategy;
       (iv) the steps that the State will take over the 3 years 
     covered by the plan to provide individuals with access to 
     one-stop delivery of core services described in section 
     716(a)(2);
       (v) the steps that the State will take over the 3 years 
     covered by the plan to provide information through the one-
     stop delivery to individuals on the quality of workforce 
     employment activities, workforce education activities, and 
     vocational rehabilitation program activities, provided 
     through the statewide system;
       (vi) the steps that the State will take over the 3 years 
     covered by the plan to link services provided through the 
     one-stop delivery with services provided through State 
     welfare agencies; and
       (vii) in a case in which the State chooses to use vouchers 
     to deliver workforce employment activities, the steps that 
     the State will take over the 3 years covered by the plan to 
     comply with the requirements in section 716(a)(9) and the 
     information required in such section;

[[Page S 13114]]

       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 773(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     716(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 731(d);
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; and
       (H)(i) describing the steps that the State will take to 
     segregate the amount allotted to the State from funds made 
     available under section 901(c)(1)(A) of the Social Security 
     Act (42 U.S.C. 1101(c)(1)(A)) from the remainder of the 
     portion described in section 713(a)(1); and
       (ii) describing how the State will use the amount allotted 
     to the State from funds made available under such section 
     901(c)(1)(A) to carry out the required activities described 
     in clauses (ii) through (v) of section 716(a)(2)(B) and 
     section 773;
       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;
       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;
     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan; and
       (3) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 731(c).
       (f) No Entitlement to a Service.--Nothing in this title 
     shall be construed to provide any individual with an 
     entitlement to a service provided under this title.

     SEC. 715. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 712 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     714(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 714, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 731(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 773(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 716(a)(2), providers of other workforce 
     employment activities, and providers of workforce education 
     activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this title.
     SEC. 716. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle to carry out workforce employment activities through 
     a statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), and (4); and
       (B) may be used to carry out the activities described in 
     paragraphs (5), (6), (7), and (8), including providing 
     activities described in paragraph (6) through vouchers 
     described in paragraph (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;

[[Page S 13115]]

       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 773(c).
       (4) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 731(d).
       (5) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, welfare 
     assistance, veterans' employment services, or other public 
     assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.
       (6) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) on-the-job training;
       (B) occupational skills training;
       (C) entrepreneurial training;
       (D) training to develop work habits to help individuals 
     obtain and retain employment;
       (E) customized training conducted with a commitment by an 
     employer or group of employers to employ an individual after 
     successful completion of the training;
       (F) rapid response assistance for dislocated workers;
       (G) skill upgrading and retraining for persons not in the 
     workforce;
       (H) preemployment and work maturity skills training for 
     youth;
       (I) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (J) programs for adults that combine workplace training 
     with related instruction;
       (K) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (L) case management services;
       (M) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system;
       (N) followup services for participants who are placed in 
     unsubsidized employment; and
       (O) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (7) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (8) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 731(c), with an emphasis 
     on benchmarks established under section 731(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this title.
       (9) Vouchers.--
       (A) In general.--A State may deliver some or all of the 
     workforce employment activities described in paragraph (6) 
     that are provided under this subtitle through a system of 
     vouchers administered through the one-stop delivery of core 
     services described in paragraph (2) in the State.
       (B) Eligibility requirements.--
       (i) In general.--A State that chooses to deliver the 
     activities described in subparagraph (A) through vouchers 
     shall indicate in the State plan described in section 714 the 
     criteria that will be used to determine--

       (I) which workforce employment activities described in 
     paragraph (6) will be delivered through the voucher system;
       (II) eligibility requirements for participants to receive 
     the vouchers and the amount of funds that participants will 
     be able to access through the voucher system; and
       (III) which employment, training, and education providers 
     are eligible to receive payment through the vouchers.

       (ii) Considerations.--In establishing State criteria for 
     service providers eligible to receive payment through the 
     vouchers under clause (i)(III), the State shall take into 
     account industry-recognized skills standards promoted by the 
     National Skills Standards Board.
       (C) Accountability requirements.--A State that chooses to 
     deliver the activities described in paragraph (6) through 
     vouchers shall indicate in the State plan--
       (i) information concerning how the State will utilize the 
     statewide comprehensive labor market information system 
     described in section 773(c) and the job placement 
     accountability system established under section 731(d) to 
     provide timely and accurate information to participants about 
     the performance of eligible employment, training, and 
     education providers;
       (ii) other information about the performance of eligible 
     providers of services that the State believes is necessary 
     for participants receiving the vouchers to make informed 
     career choices; and
       (iii) the timeframe in which the information developed 
     under clauses (i) and (ii) will be widely available through 
     the one-stop delivery of core services described in paragraph 
     (2) in the State.
       (10) Funds from unemployment trust fund.--Funds made 
     available to a Governor under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) for a program 
     year shall only be available for workforce employment 
     activities authorized under such section 901(c)(1)(A), which 
     are--
       (A) the administration of State unemployment compensation 
     laws as provided in title III of the Social Security Act 
     (including administration pursuant to agreements under any 
     Federal unemployment compensation law);
       (B) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B); and
       (C) carrying out the activities described in sections 4103, 
     4103A, 4104, and 4104A of title 38, United States Code 
     (relating to veterans' employment services).
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this subtitle for workforce 
     education activities to carry out, through the statewide 
     system, activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, planning, and guidance 
     information to students and their parents that is, to the 
     extent possible, in a language and form that the students and 
     their parents understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this subtitle for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     determines that the fiscal effort per student or the 
     aggregate expenditures of such State for workforce education 
     for the program year preceding the program year for which the 
     determination is made, equaled or exceeded such effort or 
     expenditures for workforce education for the second program 
     year preceding the fiscal year for which the determination is 
     made.
       (B) Waiver.--The Federal Partnership may waive the 
     requirements of this section (with respect to not more than 5 
     percent of expenditures by any State educational agency) for 
     1 program year only, on making a determination that such 
     waiver would be equitable due to exceptional or 
     uncontrollable circumstances affecting the ability of the 
     applicant to meet such requirements, such as a natural 
     disaster or an unforeseen and precipitous decline in 
     financial resources. No level of funding permitted under such 
     a waiver may be used as the basis for computing the fiscal 
     effort or aggregate expenditures required under this section 
     for years subsequent to the year covered by such waiver. 

[[Page S 13116]]
     The fiscal effort or aggregate expenditures for the subsequent years 
     shall be computed on the basis of the level of funding that 
     would, but for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this subtitle through the flex account to carry out school-
     to-work activities through the statewide system, except that 
     any State that received a grant under subtitle B of title II 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6141 et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this subtitle through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 728(c), the 
     State may use a portion of the funds made available to the 
     State under this subtitle through the flex account to 
     supplement other funds provided by the State or private 
     sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this subtitle shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this subtitle 
     shall be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this subtitle shall be used for 
     customized or skill training, on-the-job training, or company 
     specific assessments of job applicants or workers, for any 
     business or part of a business, that has relocated, until 120 
     days after the date on which such business commences 
     operations at the new location, if the relocation of such 
     business or part of a business, results in a loss of 
     employment for any worker of such business at the original 
     location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of subsection (a)(6) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(6), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this title, a State may use funds made available 
     under section 713(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--
       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of subsection (a)(6); and
       (ii) are otherwise unable to obtain such services.

     SEC. 717. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to support 
     workforce development activities for Indian and Native 
     Hawaiian individuals in order--
       (A) to develop more fully the academic, occupational, and 
     literacy skills of such individuals;
       (B) to make such individuals more competitive in the 
     workforce; and
       (C) to promote the economic and social development of 
     Indian and Native Hawaiian communities in accordance with the 
     goals and values of such communities.
       (2)  Indian policy.--All programs assisted under this 
     section shall be administered in a manner consistent with the 
     principles of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
     government relationship between the Federal Government and 
     Indian tribal governments.
       (b) Definitions.--As used in this section:
       (1) Alaska native.--The term ``Alaska Native'' means a 
     Native as such term is defined in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       (2) Indian, indian tribe, and tribal organization.--The 
     terms ``Indian'', ``Indian tribe'', and ``tribal 
     organization'' have the same meanings given such terms in 
     subsections (d), (e) and (l), respectively, of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 1201(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1141(a)).
       (4) Native hawaiian and native hawaiian organization.--The 
     terms ``Native Hawaiian'' and ``Native Hawaiian 
     organization'' have the same meanings given such terms in 
     paragraphs (1) and (3), respectively, of section 9212 of the 
     Native Hawaiian Education Act (20 U.S.C. 7912).
       (5) Tribally controlled community college.--The term 
     ``tribally controlled community college'' has the same 
     meaning given such term in section 2(a)(4) of the Tribally 
     Controlled Community College Assistance Act of 1978 (25 
     U.S.C. 1801(a)(4)).
       (6) Tribally controlled postsecondary vocational 
     institution.--The term ``tribally controlled postsecondary 
     vocational institution'' means an institution of higher 
     education that--
       (A) is formally controlled, or has been formally sanctioned 
     or chartered, by the governing body of an Indian tribe or 
     Indian tribes;
       (B) offers a technical degree or certificate granting 
     program;
       (C) is governed by a board of directors or trustees, a 
     majority of whom are Indians;
       (D) demonstrates adherence to stated goals, a philosophy, 
     or a plan of operation, that fosters individual Indian 
     economic and self-sufficiency opportunity, including programs 
     that are appropriate to stated tribal goals of developing 
     individual entrepreneurships and self-sustaining economic 
     infrastructures on reservations;
       (E) has been in operation for at least 3 years;
       (F) holds accreditation with or is a candidate for 
     accreditation by a nationally recognized accrediting 
     authority for postsecondary vocational education; and
       (G) enrolls the full-time equivalent of not fewer than 100 
     students, of whom a majority are Indians.
       (c) Program Authorized.--
       (1) Assistance authorized.--From amounts made available 
     under section 734(b)(2), the Secretary of Labor and the 
     Secretary of Education, acting jointly on the advice of the 
     Federal Partnership, shall make grants to, or enter into 
     contracts or cooperative agreements with, Indian tribes and 
     tribal organizations, Alaska Native entities, tribally 
     controlled community colleges, tribally controlled 
     postsecondary vocational institutions, Indian-controlled 
     organizations serving Indians or Alaska Natives, and Native 
     Hawaiian organizations to carry out the authorized activities 
     described in subsection (d).
       (2) Formula.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to, or enter into contracts 
     and cooperative agreements with, entities as described in 
     paragraph (1) to carry out the activities described in 
     paragraphs (2) and (3) of subsection (d) on the basis of a 
     formula developed by the Federal Partnership in consultation 
     with entities described in paragraph (1).
       (d) Authorized Activities.--
       (1) In general.--Funds made available under this section 
     shall be used to carry out the activities described in 
     paragraphs (2) and (3) that--
       (A) are consistent with this section; and
       (B) are necessary to meet the needs of Indians and Native 
     Hawaiians preparing to enter, reenter, or retain unsubsidized 
     employment.
       (2) Workforce development activities and supplemental 
     services.--
       (A) In general.--Funds made available under this section 
     shall be used for--
       (i) comprehensive workforce development activities for 
     Indians and Native Hawaiians;
       (ii) supplemental services for Indian or Native Hawaiian 
     youth on or near Indian reservations in Oklahoma, Alaska, or 
     Hawaii; and
       (iii) supplemental services to recipients of public 
     assistance on or near Indian reservations or former 
     reservation areas in Oklahoma or in Alaska.

[[Page S 13117]]

       (B) Special rule.--Notwithstanding any other provision of 
     this section, individuals who were eligible to participate in 
     programs under section 401 of the Job Training Partnership 
     Act (29 U.S.C. 1671) (as such section was in effect on the 
     day before the date of enactment of this Act) shall be 
     eligible to participate in an activity assisted under 
     subparagraph (A)(i).
       (3) Vocational education, adult education, and literacy 
     services.--Funds made available under this section shall be 
     used for--
       (A) workforce education activities conducted by entities 
     described in subsection (c)(1); and
       (B) the support of tribally controlled postsecondary 
     vocational institutions in order to ensure continuing and 
     expanded educational opportunities for Indian students.
       (e) Program Plan.--In order to receive a grant or enter 
     into a contract or cooperative agreement under this section 
     an entity described in subsection (c)(1) shall submit to the 
     Federal Partnership a plan that describes a 3-year strategy 
     for meeting the needs of Indian and Native Hawaiian 
     individuals, as appropriate, in the area served by such 
     entity. Such plan shall--
       (1) be consistent with the purposes of this section;
       (2) identify the population to be served;
       (3) identify the education and employment needs of the 
     population to be served and the manner in which the services 
     to be provided will strengthen the ability of the individuals 
     served to obtain or retain unsubsidized employment;
       (4) describe the services to be provided and the manner in 
     which such services are to be integrated with other 
     appropriate services; and
       (5) describe the goals and benchmarks to be used to assess 
     the performance of entities in carrying out the activities 
     assisted under this section.
       (f) Further Consolidation of Funds.--Each entity receiving 
     assistance under this section may consolidate such assistance 
     with assistance received from related programs in accordance 
     with the provisions of the Indian Employment, Training and 
     Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
     seq.).
       (g) Nonduplicative and Nonexclusive Services.--Nothing in 
     this section shall be construed--
       (1) to limit the eligibility of any entity described in 
     subsection (c)(1) to participate in any program offered by a 
     State or local entity under this title; or
       (2) to preclude or discourage any agreement, between any 
     entity described in subsection (c)(1) and any State or local 
     entity, to facilitate the provision of services by such 
     entity or to the population served by such entity.
       (h) Partnership Provisions.--
       (1) Office established.--There shall be established within 
     the Federal Partnership an office to administer the 
     activities assisted under this section.
       (2) Consultation required.--
       (A) In general.--The Federal Partnership, through the 
     office established under paragraph (1), shall develop 
     regulations and policies for activities assisted under this 
     section in consultation with tribal organizations and Native 
     Hawaiian organizations. Such regulations and policies shall 
     take into account the special circumstances under which such 
     activities operate.
       (B) Administrative support.--The Federal Partnership shall 
     provide such administrative support to the office established 
     under paragraph (1) as the Federal Partnership determines to 
     be necessary to carry out the consultation required by 
     subparagraph (A).
       (3) Technical assistance.--The Federal Partnership, through 
     the office established under paragraph (1), is authorized to 
     provide technical assistance to entities described in 
     subsection (c)(1) that receive assistance under this section 
     to enable such entities to improve the workforce development 
     activities provided by such entities.

     SEC. 718. GRANTS TO OUTLYING AREAS.

       (a) General Authority.--Using funds made available under 
     section 734(b)(3), the Secretary of Labor and the Secretary 
     of Education, acting jointly on the advice of the Federal 
     Partnership, shall make grants to outlying areas to carry out 
     workforce development activities.
       (b) Application.--The Federal Partnership shall issue 
     regulations specifying the provisions of this title that 
     shall apply to outlying areas that receive funds under this 
     subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

     SEC. 721. LOCAL APPORTIONMENT BY ACTIVITY.

       (a) Workforce Employment Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (1) and (3) of 
     section 713(a) for workforce employment activities shall be 
     made available to the Governor of such State for use in 
     accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 25 percent shall be reserved by the Governor to carry 
     out workforce employment activities through the statewide 
     system, of which not more than 20 percent of such 25 percent 
     may be used for administrative expenses; and
       (B) 75 percent shall be distributed by the Governor to 
     local entities to carry out workforce employment activities 
     through the statewide system, based on--
       (i) such factors as the relative distribution among 
     substate areas of individuals who are not less than 15 and 
     not more than 65, individuals in poverty, unemployed 
     individuals, and adult recipients of assistance, as 
     determined using the definitions specified and the 
     determinations described in section 712(b); and
       (ii) such additional factors as the Governor (in 
     consultation with local partnerships described in section 
     728(a) or, where established, local workforce development 
     boards described in section 728(b)), determines to be 
     necessary.
       (b) Workforce Education Activities.--
       (1) In general.--The sum of the funds made available to a 
     State for any program year under paragraphs (2) and (3) of 
     section 713(a) for workforce education activities shall be 
     made available to the State educational agency serving such 
     State for use in accordance with paragraph (2).
       (2) Distribution.--Of the sum described in paragraph (1), 
     for a program year--
       (A) 20 percent shall be reserved by the State educational 
     agency to carry out statewide workforce education activities 
     through the statewide system, of which not more than 5 
     percent of such 20 percent may be used for administrative 
     expenses; and
       (B) 80 percent shall be distributed by the State 
     educational agency to entities eligible for financial 
     assistance under section 722, 723, or 724, to carry out 
     workforce education activities through the statewide system.
       (3) State activities.--Activities to be carried out under 
     paragraph (2)(A) may include professional development, 
     technical assistance, and program assessment activities.
       (4) State determinations.--From the amount available to a 
     State educational agency under paragraph (2)(B) for a program 
     year, such agency shall determine the percentage of such 
     amount that will be distributed in accordance with sections 
     722, 723, and 724 for such year for workforce education 
     activities in such State in each of the following areas:
       (A) Secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (B) Adult education.
       (c) Special Rule.--Nothing in this subtitle shall be 
     construed to prohibit any individual, entity, or agency in a 
     State (other than the State educational agency) that is 
     administering workforce education activities or setting 
     education policies consistent with authority under State law 
     for workforce education activities, on the day preceding the 
     date of enactment of this Act from continuing to administer 
     or set education policies consistent with authority under 
     State law for such activities under this subtitle.

     SEC. 722. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--Except as otherwise provided in this 
     section and section 725, each State educational agency shall 
     distribute the portion of the funds made available for any 
     program year (from funds made available for the corresponding 
     fiscal year, as determined under section 734(c)) by such 
     agency for secondary school vocational education under 
     section 721(b)(3)(A) to local educational agencies within the 
     State as follows:
       (1) Seventy percent.--From 70 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 70 percent as the amount 
     such local educational agency was allocated under section 
     1124 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6333) for the preceding fiscal year bears to the 
     total amount received under such section by all local 
     educational agencies in the State for such year.
       (2) Twenty percent.--From 20 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 20 percent as the number 
     of students with disabilities who have individualized 
     education programs under section 614(a)(5) of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1414(a)(5)) served 
     by such local educational agency for the preceding fiscal 
     year bears to the total number of such students served by all 
     local educational agencies in the State for such year.
       (3) Ten percent.--From 10 percent of such portion, each 
     local educational agency shall be allocated an amount that 
     bears the same relationship to such 10 percent as the number 
     of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of such local 
     educational agency for the preceding fiscal year bears to the 
     number of students enrolled in schools and adults enrolled in 
     training programs under the jurisdiction of all local 
     educational agencies in the State for such year.
       (b) Minimum Allocation.--
       (1) In general.--Except as provided in paragraph (2), no 
     local educational agency shall receive an allocation under 
     subsection (a) unless the amount allocated to such agency 
     under subsection (a) is not less than $15,000. A local 
     educational agency may enter into a consortium with other 
     local educational agencies for purposes of meeting the 
     minimum allocation requirement of this paragraph.
       (2) Waiver.--The State educational agency may waive the 
     application of paragraph (1) in any case in which the local 
     educational agency--
       (A) is located in a rural, sparsely-populated area; and
       (B) demonstrates that such agency is unable to enter into a 
     consortium for purposes of providing services under this 
     section.

[[Page S 13118]]

       (3) Redistribution.--Any amounts that are not allocated by 
     reason of paragraph (1) or (2) shall be redistributed to 
     local educational agencies that meet the requirements of 
     paragraph (1) or (2) in accordance with the provisions of 
     this section.
       (c) Limited Jurisdiction Agencies.--
       (1) In general.--In applying the provisions of subsection 
     (a), no State educational agency receiving assistance under 
     this subtitle shall allocate funds to a local educational 
     agency that serves only elementary schools, but shall 
     distribute such funds to the local educational agency or 
     regional educational agency that provides secondary school 
     services to secondary school students in the same attendance 
     area.
       (2) Special rule.--The amount to be allocated under 
     paragraph (1) to a local educational agency that has 
     jurisdiction only over secondary schools shall be determined 
     based on the number of students that entered such secondary 
     schools in the previous year from the elementary schools 
     involved.
       (d) Allocations to Area Vocational Education Schools and 
     Educational Service Agencies.--
       (1) In general.--Each State educational agency shall 
     distribute the portion of funds made available for any 
     program year by such agency for secondary school vocational 
     education under section 721(b)(3)(A) to the appropriate area 
     vocational education school or educational service agency in 
     any case in which--
       (A) the area vocational education school or educational 
     service agency, and the local educational agency concerned--
       (i) have formed or will form a consortium for the purpose 
     of receiving funds under this section; or
       (ii) have entered into or will enter into a cooperative 
     arrangement for such purpose; and
       (B)(i) the area vocational education school or educational 
     service agency serves an approximately equal or greater 
     proportion of students who are individuals with disabilities 
     or are low-income than the proportion of such students 
     attending the secondary schools under the jurisdiction of all 
     of the local educational agencies sending students to the 
     area vocational education school or the educational service 
     agency; or
       (ii) the area vocational education school, educational 
     service agency, or local educational agency demonstrates that 
     the vocational education school or educational service agency 
     is unable to meet the criterion described in clause (i) due 
     to the lack of interest by students described in clause (i) 
     in attending vocational education programs in that area 
     vocational education school or educational service agency.
       (2) Allocation basis.--If an area vocational education 
     school or educational service agency meets the requirements 
     of paragraph (1), then--
       (A) the amount that will otherwise be distributed to the 
     local educational agency under this section shall be 
     allocated to the area vocational education school, the 
     educational service agency, and the local educational agency, 
     based on each school's or agency's relative share of students 
     described in paragraph (1)(B)(i) who are attending vocational 
     education programs (based, if practicable, on the average 
     enrollment for the prior 3 years); or
       (B) such amount may be allocated on the basis of an 
     agreement between the local educational agency and the area 
     vocational education school or educational service agency.
       (3) State determination.--
       (A) In general.--For the purposes of this subsection, the 
     State educational agency may determine the number of students 
     who are low-income on the basis of--
       (i) eligibility for--

       (I) free or reduced-price meals under the National School 
     Lunch Act (7 U.S.C. 1751 et seq.);
       (II) assistance under a State program funded under part A 
     of title IV of the Social Security Act;
       (III) benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.); or
       (IV) services under title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.); and

       (ii) another index of economic status, including an 
     estimate of such index, if the State educational agency 
     demonstrates to the satisfaction of the Federal Partnership 
     that such index is a more representative means of determining 
     such number.
       (B) Data.--If a State educational agency elects to use more 
     than 1 factor described in subparagraph (A) for purposes of 
     making the determination described in such subparagraph, the 
     State educational agency shall ensure that the data used is 
     not duplicative.
       (4) Appeals procedure.--The State educational agency shall 
     establish an appeals procedure for resolution of any dispute 
     arising between a local educational agency and an area 
     vocational education school or an educational service agency 
     with respect to the allocation procedures described in this 
     section, including the decision of a local educational agency 
     to leave a consortium.
       (5) Special rule.--Notwithstanding the provisions of 
     paragraphs (1), (2), (3), and (4), any local educational 
     agency receiving an allocation that is not sufficient to 
     conduct a secondary school vocational education program of 
     sufficient size, scope, and quality to be effective may--
       (A) form a consortium or enter into a cooperative agreement 
     with an area vocational education school or educational 
     service agency offering secondary school vocational education 
     programs of sufficient size, scope, and quality to be 
     effective and that are accessible to students who are 
     individuals with disabilities or are low-income, and are 
     served by such local educational agency; and
       (B) transfer such allocation to the area vocational 
     education school or educational service agency.
       (e) Special Rule.--Each State educational agency 
     distributing funds under this section shall treat a secondary 
     school funded by the Bureau of Indian Affairs within the 
     State as if such school were a local educational agency 
     within the State for the purpose of receiving a distribution 
     under this section.

     SEC. 723. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                   EDUCATION.

       (a) Allocation.--
       (1) In general.--Except as provided in subsection (b) and 
     section 725, each State educational agency, using the portion 
     of the funds made available for any program year by such 
     agency for postsecondary and adult vocational education under 
     section 721(b)(3)(A)--
       (A) shall reserve funds to carry out subsection (d); and
       (B) shall distribute the remainder to eligible institutions 
     or consortia of the institutions within the State.
       (2) Formula.--Each such eligible institution or consortium 
     shall receive an amount for the program year (from funds made 
     available for the corresponding fiscal year, as determined 
     under section 734(c)) from such remainder bears the same 
     relationship to such remainder as the number of individuals 
     who are Pell Grant recipients or recipients of assistance 
     from the Bureau of Indian Affairs and are enrolled in 
     programs offered by such institution or consortium for the 
     preceding fiscal year bears to the number of all such 
     individuals who are enrolled in any such program within the 
     State for such preceding year.
       (3) Consortium requirements.--In order for a consortium of 
     eligible institutions described in paragraph (1) to receive 
     assistance pursuant to such paragraph such consortium shall 
     operate joint projects that--
       (A) provide services to all postsecondary institutions 
     participating in the consortium; and
       (B) are of sufficient size, scope, and quality to be 
     effective.
       (b) Waiver for More Equitable Distribution.--The Federal 
     Partnership may waive the application of subsection (a) in 
     the case of any State educational agency that submits to the 
     Federal Partnership an application for such a waiver that--
       (1) demonstrates that the formula described in subsection 
     (a) does not result in a distribution of funds to the 
     institutions or consortia within the State that have the 
     highest numbers of low-income individuals and that an 
     alternative formula will result in such a distribution; and
       (2) includes a proposal for an alternative formula that may 
     include criteria relating to the number of individuals 
     attending the institutions or consortia within the State 
     who--
       (A) receive need-based postsecondary financial aid provided 
     from public funds;
       (B) are members of families receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act;
       (C) are enrolled in postsecondary educational institutions 
     that--
       (i) are funded by the State;
       (ii) do not charge tuition; and
       (iii) serve only low-income students;
       (D) are enrolled in programs serving low-income adults; or
       (E) are Pell Grant recipients.
       (c) Minimum Amount.--
       (1) In general.--No distribution of funds provided to any 
     institution or consortium for a program year under this 
     section shall be for an amount that is less than $50,000.
       (2) Redistribution.--Any amounts that are not distributed 
     by reason of paragraph (1) shall be redistributed to eligible 
     institutions or consortia in accordance with the provisions 
     of this section.
       (d) Special Rule for Criminal Offenders.--Each State 
     educational agency shall distribute the funds reserved under 
     subsection (a)(1)(A) to 1 or more State corrections agencies 
     to enable the State corrections agencies to administer 
     vocational education programs for juvenile and adult criminal 
     offenders in correctional institutions in the State, 
     including correctional institutions operated by local 
     authorities.
       (e) Definition.--For the purposes of this section--
       (1) the term ``eligible institution'' means a postsecondary 
     educational institution, a local educational agency serving 
     adults, or an area vocational education school serving adults 
     that offers or will offer a program that seeks to receive 
     financial assistance under this section;
       (2) the term ``low-income'', used with respect to a person, 
     means a person who is determined under guidelines developed 
     by the Federal Partnership to be low-income, using the most 
     recent available data provided by the Bureau of the Census, 
     prior to the determination; and
       (3) the term ``Pell Grant recipient'' means a recipient of 
     financial aid under subpart 1 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

     SEC. 724. DISTRIBUTION FOR ADULT EDUCATION.

       (a) In General.--Except as provided in subsection (b)(3), 
     from the amount made available by a State educational agency 
     for 

[[Page S 13119]]
     adult education under section 721(b)(3)(B) for a program year, such 
     agency shall award grants, on a competitive basis, to local 
     educational agencies, correctional education agencies, 
     community-based organizations of demonstrated effectiveness, 
     volunteer literacy organizations, libraries, public or 
     private nonprofit agencies, postsecondary educational 
     institutions, public housing authorities, and other nonprofit 
     institutions that have the ability to provide literacy 
     services to adults and families, or consortia of agencies, 
     organizations, or institutions described in this subsection, 
     to enable such agencies, organizations, institutions, and 
     consortia to establish or expand adult education programs.
       (b) Grant Requirements.--
       (1) Access.--Each State educational agency making funds 
     available for any program year for adult education under 
     section 721(b)(3)(B) shall ensure that the entities described 
     in subsection (a) will be provided direct and equitable 
     access to all Federal funds provided under this section.
       (2) Considerations.--In awarding grants under this section, 
     the State educational agency shall consider--
       (A) the past effectiveness of applicants in providing 
     services (especially with respect to recruitment and 
     retention of educationally disadvantaged adults and the 
     learning gains demonstrated by such adults);
       (B) the degree to which an applicant will coordinate and 
     utilize other literacy and social services available in the 
     community; and
       (C) the commitment of the applicant to serve individuals in 
     the community who are most in need of literacy services.
       (3) Consortia.--A State educational agency may award a 
     grant under subsection (a) to a consortium that includes an 
     entity described in subsection (a) and a for-profit agency, 
     organization, or institution, if such agency, organization, 
     or institution--
       (A) can make a significant contribution to carrying out the 
     purposes of this title; and
       (B) enters into a contract with the entity described in 
     subsection (a) for the purpose of establishing or expanding 
     adult education programs.
       (c) Local Administrative Costs Limits.--
       (1) In general.--Except as provided in paragraph (2), of 
     the funds provided under this section by a State educational 
     agency to an agency, organization, institution, or consortium 
     described in subsection (a), at least 95 percent shall be 
     expended for provision of adult education instructional 
     activities. The remainder shall be used for planning, 
     administration, personnel development, and interagency 
     coordination.
       (2) Special rule.--In cases where the cost limits described 
     in paragraph (1) will be too restrictive to allow for 
     adequate planning, administration, personnel development, and 
     interagency coordination supported under this section, the 
     State educational agency shall negotiate with the agency, 
     organization, institution, or consortium described in 
     subsection (a) in order to determine an adequate level of 
     funds to be used for noninstructional purposes.

     SEC. 725. SPECIAL RULE FOR MINIMAL ALLOCATION.

       (a) General Authority.--For any program year for which a 
     minimal amount is made available by a State educational 
     agency for distribution under section 722 or 723 such agency 
     may, notwithstanding the provisions of section 722 or 723, 
     respectively, in order to make a more equitable distribution 
     of funds for programs serving the highest numbers of low-
     income individuals (as defined in section 723(e)), distribute 
     such minimal amount--
       (1) on a competitive basis; or
       (2) through any alternative method determined by the State 
     educational agency.
       (b) Minimal Amount.--For purposes of this section, the term 
     ``minimal amount'' means not more than 15 percent of the 
     total amount made available by the State educational agency 
     under section 721(b)(3)(A) for section 722 or 723, 
     respectively, for such program year.

     SEC. 726. REDISTRIBUTION.

       (a) In General.--In any program year that an entity 
     receiving financial assistance under section 722 or 723 does 
     not expend all of the amounts distributed to such entity for 
     such year under section 722 or 723, respectively, such entity 
     shall return any unexpended amounts to the State educational 
     agency for distribution under section 722 or 723, 
     respectively.
       (b) Redistribution of Amounts Returned Late in a Program 
     Year.--In any program year in which amounts are returned to 
     the State educational agency under subsection (a) for 
     programs described in section 722 or 723 and the State 
     educational agency is unable to redistribute such amounts 
     according to section 722 or 723, respectively, in time for 
     such amounts to be expended in such program year, the State 
     educational agency shall retain such amounts for distribution 
     in combination with amounts provided under such section for 
     the following program year.
     SEC. 727. LOCAL APPLICATION FOR WORKFORCE EDUCATION 
                   ACTIVITIES.

       (a) In General.--
       (1) In general.--Each eligible entity desiring financial 
     assistance under this subtitle for workforce education 
     activities shall submit an application to the State 
     educational agency at such time, in such manner and 
     accompanied by such information as such agency (in 
     consultation with such other educational entities as the 
     State educational agency determines to be appropriate) may 
     require. Such application shall cover the same period of time 
     as the period of time applicable to the State workforce 
     development plan.
       (2) Definition.--For the purpose of this section the term 
     ``eligible entity'' means an entity eligible for financial 
     assistance under section 722, 723, or 724 from a State 
     educational agency.
       (b) Contents.--Each application described in subsection (a) 
     shall, at a minimum--
       (1) describe how the workforce education activities 
     required under section 716(b), and other workforce education 
     activities, will be carried out with funds received under 
     this subtitle;
       (2) describe how the activities to be carried out relate to 
     meeting the State goals, and reaching the State benchmarks, 
     concerning workforce education activities;
       (3) describe how the activities to be carried out are an 
     integral part of the comprehensive efforts of the eligible 
     entity to improve education for all students and adults;
       (4) describe the process that will be used to independently 
     evaluate and continuously improve the performance of the 
     eligible entity; and
       (5) describe how the eligible entity will coordinate the 
     activities of the entity with the activities of the local 
     workforce development board, if any, in the substate area.

     SEC. 728. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE 
                   DEVELOPMENT BOARDS.

       (a) Local Agreements.--
       (1) In general.--After a Governor submits the State plan 
     described in section 714 to the Federal Partnership, the 
     Governor shall negotiate and enter into a local agreement 
     regarding the workforce employment activities, school-to-work 
     activities, and economic development activities (within a 
     State that is eligible to carry out such activities, as 
     described in subsection (c)) to be carried out in each 
     substate area in the State with local partnerships (or, where 
     established, local workforce development boards described in 
     subsection (b)).
       (2) Local partnerships.--
       (A) In general.--A local partnership referred to in 
     paragraph (1) shall be established by the local chief elected 
     official, in accordance with subparagraphs (B) and (C), and 
     shall consist of individuals representing business, industry, 
     and labor, local secondary schools (including individuals 
     representing teachers), local postsecondary education 
     institutions, local adult education providers, local elected 
     officials, rehabilitation agencies and organizations, 
     community-based organizations, and veterans, within the 
     appropriate substate area.
       (B) Multiple jurisdictions.--In any case in which there are 
     2 or more units of general local government in the substate 
     area involved, the chief elected official of each such unit 
     shall appoint members of the local partnership in accordance 
     with an agreement entered into by such chief elected 
     officials. In the absence of such an agreement, such 
     appointments shall be made by the Governor of the State 
     involved from the individuals nominated or recommended by the 
     chief elected officials.
       (C) Selection of business and industry representatives.--
     Individuals representing business and industry in the local 
     partnership shall be appointed by the chief elected official 
     from nominations submitted by business organizations in the 
     substate area involved. Such individuals shall reasonably 
     represent the industrial and demographic composition of the 
     business community. Where possible, at least 50 percent of 
     such business and industry representatives shall be 
     representatives of small business.
       (3) Business and industry involvement.--The business and 
     industry representatives shall have a lead role in the 
     design, management, and evaluation of the activities to be 
     carried out in the substate area under the local agreement.
       (4) Contents.--
       (A) State goals and state benchmarks.--Such an agreement 
     shall include a description of the manner in which funds 
     allocated to a substate area under this subtitle will be 
     spent to meet the State goals and reach the State benchmarks 
     in a manner that reflects local labor market conditions.
       (B) Collaboration.--The agreement shall also include 
     information that demonstrates the manner in which--
       (i) the Governor; and
       (ii) the local partnership (or, where established, the 
     local workforce development board);
     collaborated in reaching the agreement.
       (5) Failure to reach agreement.--If, after a reasonable 
     effort, the Governor is unable to enter into an agreement 
     with the local partnership (or, where established, the local 
     workforce development board), the Governor shall notify the 
     partnership or board, as appropriate, and provide the 
     partnership or board, as appropriate, with the opportunity to 
     comment, not later than 30 days after the date of the 
     notification, on the manner in which funds allocated to such 
     substate area will be spent to meet the State goals and reach 
     the State benchmarks.
       (6) Exception.--A State that indicates in the State plan 
     described in section 714 that the State will be treated as a 
     substate area for purposes of the application of this 
     subtitle shall not be subject to this subsection.
       (b) Local Workforce Development Boards.--

[[Page S 13120]]

       (1) In general.--Each State may facilitate the 
     establishment of local workforce development boards in each 
     substate area to set policy and provide oversight over the 
     workforce development activities in the substate area.
       (2) Membership.--
       (A) State criteria.--The Governor shall establish criteria 
     for use by local chief elected officials in each substate 
     area in the selection of members of the local workforce 
     development boards, in accordance with the requirements of 
     subparagraph (B).
       (B) Representation requirement.--Such criteria shall 
     require, at a minimum, that a local workforce development 
     board consist of--
       (i) representatives of business and industry in the 
     substate area, who shall constitute a majority of the board;
       (ii) representatives of labor, workers, and community-based 
     organizations, who shall constitute not less than 25 percent 
     of the members of the board;
       (iii) representatives of local secondary schools, 
     postsecondary education institutions, and adult education 
     providers;
       (iv) representatives of veterans; and
       (v) 1 or more individuals with disabilities, or their 
     representatives.
       (C) Chair.--Each local workforce development board shall 
     select a chairperson from among the members of the board who 
     are representatives of business and industry.
       (3) Conflict of interest.--No member of a local workforce 
     development board shall vote on a matter relating to the 
     provision of services by the member (or any organization that 
     the member directly represents) or vote on a matter that 
     would provide direct financial benefit to such member or the 
     immediate family of such member or engage in any other 
     activity determined by the Governor to constitute a conflict 
     of interest.
       (4) Functions.--The functions of the local workforce 
     development board shall include--
       (A) submitting to the Governor a single comprehensive 3-
     year strategic plan for workforce development activities in 
     the substate area that includes information--
       (i) identifying the workforce development needs of local 
     industries, students, jobseekers, and workers;
       (ii) identifying the workforce development activities to be 
     carried out in the substate area with funds received through 
     the allotment made to the State under section 712, to meet 
     the State goals and reach the State benchmarks; and
       (iii) identifying how the local workforce development board 
     will obtain the active and continuous participation of 
     business, industry, labor, and the education community in the 
     devel-
                                                                    ____

                           Amendment No. 2660

       On page 489, line 18, insert ``volunteers,'' after 
     ``teachers,''.
                                 ______


                        KERRY AMENDMENT NO. 2661

  Mr. MOYNIHAN (for Mr. Kerry) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 124, beginning on line 16, strike all through page 
     133, line 18, and insert the following:
     SEC. 201. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI 
                   BENEFITS.

       Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a)) is 
     amended--
       (1) in subparagraph (B)(i), by striking ``either'' and all 
     that follows through ``, or'' and inserting ``(I) a citizen; 
     (II) a noncitizen who is granted asylum under section 208 of 
     the Immigration and Nationality Act or whose deportation has 
     been withheld under section 243(h) of such Act for a period 
     of not more than 5 years after the date of arrival into the 
     United States; (III) a noncitizen who is admitted to the 
     United States as a refugee under section 207 of such Act for 
     not more than such 5-year period; (IV) a noncitizen, lawfully 
     present in any State (or any territory or possession of the 
     United States), who is a veteran (as defined in section 101 
     of title 38, United States Code) with a discharge 
     characterized as an honorable discharge and not on account of 
     alienage or who is the spouse or unmarried dependent child of 
     such veteran; or (V) a noncitizen who has worked sufficient 
     calendar quarters of coverage to be a fully insured 
     individual for benefits under title II, or''; and
       (2) by adding at the end the following new flush sentence:
     ``For purposes of subparagraph (B)(i)(IV), the determination 
     of whether a noncitizen is lawfully present in the United 
     States shall be made in accordance with regulations of the 
     Attorney General. A noncitizen shall not be considered to be 
     lawfully present in the United States for purposes of this 
     title merely because the noncitizen may be considered to be 
     permanently residing in the United States under color of law 
     for purposes of any particular program.''.
     SEC. 202. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS 
                   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED 
                   RESIDENCE IN ORDER TO OBTAIN BENEFITS 
                   SIMULTANEOUSLY IN 2 OR MORE STATES.

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

     SEC. 203. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND 
                   PROBATION AND PAROLE VIOLATORS.

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

     SEC. 204. EFFECTIVE DATES; APPLICATION TO CURRENT RECIPIENTS.

       (a) Section 201.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by section 201 shall apply to 
     applicants for benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.
       (2) Application to current recipients.--
       (A) Application and notice.--Notwithstanding any other 
     provision of law, in the case of an individual who is 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     would terminate by reason of the amendments made by section 
     201, such amendments shall apply with respect to the benefits 
     of such individual for months beginning on or after January 
     1, 1997, and the Commissioner of Social Security shall so 
     notify the individual not later than 90 days after the date 
     of the enactment of this Act.
       (B) Reapplication.--
       (i) In general.--Not later than 120 days after the date of 
     the enactment of this Act, each individual notified pursuant 
     to subparagraph (A) who desires to reapply for benefits under 
     title XVI of the Social Security Act, as amended by this 
     title, shall reapply to the Commissioner of Social Security.
       (ii) Determination of eligibility.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall determine the eligibility of each 
     individual who reapplies for benefits under clause (i) 
     pursuant to the procedures of such title.
       (b) Other Amendments.--The amendments made by sections 202 
     and 203 shall take effect on the date of the enactment of 
     this Act.
               Subtitle B--Benefits for Disabled Children

     SEC. 211. DEFINITION AND ELIGIBILITY RULES.

       (a) Definition of Childhood Disability.--Section 1614(a)(3) 
     (42 U.S.C. 1382c(a)(3)) is amended--
                                 ______


                        KERRY AMENDMENT NO. 2662

  Mr. MOYNIHAN (for Mr. Kerry) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 122, between lines 11 and 12, insert:

     SEC. 110. DEMONSTRATION PROJECTS FOR SCHOOL UTILIZATION.

       (a) Findings.--It is the goal of the United States that 
     children grow to be self-sufficient citizens, that parents 
     equip themselves to provide the best parental care and 
     guidance to their children, and that welfare dependency, 
     crime, and the deterioration of neighborhoods be eliminated. 
     It will contribute to these goals to increase the level of 
     parents' involvement in their children's 

[[Page S 13121]]
     school and other activities, to increase the amount of time parents 
     spend with or in close proximity to their children, to 
     increase the portion of the day and night when children are 
     in a safe and healthy environment and not exposed to 
     unfavorable influences, to increase the opportunities for 
     children to participate in safe, healthy, and enjoyable 
     extra-curricular and organized developmental and recreational 
     activities, and to make more accessible the opportunities for 
     parents, especially those dependent on public assistance, to 
     increase and enhance their parenting and living skills. All 
     of these contributions can be facilitated by establishing the 
     neighborhood public school as a focal point for such 
     activities and by extending the hours of the day in which its 
     facilities are available for such activities.
       (b) Grants.--The Secretary of Education (hereafter in this 
     section referred to as the ``Secretary'') shall make 
     demonstration grants as provided in subsection (c) to States 
     to enable them to increase the number of hours during each 
     day when existing public school facilities are available for 
     use for the purposes set forth in subsection (d).
       (c) Selection of States.--The Secretary shall make grants 
     to not more than 5 States for demonstration projects in 
     accordance with this section. Each State shall select the 
     number and location of schools based on the amount of funds 
     it deems necessary for a school properly to achieve the goals 
     of this program. The schools selected must have a significant 
     percentage of students receiving benefits under part A of 
     title IV of the Social Security Act. No more than 2 percent 
     of the grant to any State shall be used for administrative 
     expenses of any kind by any entity (except that none of the 
     activities set forth in paragraphs (1) and (2) of subsection 
     (d) shall be considered an administrative activity the 
     expenses for which are limited by this subsection).
       (d) Use of Funds.--The grants made under subsection (b), in 
     order that school facilities can be more fully utilized, 
     shall be used to provide funding for, among other things--
       (1) extending the length of the school day, expanding the 
     scope of student programs offered before and after pre-
     existing school hours, enabling volunteers and parents or 
     professionals paid from other sources to teach, tutor, coach, 
     organize, advise, or monitor students before and after pre-
     existing school hours, and providing security, supplies, 
     utilities, and janitorial services before and after pre-
     existing school hours for these programs,
       (2) making the school facilities available for community 
     and neighborhood clubs, civic associations
      and organizations, Boy and Girl Scouts and similar 
     organizations, adult education classes, organized sports, 
     parental education classes, and other educational, 
     recreational, and social activities.
       None of the funds provided under this section can be used 
     to supplant funds already provided to a school facility for 
     services, equipment, personnel, or utilities nor can funds be 
     used to pay costs associated with operating school facilities 
     during hours those facilities are already available for 
     student or community use.
       (e) Applications.--
       (1) In general.--The Governor of each State desiring to 
     conduct a demonstration project under this section shall 
     prepare and submit to the Secretary an application in such 
     manner and containing such information as the Secretary may 
     require. The Secretary shall actively encourage States to 
     submit such applications.
       (2) Approval.--The Secretary shall consider all 
     applications received from States desiring to conduct 
     demonstration projects under this section and shall approve 
     such applications in a number of States to be determined by 
     the Secretary (not to exceed 5), taking into account the 
     overall funding levels available under this section.
       (f) Duration.--A demonstration project under this section 
     shall be conducted for not more than 4 years plus an 
     additional time period of up to 12 months for final 
     evaluation and reporting. The Secretary may terminate a 
     project if the Secretary determines that the State conducting 
     the project is not in substantial compliance with the terms 
     of the application approved by the Secretary under this 
     section.
       (g) Evaluation Plan.--
       (1) Standards.--Not later than 3 months after the date of 
     the enactment of this section, the Secretary shall develop 
     standards for evaluating the effectiveness of each 
     demonstration project in contributing toward meeting the 
     objectives set forth in subsection (a), which shall include 
     the requirement that an independent expert entity selected by 
     the Secretary provide an evaluation of all demonstration 
     projects, which evaluations shall be included in the 
     appropriate State's annual and final reports to the Secretary 
     under subsection (h)(1).
       (2) Submission of plan.--Each State conducting a 
     demonstration project under this section shall submit an 
     evaluation plan (meeting the standards developed by the 
     Secretary under paragraph (1)) to the Secretary not later 
     than 90 days after the State is notified of the Secretary's 
     approval for such project. A State shall not receive any 
     Federal funds for the operation of the demonstration project 
     until the Secretary approves such evaluation plan.
       (h) Reports.--
       (1) State.--A State that conducts a demonstration project 
     under this section shall prepare and submit to the Secretary 
     annual and final reports in accordance with the State's 
     evaluation plan under subsection (g)(2) for such 
     demonstration project.
       (2) Secretary.--The Secretary shall prepare and submit to 
     the Congress annual reports concerning each demonstration 
     project under this Act.
       (i) Authorizations.--
       (1) Grants.--There are authorized to be appropriated for 
     grants under subsection (b) for each of fiscal years 1996, 
     1997, 1998, 1999, and 2000, $10,000,000.
       (2) Administration.--There are authorized to be 
     appropriated $1,000,000 for each of fiscal years 1996, 1997, 
     1998, 1999, and 2000 for the administration of this section 
     by the Secretary, including development of standards and 
     evaluation of all demonstration projects by an independent 
     expert entity under subsection (g)(1).
                                 ______


                    KERRY AMENDMENTS NOS. 2663-2664

  Mr. MOYNIHAN (for Mr. Kerry) proposed two amendments to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2663

       On page 122, between lines 11 and 12, insert:

     SEC. 110. DEMONSTRATION PROJECTS FOR SCHOOL UTILIZATION.

       (a) Findings.--It is the goal of the United States that 
     children grow to be self-sufficient citizens, that parents 
     equip themselves to provide the best parental care and 
     guidance to their children, and that welfare dependency, 
     crime, and the deterioration of neighborhoods be eliminated. 
     It will contribute to these goals to increase the level of 
     parents' involvement in their children's school and other 
     activities, to increase the amount of time parents spend with 
     or in close proximity to their children, to increase the 
     portion of the day and night when children are in a safe and 
     healthy environment and not exposed to unfavorable 
     influences, to increase the opportunities for children to 
     participate in safe, healthy, and enjoyable extra-curricular 
     and organized developmental and recreational activities, and 
     to make more accessible the opportunities for parents, 
     especially those dependent on public assistance, to increase 
     and enhance their parenting and living skills. All of these 
     contributions can be facilitated by establishing the 
     neighborhood public school as a focal point for such 
     activities and by extending the hours of the day in which its 
     facilities are available for such activities.
       (b) Grants.--The Secretary of Education (hereafter in this 
     section referred to as the ``Secretary'') shall make 
     demonstration grants as provided in subsection (c) to States 
     to enable them to increase the number of hours during each 
     day when existing public school facilities are available for 
     use for the purposes set forth in subsection (d).
       (c) Selection of States.--The Secretary shall make grants 
     to not more than 5 States for demonstration projects in 
     accordance with this section. Each State shall select the 
     number and location of schools based on the amount of funds 
     it deems necessary for a school properly to achieve the goals 
     of this program. The schools selected must have a significant 
     percentage of students receiving benefits under part A of 
     title IV of the Social Security Act. No more than 2 percent 
     of the grant to any State shall be used for administrative 
     expenses of any kind by any entity (except that none of the 
     activities set forth in paragraphs (1) and (2) of subsection 
     (d) shall be considered an administrative activity the 
     expenses for which are limited by this subsection).
       (d) Use of Funds.--The grants made under subsection (b), in 
     order that school facilities can be more fully utilized, 
     shall be used to provide funding for, among other things--
       (1) extending the length of the school day, expanding the 
     scope of student programs offered before and after pre-
     existing school hours, enabling volunteers and parents or 
     professionals paid from other sources to teach, tutor, coach, 
     organize, advise, or monitor students before and after pre-
     existing school hours, and providing security, supplies, 
     utilities, and janitorial services before and after pre-
     existing school hours for these programs,
       (2) making the school facilities available for community 
     and neighborhood clubs, civic associations and organizations, 
     Boy and Girl Scouts and similar organizations, adult 
     education classes, organized sports, parental education 
     classes, and other educational, recreational, and social 
     activities.

     None of the funds provided under this section can be used to 
     supplant funds already provided to a school facility for 
     services, equipment, personnel, or utilities nor can funds be 
     used to pay costs associated with operating school facilities 
     during hours those facilities are already available for 
     student or community use.
       (e) Applications.--
       (1) In general.--The Governor of each State desiring to 
     conduct a demonstration project under this section shall 
     prepare and submit to the Secretary an application in such 
     manner and containing such information as the Secretary may 
     require. The Secretary shall actively encourage States to 
     submit such applications.
       (2) Approval.--The Secretary shall consider all 
     applications received from States desiring to conduct 
     demonstration projects under this section and shall approve 
     such applications in a number of States to be determined by 
     the Secretary (not to exceed 5), 

[[Page S 13122]]
     taking into account the overall funding levels available under this 
     section.
       (f) Duration.--A demonstration project under this section 
     shall be conducted for not more than 4 years plus an 
     additional time period of up to 12 months for final 
     evaluation and reporting. The Secretary may terminate a 
     project if the Secretary determines that the State conducting 
     the project is not in substantial compliance with the terms 
     of the application approved by the Secretary under this 
     section.
       (g) Evaluation Plan.--
       (1) Standards.--Not later than 3 months after the date of 
     the enactment of this section, the Secretary shall develop 
     standards for evaluating the effectiveness of each 
     demonstration project in contributing toward meeting the 
     objectives set forth in subsection (a), which shall include 
     the requirement that an independent expert entity selected by 
     the Secretary provide an evaluation of all demonstration 
     projects, which evaluations shall be included in the 
     appropriate State's annual and final reports to the Secretary 
     under subsection (h)(1).
       (2) Submission of plan.--Each State conducting a 
     demonstration project under this section shall submit an 
     evaluation plan (meeting the standards developed by the 
     Secretary under paragraph (1)) to the Secretary not later 
     than 90 days after the State is notified of the Secretary's 
     approval for such project. A State shall not receive any 
     Federal funds for the operation of the demonstration project 
     until the Secretary approves such evaluation plan.
       (h) Reports.--
       (1) State.--A State that conducts a demonstration project 
     under this section shall prepare and submit to the Secretary 
     annual and final reports in accordance with the State's 
     evaluation plan under subsection (g)(2) for such 
     demonstration project.
       (2) Secretary.--The Secretary shall prepare and submit to 
     the Congress annual reports concerning each demonstration 
     project under this Act.
       (i) Authorizations.--
       (1) Grants.--There are authorized to be appropriated for 
     grants under subsection (b) for each of fiscal years 1996, 
     1997, 1998, 1999, and 2000, $10,000,000.
       (2) Administration.--There are authorized to be 
     appropriated $1,000,000 for each of fiscal years 1996, 1997, 
     1998, 1999, and 2000 for the administration of this section 
     by the Secretary, including development of standards and 
     evaluation of all demonstration projects by an independent 
     expert entity under subsection (g)(1).

     SEC. 111. STUDY OF SCHOOLS WITH STUDENTS FAILING TO ENTER 
                   WORKFORCE.

       (a) Study.--The Secretary of Education shall conduct a 
     study to--
       (1) determine which high schools have the highest 
     proportion of students, both those who graduate and those who 
     drop out before graduating, who never reach the workforce, 
     and establish the reasons for such disproportionate failure, 
     and
       (2) measure the educational effectiveness of existing 
     innovative educational mechanisms, including charter schools, 
     extended school days, the community schools program, and 
     child care programs, in increasing the proportion of a 
     school's students who become a part of the workforce.
       (b) Report.--The Secretary shall, not later than January 1, 
     1997, report to the Congress the results of the study 
     conducted under subsection (a), including recommendations 
     with respect to measures which prove effective in assisting 
     schools in preparing students for the workforce.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated $7,000,000 to carry out the purposes of 
     this section.

     SEC. 112. SCHOOL CARE FOR CHILDREN OF INDIVIDUALS REQUIRED TO 
                   WORK.

       Notwithstanding any other provision of, or amendment made 
     by, this title, if a State requires an individual receiving 
     assistance under a State program funded under part A of title 
     IV to engage in work activities, the State shall provide 
     adult-supervised care to each school-age child of the 
     individual before and after school during the hours during 
     which the individual is working and in transit between home 
     and work. Such care shall be provided at the location where 
     each child attends school. Comparable activities shall be 
     provided during the same daily time periods for all days 
     during which the individual is working but school is not in 
     session.

     SEC. 113. PARENTAL RESPONSIBILITY CONTRACTS.

       (a) Assessment.--Notwithstanding any other provision of, or 
     amendment made by, this title, each State to which a grant is 
     made under section 403 of the Social Security Act shall 
     provide that the State agency, through a case manager, shall 
     make an initial assessment of the education level, parenting 
     skills, and history of parenting activities and involvement 
     of each parent who is applying for financial assistance under 
     the plan.
       (b) Parental Responsibility Contracts.--On the basis of the 
     assessment made under subsection (a) with respect to each 
     parent applicant, the case manager, in consultation with the 
     parent applicant (hereafter in this subsection referred to as 
     the ``client''), and, if possible, the client's spouse if one 
     is present, shall develop a parental responsibility contract 
     for the client, which meets the following requirements:
       (1) Sets forth the obligations of the client, including all 
     of the following the case manager believes are within the 
     ability and capacity of the client, are not incompatible with 
     the employment or school activities of the client, and are 
     not inconsistent with each other in the client's case or with 
     the well being of the client's children:
       (A) Attend school, if necessary, and maintain certain 
     grades and attendance.
       (B) Keep school-age children of the client in school.
       (C) Immunize children of the client.
       (D) Attend parenting and money management classes.
       (E) Participate in parent and teachers associations and 
     other activities intended to involve parents in their 
     children's school activities and in the affairs of their 
     children's school.
       (F) Attend school activities with their children where 
     attendance or participation by both children and parents is 
     appropriate.
       (G) Undergo appropriate substance abuse treatment 
     counseling.
       (H) Any other appropriate activity, at the option of the 
     State.
       (2) 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.
       (c) Penalties for Noncompliance With Parental 
     Responsibility 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 non-compliance.--The State plan shall provide that 
     the amount of assistance otherwise payable under this part to 
     a family that includes a client who, with respect to a 
     parental responsibility 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 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 assistance under this part.
       (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 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. 114. AMENDMENT TO GOALS 2000: EDUCATE AMERICA ACT.

       Section 102 of the Goals 2000: Educate America Act (20 
     U.S.C. 5812) is amended by adding at the end the following 
     new paragraph:
       ``(9) Self-sufficiency.--By the year 2000, fewer Americans 
     will need to rely on welfare benefits because--
       ``(A) schools will place greater emphasis on equipping all 
     students to achieve economic self-sufficiency in adulthood, 
     regardless of whether they pursue higher education;
       ``(B) schools will not compromise educational standards in 
     order to graduate students who have not achieved the 
     recognized educational competency levels applicable to high 
     school graduates; and
       ``(C) schools will focus more attention and resources on 
     ensuring that children from families who receive public 
     assistance, or are at risk of needing public assistance, make 
     expected scholastic progress throughout their elementary and 
     secondary schooling or are provided with special assistance 
     and directed to remedial programs and activities designed to 
     return them to expected levels of progress.''
                                                                    ____

                           Amendment No. 2664

       On page 122, between lines 11 and 12, insert:

     SEC. 110. PARENTAL RESPONSIBILITY CONTRACTS.

       (a) Assessment.--Notwithstanding any other provision of, or 
     amendment made by, this title, each State to which a grant is 
     made under section 403 of the Social Security Act shall 
     provide that the State agency, through a case manager, shall 
     make an initial assessment of the education level, parenting 
     skills, and history of parenting activities and involvement 
     of each parent who is applying for financial assistance under 
     the plan.
       (b) Parental Responsibility Contracts.--On the basis of the 
     assessment made under subsection (a) with respect to each 
     parent applicant, the case manager, in consultation with the 
     parent applicant (hereafter in this subsection referred to as 
     the ``client'') and, if possible, the client's spouse if one 
     is present, shall develop a parental responsibility contract 
     for the client, which meets the following requirements:

[[Page S 13123]]

       (1) Sets forth the obligations of the client, including all 
     of the following the case manager believes are within the 
     ability and capacity of the client, are not incompatible with 
     the employment or school activities of the client, and are 
     not inconsistent with each other in the client's case or with 
     the well being of the client's children:
       (A) Attend school, if necessary, and maintain certain 
     grades and attendance.
       (B) Keep school-age children of the client in school.
       (C) Immunize children of the client.
       (D) Attend parenting and money management classes.
       (E) Participate in parent and teacher associations and 
     other activities intended to involve parents in their 
     children's school activities and in the affairs of their 
     children's school.
       (F) Attend school activities with their children where 
     attendance or participation by both children and parents is 
     appropriate.
       (G) Undergo appropriate substance abuse treatment 
     counseling.
       (H) Any other appropriate activity, at the option of the 
     State.
       (2) 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.
       (c) Penalties for Noncompliance With Parental 
     Responsibility 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 non-compliance.--The State plan shall provide that 
     the amount of assistance otherwise payable under this part to 
     a family that includes a client who, with respect to a 
     parental responsibility 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 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 assistance under this part.
       (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 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).
                                 ______


                       HARKIN AMENDMENT NO. 2665

  Mr. MOYNIHAN (for Mr. Harkin) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Beginning on page 10, line 10, strike all through page 77, 
     line 21, and insert the following:
       (b) Reduction in Individual Tax Rates.--Section 1 of the 
     Internal Revenue Code of 1986 (relating to tax imposed) is 
     amended by adding at the end the following new subsection:
       ``(i) Adjustments in Tax Tables To Reflect Repeal of 
     Certain Programs.--
       ``(1) In general.--Not later than December 15 of 1995, and 
     each subsequent calendar year, the Secretary shall prescribe 
     tables which shall apply in lieu of the tables contained in 
     subsections (a), (b), (c), (d), and (e) (after the 
     application of subsection (f)) with respect to taxable years 
     beginning in the succeeding calendar year.
       ``(2) Method of prescribing tables.--The tables under 
     paragraph (1) shall be prescribed by reducing the rates of 
     tax proportionately such that the resulting loss of revenue 
     for such calendar year equals the estimated total 
     expenditures for the fiscal year in which such calendar year 
     begins for part A of title IV of the Social Security Act as 
     proposed to be added by Senate amendment numbered 2280 (as in 
     effect on September 8, 1995).
       Beginning on page 83, line 16, strike through page 86, line 
     3.
       Beginning on page 87, line 6, strike through page 120, line 
     8.
       Beginning on page 122, line 12, strike through page 124, 
     line 12.
                                 ______


             BREAUX (AND OTHERS) AMENDMENTS NOS. 2666-2667

  Mr. MOYNIHAN (for Mr. Breaux, Mr. Kennedy, Mr. Pell, and Mr. Daschle) 
proposed two amendments to amendment No. 2280 proposed by Mr. Dole to 
the bill H.R. 4, supra, as follows:
                           Amendment No. 2666
       In section 702(a)(8), strike ``private sector leadership in 
     designing'' and insert ``private sector leadership and the 
     diverse and changing demands of employers and workers in 
     designing''.
       In section 702(b)(1), insert before the semicolon the 
     following: ``and to respond more effectively to changing 
     local labor markets''.
       In section 703(29), insert before the period the following: 
     ``and designed to ensure that local labor and education and 
     training markets are responsive to the diverse and changing 
     demands of employers and workers''.
       In section 716(a)(2)(B)(viii), strike ``; and'' and insert 
     a semicolon.
       In section 716(a)(2)(B)(ix), strike the period and insert 
     ``; and''.
       At the end of section 716(a)(2)(B), add the following:
       (x) establishment of such system of individual skill grants 
     as will enable dislocated workers who are unable to find new 
     jobs through the core services described in clauses (i) 
     through (ix), and who are unable to obtain other grant 
     assistance (such as a Pell Grant), to learn new skills to 
     find new jobs.
       In section 716(a)(9), strike ``provided under this 
     subtitle'' and insert ``provided under this subtitle for 
     persons age 18 or older who are unable to obtain other 
     assistance (such as a Pell Grant)''.
       At the end of section 731(b), add the following new 
     paragraph:
       (3) Responsiveness to market demand.--Each statewide system 
     supported by an allotment under section 712 shall be designed 
     to meet the goal of ensuring that the local labor and 
     education and training markets in the State are responsive to 
     the diverse and changing demands of employers and workers.
       At the end of section 731(c), add the following:
       (8) Responsiveness to market demand.--To be eligible to 
     receive an allotment under section 712, a State shall 
     develop, in accordance with paragraph (5), and identify in 
     the State plan of the State, proposed quantifiable benchmarks 
     to measure the statewide progress of the State in meeting the 
     goal described in subsection (b)(3).
       In section 732(a)(1)(A), strike ``; or'' and insert a 
     semicolon.
       In section 732(a)(1)(B), strike the period and insert ``; 
     or''.
       At the end of section 732(a)(1), add the following:
       (C) demonstrates to the Federal Partnership that the State 
     has made a substantial increase in the number of dislocated 
     workers placed in unsubsidized employment, the reemployment 
     wage rates of the workers, or the speed of reemployment of 
     the workers through the use of training vouchers or other 
     continually improving systems that respond effectively to the 
     diverse and changing demands of local employers and workers.
                                                                    ____

                           Amendment No. 2667

       Beginning on page 345, strike line 14 and all that follows 
     through page 370, line 19, and insert the following:
       (vii) the steps the State will take over the 3 years 
     covered by the plan to comply with the requirements specified 
     in section 716(a)(3) relating to the provision of education 
     and training services;
       (C) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce employment activities;
       (D) describing the workforce employment activities to be 
     carried out with funds received through the allotment;
       (E) describing the steps that the State will take over the 
     3 years covered by the plan to establish a statewide 
     comprehensive labor market information system described in 
     section 773(c) that will be utilized by all the providers of 
     one-stop delivery of core services described in section 
     716(a)(2), providers of other workforce employment 
     activities, and providers of workforce education activities, 
     in the State;
       (F) describing the steps that the State will take over the 
     3 years covered by the plan to establish a job placement 
     accountability system described in section 731(d);
       (G) describing the process the State will use to approve 
     all providers of workforce employment activities through the 
     statewide system; and
       (H)(i) describing the steps that the State will take to 
     segregate the amount allotted to the State from funds made 
     available under section 901(c)(1)(A) of the Social Security 
     Act (42 U.S.C. 1101(c)(1)(A)) from the remainder of the 
     portion described in section 713(a)(1); and
       (ii) describing how the State will use the amount allotted 
     to the State from funds made available under such section 
     901(c)(1)(A) to carry out the required activities described 
     in clauses (ii) through (v) of section 716(a)(2)(B) and 
     section 773;
       (3) with respect to workforce education activities, 
     information--
       (A) describing how funds received through the allotment 
     will be allocated among--
       (i) secondary school vocational education, or postsecondary 
     and adult vocational education, or both; and
       (ii) adult education;
       (B) identifying performance indicators that relate to the 
     State goals, and to the State benchmarks, concerning 
     workforce education activities;
       (C) describing the workforce education activities that will 
     be carried out with funds received through the allotment;

[[Page S 13124]]

       (D) describing how the State will address the adult 
     education needs of the State;
       (E) describing how the State will disaggregate data 
     relating to at-risk youth in order to adequately measure the 
     progress of at-risk youth toward accomplishing the results 
     measured by the State goals, and the State benchmarks;
       (F) describing how the State will adequately address the 
     needs of both at-risk youth who are in school, and out-of-
     school youth, in alternative education programs that teach to 
     the same challenging academic, occupational, and skill 
     proficiencies as are provided for in-school youth;
       (G) describing how the workforce education activities 
     described in the State plan and the State allocation of funds 
     received through the allotment for such activities are an 
     integral part of comprehensive efforts of the State to 
     improve education for all students and adults;
       (H) describing how the State will annually evaluate the 
     effectiveness of the State plan with respect to workforce 
     education activities;
       (I) describing how the State will address the professional 
     development needs of the State with respect to workforce 
     education activities;
       (J) describing how the State will provide local educational 
     agencies in the State with technical assistance; and
       (K) describing how the State will assess the progress of 
     the State in implementing student performance measures.
       (d) Procedure for Development of Part of Plan Relating to 
     Strategic Plan.--
       (1) Description of development.--The part of the State plan 
     relating to the strategic plan shall include a description of 
     the manner in which--
       (A) the Governor;
       (B) the State educational agency;
       (C) representatives of business and industry, including 
     representatives of key industry sectors, and of small- and 
     medium-size and large employers, in the State;
       (D) representatives of labor and workers;
       (E) local elected officials from throughout the State;
       (F) the State agency officials responsible for vocational 
     education;
       (G) the State agency officials responsible for 
     postsecondary education;
       (H) the State agency officials responsible for adult 
     education;
       (I) the State agency officials responsible for vocational 
     rehabilitation;
       (J) such other State agency officials, including officials 
     responsible for economic development and employment, as the 
     Governor may designate;
       (K) the representative of the Veterans' Employment and 
     Training Service assigned to the State under section 4103 of 
     title 38, United States Code; and
       (L) other appropriate officials, including members of the 
     State workforce development board described in section 715, 
     if the State has established such a board;
     collaborated in the development of such part of the plan.
       (2) Failure to obtain support.--If, after a reasonable 
     effort, the Governor is unable to obtain the support of the 
     individuals and entities described in paragraph (1) for the 
     strategic plan the Governor shall--
       (A) provide such individuals and entities with copies of 
     the strategic plan;
       (B) allow such individuals and entities to submit to the 
     Governor, not later than the end of the 30-day period 
     beginning on the date on which the Governor provides such 
     individuals and entities with copies of such plan under 
     subparagraph (A), comments on such plan; and
       (C) include any such comments in such plan.
       (e) Approval.--The Secretary of Labor and the Secretary of 
     Education, acting jointly on the advice of the Federal 
     Partnership, shall approve a State plan if--
       (1) the Federal Partnership determines that the plan 
     contains the information described in subsection (c);
       (2) the Federal Partnership determines that the State has 
     prepared the plan in accordance with the requirements of this 
     section, including the requirements relating to development 
     of any part of the plan; and
       (3) the State benchmarks for the State have been negotiated 
     and approved in accordance with section 731(c).
       (f) No Entitlement to a Service.--Nothing in this title 
     shall be construed to provide any individual with an 
     entitlement to a service provided under this title.

     SEC. 715. STATE WORKFORCE DEVELOPMENT BOARDS.

       (a) Establishment.--A Governor of a State that receives an 
     allotment under section 712 may establish a State workforce 
     development board--
       (1) on which a majority of the members are representatives 
     of business and industry;
       (2) on which not less than 25 percent of the members shall 
     be representatives of labor, workers, and community-based 
     organizations;
       (3) that shall include representatives of veterans;
       (4) that shall include a representative of the State 
     educational agency and a representative from the State agency 
     responsible for vocational rehabilitation;
       (5) that may include any other individual or entity that 
     participates in the collaboration described in section 
     714(d)(1); and
       (6) that may include any other individual or entity the 
     Governor may designate.
       (b) Chairperson.--The State workforce development board 
     shall select a chairperson from among the members of the 
     board who are representatives of business and industry.
       (c) Functions.--The functions of the State workforce 
     development board shall include--
       (1) advising the Governor on the development of the 
     statewide system, the State plan described in section 714, 
     and the State goals and State benchmarks;
       (2) assisting in the development of specific performance 
     indicators to measure progress toward meeting the State goals 
     and reaching the State benchmarks and providing guidance on 
     how such progress may be improved;
       (3) serving as a link between business, industry, labor, 
     and the statewide system;
       (4) assisting the Governor in preparing the annual report 
     to the Federal Partnership regarding progress in reaching the 
     State benchmarks, as described in section 731(a);
       (5) receiving and commenting on the State plan developed 
     under section 101 of the Rehabilitation Act of 1973 (29 
     U.S.C. 721);
       (6) assisting the Governor in developing the statewide 
     comprehensive labor market information system described in 
     section 773(c) to provide information that will be utilized 
     by all the providers of one-stop delivery of core services 
     described in section 716(a)(2), providers of other workforce 
     employment activities, and providers of workforce education 
     activities, in the State; and
       (7) assisting in the monitoring and continuous improvement 
     of the performance of the statewide system, including 
     evaluation of the effectiveness of workforce development 
     activities funded under this title.
     SEC. 716. USE OF FUNDS.

       (a) Workforce Employment Activities.--
       (1) In general.--Funds made available to a State under this 
     subtitle to carry out workforce employment activities through 
     a statewide system--
       (A) shall be used to carry out the activities described in 
     paragraphs (2), (3), (4), and (5); and
       (B) may be used to carry out the activities described in 
     paragraphs (6), (7), (8), and (9).
       (2) One-stop delivery of core services.--
       (A) Access.--The State shall use a portion of the funds 
     described in paragraph (1) to establish a means of providing 
     access to the statewide system through core services 
     described in subparagraph (B) available--
       (i) through multiple, connected access points, linked 
     electronically or otherwise;
       (ii) through a network that assures participants that such 
     core services will be available regardless of where the 
     participants initially enter the statewide system;
       (iii) at not less than 1 physical location in each substate 
     area of the State; or
       (iv) through some combination of the options described in 
     clauses (i), (ii), and (iii).
       (B) Core services.--The core services referred to in 
     subparagraph (A) shall, at a minimum, include--
       (i) outreach, intake, and orientation to the information 
     and other services available through one-stop delivery of 
     core services described in this subparagraph;
       (ii) initial assessment of skill levels, aptitudes, 
     abilities, and supportive service needs;
       (iii) job search and placement assistance and, where 
     appropriate, career counseling;
       (iv) customized screening and referral of qualified 
     applicants to employment;
       (v) provision of accurate information relating to local 
     labor market conditions, including employment profiles of 
     growth industries and occupations within a substate area, the 
     educational and skills requirements of jobs in the industries 
     and occupations, and the earnings potential of the jobs;
       (vi) provision of accurate information relating to the 
     quality and availability of other workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation program activities;
       (vii) provision of information regarding how the substate 
     area is performing on the State benchmarks;
       (viii) provision of initial eligibility information on 
     forms of public financial assistance that may be available in 
     order to enable persons to participate in workforce 
     employment activities, workforce education activities, or 
     vocational rehabilitation program activities; and
       (ix) referral to other appropriate workforce employment 
     activities, workforce education activities, and vocational 
     rehabilitation employment activities.
       (3) Education and training services.--
       (A) In general.--The State shall use a portion of the funds 
     described in paragraph (1) to provide education and training 
     services in accordance with this paragraph to adults, each of 
     whom--
       (i) is unable to obtain employment through core services 
     described in paragraph (2)(B);
       (ii) needs the education and training services in order to 
     obtain employment, as determined through--

       (I) an initial assessment under paragraph (2)(B)(ii); or
       (II) a comprehensive and specialized assessment; and

       (iii) is unable to obtain other grant assistance, such as a 
     Pell Grant provided under title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070 et seq.), for such services.
       (B) Types of services.--Such education and training 
     services may include the following:
       (i) Occupational skills training, including training for 
     nontraditional employment.
       (ii) On-the-job training.
       (iii) Services that combine workplace training with related 
     instruction.
       (iv) Skill upgrading and retraining.

[[Page S 13125]]

       (v) Entrepreneurial training.
       (vi) Preemployment training to enhance basic workplace 
     competencies, provided to individuals who are determined 
     under guidelines developed by the Federal Partnership to be 
     low-income.
       (vii) Customized training conducted with a commitment by an 
     employer or group of employers to employ an individual on 
     successful completion of the training.
       (C) Use of vouchers for dislocated workers.--
       (i) In general.--Except as provided in clauses (ii) and 
     (iii), education and training services described in 
     subparagraph (B) shall be provided to dislocated workers 
     through a system of vouchers that is administered through 
     one-stop delivery described in paragraph (2).
       (ii) Exceptions.--Education and training services described 
     in subparagraph (B) may be provided to dislocated workers in 
     a substate area through a contract for services in lieu of a 
     voucher if--

       (I) the local partnership described in section 728(a), or 
     local workforce development board described in section 
     728(b), for the substate area determines there are an 
     insufficient number of eligible entities in the substate area 
     to effectively provide the education and training services 
     through a voucher system;
       (II) the local partnership or local workforce development 
     board determines that the eligible entities in the substate 
     area are unable to effectively provide the education and 
     training services to special participant populations; or
       (III) the local partnership or local workforce development 
     board decides that the education and training services shall 
     be provided through a direct contract with a community-based 
     organization serving special participant populations.

       (iii) Prohibition on provision of on-the-job training 
     through vouchers.--On-the-job training provided under this 
     paragraph shall not be provided through a voucher system.
       (D) Eligibility of education and training service 
     providers.--
       (i) Eligibility requirements.--An entity shall be eligible 
     to provide the education and training services through a 
     program carried out under this paragraph and receive funds 
     from the portion described in subparagraph (A) through the 
     receipt of vouchers if--

       (I)(aa) the entity is eligible to carry out the program 
     under title IV of the Higher Education Act of 1965; or
       (bb) the entity is eligible to carry out the program under 
     an alternative eligibility procedure established by the 
     Governor of the State that includes criteria for minimum 
     acceptable levels of performance; and
       (II) the entity submits accurate performance-based 
     information required pursuant to clause (ii), except that 
     entities described in subclause (I)(aa) shall only be 
     required to provide information for programs other than 
     programs leading to a degree.

       (ii) Performance-based information.--The State shall 
     identify performance-based information that is to be 
     submitted by an entity for the entity to be eligible to 
     provide the services, and receive the funds, described in 
     clause (i). Such information shall include information 
     relating to--

       (I) the percentage of students completing the programs, if 
     any, through which the entity provides education and training 
     services described in subparagraph (B), as of the date of the 
     submission;
       (II) the rates of licensure of graduates of the programs;
       (III) the percentage of graduates of the programs meeting 
     skill standards and certification requirements endorsed by 
     the National Skill Standards Board established under the 
     Goals 2000: Educate America Act;
       (IV) the rates of placement and retention in employment, 
     and earnings, of the graduates of the programs;
       (V) the percentage of students in such a program who 
     obtained employment in an occupation related to the program; 
     and
       (VI) the warranties or guarantees provided by such entity 
     relating to the skill levels or employment to be attained by 
     recipients of the education and training services provided by 
     the entity under this paragraph.

       (iii) Administration.--The Governor shall designate a State 
     agency to collect, verify, and disseminate the performance-
     based information submitted pursuant to clause (ii).
       (iv) On-the-job training exception.--Entities shall not be 
     subject to the requirements of clauses (i) through (iii) with 
     respect to on-the-job training activities.
       (4) Labor market information system.--The State shall use a 
     portion of the funds described in paragraph (1) to establish 
     a statewide comprehensive labor market information system 
     described in section 773(c).
       (5) Job placement accountability system.--The State shall 
     use a portion of the funds described in paragraph (1) to 
     establish a job placement accountability system described in 
     section 731(d).
       (6) Permissible one-stop delivery activities.--The State 
     may provide, through one-stop delivery--
       (A) co-location of services related to workforce 
     development activities, such as unemployment insurance, 
     vocational rehabilitation program activities, welfare 
     assistance, veterans' employment services, or other public 
     assistance;
       (B) intensive services for participants who are unable to 
     obtain employment through the core services described in 
     paragraph (2)(B), as determined by the State; and
       (C) dissemination to employers of information on activities 
     carried out through the statewide system.
       (7) Other permissible activities.--The State may use a 
     portion of the funds described in paragraph (1) to provide 
     services through the statewide system that may include--
       (A) training to develop work habits to help individuals 
     obtain and retain employment;
       (B) rapid response assistance for dislocated workers;
       (C) preemployment and work maturity skills training for 
     youth;
       (D) connecting activities that organize consortia of small- 
     and medium-size businesses to provide work-based learning 
     opportunities for youth participants in school-to-work 
     programs;
       (E) services to assist individuals in attaining 
     certificates of mastery with respect to industry-based skill 
     standards;
       (F) case management services;
       (G) supportive services, such as transportation and 
     financial assistance, that enable individuals to participate 
     in the statewide system;
       (H) followup services for participants who are placed in 
     unsubsidized employment; and
       (I) an employment and training program described in section 
     6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)).
       (8) Staff development and training.--The State may use a 
     portion of the funds described in paragraph (1) for the 
     development and training of staff of providers of one-stop 
     delivery of core services described in paragraph (2), 
     including development and training relating to principles of 
     quality management.
       (9) Incentive grant awards.--The State may use a portion of 
     the funds described in paragraph (1) to award incentive 
     grants to substate areas that reach or exceed the State 
     benchmarks established under section 731(c), with an emphasis 
     on benchmarks established under section 731(c)(3). A substate 
     area that receives such a grant may use the funds made 
     available through the grant to carry out any workforce 
     development activities authorized under this title.
       (10) Funds from unemployment trust fund.--Funds made 
     available to a Governor under section 901(c)(1)(A) of the 
     Social Security Act (42 U.S.C. 1101(c)(1)(A)) for a program 
     year shall only be available for workforce employment 
     activities authorized under such section 901(c)(1)(A), which 
     are--
       (A) the administration of State unemployment compensation 
     laws as provided in title III of the Social Security Act 
     (including administration pursuant to agreements under any 
     Federal unemployment compensation law);
       (B) the establishment and maintenance of statewide 
     workforce development systems, to the extent the systems are 
     used to carry out activities described in section 773, or in 
     any of clauses (ii) through (v) of section 716(a)(2)(B); and
       (C) carrying out the activities described in sections 4103, 
     4103A, 4104, and 4104A of title 38, United States Code 
     (relating to veterans' employment services).
       (b) Workforce Education Activities.--The State educational 
     agency shall use the funds made available to the State 
     educational agency under this subtitle for workforce 
     education activities to carry out, through the statewide 
     system, activities that include--
       (1) integrating academic and vocational education;
       (2) linking secondary education (as determined under State 
     law) and postsecondary education, including implementing 
     tech-prep programs;
       (3) providing career guidance and counseling for students 
     at the earliest possible age, including the provision of 
     career awareness, exploration, planning, and guidance 
     information to students and their parents that is, to the 
     extent possible, in a language and form that the students and 
     their parents understand;
       (4) providing literacy and basic education services for 
     adults and out-of-school youth, including adults and out-of-
     school youth in correctional institutions;
       (5) providing programs for adults and out-of-school youth 
     to complete their secondary education;
       (6) expanding, improving, and modernizing quality 
     vocational education programs; and
       (7) improving access to quality vocational education 
     programs for at-risk youth.
       (c) Fiscal Requirements for Workforce Education 
     Activities.--
       (1) Supplement not supplant.--Funds made available under 
     this subtitle for workforce education activities shall 
     supplement, and may not supplant, other public funds expended 
     to carry out workforce education activities.
       (2) Maintenance of effort.--
       (A) Determination.--No payments shall be made under this 
     subtitle for any program year to a State for workforce 
     education activities unless the Federal Partnership 
     determines that the fiscal effort per student or the 
     aggregate expenditures of such State for workforce education 
     for the program year preceding the program year for which the 
     determination is made, equaled or exceeded such effort or 
     expenditures for workforce education for the second program 
     year preceding the fiscal year for which the determination is 
     made.
       (B) Waiver.--The Federal Partnership may waive the 
     requirements of this section (with respect to not more than 5 
     percent of expenditures by any State educational agency) for 

[[Page S 13126]]
     1 program year only, on making a determination that such waiver would 
     be equitable due to exceptional or uncontrollable 
     circumstances affecting the ability of the applicant to meet 
     such requirements, such as a natural disaster or an 
     unforeseen and precipitous decline in financial resources. No 
     level of funding permitted under such a waiver may be used as 
     the basis for computing the fiscal effort or aggregate 
     expenditures required under this section for years subsequent 
     to the year covered by such waiver. The fiscal effort or 
     aggregate expenditures for the subsequent years shall be 
     computed on the basis of the level of funding that would, but 
     for such waiver, have been required.
       (d) Flexible Workforce Activities.--
       (1) Core flexible workforce activities.--The State shall 
     use a portion of the funds made available to the State under 
     this subtitle through the flex account to carry out school-
     to-work activities through the statewide system, except that 
     any State that received a grant under subtitle B of title II 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6141 et seq.) shall use such portion to support the continued 
     development of the statewide School-to-Work Opportunities 
     system of the State through the continuation of activities 
     that are carried out in accordance with the terms of such 
     grant.
       (2) Permissible flexible workforce activities.--The State 
     may use a portion of the funds made available to the State 
     under this subtitle through the flex account--
       (A) to carry out workforce employment activities through 
     the statewide system; and
       (B) to carry out workforce education activities through the 
     statewide system.
       (e) Economic Development Activities.--In the case of a 
     State that meets the requirements of section 728(c), the 
     State may use a portion of the funds made available to the 
     State under this subtitle through the flex account to 
     supplement other funds provided by the State or private 
     sector--
       (1) to provide customized assessments of the skills of 
     workers and an analysis of the skill needs of employers;
       (2) to assist consortia of small- and medium-size employers 
     in upgrading the skills of their workforces;
       (3) to provide productivity and quality improvement 
     training programs for the workforces of small- and medium-
     size employers;
       (4) to provide recognition and use of voluntary industry-
     developed skills standards by employers, schools, and 
     training institutions;
       (5) to carry out training activities in companies that are 
     developing modernization plans in conjunction with State 
     industrial extension service offices; and
       (6) to provide on-site, industry-specific training programs 
     supportive of industrial and economic development;
     through the statewide system.
       (f) Limitations.--
       (1) Wages.--No funds provided under this subtitle shall be 
     used to pay the wages of incumbent workers during their 
     participation in economic development activities provided 
     through the statewide system.
       (2) Relocation.--No funds provided under this subtitle 
     shall be used or proposed for use to encourage or induce the 
     relocation, of a business or part of a business, that results 
     in a loss of employment for any employee of such business at 
     the original location.
       (3) Training and assessments following relocation.--No 
     funds provided under this subtitle shall be used for 
     customized or skill training, on-the-job training, or company 
     specific assessments of job applicants or workers, for any 
     business or part of a business, that has relocated, until 120 
     days after the date on which such business commences 
     operations at the new location, if the relocation of such 
     business or part of a business, results in a loss of 
     employment for any worker of such business at the original 
     location.
       (g) Limitations on Participants.--
       (1) Diploma or equivalent.--
       (A) In general.--No individual may participate in workforce 
     employment activities described in subparagraph (A), (B), 
     (C), (E), (G), (J), or (K) of subsection (a)(7) until the 
     individual has obtained a secondary school diploma or its 
     recognized equivalent, or is enrolled in a program or course 
     of study to obtain a secondary school diploma or its 
     recognized equivalent.
       (B) Exception.--Nothing in subparagraph (A) shall prevent 
     participation in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(7) by individuals who, after testing and in 
     the judgment of medical, psychiatric, academic, or other 
     appropriate professionals, lack the requisite capacity to 
     complete successfully a course of study that would lead to a 
     secondary school diploma or its recognized equivalent.
       (2) Services.--
       (A) Referral.--If an individual who has not obtained a 
     secondary school diploma or its recognized equivalent applies 
     to participate in workforce employment activities described 
     under subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
     subsection (a)(7), such individual shall be referred to State 
     approved adult education services that provide instruction 
     designed to help such individual obtain a secondary school 
     diploma or its recognized equivalent.
       (B) State provision of services.--Notwithstanding any other 
     provision of this title, a State may use funds made available 
     under section 713(a)(1) to provide State approved adult 
     education services that provide instruction designed to help 
     individuals obtain a secondary school diploma or its 
     recognized equivalent, to individuals who--
       (i) are seeking to participate in workforce employment 
     activities described under subparagraph (A), (B), (C), (E), 
     (G), (J), or (K) of subsection (a)(7); and
       (ii) are otherwise unable to obtain such services.
       (h) Special Rule.--References in section 703(39), and 
     section 7(38) of the Rehabilitation Act of 1973, to section 
     716(a)(8) shall be deemed to be references to section 
     716(a)(9).
                                 ______


                   MIKULSKI AMENDMENTS NOS. 2668-2669

  Mr. MOYNIHAN (for Ms. Mikulski) proposed two amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2668

       On page 520, strike lines 17 through 19 and insert the 
     following:
       (7) Title VII of the Stewart B. McKinney
                                                                    ____

                           Amendment No. 2669

       On page 10, line 24, insert ``in a way that does not 
     encourage the break up of 2-parent families'' after ``minor 
     children''.
       On page 12, between lines 22 and 23, insert the following:
       ``(G) Develop and implement, in cases where appropriate and 
     beneficial to the child, a program that encourages 
     participation of both parents in the parenting of the child 
     or children and encourages two-parent families.
       On page 17, line 22, strike ``amount (if any) determined 
     under subparagraph (B)'' and insert ``amount determined under 
     subparagraphs (B) and (C)''.
       On page 18, between lines 15 and 16, insert the following:
       ``(C) Amount determined.--The amount determined under this 
     subparagraph is the amount which bears the same ratio to the 
     amount specified under section 413A(h) as the amount 
     otherwise determined for such State under subparagraph (A) 
     (without regard to the reduction determined under this 
     subparagraph) bears to $16,795,323.
       On page 18, line 16, strike ``(C)'' and insert ``(D)''.
       On page 18, line 21, strike ``subparagraph (B)'' and insert 
     ``subparagraphs (B) and (C)''.
       On page 22, line 15, strike ``and''.
       On page 22, line 17, strike the period and insert ``; 
     and''.
       On page 22, between lines 17 and 18, insert:
       ``(iii) grants to States under section 413A.
       On page 42, between lines 21 and 22, insert the following:
       ``(f) Disregard of First $50 of Child Support.--A State to 
     which a grant is made under section 403 shall, in determining 
     the eligibility of a family for assistance under the State 
     program funded under this part, disregard for any month the 
     first $50 of any child support payments received by such 
     family received in that month.
       On page 50, line 5, strike the period and insert a 
     semicolon.
       On page 50, between lines 5 and 6, insert the following:

     ``except that if a State elects to deny benefits under this 
     subsection the State shall certify to the Secretary that the 
     State has established financial incentives to encourage 
     recipients of assistance to marry. Such incentives must 
     permit recipients who marry to retain benefits that are at 
     least equal in value to the amount of the penalty imposed on 
     other families under this subsection.''.
       On page 51, between lines 11 and 12 , insert the following 
     new subsection:
       ``(e) Prohibition of the 100 Hour Rule.--A State to which a 
     grant is made under section 403 may not deny an individual 
     eligibility for assistance under such grant solely on the 
     basis of the number of hours worked by the spouse of the 
     individual.
       On page 51, line 12, strike ``(e)'' and insert ``(f).
       On page 69, between lines 22 and 23, insert the following:

     ``SEC. 413A. TRAINING AND EMPLOYMENT FOR NON-CUSTODIAL 
                   PARENTS.

       ``(a) In General.--The Secretary shall make grants to 
     States with applications approved under this section to 
     conduct programs of training and employment opportunities for 
     noncustodial parents in accordance with the requirements of 
     this section.
       ``(b) Application.--
       ``(1) In general.--Each State desiring to conduct a program 
     under this section shall prepare and submit to the Secretary 
     an application described in paragraph (2) at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       ``(2) Application described.--An application to conduct a 
     program under this section shall--
       ``(A) describe the political subdivision or subdivisions, 
     or other identifiable areas of the State where the program 
     will be conducted;
       ``(B) describe the services that will be provided to 
     participants, including the training, job readiness services, 
     and employment opportunities that will be available, and 
     indicate whether these will be provided through the program 
     under this part or whether some or all of the activities 
     under this subsection will be conducted as a separate 
     program;
       ``(C) describe the supportive services that will be 
     provided to enhance the participant's involvement in the 
     program and ability to 

[[Page S 13127]]
     obtain employment and meet his or her child support obligations;
       ``(D) indicate whether the State will conduct a random 
     assignment evaluation of the effects of the program on 
     improved responsibility in meeting child support obligations; 
     and
       ``(E) provide assurance that the State's program will 
     comply with the requirements of this subsection.
       ``(c) Eligibility for Participation in the Program.--The 
     application described in subsection (b)(1) shall provide that 
     a noncustodial parent will be eligible to commence 
     participation in the program under this section if his or her 
     child is receiving assistance under the State program funded 
     under this part or if the noncustodial parent owes past-due 
     child support which has been assigned to the State and is 
     unemployed. Paternity must be established before a 
     noncustodial father may enter the program, and the 
     noncustodial parent must be cooperating in the establishment 
     of a child support obligation and the entry of an award. If a 
     parent who has been participating in the program ceases to be 
     eligible therefore because the child with respect to whom the 
     support obligation exists is no longer eligible for 
     assistance under the State program funded under this part, 
     the State must nonetheless allow the participant to complete 
     the training or program activity.
       ``(d) No Guarantee of Participation or Access to 
     Services.--A State conducting a program under this section 
     shall not be required--
       ``(1) to accept all applicants even though they meet the 
     criteria of subsection (c); or
       ``(2) to provide the same training, services, or employment 
     opportunities to all participants.
       ``(e) Wages.--The State agency shall assure that wages will 
     be paid for work performed by the participant and may provide 
     for the payment of training stipends.
       ``(f) Child Support.--
       ``(1) Garnishment.--The State agency shall garnish 
     subsidized wages, or any stipends, paid in connection with a 
     non-custodial parent's participation in the program under 
     this section, and remit them to the State agency 
     administering the State plan approved under part D for 
     distribution as a child support collection in accordance with 
     the provisions of that part.
       ``(2) Crediting of past due amounts.--The State may 
     provide, if, with respect to an individual participating in 
     the program under this section, it has jurisdiction over the 
     child support obligation being enforced, that hours of 
     participation in program activities may, or a reasonable 
     basis, be credited to reduce amounts of past-due child 
     support owed to such State agency by the individual.
       ``(g) Minimum Participation Rate.--For purposes of 
     determining the minimum participation rates for a fiscal year 
     under section 404, an individual participating in the program 
     under this section shall be included in the number determined 
     under section 404(b)(1)(B)(i)(I) for purposes of determining 
     the participation rate for 2-parent families under section 
     404(b)(2).
       ``(h) Funding.--The following amounts shall be available to 
     make grants under this section:
       ``(1) $80,000,000 of the amount appropriated under section 
     403(a)(4) for fiscal year 1996.
       ``(2) $100,000,000 of the amount appropriated under section 
     403(a)(4) for fiscal year 1997.
       ``(3) $130,000,000 of the amount appropriated under section 
     403(a)(4) for fiscal year 1998.
       ``(4) $150,000,000 of the amount appropriated under section 
     403(a)(4) for fiscal year 1999.
       ``(5) $175,000,000 of the amount appropriated under section 
     403(a)(4) for fiscal year 2000.
       On page 580, between lines 22 and 23, insert the following:
       ``(1) For all families.--The State shall distribute the 
     first $50 of such amount to the family.
       On page 580, line 23, strike ``(1)'' and insert ``(2)''.
       On page 581, line 5, strike ``(2)'' and insert ``(3)''.
       On page 583, line 3, strike ``(3)'' and insert ``(4)''.
       On page 641, between lines 11 and 12, insert the following:

     SEC. 426. DURATION OF SUPPORT.

       Section 466(a) (42 U.S.C. 666(a)), as amended by this Act, 
     is amended--
       (1) by inserting after paragraph (16) the following new 
     paragraph:
       ``(17) Procedures under which the State--
       ``(A) requires a continuing support obligation by the 
     noncustodial parent until at least the later of the date on 
     which a child for whom a support obligation is owed reaches 
     the age of 18, or graduates from or is no longer enrolled in 
     secondary school or its equivalent, unless a child marries, 
     joins the United States armed forces, or is otherwise 
     emancipated under State law;
       ``(B)(i) provides that courts or administrative agencies 
     with child support jurisdiction have the discretionary power, 
     until the date on which the child involved reaches the age of 
     22, pursuant to criteria established by the State, to order 
     child support, payable directly or indirectly (support may be 
     paid directly to a postsecondary or vocational school or 
     college) to a child, at least up to the age of 22 for a child 
     enrolled full-time in an accredited postsecondary or 
     vocational school or college and who is a student in good 
     standing; and
       ``(ii) may, without application of the rebuttable 
     presumption in section 467(b)(2), award support under this 
     subsection in amounts that, in whole or in part, reflect the 
     actual costs of post secondary education; and
       ``(C) provides for child support to continue beyond the 
     child's age of majority provided the child is disabled, 
     unable to be self-supportive, and the disability arose during 
     the child's minority.''; and
       (2) by adding at the end the following new sentence: 
     ``Nothing in paragraph (17) shall preclude a State from 
     imposing more extensive child support obligations or 
     obligations of longer duration.''.
       On page 792, after line 22, add the following new title:
                    TITLE ____--CHILD CUSTODY REFORM

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Child Custody Reform Act 
     of 1995''.

     SEC. ____02. REQUIREMENTS FOR EXCLUSIVE CONTINUING 
                   JURISDICTION MODIFICATION.

       Section 1738A of title 28, United States Code, is amended--
       (1) in subsection (d) to read as follows:
       ``(d)(1) Subject to paragraph (2) the jurisdiction of a 
     court of a State that has made a child custody or visitation 
     determination in accordance with this section continues 
     exclusively as long as such State remains the residence of 
     the child or of any contestant.
       ``(2) Continuing jurisdiction under paragraph (1) shall be 
     subject to any applicable provision of law of the State that 
     issued the initial child custody determination in accordance 
     with this section, when such State law establishes 
     limitations on continuing jurisdiction when a child is absent 
     from such State.'';
       (2) in subsection (f)
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (1), respectively and transferring paragraph (2) (as 
     so redesignated) so as to appear after paragraph (1) (as so 
     redesignated); and
       (B) in paragraph (1) (as so redesignated), by inserting 
     ``pursuant to subsection (d),'' after ``the court of the 
     other State no longer has jurisdiction,''; and
       (3) in subsection (g), by inserting ``or continuing 
     jurisdiction'' after ``exercising jurisdiction''.

     SEC. ____03. ESTABLISHMENT OF NATIONAL CHILD CUSTODY 
                   REGISTRY.

       Section 453 of the Social Security Act (42 U.S.C. 653) (as 
     amended by section 916) is further amended by adding at the 
     end the following new subsection:
       ``(p)(1) Not later than 1 year after the date of enactment 
     of this subsection, the Secretary, in consultation with the 
     Attorney General, shall conduct and conclude a study 
     regarding the most practicable and efficient way to create a 
     national child custody registry to carry out the purposes of 
     paragraph (3). Pursuant to this study, and subject to the 
     availability of appropriations, the Secretary shall create a 
     national child custody registry and promulgate regulations 
     necessary to implement such registry. The study and 
     regulations shall include--
       ``(A) a determination concerning whether a new national 
     database should be established or whether an existing network 
     should be expanded in order to enable courts to identify 
     child custody determinations made by, or proceedings filed 
     before, any court of the United States, its territories or 
     possessions;
       ``(B) measures to encourage and provide assistance to 
     States to collect and organize the data necessary to carry 
     out subparagraph (A);
       ``(C) if necessary, measures describing how the Secretary 
     will work with the related and interested State agencies so 
     that the database described in subparagraph (A) can be linked 
     with appropriate State registries for the purpose of 
     exchanging and comparing the child custody information 
     contained therein;
       ``(D) the information that should be entered in the 
     registry (such as the court of jurisdiction where a child 
     custody proceeding has been filed or a child custody 
     determination has been made, the name of the presiding 
     officer of the court in which a child custody proceeding has 
     been filed, the telephone number of such court, the names and 
     social security numbers of the parties, the name, date of 
     birth, and social security numbers of each child) to carry 
     out the purposes of paragraph (3);
       ``(E) the standards necessary to ensure the standardization 
     of data elements, updating of information, reimbursement, 
     reports, safeguards for privacy and information security, and 
     other such provisions as the Secretary determines 
     appropriate;
       ``(F) measures to protect confidential information and 
     privacy rights (including safeguards against the unauthorized 
     use or disclosure of information) which ensure that--
       ``(i) no confidential information is entered into the 
     registry;
       ``(ii) the information contained in the registry shall be 
     available only to courts or law enforcement officers to carry 
     out the purposes in paragraph (3); and
       ``(iii) no information is entered into the registry (or 
     where information has previously been entered, that other 
     necessary means will be taken) if there is a reason to 
     believe that the information may result in physical harm to a 
     person; and
       ``(G) an analysis of costs associated with the 
     establishment of the child custody registry and the 
     implementation of the proposed regulations.
       ``(2) As used in this subsection--
       ``(A) the term `child custody determination' means a 
     judgment, decree, or other order of a court providing for 
     custody or visitation of a child, and includes permanent 

[[Page S 13128]]
     and temporary orders, and initial orders and modifications; and
       ``(B) the term `custody proceeding'--
       ``(i) means a proceeding in which a custody determination 
     is one of several issues, such as a proceeding for divorce or 
     separation, as well as neglect, abuse, dependency, wardship, 
     guardianship, termination of parental rights, adoption, 
     protective action from domestic violence, and Hague Child 
     Abduction Convention proceedings; and
       ``(ii) does not include a judgment, decree, or other order 
     of a court made in a juvenile delinquency, or status offender 
     proceeding.
       ``(3) The purposes of this subsection are to--
       ``(A) encourage and provide assistance to State and local 
     jurisdictions to permit--
       ``(i) courts to identify child custody determinations made 
     by, and proceedings in, other States, local jurisdictions, 
     and countries;
       ``(ii) law enforcement officers to enforce child custody 
     determinations and recover parentally abducted children 
     consistent with State law and regulations;
       ``(B) avoid duplicative and or contradictory child custody 
     or visitation determinations by assuring that courts have the 
     information they need to--
       ``(i) give full faith and credit to the child custody or 
     visitation determination made by a court of another State as 
     required by section 1738A of title 28, United States Code; 
     and
       ``(ii) refrain from exercising jurisdiction when another 
     court is exercising jurisdiction consistent with section 
     1738A of title 28, United States Code.
       ``(4) There are authorized to be appropriated such sums as 
     may be necessary to establish the child custody registry and 
     implement the regulations pursuant to paragraph (1).''.

     SEC. ____04. SENSE OF THE SENATE REGARDING SUPERVISED CHILD 
                   VISITATION CENTERS.

       It is the sense of the Senate that local governments should 
     take full advantage of the Local Crime Prevention Block Grant 
     Program established under subtitle B of title III of the 
     Violent Crime Control and Law Enforcement Act of 1994, to 
     establish supervised visitation centers for children who have 
     been removed from their parents and placed outside the home 
     as a result of abuse or neglect or other risk of harm to such 
     children, and for children whose parents are separated or 
     divorced and the children are at risk because of physical or 
     mental abuse or domestic violence.
                                 ______


                       KERREY AMENDMENT NO. 2670

  Mr. MOYNIHAN (for Mr. Kerrey) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 229, strike lines 4 through 8 and insert the 
     following:
       ``(2) Election Revocable.--A State that elects to 
     participate in the program established under subsection (a) 
     may subsequently reverse its election only once thereafter. 
     Following such reversal, the State shall only be eligible to 
     participate in the food stamp program in accordance with the 
     other sections of this Act and shall not receive a block 
     grant under this section.
                                 ______


               DASCHLE (AND BINGAMAN) AMENDMENT NO. 2671

  Mr. MOYNIHAN (for Mr. Daschle for himself and Mr. Bingaman) proposed 
an amendment to amendment No. 2280 proposed by Mr. Dole to the bill 
H.R. 4, supra, as follows:

       On page 26, before line 1, insert the following:
       ``(6) Loans to indian tribes.--For purposes of this 
     subsection, an Indian tribe with a tribal family assistance 
     plan approved under section 414 shall be treated as a State, 
     except that--
       ``(A) the Secretary may extend the time limitation under 
     paragraph (4)(A);
       ``(B) the Secretary may waive the interest requirement 
     under subparagraph (4)(B);
       ``(C) paragraph (4)(C) shall be applied by substituting 
     `tribal family assistance grant under section 414' for `State 
     family assistance grant under subsection (a)(2)'; and
       ``(D) paragraph (5) shall be applied without regard to 
     subparagraph (B).
       On page 26, strike lines 11 through 16, and insert the 
     following:
       ``(2) Eligible indian tribe.--For purposes of paragraph 
     (1), the term `eligible Indian tribe' means an Indian tribe 
     or Alaska Native organization that--
       ``(A) conducted a job opportunities and basic skills 
     training program in fiscal year 1995 under section 482(i) (as 
     in effect during such fiscal year); and
       ``(B) is not receiving a tribal family assistance grant 
     under section 414.
       Beginning on page 63, line 14, strike all through page 68, 
     line 21, and insert the following:
       ``(a) In General.--
       ``(1) Application.--
       ``(A) In general.--An Indian tribe may apply at any time to 
     the Secretary (in such manner as the Secretary prescribes) to 
     receive a family assistance grant.
       ``(B) 3-Year tribal family assistance plan.--
       ``(i) In general.--As part of the application under 
     subparagraph (A), the Indian tribe shall submit to the 
     Secretary a 3-year tribal family assistance plan that--
       ``(I) outlines the Indian tribe's approach to providing 
     welfare-related services for the 3-year period, consistent 
     with the purposes of this section;
       ``(II) specifies whether the welfare-related services 
     provided under the plan will be provided by the Indian tribe 
     or through agreements, contracts, or compacts with 
     intertribal consortia, States, or other entities;
       ``(III) identifies the population and service area or areas 
     to be served by such plan;
       ``(IV) provides that a family receiving assistance under 
     the plan may not receive duplicative assistance from other 
     State or tribal programs funded under this part;
       ``(V) identifies the employment opportunities in or near 
     the service area or areas of the Indian tribe and the manner 
     in which the Indian tribe will cooperate and participate in 
     enhancing such opportunities for recipients of assistance 
     under the plan consistent with any applicable State 
     standards; and
       ``(VI) applies the fiscal accountability provisions of 
     section 5(f)(1) of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to 
     the submission of a single-agency audit report required by 
     chapter 75 of title 31, United States Code.
     Nothing in this clause shall preclude an Indian tribe from 
     entering into an agreement with a State under the tribal 
     family assistance plan for providing services to individuals 
     residing outside the tribe's jurisdiction or for providing 
     services to non-tribal members residing within the tribe's 
     jurisdiction. Any such agreement shall include an appropriate 
     transfer of funds from the State to the tribe.
       ``(ii) Approval.--The Secretary shall approve each tribal 
     family assistance plan submitted in accordance with clause 
     (i).
       ``(2) Participation.--If a tribe chooses to apply and the 
     application is approved, such tribe shall be entitled to a 
     direct payment in the amount determined in accordance with 
     the provisions of subsection (b) for each fiscal year 
     beginning after such approval.
       ``(3) No participation.--If a tribe chooses not to apply, 
     the amount that would otherwise be available to such tribe 
     for the fiscal year shall be payable to the State in which 
     that tribe is located. Such State shall provide equitable 
     access to services by recipients within that tribe's 
     jurisdiction.
       ``(4) No match required.--Indian tribes shall not be 
     required to submit a monetary match to receive a payment 
     under this section.
       ``(5) Joint programs.--An Indian tribe may also apply to 
     the Secretary jointly with 1 or more such tribes to 
     administer family assistance services as a consortium. The 
     Secretary shall establish such terms and conditions for such 
     consortium as are necessary.
       ``(b) Payment Amount.--
       ``(1) In general.--From an amount equal to 3 percent of the 
     amount specified under section 403(a)(4) for a fiscal year, 
     the Secretary shall pay directly to each Indian tribe 
     requesting a family assistance grant for such fiscal year an 
     amount pursuant to an allocation formula determined by the 
     Secretary based on the need for services and utilizing (if 
     possible) data that is common to all Indian tribes.
       ``(2) Authority to reserve certain amounts for 
     assistance.--An Indian tribe may reserve amounts paid to the 
     Indian tribe under this part for any fiscal year for the 
     purpose of providing, without fiscal year limitation, 
     assistance under the program operated under this part.
       ``(c) Voluntary Termination.--An Indian tribe may 
     voluntarily terminate receipt of a family assistance grant. 
     The Indian tribe shall give the State and the Secretary 
     notice of such decision 6 months prior to the date of 
     termination. The amount under subsection (b) with respect to 
     such grant for the fiscal year shall be payable to the State 
     in which that tribe is located. Such State shall provide 
     equitable access to services by recipients residing within 
     that tribe's jurisdiction. If a voluntary termination of a 
     grant occurs under this subsection, the tribe shall not be 
     eligible to submit an application under this section before 
     the 6th year following such termination.
       ``(d) Minimum Work Participation Requirements and Time 
     Limits.--The Secretary, with the participation of Indian 
     tribes, shall establish for each Indian tribe receiving a 
     grant under this section minimum work participation 
     requirements, appropriate time limits for receipt of welfare-
     related services under such grant, and penalties against 
     individuals--
       ``(1) consistent with the purposes of this section;
       ``(2) consistent with the economic conditions and resources 
     available to each tribe; and
       ``(3) similar to comparable provisions in section 404(d).
       ``(e) Emergency Assistance.--Nothing in this section shall 
     preclude an Indian tribe from seeking emergency assistance 
     from any Federal loan program or emergency fund.
       ``(f) Maintenance of effort assistance.--Nothing in this 
     section shall preclude a State from providing maintenance of 
     effort funds to Indian tribes located in such State.
       ``(g) Accountability.--Nothing in this section shall be 
     construed to limit the ability of the Secretary to maintain 
     program funding accountability consistent with--
       ``(1) generally accepted accounting principles; and
       ``(2) the requirements of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.).

[[Page S 13129]]

       ``(h) Tribal Penalties.--For the purpose of ensuring the 
     proper use of family assistance grants, the following 
     provisions shall apply to an Indian tribe with an approved 
     tribal assistance plan:
       ``(1) The provisions of subsections (a)(1), (a)(6), and (b) 
     of section 407, in the same manner as such subsections apply 
     to a State.
       ``(2) The provisions of section 407(a)(3), except that such 
     subsection shall be applied by substituting `the minimum 
     requirements established under subsection (d) of section 414' 
     for `the minimum participation rates specified in section 
     404'.
       ``(i) Data Collection and Reporting.--For the purpose of 
     ensuring uniformity in data collection, section 409 shall 
     apply to an Indian tribe with an approved family assistance 
     plan.
       ``(j) Information Sharing.--Each State and the Indian 
     tribes located within its jurisdiction may share (in a manner 
     that ensures confidentiality) eligibility and other 
     information on residents in such State that would be helpful 
     for determining eligibility for other Federal and State 
     assistance programs.
       On page 101, between lines 20 and 21, insert the following:
       (j) Amendment to Title XIX.--Section 1903(u)(1)(D) (42 
     U.S.C. 1396b(u)(1)(D)) is amended by adding at the end the 
     following new clause:
       ``(vi) In determining the amount of erroneous excess 
     payments, there shall not be included any erroneous payments 
     made by the State to the benefit of members of Indian 
     families based on correctly processed information received or 
     information not timely received from a tribe with a tribal 
     family assistance plan approved under part A of title IV of 
     the Social Security Act.''.
       On page 108, between lines 20 and 21, insert the following:
       (i) Section 16(c)(3) of the Food Stamp Act (7 U.S.C. 
     2025(c)(3)) is amended by adding at the end the following new 
     subparagraph:
       ``(C) Any errors resulting from State payments to Indian 
     families based on correctly processed information received or 
     information not timely received from a tribe with a tribal 
     family assistance plan approved under part A of title IV of 
     the Social Security Act.''.
                                 ______


                       DASCHLE AMENDMENT NO. 2672

  Mr. MOYNIHAN (for Mr. Daschle) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       Beginning on page 26, line 13, strike all through page 28, 
     line 19, and insert the following:
       ``(d) Contingency Fund.--
       ``(1) Establishment.--There is hereby established in the 
     Treasury of the United States a fund which shall be known as 
     the `Contingency Fund for State Welfare Programs' (hereafter 
     in this section referred to as the `Fund').
       ``(2) Deposits into fund.--Out of any money in the Treasury 
     of the United States not otherwise appropriated, there are 
     hereby appropriated for fiscal years 1996, 1997, 1998, 1999, 
     2000, 2001, and 2002 such sums as are necessary for payment 
     to the Fund in a total amount not to exceed $5,000,000,000, 
     of which not more than $4,000,000,000 shall be available 
     during the first 5 fiscal years.
       ``(3) Computation of grant.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary of the Treasury shall pay to each eligible State in 
     a fiscal year an amount equal to the Federal medical 
     assistance percentage for such State for such fiscal year (as 
     defined in section 1905(b)) of so much of the expenditures by 
     the State in such year under the State program funded under 
     this part as exceed the historic State expenditures for such 
     State.
       ``(B) Limitation.--The total amount paid to a State under 
     subparagraph (A) for any fiscal year shall not exceed an 
     amount equal to 20 percent of the annual amount determined 
     for such State under the State program funded under this part 
     (without regard to this subsection) for such fiscal year.
       ``(C) Method of computation, payment, and reconciliation.--
       ``(i) Method of computation.--The method of computing and 
     paying such amounts shall be as follows:

       ``(I) The Secretary of Health and Human Services shall 
     estimate the amount to be paid to the State for each quarter 
     under the provisions of subparagraph (A), such estimate to be 
     based on a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter and such 
     other information as the Secretary may find necessary.
       ``(II) 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.

       ``(ii) 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.
       ``(iii) Method of reconciliation.--If at the end of each 
     fiscal year, the Secretary of Health and Human Services finds 
     that a State which received amounts from the Fund in such 
     fiscal year did not meet the maintenance of effort 
     requirement under paragraph (5)(B) for such fiscal year, the 
     Secretary shall reduce the State family assistance grant for 
     such State for the succeeding fiscal year by such amounts.
       ``(4) Use of grant.--
       ``(A) In general.--An eligible State may use the grant--
       ``(i) in any manner that is reasonably calculated to 
     accomplish the purpose of this part; or
       ``(ii) in any manner that such State used amounts received 
     under part A or F of this title, as such parts were in effect 
     before October 1, 1995.
       ``(B) Refund of unused portion.--Any amount of a grant 
     under this subsection not used during the fiscal year shall 
     be returned to the Fund.
       ``(5) Eligible state.--
       ``(A) In general.--For purposes of this subsection, a State 
     is an eligible State with respect to a fiscal year, if such 
     State--
       ``(i) has an average total unemployment rate or a children 
     population in such State's food stamp program which exceeds 
     such average total rate or population for fiscal year 1994; 
     and
       ``(ii) has met the maintenance of effort requirement under 
     subparagraph (B) for the State program funded under this part 
     for the fiscal year.
       ``(B) Maintenance of effort.--
       ``(i) In general.--The maintenance of effort requirement 
     for any State under this subparagraph for any fiscal year is 
     the expenditure of an amount at least equal to 100 percent of 
     the level of spending in FY 94.
       ``(ii) Historic state expenditures.--For purposes of this 
     subparagraph, the term `historic State expenditures' means 
     payments of cash assistance to recipients of aid to families 
     with dependent children under the State plan under part A of 
     title IV for fiscal year 1994, as in effect during such 
     fiscal year.
       ``(iii) Determining state expenditures.--For purposes of 
     this subparagraph, State expenditures shall not include any 
     expenditures from amounts made available by the Federal 
     Government.
       ``(6) Annual reports.--The Secretary of the Treasury shall 
     annually report to the Congress on the status of the Fund.
                                 ______


                      SANTORUM AMENDMENT NO. 2673

  Mr. SANTORUM proposed an amendment to amendment No. 2280 proposed by 
Mr. Dole to the bill H.R. 4, surpra, as follows:

       On page 200, between lines 11 and 12, insert:
       ``(4) Implementation of electronic benefit transfer 
     system.--
       ``(A) In general.--A State to which a grant is made under 
     this Act is encouraged to implement the electronic benefit 
     transfer system for providing assistance under the State 
     program funded under this Act and may use the grant for such 
     purpose. In implementing the system, the State shall use an 
     open, competitive
                                 ______


                  McCONNELL AMENDMENTS NOS. 2674-2675

  Mr. SANTORUM (for Mr. McConnell) proposed two amendments to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

                           Amendment No. 2674

       On page 270, after line 23, insert the following:
       (3) Regulations.--
       (A) Interim regulations.--Not later than February 1, 1996, 
     the Secretary shall issue interim regulations to implement--
       (i) the amendments made by paragraphs (1), (3), and (4) of 
     subsection (b); and
       (ii) section 17(f)(3)(C) of the National School Lunch Act 
     (42 U.S.C. 1766(f)(3)(C)).
       (B) Final regulations.--Not later than August 1, 1996, the 
     Secretary shall issue final regulations to implement the 
     provisions of law referred to in subparagraph (A).
                                                                    ____


                           Amendment No. 2675

       On page 268, strike lines 4 through 17 and insert the 
     following:

       ``(I) In general.--A State agency administering the school 
     lunch program under this Act or the school breakfast program 
     under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.) shall provide to approved family or group day care home 
     sponsoring organizations a list of
      schools serving elementary school children in the State in 
     which not less than \1/2\ of the children enrolled are 
     certified to receive free or reduced price meals. The 
     State agency shall collect the data necessary to create 
     the list annually and provide the list on a timely basis 
     to any approved family or group day care home sponsoring 
     organization that requests the list.
                                 ______


                      PACKWOOD AMENDMENT NO. 2676

  Mr. SANTORUM (for Mr. Packwood) proposed an amendment to amendment 
No. 2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 11 strike lines 5 through 22.
       On page 11, line 23, insert the following:
       (B) Nondiscrimination against employees administering or 
     providing services.--
       (i) Prohibition.--A religious organization with a contract 
     described in subsection (a)(1)(A) shall not discriminate in 
     employment on the basis of religion of an employee or 
     prospective employee if such employee's 

[[Page S 13130]]
     primary responsibility is or would be administering or providing 
     services under such contract.
       (ii) Qualified applicants.--If 2 or more prospective 
     employees are qualified for a position administering or 
     providing services under a contract described in subsection 
     (a)(1)(A), nothing in this section shall prohibit a religious 
     organization from employing a prospective employee who is 
     already participating on a regular basis in other activities 
     of the organization.
       (C) Present employees.--This paragraph shall not apply to 
     employees of religious organizations with a contract 
     described in subsection (a)(1)(A) if such employees are 
     employed by such organization on the date of the enactment of 
     this Act.
                                 ______


                       KENNEDY AMENDMENT NO. 2677

  Mr. MOYNIHAN (for Mr. Kennedy) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       At the appropriate place, insert the following new section:

     SEC. ____. 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.
                TITLE ____--CORPORATE WELFARE REDUCTION

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Corporate Welfare 
     Reduction Act of 1995''.

     SEC. ____02. FOREIGN OIL AND GAS INCOME.

       (a) Special Rules for Foreign Tax Credit With Respect to 
     Foreign Oil and Gas Income.--
       (1) Certain taxes not creditable.--
       (A) In general.--Subsection (a) of section 907 of the 
     Internal Revenue Code of 1986 (relating to reduction in 
     amount allowed as foreign tax under section 901) is amended 
     to read as follows:
       ``(a) Certain Taxes Not Creditable.--
       ``(1) In general.--For purposes of this subtitle, the term 
     `income, war profits, and excess profits taxes' shall not 
     include--
       ``(A) any taxes which are paid or accrued to any foreign 
     country with respect to foreign oil and gas income and which 
     are not imposed under a generally applicable income tax law 
     of such country, and
       ``(B) any taxes (not described in subparagraph (A)) which 
     are paid or accrued to any foreign country with respect to 
     foreign oil and gas income to the extent that the foreign law 
     imposing such amount of tax is structured, or in fact 
     operates, so that the amount of tax imposed with respect to 
     foreign oil and gas income will generally be materially 
     greater, over a reasonable period of time, than the amount 
     generally imposed on income that is not foreign oil and gas 
     income.

     In computing the amount not treated as tax under subparagraph 
     (B), such amount shall be treated as a deduction under the 
     foreign law.
       ``(2) Foreign oil and gas income.--For purposes of this 
     paragraph, the term `foreign oil and gas income' means the 
     amount of foreign oil and gas extraction income and foreign 
     oil related income.
       ``(3) Generally applicable income tax law.--For purposes of 
     this paragraph, the term `generally applicable income tax 
     law' means any law of a foreign country imposing an income 
     tax if such tax generally applies to all income from sources 
     within such foreign country--
       ``(A) without regard to the residence or nationality of the 
     person earning such income, and
       ``(B) in the case of any income earned by a corporation, 
     partnership, or other entity, without regard to--
       ``(i) where such corporation, partnership, or other entity 
     is organized, and
       ``(ii) the residence or nationality of the persons owning 
     interests in such corporation, partnership, or entity.''
       (B) Conforming amendment.--Section 907 of such Code is 
     amended by striking subsections (b), (c)(3), (c)(4), (c)(5), 
     and (f).
       (2) Separate baskets for foreign oil and gas extraction 
     income and foreign oil related income.--
       (A) In general.--Paragraph (1) of section 904(d) of such 
     Code (relating to separate application of section with 
     respect to certain categories of income) is amended by 
     striking ``and'' at the end of subparagraph (H), by 
     redesignating subparagraph (I) as subparagraph (K) and by 
     inserting after subparagraph (H) the following new 
     subparagraphs:
       ``(I) foreign oil and gas extraction income,
       ``(J) foreign oil related income, and''.
       (B) Definitions.--Paragraph (2) of section 904(d) of such 
     Code is amended by redesignating subparagraphs (H) and (I) as 
     subparagraphs (J) and (K), respectively, and by inserting 
     after subparagraph (G) the following new subparagraphs:
       ``(H) Foreign oil and gas extraction income.--The term 
     `foreign oil and gas extraction income' has the meaning given 
     such term by section 907(c)(1). Such term shall not include 
     any dividend from a noncontrolled section 902 corporation.
       ``(I) Foreign oil related income.--The term `foreign oil 
     related income' has the meaning given such term by section 
     907(c)(2). Such term shall not include any dividend from a 
     noncontrolled section 902 corporation and any shipping 
     income.''
       (C) Conforming amendment.--Clause (i) of section 
     904(d)(3)(F) of such Code is amended by striking ``or (E)'' 
     and inserting ``(E), (I), or (J)''.
       (3) Effective date.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the amendments made by this subsection shall apply 
     to taxable years beginning after December 31, 1995.
       (B) Disallowance rule.--
       (i) Section 907(a) of such Code (as amended by paragraph 
     (1)) shall apply to taxes paid or accrued after December 31, 
     1995, in taxable years ending after such date.
       (ii) In determining the amount of taxes deemed to be paid 
     in a taxable year beginning after December 31, 1995, under 
     section 902 or 960 of such Code, section 907(a) of such Code 
     (as amended by paragraph (1)) shall apply to all taxes 
     whether paid or accrued before, on, or after December 31, 
     1995.
       (C) Loss rule.--Notwithstanding the amendments made by 
     paragraph (1)(B), section 907(c)(4) of such Code shall 
     continue to apply with respect to foreign oil and gas 
     extraction losses for taxable years beginning before January 
     1, 1996.
       (D) Transitional rules.--
       (i) Any taxes paid or accrued in a taxable year beginning 
     before January 1, 1996, with respect to income which was 
     described in subparagraph (I) of section 904(d)(1) of such 
     Code (as in effect on the day before the date of the 
     enactment of this Act) shall be treated as taxes paid or 
     accrued with respect to foreign oil and gas extraction income 
     or foreign 

[[Page S 13131]]
     oil related income (as the case may be) to the extent such taxes were 
     paid or accrued with respect to such type of income.
       (ii) Any unused oil and gas extraction taxes which under 
     section 907(f) of such Code (as so in effect) would have been 
     allowed as a carryover to the taxpayer's first taxable year 
     beginning after December 31, 1995 (determined without regard 
     to the limitation of paragraph (2) of such section 907(f) for 
     such first taxable year), shall be allowed as carryovers 
     under section 904(c) of such Code in the same manner as if 
     they were unused taxes under section 904(c) with respect to 
     foreign oil and gas extraction income.
       (b) Elimination of Deferral for Foreign Oil and Gas 
     Extraction Income.--
       (1) General rule.--Paragraph (1) of section 954(g) of the 
     Internal Revenue Code of 1986 (defining foreign base company 
     oil related income) is amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign oil and gas income' means any 
     income of a kind which
      would be taken into account in determining the amount of--
       ``(A) foreign oil and gas extraction income (as defined in 
     section 907(c)(1)), or
       ``(B) foreign oil related income (as defined in section 
     907(c)(2)).''
       (2) Conforming amendments.--
       (A) Subsections (a)(5), (b)(4), (b)(5), and (b)(8) of 
     section 954 of such Code are each amended by striking ``base 
     company oil related income'' each place it appears (including 
     in the heading of subsection (b)(8)) and inserting ``oil and 
     gas income''.
       (B) The subsection heading for subsection (g) of section 
     954 of such Code is amended by striking ``Foreign Base 
     Company Oil Related Income'' and inserting ``Foreign Oil and 
     Gas Income''.
       (C) Subparagraph (A) of section 954(g)(2) of such Code is 
     amended by striking ``foreign base company oil related 
     income'' and inserting ``foreign oil and gas income''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 1995, and to taxable years of 
     United States shareholders in which or with which such 
     taxable years of foreign corporations end.

     SEC. ____03. TRANSFER PRICING.

       (a) Authority of Secretary When Legal Limits on Transfer by 
     Taxpayer.--Section 482 of the Internal Revenue Code of 1986 
     (relating to allocation of income and deductions among 
     taxpayers) is amended by adding at the end the following: 
     ``The authority of the Secretary under this section shall not 
     be limited by any restriction (by any law or agreement) on 
     the ability of such interests, organizations, trades, or 
     businesses to transfer or receive money or other property.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. ____04. ELIMINATION OF EXCLUSION FOR CITIZENS OR 
                   RESIDENTS OF UNITED STATES LIVING ABROAD.

       Section 911 of the Internal Revenue Code of 1986 (relating 
     to citizens or residents of the United States living abroad) 
     is amended by redesignating subsection (f) as subsection (g) 
     and by inserting after subsection (e) the following new 
     subsection:
       ``(f) Termination.--This section shall not apply to any 
     taxable year beginning after December 31, 1995.''

     SEC. ____05. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 
                   10-PERCENT FOREIGN SHAREHOLDERS.

       (a) General Rule.--Subpart D of part II of subchapter N of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     miscellaneous provisions) is amended by adding at the end 
     thereof the following new section:

     ``SEC. 899. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 
                   10-PERCENT FOREIGN SHAREHOLDERS.

       ``(a) General Rule.--
       ``(1) Treatment as effectively connected with united states 
     trade or business.--For purposes of this title, if any 
     nonresident alien individual or foreign corporation is a 10-
     percent shareholder in any domestic corporation, any gain or 
     loss of such individual or foreign corporation from the 
     disposition of any stock in such domestic corporation shall 
     be taken into account--
       ``(A) in the case of a nonresident alien individual, under 
     section 871(b)(1), or
       ``(B) in the case of a foreign corporation, under section 
     882(a)(1),

     as if the taxpayer were engaged during the taxable year in a 
     trade or business within the United States through a 
     permanent establishment in the United States and as if such 
     gain or loss were effectively connected with such trade or 
     business and attributable to such permanent establishment. 
     Notwithstanding section 865, any such gain or loss shall be 
     treated as from sources in the United States.
       ``(2) 26-percent minimum tax on nonresident alien 
     individuals.--
       ``(A) In general.--In the case of any nonresident alien 
     individual, the amount determined under section 55(b)(1)(A) 
     shall not be less than 26 percent of the lesser of--
       ``(i) the individual's alternative minimum taxable income 
     (as defined in section 55(b)(2)) for the taxable year, or
       ``(ii) the individual's net taxable stock gain for the 
     taxable year.
       ``(B) Net taxable stock gain.--For purposes of subparagraph 
     (A), the term `net taxable stock gain' means the excess of--
       ``(i) the aggregate gains for the taxable year from 
     dispositions of stock in domestic corporations with respect 
     to which such individual is a 10-percent shareholder, over
       ``(ii) the aggregate of the losses for the taxable year 
     from dispositions of such stock.
       ``(C) Coordination with section 897(a)(2).--Section 
     897(a)(2)(A) shall not apply to any nonresident alien 
     individual for any taxable year for which such individual has 
     a net taxable stock gain, but the amount of such net taxable 
     stock gain shall be increased by the amount of such 
     individual's net United States real property gain (as defined 
     in section 897(a)(2)(B)) for such taxable year.
       ``(b) 10-Percent Shareholder.--
       ``(1) In general.--For purposes of this section, the term 
     `10-percent shareholder' means any person who at any time 
     during the shorter of--
       ``(A) the period beginning on January 1, 1995, and ending 
     on the date of the disposition, or
       ``(B) the 5-year period ending on the date of the 
     disposition,

     owned 10 percent or more (by vote or value) of the stock in 
     the domestic corporation.
       ``(2) Constructive ownership.--
       ``(A) In general.--Section 318(a) (relating to constructive 
     ownership of stock) shall apply for purposes of paragraph 
     (1).
       ``(B) Modifications.--For purposes of subparagraph (A)--
       ``(i) paragraph (2)(C) of section 318(a) shall be applied 
     by substituting `10 percent' for `50 percent', and
       ``(ii) paragraph (3)(C) of section 318(a) shall be 
     applied--

       ``(I) by substituting `10 percent' for `50 percent', and
       ``(II) in any case where such paragraph would not apply but 
     for subclause (I), by considering a corporation as owning the 
     stock (other than stock in such corporation) owned by or for 
     any shareholder of such corporation in that proportion which 
     the value of the stock which such shareholder owns in such 
     corporation bears to the value of all stock in such 
     corporation.

       ``(3) Treatment of stock held by certain partnerships.--
       ``(A) In general.--For purposes of this section, if--
       ``(i) a partnership is a 10-percent shareholder in any 
     domestic corporation, and
       ``(ii) 10 percent or more of the capital or profits 
     interests in such partnership is held (directly or 
     indirectly) by nonresident alien individuals or foreign 
     corporations,

     each partner in such partnership who is not otherwise a 10-
     percent shareholder in such corporation shall, with respect 
     to the stock in such corporation held by the partnership, be 
     treated as a 10-percent shareholder in such corporation.
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply with 
     respect to stock in a domestic corporation held by any 
     partnership if, at all times during the 5-year period ending 
     on the date of the disposition involved--
       ``(I) the aggregate bases of the stock and securities in 
     such domestic corporation held by such partnership were less 
     than 25 percent of the partnership's net adjusted asset cost, 
     and
       ``(II) the partnership did not own 50 percent or more (by 
     vote or value) of the stock in such domestic corporation.

     The Secretary may by regulations disregard any failure to 
     meet the requirements of subclause (I) where the partnership 
     normally met such requirements during such 5-year period.
       ``(ii) Net adjusted asset cost.--For purposes of clause 
     (i), the term `net adjusted asset cost' means--

       ``(I) the aggregate bases of all of the assets of the 
     partnership other than cash and cash items, reduced by
       ``(II) the portion of the liabilities of the partnership 
     not allocable (on a proportionate basis) to assets excluded 
     under subclause (I).

       ``(C) Exception not to apply to 50-percent partners.--
     Subparagraph (B) shall not apply in the case of any partner 
     owning (directly or indirectly) more than 50 percent of the 
     capital or profits interests in the partnership at any time 
     during the 5-year period ending on the date of the 
     disposition.
       ``(D) Special rules.--For purposes of subparagraphs (B) and 
     (C)--
       ``(i) Treatment of predecessors.--Any reference to a 
     partnership or corporation shall be treated as including a 
     reference to any predecessor thereof.
       ``(ii) Partnership not in existence.--If any partnership 
     was not in existence throughout the entire 5-year period 
     ending on the date of the disposition, only the portion of 
     such period during which the partnership (or any predecessor) 
     was in existence shall be taken into account.
       ``(E) Other pass-thru entities; tiered entities.--Rules 
     similar to the rules of the preceding provisions of this 
     paragraph shall also apply in the case of any pass-thru 
     entity other than a partnership and in the case of tiered 
     partnerships and other entities.
       ``(c) Coordination With Nonrecognition Provisions; Etc.--
       ``(1) Coordination with nonrecognition provisions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any nonrecognition provision shall apply for purposes of this 
     section to a transaction only in the case of--
       ``(i) an exchange of stock in a domestic corporation for 
     other property the sale of which would be subject to taxation 
     under this chapter, or
       ``(ii) a distribution with respect to which gain or loss 
     would not be recognized under 

[[Page S 13132]]
     section 336 if the sale of the distributed property by the distributee 
     would be subject to tax under this chapter.
       ``(B) Regulations.--The Secretary shall prescribe 
     regulations (which are necessary or appropriate to prevent 
     the avoidance of Federal income taxes) providing--
       ``(i) the extent to which nonrecognition provisions shall, 
     and shall not, apply for purposes of this section, and
       ``(ii) the extent to which--

       ``(I) transfers of property in a reorganization, and
       ``(II) changes in interests in, or distributions from, a 
     partnership, trust, or estate,

     shall be treated as sales of property at fair market value.
       ``(C) Nonrecognition provision.--For purposes of this 
     paragraph, the term `nonrecognition provision' means any 
     provision of this title for not recognizing gain or loss.
       ``(2) Certain other rules made applicable.--For purposes of 
     this section, rules similar to the rules of subsections (g) 
     and (j) of section 897 shall apply.
       ``(d) Certain Interest Treated as Stock.--For purposes of 
     this section--
       ``(1) any option or other right to acquire stock in a 
     domestic corporation,
       ``(2) the conversion feature of any debt instrument issued 
     by a domestic corporation, and
       ``(3) to the extent provided in regulations, any other 
     interest in a domestic corporation other than an interest 
     solely as creditor,

     shall be treated as stock in such corporation.
       ``(e) Treatment of Certain Gain as a Dividend.--In the case 
     of any gain which would be subject to tax by reason of this 
     section but for a treaty and which results from any 
     distribution in liquidation or redemption, for purposes of 
     this subtitle, such gain shall be treated as a dividend to 
     the extent of the earnings and profits of the domestic 
     corporation attributable to the stock. Rules similar to the 
     rules of section 1248(c) (determined without regard to 
     paragraph (2)(D) thereof) shall apply for purposes of the 
     preceding sentence.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including--
       ``(1) regulations coordinating the provisions of this 
     section with the provisions of section 897, and
       ``(2) regulations aggregating stock held by a group of 
     persons acting together.''
       (b) Withholding of Tax.--Subchapter A of chapter 3 of such 
     Code is amended by adding at the end the following new 
     section:

     ``SEC. 1447. WITHHOLDING OF TAX ON CERTAIN STOCK 
                   DISPOSITIONS.

       ``(a) General Rule.--Except as otherwise provided in this 
     section, in the case of any disposition of stock in a 
     domestic corporation by a foreign person who is a 10-percent 
     shareholder in such corporation, the withholding agent shall 
     deduct and withhold a tax equal to 10 percent of the amount 
     realized on the disposition.
       ``(b) Exceptions.--
       ``(1) Stock which is not regularly traded.--In the case of 
     a disposition of stock which is not regularly traded, a 
     withholding agent shall not be required to deduct and 
     withhold any amount under subsection (a) if--
       ``(A) the transferor furnishes to such withholding agent an 
     affidavit by such transferor stating, under penalty of 
     perjury, that section 899 does not apply to such disposition 
     because--
       ``(i) the transferor is not a foreign person, or
       ``(ii) the transferor is not a 10-percent shareholder, and
       ``(B) such withholding agent does not know (or have reason 
     to know) that such affidavit is not correct.
       ``(2) Stock which is regularly traded.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a withholding agent shall not be required to deduct and 
     withhold any amount under subsection (a) with respect to any 
     disposition of regularly traded stock if such withholding 
     agent does not know (or have reason to know) that section 899 
     applies to such disposition.
       ``(B) Special rule where substantial disposition.--If--
       ``(i) there is a disposition of regularly traded stock in a 
     corporation, and
       ``(ii) the amount of stock involved in such disposition 
     constitutes 1 percent or more (by vote or value) of the stock 
     in such corporation,

     subparagraph (A) shall not apply but paragraph (1) shall 
     apply as if the disposition involved stock which was not 
     regularly traded.
       ``(C) Notification by foreign person.--If section 899 
     applies to any disposition by a foreign person of regularly 
     traded stock, such foreign person shall notify the 
     withholding agent that section 899 applies to such 
     disposition.
       ``(3) Nonrecognition transactions.--A withholding agent 
     shall not be required to deduct and withhold any amount under 
     subsection (a) in any case where gain or loss is not 
     recognized by reason of section 899(c) (or the regulations 
     prescribed under such section).
       ``(c) Special Rule Where No Withholding.--If--
       ``(1) there is no amount deducted and withheld under this 
     section with respect to any disposition to which section 899 
     applies, and
       ``(2) the foreign person does not pay the tax imposed by 
     this subtitle to the extent attributable to such disposition 
     on the date prescribed therefor,

     for purposes of determining the amount of such tax, the 
     foreign person's basis in the stock disposed of shall be 
     treated as zero or such other amount as the Secretary may 
     determine (and, for purposes of section 6501, the 
     underpayment of such tax shall be treated as due to a willful 
     attempt to evade such tax).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Withholding agent.--The term `withholding agent' 
     means--
       ``(A) the last United States person to have the control, 
     receipt, custody, disposal, or payment of the amount realized 
     on the disposition, or
       ``(B) if there is no such United States person, the person 
     prescribed in regulations.
       ``(2) Foreign person.--The term `foreign person' means any 
     person other than a United States person.
       ``(3) Regularly traded stock.--The term `regularly traded 
     stock' means any stock of a class which is regularly traded 
     on an established securities market.
       ``(4) Authority to prescribe reduced amount.--At the 
     request of the person making the disposition or the 
     withholding agent, the Secretary may prescribe a reduced 
     amount to be withheld under this section if the Secretary 
     determines that to substitute such reduced amount will not 
     jeopardize the collection of the tax imposed by section 
     871(b)(1) or 882(a)(1).
       ``(5) Other terms.--Except as provided in this section, 
     terms used in this section shall have the same respective 
     meanings as when used in section 899.
       ``(6) Certain rules made applicable.--Rules similar to the 
     rules of section 1445(e) shall apply for purposes of this 
     section.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including regulations coordinating the 
     provisions of this section with the provisions of sections 
     1445 and 1446.''
       (c) Exception From Branch Profits Tax.--Subparagraph (C) of 
     section 884(d)(2) of such Code is amended to read as follows:
       ``(C) gain treated as effectively connected with the 
     conduct of a trade or business within the United States 
     under--
       ``(i) section 897 in the case of the disposition of a 
     United States real property interest described in section 
     897(c)(1)(A)(ii), or
       ``(ii) section 899,''.
       (d) Reports With Respect to Certain Distributions.--
     Paragraph (2) of section 6038B(a) of such Code (relating to 
     notice of certain transfers to foreign person) is amended by 
     striking ``section 336'' and inserting ``section 302, 331, or 
     336''.
       (e) Clerical Amendments.--
       (1) The table of sections for subpart D of part II of 
     subchapter N of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 899. Dispositions of stock in domestic corporations by 10-
              percent foreign shareholders.''

       (2) The table of sections for subchapter A of chapter 3 of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 1447. Withholding of tax on certain stock dispositions.''

       (f) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to dispositions after the date of the enactment of this Act, 
     except that section 1447 of such Code (as added by this 
     section) shall not apply to any disposition before the date 6 
     months after the date of the enactment of this Act.
       (2) Coordination with treaties.--
       (A) In general.--Sections 899 (other than subsection (e) 
     thereof) and 1447 of such Code (as added by this section) 
     shall not apply to any disposition if such disposition is by 
     a qualified resident of a foreign country and the application 
     of such sections to such disposition would be contrary to any 
     treaty between the United States and such foreign country 
     which is in effect on the date of the enactment of this Act 
     and at the time of such disposition.
       (B) Qualified resident.--For purposes of subparagraph (A), 
     the term ``qualified resident'' means any resident of the 
     foreign country entitled to the benefits of the treaty 
     referred to in subparagraph (A); except that such term shall 
     not include a corporation unless such corporation is a 
     qualified resident of such country (as defined in section 
     884(e)(4) of such Code).

     SEC. ____06. PORTFOLIO DEBT.

       (a) In General.--Section 871(h)(3) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(3) Portfolio interest to include only interest on 
     government obligations.--The term `portfolio interest' shall 
     include only interest paid on an obligation issued by a 
     governmental entity.''
       (b) Conforming Amendments.--
       (1) Section 881(c)(3) of such Code is amended--
       (A) in subparagraph (A), by adding ``or'' at the end, and
       (B) by striking subparagraph (B) and redesignating 
     subparagraph (C) as subparagraph (B).
       (2) Section 881(c)(4) of such Code is amended--
       (A) by striking ``section 871(h)(4)'' and inserting 
     ``section 871(h)(3) or (4)'', and
       (B) in the heading, by inserting ``interest on non-
     government obligations or'' after ``include''.

[[Page S 13133]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to interest received after December 31, 1995, 
     with respect to obligations issued after such date.

     SEC. ____07. SOURCE OF INCOME FROM CERTAIN SALES OF INVENTORY 
                   PROPERTY.

       (a) General Rule.--Subsection (b) of section 865 of the 
     Internal Revenue Code of 1986 (relating to exception for 
     inventory property) is amended to read as follows:
       ``(b) Inventory Property.--
       ``(1) Income attributable to production activity.--In the 
     case of income from the sale of inventory property produced 
     (in whole or in part) by the taxpayer--
       ``(A) a portion (determined under regulations) of such 
     income shall be allocated to production activity (and sourced 
     in the United States or outside the United States depending 
     on where such activity occurs), and
       ``(B) the remaining portion of such income shall be sourced 
     under the other provisions of this section.

     The regulations prescribed under subparagraph (A) shall 
     provide that at least 50 percent of such income shall be 
     allocated to production activities.
       ``(2) Sales income.--
       ``(A) United states residents.--Income from the sale of 
     inventory property by a United States resident shall be 
     sourced outside the United States if--
       ``(i) the property is sold for use, consumption, or 
     disposition outside the United States and an office or 
     another fixed place of business of the taxpayer outside the 
     United States participated materially in the sale, and
       ``(ii) such sale is not (directly or indirectly) to an 
     affiliate of the taxpayer.
       ``(B) Nonresident.--Income from the sale of inventory 
     property by a nonresident shall be sourced in the United 
     States if--
       ``(i) the taxpayer has an office or other fixed place of 
     business in the United States, and
       ``(ii) such sale is through such office or other fixed 
     place of business.

     This subparagraph shall not apply if the requirements of 
     clauses (i) and (ii) of subparagraph (A) are met with respect 
     to such sale.
       ``(3) Coordination with treaties.--For purposes of 
     paragraph (2)(A)(i), a United States resident shall not be 
     treated as having an office or fixed place of business in a 
     foreign country if a treaty prevents such country from 
     imposing an income tax on the income.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to income from sales occurring after December 31, 
     1995.

     SEC. ____08. ENHANCEMENT OF BENEFITS FOR FOREIGN SALES 
                   CORPORATIONS.

       (a) In General.--Subsection (a) of section 923 of the 
     Internal Revenue Code of 1986 is amended--
       (1) in paragraph (2), by striking ``32 percent'' and 
     inserting ``34 percent'', and
       (2) in paragraph (3), by striking ``\16/23\'' and inserting 
     ``\17/23\''.
       (b) Special Rules Relating to Corporate Preference Items.--
     Paragraph (4) of section 291(a) of such Code is amended--
       (1) in subparagraph (A), by striking `` `30 percent' for 
     `32 percent' '' and inserting `` `32 percent' for `34 
     percent' '', and
       (2) in subparagraph (B), by striking `` `\15/23\' for `\16/
     23\' '' and inserting `` `\16/23\' for `\17/23\' ''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
                                 ______


                       D'AMATO AMENDMENT NO. 2678

  Mr. SANTORUM (for Mr. D'Amato) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       (1) Except as provided in paragraph (2) of this subsection, 
     in order for an eligible State to receive funds pursuant to 
     Title I of this Act after April 1, 1996, the State Shall 
     enact legislation establishing a program fully conforming to 
     the requirements of this Act by that date and effective on 
     the date of discontinuance of the state's afdc program, in 
     accordance with section 112 of this act.
       (2) In the case of a State whose legislature meets 
     biennially, and does not have a regular session scheduled in 
     calendar year 1996, the requirement contained in paragraph 
     (1) of this subsection shall be effective no 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 enactment of this Act.
                                 ______


                        KERRY AMENDMENT NO. 2679

  Mr. MOYNIHAN (for Mr. Kerry) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra, as follows:

       On page 124, beginning on line 16, strike all through page 
     127, line 2.
       On page 127, line 3, strike ``SEC. 202.'' and insert ``SEC. 
     201.''.
       On page 128, line 14, strike ``SEC. 203.'' and insert 
     ``SEC. 202.''.
       On page 129, line 7, strike ``SEC. 204.'' and insert ``SEC. 
     203.''.
       On page 129, beginning on line 9, strike all through line 
     12, and insert:
       (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)) is 
     amended by adding at the end the following new paragraph:
       On page 129, line 13, strike ``(3)'' and insert ``(6)''.
       On page 131, line 6, strike ``SEC. 205.'' and insert ``SEC. 
     204.''.
       On page 131, line 5, strike ``Sections 201 and 202'' and 
     insert ``Section 201''.
       On page 131, lines 7 and 8, strike ``sections 201 and 202'' 
     and insert ``section 201''.
       On page 131, line 21, strike ``or 202''.
       On page 132, beginning on line 19, strike all through page 
     133, line 9.
       On page 133, line 11, strike ``sections 203 and 204'' and 
     insert ``sections 202 and 203''.
       On page 133, lines 17 and 18, strike ``, as amended by 
     section 201(a),''.
                                 ______


                       HARKIN AMENDMENT NO. 2680

  Mr. MOYNIHAN (for Mr. Harkin) proposed an amendment to amendment No. 
2280 proposed by Mr. Dole to the bill H.R. 4, supra; as follows:

       At the appropriate place insert the following:

     SEC.   . SENSE OF THE SENATE REGARDING COMPETITIVE BIDDING 
                   FOR INFANT FORMULA.

       (a) In General.--The Senate finds that--
       (1) the federal Supplemental Nutrition Program for Women, 
     Infants and Children (WIC) is a proven success story, 
     providing special nutrition and health assistance to at-risk 
     pregnant women, infants and children;
       (2) WIC has been shown to reduce the incidence of fetal 
     death, low birthweight, infant mortality and anemia, to 
     increase the nutritional and health status of pregnant women, 
     infants and children and to improve the cognitive development 
     of infants and children;
       (3) research has shown that each dollar spent on WIC for 
     pregnant women results in savings of $1.92 to $4.21 in 
     Medicaid expenditures;
       (4) because of funding limitations not all individuals 
     eligible for WIC assistance are served by the program;
       (5) infant formula is a significant item in the cost of WIC 
     monthly food packages, amounting to approximately 26 percent 
     of WIC food costs after subtracting manufacturer's rebates, 
     but approximately 48 percent of food costs prior to applying 
     rebates;
       (6) rebates obtained through competitive bidding for infant 
     formula have reduced the cost of infant formula for WIC 
     participants by approximately $4.1 billion through the end of 
     fiscal year 1994, allowing millions of additional pregnant 
     women, infants and children to be served by WIC with the 
     limited funds available;
       (7) the Department of Agriculture has estimated that in 
     fiscal year 1995 rebates obtained through competitive bidding 
     for infant formula will total over $1 billion, which will 
     enable WIC to serve approximately 1.6 million additional 
     women, infants and children; and
       (8) because of the very substantial cost savings involved, 
     Congress enacted in 1989 legislation requiring that states 
     administering the WIC program conduct competitive bidding for 
     infant formula.
       (b) Sense of the Senate.--It is the Sense of the Senate 
     that any legislation enacted by Congress should not eliminate 
     or in any way weaken the present competitive bidding 
     requirements for the purchase of infant formula with respect 
     to any program supported wholly or in part by federal funds.
     

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