[Congressional Record Volume 141, Number 206 (Thursday, December 21, 1995)]
[House]
[Pages H15317-H15487]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page H15317]]


     CONFERENCE REPORT ON H.R. 4, PERSONAL RESPONSIBILITY AND WORK 
                        OPPORTUNITY ACT OF 1995

  Mr. ARCHER submitted the following conference report and statement on 
Wednesday, December 20, 1995, on the bill (H.R. 4) to restore the 
American family, reduce illgitimacy, control welfare spending, and 
reduce welfare dependence:

                  Conference Report (H. Rept. 104-430)

         The committee of conference on the disagreeing votes of 
     the two Houses on the amendments of the Senate to the bill 
     (H.R. 4), to restore the American family, reduce 
     illegitimacy, control welfare spending and reduce welfare 
     dependence, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
         That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
         In lieu of the matter proposed to be inserted by the 
     Senate amendment, insert the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

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

Sec. 101. Findings.
Sec. 102. Reference to Social Security Act.
Sec. 103. Block grants to States.
Sec. 104. Services provided by charitable, religious, or private 
              organizations.
Sec. 105. Census data on grandparents as primary caregivers for their 
              grandchildren.
Sec. 106. Report on data processing.
Sec. 107. Study on alternative outcomes measures.
Sec. 108. Conforming amendments to the Social Security Act.
Sec. 109. Conforming amendments to the Food Stamp Act of 1977 and 
              related provisions.
Sec. 110. Conforming amendments to other laws.
Sec. 111. Development of prototype of counterfeit-resistant social 
              security card required.
Sec. 112. Disclosure of receipt of Federal funds.
Sec. 113. Modifications to the job opportunities for certain low-income 
              individuals program.
Sec. 114. Medicaid eligibility under title IV of the Social Security 
              Act.
Sec. 115. Secretarial submission of legislative proposal for technical 
              and conforming amendments.
Sec. 116. Effective date; transition rule.

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

                  Subtitle A--Eligibility Restrictions

Sec. 201. Denial of SSI benefits for 10 years to individuals found to 
              have fraudulently misrepresented residence in order to 
              obtain benefits simultaneously in 2 or more States.
Sec. 202. Denial of SSI benefits for fugitive felons and probation and 
              parole violators.

               Subtitle B--Benefits for Disabled Children

Sec. 211. Definition and eligibility rules.
Sec. 212. Eligibility redeterminations and continuing disability 
              reviews.
Sec. 213. Additional accountability requirements.
Sec. 214. Reduction in cash benefits payable to institutionalized 
              individuals whose medical costs are covered by private 
              insurance.
Sec. 215. Regulations.

               Subtitle C--State Supplementation Programs

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

   Subtitle D--Studies Regarding Supplemental Security Income Program

Sec. 231. Annual report on the supplemental security income program.
Sec. 232. Study of disability determination process.
Sec. 233. Study by General Accounting Office.

      Subtitle E--National Commission on the Future of Disability

Sec. 241. Establishment.
Sec. 242. Duties of the Commission.
Sec. 243. Membership.
Sec. 244. Staff and support services.
Sec. 245. Powers of Commission.
Sec. 246. Reports.
Sec. 247. Termination.
Sec. 248. Authorization of appropriations.

                 Subtitle F--Retirement Age Eligibility

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

                        TITLE III--CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 301. State obligation to provide child support enforcement 
              services.
Sec. 302. Distribution of child support collections.
Sec. 303. Privacy safeguards.
Sec. 304. Rights to notification and hearings.

                  Subtitle B--Locate and Case Tracking

Sec. 311. State case registry.
Sec. 312. Collection and disbursement of support payments.
Sec. 313. State directory of new hires.
Sec. 314. Amendments concerning income withholding.
Sec. 315. Locator information from interstate networks.
Sec. 316. Expansion of the Federal parent locator service.
Sec. 317. Collection and use of social security numbers for use in 
              child support enforcement.

         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 321. Adoption of uniform State laws.
Sec. 322. Improvements to full faith and credit for child support 
              orders.
Sec. 323. Administrative enforcement in interstate cases.
Sec. 324. Use of forms in interstate enforcement.
Sec. 325. State laws providing expedited procedures.

                  Subtitle D--Paternity Establishment

Sec. 331. State laws concerning paternity establishment.
Sec. 332. Outreach for voluntary paternity establishment.
Sec. 333. Cooperation by applicants for and recipients of temporary 
              family assistance.

             Subtitle E--Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.

[[Page H15318]]

Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 351. Simplified process for review and adjustment of child support 
              orders.
Sec. 352. Furnishing consumer reports for certain purposes relating to 
              child support.
Sec. 353. Nonliability for financial institutions providing financial 
              records to State child support enforcement agencies in 
              child support cases.

               Subtitle G--Enforcement of Support Orders

Sec. 361. Internal Revenue Service collection of arrearages.
Sec. 362. Authority to collect support from Federal employees.
Sec. 363. Enforcement of child support obligations of members of the 
              Armed Forces.
Sec. 364. Voiding of fraudulent transfers.
Sec. 365. Work requirement for persons owing past-due child support.
Sec. 366. Definition of support order.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Liens.
Sec. 369. State law authorizing suspension of licenses.
Sec. 370. Denial of passports for nonpayment of child support.
Sec. 371. International child support enforcement.
Sec. 372. Financial institution data matches.
Sec. 373. Enforcement of orders against paternal or maternal 
              grandparents in cases of minor parents.
Sec. 374. Nondischargeability in bankruptcy of certain debts for the 
              support of a child.

                      Subtitle H--Medical Support

Sec. 376. Correction to ERISA definition of medical child support 
              order.
Sec. 377. Enforcement of orders for health care coverage.

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

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

                    Subtitle J--Effect of Enactment

Sec. 391. Effective dates.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

              Subtitle A--Eligibility for Federal Benefits

Sec. 401. Aliens who are not qualified aliens ineligible for Federal 
              public benefits.
Sec. 402. Limited eligibility of certain qualified aliens for certain 
              Federal programs.
Sec. 403. Five-year limited eligibility of qualified aliens for Federal 
              means-tested public benefit.
Sec. 404. Notification and information reporting.

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

Sec. 411. Aliens who are not qualified aliens or nonimmigrants 
              ineligible for State and local public benefits.
Sec. 412. State authority to limit eligibility of qualified aliens for 
              State public benefits.

      Subtitle C--Attribution of Income and Affidavits of Support

Sec. 421. Federal attribution of sponsor's income and resources to 
              alien.
Sec. 422. Authority for States to provide for attribution of sponsors 
              income and resources to the alien with respect to State 
              programs.
Sec. 423. Requirements for sponsor's affidavit of support.
Sec. 424. Cosignature of alien student loans.

                     Subtitle D--General Provisions

Sec. 431. Definitions.
Sec. 432. Reapplication for SSI benefits.
Sec. 433. Verification of eligibility for Federal public benefits.
Sec. 434. Statutory construction.
Sec. 435. Communication between State and local government agencies, 
              and the Immigration and Naturalization Service.
Sec. 436. Qualifying quarters.

                   Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

Sec. 501. Reductions.
Sec. 502. Reductions in Federal bureaucracy.
Sec. 503. Reducing personnel in Washington, D.C. Area.

                   TITLE VI--REFORM OF PUBLIC HOUSING

Sec. 601. Failure to comply with other welfare and public assistance 
              programs.
Sec. 602. Fraud under means-tested welfare and public assistance 
              programs.
Sec. 603. Effective date.

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

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

Sec. 701. Establishment of program.
Sec. 702. Conforming amendments.
Sec. 703. Transfer and amendment to foster care protection requirement.
Sec. 704. Effective date; transition rule.
Sec. 705. Sense of the Congress regarding timely adoption of children.

           Subtitle B--Child and Family Services Block Grant

Sec. 751. Child and family services block grant.
Sec. 752. Reauthorizations.
Sec. 753. Repeals.

                         TITLE VIII--CHILD CARE

Sec. 801. Short title and references.
Sec. 802. Goals.
Sec. 803. Authorization of appropriations.
Sec. 804. Lead agency.
Sec. 805. Application and plan.
Sec. 806. Limitation on State allotments.
Sec. 807. Activities to improve the quality of child care.
Sec. 808. Repeal of early childhood development and before- and after-
              school care requirement.
Sec. 809. Administration and enforcement.
Sec. 810. Payments.
Sec. 811. Annual report and audits.
Sec. 812. Report by the Secretary.
Sec. 813. Allotments.
Sec. 814. Definitions.
Sec. 815. Repeals.

                   TITLE IX--CHILD NUTRITION PROGRAMS

                 Subtitle A--National School Lunch Act

Sec. 901. State disbursement to schools.
Sec. 902. Nutritional and other program requirements.
Sec. 903. Free and reduced price policy statement.
Sec. 904. Special assistance.
Sec. 905. Miscellaneous provisions and definitions.
Sec. 906. Summer food service program for children.
Sec. 907. Commodity distribution.
Sec. 908. Child care food program.
Sec. 909. Pilot projects.
Sec. 910. Reduction of paperwork.
Sec. 911. Information on income eligibility.
Sec. 912. Nutrition guidance for child nutrition programs.
Sec. 913. Information clearinghouse.
Sec. 914. School nutrition optional block grant demonstration program.

                Subtitle B--Child Nutrition Act of 1966

Sec. 921. Special milk program.
Sec. 922. Free and reduced price policy statement.
Sec. 923. School breakfast program authorization.
Sec. 924. State administrative expenses.
Sec. 925. Regulations.
Sec. 926. Prohibitions.
Sec. 927. Miscellaneous provisions and definitions.
Sec. 928. Accounts and records.
Sec. 929. Special supplemental nutrition program for women, infants, 
              and children.
Sec. 930. Cash grants for nutrition education.
Sec. 931. Nutrition education and training.
Sec. 932. Breastfeeding promotion program.

            TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

Sec. 1001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household 
              determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program 
              requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp 
              benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance 
              programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and 
              wholesale food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization 
              criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.

[[Page H15319]]

Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification 
              systems.
Sec. 1050. Disqualification of retailers who intentionally submit 
              falsified applications.
Sec. 1051. Disqualification of retailers who are disqualified under the 
              WIC program.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements 
              pending administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Authorization of pilot projects.
Sec. 1060. Response to waivers.
Sec. 1061. Employment initiatives program.
Sec. 1062. Adjustable food stamp cap.
Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 1064. Simplified food stamp program.
Sec. 1065. State food assistance block grant.
Sec. 1066. American Samoa.
Sec. 1067. Assistance for community food projects.

              Subtitle B--Commodity Distribution Programs

Sec. 1071. Commodity distribution program; commodity supplemental food 
              program.
Sec. 1072. Emergency food assistance program.
Sec. 1073. Food bank demonstration project.
Sec. 1074. Hunger prevention programs.
Sec. 1075. Report on entitlement commodity processing.
Sec. 1076. National commodity processing.

                        TITLE XI--MISCELLANEOUS

                     Subtitle A--General Provisions

Sec. 1101. Expenditure of Federal funds in accordance with laws and 
              procedures applicable to expenditure of State funds.
Sec. 1102. Elimination of housing assistance with respect to fugitive 
              felons and probation and parole violators.
Sec. 1103. Sense of the Senate regarding enterprise zones.
Sec. 1104. Sense of the Senate regarding the inability of the non-
              custodial parent to pay child support.
Sec. 1105. Food stamp eligibility.
Sec. 1106. Establishing national goals to prevent teenage pregnancies.
Sec. 1107. Sense of the Senate regarding enforcement of statutory rape 
              laws.
Sec. 1108. Sanctioning for testing positive for controlled substances.
Sec. 1109. Abstinence education.
Sec. 1110. Provisions to encourage electronic benefit transfer systems.
Sec. 1111. Reduction in block grants to States for social services.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

     SEC. 101. FINDINGS.

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

     SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

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

     SEC. 103. BLOCK GRANTS TO STATES.

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

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

     ``SEC. 401. PURPOSE.

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

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

       ``(a) In General.--As used in this part, the term `eligible 
     State' means, with respect to a fiscal year, a State that, 
     during the 2-year period 

[[Page H15320]]
     immediately preceding the fiscal year, has submitted to the Secretary a 
     plan that includes the following:
       ``(1) Outline of family assistance program.--
       ``(A) General provisions.--A written document that outlines 
     how the State intends to do the following:
       ``(i) Conduct a program, designed to serve all political 
     subdivisions in the State, that provides assistance to needy 
     families with (or expecting) children and provides parents 
     with job preparation, work, and support services to enable 
     them to leave the program and become self-sufficient.
       ``(ii) Require a parent or caretaker receiving assistance 
     under the program to engage in work (as defined by the State) 
     once the State determines the parent or caretaker is ready to 
     engage in work, or once the parent or caretaker has received 
     assistance under the program for 24 months (whether or not 
     consecutive), whichever is earlier.
       ``(iii) Ensure that parents and caretakers receiving 
     assistance under the program engage in work activities in 
     accordance with section 407.
       ``(iv) Take such reasonable steps as the State deems 
     necessary to restrict the use and disclosure of information 
     about individuals and families receiving assistance under the 
     program attributable to funds provided by the Federal 
     Government.
       ``(v) Establish goals and take action to prevent and reduce 
     the incidence of out-of-wedlock pregnancies, with special 
     emphasis on teenage pregnancies, and establish numerical 
     goals for reducing the illegitimacy ratio of the State (as 
     defined in section 403(a)(2)(B)) for calendar years 1996 
     through 2005.
       ``(B) Special provisions.--
       ``(i) The document shall indicate whether the State intends 
     to treat families moving into the State from another State 
     differently than other families under the program, and if so, 
     how the State intends to treat such families under the 
     program.
       ``(ii) The document shall indicate whether the State 
     intends to provide assistance under the program to 
     individuals who are not citizens of the United States, and if 
     so, shall include an overview of such assistance.
       ``(2) Certification that the state will operate a child 
     support enforcement program.--A certification by the chief 
     executive officer of the State that, during the fiscal year, 
     the State will operate a child support enforcement program 
     under the State plan approved under part D.
       ``(3) Certification that the state will operate a child 
     protection program.--A certification by the chief executive 
     officer of the State that, during the fiscal year, the State 
     will operate a child protection program under the State plan 
     approved under part B.
       ``(4) Certification of the administration of the program.--
     A certification by the chief executive officer of the State 
     specifying which State agency or agencies will administer and 
     supervise the program referred to in paragraph (1) for the 
     fiscal year, which shall include assurances that local 
     governments and private sector organizations--
       ``(A) have been consulted regarding the plan and design of 
     welfare services in the State so that services are provided 
     in a manner appropriate to local populations; and
       ``(B) have had at least 60 days to submit comments on the 
     plan and the design of such services.
       ``(5) Certification that the state will provide indians 
     with equitable access to assistance.--A certification by the 
     chief executive officer of the State that, during the fiscal 
     year, the State will provide each Indian who is a member of 
     an Indian tribe in the State that does not have a tribal 
     family assistance plan approved under section 412 with 
     equitable access to assistance under the State program funded 
     under this part attributable to funds provided by the Federal 
     Government.
       ``(b) Public Availability of State Plan Summary.--The State 
     shall make available to the public a summary of any plan 
     submitted by the State under this section.

     ``SEC. 403. GRANTS TO STATES.

       ``(a) Grants.--
       ``(1) Family assistance grant.--
       ``(A) In general.--Each eligible State shall be entitled to 
     receive from the Secretary, for each of fiscal years 1996, 
     1997, 1998, 1999, 2000, and 2001 a grant in an amount equal 
     to the State family assistance grant.
       ``(B) State family assistance grant defined.--As used in 
     this part, the term `State family assistance grant' means the 
     greatest of--
       ``(i) \1/3\ of the total amount required to be paid to the 
     State under former section 403 (as in effect on September 30, 
     1995) for fiscal years 1992, 1993, and 1994 (other than with 
     respect to amounts expended by the State for child care under 
     subsection (g) or (i) of former section 402 (as so in 
     effect));
       ``(ii)(I) the total amount required to be paid to the State 
     under former section 403 for fiscal year 1994 (other than 
     with respect to amounts expended by the State for child care 
     under subsection (g) or (i) of former section 402 (as so in 
     effect)); plus
       ``(II) an amount equal to 85 percent of the amount (if any) 
     by which the total amount required to be paid to the State 
     under former section 403(a)(5) for emergency assistance for 
     fiscal year 1995 exceeds the total amount required to be paid 
     to the State under former section 403(a)(5) for fiscal year 
     1994, if, during fiscal year 1994, the Secretary approved 
     under former section 402 an amendment to the former State 
     plan with respect to the provision of emergency assistance in 
     the context of family preservation; or
       ``(iii) \4/3\ of the total amount required to be paid to 
     the State under former section 403 (as in effect on September 
     30, 1995) for the 1st 3 quarters of fiscal year 1995 (other 
     than with respect to amounts expended by the State under the 
     State plan approved under part F (as so in effect) or for 
     child care under subsection (g) or (i) of former section 402 
     (as so in effect)), plus the total amount required to be paid 
     to the State for fiscal year 1995 under former section 403(l) 
     (as so in effect).
       ``(C) Total amount required to be paid to the state under 
     former section 403 defined.--As used in this part, the term 
     `total amount required to be paid to the State under former 
     section 403' means, with respect to a fiscal year--
       ``(i) in the case of a State to which section 1108 does not 
     apply, the sum of--

       ``(I) the Federal share of maintenance assistance 
     expenditures for the fiscal year, before reduction pursuant 
     to subparagraph (B) or (C) of section 403(b)(2) (as in effect 
     on September 30, 1995), as reported by the State on ACF Form 
     231;
       ``(II) the Federal share of administrative expenditures 
     (including administrative expenditures for the development of 
     management information systems) for the fiscal year, as 
     reported by the State on ACF Form 231;
       ``(III) the Federal share of emergency assistance 
     expenditures for the fiscal year, as reported by the State on 
     ACF Form 231;
       ``(IV) the Federal share of expenditures for the fiscal 
     year with respect to child care pursuant to subsections (g) 
     and (i) of former section 402 (as in effect on September 30, 
     1995), as reported by the State on ACF Form 231; and
       ``(V) the aggregate amount required to be paid to the State 
     for the fiscal year with respect to the State program 
     operated under part F (as in effect on September 30, 1995), 
     as determined by the Secretary, including additional 
     obligations or reductions in obligations made after the close 
     of the fiscal year; and

       ``(ii) in the case of a State to which section 1108 
     applies, the lesser of--

       ``(I) the sum described in clause (i); or
       ``(II) the total amount certified by the Secretary under 
     former section 403 (as in effect during the fiscal year) with 
     respect to the territory.

       ``(D) Information to be used in determining amounts.--
       ``(i) For fiscal years 1992 and 1993.--

       ``(I) In determining the amounts described in subclauses 
     (I) through (IV) of subparagraph (C)(i) for any State for 
     each of fiscal years 1992 and 1993, the Secretary shall use 
     information available as of April 28, 1995.
       ``(II) In determining the amount described in subparagraph 
     (C)(i)(V) for any State for each of fiscal years 1992 and 
     1993, the Secretary shall use information available as of 
     January 6, 1995.

       ``(ii) For fiscal year 1994.--In determining the amounts 
     described in subparagraph (C)(i) for any State for fiscal 
     year 1994, the Secretary shall use information available as 
     of April 28, 1995.
       ``(iii) For fiscal year 1995.--

       ``(I) In determining the amount described in subparagraph 
     (B)(ii)(II) for any State for fiscal year 1995, the Secretary 
     shall use the information which was reported by the States 
     and estimates made by the States with respect to emergency 
     assistance expenditures and was available as of August 11, 
     1995.
       ``(I) In determining the amounts described in subclauses 
     (I) through (IV) of subparagraph (C)(i) for any State for 
     fiscal year 1995, the Secretary shall use information 
     available as of October 2, 1995.
       ``(II) In determining the amount described in subparagraph 
     (C)(i)(V) for any State for fiscal year 1995, the Secretary 
     shall use information available as of October 5, 1995.

       ``(E) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for fiscal years 1996, 1997, 1998, 1999, 2000, 
     and 2001 such sums as are necessary for grants under this 
     paragraph.
       ``(2) Grant to reward states that reduce out-of-wedlock 
     births.--
       ``(A) In general.--In addition to any grant under paragraph 
     (1), each eligible State shall be entitled to receive from 
     the Secretary for fiscal year 1998 or any succeeding fiscal 
     year, a grant in an amount equal to the State family 
     assistance grant multiplied by--
       ``(i) 5 percent if--

       ``(I) the illegitimacy ratio of the State for the fiscal 
     year is at least 1 percentage point lower than the 
     illegitimacy ratio of the State for fiscal year 1995; and
       ``(II) the rate of induced pregnancy terminations in the 
     State for the fiscal year is less than the rate of induced 
     pregnancy terminations in the State for fiscal year 1995; or

       ``(ii) 10 percent if--

       ``(I) the illegitimacy ratio of the State for the fiscal 
     year is at least 2 percentage points lower than the 
     illegitimacy ratio of the State for fiscal year 1995; and
       ``(II) the rate of induced pregnancy terminations in the 
     State for the fiscal year is less than the rate of induced 
     pregnancy terminations in the State for fiscal year 1995.

       ``(B) Illegitimacy ratio.--As used in this paragraph, the 
     term `illegitimacy ratio' means, with respect to a State and 
     a fiscal year--
       ``(i) the number of out-of-wedlock births that occurred in 
     the State during the most recent fiscal year for which such 
     information is available; divided by
       ``(ii) the number of births that occurred in the State 
     during the most recent fiscal year for which such information 
     is available.
       ``(C) Disregard of changes in data due to changed reporting 
     methods.--For purposes of subparagraph (A), the Secretary 
     shall disregard--
       ``(i) any difference between the illegitimacy ratio of a 
     State for a fiscal year and the illegitimacy ratio of the 
     State for fiscal year 1995 which is attributable to a change 
     in State methods of reporting data used to calculate the 
     illegitimacy ratio; and
     
[[Page H15321]]

       ``(ii) any difference between the rate of induced pregnancy 
     terminations in a State for a fiscal year and such rate for 
     fiscal year 1995 which is attributable to a change in State 
     methods of reporting data used to calculate such rate.
       ``(D) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for fiscal year 1998 and for each succeeding 
     fiscal year such sums as are necessary for grants under this 
     paragraph.
       ``(3) Supplemental grant for population increases in 
     certain states.--
       ``(A) In general.--Each qualifying State shall, subject to 
     subparagraph (F), be entitled to receive from the Secretary--
       ``(i) for fiscal year 1997 a grant in an amount equal 2.5 
     percent of the total amount required to be paid to the State 
     under former section 403 (as in effect during fiscal year 
     1994) for fiscal year 1994; and
       ``(ii) for each of fiscal years 1998, 1999, and 2000, a 
     grant in an amount equal to the sum of--

       ``(I) the amount (if any) required to be paid to the State 
     under this paragraph for the immediately preceding fiscal 
     year; and
       ``(II) 2.5 percent of the sum of--

       ``(aa) the total amount required to be paid to the State 
     under former section 403 (as in effect during fiscal year 
     1994) for fiscal year 1994; and
       ``(bb) the amount (if any) required to be paid to the State 
     under this paragraph for the fiscal year preceding the fiscal 
     year for which the grant is to be made.
       ``(B) Preservation of grant without increases for states 
     failing to remain qualifying states.--Each State that is not 
     a qualifying State for a fiscal year specified in 
     subparagraph (A)(ii) but was a qualifying State for a prior 
     fiscal year shall, subject to subparagraph (F), be entitled 
     to receive from the Secretary for the specified fiscal year, 
     a grant in an amount equal to the amount required to be paid 
     to the State under this paragraph for the most recent fiscal 
     year for which the State was a qualifying State.
       ``(C) Qualifying state.--
       ``(i) In general.--For purposes of this paragraph, a State 
     is a qualifying State for a fiscal year if--

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

       ``(ii) State must qualify in fiscal year 1997.--
     Notwithstanding clause (i), a State shall not be a qualifying 
     State for any fiscal year after 1997 by reason of clause (i) 
     if the State is not a qualifying State for fiscal year 1997 
     by reason of clause (i).
       ``(iii) Certain states deemed qualifying states.--For 
     purposes of this paragraph, a State is deemed to be a 
     qualifying State for fiscal years 1997, 1998, 1999, and 2000 
     if--

       ``(I) the level of welfare spending per poor person by the 
     State for fiscal year 1996 is less than 35 percent of the 
     national average level of State welfare spending per poor 
     person for fiscal year 1996; or
       ``(II) the population of the State increased by more than 
     10 percent from April 1, 1990 to July 1, 1994, as determined 
     by the Bureau of the Census.

       ``(D) Definitions.--As used in this paragraph:
       ``(i) Level of welfare spending per poor person.--The term 
     `level of State welfare spending per poor person' means, with 
     respect to a State and a fiscal year--

       ``(I) the sum of--

       ``(aa) the total amount required to be paid to the State 
     under former section 403 (as in effect during fiscal year 
     1994) for fiscal year 1994; and
       ``(bb) the amount (if any) paid to the State under this 
     paragraph for the immediately preceding fiscal year; divided 
     by

       ``(II) the number of individuals, according to the 1990 
     decennial census, who were residents of the State and whose 
     income was below the poverty line.

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

       ``(I) the total amount required to be paid to the States 
     under former section 403 (as in effect during fiscal year 
     1994) for fiscal year 1994; divided by
       ``(II) the number of individuals, according to the 1990 
     decennial census, who were residents of any State and whose 
     income was below the poverty line.

       ``(iii) State.--The term `State' means each of the 50 
     States of the United States and the District of Columbia.
       ``(E) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for fiscal years 1997, 1998, 1999, and 2000 such 
     sums as are necessary for grants under this paragraph, in a 
     total amount not to exceed $800,000,000.
       ``(F) Grants reduced pro rata if insufficient 
     appropriations.--If the amount appropriated pursuant to this 
     paragraph for a fiscal year is less than the total amount of 
     payments otherwise required to be made under this paragraph 
     for the fiscal year, then the amount otherwise payable to any 
     State for the fiscal year under this paragraph shall be 
     reduced by a percentage equal to the amount so appropriated 
     divided by such total amount.
       ``(G) Budget scoring.--Notwithstanding section 257(b)(2) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, the baseline shall assume that no grant shall be made 
     under this paragraph after fiscal year 2000.
       ``(b) Contingency Fund.--
       ``(1) Establishment.--There is hereby established in the 
     Treasury of the United States a fund which shall be known as 
     the `Contingency Fund for State Welfare Programs' (in this 
     section referred to as the `Fund').
       ``(2) Deposits into fund.--Out of any money in the Treasury 
     of the United States not otherwise appropriated, there are 
     appropriated for fiscal years 1997, 1998, 1999, 2000, and 
     2001 such sums as are necessary for payment to the Fund in a 
     total amount not to exceed $1,000,000,000.
       ``(3) Grants.--From amounts appropriated pursuant to 
     paragraph (2), the Secretary of the Treasury shall pay to 
     each eligible State for a fiscal year an amount equal to the 
     lesser of--
       ``(A) the Federal medical assistance percentage for the 
     State for the fiscal year (as defined in section 1905(b), as 
     in effect on September 30, 1995) of the amount (if any) by 
     which the expenditures of the State in the fiscal year under 
     the State program funded under this part exceed the historic 
     State expenditures (as defined in section 409(a)(7)(B)(iii)) 
     for the State with respect to the fiscal year; or
       ``(B) 20 percent of the State family assistance grant for 
     the fiscal year.
       ``(4) Eligible state.--For purposes of this subsection, a 
     State is an eligible State for a fiscal year, if--
       ``(A) the average rate of total unemployment in such State 
     (seasonally adjusted) for the period consisting of the most 
     recent 3 months for which data for all States are published 
     equals or exceeds 6.5 percent;
       ``(B) the average rate of total unemployment in such State 
     (seasonally adjusted) for the 3-month period equals or 
     exceeds 110 percent of such average rate for either (or both) 
     of the corresponding 3-month periods ending in the 2 
     preceding calendar years; and
       ``(C) the total amount expended by the State during the 
     fiscal year under the State program funded under this part is 
     not less than 100 percent of the level of historic State 
     expenditures (as defined in section 409(a)(7)(B)(iii)) with 
     respect to the fiscal year.
       ``(5) State.--As used in this subsection, the term `State' 
     means each of the 50 States of the United States and the 
     District of Columbia.
       ``(6) Payment priority.--The Secretary shall make payments 
     under paragraph (3) in the order in which the Secretary 
     receives claims for such payments.
       ``(7) Annual reports.--The Secretary of the Treasury shall 
     annually report to the Congress on the status of the Fund.
       ``(8) Budget scoring.--Notwithstanding section 257(b)(2) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, the baseline shall assume that no grant shall be made 
     under this subsection after fiscal year 2001.

     ``SEC. 404. USE OF GRANTS.

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

[[Page H15322]]
     grant is made under section 403 is encouraged to implement an 
     electronic benefit transfer system for providing assistance 
     under the State program funded under this part, and may use 
     the grant for such purpose.

     ``SEC. 405. ADMINISTRATIVE PROVISIONS.

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

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

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

     ``SEC. 407. MANDATORY WORK REQUIREMENTS.

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

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

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

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

       ``(b) Calculation of Participation Rates.--
       ``(1) All families.--
       ``(A) Average monthly rate.--For purposes of subsection 
     (a)(1), the participation rate for all families of a State 
     for a fiscal year is the average of the participation rates 
     for all families of the State for each month in the fiscal 
     year.
       ``(B) Monthly participation rates.--The participation rate 
     of a State for all families of the State for a month, 
     expressed as a percentage, is--
       ``(i) the number of families receiving assistance under the 
     State program funded under this part that include an adult 
     who is engaged in work for the month; divided by
       ``(ii) the amount by which--

       ``(I) the number of families receiving such assistance 
     during the month that include an adult receiving such 
     assistance; exceeds
       ``(II) the number of families receiving such assistance 
     that are subject in such month to a penalty described in 
     subsection (e)(1) but have not been subject to such penalty 
     for more than 3 months within the preceding 12-month period 
     (whether or not consecutive).

       ``(2) 2-parent families.--
       ``(A) Average monthly rate.--For purposes of subsection 
     (a)(2), the participation rate for 2-parent families of a 
     State for a fiscal year is the average of the participation 
     rates for 2-parent families of the State for each month in 
     the fiscal year.
       ``(B) Monthly participation rates.--The participation rate 
     of a State for 2-parent families of the State for a month 
     shall be calculated by use of the formula set forth in 
     paragraph (1)(B), except that in the formula the term `number 
     of 2-parent families' shall be substituted for the term 
     `number of families' each place such latter term appears.
       ``(3) Pro rata reduction of participation rate due to 
     caseload reductions not required by federal law.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations for reducing the minimum participation rate 
     otherwise required by this section for a fiscal year by the 
     number of percentage points equal to the number of percentage 
     points (if any) by which--
       ``(i) the number of families receiving assistance during 
     the fiscal year under the State program funded under this 
     part is less than
       ``(ii) the number of families that received aid under the 
     State plan approved under part A (as in effect on September 
     30, 1995) during fiscal year 1995.

     The minimum participation rate shall not be reduced to the 
     extent that the Secretary determines that the reduction in 
     the number of families receiving such assistance is required 
     by Federal law.
       ``(B) Eligibility changes not counted.--The regulations 
     described in subparagraph (A) shall not take into account 
     families that are diverted from a State program funded under 
     this part as a result of differences in eligibility criteria 
     under a State program funded under this part and eligibility 
     criteria under the State program operated under the State 
     plan approved under part A (as such plan and such part were 
     in effect on September 30, 1995). Such regulations shall 
     place the burden on the Secretary to prove that such families 
     were diverted as a direct result of differences in such 
     eligibility criteria.
       ``(4) State option to include individuals receiving 
     assistance under a tribal family assistance plan.--For 
     purposes of paragraphs (1)(B) and (2)(B), a State may, at its 
     option, include families receiving assistance under a tribal 
     family assistance plan approved under section 412.
       ``(5) State option for participation requirement 
     exemptions.--For any fiscal year, a State may, at its option, 
     not require an individual who is a single custodial parent 
     caring for a child who has not attained 12 months of age to 
     engage in work and may disregard such an individual in 
     determining the participation rates under subsection (a).
       ``(c) Engaged in Work.--
       ``(1) All families.--For purposes of subsection 
     (b)(1)(B)(i), a recipient is engaged in 

[[Page H15323]]
     work for a month in a fiscal year if the recipient is participating in 
     such activities for at least the minimum average number of 
     hours per week specified in the following table during the 
     month, not fewer than 20 hours per week of which are 
     attributable to an activity described in paragraph (1), (2), 
     (3), (4), (5), (7), or (8) of subsection (d) (or, in the case 
     of the first 4 weeks for which the recipient is required 
     pursuant to this section to participate in work activities, 
     an activity described in subsection (d)(6)):

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

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

       ``(2) 2-parent families.--For purposes of subsection 
     (b)(2)(B)(i), an adult is engaged in work for a month in a 
     fiscal year if the adult is making progress in such 
     activities for at least 35 hours per week during the month, 
     not fewer than 30 hours per week of which are attributable to 
     an activity described in paragraph (1), (2), (3), (4), (5), 
     (7), or (8) of subsection (d) (or, in the case of the first 4 
     weeks for which the recipient is required pursuant to this 
     section to participate in work activities, an activity 
     described in subsection (d)(6)).
       ``(3) Limitation on vocational education activities counted 
     as work.--For purposes of determining monthly participation 
     rates under paragraphs (1)(B)(i) and (2)(B)(i) of subsection 
     (b), not more than 20 percent of adults in all families and 
     in 2-parent families determined to be engaged in work in the 
     State for a month may meet the work activity requirement 
     through participation in vocational educational training.
       ``(d) Work Activities Defined.--As used in this section, 
     the term `work activities' means--
       ``(1) unsubsidized employment;
       ``(2) subsidized private sector employment;
       ``(3) subsidized public sector employment;
       ``(4) work experience (including work associated with the 
     refurbishing of publicly assisted housing) if sufficient 
     private sector employment is not available;
       ``(5) on-the-job training;
       ``(6) job search and job readiness assistance;
       ``(7) community service programs;
       ``(8) vocational educational training (not to exceed 12 
     months with respect to any individual);
       ``(9) job skills training directly related to employment;
       ``(10) education directly related to employment, in the 
     case of a recipient who has not attained 20 years of age, and 
     has not received a high school diploma or a certificate of 
     high school equivalency; and
       ``(11) satisfactory attendance at secondary school, in the 
     case of a recipient who--
       ``(A) has not completed secondary school; and
       ``(B) is a dependent child, or a head of household who has 
     not attained 20 years of age.
       ``(e) Penalties Against Individuals.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an adult in a family receiving assistance under the State 
     program funded under this part refuses to engage in work 
     required in accordance with this section, the State shall--
       ``(A) reduce the amount of assistance otherwise payable to 
     the family pro rata (or more, at the option of the State) 
     with respect to any period during a month in which the adult 
     so refuses; or
       ``(B) terminate such assistance,

     subject to such good cause and other exceptions as the State 
     may establish.
       ``(2) Exception.--Notwithstanding paragraph (1), a State 
     may not reduce or terminate assistance under the State 
     program funded under this part based on a refusal of an adult 
     to work if the adult is a single custodial parent caring for 
     a child who has not attained 6 years of age, and the adult 
     proves that the adult has a demonstrated inability (as 
     determined by the State) to obtain needed child care, for 1 
     or more of the following reasons:
       ``(A) Unavailability of appropriate child care within a 
     reasonable distance from the individual's home or work site.
       ``(B) Unavailability or unsuitability of informal child 
     care by a relative or under other arrangements.
       ``(C) Unavailability of appropriate and affordable formal 
     child care arrangements.
       ``(f) Nondisplacement in Work Activities.--
       ``(1) In general.--Subject to paragraph (2), an adult in a 
     family receiving assistance under a State program funded 
     under this part attributable to funds provided by the Federal 
     Government may fill a vacant employment position in order to 
     engage in a work activity described in subsection (d).
       ``(2) No filling of certain vacancies.--No adult in a work 
     activity described in subsection (d) which is funded, in 
     whole or in part, by funds provided by the Federal Government 
     shall be employed or assigned--
       ``(A) when any other individual is on layoff from the same 
     or any substantially equivalent job; or
       ``(B) if the employer has terminated the employment of any 
     regular employee or otherwise caused an involuntary reduction 
     of its workforce in order to fill the vacancy so created with 
     an adult described in paragraph (1).
       ``(3) No preemption.--Nothing in this subsection shall 
     preempt or supersede any provision of State or local law that 
     provides greater protection for employees from displacement.
       ``(g) Sense of the Congress.--It is the sense of the 
     Congress that in complying with this section, each State that 
     operates a program funded under this part is encouraged to 
     assign the highest priority to requiring adults in 2-parent 
     families and adults in single-parent families that include 
     older preschool or school-age children to be engaged in work 
     activities.
       ``(h) Sense of the Congress That States Should Impose 
     Certain Requirements on Noncustodial, Nonsupporting Minor 
     Parents.--It is the sense of the Congress that the States 
     should require noncustodial, nonsupporting parents who have 
     not attained 18 years of age to fulfill community work 
     obligations and attend appropriate parenting or money 
     management classes after school.

     ``SEC. 408. PROHIBITIONS; REQUIREMENTS.

       ``(a) In General.--
       ``(1) No assistance for families without a minor child.--A 
     State to which a grant is made under section 403 shall not 
     use any part of the grant to provide assistance to a family, 
     unless the family includes--
       ``(A) a minor child who resides with a custodial parent or 
     other adult caretaker relative of the child; or
       ``(B) a pregnant individual.
       ``(2) No additional cash assistance for children born to 
     families receiving assistance.--
       ``(A) General rule.--A State to which a grant is made under 
     section 403 shall not use any part of the grant to provide 
     cash benefits for a minor child who is born to--
       ``(i) a recipient of assistance under the program operated 
     under this part; or
       ``(ii) a person who received such assistance at any time 
     during the 10-month period ending with the birth of the 
     child.
       ``(B) Exception for children born into families with no 
     other children.--Subparagraph (A) shall not apply to a minor 
     child who is born into a family that does not include any 
     other children.
       ``(C) Exception for vouchers.--Subparagraph (A) shall not 
     apply to vouchers which are provided in lieu of cash benefits 
     and which may be used only to pay for particular goods and 
     services specified by the State as suitable for the care of 
     the child involved.
       ``(D) Exception for rape or incest.--Subparagraph (A) shall 
     not apply with respect to a child who is born as a result of 
     rape or incest.
       ``(E) State election to opt out.--Subparagraph (A) shall 
     not apply to a State if State law specifically exempts the 
     State program funded under this part from the application of 
     subparagraph (A).
       ``(F) Substitution of family caps in effect under 
     waivers.--Subparagraph (A) shall not apply to a State--
       ``(i) if, as of the date of the enactment of this part, 
     there is in effect a waiver approved by the Secretary under 
     section 1115 which permits the State to deny aid under the 
     State plan approved under part A of this title (as in effect 
     without regard to the amendments made by title I of the 
     Personal Responsibility and Work Opportunity Act of 1995) to 
     a family by reason of the birth of a child to a family member 
     otherwise eligible for such aid; and
       ``(ii) for so long as the State continues to implement such 
     policy under the State program funded under this part, under 
     rules prescribed by the State.
       ``(3) Reduction or elimination of assistance for 
     noncooperation in child support.--If the agency responsible 
     for administering the State plan approved under part D 
     determines that an individual is not cooperating with the 
     State in establishing, modifying, or enforcing a support 
     order with respect to a child of the individual, then the 
     State--
       ``(A) shall deduct from the assistance that would otherwise 
     be provided to the family of the individual under the State 
     program funded under this part the share of such assistance 
     attributable to the individual; and
       ``(B) may deny the family any assistance under the State 
     program.
       ``(4) No assistance for families not assigning certain 
     support rights to the state.--
       ``(A) In general.--A State to which a grant is made under 
     section 403 shall require, as a condition of providing 
     assistance to a family under the State program funded under 
     this part, that a member of the family assign to the State 
     any rights the family member may have (on behalf of the 
     family member or of any other person for whom the family 
     member has applied for or is receiving such assistance) to 
     support from any other person, not exceeding the total amount 
     of assistance so provided to the family, which accrue (or 
     have accrued) before the date the family leaves the program, 
     which assignment, on and after the date the family leaves the 
     program, shall not apply with respect to any support (other 
     than support collected pursuant to section 464) which accrued 
     before the family received such assistance and which the 
     State has not collected by--
       ``(i) September 30, 2000, if the assignment is executed on 
     or after October 1, 1997, and before October 1, 2000; or
       ``(ii) the date the family leaves the program, if the 
     assignment is executed on or after October 1, 2000.
       ``(B) Limitation.--A State to which a grant is made under 
     section 403 shall not require, as a condition of providing 
     assistance to any family under the State program funded under 
     this part, that a member of the family assign to the State 
     any rights to support described in subparagraph (A) which 
     accrue after the date the family leaves the program, except 
     to the extent necessary to enable the State to comply with 
     section 457.
       ``(5) No assistance for teenage parents who do not attend 
     high school or other equivalent training program.--A State to 
     which a grant is made under section 403 shall not use any 
     part of the grant to provide assistance to an individual who 
     has not attained 18 years of age, is not married, has a minor 
     child 

[[Page H15324]]
     at least 12 weeks of age in his or her care, and has not successfully 
     completed a high-school education (or its equivalent), if the 
     individual does not participate in--
       ``(A) educational activities directed toward the attainment 
     of a high school diploma or its equivalent; or
       ``(B) an alternative educational or training program that 
     has been approved by the State.
       ``(6) No assistance for teenage parents not living in 
     adult-supervised settings.--
       ``(A) In general.--
       ``(i) Requirement.--Except as provided in subparagraph (B), 
     a State to which a grant is made under section 403 shall not 
     use any part of the grant to provide assistance to an 
     individual described in clause (ii) of this subparagraph if 
     the individual and the minor child referred to in clause 
     (ii)(II) do not reside in a place of residence maintained by 
     a parent, legal guardian, or other adult relative of the 
     individual as such parent's, guardian's, or adult relative's 
     own home.
       ``(ii) Individual described.-- For purposes of clause (i), 
     an individual described in this clause is an individual who--

       ``(I) has not attained 18 years of age; and
       ``(II) is not married, and has a minor child in his or her 
     care.

       ``(B) Exception.--
       ``(i) Provision of, or assistance in locating, adult-
     supervised living arrangement.--In the case of an individual 
     who is described in clause (ii), the State agency referred to 
     in section 402(a)(4) shall provide, or assist the individual 
     in locating, a second chance home, maternity home, or other 
     appropriate adult-supervised supportive living arrangement, 
     taking into consideration the needs and concerns of the 
     individual, unless the State agency determines that the 
     individual's current living arrangement is appropriate, and 
     thereafter shall require that the individual and the minor 
     child referred to in subparagraph (A)(ii)(II) reside in such 
     living arrangement as a condition of the continued receipt of 
     assistance under the State program funded under this part 
     attributable to funds provided by the Federal Government (or 
     in an alternative appropriate arrangement, should 
     circumstances change and the current arrangement cease to be 
     appropriate).
       ``(ii) Individual described.--For purposes of clause (i), 
     an individual is described in this clause if the individual 
     is described in subparagraph (A)(ii), and--

       ``(I) the individual has no parent, legal guardian or other 
     appropriate adult relative described in subclause (II) of his 
     or her own who is living or whose whereabouts are known;
       ``(II) no living parent, legal guardian, or other 
     appropriate adult relative, who would otherwise meet 
     applicable State criteria to act as the individual's legal 
     guardian, of such individual allows the individual to live in 
     the home of such parent, guardian, or relative;
       ``(III) the State agency determines that--

       ``(aa) the individual or the minor child referred to in 
     subparagraph (A)(ii)(II) is being or has been subjected to 
     serious physical or emotional harm, sexual abuse, or 
     exploitation in the residence of the individual's own parent 
     or legal guardian; or
       ``(bb) substantial evidence exists of an act or failure to 
     act that presents an imminent or serious harm if the 
     individual and the minor child lived in the same residence 
     with the individual's own parent or legal guardian; or

       ``(IV) the State agency otherwise determines that it is in 
     the best interest of the minor child to waive the requirement 
     of subparagraph (A) with respect to the individual or the 
     minor child.

       ``(iii) Second-chance home.--For purposes of this 
     subparagraph, the term `second-chance home' means an entity 
     that provides individuals described in clause (ii) with a 
     supportive and supervised living arrangement in which such 
     individuals are required to learn parenting skills, including 
     child development, family budgeting, health and nutrition, 
     and other skills to promote their long-term economic 
     independence and the well-being of their children.
       ``(7) No medical services.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a State to which a grant is made under section 403 shall not 
     use any part of the grant to provide medical services.
       ``(B) Exception for family planning services.--As used in 
     subparagraph (A), the term `medical services' does not 
     include family planning services.
       ``(8) No assistance for more than 5 years.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), a State to which a grant is made under section 403 
     shall not use any part of the grant to provide cash 
     assistance to a family that includes an adult who has 
     received assistance under any State program funded under this 
     part attributable to funds provided by the Federal 
     Government, for 60 months (whether or not consecutive) after 
     the date the State program funded under this part commences.
       ``(B) Minor child exception.--In determining the number of 
     months for which an individual who is a parent or pregnant 
     has received assistance under the State program funded under 
     this part, the State shall disregard any month for which such 
     assistance was provided with respect to the individual and 
     during which the individual was--
       ``(i) a minor child; and
       ``(ii) not the head of a household or married to the head 
     of a household.
       ``(C) Hardship exception.--
       ``(i) In general.--The State may exempt a family from the 
     application of subparagraph (A) by reason of hardship or if 
     the family includes an individual who has been battered or 
     subjected to extreme cruelty.
       ``(ii) Limitation.--The number of families with respect to 
     which an exemption made by a State under clause (i) is in 
     effect for a fiscal year shall not exceed 15 percent of the 
     average monthly number of families to which assistance is 
     provided under the State program funded under this part.
       ``(iii) Battered or subject to extreme cruelty defined.--
     For purposes of clause (i), an individual has been battered 
     or subjected to extreme cruelty if the individual has been 
     subjected to--

       ``(I) physical acts that resulted in, or threatened to 
     result in, physical injury to the individual;
       ``(II) sexual abuse;
       ``(III) sexual activity involving a dependent child;
       ``(IV) being forced as the caretaker relative of a 
     dependent child to engage in nonconsensual sexual acts or 
     activities;
       ``(V) threats of, or attempts at, physical or sexual abuse;
       ``(VI) mental abuse; or
       ``(VII) neglect or deprivation of medical care.

       ``(D) Rule of interpretation.--Subparagraph (A) shall not 
     be interpreted to require any State to provide assistance to 
     any individual for any period of time under the State program 
     funded under this part.
       ``(9) Denial of assistance for 10 years to a person found 
     to have fraudulently misrepresented residence in order to 
     obtain assistance in 2 or more states.--A State to which a 
     grant is made under section 403 shall not use any part of the 
     grant to provide cash assistance to an individual during the 
     10-year period that begins on the date the individual is 
     convicted in Federal or State court of having made a 
     fraudulent statement or representation with respect to the 
     place of residence of the individual in order to receive 
     assistance simultaneously from 2 or more States under 
     programs that are funded under this title, title XIX, or the 
     Food Stamp Act of 1977, or benefits in 2 or more States under 
     the supplemental security income program under title XVI.
       ``(10) Denial of assistance for fugitive felons and 
     probation and parole violators.--
       ``(A) In general.--A State to which a grant is made under 
     section 403 shall not use any part of the grant to provide 
     assistance to any individual who is--
       ``(i) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or an attempt 
     to commit a crime, which is a felony under the laws of the 
     place from which the individual flees, or which, in the case 
     of the State of New Jersey, is a high misdemeanor under the 
     laws of such State; or
       ``(ii) violating a condition of probation or parole imposed 
     under Federal or State law.
       ``(B) Exchange of information with law enforcement 
     agencies.--If a State to which a grant is made under section 
     403 establishes safeguards against the use or disclosure of 
     information about applicants or recipients of assistance 
     under the State program funded under this part, the 
     safeguards shall not prevent the State agency administering 
     the program from furnishing a Federal, State, or local law 
     enforcement officer, upon the request of the officer, with 
     the current address of any recipient if the officer furnishes 
     the agency with the name of the recipient and notifies the 
     agency that--
       ``(i) the recipient--

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

       ``(ii) the location or apprehension of the recipient is 
     within such official duties.
       ``(11) Denial of assistance for minor children who are 
     absent from the home for a significant period.--
       ``(A) In general.--A State to which a grant is made under 
     section 403 shall not use any part of the grant to provide 
     assistance for a minor child who has been, or is expected by 
     a parent (or other caretaker relative) of the child to be, 
     absent from the home for a period of 45 consecutive days or, 
     at the option of the State, such period of not less than 30 
     and not more than 90 consecutive days as the State may 
     provide for in the State plan submitted pursuant to section 
     402.
       ``(B) State authority to establish good cause exceptions.--
     The State may establish such good cause exceptions to 
     subparagraph (A) as the State considers appropriate if such 
     exceptions are provided for in the State plan submitted 
     pursuant to section 402.
       ``(C) Denial of assistance for relative who fails to notify 
     state agency of absence of child.--A State to which a grant 
     is made under section 403 shall not use any part of the grant 
     to provide assistance for an individual who is a parent (or 
     other caretaker relative) of a minor child and who fails to 
     notify the agency administering the State program funded 
     under this part of the absence of the minor child from the 
     home for the period specified in or provided for pursuant to 
     subparagraph (A), by the end of the 5-day period that begins 
     with the date that it becomes clear to the parent (or 
     relative) that the minor child will be absent for such period 
     so specified or provided for.
       ``(12) Income security payments not to be disregarded in 
     determining the amount of assistance to be provided to a 
     family.--If a State to which a grant is made under section 
     403 uses any part of the grant to provide assistance for any 
     individual who is receiving a payment under a State plan for 
     old-age assistance approved under section 2, a State program 
     funded under part B that provides cash payments for foster 
     care, or the supplemental security income program under title 
     XVI, then the State shall not disregard the payment in 
     determining the amount of assistance to be provided under the 
     State program funded under this part, from funds provided by 
     the Federal Government, to the family of which the individual 
     is a member.
     
[[Page H15325]]

       ``(b) Aliens.--For special rules relating to the treatment 
     of aliens, see section 402 of the Personal Responsibility and 
     Work Opportunity Act of 1995.

     ``SEC. 409. PENALTIES.

       ``(a) In General.--Subject to this section:
       ``(1) Use of grant in violation of this part.--
       ``(A) General penalty.--If an audit conducted under chapter 
     75 of title 31, United States Code, finds that an amount paid 
     to a State under section 403 for a fiscal year has been used 
     in violation of this part, the Secretary shall reduce the 
     grant payable to the State under section 403(a)(1) for the 
     immediately succeeding fiscal year quarter by the amount so 
     used.
       ``(B) Enhanced penalty for intentional violations.--If the 
     State does not prove to the satisfaction of the Secretary 
     that the State did not intend to use the amount in violation 
     of this part, the Secretary shall further reduce the grant 
     payable to the State under section 403(a)(1) for the 
     immediately succeeding fiscal year quarter by an amount equal 
     to 5 percent of the State family assistance grant.
       ``(2) Failure to submit required report.--
       ``(A) In general.--If the Secretary determines that a State 
     has not, within 1 month after the end of a fiscal quarter, 
     submitted the report required by section 411(a) for the 
     quarter year, the Secretary shall reduce the grant payable to 
     the State under section 403(a)(1) for the immediately 
     succeeding fiscal year by an amount equal to 4 percent of the 
     State family assistance grant.
       ``(B) Rescission of penalty.--The Secretary shall rescind a 
     penalty imposed on a State under subparagraph (A) with 
     respect to a report for a fiscal quarter if the State submits 
     the report before the end of the immediately succeeding 
     fiscal quarter.
       ``(3) Failure to satisfy minimum participation rates.--
       ``(A) In general.--If the Secretary determines that a State 
     to which a grant is made under section 403 for a fiscal year 
     has failed to comply with section 407(a) for the fiscal year, 
     the Secretary shall reduce the grant payable to the State 
     under section 403(a)(1) for the immediately succeeding fiscal 
     year by an amount equal to not more than 5 percent of the 
     State family assistance grant.
       ``(B) Penalty based on severity of failure.--The Secretary 
     shall impose reductions under subparagraph (A) based on the 
     degree of noncompliance.
       ``(4) Failure to participate in the income and eligibility 
     verification system.--If the Secretary determines that a 
     State program funded under this part is not participating 
     during a fiscal year in the income and eligibility 
     verification system required by section 1137, the Secretary 
     shall reduce the grant payable to the State under section 
     403(a)(1) for the immediately succeeding fiscal year by an 
     amount equal to not more than 2 percent of the State family 
     assistance grant.
       ``(5) Failure to comply with paternity establishment and 
     child support enforcement requirements under part d.--
     Notwithstanding any other provision of this Act, if the 
     Secretary determines that the State agency that administers a 
     program funded under this part does not enforce the penalties 
     requested by the agency administering part D against 
     recipients of assistance under the State program who fail to 
     cooperate in establishing paternity in accordance with such 
     part, the Secretary shall reduce the grant payable to the 
     State under section 403(a)(1) for the immediately succeeding 
     fiscal year (without regard to this section) by not more than 
     5 percent.
       ``(6) Failure to timely repay a federal loan fund for state 
     welfare programs.--If the Secretary determines that a State 
     has failed to repay any amount borrowed from the Federal Loan 
     Fund for State Welfare Programs established under section 406 
     within the period of maturity applicable to the loan, plus 
     any interest owed on the loan, the Secretary shall reduce the 
     grant payable to the State under section 403(a)(1) for the 
     immediately succeeding fiscal year quarter (without regard to 
     this section) by the outstanding loan amount, plus the 
     interest owed on the outstanding amount. The Secretary shall 
     not forgive any outstanding loan amount or interest owed on 
     the outstanding amount.
       ``(7) Failure of any state to maintain certain level of 
     historic effort.--
       ``(A) In general.--The Secretary shall reduce the grant 
     payable to the State under section 403(a)(1) for fiscal year 
     1997, 1998, 1999, 2000, or 2001 by the amount (if any) by 
     which qualified State expenditures for the then immediately 
     preceding fiscal year is less than the applicable percentage 
     of historic State expenditures with respect to the fiscal 
     year.
       ``(B) Definitions.--As used in this paragraph:
       ``(i) Qualified state expenditures.--

       ``(I) In general.--The term `qualified State expenditures' 
     means, with respect to a State and a fiscal year, the total 
     expenditures by the State during the fiscal year, under all 
     State programs, for any of the following with respect to 
     eligible families:

       ``(aa) Cash assistance.
       ``(bb) Child care assistance.
       ``(cc) Educational activities designed to increase self-
     sufficiency, job training, and work.
       ``(dd) Administrative costs.
       ``(ee) Any other use of funds allowable under section 
     404(a)(1).

       ``(II) Exclusion of transfers from other state and local 
     programs.--Such term does not include funding supplanted by 
     transfers from other State and local programs.
       ``(III) Eligible families.--As used in subclause (I), the 
     term `eligible families' means families eligible for 
     assistance under the State program funded under this part, 
     and families who would be eligible for such assistance but 
     for the application of paragraph (2) or (8) of section 408(a) 
     of this Act or section 402 of the Personal Responsibility and 
     Work Opportunity Act of 1995.

       ``(ii) Applicable percentage.--The term `applicable 
     percentage' means--

       ``(I) for fiscal year 1996, 75 percent; and
       ``(II) for fiscal years 1997, 1998, 1999, and 2000, 75 
     percent reduced (if appropriate) in accordance with 
     subparagraph (C)(iii).

       ``(iii) Historic state expenditures.--The term `historic 
     State expenditures' means, with respect to a State and a 
     fiscal year specified in subparagraph (A), the lesser of--

       ``(I) the expenditures by the State under parts A and F (as 
     in effect during fiscal year 1994) for fiscal year 1994; or
       ``(II) the amount which bears the same ratio to the amount 
     described in subclause (I) as--

       ``(aa) the State family assistance grant for the fiscal 
     year immediately preceding the fiscal year specified in 
     subparagraph (A), plus the total amount required to be paid 
     to the State under former section 403 for fiscal year 1994 
     with respect to amounts expended by the State for child care 
     under subsection (g) or (i) of section 402 (as in effect 
     during fiscal year 1994); bears to
       ``(bb) the total amount required to be paid to the State 
     under former section 403 (as in effect during fiscal year 
     1994) for fiscal year 1994.

     Such term does not include any expenditures under the State 
     plan approved under part A (as so in effect) on behalf of 
     individuals covered by a tribal family assistance plan 
     approved under section 412, as determined by the Secretary.
       ``(iv) Expenditures by the state.--The term `expenditures 
     by the State' does not include--

       ``(I) any expenditures from amounts made available by the 
     Federal Government;
       ``(II) State funds expended for the medicaid program under 
     title XIX; or
       ``(III) any State funds which are used to match Federal 
     funds or are expended as a condition of receiving Federal 
     funds under Federal programs other than under this title.

       ``(C) Applicable percentage reduced for states with best or 
     most improved performance in certain areas.--
       ``(i) Scoring of state performance.--Beginning with fiscal 
     year 1997, the Secretary shall assign to each State a score 
     that represents the performance of the State for the fiscal 
     year in each category described in clause (ii).
       ``(ii) Categories.--The categories described in this clause 
     are the following:

       ``(I) Increasing the number of families that received 
     assistance under a State program funded under this part in 
     the fiscal year, and that, during the fiscal year, become 
     ineligible for such assistance as a result of unsubsidized 
     employment.
       ``(II) Reducing the percentage of families that, within 18 
     months after becoming ineligible for assistance under the 
     State program funded under this part, become eligible for 
     such assistance.
       ``(III) Increasing the average earnings of families that 
     receive assistance under this part.
       ``(IV) Reducing the percentage of children in the State 
     that receive assistance under the State program funded under 
     this part.

       ``(iii) Reduction of maintenance of effort threshold.--

       ``(I) Reduction for states with 5 greatest scores in each 
     category of performance.--The applicable percentage for a 
     State for a fiscal year shall be reduced by 2 percentage 
     points, with respect to each category described in clause 
     (ii) for which the score assigned to the State under clause 
     (i) for the immediately preceding fiscal year is 1 of the 5 
     highest scores so assigned to States.
       ``(II) Reduction for states with 5 greatest improvement in 
     scores in each category of performance.--The applicable 
     percentage for a State for a fiscal year shall be reduced by 
     2 percentage points for a State for a fiscal year, with 
     respect to each category described in clause (ii) for which 
     the difference between the score assigned to the State under 
     clause (i) for the immediately preceding fiscal year and the 
     score so assigned to the State for the 2nd preceding fiscal 
     year is 1 of the 5 greatest such differences.
       ``(III) Limitation on reduction.--The applicable percentage 
     for a State for a fiscal year may not be reduced by more than 
     8 percentage points pursuant to this clause.

       ``(8) Substantial noncompliance of state child support 
     enforcement program with requirements of part d.--
       ``(A) In general.--If a State program operated under part D 
     is found as a result of a review conducted under section 
     452(a)(4) not to have complied substantially with the 
     requirements of such part for any quarter, and the Secretary 
     determines that the program is not complying substantially 
     with such requirements at the time the finding is made, the 
     Secretary shall reduce the grant payable to the State under 
     section 403(a)(1) for the quarter and each subsequent quarter 
     that ends before the 1st quarter throughout which the program 
     is found not to be in substantial compliance with such 
     requirements by--
       ``(i) not less than 1 nor more than 2 percent;
       ``(ii) not less than 2 nor more than 3 percent, if the 
     finding is the 2nd consecutive such finding made as a result 
     of such a review; or
       ``(iii) not less than 3 nor more than 5 percent, if the 
     finding is the 3rd or a subsequent consecutive such finding 
     made as a result of such a review.
       ``(B) Disregard of noncompliance which is of a technical 
     nature.--For purposes of subparagraph (A) and section 
     452(a)(4), a State which is not in full compliance with the 
     requirements of this part shall be determined to be in 
     substantial compliance with such requirements only if the 
     Secretary determines that any noncompliance with such 
     requirements is of a technical nature which does not 
     adversely affect the performance of the State's program 
     operated under part D.
     
[[Page H15326]]

       ``(9) Failure of state receiving amounts from contingency 
     fund to maintain 100 percent of historic effort.--If, at the 
     end of any fiscal year during which amounts from the 
     Contingency Fund for State Welfare Programs have been paid to 
     a State, the Secretary finds that the State has failed, 
     during the fiscal year, to expend under the State program 
     funded under this part an amount equal to at least 100 
     percent of the level of historic State expenditures (as 
     defined in paragraph (7)(B)(iii) of this subsection) with 
     respect to the fiscal year, the Secretary shall reduce the 
     grant payable to the State under section 403(a)(1) for the 
     immediately succeeding fiscal year by the total of the 
     amounts so paid to the State.
       ``(10) Failure to expend additional state funds to replace 
     grant reductions.--If the grant payable to a State under 
     section 403(a)(1) for a fiscal year is reduced by reason of 
     this subsection, the State shall, during the immediately 
     succeeding fiscal year, expend under the State program funded 
     under this part an amount equal to the total amount of such 
     reductions.
       ``(b) Reasonable Cause Exception.--
       ``(1) In general.--The Secretary may not impose a penalty 
     on a State under subsection (a) with respect to a requirement 
     if the Secretary determines that the State has reasonable 
     cause for failing to comply with the requirement.
       ``(2) Exception.--Paragraph (1) of this subsection shall 
     not apply to any penalty under subsection (a)(7).
       ``(c) Corrective Compliance Plan.--
       ``(1) In general.--
       ``(A) Notification of violation.--Before imposing a penalty 
     against a State under subsection (a) with respect to a 
     violation of this part, the Secretary shall notify the State 
     of the violation and allow the State the opportunity to enter 
     into a corrective compliance plan in accordance with this 
     subsection which outlines how the State will correct the 
     violation and how the State will insure continuing compliance 
     with this part.
       ``(B) 60-day period to propose a corrective compliance 
     plan.--During the 60-day period that begins on the date the 
     State receives a notice provided under subparagraph (A) with 
     respect to a violation, the State may submit to the Federal 
     Government a corrective compliance plan to correct the 
     violation.
       ``(C) Consultation about modifications.--During the 60-day 
     period that begins with the date the Secretary receives a 
     corrective compliance plan submitted by a State in accordance 
     with subparagraph (B), the Secretary may consult with the 
     State on modifications to the plan.
       ``(D) Acceptance of plan.-- A corrective compliance plan 
     submitted by a State in accordance with subparagraph (B) is 
     deemed to be accepted by the Secretary if the Secretary does 
     not accept or reject the plan during 60-day period that 
     begins on the date the plan is submitted.
       ``(2) Effect of correcting violation.--The Secretary may 
     not impose any penalty under subsection (a) with respect to 
     any violation covered by a State corrective compliance plan 
     accepted by the Secretary if the State corrects the violation 
     pursuant to the plan.
       ``(3) Effect of failing to correct violation.--The 
     Secretary shall assess some or all of a penalty imposed on a 
     State under subsection (a) with respect to a violation if the 
     State does not, in a timely manner, correct the violation 
     pursuant to a State corrective compliance plan accepted by 
     the Secretary.
       ``(d) Limitation on Amount of Penalty.--
       ``(1) In general.--In imposing the penalties described in 
     subsection (a), the Secretary shall not reduce any quarterly 
     payment to a State by more than 25 percent.
       ``(2) Carryforward of unrecovered penalties.--To the extent 
     that paragraph (1) of this subsection prevents the Secretary 
     from recovering during a fiscal year the full amount of 
     penalties imposed on a State under subsection (a) of this 
     section for a prior fiscal year, the Secretary shall apply 
     any remaining amount of such penalties to the grant payable 
     to the State under section 403(a)(1) for the immediately 
     succeeding fiscal year.

     ``SEC. 410. APPEAL OF ADVERSE DECISION.

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

     ``SEC. 411. DATA COLLECTION AND REPORTING.

       ``(a) Quarterly Reports by States.--
       ``(1) General reporting requirement.--
       ``(A) Contents of report.--Beginning July 1, 1996, each 
     State shall collect on a monthly basis, and report to the 
     Secretary on a quarterly basis, the following disaggregated 
     case record information on the families receiving assistance 
     under the State program funded under this part:
       ``(i) The county of residence of the family.
       ``(ii) Whether a child receiving such assistance or an 
     adult in the family is disabled.
       ``(iii) The ages of the members of such families.
       ``(iv) The number of individuals in the family, and the 
     relation of each family member to the youngest child in the 
     family.
       ``(v) The employment status and earnings of the employed 
     adult in the family.
       ``(vi) The marital status of the adults in the family, 
     including whether such adults have never married, are 
     widowed, or are divorced.
       ``(vii) The race and educational status of each adult in 
     the family.
       ``(viii) The race and educational status of each child in 
     the family.
       ``(ix) Whether the family received subsidized housing, 
     medical assistance under the State plan approved under title 
     XIX, food stamps, or subsidized child care, and if the latter 
     2, the amount received.
       ``(x) The number of months that the family has received 
     each type of assistance under the program.
       ``(xi) If the adults participated in, and the number of 
     hours per week of participation in, the following activities:

       ``(I) Education.
       ``(II) Subsidized private sector employment.
       ``(III) Unsubsidized employment.
       ``(IV) Public sector employment, work experience, or 
     community service.
       ``(V) Job search.
       ``(VI) Job skills training or on-the-job training.
       ``(VII) Vocational education.

       ``(xii) Information necessary to calculate participation 
     rates under section 407.
       ``(xiii) The type and amount of assistance received under 
     the program, including the amount of and reason for any 
     reduction of assistance (including sanctions).
       ``(xiv) From a sample of closed cases, whether the family 
     left the program, and if so, whether the family left due to--

       ``(I) employment;
       ``(II) marriage;
       ``(III) the prohibition set forth in section 408(a)(8);
       ``(IV) sanction; or
       ``(V) State policy.

       ``(xv) Any amount of unearned income received by any member 
     of the family.
       ``(xvi) The citizenship of the members of the family.
       ``(B) Use of estimates.--
       ``(i) Authority.--A State may comply with subparagraph (A) 
     by submitting an estimate which is obtained through the use 
     of scientifically acceptable sampling methods approved by the 
     Secretary.
       ``(ii) Sampling and other methods.--The Secretary shall 
     provide the States with such case sampling plans and data 
     collection procedures as the Secretary deems necessary to 
     produce statistically valid estimates of the performance of 
     State programs funded under this part. The Secretary may 
     develop and implement procedures for verifying the quality of 
     data submitted by the States.
       ``(2) Report on use of federal funds to cover 
     administrative costs and overhead.--The report required by 
     paragraph (1) for a fiscal quarter shall include a statement 
     of the percentage of the funds paid to the State under this 
     part for the quarter that are used to cover administrative 
     costs or overhead.
       ``(3) Report on state expenditures on programs for needy 
     families.--The report required by paragraph (1) for a fiscal 
     quarter shall include a statement of the total amount 
     expended by the State during the quarter on programs for 
     needy families.
       ``(4) Report on noncustodial parents participating in work 
     activities.--The report required by paragraph (1) for a 
     fiscal quarter shall include the number of noncustodial 
     parents in the State who participated in work activities (as 
     defined in section 407(d)) during the quarter.
       ``(5) Report on transitional services.--The report required 
     by paragraph (1) for a fiscal quarter shall include the total 
     amount expended by the State during the quarter to provide 
     transitional services to a family that has ceased to receive 
     assistance under this part because of employment, along with 
     a description of such services.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to define the data elements 
     with respect to which reports are required by this 
     subsection.
       ``(b) Annual Reports to the Congress by the Secretary.--Not 
     later than 6 months after 

[[Page H15327]]
     the end of fiscal year 1997, and each fiscal year thereafter, the 
     Secretary shall transmit to the Congress a report 
     describing--
       ``(1) whether the States are meeting--
       ``(A) the participation rates described in section 407(a); 
     and
       ``(B) the objectives of--
       ``(i) increasing employment and earnings of needy families, 
     and child support collections; and
       ``(ii) decreasing out-of-wedlock pregnancies and child 
     poverty;
       ``(2) the demographic and financial characteristics of 
     families applying for assistance, families receiving 
     assistance, and families that become ineligible to receive 
     assistance;
       ``(3) the characteristics of each State program funded 
     under this part; and
       ``(4) the trends in employment and earnings of needy 
     families with minor children living at home.

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

       ``(a) Grants for Indian Tribes.--
       ``(1) Tribal family assistance grant.--
       ``(A) In general.--For each of fiscal years 1997, 1998, 
     1999, and 2000, the Secretary shall pay to each Indian tribe 
     that has an approved tribal family assistance plan a tribal 
     family assistance grant for the fiscal year in an amount 
     equal to the amount determined under subparagraph (B), and 
     shall reduce the grant payable under section 403(a)(1) to any 
     State in which lies the service area or areas of the Indian 
     tribe by that portion of the amount so determined that is 
     attributable to expenditures by the State.
       ``(B) Amount determined.--
       ``(i) In general.--The amount determined under this 
     subparagraph is an amount equal to the total amount of the 
     Federal payments to a State or States under section 403 (as 
     in effect during such fiscal year) for fiscal year 1994 
     attributable to expenditures (other than child care 
     expenditures) by the State or States under parts A and F (as 
     so in effect) for fiscal year 1994 for Indian families 
     residing in the service area or areas identified by the 
     Indian tribe pursuant to subsection (b)(1)(C) of this 
     section.
       ``(ii) Use of state submitted data.--

       ``(I) In general.--The Secretary shall use State submitted 
     data to make each determination under clause (i).
       ``(II) Disagreement with determination.--If an Indian tribe 
     or tribal organization disagrees with State submitted data 
     described under subclause (I), the Indian tribe or tribal 
     organization may submit to the Secretary such additional 
     information as may be relevant to making the determination 
     under clause (i) and the Secretary may consider such 
     information before making such determination.

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

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

       ``(a) Research.--The Secretary shall conduct research on 
     the benefits, effects, and costs of operating different State 
     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. 
     The Secretary shall also conduct research on the costs and 
     benefits of State activities under section 409.
       ``(b) Development and Evaluation of Innovative Approaches 
     To Reducing Welfare Dependency and Increasing Child Well-
     Being.--
       ``(1) In general.--The Secretary may assist States in 
     developing, and shall evaluate, innovative approaches for 
     reducing welfare dependency and increasing the well-being of 
     minor children living at home with respect to recipients of 
     assistance under programs funded under this part. The 
     Secretary may provide funds for training and technical 
     assistance to carry out the approaches developed pursuant to 
     this paragraph.
       ``(2) Evaluations.--In performing the evaluations under 
     paragraph (1), the Secretary shall, to the maximum extent 
     feasible, use random assignment as an evaluation methodology.
       ``(c) Dissemination of Information.--The Secretary shall 
     develop innovative methods of disseminating information on 
     any research, evaluations, and studies conducted under this 
     section, including the facilitation of the sharing of 
     information and best practices among States and localities 
     through the use of computers and other technologies.
       ``(d) Annual Ranking of States and Review of Most and Least 
     Successful Work Programs.--
       ``(1) Annual ranking of states.--The Secretary shall rank 
     annually the States to which grants are paid under section 
     403 in the order of their success in placing recipients of 
     assistance under the State program funded under this part 
     into long-term private sector jobs, reducing the overall 
     welfare caseload, and, when a practicable method for 
     calculating this information becomes available, diverting 
     individuals from formally applying to the State program and 
     receiving assistance. In ranking States under this 
     subsection, the Secretary shall take into account the average 
     number of minor children living at home in families in the 
     State that have incomes below the poverty line and the amount 
     of funding provided each State for such families.
       ``(2) Annual review of most and least successful work 
     programs.--The Secretary shall review the programs of the 3 
     States most recently ranked highest under paragraph (1) and 
     the 3 States most recently ranked lowest under paragraph (1) 
     that provide parents with work experience, assistance in 
     finding employment, and other work preparation activities and 
     support services to enable the families of such parents to 
     leave the program and become self-sufficient.
       ``(e) Annual Ranking of States and Review of Issues 
     Relating to Out-of-Wedlock Births.--
       ``(1) Annual ranking of states.--
       ``(A) In general.--The Secretary shall annually rank States 
     to which grants are made under section 403 based on the 
     following ranking factors:
       ``(i) Absolute out-of-wedlock ratios.--The ratio 
     represented by--
     
[[Page H15328]]


       ``(I) the total number of out-of-wedlock births in families 
     receiving assistance under the State program under this part 
     in the State for the most recent fiscal year for which 
     information is available; over
       ``(II) the total number of births in families receiving 
     assistance under the State program under this part in the 
     State for such year.

       ``(ii) Net changes in the out-of-wedlock ratio.--The 
     difference between the ratio described in subparagraph (A)(i) 
     with respect to a State for the most recent fiscal year for 
     which such information is available and the ratio with 
     respect to the State for the immediately preceding year.
       ``(2) Annual review.--The Secretary shall review the 
     programs of the 5 States most recently ranked highest under 
     paragraph (1) and the 5 States most recently ranked the 
     lowest under paragraph (1).
       ``(f) State-Initiated Evaluations.--A State shall be 
     eligible to receive funding to evaluate the State program 
     funded under this part if--
       ``(1) the State submits a proposal to the Secretary for the 
     evaluation;
       ``(2) the Secretary determines that the design and approach 
     of the evaluation is rigorous and is likely to yield 
     information that is credible and will be useful to other 
     States, and
       ``(3) unless otherwise waived by the Secretary, the State 
     contributes to the cost of the evaluation, from non-Federal 
     sources, an amount equal to at least 10 percent of the cost 
     of the evaluation.
       ``(g) Funding of Studies and Demonstrations.--
       ``(1) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated $15,000,000 for each fiscal year specified in 
     section 403(a)(1) for the purpose of paying--
       ``(A) the cost of conducting the research described in 
     subsection (a);
       ``(B) the cost of developing and evaluating innovative 
     approaches for reducing welfare dependency and increasing the 
     well-being of minor children under subsection (b);
       ``(C) the Federal share of any State-initiated study 
     approved under subsection (f); and
       ``(D) an amount determined by the Secretary to be necessary 
     to operate and evaluate demonstration projects, relating to 
     this part, that are in effect or approved under section 1115 
     as of September 30, 1995, and are continued after such date.
       ``(2) Allocation.--Of the amount appropriated under 
     paragraph (1) for a fiscal year--
       ``(A) 50 percent shall be allocated for the purposes 
     described in subparagraphs (A) and (B) of paragraph (1), and
       ``(B) 50 percent shall be allocated for the purposes 
     described in subparagraphs (C) and (D) of paragraph (1).

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

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

     ``SEC. 415. WAIVERS.

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

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

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

     ``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

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

     ``SEC. 418. DEFINITIONS.

       ``As used in this part:
       ``(1) Adult.--The term `adult' means an individual who is 
     not a minor child.
       ``(2) Minor child.--The term `minor child' means an 
     individual who--
       ``(A) has not attained 18 years of age; or
       ``(B) has not attained 19 years of age and is a full-time 
     student in a secondary school (or in the equivalent level of 
     vocational or technical training).
       ``(3) Fiscal year.--The term `fiscal year' means any 12-
     month period ending on September 30 of a calendar year.
       ``(4) Indian, indian tribe, and tribal organization.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the terms `Indian', `Indian tribe', and `tribal organization' 
     have the meaning given such terms by section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).
       ``(B) Special rule for indian tribes in alaska.--The term 
     `Indian tribe' means, with respect to the State of Alaska, 
     only the Metlakatla Indian Community of the Annette Islands 
     Reserve and the following Alaska Native regional nonprofit 
     corporations:
       ``(i) Arctic Slope Native Association.
       ``(ii) Kawerak, Inc.
       ``(iii) Maniilaq Association.
       ``(iv) Association of Village Council Presidents.
       ``(v) Tanana Chiefs Conference.
       ``(vi) Cook Inlet Tribal Council.
       ``(vii) Bristol Bay Native Association.
       ``(viii) Aleutian and Pribilof Island Association.
       ``(ix) Chugachmuit.
       ``(x) Tlingit Haida Central Council.
       ``(xi) Kodiak Area Native Association.
       ``(xii) Copper River Native Association.
       ``(5) State.--Except as otherwise specifically provided, 
     the term `State' means the 50 States of the United States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the United States Virgin Islands, Guam, and American 
     Samoa.''.

     SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR 
                   PRIVATE ORGANIZATIONS.

       (a) In General.--
       (1) State options.--A State may--
       (A) administer and provide services under the programs 
     described in subparagraphs (A) and (B)(i) of paragraph (2) 
     through contracts with charitable, religious, or private 
     organizations; and
       (B) provide beneficiaries of assistance under the programs 
     described in subparagraphs (A) and (B)(ii) of paragraph (2) 
     with certificates, vouchers, or other forms of disbursement 
     which are redeemable with such organizations.
       (2) Programs described.--The programs described in this 
     paragraph are the following programs:
       (A) A State program funded under part A of title IV of the 
     Social Security Act (as amended by section 103 of this Act).
       (B) Any other program established or modified under title 
     I, II, or VI of this Act, that--
       (i) permits contracts with organizations; or
       (ii) permits certificates, vouchers, or other forms of 
     disbursement to be provided to beneficiaries, as a means of 
     providing assistance.
       (b) Religious Organizations.--The purpose of this section 
     is to allow States to contract with religious organizations, 
     or to allow religious organizations to accept certificates, 
     vouchers, or other forms of disbursement under any program 
     described in subsection (a)(2), on the same basis as any 
     other nongovernmental provider without impairing the 
     religious character of such organizations, and without 
     diminishing the religious 

[[Page H15329]]
     freedom of beneficiaries of assistance funded under such program.
       (c) Nondiscrimination Against Religious Organizations.--In 
     the event a State exercises its authority under subsection 
     (a), religious organizations are eligible, on the same basis 
     as any other private organization, as contractors to provide 
     assistance, or to accept certificates, vouchers, or other 
     forms of disbursement, under any program described in 
     subsection (a)(2) so long as the programs are implemented 
     consistent with the Establishment Clause of the United States 
     Constitution. Except as provided in subsection (k), neither 
     the Federal Government nor a State receiving funds under such 
     programs shall discriminate against an organization which is 
     or applies to be a contractor to provide assistance, or which 
     accepts certificates, vouchers, or other forms of 
     disbursement, on the basis that the organization has a 
     religious character.
       (d) Religious Character and Freedom.--
       (1) Religious organizations.--A religious organization with 
     a contract described in subsection (a)(1)(A), or which 
     accepts certificates, vouchers, or other forms of 
     disbursement under subsection (a)(1)(B), shall retain its 
     independence from Federal, State, and local governments, 
     including such organization's control over the definition, 
     development, practice, and expression of its religious 
     beliefs.
       (2) Additional safeguards.--Neither the Federal Government 
     nor a State shall require a religious organization to--
       (A) alter its form of internal governance; or
       (B) remove religious art, icons, scripture, or other 
     symbols;

     in order to be eligible to contract to provide assistance, or 
     to accept certificates, vouchers, or other forms of 
     disbursement, funded under a program described in subsection 
     (a)(2).
       (e) Rights of Beneficiaries of Assistance.--
       (1) In general.--If an individual described in paragraph 
     (2) has an objection to the religious character of the 
     organization or institution from which the individual 
     receives, or would receive, assistance funded under any 
     program described in subsection (a)(2), the State in which 
     the individual resides shall provide such individual (if 
     otherwise eligible for such assistance) within a reasonable 
     period of time after the date of such objection with 
     assistance from an alternative provider that is accessible to 
     the individual and the value of which is not less than the 
     value of the assistance which the individual would have 
     received from such organization.
       (2) Individual described.--An individual described in this 
     paragraph is an individual who receives, applies for, or 
     requests to apply for, assistance under a program described 
     in subsection (a)(2).
       (f) Employment Practices.--A religious organization's 
     exemption provided under section 702 of the Civil Rights Act 
     of 1964 (42 U.S.C. 2000e-1a) regarding employment practices 
     shall not be affected by its participation in, or receipt of 
     funds from, programs described in subsection (a)(2).
       (g) Nondiscrimination Against Beneficiaries.--Except as 
     otherwise provided in law, a religious organization shall not 
     discriminate against an individual in regard to rendering 
     assistance funded under any program described in subsection 
     (a)(2) on the basis of religion, a religious belief, or 
     refusal to actively participate in a religious practice.
       (h) Fiscal Accountability.--
       (1) In general.--Except as provided in paragraph (2), any 
     religious organization contracting to provide assistance 
     funded under any program described in subsection (a)(2) shall 
     be subject to the same regulations as other contractors to 
     account in accord with generally accepted auditing principles 
     for the use of such funds provided under such programs.
       (2) Limited audit.--If such organization segregates Federal 
     funds provided under such programs into separate accounts, 
     then only the financial assistance provided with such funds 
     shall be subject to audit.
       (i) Compliance.--Any party which seeks to enforce its 
     rights under this section may assert a civil action for 
     injunctive relief exclusively in an appropriate State court 
     against the entity or agency that allegedly commits such 
     violation.
       (j) Limitations on Use of Funds for Certain Purposes.--No 
     funds provided directly to institutions or organizations to 
     provide services and administer programs under subsection 
     (a)(1)(A) shall be expended for sectarian worship, 
     instruction, or proselytization.
       (k) Preemption.--Nothing in this section shall be construed 
     to preempt any provision of a State constitution or State 
     statute that prohibits or restricts the expenditure of State 
     funds in or by religious organizations.

     SEC. 105. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS 
                   FOR THEIR GRANDCHILDREN.

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Commerce, in 
     carrying out section 141 of title 13, United States Code, 
     shall expand the data collection efforts of the Bureau of the 
     Census (in this section referred to as the ``Bureau'') to 
     enable the Bureau to collect statistically significant data, 
     in connection with its decennial census and its mid-decade 
     census, concerning the growing trend of grandparents who are 
     the primary caregivers for their grandchildren.
       (b) Expanded Census Question.--In carrying out subsection 
     (a), the Secretary of Commerce shall expand the Bureau's 
     census question that details households which include both 
     grandparents and their grandchildren. The expanded question 
     shall be formulated to distinguish between the following 
     households:
       (1) A household in which a grandparent temporarily provides 
     a home for a grandchild for a period of weeks or months 
     during periods of parental distress.
       (2) A household in which a grandparent provides a home for 
     a grandchild and serves as the primary caregiver for the 
     grandchild.

     SEC. 106. REPORT ON DATA PROCESSING.

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

     SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

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

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

       (a) Amendments to Title II.--
       (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
     as so redesignated by section 321(a)(9)(B) of the Social 
     Security Independence and Program Improvements Act of 1994, 
     is amended--
       (A) by inserting ``an agency administering a program funded 
     under part A of title IV or'' before ``an agency operating''; 
     and
       (B) by striking ``A or D of title IV of this Act'' and 
     inserting ``D of such title''.
       (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
     inserting ``under a State program funded under'' before 
     ``part A of title IV''.
       (b) Amendments to Part D of Title IV.--
       (1) Section 451 (42 U.S.C. 651) is amended by striking 
     ``aid'' and inserting ``assistance under a State program 
     funded''.
       (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
     amended--
       (A) by striking ``aid to families with dependent children'' 
     and inserting ``assistance under a State program funded under 
     part A'';
       (B) by striking ``such aid'' and inserting ``such 
     assistance''; and
       (C) by striking ``under section 402(a)(26) or'' and 
     inserting ``pursuant to section 408(a)(4) or under section''.
       (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
     amended--
       (A) by striking ``aid under a State plan approved'' and 
     inserting ``assistance under a State program funded''; and
       (B) by striking ``in accordance with the standards referred 
     to in section 402(a)(26)(B)(ii)'' and inserting ``by the 
     State''.
       (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
     first sentence by striking ``aid under the State plan 
     approved under part A'' and inserting ``assistance under the 
     State program funded under part A''.
       (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
     amended by striking ``1115(c)'' and inserting ``1115(b)''.
       (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
     652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being 
     paid under the State's plan approved under part A or E'' and 
     inserting ``assistance is being provided under the State 
     program funded under part A''.
       (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
     amended in the matter following clause (iii) by striking 
     ``aid was being paid under the State's plan approved under 
     part A or E'' and inserting ``assistance was being provided 
     under the State program funded under part A''.
       (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
     the matter following subparagraph (B)--
       (A) by striking ``who is a dependent child'' and inserting 
     ``with respect to whom assistance is being provided under the 
     State program funded under part A'';
       (B) by inserting ``by the State agency administering the 
     State plan approved under this part'' after ``found''; and
       (C) by striking ``under section 402(a)(26)'' and inserting 
     ``with the State in establishing paternity''.
       (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
     striking ``under section 402(a)(26)'' and inserting 
     ``pursuant to section 408(a)(4)''.
       (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
     striking ``aid under part A of this title'' and inserting 
     ``assistance under a State program funded under part A''.
       (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is amended--
       (A) by striking ``under section 402(a)(26)'' and inserting 
     ``pursuant to section 408(a)(4)''; and
     
[[Page H15330]]

       (B) by striking ``; except that this paragraph shall not 
     apply to such payments for any month following the first 
     month in which the amount collected is sufficient to make 
     such family ineligible for assistance under the State plan 
     approved under part A;'' and inserting a comma.
       (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is amended by 
     striking ``aid under a State plan approved'' and inserting 
     ``assistance under a State program funded''.
       (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by 
     striking ``under section 402(a)(26)''.
       (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
     amended by striking ``402(a)(26)'' and inserting 
     ``408(a)(4)''.
       (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
     striking ``aid'' and inserting ``assistance under a State 
     program funded''.
       (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
       (A) by striking ``aid under plans approved'' and inserting 
     ``assistance under State programs funded''; and
       (B) by striking ``such aid'' and inserting ``such 
     assistance''.
       (c) Repeal of Part F of Title IV.--Part F of title IV (42 
     U.S.C. 681-687) is repealed.
       (d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
     1202(a)(7)) is amended by striking ``aid to families with 
     dependent children under the State plan approved under 
     section 402 of this Act'' and inserting ``assistance under a 
     State program funded under part A of title IV''.
       (e) Amendments to Title XI.--
       (1) Section 1108 (42 U.S.C. 1308) is amended--
       (A) by redesignating subsection (c) as subsection (g);
       (B) by striking all that precedes subsection (c) and 
     inserting the following:

     ``SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN 
                   ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION 
                   ON TOTAL PAYMENTS.

       ``(a) Limitation on Total Payments to Each Territory.--
     Notwithstanding any other provision of this Act, the total 
     amount certified by the Secretary of Health and Human 
     Services under titles I, X, XIV, and XVI, under parts A and B 
     of title IV, and under subsection (b) of this section, for 
     payment to any territory for a fiscal year shall not exceed 
     the ceiling amount for the territory for the fiscal year.
       ``(b) Entitlement to Matching Grant.--
       ``(1) In general.--Each territory shall be entitled to 
     receive from the Secretary for each fiscal year a grant in an 
     amount equal to 75 percent of the amount (if any) by which--
       ``(A) the total expenditures of the territory during the 
     fiscal year under the territory programs funded under parts A 
     and B of title IV; exceeds
       ``(B) the sum of--
       ``(i) the total amount required to be paid to the territory 
     (other than with respect to child care) under former section 
     403 (as in effect on September 30, 1995) for fiscal year 
     1995, which shall be determined by applying subparagraphs (C) 
     and (D) of section 403(a)(1) to the territory;
       ``(ii) the total amount required to be paid to the 
     territory under former section 434 (as so in effect) for 
     fiscal year 1995; and
       ``(iii) the total amount expended by the territory during 
     fiscal year 1995 pursuant to parts A, B, and F of title IV 
     (as so in effect), other than for child care.
       ``(2) Use of grant.--Any territory to which a grant is made 
     under paragraph (1) may expend the amount under any program 
     operated or funded under any provision of law specified in 
     subsection (a).
       ``(c) Definitions.--As used in this section:
       ``(1) Territory.--The term `territory' means Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       ``(2) Ceiling amount.--The term `ceiling amount' means, 
     with respect to a territory and a fiscal year, the mandatory 
     ceiling amount with respect to the territory plus the 
     discretionary ceiling amount with respect to the territory, 
     reduced for the fiscal year in accordance with subsection 
     (f).
       ``(3) Mandatory ceiling amount.--The term `mandatory 
     ceiling amount' means--
       ``(A) $105,538,000 with respect to for Puerto Rico;
       ``(B) $4,902,000 with respect to Guam;
       ``(C) $3,742,000 with respect to the Virgin Islands; and
       ``(D) $1,122,000 with respect to American Samoa.
       ``(4) Discretionary ceiling amount.--The term 
     `discretionary ceiling amount' means, with respect to a 
     territory and a fiscal year, the total amount appropriated 
     pursuant to subsection (d)(3) for the fiscal year for payment 
     to the territory.
       ``(5) Total amount expended by the territory.--The term 
     `total amount expended by the territory'--
       ``(A) does not include expenditures during the fiscal year 
     from amounts made available by the Federal Government; and
       ``(B) when used with respect to fiscal year 1995, also does 
     not include--
       ``(i) expenditures during fiscal year 1995 under subsection 
     (g) or (i) of section 402 (as in effect on September 30, 
     1995); or
       ``(ii) any expenditures during fiscal year 1995 for which 
     the territory (but for section 1108, as in effect on 
     September 30, 1995) would have received reimbursement from 
     the Federal Government.
       ``(d) Discretionary Grants.--
       ``(1) In general.--The Secretary shall make a grant to each 
     territory for any fiscal year in the amount appropriated 
     pursuant to paragraph (3) for the fiscal year for payment to 
     the territory.
       ``(2) Use of grant.--Any territory to which a grant is made 
     under paragraph (1) may expend the amount under any program 
     operated or funded under any provision of law specified in 
     subsection (a).
       ``(3) Limitation on authorization of appropriations.--For 
     grants under paragraph (1), there are authorized to be 
     appropriated to the Secretary for each fiscal year--
       ``(A) $7,951,000 for payment to Puerto Rico;
       ``(B) $345,000 for payment to Guam;
       ``(C) $275,000 for payment to the Virgin Islands; and
       ``(D) $190,000 for payment to American Samoa.
       ``(e) Authority to Transfer Funds Among Programs.--
     Notwithstanding any other provision of this Act, any 
     territory to which an amount is paid under any provision of 
     law specified in subsection (a) may use part or all of the 
     amount to carry out any program operated by the territory, or 
     funded, under any other such provision of law.
       ``(f) Maintenance of Effort.--The ceiling amount with 
     respect to a territory shall be reduced for a fiscal year by 
     an amount equal to the amount (if any) by which--
       ``(1) the total amount expended by the territory under all 
     programs of the territory operated pursuant to the provisions 
     of law specified in subsection (a) (as such provisions were 
     in effect for fiscal year 1995) for fiscal year 1995; exceeds
       ``(2) the total amount expended by the territory under all 
     programs of the territory that are funded under the 
     provisions of law specified in subsection (a) for the fiscal 
     year that immediately precedes the fiscal year referred to in 
     the matter preceding paragraph (1).''; and
       (C) by striking subsections (d) and (e).
       (2) Section 1109 (42 U.S.C. 1309) is amended by striking 
     ``or part A of title IV,''.
       (3) Section 1115 (42 U.S.C. 1315) is amended--
       (A) in subsection (a)(2)--
       (i) by inserting ``(A)'' after ``(2)'';
       (ii) by striking ``403,'';
       (iii) by striking the period at the end and inserting ``, 
     and''; and
       (iv) by adding at the end the following new subparagraph:
       ``(B) costs of such project which would not otherwise be a 
     permissible use of funds under part A of title IV and which 
     are not included as part of the costs of projects under 
     section 1110, shall to the extent and for the period 
     prescribed by the Secretary, be regarded as a permissible use 
     of funds under such part.''; and
       (B) in subsection (c)(3), by striking ``under the program 
     of aid to families with dependent children'' and inserting 
     ``part A of such title''.
       (4) Section 1116 (42 U.S.C. 1316) is amended--
       (A) in each of subsections (a)(1), (b), and (d), by 
     striking ``or part A of title IV,''; and
       (B) in subsection (a)(3), by striking ``404,''.
       (5) Section 1118 (42 U.S.C. 1318) is amended--
       (A) by striking ``403(a),'';
       (B) by striking ``and part A of title IV,''; and
       (C) by striking ``, and shall, in the case of American 
     Samoa, mean 75 per centum with respect to part A of title 
     IV''.
       (6) Section 1119 (42 U.S.C. 1319) is amended--
       (A) by striking ``or part A of title IV''; and
       (B) by striking ``403(a),''.
       (7) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
     striking ``or part A of title IV,''.
       (8) Section 1136 (42 U.S.C. 1320b-6) is repealed.
       (9) Section 1137 (42 U.S.C. 1320b-7) is amended--
       (A) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) any State program funded under part A of title IV of 
     this Act;''; and
       (B) in subsection (d)(1)(B)--
       (i) by striking ``In this subsection--'' and all that 
     follows through ``(ii) in'' and inserting ``In this 
     subsection, in'';
       (ii) by redesignating subclauses (I), (II), and (III) as 
     clauses (i), (ii), and (iii); and
       (iii) by moving such redesignated material 2 ems to the 
     left.
       (f) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
     1352(a)(7)) is amended by striking ``aid to families with 
     dependent children under the State plan approved under 
     section 402 of this Act'' and inserting ``assistance under a 
     State program funded under part A of title IV''.
       (g) Amendment to Title XVI as in Effect With Respect to the 
     Territories.--Section 1602(a)(11), as in effect without 
     regard to the amendment made by section 301 of the Social 
     Security Amendments of 1972 (42 U.S.C. 1382 note), is amended 
     by striking ``aid under the State plan approved'' and 
     inserting ``assistance under a State program funded''.
       (h) Amendment to Title XVI as in Effect With Respect to the 
     States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is 
     amended to read as follows: ``(A) a State program funded 
     under part A of title IV,''.
       (i) Amendment to Title XIX.--Section 1902(j) (42 U.S.C. 
     1396a(j)) is amended by striking ``1108(c)'' and inserting 
     ``1108(g)''.

     SEC. 109. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 
                   AND RELATED PROVISIONS.

       (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``plan approved'' and all that follows through ``title IV of 
     the Social Security Act'' and inserting ``program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.)'';
       (2) in subsection (d)--
       (A) in paragraph (5), by striking ``assistance to families 
     with dependent children'' and inserting ``assistance under a 
     State program funded''; and
       (B) by striking paragraph (13) and redesignating paragraphs 
     (14), (15), and (16) as paragraphs (13), (14), and (15), 
     respectively;
       (3) in subsection (j), by striking ``plan approved under 
     part A of title IV of such Act (42 U.S.C. 601 et seq.)'' and 
     inserting ``program funded under part A of title IV of the 
     Act (42 U.S.C. 601 et seq.)''; and
       (4) by striking subsection (m).
     
[[Page H15331]]

       (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
       (1) in subsection (c)(5), by striking ``the State plan 
     approved'' and inserting ``the State program funded''; and
       (2) in subsection (e)(6), by striking ``aid to families 
     with dependent children'' and inserting ``benefits under a 
     State program funded''.
       (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is 
     amended by striking ``State plans under the Aid to Families 
     with Dependent Children Program under'' and inserting ``State 
     programs funded under part A of''.
       (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
       (1) in the first sentence of subsection (b)(1)(A), by 
     striking ``to aid to families with dependent children under 
     part A of title IV of the Social Security Act'' and inserting 
     ``or are receiving assistance under a State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.)''; and
       (2) in subsection (b)(3), by adding at the end the 
     following new subparagraph:
        ``(I) The Secretary may not grant a waiver under this 
     paragraph on or after October 1, 1995. Any reference in this 
     paragraph to a provision of title IV of the Social Security 
     Act shall be deemed to be a reference to such provision as in 
     effect on September 30, 1995.'';
       (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
       (1) in subsection (a)(2)(B) by striking ``operating--'' and 
     all that follows through ``(ii) any other'' and inserting 
     ``operating any''; and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``(b)(1) A household'' and inserting ``(b) 
     A household''; and
       (ii) in subparagraph (B), by striking ``training program'' 
     and inserting ``activity'';
       (B) by striking paragraph (2); and
       (C) by redesignating subparagraphs (A) through (F) as 
     paragraphs (1) through (6), respectively.
       (f) Section 5(h)(1) of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c 
     note) is amended by striking ``the program for aid to 
     families with dependent children'' and inserting ``the State 
     program funded''.
       (g) Section 9 of the National School Lunch Act (42 U.S.C. 
     1758) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)(C)(ii)(II)--
       (i) by striking ``program for aid to families with 
     dependent children'' and inserting ``State program funded''; 
     and
       (ii) by inserting before the period at the end the 
     following: ``that the Secretary determines complies with 
     standards established by the Secretary that ensure that the 
     standards under the State program are comparable to or more 
     restrictive than those in effect on June 1, 1995''; and
       (B) in paragraph (6)--
       (i) in subparagraph (A)(ii)--

       (I) by striking ``an AFDC assistance unit (under the aid to 
     families with dependent children program authorized'' and 
     inserting ``a family (under the State program funded''; and
       (II) by striking ``, in a State'' and all that follows 
     through ``9902(2)))'' and inserting ``that the Secretary 
     determines complies with standards established by the 
     Secretary that ensure that the standards under the State 
     program are comparable to or more restrictive than those in 
     effect on June 1, 1995''; and

       (ii) in subparagraph (B), by striking ``aid to families 
     with dependent children'' and inserting ``assistance under 
     the State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) that the 
     Secretary determines complies with standards established by 
     the Secretary that ensure that the standards under the State 
     program are comparable to or more restrictive than those in 
     effect on June 1, 1995''; and
       (2) in subsection (d)(2)(C)--
       (A) by striking ``program for aid to families with 
     dependent children'' and inserting ``State program funded''; 
     and
       (B) by inserting before the period at the end the 
     following: ``that the Secretary determines complies with 
     standards established by the Secretary that ensure that the 
     standards under the State program are comparable to or more 
     restrictive than those in effect on June 1, 1995''.
       (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
       (1) by striking ``program for aid to families with 
     dependent children established'' and inserting ``State 
     program funded''; and
       (2) by inserting before the semicolon the following: ``that 
     the Secretary determines complies with standards established 
     by the Secretary that ensure that the standards under the 
     State program are comparable to or more restrictive than 
     those in effect on June 1, 1995''.

     SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

       (a) Subsection (b) of section 508 of the Unemployment 
     Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 
     94-566; 90 Stat. 2689) is amended to read as follows:
       ``(b) Provision for Reimbursement of Expenses.--For 
     purposes of section 455 of the Social Security Act, expenses 
     incurred to reimburse State employment offices for furnishing 
     information requested of such offices--
       ``(1) pursuant to the third sentence of section 3(a) of the 
     Act entitled `An Act to provide for the establishment of a 
     national employment system and for cooperation with the 
     States in the promotion of such system, and for other 
     purposes', approved June 6, 1933 (29 U.S.C. 49b(a)), or
       ``(2) by a State or local agency charged with the duty of 
     carrying a State plan for child support approved under part D 
     of title IV of the Social Security Act,

     shall be considered to constitute expenses incurred in the 
     administration of such State plan.''.
       (b) Section 9121 of the Omnibus Budget Reconciliation Act 
     of 1987 (42 U.S.C. 602 note) is repealed.
       (c) Section 9122 of the Omnibus Budget Reconciliation Act 
     of 1987 (42 U.S.C. 602 note) is repealed.
       (d) Section 221 of the Housing and Urban-Rural Recovery Act 
     of 1983 (42 U.S.C. 602 note), relating to treatment under 
     AFDC of certain rental payments for federally assisted 
     housing, is repealed.
       (e) Section 159 of the Tax Equity and Fiscal Responsibility 
     Act of 1982 (42 U.S.C. 602 note) is repealed.
       (f) Section 202(d) of the Social Security Amendments of 
     1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
       (g) Section 903 of the Stewart B. McKinney Homeless 
     Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), 
     relating to demonstration projects to reduce number of AFDC 
     families in welfare hotels, is amended--
       (1) in subsection (a), by striking ``aid to families with 
     dependent children under a State plan approved'' and 
     inserting ``assistance under a State program funded''; and
       (2) in subsection (c), by striking ``aid to families with 
     dependent children in the State under a State plan approved'' 
     and inserting ``assistance in the State under a State program 
     funded''.
       (h) The Higher Education Act of 1965 (20 U.S.C. 1001 et 
     seq.) is amended--
       (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
     striking ``(Aid to Families with Dependent Children)''; and
       (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by 
     striking ``aid to families with dependent children under a 
     State plan approved'' and inserting ``assistance under a 
     State program funded''.
       (i) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.) is amended--
       (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 
     2341(d)(3)(A)(ii)), by striking ``the program for aid to 
     dependent children'' and inserting ``the State program 
     funded'';
       (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
     striking ``the program for aid to families with dependent 
     children'' and inserting ``the State program funded''; and
       (3) in section 521(14)(B)(iii) (20 U.S.C. 
     2471(14)(B)(iii)), by striking ``the program for aid to 
     families with dependent children'' and inserting ``the State 
     program funded''.
       (j) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 2701 et seq.) is amended--
       (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
     striking ``Aid to Families with Dependent Children Program'' 
     and inserting ``State program funded under part A of title IV 
     of the Social Security Act'';
       (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
     striking ``the program of aid to families with dependent 
     children under a State plan approved under'' and inserting 
     ``a State program funded under part A of''; and
       (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
       (A) in subparagraph (A)(xi), by striking ``Aid to Families 
     with Dependent Children benefits'' and inserting ``assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act''; and
       (B) in subparagraph (B)(viii), by striking ``Aid to 
     Families with Dependent Children'' and inserting ``assistance 
     under the State program funded under part A of title IV of 
     the Social Security Act''.
       (k) Chapter VII of title I of Public Law 99-88 (25 U.S.C. 
     13d-1) is amended to read as follows: ``Provided further, 
     That general assistance payments made by the Bureau of Indian 
     Affairs shall be made--
       ``(1) after April 29, 1985, and before October 1, 1995, on 
     the basis of Aid to Families with Dependent Children (AFDC) 
     standards of need; and
       ``(2) on and after October 1, 1995, on the basis of 
     standards of need established under the State program funded 
     under part A of title IV of the Social Security Act,

     except that where a State ratably reduces its AFDC or State 
     program payments, the Bureau shall reduce general assistance 
     payments in such State by the same percentage as the State 
     has reduced the AFDC or State program payment.''.
       (l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) 
     is amended--
       (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking 
     all that follows ``agency as'' and inserting ``being eligible 
     for financial assistance under part A of title IV of the 
     Social Security Act and as having continually received such 
     financial assistance during the 90-day period which 
     immediately precedes the date on which such individual is 
     hired by the employer.'';
       (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by 
     striking ``eligibility for aid or services,'' and all that 
     follows through ``children approved'' and inserting 
     ``eligibility for assistance, or the amount of such 
     assistance, under a State program funded'';
       (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 
     6103(l)(7)(D)(i)), by striking ``aid to families with 
     dependent children provided under a State plan approved'' and 
     inserting ``a State program funded'';
       (4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--
       (A) by striking ``(c) or (d)'' each place it appears and 
     inserting ``(c), (d), or (e)''; and
       (B) by adding at the end of subparagraph (B) the following 
     new sentence: ``Any return information disclosed with respect 
     to section 6402(e) shall only be disclosed to officers and 
     employees of the State agency requesting such information.'';
       (5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the 
     matter preceding subparagraph (A)--
     
[[Page H15332]]

       (A) by striking ``(5), (10)'' and inserting ``(5)''; and
       (B) by striking ``(9), or (12)'' and inserting ``(9), (10), 
     or (12)'';
       (6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
     by striking ``(relating to aid to families with dependent 
     children)'';
       (7) in section 6402 (26 U.S.C. 6402)--
       (A) in subsection (a), by striking ``(c) and (d)'' and 
     inserting ``(c), (d), and (e)'';
       (B) by redesignating subsections (e) through (i) as 
     subsections (f) through (j), respectively; and
       (C) by inserting after subsection (d) the following:
       ``(e) Collection of Overpayments Under Title IV-A of the 
     Social Security Act.--The amount of any overpayment to be 
     refunded to the person making the overpayment shall be 
     reduced (after reductions pursuant to subsections (c) and 
     (d), but before a credit against future liability for an 
     internal revenue tax) in accordance with section 405(e) of 
     the Social Security Act (concerning recovery of overpayments 
     to individuals under State plans approved under part A of 
     title IV of such Act).''; and
       (8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under a State program funded under 
     part A of title IV of the Social Security Act''.
       (m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 
     49b(b)) is amended by striking ``State plan approved under 
     part A of title IV'' and inserting ``State program funded 
     under part A of title IV''.
       (n) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.) is amended--
       (1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by 
     striking ``(42 U.S.C. 601 et seq.)'';
       (2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
     striking ``State aid to families with dependent children 
     records,'' and inserting ``records collected under the State 
     program funded under part A of title IV of the Social 
     Security Act,'';
       (3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--
       (A) by striking ``the JOBS program'' and inserting ``the 
     work activities required under title IV of the Social 
     Security Act''; and
       (B) by striking the second sentence;
       (4) in section 123(c) (29 U.S.C. 1533(c))--
       (A) in paragraph (1)(E), by repealing clause (vi); and
       (B) in paragraph (2)(D), by repealing clause (v);
       (5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by 
     striking ``, including recipients under the JOBS program'';
       (6) in subparagraphs (A) and (B) of section 204(a)(1) (29 
     U.S.C. 1604(a)(1) (A) and (B)), by striking ``(such as the 
     JOBS program)'' each place it appears;
       (7) in section 205(a) (29 U.S.C. 1605(a)), by striking 
     paragraph (4) and inserting the following:
       ``(4) the portions of title IV of the Social Security Act 
     relating to work activities;'';
       (8) in section 253 (29 U.S.C. 1632)--
       (A) in subsection (b)(2), by repealing subparagraph (C); 
     and
       (B) in paragraphs (1)(B) and (2)(B) of subsection (c), by 
     striking ``the JOBS program or'' each place it appears;
       (9) in section 264 (29 U.S.C. 1644)--
       (A) in subparagraphs (A) and (B) of subsection (b)(1), by 
     striking ``(such as the JOBS program)'' each place it 
     appears; and
       (B) in subparagraphs (A) and (B) of subsection (d)(3), by 
     striking ``and the JOBS program'' each place it appears;
       (10) in section 265(b) (29 U.S.C. 1645(b)), by striking 
     paragraph (6) and inserting the following:
       ``(6) the portion of title IV of the Social Security Act 
     relating to work activities;'';
       (11) in the second sentence of section 429(e) (29 U.S.C. 
     1699(e)), by striking ``and shall be in an amount that does 
     not exceed the maximum amount that may be provided by the 
     State pursuant to section 402(g)(1)(C) of the Social Security 
     Act (42 U.S.C. 602(g)(1)(C))'';
       (12) in section 454(c) (29 U.S.C. 1734(c)), by striking 
     ``JOBS and'';
       (13) in section 455(b) (29 U.S.C. 1735(b)), by striking 
     ``the JOBS program,'';
       (14) in section 501(1) (29 U.S.C. 1791(1)), by striking 
     ``aid to families with dependent children under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.)'' 
     and inserting ``assistance under the State program funded 
     under part A of title IV of the Social Security Act'';
       (15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under the State program funded'';
       (16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under the State program funded''; and
       (17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--
       (A) in clause (v), by striking the semicolon and inserting 
     ``; and''; and
       (B) by striking clause (vi).
       (o) Section 3803(c)(2)(C)(iv) of title 31, United States 
     Code, is amended to read as follows:
       ``(iv) assistance under a State program funded under part A 
     of title IV of the Social Security Act''.
       (p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is 
     amended to read as follows:
       ``(i) assistance under the State program funded under part 
     A of title IV of the Social Security Act;''.
       (q) Section 303(f)(2) of the Family Support Act of 1988 (42 
     U.S.C. 602 note) is amended--
       (1) by striking ``(A)''; and
       (2) by striking subparagraphs (B) and (C).
       (r) The Balanced Budget and Emergency Deficit Control Act 
     of 1985 (2 U.S.C. 900 et seq.) is amended--
       (1) in the first section 255(h) (2 U.S.C. 905(h)), by 
     striking ``Aid to families with dependent children (75-0412-
     0-1-609);'' and inserting ``Block grants to States for 
     temporary assistance for needy families;''; and
       (2) in section 256 (2 U.S.C. 906)--
       (A) by striking subsection (k); and
       (B) by redesignating subsection (l) as subsection (k).
       (s) The Immigration and Nationality Act (8 U.S.C. 1101 et 
     seq.) is amended--
       (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
     under a State plan approved under'' each place it appears and 
     inserting ``assistance under a State program funded under'';
       (2) in section 245A(h) (8 U.S.C. 1255a(h))--
       (A) in paragraph (1)(A)(i), by striking ``program of aid to 
     families with dependent children'' and inserting ``State 
     program of assistance''; and
       (B) in paragraph (2)(B), by striking ``aid to families with 
     dependent children'' and inserting ``assistance under a State 
     program funded under part A of title IV of the Social 
     Security Act''; and
       (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
     ``State plan approved'' and inserting ``State program 
     funded''.
       (t) Section 640(a)(4)(B)(i) of the Head Start Act (42 
     U.S.C. 9835(a)(4)(B)(i)) is amended by striking ``program of 
     aid to families with dependent children under a State plan 
     approved'' and inserting ``State program of assistance 
     funded''.
       (u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, 
     chapter 92; 25 U.S.C. 639) is repealed.
       (v) Subparagraph (E) of section 213(d)(6) of the School-To-
     Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is 
     amended to read as follows:
       ``(E) part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) relating to work activities;''.
       (w) Section 552a(a)(8)(B)(iv)(III) of title 5, United 
     States Code, is amended by striking ``section 464 or 1137 of 
     the Social Security Act'' and inserting ``section 404(e), 
     464, or 1137 of the Social Security Act.''.

     SEC. 111. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT 
                   SOCIAL SECURITY CARD REQUIRED.

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

     SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

       (a) In General.--Whenever an organization that accepts 
     Federal funds under this Act or the amendments made by this 
     Act makes any communication that in any way intends to 
     promote public support or opposition to any policy of a 
     Federal, State, or local government through any broadcasting 
     station, newspaper, magazine, outdoor advertising facility, 
     direct mailing, or any other type of general public 
     advertising, such communication shall state the following: 
     ``This was prepared and paid for by an organization that 
     accepts taxpayer dollars.''.
       (b) Failure To Comply.--If an organization makes any 
     communication described in subsection (a) and fails to 
     provide the statement required by that subsection, such 
     organization shall be ineligible to receive Federal funds 
     under this Act or the amendments made by this Act.
       (c) Definition.--For purposes of this section, the term 
     ``organization'' means an organization described in section 
     501(c) of the Internal Revenue Code of 1986.
       (d) Effective Dates.--This section shall take effect--
       (1) with respect to printed communications 1 year after the 
     date of enactment of this Act; and
       (2) with respect to any other communication on the date of 
     enactment of this Act.

     SEC. 113. MODIFICATIONS TO THE JOB OPPORTUNITIES FOR CERTAIN 
                   LOW-INCOME INDIVIDUALS PROGRAM.

       Section 505 of the Family Support Act of 1988 (42 U.S.C. 
     1315 note) is amended--
       (1) in the heading, by striking ``DEMONSTRATION'';
     
[[Page H15333]]

       (2) by striking ``demonstration'' each place such term 
     appears;
       (3) in subsection (a), by striking ``in each of fiscal 
     years'' and all that follows through ``10'' and inserting 
     ``shall enter into agreements with'';
       (4) in subsection (b)(3), by striking ``aid to families 
     with dependent children under part A of title IV of the 
     Social Security Act'' and inserting ``assistance under the 
     program funded part A of title IV of the Social Security Act 
     of the State in which the individual resides'';
       (5) in subsection (c)--
       (A) in paragraph (1)(C), by striking ``aid to families with 
     dependent children under part A of title IV of the Social 
     Security Act'' and inserting ``assistance under a State 
     program funded part A of title IV of the Social Security 
     Act'';
       (B) in paragraph (2), by striking ``aid to families with 
     dependent children under title IV of such Act'' and inserting 
     ``assistance under a State program funded part A of title IV 
     of the Social Security Act'';
       (6) in subsection (d), by striking ``job opportunities and 
     basic skills training program (as provided for under title IV 
     of the Social Security Act)'' and inserting ``the State 
     program funded under part A of title IV of the Social 
     Security Act''; and
       (7) by striking subsections (e) through (g) and inserting 
     the following:
       ``(e) Authorization of Appropriations.--For the purpose of 
     conducting projects under this section, there is authorized 
     to be appropriated an amount not to exceed $25,000,000 for 
     any fiscal year.''.

     SEC. 114. MEDICAID ELIGIBILITY UNDER TITLE IV OF THE SOCIAL 
                   SECURITY ACT.

       (a) In General.--Section 1902(a)(10)(A) (42 U.S.C. 
     1396a(a)(10)(A)) is amended--
       (1) in clause (i), by amending subclause (I) to read as 
     follows:

       ``(I) who are receiving a foster care maintenance payment 
     described in section 423(b)(1)(A) or an adoption assistance 
     payment described in section 423(b)(1)(B),''; and

       (2) in clause (ii)--
       (A) by striking ``or'' at the end of subclause (XI),
       (B) by adding ``or'' at the end of subclause (XII), and
       (C) by adding at the end the following new subclause:

       ``(XIII) to individuals (which may include individuals who 
     receive payment under any plan of the State approved under 
     title I, X, XIV, or XVI, or a program funded under part A of 
     title IV of this Act, as amended by the Personal 
     Responsibility and Work Opportunity Act of 1995, and other 
     similar individuals) who meet such eligibility criteria as 
     the State establishes, so long as the State demonstrates to 
     the satisfaction of the Secretary that the application of 
     such criteria does not result in Federal expenditures under 
     this title that are greater than the Federal expenditures 
     that would have been made under this title if such Act had 
     not been enacted,''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to medical assistance for items and services 
     furnished on or after the date of the enactment of this Act.

     SEC. 115. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
                   TECHNICAL AND CONFORMING AMENDMENTS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Health and Human Services and the 
     Commissioner of Social Security, in consultation, as 
     appropriate, with the heads of other Federal agencies, shall 
     submit to the appropriate committees of Congress a 
     legislative proposal proposing such technical and conforming 
     amendments as are necessary to bring the law into conformity 
     with the policy embodied in this title.

     SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

       (a) In General.--Except as otherwise provided in this 
     title, this title and the amendments made by this title shall 
     take effect on October 1, 1996.
       (b) Transition Rules.--
       (1) State option to accelerate effective date.--
       (A) In general.--If, within 3 months after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services receives from a State a plan described in section 
     402(a) of the Social Security Act (as added by the amendment 
     made by section 103 of this Act), this title and the 
     amendments made by this title (except section 409(a)(7) of 
     the Social Security Act, as added by the amendment made by 
     such section 103) shall also apply with respect to the State 
     during the period that begins on the date of such receipt and 
     ends on September 30, 1996, except that the State shall be 
     considered an eligible State for fiscal year 1996 for 
     purposes of part A of title IV of the Social Security Act (as 
     in effect pursuant to the amendment made by such section 
     103).
       (B) Limitations on federal obligations.--
       (i) Under afdc program.--If the Secretary receives from a 
     State the plan referred to in subparagraph (A), the total 
     obligations of the Federal Government to the State under part 
     A of title IV of the Social Security Act (as in effect on 
     September 30, 1995) with respect to expenditures by the State 
     after the date of the enactment of this Act shall not exceed 
     an amount equal to--

       (I) the State family assistance grant (as defined in 
     section 403(a)(1)(B) of the Social Security Act (as in effect 
     pursuant to the amendment made by section 103 of this Act)); 
     minus
       (II) any obligations of the Federal Government to the State 
     under part A of title IV of the Social Security Act (as in 
     effect on September 30, 1995) with respect to expenditures by 
     the State during the period that begins on October 1, 1995, 
     and ends on the day before the date of the enactment of this 
     Act.

       (ii) Under temporary family assistance program.--
     Notwithstanding section 403(a)(1) of the Social Security Act 
     (as in effect pursuant to the amendment made by section 103 
     of this Act), the total obligations of the Federal Government 
     to a State under such section 403(a)(1) for fiscal year 1996 
     after the termination of the State AFDC program shall not 
     exceed an amount equal to--

       (I) the amount described in clause (i)(I) of this 
     subparagraph; minus
       (II) any obligations of the Federal Government to the State 
     under part A of title IV of the Social Security Act (as in 
     effect on September 30, 1995) with respect to expenditures by 
     the State on or after October 1, 1995.

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

     SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

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

     SEC. 201. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS 
                   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED 
                   RESIDENCE IN ORDER TO OBTAIN BENEFITS 
                   SIMULTANEOUSLY IN 2 OR MORE STATES.

       (a) In General.--Section 1614(a) (42 U.S.C. 1382c(a)) is 
     amended by adding at the end the following new paragraph:
       ``(5) An individual shall not be considered an eligible 
     individual for the purposes of this title during the 10-year 
     period that begins on the date the individual is convicted in 
     Federal or State court of having made a fraudulent statement 
     or representation with respect to the place of residence of 
     the individual in order to receive assistance simultaneously 
     from 2 or more States under programs that are funded under 
     title IV, title XIX, or the Food Stamp Act of 1977, or 
     benefits in 2 or more States under the supplemental security 
     income program under this title.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.
     
[[Page H15334]]


     SEC. 202. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND 
                   PROBATION AND PAROLE VIOLATORS.

       (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)) is 
     amended by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) A person shall not be considered an eligible 
     individual or eligible spouse for purposes of this title with 
     respect to any month if during such month the person is--
       ``(A) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(B) violating a condition of probation or parole imposed 
     under Federal or State law.''.
       (b) Exchange of Information With Law Enforcement 
     Agencies.--Section 1611(e) (42 U.S.C. 1382(e)), as amended by 
     subsection (a), is amended by inserting after paragraph (4) 
     the following new paragraph:
       ``(5) Notwithstanding any other provision of law, the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the request of the officer, with 
     the current address, Social Security number, and photograph 
     (if applicable) of any recipient of benefits under this 
     title, if the officer furnishes the Commissioner with the 
     name of the recipient and notifies the Commissioner that--
       ``(A) the recipient--
       ``(i) is described in subparagraph (A) or (B) of paragraph 
     (4); or
       ``(ii) has information that is necessary for the officer to 
     conduct the officer's official duties; and
       ``(B) the location or apprehension of the recipient is 
     within the officer's official duties.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
               Subtitle B--Benefits for Disabled Children

     SEC. 211. DEFINITION AND ELIGIBILITY RULES.

       (a) Definition of Childhood Disability.--Section 1614(a)(3) 
     (42 U.S.C. 1382c(a)(3)), as amended by section 201(a), is 
     amended--
       (1) in subparagraph (A), by striking ``An individual'' and 
     inserting ``Except as provided in subparagraph (C), an 
     individual'';
       (2) in subparagraph (A), by striking ``(or, in the case of 
     an individual under the age of 18, if he suffers from any 
     medically determinable physical or mental impairment of 
     comparable severity)'';
       (3) by redesignating subparagraphs (C) through (I) as 
     subparagraphs (D) through (J), respectively;
       (4) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) An individual under the age of 18 shall be considered 
     disabled for the purposes of this title if that individual 
     has a medically determinable physical or mental impairment, 
     which results in marked and severe functional limitations, 
     and which can be expected to result in death or which has 
     lasted or can be expected to last for a continuous period of 
     not less than 12 months. Notwithstanding the preceding 
     sentence, no individual under the age of 18 who engages in 
     substantial gainful activity (determined in accordance with 
     regulations prescribed pursuant to subparagraph (E)) may be 
     considered to be disabled.''; and
       (5) in subparagraph (F), as redesignated by paragraph (3), 
     by striking ``(D)'' and inserting ``(E)''.
       (b) Changes to Childhood SSI Regulations.--
       (1) Modification to medical criteria for evaluation of 
     mental and emotional disorders.--The Commissioner of Social 
     Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
     of appendix 1 to subpart P of part 404 of title 20, Code of 
     Federal Regulations, to eliminate references to maladaptive 
     behavior in the domain of personal/behavorial function.
       (2) Discontinuance of individualized functional 
     assessment.--The Commissioner of Social Security shall 
     discontinue the individualized functional assessment for 
     children set forth in sections 416.924d and 416.924e of title 
     20, Code of Federal Regulations.
       (c) Medical Improvement Review Standard as it Applies to 
     Individuals Under the Age of 18.--Section 1614(a)(4) (42 
     U.S.C. 1382(a)(4)) is amended--
       (1) by redesignating subclauses (I) and (II) of clauses (i) 
     and (ii) of subparagraph (B) as items (aa) and (bb), 
     respectively;
       (2) by redesignating clauses (i) and (ii) of subparagraphs 
     (A) and (B) as subclauses (I) and (II), respectively;
       (3) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and by moving their 
     left hand margin 2 ems to the right;
       (4) by inserting before clause (i) (as redesignated by 
     paragraph (3)) the following:
       ``(A) in the case of an individual who is age 18 or older--
     '';
       (5) at the end of subparagraph (A)(iii) (as redesignated by 
     paragraphs (3) and (4)), by striking the period and inserting 
     ``; or'';
       (6) by inserting after and below subparagraph (A)(iii) (as 
     so redesignated) the following:
       ``(B) in the case of an individual who is under the age of 
     18--
       ``(i) substantial evidence which demonstrates that there 
     has been medical improvement in the individual's impairment 
     or combination of impairments, and that such impairment or 
     combination of impairments no longer results in marked and 
     severe functional limitations; or
       ``(ii) substantial evidence which demonstrates that, as 
     determined on the basis of new or improved diagnostic 
     techniques or evaluations, the individual's impairment or 
     combination of impairments, is not as disabling as it was 
     considered to be at the time of the most recent prior 
     decision that the individual was under a disability or 
     continued to be under a disability, and such impairment or 
     combination of impairments does not result in marked or 
     severe functional limitations; or'';
       (7) by redesignating subparagraph (D) as subparagraph (C) 
     and by inserting in such subparagraph ``in the case of any 
     individual,'' before ``substantial evidence''; and
       (8) in the first sentence following subparagraph (C) (as 
     redesignated by paragraph (7)), by--
       (A) inserting ``(i)'' before ``to restore''; and
       (B) inserting ``, or (ii) in the case of an individual 
     under the age of 18, to eliminate or improve the individual's 
     impairment or combination of impairments so that it no longer 
     results in marked and severe functional limitations'' 
     immediately before the period.
       (d) Amount of Benefits.--Section 1611(b) (42 U.S.C. 
     1382(b)) is amended by adding at the end the following new 
     paragraph:
       ``(3)(A) Except with respect to individuals described in 
     subparagraph (B), the benefit under this title for an 
     individual described in section 1614(a)(3)(C) shall be 
     payable at a rate equal to 75 percent of the rate otherwise 
     determined under this subsection.
       ``(B) An individual is described in this subparagraph if 
     such individual is described in section 1614(a)(3)(C), and--
       ``(i) in the case of such an individual under the age of 6, 
     such individual has a medical impairment that severely limits 
     the individual's ability to function in a manner appropriate 
     to individuals of the same age and who without special 
     personal assistance would require specialized care outside 
     the home; or
       ``(ii) in the case of such an individual who has attained 
     the age of 6, such individual requires personal care 
     assistance with--
       ``(I) at least 2 activities of daily living;
       ``(II) continual 24-hour supervision or monitoring to avoid 
     causing injury or harm to self or others; or
       ``(III) the administration of medical treatment; and
     who without such assistance would require full-time or part-
     time specialized care outside the home.
       ``(C)(i) For purposes of subparagraph (B), the term 
     `specialized care' means medical care beyond routine 
     administration of medication.
       ``(ii) For purposes of subparagraph (B)(ii)--
       ``(I) the term `personal care assistance' means at least 
     hands-on and stand-by assistance, supervision, or cueing; and
       ``(II) the term `activities of daily living' means eating, 
     toileting, dressing, bathing, and mobility.''.
       (e) Effective Dates, Etc.--
       (1) Effective dates.--
       (A) In general.--The provisions of, and amendments made by, 
     subsections (a), (b), and (c) shall apply to applicants for 
     benefits under title XVI of the Social Security Act for 
     months beginning on or after the date of the enactment of 
     this Act, without regard to whether regulations have been 
     issued to implement such provisions and amendments.
       (B) Eligibility rules.--The amendments made by subsection 
     (d) shall apply to--
       (i) applicants for benefits under title XVI of the Social 
     Security Act for months beginning on or after January 1, 
     1997; and
       (ii) with respect to continuing disability reviews of 
     eligibility for benefits under such title occurring on or 
     after such date.
       (2) Application to current recipients.--
       (A) Eligibility determinations.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall redetermine the eligibility of any 
     individual under age 18 who is receiving supplemental 
     security income benefits by reason of disability under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     may terminate by reason of the provisions of, or amendments 
     made by, subsections (a), (b), and (c). With respect to any 
     redetermination under this subparagraph--
       (i) section 1614(a)(4) of the Social Security Act (42 
     U.S.C. 1382c(a)(4)) shall not apply;
       (ii) the Commissioner of Social Security shall apply the 
     eligibility criteria for new applicants for benefits under 
     title XVI of such Act;
       (iii) the Commissioner shall give such redetermination 
     priority over all continuing eligibility reviews and other 
     reviews under such title; and
       (iv) such redetermination shall be counted as a review or 
     redetermination otherwise required to be made under section 
     208 of the Social Security Independence and Program 
     Improvements Act of 1994 or any other provision of title XVI 
     of the Social Security Act.
       (B) Grandfather provision.--The provisions of, and 
     amendments made by, subsections (a), (b), and (c), and the 
     redetermination under subparagraph (A), shall only apply with 
     respect to the benefits of an individual described in 
     subparagraph (A) for months beginning on or after January 1, 
     1997.
       (C) Notice.--Not later than 90 days after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall notify an individual described in subparagraph (A) of 
     the provisions of this paragraph.
       (3) Report.--The Commissioner of Social Security shall 
     report to the Congress regarding the progress made in 
     implementing the provisions of, and amendments made by, this 
     section on child disability evaluations not later than 180 
     days after the date of the enactment of this Act.
       (4) Regulations.--The Commissioner of Social Security shall 
     submit for review to the committees of jurisdiction in the 
     Congress any final regulation pertaining to the eligibility 
     of individuals under age 18 for benefits under title XVI of 
     the Social Security Act at least 45 days before 

[[Page H15335]]
     the effective date of such regulation. The submission under this 
     paragraph shall include supporting documentation providing a 
     cost analysis, workload impact, and projections as to how the 
     regulation will effect the future number of recipients under 
     such title.
       (5) Appropriations.--
       (A) In general.--Out of any money in the Treasury not 
     otherwise appropriated, there are authorized to be 
     appropriated and are hereby appropriated, to remain available 
     without fiscal year limitation, $200,000,000 for fiscal year 
     1996, $75,000,000 for fiscal year 1997, and $25,000,000 for 
     fiscal year 1998, for the Commissioner of Social Security to 
     utilize only for continuing disability reviews and 
     redeterminations under title XVI of the Social Security Act, 
     with reviews and redeterminations for individuals affected by 
     the provisions of subsection (b) given highest priority.
       (B) Additional funds.--Amounts appropriated under 
     subparagraph (A) shall be in addition to any funds otherwise 
     appropriated for continuing disability reviews and 
     redeterminations under title XVI of the Social Security Act.
       (6) Benefits under title xvi.--For purposes of this 
     subsection, the term ``benefits under title XVI of the Social 
     Security Act'' includes supplementary payments pursuant to an 
     agreement for Federal administration under section 1616(a) of 
     the Social Security Act, and payments pursuant to an 
     agreement entered into under section 212(b) of Public Law 93-
     66.

     SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING 
                   DISABILITY REVIEWS.

       (a) Continuing Disability Reviews Relating to Certain 
     Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), 
     as redesignated by section 211(a)(3), is amended--
       (1) by inserting ``(i)'' after ``(H)''; and
       (2) by adding at the end the following new clause:
       ``(ii)(I) Not less frequently than once every 3 years, the 
     Commissioner shall review in accordance with paragraph (4) 
     the continued eligibility for benefits under this title of 
     each individual who has not attained 18 years of age and is 
     eligible for such benefits by reason of an impairment (or 
     combination of impairments) which may improve (or, at the 
     option of the Commissioner, which is unlikely to improve).
       ``(II) A representative payee of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.
       ``(III) If the representative payee refuses to comply 
     without good cause with the requirements of subclause (II), 
     the Commissioner of Social Security shall, if the 
     Commissioner determines it is in the best interest of the 
     individual, promptly terminate payment of benefits to the 
     representative payee, and provide for payment of benefits to 
     an alternative representative payee of the individual or, if 
     the interest of the individual under this title would be 
     served thereby, to the individual.
       ``(IV) Subclause (II) shall not apply to the representative 
     payee of any individual with respect to whom the Commissioner 
     determines such application would be inappropriate or 
     unnecessary. In making such determination, the Commissioner 
     shall take into consideration the nature of the individual's 
     impairment (or combination of impairments). Section 1631(c) 
     shall not apply to a finding by the Commissioner that the 
     requirements of subclause (II) should not apply to an 
     individual's representative payee.''.
       (b) Disability Eligibility Redeterminations Required for 
     SSI Recipients Who Attain 18 Years of Age.--
       (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsection (a), is amended by 
     adding at the end the following new clause:
       ``(iii) If an individual is eligible for benefits under 
     this title by reason of disability for the month preceding 
     the month in which the individual attains the age of 18 
     years, the Commissioner shall redetermine such eligibility--
       ``(I) during the 1-year period beginning on the 
     individual's 18th birthday; and
       ``(II) by applying the criteria used in determining the 
     initial eligibility for applicants who are age 18 or older.
     With respect to a redetermination under this clause, 
     paragraph (4) shall not apply and such redetermination shall 
     be considered a substitute for a review or redetermination 
     otherwise required under any other provision of this 
     subparagraph during that 1-year period.''.
       (2) Conforming repeal.--Section 207 of the Social Security 
     Independence and Program Improvements Act of 1994 (42 U.S.C. 
     1382 note; 108 Stat. 1516) is hereby repealed.
       (c) Continuing Disability Review Required for Low Birth 
     Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsections (a) and (b), is 
     amended by adding at the end the following new clause:
       ``(iv)(I) Not later than 12 months after the birth of an 
     individual, the Commissioner shall review in accordance with 
     paragraph (4) the continuing eligibility for benefits under 
     this title by reason of disability of such individual whose 
     low birth weight is a contributing factor material to the 
     Commissioner's determination that the individual is disabled.
       ``(II) A review under subclause (I) shall be considered a 
     substitute for a review otherwise required under any other 
     provision of this subparagraph during that 12-month period.
       ``(III) A representative payee of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.
       ``(IV) If the representative payee refuses to comply 
     without good cause with the requirements of subclause (III), 
     the Commissioner of Social Security shall, if the 
     Commissioner determines it is in the best interest of the 
     individual, promptly terminate payment of benefits to the 
     representative payee, and provide for payment of benefits to 
     an alternative representative payee of the individual or, if 
     the interest of the individual under this title would be 
     served thereby, to the individual.
       ``(V) Subclause (III) shall not apply to the representative 
     payee of any individual with respect to whom the Commissioner 
     determines such application would be inappropriate or 
     unnecessary. In making such determination, the Commissioner 
     shall take into consideration the nature of the individual's 
     impairment (or combination of impairments). Section 1631(c) 
     shall not apply to a finding by the Commissioner that the 
     requirements of subclause (III) should not apply to an 
     individual's representative payee.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.

     SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

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

        ``Disposal of Resources for Less Than Fair Market Value

       ``(c)(1)(A)(i) If an individual who has not attained 18 
     years of age (or any person acting on such individual's 
     behalf) disposes of resources of the individual for less than 
     fair market value on or after the look-back date specified in 
     clause (ii)(I), the individual is ineligible for benefits 
     under this title for months during the period beginning on 
     the date specified in clause (iii) and equal to the number of 
     months specified in clause (iv).
       ``(ii)(I) The look-back date specified in this subclause is 
     a date that is 36 months before the date specified in 
     subclause (II).
       ``(II) The date specified in this subclause is the date on 
     which the individual applies for benefits under this title 
     or, if later, the date on which the disposal of the 
     individual's resources for less than fair market value 
     occurs.
       ``(iii) The date specified in this clause is the first day 
     of the first month that follows the month in which the 
     individual's resources were disposed of for less than fair 
     market value and that does not occur in any other period of 
     ineligibility under this paragraph.
       ``(iv) The number of months of ineligibility under this 
     clause for an individual shall be equal to--
       ``(I) the total, cumulative uncompensated value of all the 
     individual's resources so disposed of on or after the look-
     back date specified in clause (ii)(I), divided by
       ``(II) the amount of the maximum monthly benefit payable 
     under section 1611(b) to an eligible individual for the month 
     in which the date specified in clause (ii)(II) occurs.
       ``(B) An individual shall not be ineligible for benefits 
     under this title by reason of subparagraph (A) if the 
     Commissioner determines that--
       ``(i) the individual intended to dispose of the resources 
     at fair market value;
       ``(ii) the resources were transferred exclusively for a 
     purpose other than to qualify for benefits under this title;
       ``(iii) all resources transferred for less than fair market 
     value have been returned to the individual; or
       ``(iv) the denial of eligibility would work an undue 
     hardship on the individual (as determined on the basis of 
     criteria established by the Commissioner in regulations).
       ``(C) For purposes of this paragraph, in the case of a 
     resource held by an individual in common with another person 
     or persons in a joint tenancy, tenancy in common, or similar 
     arrangement, the resource (or the affected portion of such 
     resource) shall be considered to be disposed of by such 
     individual when any action is taken, either by such 
     individual or by any other person, that reduces or eliminates 
     such individual's ownership or control of such resource.
       ``(D)(i) Notwithstanding subparagraph (A), this subsection 
     shall not apply to a transfer of a resource to a trust if the 
     portion of the trust attributable to such resource is 
     considered a resource available to the individual pursuant to 
     subsection (e)(3) (or would be so considered, but for the 
     application of subsection (e)(4)).
       ``(ii) In the case of a trust established by an individual 
     (within the meaning of subsection (e)(2)(A)), if from such 
     portion of the trust (if any) that is considered a resource 
     available to the individual pursuant to subsection (e)(3) (or 
     would be so considered but for the application of subsection 
     (e)(2)) or the residue of such portion upon the termination 
     of the trust--
       ``(I) there is made a payment other than to or for the 
     benefit of the individual, or
       ``(II) no payment could under any circumstance be made to 
     the individual,
     then the payment described in subclause (I) or the 
     foreclosure of payment described in subclause (II) shall be 
     considered a disposal of resources by the individual subject 
     to this subsection, as of the date of such payment or 
     foreclosure, respectively.
       ``(2)(A) At the time an individual (and the individual's 
     eligible spouse, if any) applies for benefits under this 
     title, and at the time the eligibility of an individual (and 
     such spouse, if any) for such benefits is redetermined, the 
     Commissioner of Social Security shall--
       ``(i) inform such individual of the provisions of paragraph 
     (1) providing for a period of ineligibility for benefits 
     under this title for individuals who make certain 
     dispositions of resources 

[[Page H15336]]
     for less than fair market value, and inform such individual that 
     information obtained pursuant to clause (ii) will be made 
     available to the State agency administering a State plan 
     approved under title XIX (as provided in subparagraph (B)); 
     and
       ``(ii) obtain from such individual information which may be 
     used in determining whether or not a period of ineligibility 
     for such benefits would be required by reason of paragraph 
     (1).
       ``(B) The Commissioner of Social Security shall make the 
     information obtained under subparagraph (A)(ii) available, on 
     request, to any State agency administering a State plan 
     approved under title XIX.
       ``(3) For purposes of this subsection--
       ``(A) the term `trust' includes any legal instrument or 
     device that is similar to a trust; and
       ``(B) the term `benefits under this title' includes 
     supplementary payments pursuant to an agreement for Federal 
     administration under section 1616(a), and payments pursuant 
     to an agreement entered into under section 212(b) of Public 
     Law 93-66.''.
       (2) Effective date.--The amendment made by this subsection 
     shall be effective with respect to transfers that occur at 
     least 90 days after the date of the enactment of this Act.
       (b) Treatment of Assets Held in Trust.--
       (1) Treatment as resource.--Section 1613 (42 U.S.C. 1382) 
     is amended by adding at the end the following new subsection:

                                ``Trusts

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

     SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO 
                   INSTITUTIONALIZED INDIVIDUALS WHOSE MEDICAL 
                   COSTS ARE COVERED BY PRIVATE INSURANCE.

       (a) In General.--Section 1611(e)(1)(B) (42 U.S.C. 
     1382(e)(1)(B)) is amended--
       (1) by striking ``title XIX, or'' and inserting ``title 
     XIX,''; and
       (2) by inserting ``or, in the case of an eligible 
     individual under the age of 18 receiving payments (with 
     respect to such individual) under any health insurance policy 
     issued by a private provider of such insurance'' after 
     ``section 1614(f)(2)(B),''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to benefits for months beginning 90 or more days 
     after the date of the enactment of this Act, without regard 
     to whether regulations have been issued to implement such 
     amendments.
     
[[Page H15337]]


     SEC. 215. REGULATIONS.

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

     SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS 
                   APPLICABLE TO OPTIONAL STATE PROGRAMS FOR 
                   SUPPLEMENTATION OF SSI BENEFITS.

       Section 1618 (42 U.S.C. 1382g) is hereby repealed.
   Subtitle D--Studies Regarding Supplemental Security Income Program

     SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME 
                   PROGRAM.

       Title XVI (42 U.S.C. 1381 et seq.), as amended by section 
     201(c), is amended by adding at the end the following new 
     section:


                       ``ANNUAL REPORT ON PROGRAM

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

     SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

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

     SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

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

     SEC. 241. ESTABLISHMENT.

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

     SEC. 242. DUTIES OF THE COMMISSION.

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

     SEC. 243. MEMBERSHIP.

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

     SEC. 244. STAFF AND SUPPORT SERVICES.

       (a) Director.--
       (1) Appointment.--Upon consultation with the members of the 
     Commission, the Chairperson shall appoint a Director of the 
     Commission.
       (2) Compensation.--The Director shall be paid the rate of 
     basic pay for level V of the Executive Schedule.
       (b) Staff.--With the approval of the Commission, the 
     Director may appoint such personnel as the Director considers 
     appropriate.
     
[[Page H15338]]

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

     SEC. 245. POWERS OF COMMISSION.

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

     SEC. 246. REPORTS.

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

     SEC. 247. TERMINATION.

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

     SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out the purposes of the Commission.
                 Subtitle F--Retirement Age Eligibility

     SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME 
                   BENEFITS BASED ON SOCIAL SECURITY RETIREMENT 
                   AGE.

       (a) In General.--Section 1614(a)(1)(A) (42 U.S.C. 
     1382C(a)(1)(A)) is amended by striking ``is 65 years of age 
     or older,'' and inserting ``has attained retirement age.''.
       (b) Retirement Age Defined.--Section 1614 (42 U.S.C. 1382c) 
     is amended by adding at the end the following new subsection:

                            ``Retirement Age

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

     SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

       Except as otherwise specifically provided, where ever in 
     this title an amendment is expressed in terms of an amendment 
     to or repeal of a section or other provision, the reference 
     shall be considered to be made to that section or other 
     provision of the Social Security Act.
     Subtitle A--Eligibility for Services; Distribution of Payments

     SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT 
                   ENFORCEMENT SERVICES.

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

     SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

     ``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

       ``(a) In General.--An amount collected on behalf of a 
     family as support by a State pursuant to a plan approved 
     under this part shall be distributed as follows:
       ``(1) Families receiving assistance.--In the case of a 
     family receiving assistance from the State, the State shall--
       ``(A) pay to the Federal Government the Federal share of 
     the amount so collected; and
       ``(B) retain, or distribute to the family, the State share 
     of the amount so collected.
       ``(2) Families that formerly received assistance.--In the 
     case of a family that formerly received assistance from the 
     State:
       ``(A) Current support payments.--To the extent that the 
     amount so collected does not exceed the amount required to be 
     paid to the family for the month in which collected, the 
     State shall distribute the amount so collected to the family.
       ``(B) Payments of arrearages.--To the extent that the 
     amount so collected exceeds the amount required to be paid to 
     the family for the month in which collected, the State shall 
     distribute the amount so collected as follows:
       ``(i) Distribution of arrearages that accrued after the 
     family ceased to receive assistance.--
     
[[Page H15339]]


       ``(I) Pre-October 1997.--The provisions of this section 
     (other than subsection (b)(1)) as in effect and applied on 
     the day before the date of the enactment of section 302 of 
     the Personal Responsibility and Work Opportunity Act of 1995 
     shall apply with respect to the distribution of support 
     arrearages that--

       ``(aa) accrued after the family ceased to receive 
     assistance, and
       ``(bb) are collected before October 1, 1997.

       ``(II) Post-September 1997.--With respect the amount so 
     collected on or after October 1, 1997, or before such date, 
     at the option of the State--

       ``(aa) In general.--The State shall first distribute the 
     amount so collected (other than any amount described in 
     clause (iv)) to the family to the extent necessary to satisfy 
     any support arrearages with respect to the family that 
     accrued after the family ceased to receive assistance from 
     the State.
       ``(bb) Reimbursement of governments for assistance provided 
     to the family.--After the application of division (aa) and 
     clause (ii)(II)(aa) with respect to the amount so collected, 
     the State shall retain the State share of the amount so 
     collected, and pay to the Federal Government the Federal 
     share (as defined in subsection (c)(2)(A)) of the amount so 
     collected, but only to the extent necessary to reimburse 
     amounts paid to the family as assistance by the State.
       ``(cc) Distribution of the remainder to the family.--To the 
     extent that neither division (aa) nor division (bb) applies 
     to the amount so collected, the State shall distribute the 
     amount to the family.
       ``(ii) Distribution of arrearages that accrued before the 
     family received assistance.--

       ``(I) Pre-October 2000.--The provisions of this section 
     (other than subsection (b)(1)) as in effect and applied on 
     the day before the date of the enactment of section 302 of 
     the Personal Responsibility and Work Opportunity Act of 1995 
     shall apply with respect to the distribution of support 
     arrearages that--

       ``(aa) accrued before the family received assistance, and
       ``(bb) are collected before October 1, 2000.

       ``(II) Post-September 2000.--Unless, based on the report 
     required by paragraph (4), the Congress determines otherwise, 
     with respect to the amount so collected on or after October 
     1, 2000, or before such date, at the option of the State--

       ``(aa) In general.--The State shall first distribute the 
     amount so collected (other than any amount described in 
     clause (iv)) to the family to the extent necessary to satisfy 
     any support arrearages with respect to the family that 
     accrued before the family received assistance from the State.
       ``(bb) Reimbursement of governments for assistance provided 
     to the family.--After the application of clause (i)(II)(aa) 
     and division (aa) with respect to the amount so collected, 
     the State shall retain the State share of the amount so 
     collected, and pay to the Federal Government the Federal 
     share (as defined in subsection (c)(2)) of the amount so 
     collected, but only to the extent necessary to reimburse of 
     the amounts paid to the family as assistance by the State.
       ``(cc) Distribution of the remainder to the family.--To the 
     extent that neither division (aa) nor division (bb) applies 
     to the amount so collected, the State shall distribute the 
     amount to the family.
       ``(iii) Distribution of arrearages that accrued while the 
     family received assistance.--In the case of a family 
     described in this subparagraph, the provisions of paragraph 
     (1) shall apply with respect to the distribution of support 
     arrearages that accrued while the family received assistance.
       ``(iv) Amounts collected pursuant to section 464.--
     Notwithstanding any other provision of this section, any 
     amount of support collected pursuant to section 464 shall be 
     retained by the State to the extent necessary to reimburse 
     amounts paid to the family as assistance by the State. The 
     State shall pay to the Federal Government the Federal share 
     of the amounts so retained. To the extent the amount 
     collected pursuant to section 464 exceeds the amount so 
     retained, the State shall distribute the excess to the 
     family.
       ``(v) Ordering rules for distributions.--For purposes of 
     this subparagraph, the State shall treat any support 
     arrearages collected as accruing in the following order:

       ``(I) to the period after the family ceased to receive 
     assistance;
       ``(II) to the period before the family received assistance; 
     and
       ``(III) to the period while the family was receiving 
     assistance.

       ``(3) Families that never received assistance.--In the case 
     of any other family, the State shall distribute the amount so 
     collected to the family.
       ``(4) Study and report.--Not later than October 1, 1998, 
     the Secretary shall report to the Congress the Secretary's 
     findings with respect to--
       ``(A) whether the distribution of post-assistance 
     arrearages to families has been effective in moving people 
     off of welfare and keeping them off of welfare;
       ``(B) whether early implementation of a pre-assistance 
     arrearage program by some states has been effective in moving 
     people off of welfare and keeping them off of welfare;
       ``(C) what the overall impact has been of the amendments 
     made by the Personal Responsibility and Work Opportunity Act 
     of 1995 with respect to child support enforcement in moving 
     people off of welfare and keeping them off of welfare; and
       ``(D) based on the information and data the Secretary has 
     obtained, what changes, if any, should be made in the 
     policies related to the distribution of child support 
     arrearages.
       ``(b) Continuation Of Assignments.--Any rights to support 
     obligations, which were assigned to a State as a condition of 
     receiving assistance from the State under part A and which 
     were in effect on the day before the date of the enactment of 
     the Personal Responsibility and Work Opportunity Act of 1995, 
     shall remain assigned after such date.
       ``(c) Definitions.--As used in subsection (a):
       ``(1) Assistance.--The term `assistance from the State' 
     means--
       ``(A) assistance under the State program funded under part 
     A or under the State plan approved under part A of this title 
     (as in effect on the day before the date of the enactment of 
     the Personal Responsibility and Work Opportunity Act of 
     1995); or
       ``(B) benefits under the State plan approved under part E 
     of this title (as in effect on the day before the date of the 
     enactment of the Personal Responsibility and Work Opportunity 
     Act of 1995).
       ``(2) Federal share.--The term `Federal share' means that 
     portion of the amount collected resulting from the 
     application of the Federal medical percentage in effect for 
     the fiscal year in which the amount is collected.
       ``(3) Federal medical assistance percentage.--The term 
     `Federal medical assistance percentage' means--
       ``(A) the Federal medical assistance percentage (as defined 
     in section 1118), in the case of Puerto Rico, the Virgin 
     Islands, Guam, and American Samoa; or
       ``(B) the Federal medical assistance percentage (as defined 
     in section 1905(b)) in the case of any other State.
       ``(4) State share.--The term `State share' means 100 
     percent minus the Federal share.
       ``(d) Hold Harmless Provision.--If the amounts collected 
     which could be retained by the State in the fiscal year (to 
     the extent necessary to reimburse the State for amounts paid 
     to families as assistance by the State) are less than the 
     State share of the amounts collected in fiscal year 1995 
     (determined in accordance with section 457 as in effect on 
     the day before the date of the enactment of the Personal 
     Responsibility and Work Opportunity Act of 1995), the State 
     share for the fiscal year shall be an amount equal to the 
     State share in fiscal year 1995.''.
       (b) Conforming Amendments.--
       (1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by 
     striking ``section 457(b)(4) or (d)(3)'' and inserting 
     ``section 457''.
       (2) Section 454 (42 U.S.C. 654) is amended--
       (A) in paragraph (11)--
       (i) by striking ``(11)'' and inserting ``(11)(A)''; and
       (ii) by inserting after the semicolon ``and''; and
       (B) by redesignating paragraph (12) as subparagraph (B) of 
     paragraph (11).
       (c) Effective Dates.--
       (1) In General.--Except as provided in paragraph (2), the 
     amendments made by this section shall be effective on October 
     1, 1996, or earlier at the State's option.
       (2) Conforming amendments.--The amendments made by 
     subsection (b)(2) shall become effective on the date of the 
     enactment of this Act.

     SEC. 303. PRIVACY SAFEGUARDS.

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

     SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

     SEC. 311. STATE CASE REGISTRY.

       Section 454A, as added by section 344(a)(2) of this Act, is 
     amended by adding at the end the following new subsections:
     
[[Page H15340]]

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

     SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 301(b) and 303(a) of this Act, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (25);
       (2) by striking the period at the end of paragraph (26) and 
     inserting ``; and''; and
       (3) by adding after paragraph (26) the following new 
     paragraph:
       ``(27) provide that, on and after October 1, 1998, the 
     State agency will--
       ``(A) operate a State disbursement unit in accordance with 
     section 454B; and
       ``(B) have sufficient State staff (consisting of State 
     employees) and (at State option) contractors reporting 
     directly to the State agency to--
       ``(i) monitor and enforce support collections through the 
     unit in cases being enforced by the State pursuant to section 
     454(4) (including carrying out the automated data processing 
     responsibilities described in section 454A(g)); and
       ``(ii) take the actions described in section 466(c)(1) in 
     appropriate cases.''.
       (b) Establishment of State Disbursement Unit.--Part D of 
     title IV (42 U.S.C. 651-669), as amended by section 344(a)(2) 
     of this Act, is amended by inserting after section 454A the 
     following new section:

     ``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

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

     SEC. 313. STATE DIRECTORY OF NEW HIRES.

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

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

       ``(a) Establishment.--
       ``(1) In general.--
       ``(A) Requirement for States that have no directory.--
     Except as provided in subparagraph (B), not later than 
     October 1, 1997, each 

[[Page H15341]]
     State shall establish an automated directory (to be known as the `State 
     Directory of New Hires') which shall contain information 
     supplied in accordance with subsection (b) by employers on 
     each newly hired employee.
       ``(B) States with new hire reporting in existence.--A State 
     which has a new hire reporting law in existence on the date 
     of the enactment of this section may continue to operate 
     under the State law, but the State must meet the requirements 
     of this section (other than subsection (f)) not later than 
     October 1, 1997.
       ``(2) Definitions.--As used in this section:
       ``(A) Employee.--The term `employee'--
       ``(i) means an individual who is an employee within the 
     meaning of chapter 24 of the Internal Revenue Code of 1986; 
     and
       ``(ii) does not include an employee of a Federal or State 
     agency performing intelligence or counterintelligence 
     functions, if the head of such agency has determined that 
     reporting pursuant to paragraph (1) with respect to the 
     employee could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission.
       ``(B) Employer.--
       ``(i) In general.--The term `employer' has the meaning 
     given such term in section 3401(d) of the Internal Revenue 
     Code of 1996 and includes any governmental entity and any 
     labor organization.
       ``(ii) Labor organization.--The term `labor organization' 
     shall have the meaning given such term in section 2(5) of the 
     National Labor Relations Act, and includes any entity (also 
     known as a `hiring hall') which is used by the organization 
     and an employer to carry out requirements described in 
     section 8(f)(3) of such Act of an agreement between the 
     organization and the employer.
       ``(b) Employer Information.--
       ``(1) Reporting requirement.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), each employer shall furnish to the Directory of New 
     Hires of the State in which a newly hired employee works, a 
     report that contains the name, address, and social security 
     number of the employee, and the name and address of, and 
     identifying number assigned under section 6109 of the 
     Internal Revenue Code of 1986 to, the employer.
       ``(B) Multistate employers.--An employer that has employees 
     who are employed in 2 or more States and that transmits 
     reports magnetically or electronically may comply with 
     subparagraph (A) by designating 1 State in which such 
     employer has employees to which the employer will transmit 
     the report described in subparagraph (A), and transmitting 
     such report to such State. Any employer that transmits 
     reports pursuant to this subparagraph shall notify the 
     Secretary in writing as to which State such employer 
     designates for the purpose of sending reports.
       ``(C) Federal government employers.--Any department, 
     agency, or instrumentality of the United States shall comply 
     with subparagraph (A) by transmitting the report described in 
     subparagraph (A) to the National Directory of New Hires 
     established pursuant to section 453.
       ``(2) Timing of report.--Each State may provide the time 
     within which the report required by paragraph (1) shall be 
     made with respect to an employee, but such report shall be 
     made--
       ``(A) not later than 20 days after the date the employer 
     hires the employee; or
       ``(B) in the case of an employer transmitting reports 
     magnetically or electronically, by 2 monthly transmissions 
     (if necessary) not less than 12 days nor more than 16 days 
     apart.
       ``(c) Reporting Format and Method.--Each report required by 
     subsection (b) shall be made on a W-4 form or, at the option 
     of the employer, an equivalent form, and may be transmitted 
     by 1st class mail, magnetically, or electronically.
       ``(d) Civil Money Penalties on Noncomplying Employers.--The 
     State shall have the option to set a State civil money 
     penalty which shall be less than--
       ``(1) $25; or
       ``(2) $500 if, under State law, the failure is the result 
     of a conspiracy between the employer and the employee to not 
     supply the required report or to supply a false or incomplete 
     report.
       ``(e) Entry of Employer Information.--Information shall be 
     entered into the data base maintained by the State Directory 
     of New Hires within 5 business days of receipt from an 
     employer pursuant to subsection (b).
       ``(f) Information Comparisons.--
       ``(1) In general.--Not later than May 1, 1998, an agency 
     designated by the State shall, directly or by contract, 
     conduct automated comparisons of the social security numbers 
     reported by employers pursuant to subsection (b) and the 
     social security numbers appearing in the records of the State 
     case registry for cases being enforced under the State plan.
       ``(2) Notice of match.--When an information comparison 
     conducted under paragraph (1) reveals a match with respect to 
     the social security number of an individual required to 
     provide support under a support order, the State Directory of 
     New Hires shall provide the agency administering the State 
     plan approved under this part of the appropriate State with 
     the name, address, and social security number of the employee 
     to whom the social security number is assigned, and the name 
     of, and identifying number assigned under section 6109 of the 
     Internal Revenue Code of 1986 to, the employer.
       ``(g) Transmission of Information.--
       ``(1) Transmission of wage withholding notices to 
     employers.--Within 2 business days after the date information 
     regarding a newly hired employee is entered into the State 
     Directory of New Hires, the State agency enforcing the 
     employee's child support obligation shall transmit a notice 
     to the employer of the employee directing the employer to 
     withhold from the wages of the employee an amount equal to 
     the monthly (or other periodic) child support obligation 
     (including any past due support obligation) of the employee, 
     unless the employee's wages are not subject to withholding 
     pursuant to section 466(b)(3).
       ``(2) Transmissions to the national directory of new 
     hires.--
       ``(A) New hire information.--Within 3 business days after 
     the date information regarding a newly hired employee is 
     entered into the State Directory of New Hires, the State 
     Directory of New Hires shall furnish the information to the 
     National Directory of New Hires.
       ``(B) Wage and unemployment compensation information.--The 
     State Directory of New Hires shall, on a quarterly basis, 
     furnish to the National Directory of New Hires extracts of 
     the reports required under section 303(a)(6) to be made to 
     the Secretary of Labor concerning the wages and unemployment 
     compensation paid to individuals, by such dates, in such 
     format, and containing such information as the Secretary of 
     Health and Human Services shall specify in regulations.
       ``(3) Business day defined.--As used in this subsection, 
     the term `business day' means a day on which State offices 
     are open for regular business.
       ``(h) Other Uses of New Hire Information.--
       ``(1) Location of child support obligors.--The agency 
     administering the State plan approved under this part shall 
     use information received pursuant to subsection (f)(2) to 
     locate individuals for purposes of establishing paternity and 
     establishing, modifying, and enforcing child support 
     obligations.
       ``(2) Verification of eligibility for certain programs.--A 
     State agency responsible for administering a program 
     specified in section 1137(b) shall have access to information 
     reported by employers pursuant to subsection (b) of this 
     section for purposes of verifying eligibility for the 
     program.
       ``(3) Administration of employment security and workers' 
     compensation.--State agencies operating employment security 
     and workers' compensation programs shall have access to 
     information reported by employers pursuant to subsection (b) 
     for the purposes of administering such programs.''.
       (c) Quarterly Wage Reporting.--Section 1137(a)(3) (42 
     U.S.C. 1320b-7(a)(3)) is amended--
       (1) by inserting ``(including State and local governmental 
     entities and labor organizations (as defined in section 
     453A(a)(2)(B)(iii))'' after ``employers''; and
       (2) by inserting ``, and except that no report shall be 
     filed with respect to an employee of a State or local agency 
     performing intelligence or counterintelligence functions, if 
     the head of such agency has determined that filing such a 
     report could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission'' 
     after ``paragraph (2)''.

     SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

       (a) Mandatory Income Withholding.--
       (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
     amended to read as follows:
       ``(1)(A) Procedures described in subsection (b) for the 
     withholding from income of amounts payable as support in 
     cases subject to enforcement under the State plan.
       ``(B) Procedures under which the wages of a person with a 
     support obligation imposed by a support order issued (or 
     modified) in the State before October 1, 1996, if not 
     otherwise subject to withholding under subsection (b), shall 
     become subject to withholding as provided in subsection (b) 
     if arrearages occur, without the need for a judicial or 
     administrative hearing.''.
       (2) Conforming amendments.--
       (A) Section 466(b) (42 U.S.C. 666(b)) is amended in the 
     matter preceding paragraph (1), by striking ``subsection 
     (a)(1)'' and inserting ``subsection (a)(1)(A)''.
       (B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to 
     read as follows:
       ``(4)(A) Such withholding must be carried out in full 
     compliance with all procedural due process requirements of 
     the State, and the State must send notice to each 
     noncustodial parent to whom paragraph (1) applies--
       ``(i) that the withholding has commenced; and
       ``(ii) of the procedures to follow if the noncustodial 
     parent desires to contest such withholding on the grounds 
     that the withholding or the amount withheld is improper due 
     to a mistake of fact.
       ``(B) The notice under subparagraph (A) of this paragraph 
     shall include the information provided to the employer under 
     paragraph (6)(A).''.
       (C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by 
     striking all that follows ``administered by'' and inserting 
     ``the State through the State disbursement unit established 
     pursuant to section 454B, in accordance with the requirements 
     of section 454B.''.
       (D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is 
     amended--
       (i) in clause (i), by striking ``to the appropriate 
     agency'' and all that follows and inserting ``to the State 
     disbursement unit within 2 business days after the date the 
     amount would (but for this subsection) have been paid or 
     credited to the employee, for distribution in accordance with 
     this part. The employer shall comply with the procedural 
     rules relating to income withholding of the State in which 
     the employee works, regardless of the State where the notice 
     originates.''.
       (ii) in clause (ii), by inserting ``be in a standard format 
     prescribed by the Secretary, and'' after ``shall''; and
       (iii) by adding at the end the following new clause:
       ``(iii) As used in this subparagraph, the term `business 
     day' means a day on which State offices are open for regular 
     business.''.
       (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is 
     amended by striking ``any employer'' and all that follows and 
     inserting ``any employer who--
     
[[Page H15342]]

       ``(i) discharges from employment, refuses to employ, or 
     takes disciplinary action against any noncustodial parent 
     subject to wage withholding required by this subsection 
     because of the existence of such withholding and the 
     obligations or additional obligations which it imposes upon 
     the employer; or
       ``(ii) fails to withhold support from wages, or to pay such 
     amounts to the State disbursement unit in accordance with 
     this subsection.''.
       (F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding 
     at the end the following new paragraph:
       ``(11) Procedures under which the agency administering the 
     State plan approved under this part may execute a withholding 
     order without advance notice to the obligor, including 
     issuing the withholding order through electronic means.''.
       (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 
     666(c)) is repealed.

     SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

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

       (a) Expanded Authority To Locate Individuals and Assets.--
     Section 453 (42 U.S.C. 653) is amended--
       (1) in subsection (a), by striking all that follows 
     ``subsection (c))'' and inserting ``, for the purpose of 
     establishing parentage, establishing, setting the amount of, 
     modifying, or enforcing child support obligations, or 
     enforcing child custody or visitation orders--
       ``(1) information on, or facilitating the discovery of, the 
     location of any individual--
       ``(A) who is under an obligation to pay child support or 
     provide child custody or visitation rights;
       ``(B) against whom such an obligation is sought;
       ``(C) to whom such an obligation is owed,
     including the individual's social security number (or 
     numbers), most recent address, and the name, address, and 
     employer identification number of the individual's employer;
       ``(2) information on the individual's wages (or other 
     income) from, and benefits of, employment (including rights 
     to or enrollment in group health care coverage); and
       ``(3) information on the type, status, location, and amount 
     of any assets of, or debts owed by or to, any such 
     individual.''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``social security'' and all that follows through ``absent 
     parent'' and inserting ``information described in subsection 
     (a)''; and
       (B) in the flush paragraph at the end, by adding the 
     following: ``No information shall be disclosed to any person 
     if the State has notified the Secretary that the State has 
     reasonable evidence of domestic violence or child abuse and 
     the disclosure of such information could be harmful to the 
     custodial parent or the child of such parent. Information 
     received or transmitted pursuant to this section shall be 
     subject to the safeguard provisions contained in section 
     454(26).''.
       (b) Authorized Person for Information Regarding Visitation 
     Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
       (1) in paragraph (1), by striking ``support'' and inserting 
     ``support or to seek to enforce orders providing child 
     custody or visitation rights''; and
       (2) in paragraph (2), by striking ``, or any agent of such 
     court; and'' and inserting ``or to issue an order against a 
     resident parent for child custody or visitation rights, or 
     any agent of such court;''.
       (c) Reimbursement for Information From Federal Agencies.--
     Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th 
     sentence by inserting ``in an amount which the Secretary 
     determines to be reasonable payment for the information 
     exchange (which amount shall not include payment for the 
     costs of obtaining, compiling, or maintaining the 
     information)'' before the period.
       (d) Reimbursement for Reports by State Agencies.--Section 
     453 (42 U.S.C. 653) is amended by adding at the end the 
     following new subsection:
       ``(g) Reimbursement for Reports by State Agencies.--The 
     Secretary may reimburse Federal and State agencies for the 
     costs incurred by such entities in furnishing information 
     requested by the Secretary under this section in an amount 
     which the Secretary determines to be reasonable payment for 
     the information exchange (which amount shall not include 
     payment for the costs of obtaining, compiling, or maintaining 
     the information).''.
       (e) Conforming Amendments.--
       (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
     463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
     and 663(f)) are each amended by inserting ``Federal'' before 
     ``Parent'' each place such term appears.
       (2) Section 453 (42 U.S.C. 653) is amended in the heading 
     by adding ``federal'' before ``parent''.
       (f) New Components.--Section 453 (42 U.S.C. 653), as 
     amended by subsection (d) of this section, is amended by 
     adding at the end the following new subsections:
       ``(h) Federal Case Registry of Child Support Orders.--
       ``(1) In general.--Not later than October 1, 1998, in order 
     to assist States in administering programs under State plans 
     approved under this part and programs funded under part A, 
     and for the other purposes specified in this section, the 
     Secretary shall establish and maintain in the Federal Parent 
     Locator Service an automated registry (which shall be known 
     as the `Federal Case Registry of Child Support Orders'), 
     which shall contain abstracts of support orders and other 
     information described in paragraph (2) with respect to each 
     case in each State case registry maintained pursuant to 
     section 454A(e), as furnished (and regularly updated), 
     pursuant to section 454A(f), by State agencies administering 
     programs under this part.
       ``(2) Case information.--The information referred to in 
     paragraph (1) with respect to a case shall be such 
     information as the Secretary may specify in regulations 
     (including the names, social security numbers or other 
     uniform identification numbers, and State case identification 
     numbers) to identify the individuals who owe or are owed 
     support (or with respect to or on behalf of whom support 
     obligations are sought to be established), and the State or 
     States which have the case.
       ``(i) National Directory of New Hires.--
       ``(1) In general.--In order to assist States in 
     administering programs under State plans approved under this 
     part and programs funded under part A, and for the other 
     purposes specified in this section, the Secretary shall, not 
     later than October 1, 1996, establish and maintain in the 
     Federal Parent Locator Service an automated directory to be 
     known as the National Directory of New Hires, which shall 
     contain the information supplied pursuant to section 
     453A(g)(2).
       ``(2) Entry of data.--Information shall be entered into the 
     data base maintained by the National Directory of New Hires 
     within 2 business days of receipt pursuant to section 
     453A(g)(2).
       ``(3) Administration of federal tax laws.--The Secretary of 
     the Treasury shall have access to the information in the 
     National Directory of New Hires for purposes of administering 
     section 32 of the Internal Revenue Code of 1986, or the 
     advance payment of the earned income tax credit under section 
     3507 of such Code, and verifying a claim with respect to 
     employment in a tax return.
       ``(4) List of multistate employers.--The Secretary shall 
     maintain within the National Directory of New Hires a list of 
     multistate employers that report information regarding newly 
     hired employees pursuant to section 453A(b)(1)(B), and the 
     State which each such employer has designated to receive such 
     information.
       ``(j) Information Comparisons and Other Disclosures.--
       ``(1) Verification by social security administration.--
       ``(A) In general.--The Secretary shall transmit information 
     on individuals and employers maintained under this section to 
     the Social Security Administration to the extent necessary 
     for verification in accordance with subparagraph (B).
       ``(B) Verification by ssa.--The Social Security 
     Administration shall verify the accuracy of, correct, or 
     supply to the extent possible, and report to the Secretary, 
     the following information supplied by the Secretary pursuant 
     to subparagraph (A):
       ``(i) The name, social security number, and birth date of 
     each such individual.
       ``(ii) The employer identification number of each such 
     employer.
       ``(2) Information comparisons.--For the purpose of locating 
     individuals in a paternity establishment case or a case 
     involving the establishment, modification, or enforcement of 
     a support order, the Secretary shall--
       ``(A) compare information in the National Directory of New 
     Hires against information in the support case abstracts in 
     the Federal Case Registry of Child Support Orders not less 
     often than every 2 business days; and
       ``(B) within 2 such days after such a comparison reveals a 
     match with respect to an individual, report the information 
     to the State agency responsible for the case.
       ``(3) Information comparisons and disclosures of 
     information in all registries for title iv program 
     purposes.--To the extent and with the frequency that the 
     Secretary determines to be effective in assisting States to 
     carry out their responsibilities under programs operated 
     under this part and programs funded under part A, the 
     Secretary shall--
       ``(A) compare the information in each component of the 
     Federal Parent Locator Service maintained under this section 
     against the information in each other such component (other 
     than the comparison required by paragraph (2)), and report 
     instances in which such a comparison reveals a match with 
     respect to an individual to State agencies operating such 
     programs; and
       ``(B) disclose information in such registries to such State 
     agencies.
       ``(4) Provision of new hire information to the social 
     security administration.--The National Directory of New Hires 
     shall provide the Commissioner of Social Security with all 
     information in the National Directory, which shall be used to 
     determine the accuracy of payments under the supplemental 
     security income program under title XVI and in connection 
     with benefits under title II.
       ``(5) Research.--The Secretary may provide access to 
     information reported by employers pursuant to section 453A(b) 
     for research purposes found by the Secretary to be likely to 
     contribute to achieving the purposes of part A or this part, 
     but without personal identifiers.
       ``(k) Fees.--
       ``(1) For ssa verification.--The Secretary shall reimburse 
     the Commissioner of Social Security, at a rate negotiated 
     between the Secretary and the Commissioner, for the costs 
     incurred by the Commissioner in performing the verification 
     services described in subsection (j).
       ``(2) For information from state directories of new 
     hires.--The Secretary shall reimburse costs incurred by State 
     directories of 

[[Page H15343]]
     new hires in furnishing information as required by subsection (j)(3), 
     at rates which the Secretary determines to be reasonable 
     (which rates shall not include payment for the costs of 
     obtaining, compiling, or maintaining such information).
       ``(3) For information furnished to state and federal 
     agencies.--A State or Federal agency that receives 
     information from the Secretary pursuant to this section shall 
     reimburse the Secretary for costs incurred by the Secretary 
     in furnishing the information, at rates which the Secretary 
     determines to be reasonable (which rates shall include 
     payment for the costs of obtaining, verifying, maintaining, 
     and comparing the information).
       ``(l) Restriction on Disclosure and Use.--Information in 
     the Federal Parent Locator Service, and information resulting 
     from comparisons using such information, shall not be used or 
     disclosed except as expressly provided in this section, 
     subject to section 6103 of the Internal Revenue Code of 1986.
       ``(m) Information Integrity and Security.--The Secretary 
     shall establish and implement safeguards with respect to the 
     entities established under this section designed to--
       ``(1) ensure the accuracy and completeness of information 
     in the Federal Parent Locator Service; and
       ``(2) restrict access to confidential information in the 
     Federal Parent Locator Service to authorized persons, and 
     restrict use of such information to authorized purposes.
       ``(n) Federal Government Reporting.--Each department, 
     agency, and instrumentality of the United States shall on a 
     quarterly basis report to the Federal Parent Locator Service 
     the name and social security number of each employee and the 
     wages paid to the employee during the previous quarter, 
     except that such a report shall not be filed with respect to 
     an employee of a department, agency, or instrumentality 
     performing intelligence or counterintelligence functions, if 
     the head of such department, agency, or instrumentality has 
     determined that filing such a report could endanger the 
     safety of the employee or compromise an ongoing investigation 
     or intelligence mission.''.
       (g) Conforming Amendments.--
       (1) To part d of title iv of the social security act.--
       (A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to 
     read as follows:
       ``(B) the Federal Parent Locator Service established under 
     section 453;''.
       (B) Section 454(13) (42 U.S.C.654(13)) is amended by 
     inserting ``and provide that information requests by parents 
     who are residents of other States be treated with the same 
     priority as requests by parents who are residents of the 
     State submitting the plan'' before the semicolon.
       (2) To federal unemployment tax act.--Section 3304(a)(16) 
     of the Internal Revenue Code of 1986 is amended--
       (A) by striking ``Secretary of Health, Education, and 
     Welfare'' each place such term appears and inserting 
     ``Secretary of Health and Human Services'';
       (B) in subparagraph (B), by striking ``such information'' 
     and all that follows and inserting ``information furnished 
     under subparagraph (A) or (B) is used only for the purposes 
     authorized under such subparagraph;'';
       (C) by striking ``and'' at the end of subparagraph (A);
       (D) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (E) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) wage and unemployment compensation information 
     contained in the records of such agency shall be furnished to 
     the Secretary of Health and Human Services (in accordance 
     with regulations promulgated by such Secretary) as necessary 
     for the purposes of the National Directory of New Hires 
     established under section 453(i) of the Social Security Act, 
     and''.
       (3) To state grant program under title iii of the social 
     security act.--Subsection (h) of section 303 (42 U.S.C. 503) 
     is amended to read as follows:
       ``(h)(1) The State agency charged with the administration 
     of the State law shall, on a reimbursable basis--
       ``(A) disclose quarterly, to the Secretary of Health and 
     Human Services wage and claim information, as required 
     pursuant to section 453(i)(1), contained in the records of 
     such agency;
       ``(B) ensure that information provided pursuant to 
     subparagraph (A) meets such standards relating to correctness 
     and verification as the Secretary of Health and Human 
     Services, with the concurrence of the Secretary of Labor, may 
     find necessary; and
       ``(C) establish such safeguards as the Secretary of Labor 
     determines are necessary to insure that information disclosed 
     under subparagraph (A) is used only for purposes of section 
     453(i)(1) in carrying out the child support enforcement 
     program under title IV.
       ``(2) Whenever the Secretary of Labor, after reasonable 
     notice and opportunity for hearing to the State agency 
     charged with the administration of the State law, finds that 
     there is a failure to comply substantially with the 
     requirements of paragraph (1), the Secretary of Labor shall 
     notify such State agency that further payments will not be 
     made to the State until the Secretary of Labor is satisfied 
     that there is no longer any such failure. Until the Secretary 
     of Labor is so satisfied, the Secretary shall make no future 
     certification to the Secretary of the Treasury with respect 
     to the State.
       ``(3) For purposes of this subsection--
       ``(A) the term `wage information' means information 
     regarding wages paid to an individual, the social security 
     account number of such individual, and the name, address, 
     State, and the Federal employer identification number of the 
     employer paying such wages to such individual; and
       ``(B) the term `claim information' means information 
     regarding whether an individual is receiving, has received, 
     or has made application for, unemployment compensation, the 
     amount of any such compensation being received (or to be 
     received by such individual), and the individual's current 
     (or most recent) home address.''.
       (4) Disclosure of certain information to agents of child 
     support enforcement agencies.--
       (A) In general.--Paragraph (6) of section 6103(l) of the 
     Internal Revenue Code of 1986 (relating to disclosure of 
     return information to Federal, State, and local child support 
     enforcement agencies) is amended by redesignating 
     subparagraph (B) as subparagraph (C) and by inserting after 
     subparagraph (A) the following new subparagraph:
       ``(B) Disclosure to certain agents.--The following 
     information disclosed to any child support enforcement agency 
     under subparagraph (A) with respect to any individual with 
     respect to whom child support obligations are sought to be 
     established or enforced may be disclosed by such agency to 
     any agent of such agency which is under contract with such 
     agency to carry out the purposes described in subparagraph 
     (C):
       ``(i) The address and social security account number (or 
     numbers) of such individual.
       ``(ii) The amount of any reduction under section 6402(c) 
     (relating to offset of past-due support against overpayments) 
     in any overpayment otherwise payable to such individual.''
       (B) Conforming amendments.--
       (i) Paragraph (3) of section 6103(a) of such Code is 
     amended by striking ``(l)(12)'' and inserting ``paragraph (6) 
     or (12) of subsection (l)''.
       (ii) Subparagraph (C) of section 6103(l)(6) of such Code, 
     as redesignated by subsection (a), is amended to read as 
     follows:
       ``(C) Restriction on disclosure.--Information may be 
     disclosed under this paragraph only for purposes of, and to 
     the extent necessary in, establishing and collecting child 
     support obligations from, and locating, individuals owing 
     such obligations.''
       (iii) The material following subparagraph (F) of section 
     6103(p)(4) of such Code is amended by striking ``subsection 
     (l)(12)(B)'' and inserting ``paragraph (6)(A) or (12)(B) of 
     subsection (l)''.

     SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR 
                   USE IN CHILD SUPPORT ENFORCEMENT.

       (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
     666(a)), as amended by section 315 of this Act, is amended by 
     adding at the end the following new paragraph:
       ``(13) Recording of social security numbers in certain 
     family matters.--Procedures requiring that the social 
     security number of--
       ``(A) any applicant for a professional license, commercial 
     driver's license, occupational license, or marriage license 
     be recorded on the application;
       ``(B) any individual who is subject to a divorce decree, 
     support order, or paternity determination or acknowledgment 
     be placed in the records relating to the matter; and
       ``(C) any individual who has died be placed in the records 
     relating to the death and be recorded on the death 
     certificate.

     For purposes of subparagraph (A), if a State allows the use 
     of a number other than the social security number, the State 
     shall so advise any applicants.''.
       (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
     405(c)(2)(C)), as amended by section 321(a)(9) of the Social 
     Security Independence and Program Improvements Act of 1994, 
     is amended--
       (1) in clause (i), by striking ``may require'' and 
     inserting ``shall require'';
       (2) in clause (ii), by inserting after the 1st sentence the 
     following: ``In the administration of any law involving the 
     issuance of a marriage certificate or license, each State 
     shall require each party named in the certificate or license 
     to 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.'';
       (3) in clause (ii), by inserting ``or marriage 
     certificate'' after ``Such numbers shall not be recorded on 
     the birth certificate''.
       (4) in clause (vi), by striking ``may'' and inserting 
     ``shall''; and
       (5) by adding at the end the following new clauses:
       ``(x) An agency of a State (or a political subdivision 
     thereof) charged with the administration of any law 
     concerning the issuance or renewal of a license, certificate, 
     permit, or other authorization to engage in a profession, an 
     occupation, or a commercial activity shall require all 
     applicants for issuance or renewal of the license, 
     certificate, permit, or other authorization to provide the 
     applicant's social security number to the agency for the 
     purpose of administering such laws, and for the purpose of 
     responding to requests for information from an agency 
     operating pursuant to part D of title IV.
       ``(xi) All divorce decrees, support orders, and paternity 
     determinations issued, and all paternity acknowledgments 
     made, in each State shall include the social security number 
     of each party to the decree, order, determination, or 
     acknowledgement in the records relating to the matter, for 
     the purpose of responding to requests for information from an 
     agency operating pursuant to part D of title IV.''.
         Subtitle C--Streamlining and Uniformity of Procedures

     SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

       Section 466 (42 U.S.C. 666) is amended by adding at the end 
     the following new subsection:
       ``(f) Uniform Interstate Family Support Act.--
       ``(1) Enactment and use.--In order to satisfy section 
     454(20)(A), on and after January 1, 1998, each State must 
     have in effect the Uniform Interstate Family Support Act, as 
     approved by 

[[Page H15344]]
     the American Bar Association on February 9, 1993, together with any 
     amendments officially adopted before January 1, 1998 by the 
     National Conference of Commissioners on Uniform State Laws.
       ``(2) Employers to follow procedural rules of State where 
     employee works.--The State law enacted pursuant to paragraph 
     (1) shall provide that an employer that receives an income 
     withholding order or notice pursuant to section 501 of the 
     Uniform Interstate Family Support Act follow the procedural 
     rules that apply with respect to such order or notice under 
     the laws of the State in which the obligor works.

     SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD 
                   SUPPORT ORDERS.

       Section 1738B of title 28, United States Code, is amended--
       (1) in subsection (a)(2), by striking ``subsection (e)'' 
     and inserting ``subsections (e), (f), and (i)'';
       (2) in subsection (b), by inserting after the 2nd 
     undesignated paragraph the following:
       `` `child's home State' means the State in which a child 
     lived with a parent or a person acting as parent for at least 
     6 consecutive months immediately preceding the time of filing 
     of a petition or comparable pleading for support and, if a 
     child is less than 6 months old, the State in which the child 
     lived from birth with any of them. A period of temporary 
     absence of any of them is counted as part of the 6-month 
     period.'';
       (3) in subsection (c), by inserting ``by a court of a 
     State'' before ``is made'';
       (4) in subsection (c)(1), by inserting ``and subsections 
     (e), (f), and (g)'' after ``located'';
       (5) in subsection (d)--
       (A) by inserting ``individual'' before ``contestant''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)'';
       (6) in subsection (e), by striking ``make a modification of 
     a child support order with respect to a child that is made'' 
     and inserting ``modify a child support order issued'';
       (7) in subsection (e)(1), by inserting ``pursuant to 
     subsection (i)'' before the semicolon;
       (8) in subsection (e)(2)--
       (A) by inserting ``individual'' before ``contestant'' each 
     place such term appears; and
       (B) by striking ``to that court's making the modification 
     and assuming'' and inserting ``with the State of continuing, 
     exclusive jurisdiction for a court of another State to modify 
     the order and assume'';
       (9) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (10) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Recognition of Child Support Orders.--If 1 or more 
     child support orders have been issued in this or another 
     State with regard to an obligor and a child, a court shall 
     apply the following rules in determining which order to 
     recognize for purposes of continuing, exclusive jurisdiction 
     and enforcement:
       ``(1) If only 1 court has issued a child support order, the 
     order of that court must be recognized.
       ``(2) If 2 or more courts have issued child support orders 
     for the same obligor and child, and only 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, the order of that court must be recognized.
       ``(3) If 2 or more courts have issued child support orders 
     for the same obligor and child, and more than 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, an order issued by a court in the current home State 
     of the child must be recognized, but if an order has not been 
     issued in the current home State of the child, the order most 
     recently issued must be recognized.
       ``(4) If 2 or more courts have issued child support orders 
     for the same obligor and child, and none of the courts would 
     have continuing, exclusive jurisdiction under this section, a 
     court may issue a child support order, which must be 
     recognized.
       ``(5) The court that has issued an order recognized under 
     this subsection is the court having continuing, exclusive 
     jurisdiction.'';
       (11) in subsection (g) (as so redesignated)--
       (A) by striking ``Prior'' and inserting ``Modified''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)'';
       (12) in subsection (h) (as so redesignated)--
       (A) in paragraph (2), by inserting ``including the duration 
     of current payments and other obligations of support'' before 
     the comma; and
       (B) in paragraph (3), by inserting ``arrears under'' after 
     ``enforce''; and
       (13) by adding at the end the following new subsection:
       ``(i) Registration for Modification.--If there is no 
     individual contestant or child residing in the issuing State, 
     the party or support enforcement agency seeking to modify, or 
     to modify and enforce, a child support order issued in 
     another State shall register that order in a State with 
     jurisdiction over the nonmovant for the purpose of 
     modification.''.

     SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     315 and 317(a) of this Act, is amended by adding at the end 
     the following new paragraph:
       ``(14) Administrative enforcement in interstate cases.--
     Procedures under which--
       ``(A)(i) the State shall respond within 5 business days to 
     a request made by another State to enforce a support order; 
     and
       ``(ii) the term `business day' means a day on which State 
     offices are open for regular business;
       ``(B) the State may, by electronic or other means, transmit 
     to another State a request for assistance in a case involving 
     the enforcement of a support order, which request--
       ``(i) shall include such information as will enable the 
     State to which the request is transmitted to compare the 
     information about the case to the information in the data 
     bases of the State; and
       ``(ii) shall constitute a certification by the requesting 
     State--

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

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

     SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

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

     SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
     as amended by section 314 of this Act, is amended--
       (1) in subsection (a)(2), by striking the 1st sentence and 
     inserting the following: ``Expedited administrative and 
     judicial procedures (including the procedures specified in 
     subsection (c)) for establishing paternity and for 
     establishing, modifying, and enforcing support 
     obligations.''; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Expedited Procedures.--The procedures specified in 
     this subsection are the following:
       ``(1) Administrative action by state agency.--Procedures 
     which give the State agency the authority to take the 
     following actions relating to establishment or enforcement of 
     support orders, without the necessity of obtaining an order 
     from any other judicial or administrative tribunal, and to 
     recognize and enforce the authority of State agencies of 
     other States) to take the following actions:
       ``(A) Genetic testing.--To order genetic testing for the 
     purpose of paternity establishment as provided in section 
     466(a)(5).
       ``(B) Financial or other information.--To subpoena any 
     financial or other information needed to establish, modify, 
     or enforce a support order, and to impose penalties for 
     failure to respond to such a subpoena.
       ``(C) Response to state agency request.--To require all 
     entities in the State (including for-profit, nonprofit, and 
     governmental employers) to provide promptly, in response to a 
     request by the State agency of that or any other State 
     administering a program under this part, information on the 
     employment, compensation, and benefits of any individual 
     employed by such entity as an employee or contractor, and to 
     sanction failure to respond to any such request.
       ``(D) Access to certain records.--To obtain access, subject 
     to safeguards on privacy and information security, to the 
     following records (including automated access, in the case of 
     records maintained in automated data bases):
       ``(i) Records of other State and local government agencies, 
     including--

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

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

       ``(I) customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on individuals who owe or are owed support (or 
     against or with respect to 

[[Page H15345]]
     whom a support obligation is sought) held by financial institutions 
     (subject to limitations on liability of such entities arising 
     from affording such access), as provided pursuant to 
     agreements described in subsection (a)(18).

       ``(E) Change in payee.--In cases in which support is 
     subject to an assignment in order to comply with a 
     requirement imposed pursuant to part A or section 1912, or to 
     a requirement to pay through the State disbursement unit 
     established pursuant to section 454B, upon providing notice 
     to obligor and obligee, to direct the obligor or other payor 
     to change the payee to the appropriate government entity.
       ``(F) Income withholding.--To order income withholding in 
     accordance with subsections (a)(1) and (b) of section 466.
       ``(G) Securing assets.--In cases in which there is a 
     support arrearage, to secure assets to satisfy the arrearage 
     by--
       ``(i) intercepting or seizing periodic or lump-sum payments 
     from--

       ``(I) a State or local agency, including unemployment 
     compensation, workers' compensation, and other benefits; and
       ``(II) judgments, settlements, and lotteries;

       ``(ii) attaching and seizing assets of the obligor held in 
     financial institutions;
       ``(iii) attaching public and private retirement funds; and
       ``(iv) imposing liens in accordance with subsection (a)(4) 
     and, in appropriate cases, to force sale of property and 
     distribution of proceeds.
       ``(H) Increase monthly payments.--For the purpose of 
     securing overdue support, to increase the amount of monthly 
     support payments to include amounts for arrearages, subject 
     to such conditions or limitations as the State may provide.

     Such procedures shall be subject to due process safeguards, 
     including (as appropriate) requirements for notice, 
     opportunity to contest the action, and opportunity for an 
     appeal on the record to an independent administrative or 
     judicial tribunal.
       ``(2) Substantive and procedural rules.--The expedited 
     procedures required under subsection (a)(2) shall include the 
     following rules and authority, applicable with respect to all 
     proceedings to establish paternity or to establish, modify, 
     or enforce support orders:
       ``(A) Locator information; presumptions concerning 
     notice.--Procedures under which--
       ``(i) each party to any paternity or child support 
     proceeding is required (subject to privacy safeguards) to 
     file with the tribunal and the State case registry upon entry 
     of an order, and to update as appropriate, information on 
     location and identity of the party, including social security 
     number, residential and mailing addresses, telephone number, 
     driver's license number, and name, address, and name and 
     telephone number of employer; and
       ``(ii) in any subsequent child support enforcement action 
     between the parties, upon sufficient showing that diligent 
     effort has been made to ascertain the location of such a 
     party, the tribunal may deem State due process requirements 
     for notice and service of process to be met with respect to 
     the party, upon delivery of written notice to the most recent 
     residential or employer address filed with the tribunal 
     pursuant to clause (i).
       ``(B) Statewide jurisdiction.--Procedures under which--
       ``(i) the State agency and any administrative or judicial 
     tribunal with authority to hear child support and paternity 
     cases exerts statewide jurisdiction over the parties; and
       ``(ii) in a State in which orders are issued by courts or 
     administrative tribunals, a case may be transferred between 
     local jurisdictions in the State without need for any 
     additional filing by the petitioner, or service of process 
     upon the respondent, to retain jurisdiction over the parties.
       ``(3) Coordination with erisa.--Notwithstanding subsection 
     (d) of section 514 of the Employee Retirement Income Security 
     Act of 1974 (relating to effect on other laws), nothing in 
     this subsection shall be construed to alter, amend, modify, 
     invalidate, impair, or supersede subsections (a), (b), and 
     (c) of such section 514 as it applies with respect to any 
     procedure referred to in paragraph (1) and any expedited 
     procedure referred to in paragraph (2), except to the extent 
     that such procedure would be consistent with the requirements 
     of section 206(d)(3) of such Act (relating to qualified 
     domestic relations orders) or the requirements of section 
     609(a) of such Act (relating to qualified medical child 
     support orders) if the reference in such section 206(d)(3) to 
     a domestic relations order and the reference in such section 
     609(a) to a medical child support order were a reference to a 
     support order referred to in paragraphs (1) and (2) relating 
     to the same matters, respectively.''.
       (b) Automation of State Agency Functions.--Section 454A, as 
     added by section 344(a)(2) and as amended by sections 311 and 
     312(c) of this Act, is amended by adding at the end the 
     following new subsection:
       ``(h) Expedited Administrative Procedures.--The automated 
     system required by this section shall be used, to the maximum 
     extent feasible, to implement the expedited administrative 
     procedures required by section 466(c).''.
                  Subtitle D--Paternity Establishment

     SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

       (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 
     666(a)(5)) is amended to read as follows:
       ``(5) Procedures concerning paternity establishment.--
       ``(A) Establishment process available from birth until age 
     18.--
       ``(i) Procedures which permit the establishment of the 
     paternity of a child at any time before the child attains 18 
     years of age.
       ``(ii) As of August 16, 1984, clause (i) shall also apply 
     to a child for whom paternity has not been established or for 
     whom a paternity action was brought but dismissed because a 
     statute of limitations of less than 18 years was then in 
     effect in the State.
       ``(B) Procedures concerning genetic testing.--
       ``(i) Genetic testing required in certain contested 
     cases.--Procedures under which the State is required, in a 
     contested paternity case (unless otherwise barred by State 
     law) to require the child and all other parties (other than 
     individuals found under section 454(29) to have good cause 
     for refusing to cooperate) to submit to genetic tests upon 
     the request of any such party, if the request is supported by 
     a sworn statement by the party--

       ``(I) alleging paternity, and setting forth facts 
     establishing a reasonable possibility of the requisite sexual 
     contact between the parties; or
       ``(II) denying paternity, and setting forth facts 
     establishing a reasonable possibility of the nonexistence of 
     sexual contact between the parties.

       ``(ii) Other requirements.--Procedures which require the 
     State agency, in any case in which the agency orders genetic 
     testing--

       ``(I) to pay costs of such tests, subject to recoupment (if 
     the State so elects) from the alleged father if paternity is 
     established; and
       ``(II) to obtain additional testing in any case if an 
     original test result is contested, upon request and advance 
     payment by the contestant.

       ``(C) Voluntary paternity acknowledgment.--
       ``(i) Simple civil process.--Procedures for a simple civil 
     process for voluntarily acknowledging paternity under which 
     the State must provide that, before a mother and a putative 
     father can sign an acknowledgment of paternity, the mother 
     and the putative father must be given notice, orally and in 
     writing, of the alternatives to, the legal consequences of, 
     and the rights (including, if 1 parent is a minor, any rights 
     afforded due to minority status) and responsibilities that 
     arise from, signing the acknowledgment.
       ``(ii) Hospital-based program.--Such procedures must 
     include a hospital-based program for the voluntary 
     acknowledgment of paternity focusing on the period 
     immediately before or after the birth of a child, subject to 
     such good cause exceptions, taking into account the best 
     interests of the child, as the State may establish.
       ``(iii) Paternity establishment services.--

       ``(I) State-offered services.--Such procedures must require 
     the State agency responsible for maintaining birth records to 
     offer voluntary paternity establishment services.
       ``(II) Regulations.--

       ``(aa) Services offered by hospitals and birth record 
     agencies.--The Secretary shall prescribe regulations 
     governing voluntary paternity establishment services offered 
     by hospitals and birth record agencies.
       ``(bb) Services offered by other entities.--The Secretary 
     shall prescribe regulations specifying the types of other 
     entities that may offer voluntary paternity establishment 
     services, and governing the provision of such services, which 
     shall include a requirement that such an entity must use the 
     same notice provisions used by, use the same materials used 
     by, provide the personnel providing such services with the 
     same training provided by, and evaluate the provision of such 
     services in the same manner as the provision of such services 
     is evaluated by, voluntary paternity establishment programs 
     of hospitals and birth record agencies.
       ``(iv) Use of paternity acknowledgment affidavit.--Such 
     procedures must require the State to develop and use an 
     affidavit for the voluntary acknowledgment of paternity which 
     includes the minimum requirements of the affidavit developed 
     by the Secretary under section 452(a)(7) for the voluntary 
     acknowledgment of paternity, and to give full faith and 
     credit to such an affidavit signed in any other State 
     according to its procedures.
       ``(D) Status of signed paternity acknowledgment.--
       ``(i) Inclusion in birth records.--Procedures under which 
     the name of the father shall be included on the record of 
     birth of the child of unmarried parents only if--

       ``(I) the father and mother have signed a voluntary 
     acknowledgment of paternity; or
       ``(II) a court or an administrative agency of competent 
     jurisdiction has issued an adjudication of paternity.

     Nothing in this clause shall preclude a State agency from 
     obtaining an admission of paternity from the father for 
     submission in a judicial or administrative proceeding, or 
     prohibit the issuance of an order in a judicial or 
     administrative proceeding which bases a legal finding of 
     paternity on an admission of paternity by the father and any 
     other additional showing required by State law.
       ``(ii) Legal finding of paternity.--Procedures under which 
     a signed voluntary acknowledgment of paternity is considered 
     a legal finding of paternity, subject to the right of any 
     signatory to rescind the acknowledgment within the earlier 
     of--

       ``(I) 60 days; or
       ``(II) the date of an administrative or judicial proceeding 
     relating to the child (including a proceeding to establish a 
     support order) in which the signatory is a party.

       ``(iii) Contest.--Procedures under which, after the 60-day 
     period referred to in clause (ii), a signed voluntary 
     acknowledgment of paternity may be challenged in court only 
     on the basis of fraud, duress, or material mistake of fact, 
     with the burden of proof upon the challenger, and under which 
     the legal responsibilities (including child support 
     obligations) of any signatory arising from the acknowledgment 
     may not be suspended during the challenge, except for good 
     cause shown.
     
[[Page H15346]]

       ``(E) Bar on acknowledgment ratification proceedings.--
     Procedures under which judicial or administrative proceedings 
     are not required or permitted to ratify an unchallenged 
     acknowledgment of paternity.
       ``(F) Admissibility of genetic testing results.--
     Procedures--
       ``(i) requiring the admission into evidence, for purposes 
     of establishing paternity, of the results of any genetic test 
     that is--

       ``(I) of a type generally acknowledged as reliable by 
     accreditation bodies designated by the Secretary; and
       ``(II) performed by a laboratory approved by such an 
     accreditation body;

       ``(ii) requiring an objection to genetic testing results to 
     be made in writing not later than a specified number of days 
     before any hearing at which the results may be introduced 
     into evidence (or, at State option, not later than a 
     specified number of days after receipt of the results); and
       ``(iii) making the test results admissible as evidence of 
     paternity without the need for foundation testimony or other 
     proof of authenticity or accuracy, unless objection is made.
       ``(G) Presumption of paternity in certain cases.--
     Procedures which create a rebuttable or, at the option of the 
     State, conclusive presumption of paternity upon genetic 
     testing results indicating a threshold probability that the 
     alleged father is the father of the child.
       ``(H) Default orders.--Procedures requiring a default order 
     to be entered in a paternity case upon a showing of service 
     of process on the defendant and any additional showing 
     required by State law.
       ``(I) No right to jury trial.--Procedures providing that 
     the parties to an action to establish paternity are not 
     entitled to a trial by jury.
       ``(J) Temporary support order based on probable paternity 
     in contested cases.--Procedures which require that a 
     temporary order be issued, upon motion by a party, requiring 
     the provision of child support pending an administrative or 
     judicial determination of parentage, if there is clear and 
     convincing evidence of paternity (on the basis of genetic 
     tests or other evidence).
       ``(K) Proof of certain support and paternity establishment 
     costs.--Procedures under which bills for pregnancy, 
     childbirth, and genetic testing are admissible as evidence 
     without requiring third-party foundation testimony, and shall 
     constitute prima facie evidence of amounts incurred for such 
     services or for testing on behalf of the child.
       ``(L) Standing of putative fathers.--Procedures ensuring 
     that the putative father has a reasonable opportunity to 
     initiate a paternity action.
       ``(M) Filing of acknowledgments and adjudications in state 
     registry of birth records.--Procedures under which voluntary 
     acknowledgments and adjudications of paternity by judicial or 
     administrative processes are filed with the State registry of 
     birth records for comparison with information in the State 
     case registry.''.
       (b) National Paternity Acknowledgment Affidavit.--Section 
     452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, 
     and develop an affidavit to be used for the voluntary 
     acknowledgment of paternity which shall include the social 
     security number of each parent and, after consultation with 
     the States, other common elements as determined by such 
     designee'' before the semicolon.
       (c) Conforming Amendment.--Section 468 (42 U.S.C. 668) is 
     amended by striking ``a simple civil process for voluntarily 
     acknowledging paternity and''.

     SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

       Section 454(23) (42 U.S.C. 654(23)) is amended by inserting 
     ``and will publicize the availability and encourage the use 
     of procedures for voluntary establishment of paternity and 
     child support by means the State deems appropriate'' before 
     the semicolon.

     SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF 
                   TEMPORARY FAMILY ASSISTANCE.

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

     SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

     SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

       (a) State Agency Activities.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) in paragraph (14), by striking ``(14)'' and inserting 
     ``(14)(A)'';
       (2) by redesignating paragraph (15) as subparagraph (B) of 
     paragraph (14); and
       (3) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) provide for--
       ``(A) a process for annual reviews of and reports to the 
     Secretary on the State program operated under the State plan 
     approved under this part, including such information as may 
     be necessary to measure State compliance with Federal 
     requirements for expedited procedures, using such standards 
     and procedures as are required by the Secretary, under which 
     the State agency will determine the extent to which the 
     program is operated in compliance with this part; and
     
[[Page H15347]]

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

     SEC. 343. REQUIRED REPORTING PROCEDURES.

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

     SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

     ``SEC. 454A. AUTOMATED DATA PROCESSING.

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

     SEC. 345. TECHNICAL ASSISTANCE.

       (a) For Training of Federal and State Staff, Research and 
     Demonstration Programs, and Special Projects of Regional or 

[[Page H15348]]
     National Significance.--Section 452 (42 U.S.C. 652) is amended by 
     adding at the end the following new subsection:
       ``(j) Out of any money in the Treasury of the United States 
     not otherwise appropriated, there is hereby appropriated to 
     the Secretary for each fiscal year an amount equal to 1 
     percent of the total amount paid to the Federal Government 
     pursuant to section 457(a) during the immediately preceding 
     fiscal year (as determined on the basis of the most recent 
     reliable data available to the Secretary as of the end of the 
     3rd calendar quarter following the end of such preceding 
     fiscal year), to cover costs incurred by the Secretary for--
       ``(1) information dissemination and technical assistance to 
     States, training of State and Federal staff, staffing 
     studies, and related activities needed to improve programs 
     under this part (including technical assistance concerning 
     State automated systems required by this part); and
       ``(2) research, demonstration, and special projects of 
     regional or national significance relating to the operation 
     of State programs under this part.

     The amount appropriated under this subsection shall remain 
     available until expended.''.
       (b) Operation of Federal Parent Locator Service.--Section 
     453 (42 U.S.C. 653), as amended by section 316 of this Act, 
     is amended by adding at the end the following new subsection:
       ``(o) Recovery of Costs.--Out of any money in the Treasury 
     of the United States not otherwise appropriated, there is 
     hereby appropriated to the Secretary for each fiscal year an 
     amount equal to 2 percent of the total amount paid to the 
     Federal Government pursuant to section 457(a) during the 
     immediately preceding fiscal year (as determined on the basis 
     of the most recent reliable data available to the Secretary 
     as of the end of the 3rd calendar quarter following the end 
     of such preceding fiscal year), to cover costs incurred by 
     the Secretary for operation of the Federal Parent Locator 
     Service under this section, to the extent such costs are not 
     recovered through user fees.''.

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

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

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

       (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
     amended--
       (A) in the matter preceding clause (i)--
       (i) by striking ``with the data required under each clause 
     being separately stated for cases'' and inserting 
     ``separately stated for (1) cases'';
       (ii) by striking ``cases where the child was formerly 
     receiving'' and inserting ``or formerly received'';
       (iii) by inserting ``or 1912'' after ``471(a)(17)''; and
       (iv) by inserting ``(2)'' before ``all other'';
       (B) in each of clauses (i) and (ii), by striking ``, and 
     the total amount of such obligations'';
       (C) in clause (iii), by striking ``described in'' and all 
     that follows and inserting ``in which support was collected 
     during the fiscal year;'';
       (D) by striking clause (iv); and
       (E) by redesignating clause (v) as clause (vii), and 
     inserting after clause (iii) the following new clauses:
       ``(iv) the total amount of support collected during such 
     fiscal year and distributed as current support;
       ``(v) the total amount of support collected during such 
     fiscal year and distributed as arrearages;
       ``(vi) the total amount of support due and unpaid for all 
     fiscal years; and''.
       (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
     amended by striking ``on the use of Federal courts and''.
       (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
       (A) in subparagraph (H), by striking ``and'';
       (B) in subparagraph (I), by striking the period and 
     inserting ``; and''; and
       (C) by inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) compliance, by State, with the standards established 
     pursuant to subsections (h) and (i).''.
       (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
     striking all that follows subparagraph (J), as added by 
     paragraph (4).
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective with respect to fiscal year 1996 and 
     succeeding fiscal years.
      Subtitle F--Establishment and Modification of Support Orders

     SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
                   CHILD SUPPORT ORDERS.

       Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
     read as follows:
       ``(10) Review and adjustment of support orders upon 
     request.--Procedures under which the State shall review and 
     adjust each support order being enforced under this part upon 
     the request of either parent or the State if there is an 
     assignment. Such procedures shall provide the following:
       ``(A) In general.--
       ``(i) 3-year cycle.--Except as provided in subparagraphs 
     (B) and (C), the State shall review and, as appropriate, 
     adjust the support order every 3 years, taking into account 
     the best interests of the child involved.
       ``(ii) Methods of adjustment.--The State may elect to 
     review and, if appropriate, adjust an order pursuant to 
     clause (i) by--

       ``(I) reviewing and, if appropriate, adjusting the order in 
     accordance with the guidelines established pursuant to 
     section 467(a) if the amount of the child support award under 
     the order differs from the amount that would be awarded in 
     accordance with the guidelines; or
       ``(II) applying a cost-of-living adjustment to the order in 
     accordance with a formula developed by the State and permit 
     either party to contest the adjustment, within 30 days after 
     the date of the notice of the adjustment, by making a request 
     for review and, if appropriate, adjustment of the order in 
     accordance with the child support guidelines established 
     pursuant to section 467(a).

       ``(iii) No proof of change in circumstances necessary.--Any 
     adjustment under this subparagraph (A) shall be made without 
     a requirement for proof or showing of a change in 
     circumstances.
       ``(B) Automated method.--The State may use automated 
     methods (including automated comparisons with wage or State 
     income tax data) to identify orders eligible for review, 
     conduct the review, identify orders eligible for adjustment, 
     and apply the appropriate adjustment to the orders eligible 
     for adjustment under the threshold established by the State.
       ``(C) Request upon substantial change in circumstances.--
     The State shall, at the request of either parent subject to 
     such an order or of any State child support enforcement 
     agency, review and, if appropriate, adjust the order in 
     accordance with the guidelines established pursuant to 
     section 467(a) based upon a substantial change in the 
     circumstances of either parent.
       ``(D) Notice of right to review.--The State shall provide 
     notice not less than once every 3 years to the parents 
     subject to such an order informing them of their right to 
     request the State to review and, if appropriate, adjust the 
     order pursuant to this paragraph. The notice may be included 
     in the order.''.

     SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES 
                   RELATING TO CHILD SUPPORT.

       Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
     1681b) is amended by adding at the end the following new 
     paragraphs:
       ``(4) In response to a request by the head of a State or 
     local child support enforcement agency (or a State or local 
     government official authorized by the head of such an 
     agency), if the person making the request certifies to the 
     consumer reporting agency that--
       ``(A) the consumer report is needed for the purpose of 
     establishing an individual's capacity to make child support 
     payments or determining the appropriate level of such 
     payments;
       ``(B) the paternity of the consumer for the child to which 
     the obligation relates has been established or acknowledged 
     by the consumer in accordance with State laws under which the 
     obligation arises (if required by those laws);
       ``(C) the person has provided at least 10 days' prior 
     notice to the consumer whose report is requested, by 
     certified or registered mail to the last known address of the 
     consumer, that the report will be requested; and
       ``(D) the consumer report will be kept confidential, will 
     be used solely for a purpose described in subparagraph (A), 
     and will not be used in connection with any other civil, 
     administrative, or criminal proceeding, or for any other 
     purpose.
       ``(5) To an agency administering a State plan under section 
     454 of the Social Security Act (42 U.S.C. 654) for use to set 
     an initial or modified child support award.''.

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

       (a) In General.--Notwithstanding any other provision of 
     Federal or State law, a financial institution shall not be 
     liable under any Federal or State law to any person for 
     disclosing any financial record of an individual to a State 
     child support enforcement agency attempting to establish, 
     modify, or enforce a child support obligation of such 
     individual.
       (b) Prohibition of Disclosure of Financial Record Obtained 
     by State Child Support Enforcement Agency.--A State child 
     support enforcement agency which obtains a financial record 
     of an individual from a financial institution pursuant to 
     subsection (a) may disclose such financial record only for 
     the purpose of, and to the extent necessary in, establishing, 
     modifying, or enforcing a child support obligation of such 
     individual.
       (c) Civil Damages for Unauthorized Disclosure.--
       (1) Disclosure by state officer or employee.--If any person 
     knowingly, or by reason of negligence, discloses a financial 
     record of an individual in violation of subsection (b), such 
     individual may bring a civil action for damages against such 
     person in a district court of the United States.
       (2) No liability for good faith but erroneous 
     interpretation.--No liability shall arise under this 
     subsection with respect to any disclosure which results from 
     a good faith, but erroneous, interpretation of subsection 
     (b).
       (3) Damages.--In any action brought under paragraph (1), 
     upon a finding of liability on the part of the defendant, the 
     defendant shall be liable to the plaintiff in an amount equal 
     to the sum of--
       (A) the greater of--
       (i) $1,000 for each act of unauthorized disclosure of a 
     financial record with respect to which such defendant is 
     found liable; or
       (ii) the sum of--
     
[[Page H15349]]


       (I) the actual damages sustained by the plaintiff as a 
     result of such unauthorized disclosure; plus
       (II) in the case of a willful disclosure or a disclosure 
     which is the result of gross negligence, punitive damages; 
     plus

       (B) the costs (including attorney's fees) of the action.
       (d) Definitions.--For purposes of this section--
       (1) Financial institution.--The term ``financial 
     institution'' means--
       (A) a depository institution, as defined in section 3(c) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
       (B) an institution-affiliated party, as defined in section 
     3(u) of such Act (12 U.S.C. 1813(v));
       (C) any Federal credit union or State credit union, as 
     defined in section 101 of the Federal Credit Union Act (12 
     U.S.C. 1752), including an institution-affiliated party of 
     such a credit union, as defined in section 206(r) of such Act 
     (12 U.S.C. 1786(r)); and
       (D) any benefit association, insurance company, safe 
     deposit company, money-market mutual fund, or similar entity 
     authorized to do business in the State.
       (2) Financial record.--The term ``financial record'' has 
     the meaning given such term in section 1101 of the Right to 
     Financial Privacy Act of 1978 (12 U.S.C. 3401).
       (3) State child support enforcement agency.--The term 
     ``State child support enforcement agency'' means a State 
     agency which administers a State program for establishing and 
     enforcing child support obligations.
               Subtitle G--Enforcement of Support Orders

     SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

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

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

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

       ``(a) Consent to Support Enforcement.--Notwithstanding any 
     other provision of law (including section 207 of this Act and 
     section 5301 of title 38, United States Code), effective 
     January 1, 1975, moneys (the entitlement to which is based 
     upon remuneration for employment) due from, or payable by, 
     the United States or the District of Columbia (including any 
     agency, subdivision, or instrumentality thereof) to any 
     individual, including members of the Armed Forces of the 
     United States, shall be subject, in like manner and to the 
     same extent as if the United States or the District of 
     Columbia were a private person, to withholding in accordance 
     with State law enacted pursuant to subsections (a)(1) and (b) 
     of section 466 and regulations of the Secretary under such 
     subsections, and to any other legal process brought, by a 
     State agency administering a program under a State plan 
     approved under this part or by an individual obligee, to 
     enforce the legal obligation of the individual to provide 
     child support or alimony.
       ``(b) Consent to Requirements Applicable to Private 
     Person.--With respect to notice to withhold income pursuant 
     to subsection (a)(1) or (b) of section 466, or any other 
     order or process to enforce support obligations against an 
     individual (if the order or process contains or is 
     accompanied by sufficient data to permit prompt 
     identification of the individual and the moneys involved), 
     each governmental entity specified in subsection (a) shall be 
     subject to the same requirements as would apply if the entity 
     were a private person, except as otherwise provided in this 
     section.
       ``(c) Designation of Agent; Response to Notice or Process--
       ``(1) Designation of agent.--The head of each agency 
     subject to this section shall--
       ``(A) designate an agent or agents to receive orders and 
     accept service of process in matters relating to child 
     support or alimony; and
       ``(B) annually publish in the Federal Register the 
     designation of the agent or agents, identified by title or 
     position, mailing address, and telephone number.
       ``(2) Response to notice or process.--If an agent 
     designated pursuant to paragraph (1) of this subsection 
     receives notice pursuant to State procedures in effect 
     pursuant to subsection (a)(1) or (b) of section 466, or is 
     effectively served with any order, process, or interrogatory, 
     with respect to an individual's child support or alimony 
     payment obligations, the agent shall--
       ``(A) as soon as possible (but not later than 15 days) 
     thereafter, send written notice of the notice or service 
     (together with a copy of the notice or service) to the 
     individual at the duty station or last-known home address of 
     the individual;
       ``(B) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after receipt of a notice 
     pursuant to such State procedures, comply with all applicable 
     provisions of section 466; and
       ``(C) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after effective service 
     of any other such order, process, or interrogatory, respond 
     to the order, process, or interrogatory.
       ``(d) Priority of Claims.--If a governmental entity 
     specified in subsection (a) receives notice or is served with 
     process, as provided in this section, concerning amounts owed 
     by an individual to more than 1 person--
       ``(1) support collection under section 466(b) must be given 
     priority over any other process, as provided in section 
     466(b)(7);
       ``(2) allocation of moneys due or payable to an individual 
     among claimants under section 466(b) shall be governed by 
     section 466(b) and the regulations prescribed under such 
     section; and
       ``(3) such moneys as remain after compliance with 
     paragraphs (1) and (2) shall be available to satisfy any 
     other such processes on a first-come, first-served basis, 
     with any such process being satisfied out of such moneys as 
     remain after the satisfaction of all such processes which 
     have been previously served.
       ``(e) No Requirement to Vary Pay Cycles.--A governmental 
     entity that is affected by legal process served for the 
     enforcement of an individual's child support or alimony 
     payment obligations shall not be required to vary its normal 
     pay and disbursement cycle in order to comply with the legal 
     process.
       ``(f) Relief From Liability.--
       ``(1) Neither the United States, nor the government of the 
     District of Columbia, nor any disbursing officer shall be 
     liable with respect to any payment made from moneys due or 
     payable from the United States to any individual pursuant to 
     legal process regular on its face, if the payment is made in 
     accordance with this section and the regulations issued to 
     carry out this section.
       ``(2) No Federal employee whose duties include taking 
     actions necessary to comply with the requirements of 
     subsection (a) with regard to any individual shall be subject 
     under any law to any disciplinary action or civil or criminal 
     liability or penalty for, or on account of, any disclosure of 
     information made by the employee in connection with the 
     carrying out of such actions.
       ``(g) Regulations.--Authority to promulgate regulations for 
     the implementation of this section shall, insofar as this 
     section applies to moneys due from (or payable by)--
       ``(1) the United States (other than the legislative or 
     judicial branches of the Federal Government) or the 
     government of the District of Columbia, be vested in the 
     President (or the designee of the President);
       ``(2) the legislative branch of the Federal Government, be 
     vested jointly in the President pro tempore of the Senate and 
     the Speaker of the House of Representatives (or their 
     designees), and
       ``(3) the judicial branch of the Federal Government, be 
     vested in the Chief Justice of the United States (or the 
     designee of the Chief Justice).
       ``(h) Moneys Subject to Process.--
       ``(1) In general.--Subject to paragraph (2), moneys paid or 
     payable to an individual which are considered to be based 
     upon remuneration for employment, for purposes of this 
     section--
       ``(A) consist of--
       ``(i) compensation paid or payable for personal services of 
     the individual, whether the compensation is denominated as 
     wages, salary, commission, bonus, pay, allowances, or 
     otherwise (including severance pay, sick pay, and incentive 
     pay);
       ``(ii) periodic benefits (including a periodic benefit as 
     defined in section 228(h)(3)) or other payments--

       ``(I) under the insurance system established by title II;
       ``(II) under any other system or fund established by the 
     United States which provides for the payment of pensions, 
     retirement or retired pay, annuities, dependents' or 
     survivors' benefits, or similar amounts payable on account of 
     personal services performed by the individual or any other 
     individual;
       ``(III) as compensation for death under any Federal 
     program;
       ``(IV) under any Federal program established to provide 
     `black lung' benefits; or
       ``(V) by the Secretary of Veterans Affairs as compensation 
     for a service-connected disability paid by the Secretary to a 
     former member of the Armed Forces who is in receipt of 
     retired or retainer pay if the former member has waived a 
     portion of the retired or retainer pay in order to receive 
     such compensation; and

       ``(iii) worker's compensation benefits paid under Federal 
     or State law but
       ``(B) do not include any payment--
       ``(i) by way of reimbursement or otherwise, to defray 
     expenses incurred by the individual in carrying out duties 
     associated with the employment of the individual; or
       ``(ii) as allowances for members of the uniformed services 
     payable pursuant to chapter 7 of title 37, United States 
     Code, as prescribed by the Secretaries concerned (defined by 
     section 101(5) of such title) as necessary for the efficient 
     performance of duty.
       ``(2) Certain amounts excluded.--In determining the amount 
     of any moneys due from, or payable by, the United States to 
     any individual, there shall be excluded amounts which--
       ``(A) are owed by the individual to the United States;
       ``(B) are required by law to be, and are, deducted from the 
     remuneration or other payment involved, including Federal 
     employment taxes, and fines and forfeitures ordered by court-
     martial;
       ``(C) are properly withheld for Federal, State, or local 
     income tax purposes, if the withholding 

[[Page H15350]]
     of the amounts is authorized or required by law and if amounts withheld 
     are not greater than would be the case if the individual 
     claimed all dependents to which he was entitled (the 
     withholding of additional amounts pursuant to section 3402(i) 
     of the Internal Revenue Code of 1986 may be permitted only 
     when the individual presents evidence of a tax obligation 
     which supports the additional withholding);
       ``(D) are deducted as health insurance premiums;
       ``(E) are deducted as normal retirement contributions (not 
     including amounts deducted for supplementary coverage); or
       ``(F) are deducted as normal life insurance premiums from 
     salary or other remuneration for employment (not including 
     amounts deducted for supplementary coverage).
       ``(i) Definitions.--For purposes of this section--
       ``(1) United states.--The term `United States' includes any 
     department, agency, or instrumentality of the legislative, 
     judicial, or executive branch of the Federal Government, the 
     United States Postal Service, the Postal Rate Commission, any 
     Federal corporation created by an Act of Congress that is 
     wholly owned by the Federal Government, and the governments 
     of the territories and possessions of the United States.
       ``(2) Child support.--The term `child support', when used 
     in reference to the legal obligations of an individual to 
     provide such support, means amounts required to be paid under 
     a judgment, decree, or order, whether temporary, final, or 
     subject to modification, issued by a court or an 
     administrative agency of competent jurisdiction, for the 
     support and maintenance of a child, including a child who has 
     attained the age of majority under the law of the issuing 
     State, or a child and the parent with whom the child is 
     living, which provides for monetary support, health care, 
     arrearages or reimbursement, and which may include other 
     related costs and fees, interest and penalties, income 
     withholding, attorney's fees, and other relief.
       ``(3) Alimony.--
       ``(A) In general.--The term `alimony', when used in 
     reference to the legal obligations of an individual to 
     provide the same, means periodic payments of funds for the 
     support and maintenance of the spouse (or former spouse) of 
     the individual, and (subject to and in accordance with State 
     law) includes separate maintenance, alimony pendente lite, 
     maintenance, and spousal support, and includes attorney's 
     fees, interest, and court costs when and to the extent that 
     the same are expressly made recoverable as such pursuant to a 
     decree, order, or judgment issued in accordance with 
     applicable State law by a court of competent jurisdiction.
       ``(B) Exceptions.--Such term does not include--
       ``(i) any child support; or
       ``(ii) any payment or transfer of property or its value by 
     an individual to the spouse or a former spouse of the 
     individual in compliance with any community property 
     settlement, equitable distribution of property, or other 
     division of property between spouses or former spouses.
       ``(4) Private person.--The term `private person' means a 
     person who does not have sovereign or other special immunity 
     or privilege which causes the person not to be subject to 
     legal process.
       ``(5) Legal process.--The term `legal process' means any 
     writ, order, summons, or other similar process in the nature 
     of garnishment--
       ``(A) which is issued by--
       ``(i) a court or an administrative agency of competent 
     jurisdiction in any State, territory, or possession of the 
     United States;
       ``(ii) a court or an administrative agency of competent 
     jurisdiction in any foreign country with which the United 
     States has entered into an agreement which requires the 
     United States to honor the process; or
       ``(iii) an authorized official pursuant to an order of such 
     a court or an administrative agency of competent jurisdiction 
     or pursuant to State or local law; and
       ``(B) which is directed to, and the purpose of which is to 
     compel, a governmental entity which holds moneys which are 
     otherwise payable to an individual to make a payment from the 
     moneys to another party in order to satisfy a legal 
     obligation of the individual to provide child support or make 
     alimony payments.''.
       (b) Conforming Amendments.--
       (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
     661 and 662) are repealed.
       (2) To title 5, united states code.--Section 5520a of title 
     5, United States Code, is amended, in subsections (h)(2) and 
     (i), by striking ``sections 459, 461, and 462 of the Social 
     Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
     ``section 459 of the Social Security Act (42 U.S.C. 659)''.
       (c) Military Retired and Retainer Pay.--
       (1) Definition of court.--Section 1408(a)(1) of title 10, 
     United States Code, is amended--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding after subparagraph (C) the following: new 
     subparagraph
       ``(D) any administrative or judicial tribunal of a State 
     competent to enter orders for support or maintenance 
     (including a State agency administering a program under a 
     State plan approved under part D of title IV of the Social 
     Security Act), and, for purposes of this subparagraph, the 
     term `State' includes the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands, Guam, and 
     American Samoa.''.
       (2) Definition of court order.--Section 1408(a)(2) of such 
     title is amended--
       (A) by inserting ``or a support order, as defined in 
     section 453(p) of the Social Security Act (42 U.S.C. 
     653(p)),'' before ``which--'';
       (B) in subparagraph (B)(i), by striking ``(as defined in 
     section 462(b) of the Social Security Act (42 U.S.C. 
     662(b)))'' and inserting ``(as defined in section 459(i)(2) 
     of the Social Security Act (42 U.S.C. 662(i)(2)))''; and
       (C) in subparagraph (B)(ii), by striking ``(as defined in 
     section 462(c) of the Social Security Act (42 U.S.C. 
     662(c)))'' and inserting ``(as defined in section 459(i)(3) 
     of the Social Security Act (42 U.S.C. 662(i)(3)))''.
       (3) Public payee.--Section 1408(d) of such title is 
     amended--
       (A) in the heading, by inserting ``(or for Benefit of)'' 
     before ``Spouse or''; and
       (B) in paragraph (1), in the 1st sentence, by inserting 
     ``(or for the benefit of such spouse or former spouse to a 
     State disbursement unit established pursuant to section 454B 
     of the Social Security Act or other public payee designated 
     by a State, in accordance with part D of title IV of the 
     Social Security Act, as directed by court order, or as 
     otherwise directed in accordance with such part D)'' before 
     ``in an amount sufficient''.
       (4) Relationship to part d of title iv.--Section 1408 of 
     such title is amended by adding at the end the following new 
     subsection:
       ``(j) Relationship to Other Laws.--In any case involving an 
     order providing for payment of child support (as defined in 
     section 459(i)(2) of the Social Security Act) by a member who 
     has never been married to the other parent of the child, the 
     provisions of this section shall not apply, and the case 
     shall be subject to the provisions of section 459 of such 
     Act.''.
       (d) Effective Date.--The amendments made by this section 
     shall become effective 6 months after the date of the 
     enactment of this Act.

     SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS 
                   OF THE ARMED FORCES.

       (a) Availability of Locator Information.--
       (1) Maintenance of address information.--The Secretary of 
     Defense shall establish a centralized personnel locator 
     service that includes the address of each member of the Armed 
     Forces under the jurisdiction of the Secretary. Upon request 
     of the Secretary of Transportation, addresses for members of 
     the Coast Guard shall be included in the centralized 
     personnel locator service.
       (2) Type of address.--
       (A) Residential address.--Except as provided in 
     subparagraph (B), the address for a member of the Armed 
     Forces shown in the locator service shall be the residential 
     address of that member.
       (B) Duty address.--The address for a member of the Armed 
     Forces shown in the locator service shall be the duty address 
     of that member in the case of a member--
       (i) who is permanently assigned overseas, to a vessel, or 
     to a routinely deployable unit; or
       (ii) with respect to whom the Secretary concerned makes a 
     determination that the member's residential address should 
     not be disclosed due to national security or safety concerns.
       (3) Updating of locator information.--Within 30 days after 
     a member listed in the locator service establishes a new 
     residential address (or a new duty address, in the case of a 
     member covered by paragraph (2)(B)), the Secretary concerned 
     shall update the locator service to indicate the new address 
     of the member.
       (4) Availability of information.--The Secretary of Defense 
     shall make information regarding the address of a member of 
     the Armed Forces listed in the locator service available, on 
     request, to the Federal Parent Locator Service established 
     under section 453 of the Social Security Act.
       (b) Facilitating Granting of Leave for Attendance at 
     Hearings.--
       (1) Regulations.--The Secretary of each military 
     department, and the Secretary of Transportation with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy, shall prescribe regulations to facilitate the 
     granting of leave to a member of the Armed Forces under the 
     jurisdiction of that Secretary in a case in which--
       (A) the leave is needed for the member to attend a hearing 
     described in paragraph (2);
       (B) the member is not serving in or with a unit deployed in 
     a contingency operation (as defined in section 101 of title 
     10, United States Code); and
       (C) the exigencies of military service (as determined by 
     the Secretary concerned) do not otherwise require that such 
     leave not be granted.
       (2) Covered hearings.--Paragraph (1) applies to a hearing 
     that is conducted by a court or pursuant to an administrative 
     process established under State law, in connection with a 
     civil action--
       (A) to determine whether a member of the Armed Forces is a 
     natural parent of a child; or
       (B) to determine an obligation of a member of the Armed 
     Forces to provide child support.
       (3) Definitions.--For purposes of this subsection--
       (A) The term ``court'' has the meaning given that term in 
     section 1408(a) of title 10, United States Code.
       (B) The term ``child support'' has the meaning given such 
     term in section 459(i) of the Social Security Act (42 U.S.C. 
     659(i)).
       (c) Payment of Military Retired Pay in Compliance With 
     Child Support Orders.--
       (1) Date of certification of court order.--Section 1408 of 
     title 10, United States Code, as amended by section 362(c)(4) 
     of this Act, is amended--
       (A) by redesignating subsections (i) and (j) as subsections 
     (j) and (k), respectively; and
       (B) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Certification Date.--It is not necessary that the 
     date of a certification of the authenticity or completeness 
     of a copy of a court order for child support received by the 
     Secretary concerned for the purposes of this section be 
     recent in relation to the date of receipt by the 
     Secretary.''.
     
[[Page H15351]]

       (2) Payments consistent with assignments of rights to 
     states.--Section 1408(d)(1) of such title is amended by 
     inserting after the 1st sentence the following new sentence: 
     ``In the case of a spouse or former spouse who, pursuant to 
     section 408(a)(4) of the Social Security Act (42 U.S.C. 
     607(a)(4)), assigns to a State the rights of the spouse or 
     former spouse to receive support, the Secretary concerned may 
     make the child support payments referred to in the preceding 
     sentence to that State in amounts consistent with that 
     assignment of rights.''.
       (3) Arrearages owed by members of the uniformed services.--
     Section 1408(d) of such title is amended by adding at the end 
     the following new paragraph:
       ``(6) In the case of a court order for which effective 
     service is made on the Secretary concerned on or after the 
     date of the enactment of this paragraph and which provides 
     for payments from the disposable retired pay of a member to 
     satisfy the amount of child support set forth in the order, 
     the authority provided in paragraph (1) to make payments from 
     the disposable retired pay of a member to satisfy the amount 
     of child support set forth in a court order shall apply to 
     payment of any amount of child support arrearages set forth 
     in that order as well as to amounts of child support that 
     currently become due.''.
       (4) Payroll deductions.--The Secretary of Defense shall 
     begin payroll deductions within 30 days after receiving 
     notice of withholding, or for the 1st pay period that begins 
     after such 30-day period.

     SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

       Section 466 (42 U.S.C. 666), as amended by section 321 of 
     this Act, is amended by adding at the end the following new 
     subsection:
       ``(g) Laws Voiding Fraudulent Transfers.--In order to 
     satisfy section 454(20)(A), each State must have in effect--
       ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
       ``(B) the Uniform Fraudulent Transfer Act of 1984; or
       ``(C) another law, specifying indicia of fraud which create 
     a prima facie case that a debtor transferred income or 
     property to avoid payment to a child support creditor, which 
     the Secretary finds affords comparable rights to child 
     support creditors; and
       ``(2) procedures under which, in any case in which the 
     State knows of a transfer by a child support debtor with 
     respect to which such a prima facie case is established, the 
     State must--
       ``(A) seek to void such transfer; or
       ``(B) obtain a settlement in the best interests of the 
     child support creditor.''.

     SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD 
                   SUPPORT.

       (a) In General.--Section 466(a) of the Social Security Act 
     (42 U.S.C. 666(a)), as amended by sections 315, 317(a), and 
     323 of this Act, is amended by adding at the end the 
     following new paragraph:
       ``(15) Procedures to ensure that persons owing past-due 
     support work or have a plan for payment of such support.--
       ``(A) In general.--Procedures under which the State has the 
     authority, in any case in which an individual owes past-due 
     support with respect to a child receiving assistance under a 
     State program funded under part A, to seek a court order that 
     requires the individual to--
       ``(i) pay such support in accordance with a plan approved 
     by the court, or, at the option of the State, a plan approved 
     by the State agency administering the State program under 
     this part; or
       ``(ii) if the individual is subject to such a plan and is 
     not incapacitated, participate in such work activities (as 
     defined in section 407(d)) as the court, or, at the option of 
     the State, the State agency administering the State program 
     under this part, deems appropriate.
       ``(B) Past-due support defined.--For purposes of 
     subparagraph (A), the term `past-due support' means the 
     amount of a delinquency, determined under a court order, or 
     an order of an administrative process established under State 
     law, for support and maintenance of a child, or of a child 
     and the parent with whom the child is living.''.
       (b) Conforming amendment.--The flush paragraph at the end 
     of section 466(a) (42 U.S.C.666(a)) is amended by striking 
     ``and (7)'' and inserting ``(7), and (15)''.

     SEC. 366. DEFINITION OF SUPPORT ORDER.

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

     SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

     SEC. 368. LIENS.

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

     SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     315, 317(a), 323, and 365 of this Act, is amended by adding 
     at the end the following:
       ``(16) Authority to withhold or suspend licenses.--
     Procedures under which the State has (and uses in appropriate 
     cases) authority to withhold or suspend, or to restrict the 
     use of driver's licenses, professional and occupational 
     licenses, and recreational licenses of individuals owing 
     overdue support or failing, after receiving appropriate 
     notice, to comply with subpoenas or warrants relating to 
     paternity or child support proceedings.''.

     SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD 
                   SUPPORT.

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

     SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

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

       ``(a) Authority for Declarations.--
       ``(1) Declaration.--The Secretary of State, with the 
     concurrence of the Secretary of Health and Human Services, is 
     authorized to declare any foreign country (or a political 
     subdivision thereof) to be a foreign reciprocating country if 
     the foreign country has established, or undertakes to 
     establish, procedures for the establishment and enforcement 
     of duties of support owed to obligees who are residents of 
     the United States, and such procedures are substantially in 
     conformity with the standards prescribed under subsection 
     (b).
       ``(2) Revocation.--A declaration with respect to a foreign 
     country made pursuant to paragraph (1) may be revoked if the 
     Secretaries of State and Health and Human Services determine 
     that--
       ``(A) the procedures established by the foreign nation 
     regarding the establishment and enforcement of duties of 
     support have been so changed, or the foreign nation's 
     implementation of such procedures is so unsatisfactory, that 
     such procedures do not meet the criteria for such a 
     declaration; or
       ``(B) continued operation of the declaration is not 
     consistent with the purposes of this part.
     
[[Page H15352]]

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

     SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     315, 317(a), 323, 365, and 369 of this Act, is amended by 
     adding at the end the following new paragraph:
       ``(17) Financial institution data matches.--
       ``(A) In general.--Procedures under which the State agency 
     shall enter into agreements with financial institutions doing 
     business in the State--
       ``(i) to develop and operate, in coordination with such 
     financial institutions, a data match system, using automated 
     data exchanges to the maximum extent feasible, in which each 
     such financial institution is required to provide for each 
     calendar quarter the name, record address, social security 
     number or other taxpayer identification number, and other 
     identifying information for each noncustodial parent who 
     maintains an account at such institution and who owes past-
     due support, as identified by the State by name and social 
     security number or other taxpayer identification number; and
       ``(ii) in response to a notice of lien or levy, encumber or 
     surrender, as the case may be, assets held by such 
     institution on behalf of any noncustodial parent who is 
     subject to a child support lien pursuant to paragraph (4).
       ``(B) Reasonable fees.--The State agency may pay a 
     reasonable fee to a financial institution for conducting the 
     data match provided for in subparagraph (A)(i), not to exceed 
     the actual costs incurred by such financial institution.
       ``(C) Liability.--A financial institution shall not be 
     liable under any Federal or State law to any person--
       ``(i) for any disclosure of information to the State agency 
     under subparagraph (A)(i);
       ``(ii) for encumbering or surrendering any assets held by 
     such financial institution in response to a notice of lien or 
     levy issued by the State agency as provided for in 
     subparagraph (A)(ii); or
       ``(iii) for any other action taken in good faith to comply 
     with the requirements of subparagraph (A).
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) Financial institution.--The term `financial 
     institution' means any Federal or State commercial savings 
     bank, including savings association or cooperative bank, 
     Federal- or State-chartered credit union, benefit 
     association, insurance company, safe deposit company, money-
     market mutual fund, or any similar entity authorized to do 
     business in the State; and
       ``(ii) Account.--The term `account' means a demand deposit 
     account, checking or negotiable withdrawal order account, 
     savings account, time deposit account, or money-market mutual 
     fund account.''.

     SEC. 373. ENFORCEMENT OF ORDERS AGAINST PATERNAL OR MATERNAL 
                   GRANDPARENTS IN CASES OF MINOR PARENTS.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     315, 317(a), 323, 365, 369, and 372 of this Act, is amended 
     by adding at the end the following new paragraph:
       ``(18) Enforcement of orders against paternal or maternal 
     grandparents.--Procedures under which, at the State's option, 
     any child support order enforced under this part with respect 
     to a child of minor parents, if the custodial parents of such 
     child is receiving assistance under the State program under 
     part A, shall be enforceable, jointly and severally, against 
     the parents of the noncustodial parents of such child.''.

     SEC. 374. NONDISCHARGEABILITY IN BANKRUPTCY OF CERTAIN DEBTS 
                   FOR THE SUPPORT OF A CHILD.

       (a) Amendment to Title 11 of the United States Code.--
     Section 523(a) of title 11, United States Code, is amended--
       (1) in paragraph (16) by striking the period at the end and 
     inserting ``; or'',
       (2) by adding at the end the following:
       ``(17) to a State or municipality for assistance provided 
     by such State or municipality under a State program funded 
     under section 403 of the Social Security Act to the extent 
     that such assistance is provided for the support of a child 
     of the debtor.'', and
       (3) in paragraph (5), by inserting ``or section 408'' after 
     ``section 402(a)(26)''.
       (b) Amendment to the Social Security Act.--Section 456(b) 
     of the Social Security Act (42 U.S.C. 656(b)) is amended to 
     read as follows:
       ``(b) Nondischargeability.--A debt (as defined in section 
     101 of title 11 of the United States Code) to a State (as 
     defined in such section) or municipality (as defined in such 
     section) for assistance provided by such State or 
     municipality under a State program funded under section 403 
     is not dischargeable under section 727, 1141, 1228(a), 
     1228(b), or 1328(b) of title 11 of the United States Code to 
     the extent that such assistance is provided for the support 
     of a child of the debtor (as defined in such section).''.
       (c) Application of Amendments.--The amendments made by this 
     section shall apply only with respect to cases commenced 
     under title 11 of the United States Code after the effective 
     date of this section.
                      Subtitle H--Medical Support

     SEC. 376. CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
                   SUPPORT ORDER.

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

     ``if such judgment, decree, or order (I) is issued by a court 
     of competent jurisdiction or (II) is issued through an 
     administrative process established under State law and has 
     the force and effect of law under applicable State law.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act.
       (2) Plan amendments not required until january 1, 1996.--
     Any amendment to a plan required to be made by an amendment 
     made by this section shall not be required to be made before 
     the 1st plan year beginning on or after January 1, 1996, if--
       (A) during the period after the date before the date of the 
     enactment of this Act and before such 1st plan year, the plan 
     is operated in accordance with the requirements of the 
     amendments made by this section; and
       (B) such plan amendment applies retroactively to the period 
     after the date before the date of the enactment of this Act 
     and before such 1st plan year.

     A plan shall not be treated as failing to be operated in 
     accordance with the provisions of the plan merely because it 
     operates in accordance with this paragraph.

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

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

[[Page H15353]]
     noncustodial parent's health plan, unless the noncustodial parent 
     contests the notice.''.
     Subtitle I--Enhancing Responsibility and Opportunity for Non-
                          Residential Parents

     SEC. 381. GRANTS TO STATES FOR ACCESS AND VISITATION 
                   PROGRAMS.

       Part D of title IV (42 U.S.C. 651-669) is amended by adding 
     at the end the following:

     ``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION 
                   PROGRAMS.

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

     SEC. 391. EFFECTIVE DATES.

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

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

     SEC. 400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE 
                   AND IMMIGRATION.

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

     SEC. 401. ALIENS WHO ARE NOT QUALIFIED ALIENS INELIGIBLE FOR 
                   FEDERAL PUBLIC BENEFITS.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsection (b), an alien who is not 
     a qualified alien (as defined section 431) is not eligible 
     for any Federal public benefit (as defined in subsection 
     (c)).
       (b) Exceptions.--
       (1) Subsection (a) shall not apply with respect to the 
     following Federal public benefits:
       (A) Emergency medical services under title XIX or XXI of 
     the Social Security Act.
       (B) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (C)(i) Public health assistance for immunizations.
       (ii) Public health assistance for testing and treatment of 
     a serious communicable disease if the Secretary of Health and 
     Human Services determines that it is necessary to prevent the 
     spread of such disease.
       (D) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the Attorney General, in the Attorney 
     General's sole and unreviewable discretion after consultation 
     with appropriate Federal agencies and departments, which (i) 
     deliver in-kind services at the community level, including 
     through public or private nonprofit agencies; (ii) do not 
     condition the provision of assistance, the amount of 
     assistance provided, or the cost of assistance provided on 
     the individual recipient's income or resources; and (iii) are 
     necessary for the protection of life or safety.
       (E) Programs for housing or community development 
     assistance or financial assistance administered by the 
     Secretary of Housing and Urban Development, any program under 
     title V of the Housing Act of 1949, or any assistance under 
     section 306C of the Consolidated Farm and Rural Development 
     Act, to the extent that the alien is receiving such a benefit 
     on the date of the enactment of this Act.
       (2) Subsection (a) shall not apply to any benefit payable 
     under title II of the Social Security Act to an alien who is 
     lawfully present in the United States as determined by the 
     Attorney General, to any benefit if nonpayment of such 
     benefit would contravene an international agreement described 
     in section 233 of the Social Security Act, to any benefit if 
     nonpayment would be contrary to section 202(t) of the Social 
     Security Act, or to any benefit payable under title II of the 
     Social Security Act to which entitlement is based on an 
     application filed in or before the month in which this Act 
     becomes law.
       (c) Federal Public Benefit Defined.--
       (1) Except as provided in paragraph (2), for purposes of 
     this title the term ``Federal public benefit'' means--
       (A) any grant, contract, loan, professional license, or 
     commercial license provided by an agency of the United States 
     or by appropriated funds of the United States; and
       (B) any retirement, welfare, health, disability, public or 
     assisted housing, post-secondary education, food assistance, 
     unemployment benefit, or any other similar benefit for which 
     payments or assistance are provided to an individual, 
     household, or family eligibility unit by an agency of the 
     United States or by appropriated funds of the United States.
       (2) Such term shall not apply--
       (A) to any contract, professional license, or commercial 
     license for a nonimmigrant whose visa for entry is related to 
     such employment in the United States; or
       (B) with respect to benefits for an alien who as a work 
     authorized nonimmigrant or as an alien lawfully admitted for 
     permanent residence under the Immigration and Nationality Act 
     qualified for such benefits and for whom the United States 
     under reciprocal treaty agreements is required to pay 
     benefits, as determined by the Attorney General, after 
     consultation with the Secretary of State.

     SEC. 402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED ALIENS FOR 
                   CERTAIN FEDERAL PROGRAMS.

       (a) Limited Eligibility for Specified Federal Programs.--
       (1) In general.--Notwithstanding any other provision of law 
     and except as provided in paragraph (2), an alien who is a 
     qualified alien (as defined in section 431) is not eligible 
     for any specified Federal program (as defined in paragraph 
     (3)).
       (2) Exceptions.--
       (A) Time-limited exception for refugees and asylees.--
     Paragraph (1) shall not apply to an alien until 5 years after 
     the date--
       (i) an alien is admitted to the United States as a refugee 
     under section 207 of the Immigration and Nationality Act;
       (ii) an alien is granted asylum under section 208 of such 
     Act; or
     
[[Page H15354]]

       (iii) an alien's deportation is withheld under section 
     243(h) of such Act.
       (B) Certain permanent resident aliens.--Paragraph (1) shall 
     not apply to an alien who--
       (i) is lawfully admitted to the United States for permanent 
     residence under the Immigration and Nationality Act; and
       (ii)(I) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 436, and (II) did not receive any Federal means-
     tested public benefit (as defined in section 403(c)) during 
     any such quarter.
       (C) Veteran and active duty exception.--Paragraph (1) shall 
     not apply to an alien who is lawfully residing in any State 
     and is--
       (i) a veteran (as defined in section 101 of title 38, 
     United States Code) with a discharge characterized as an 
     honorable discharge and not on account of alienage,
       (ii) on active duty (other than active duty for training) 
     in the Armed Forces of the United States, or
       (iii) the spouse or unmarried dependent child of an 
     individual described in clause (i) or (ii).
       (D) Transition for aliens currently receiving benefits.--
     Paragraph (1) shall apply to the eligibility of an alien for 
     a program for months beginning on or after January 1, 1997, 
     if, on the date of the enactment of this Act, the alien is 
     lawfully residing in any State and is receiving benefits 
     under such program on the date of the enactment of this Act.
       (3) Specified Federal program defined.--For purposes of 
     this title, the term ``specified Federal program'' means any 
     of the following:
       (A) SSI.--The supplemental security income program under 
     title XVI of the Social Security Act.
       (B) Food stamps.--The food stamp program as defined in 
     section 3(h) of the Food Stamp Act of 1977.
       (b) Limited Eligibility for Designated Federal Programs.--
       (1) In general.--Notwithstanding any other provision of law 
     and except as provided in section 403 and paragraph (2), a 
     State is authorized to determine the eligibility of an alien 
     who is a qualified alien (as defined in section 431) for any 
     designated Federal program (as defined in paragraph (3)).
       (2) Exceptions.--Qualified aliens under this paragraph 
     shall be eligible for any designated Federal program.
       (A) Time-limited exception for refugees and asylees.--
       (i) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act until 5 years after the date of an alien's entry into the 
     United States.
       (ii) An alien who is granted asylum under section 208 of 
     such Act until 5 years after the date of such grant of 
     asylum.
       (iii) An alien whose deportation is being withheld under 
     section 243(h) of such Act until 5 years after such 
     withholding.
       (B) Certain permanent resident aliens.--An alien who--
       (i) is lawfully admitted to the United States for permanent 
     residence under the Immigration and Nationality Act; and
       (ii)(I) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 436, and (II) did not receive any Federal means-
     tested public benefit (as defined in section 403(c)) during 
     any such quarter.
       (C) Veteran and active duty exception.--An alien who is 
     lawfully residing in any State and is--
       (i) a veteran (as defined in section 101 of title 38, 
     United States Code) with a discharge characterized as an 
     honorable discharge and not on account of alienage,
       (ii) on active duty (other than active duty for training) 
     in the Armed Forces of the United States, or
       (iii) the spouse or unmarried dependent child of an 
     individual described in clause (i) or (ii).
       (D) Transition for those currently receiving benefits.--An 
     alien who on the date of the enactment of this Act is 
     lawfully residing in any State and is receiving benefits 
     under such program on the date of the enactment of this Act 
     shall continue to be eligible to receive such benefits until 
     January 1, 1997.
       (3) Designated Federal program defined.--For purposes of 
     this title, the term ``designated Federal program'' means any 
     of the following:
       (A) Temporary assistance for needy families.--The program 
     of block grants to States for temporary assistance for needy 
     families under part A of title IV of the Social Security Act.
       (B) Social services block grant.--The program of block 
     grants to States for social services under title XX of the 
     Social Security Act.
       (C) Medicaid and MediGrant.--The program of medical 
     assistance under title XIX and XXI of the Social Security 
     Act.

     SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS 
                   FOR FEDERAL MEANS-TESTED PUBLIC BENEFIT.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsection (b), an alien who is a 
     qualified alien (as defined in section 431) and who enters 
     the United States on or after the date of the enactment of 
     this Act is not eligible for any Federal means-tested public 
     benefit (as defined in subsection (c)) for a period of five 
     years beginning on the date of the alien's entry into the 
     United States with a status within the meaning of the term 
     ``qualified alien''.
       (b) Exceptions.--The limitation under subsection (a) shall 
     not apply to the following aliens:
       (1) Exception for refugees and asylees.--
       (A) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act.
       (B) An alien who is granted asylum under section 208 of 
     such Act.
       (C) An alien whose deportation is being withheld under 
     section 243(h) of such Act.
       (2) Veteran and active duty exception.--An alien who is 
     lawfully residing in any State and is--
       (A) a veteran (as defined in section 101 of title 38, 
     United States Code) with a discharge characterized as an 
     honorable discharge and not on account of alienage,
       (B) on active duty (other than active duty for training) in 
     the Armed Forces of the United States, or
       (C) the spouse or unmarried dependent child of an 
     individual described in subparagraph (A) or (B).
       (c) Federal means-tested Public Benefit Defined.--
       (1) Except as provided in paragraph (2), for purposes of 
     this title, the term ``Federal means-tested public benefit'' 
     means a public benefit (including cash, medical, housing, and 
     food assistance and social services) of the Federal 
     Government in which the eligibility of an individual, 
     household, or family eligibility unit for benefits, or the 
     amount of such benefits, or both are determined on the basis 
     of income, resources, or financial need of the individual, 
     household, or unit.
       (2) Such term does not include the following:
       (A) Emergency medical services under title XIX or XXI of 
     the Social Security Act.
       (B) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (C) Assistance or benefits under the National School Lunch 
     Act.
       (D) Assistance or benefits under the Child Nutrition Act of 
     1966.
       (E)(i) Public health assistance for immunizations.
       (ii) Public health assistance for testing and treatment of 
     a serious communicable disease if the Secretary of Health and 
     Human Services determines that it is necessary to prevent the 
     spread of such disease.
       (F) Payments for foster care and adoption assistance under 
     part B of title IV of the Social Security Act for a child who 
     would, in the absence of subsection (a), be eligible to have 
     such payments made on the child's behalf under such part, but 
     only if the foster or adoptive parent or parents of such 
     child are not described under subsection (a).
       (G) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the Attorney General, in the Attorney 
     General's sole and unreviewable discretion after consultation 
     with appropriate Federal agencies and departments, which (i) 
     deliver in-kind services at the community level, including 
     through public or private nonprofit agencies; (ii) do not 
     condition the provision of assistance, the amount of 
     assistance provided, or the cost of assistance provided on 
     the individual recipient's income or resources; and (iii) are 
     necessary for the protection of life or safety.
       (H) Programs of student assistance under titles IV, V, IX, 
     and X of the Higher Education Act of 1965.
       (I) Means-tested programs under the Elementary and 
     Secondary Education Act of 1965.

     SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

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

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

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

     ``SEC. 28. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND 
                   OTHER AGENCIES.

       ``Notwithstanding any other provision of law, the Secretary 
     shall, at least 4 times annually 

[[Page H15355]]
     and upon request of the Immigration and Naturalization Service 
     (hereafter in this section referred to as the `Service'), 
     furnish the Service with the name and address of, and other 
     identifying information on, any individual who the Secretary 
     knows is unlawfully in the United States, and shall ensure 
     that each contract for assistance entered into under section 
     6 or 8 of this Act with a public housing agency provides that 
     the public housing agency shall furnish such information at 
     such times with respect to any individual who the public 
     housing agency knows is unlawfully in the United States.''.
  Subtitle B--Eligibility for State and Local Public Benefits Programs

     SEC. 411. ALIENS WHO ARE NOT QUALIFIED ALIENS OR 
                   NONIMMIGRANTS INELIGIBLE FOR STATE AND LOCAL 
                   PUBLIC BENEFITS.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsections (b) and (d), an alien 
     who is not--
       (1) a qualified alien (as defined in section 431),
       (2) a nonimmigrant under the Immigration and Nationality 
     Act, or
       (3) an alien who is paroled into the United States under 
     section 212(d)(5) of such Act for less than one year,

     is not eligible for any State or local public benefit (as 
     defined in subsection (c)).
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following State or local public benefits:
       (1) Emergency medical services under title XIX or XXI of 
     the Social Security Act.
       (2) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (3)(A) Public health assistance for immunizations.
       (B) Public health assistance for testing and treatment of a 
     serious communicable disease if the Secretary of Health and 
     Human Services determines that it is necessary to prevent the 
     spread of such disease.
       (4) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the Attorney General, in the Attorney 
     General's sole and unreviewable discretion after consultation 
     with appropriate Federal agencies and departments, which (A) 
     deliver in-kind services at the community level, including 
     through public or private nonprofit agencies; (B) do not 
     condition the provision of assistance, the amount of 
     assistance provided, or the cost of assistance provided on 
     the individual recipient's income or resources; and (C) are 
     necessary for the protection of life or safety.
       (c) State or Local Public Benefit Defined.--
       (1) Except as provided in paragraph (2), for purposes of 
     this subtitle the term ``State or local public benefit'' 
     means--
       (A) any grant, contract, loan, professional license, or 
     commercial license provided by an agency of a State or local 
     government or by appropriated funds of a State or local 
     government; and
       (B) any retirement, welfare, health, disability, public or 
     assisted housing, post-secondary education, food assistance, 
     unemployment benefit, or any other similar benefit for which 
     payments or assistance are provided to an individual, 
     household, or family eligibility unit by an agency of a State 
     or local government or by appropriated funds of a State or 
     local government.
       (2) Such term shall not apply--
       (A) to any contract, professional license, or commercial 
     license for a nonimmigrant whose visa for entry is related to 
     such employment in the United States; or
       (B) with respect to benefits for an alien who as a work 
     authorized nonimmigrant or as an alien lawfully admitted for 
     permanent residence under the Immigration and Nationality Act 
     qualified for such benefits and for whom the United States 
     under reciprocal treaty agreements is required to pay 
     benefits, as determined by the Secretary of State, after 
     consultation with the Attorney General.
       (d) State Authority to Provide for Eligibility of Illegal 
     Aliens for State and Local Public Benefits.--A State may 
     provide that an alien who is not lawfully present in the 
     United States is eligible for any State or local public 
     benefit for which such alien would otherwise be ineligible 
     under subsection (a) only through the enactment of a State 
     law after the date of the enactment of this Act which 
     affirmatively provides for such eligibility.

     SEC. 412. STATE AUTHORITY TO LIMIT ELIGIBILITY OF QUALIFIED 
                   ALIENS FOR STATE PUBLIC BENEFITS.

       (a) In General.--Notwithstanding any other provision of law 
     and except as provided in subsection (b), a State is 
     authorized to determine the eligibility for any State public 
     benefits (as defined in subsection (c) of an alien who is a 
     qualified alien (as defined in section 431), a nonimmigrant 
     under the Immigration and Nationality Act, or an alien who is 
     paroled into the United States under section 212(d)(5) of 
     such Act for less than one year.
       (b) Exceptions.--Qualified aliens under this subsection 
     shall be eligible for any State public benefits.
       (1) Time-limited exception for refugees and asylees.--
       (A) An alien who is admitted to the United States as a 
     refugee under section 207 of the Immigration and Nationality 
     Act until 5 years after the date of an alien's entry into the 
     United States.
       (B) An alien who is granted asylum under section 208 of 
     such Act until 5 years after the date of such grant of 
     asylum.
       (C) An alien whose deportation is being withheld under 
     section 243(h) of such Act until 5 years after such 
     withholding.
       (2) Certain permanent resident aliens.--An alien who--
       (A) is lawfully admitted to the United States for permanent 
     residence under the Immigration and Nationality Act; and
       (B)(i) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 436, and (ii) did not receive any Federal means-
     tested public benefit (as defined in section 403(c)) during 
     any such quarter.
       (3) Veteran and active duty exception.--An alien who is 
     lawfully residing in any State and is--
       (A) a veteran (as defined in section 101 of title 38, 
     United States Code) with a discharge characterized as an 
     honorable discharge and not on account of alienage,
       (B) on active duty (other than active duty for training) in 
     the Armed Forces of the United States, or
       (C) the spouse or unmarried dependent child of an 
     individual described in subparagraph (A) or (B).
       (4) Transition for those currently receiving benefits.--An 
     alien who on the date of the enactment of this Act is 
     lawfully residing in any State and is receiving benefits on 
     the date of the enactment of this Act shall continue to be 
     eligible to receive such benefits until January 1, 1997.
       (c) State Public Benefits Defined.--The term ``State public 
     benefits'' means any means-tested public benefit of a State 
     or political subdivision of a State under which the State or 
     political subdivision specifies the standards for 
     eligibility, and does not include any Federal public benefit.
      Subtitle C--Attribution of Income and Affidavits of Support

     SEC. 421. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND 
                   RESOURCES TO ALIEN.

       (a) In General.--Notwithstanding any other provision of 
     law, in determining the eligibility and the amount of 
     benefits of an alien for any Federal means-tested public 
     benefits program (as defined in section 403(c)), the income 
     and resources of the alien shall be deemed to include the 
     following:
       (1) The income and resources of any person who executed an 
     affidavit of support pursuant to section 213A of the 
     Immigration and Nationality Act (as added by section 423) on 
     behalf of such alien.
       (2) The income and resources of the spouse (if any) of the 
     person.
       (b) Application.--Subsection (a) shall apply with respect 
     to an alien until such time as the alien--
       (1) achieves United States citizenship through 
     naturalization pursuant to chapter 2 of title III of the 
     Immigration and Nationality Act; or
       (2)(A) has worked 40 qualifying quarters of coverage as 
     defined under title II of the Social Security Act or can be 
     credited with such qualifying quarters as provided under 
     section 436, and (B) did not receive any Federal means-tested 
     public benefit (as defined in section 403(c)) during any such 
     quarter.
       (c) Review of Income and Resources of Alien Upon 
     Reapplication.--Whenever an alien is required to reapply for 
     benefits under any Federal means-tested public benefits 
     program, the applicable agency shall review the income and 
     resources attributed to the alien under subsection (a).
       (d) Application.--
       (1) If on the date of the enactment of this Act, a Federal 
     means-tested public benefits program attributes a sponsor's 
     income and resources to an alien in determining the alien's 
     eligibility and the amount of benefits for an alien, this 
     section shall apply to any such determination beginning on 
     the day after the date of the enactment of this Act.
       (2) If on the date of the enactment of this Act, a Federal 
     means-tested public benefits program does not attribute a 
     sponsor's income and resources to an alien in determining the 
     alien's eligibility and the amount of benefits for an alien, 
     this section shall apply to any such determination beginning 
     180 days after the date of the enactment of this Act.

     SEC. 422. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF 
                   SPONSORS INCOME AND RESOURCES TO THE ALIEN WITH 
                   RESPECT TO STATE PROGRAMS.

       (a) Optional Application to State Programs.--Except as 
     provided in subsection (b), in determining the eligibility 
     and the amount of benefits of an alien for any State public 
     benefits (as defined in section 412(c)), the State or 
     political subdivision that offers the benefits is authorized 
     to provide that the income and resources of the alien shall 
     be deemed to include--
       (1) the income and resources of any individual who executed 
     an affidavit of support pursuant to section 213A of the 
     Immigration and Nationality Act (as added by section 423) on 
     behalf of such alien, and
       (2) the income and resources of the spouse (if any) of the 
     individual.
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following State public benefits:
       (1) Emergency medical services.
       (2) Short-term, non-cash, in-kind emergency disaster 
     relief.
       (3) Programs comparable to assistance or benefits under the 
     National School Lunch Act.
       (4) Programs comparable to assistance or benefits under the 
     Child Nutrition Act of 1966.
       (5)(A) Public health assistance for immunizations.
       (B) Public health assistance for testing and treatment of a 
     serious communicable disease if the appropriate chief State 
     health official determines that it is necessary to prevent 
     the spread of such disease.
       (6) Payments for foster care and adoption assistance.
     
[[Page H15356]]

       (7) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the Attorney General of a State, after 
     consultation with appropriate agencies and departments, which 
     (A) deliver in-kind services at the community level, 
     including through public or private nonprofit agencies; (B) 
     do not condition the provision of assistance, the amount of 
     assistance provided, or the cost of assistance provided on 
     the individual recipient's income or resources; and (C) are 
     necessary for the protection of life or safety.

     SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

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


           ``requirements for sponsor's affidavit of support

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

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

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

     SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

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

     SEC. 431. DEFINITIONS.

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

     SEC. 432. REAPPLICATION FOR SSI BENEFITS.

       (a) Application and Notice.--Notwithstanding any other 
     provision of law, in the case of an individual who is 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     would terminate by reason of the application of section 
     402(a)(D), the Commissioner of Social Security shall so 
     notify the individual not later than 90 days after the date 
     of the enactment of this Act.
       (b) Reapplication.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, each individual notified pursuant 
     to subsection (a) who 

[[Page H15357]]
     desires to reapply for benefits under title XVI of the Social Security 
     Act shall reapply to the Commissioner of Social Security.
       (2) Determination of eligibility.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall determine the eligibility of each 
     individual who reapplies for benefits under paragraph (1) 
     pursuant to the procedures of such title XVI.

     SEC. 433. VERIFICATION OF ELIGIBILITY FOR FEDERAL PUBLIC 
                   BENEFITS.

       (a) In General.--Not later than 18 months after the date of 
     the enactment of this Act, the Attorney General of the United 
     States, after consultation with the Secretary of Health and 
     Human Services, shall promulgate regulations requiring 
     verification that a person applying for a Federal public 
     benefit (as defined in section 401(c)), to which the 
     limitation under section 401 applies, is a qualified alien 
     and is eligible to receive such benefit. Such regulations 
     shall, to the extent feasible, require that information 
     requested and exchanged be similar in form and manner to 
     information requested and exchanged under section 1137 of the 
     Social Security Act.
       (b) State Compliance.--Not later than 24 months after the 
     date the regulations described in subsection (a) are adopted, 
     a State that administers a program that provides a Federal 
     public benefit shall have in effect a verification system 
     that complies with the regulations.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purpose of this section.

     SEC. 434. STATUTORY CONSTRUCTION.

       (a) Limitation.--
       (1) Nothing in this title may be construed as an 
     entitlement or a determination of an individual's eligibility 
     or fulfillment of the requisite requirements for any Federal, 
     State, or local governmental program, assistance, or 
     benefits. For purposes of this title, eligibility relates 
     only to the general issue of eligibility or ineligibility on 
     the basis of alienage.
       (2) Nothing in this title may be construed as addressing 
     alien eligibility for a basic public education as determined 
     by the Supreme Court of the United States under Plyler v. Doe 
     (457 U.S. 202)(1982).
       (b) Not Applicable to Foreign Assistance.--This title does 
     not apply to any Federal, State, or local governmental 
     program, assistance, or benefits provided to an alien under 
     any program of foreign assistance as determined by the 
     Secretary of State in consultation with the Attorney General.
       (c) Severability.--If any provision of this title or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this title 
     and the application of the provisions of such to any person 
     or circumstance shall not be affected thereby.

     SEC. 435. COMMUNICATION BETWEEN STATE AND LOCAL GOVERNMENT 
                   AGENCIES AND THE IMMIGRATION AND NATURALIZATION 
                   SERVICE.

       Notwithstanding any other provision of Federal, State, or 
     local law, no State or local government entity may be 
     prohibited, or in any way restricted, from sending to or 
     receiving from the Immigration and Naturalization Service 
     information regarding the immigration status, lawful or 
     unlawful, of an alien in the United States.

     SEC. 436. QUALIFYING QUARTERS.

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

     SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

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

     SEC. 501. REDUCTIONS.

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

[[Page H15358]]
     the Secretary to meet the requirements of this section and sections 502 
     and 503.
       (f) Calculation.--In determining, under subsection (c), the 
     number of full-time equivalent positions required by a 
     Department to carry out a covered activity, a Secretary 
     referred to in subsection (b)(2), shall include the number of 
     such positions occupied by personnel carrying out program 
     functions or other functions (including budgetary, 
     legislative, administrative, planning, evaluation, and legal 
     functions) related to the activity.
       (g) General Accounting Office Report.--Not later than July 
     1, 1996, the Comptroller General of the United States shall 
     prepare and submit to the committees described in subsection 
     (b)(3), a report concerning the determinations made by each 
     Secretary under subsection (c). Such report shall contain an 
     analysis of the determinations made by each Secretary under 
     subsection (c) and a determination as to whether further 
     reductions in full-time equivalent positions are appropriate.

     SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

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

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

     SEC. 601. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC 
                   ASSISTANCE PROGRAMS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following 
     new section:

     ``SEC. 27. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC 
                   ASSISTANCE PROGRAMS.

       ``(a) In General.--If the benefits of a family are reduced 
     under a Federal, State, or local law relating to welfare or a 
     public assistance program for the failure of any member of 
     the family to perform an action required under the law or 
     program, the family may not, for the duration of the 
     reduction, receive any increased assistance under this Act as 
     the result of a decrease in the income of the family to the 
     extent that the decrease in income is the result of the 
     benefits reduction.
       ``(b) Exception.--Subsection (a) shall not apply in any 
     case in which the benefits of a family are reduced because 
     the welfare or public assistance program to which the 
     Federal, State, or local law relates limits the period during 
     which benefits may be provided under the program.''.

     SEC. 602. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC 
                   ASSISTANCE PROGRAMS.

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

     SEC. 603. EFFECTIVE DATE.

       This title and the amendment made by this title shall 
     become effective on the date of enactment of this Act.
  TITLE VII--CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER CARE AND 
                          ADOPTION ASSISTANCE
 Subtitle A--Block Grants to States for the Protection of Children and 
       Matching Payments for Foster Care and Adoption Assistance

     SEC. 701. ESTABLISHMENT OF PROGRAM.

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

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

     ``SEC. 421. PURPOSE.

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

     ``SEC. 422. ELIGIBLE STATES.

       ``(a) In General.--As used in this part, the term `eligible 
     State' means a State that has submitted to the Secretary, not 
     later than October 1, 1996, and every 3 years thereafter, a 
     plan which has been signed by the chief executive officer of 
     the State and that includes the following:
       ``(1) Outline of child protection program.--A written 
     document that outlines the activities the State intends to 
     conduct to achieve the purpose of this part, including the 
     procedures to be used for--
       ``(A) receiving and assessing reports of child abuse or 
     neglect;
       ``(B) investigating such reports;
       ``(C) with respect to families in which abuse or neglect 
     has been confirmed, providing services or referral for 
     services for families and children where the State makes a 
     determination that the child may safely remain with the 
     family;
       ``(D) protecting children by removing them from dangerous 
     settings and ensuring their placement in a safe environment;
       ``(E) providing training for individuals mandated to report 
     suspected cases of child abuse or neglect;
       ``(F) protecting children in foster care;
       ``(G) promoting timely adoptions;
       ``(H) protecting the rights of families, using adult 
     relatives as the preferred placement for children separated 
     from their parents where such relatives meet the relevant 
     State child protection standards;
       ``(I) providing services to individuals, families, or 
     communities, either directly or through referral, that are 
     aimed at preventing the occurrence of child abuse and 
     neglect; and
       ``(J) establishing and responding to citizen review panels 
     under section 426.
       ``(2) Certification of state law requiring the reporting of 
     child abuse and neglect.--A certification that the State has 
     in effect laws that require public officials and other 
     professionals to report, in good faith, actual or suspected 
     instances of child abuse or neglect.
       ``(3) Certification of procedures for screening, safety 
     assessment, and prompt investigation.--A certification that 
     the State has in effect procedures for receiving and 
     responding to reports of child abuse or neglect, including 
     the reports described in paragraph (2), and for the immediate 
     screening, safety assessment, and prompt investigation of 
     such reports.
       ``(4) Certification of state procedures for removal and 
     placement of abused or neglected children.--A certification 
     that the State has in effect procedures for the removal from 
     families and placement of abused or neglected children and of 
     any other child in the same household who may also be in 
     danger of abuse or neglect.
       ``(5) Certification of provisions for immunity from 
     prosecution.--A certification that the State has in effect 
     laws requiring immunity from prosecution under State and 
     local laws and regulations for individuals making good faith 
     reports of suspected or known instances of child abuse or 
     neglect.
       ``(6) Certification of provisions and procedures for 
     expungement of certain records.--A certification that the 
     State has in effect laws and procedures requiring the 
     facilitation of the prompt expungement of any records that 
     are accessible to the general public or are used for purposes 
     of employment or other background checks in cases determined 
     to be unsubstantiated or false.
       ``(7) Certification of provisions and procedures relating 
     to appeals.--A certification that not later then 2 years 
     after the date of the enactment of this part, the State shall 
     have laws 

[[Page H15359]]
     and procedures in effect affording individuals an opportunity to appeal 
     an official finding of abuse or neglect.
       ``(8) Certification of state procedures for developing and 
     reviewing written plans for permanent placement of removed 
     children.--A certification that the State has in effect 
     procedures for ensuring that a written plan is prepared for 
     children who have been removed from their families. Such plan 
     shall specify the goals for achieving a permanent placement 
     for the child in a timely fashion, for ensuring that the 
     written plan is reviewed every 6 months (until such placement 
     is achieved), and for ensuring that information about such 
     children is collected regularly and recorded in case records, 
     and include a description of such procedures.
       ``(9) Certification of state program to provide independent 
     living services.--A certification that the State has in 
     effect a program to provide independent living services, for 
     assistance in making the transition to self-sufficient 
     adulthood, to individuals in the child protection program of 
     the State who are 16, but who are not 20 (or, at the option 
     of the State, 22), years of age, and who do not have a family 
     to which to be returned.
       ``(10) Certification of state procedures to respond to 
     reporting of medical neglect of disabled infants.--
       ``(A) In general.--A certification that the State has in 
     place for the purpose of responding to the reporting of 
     medical neglect of infants (including instances of 
     withholding of medically indicated treatment from disabled 
     infants with life-threatening conditions), procedures or 
     programs, or both (within the State child protective services 
     system), to provide for--
       ``(i) coordination and consultation with individuals 
     designated by and within appropriate health-care facilities;
       ``(ii) prompt notification by individuals designated by and 
     within appropriate health-care facilities of cases of 
     suspected medical neglect (including instances of withholding 
     of medically indicated treatment from disabled infants with 
     life-threatening conditions); and
       ``(iii) authority, under State law, for the State child 
     protective service to pursue any legal remedies, including 
     the authority to initiate legal proceedings in a court of 
     competent jurisdiction, as may be necessary to prevent the 
     withholding of medically indicated treatment from disabled 
     infants with life-threatening conditions.
       ``(B) Withholding of medically indicated treatment.--As 
     used in subparagraph (A), the term `withholding of medically 
     indicated treatment' means the failure to respond to the 
     infant's life-threatening conditions by providing treatment 
     (including appropriate nutrition, hydration, and medication) 
     which, in the treating physician's or physicians' reasonable 
     medical judgment, will be most likely to be effective in 
     ameliorating or correcting all such conditions, except that 
     such term does not include the failure to provide treatment 
     (other than appropriate nutrition, hydration, or medication) 
     to an infant when, in the treating physician's or physicians' 
     reasonable medical judgment--
       ``(i) the infant is chronically and irreversibly comatose;
       ``(ii) the provision of such treatment would--

       ``(I) merely prolong dying;
       ``(II) not be effective in ameliorating or correcting all 
     of the infant's life-threatening conditions; or
       ``(III) otherwise be futile in terms of the survival of the 
     infant; or

       ``(iii) the provision of such treatment would be virtually 
     futile in terms of the survival of the infant and the 
     treatment itself under such circumstances would be inhumane.
       ``(11) Identification of child protection goals.--The 
     quantitative goals of the State child protection program.
       ``(12) Certification of child protection standards.--With 
     respect to fiscal years beginning on or after April 1, 1996, 
     a certification that the State--
       ``(A) has completed an inventory of all children who, 
     before the inventory, had been in foster care under the 
     responsibility of the State for 6 months or more, which 
     determined--
       ``(i) the appropriateness of, and necessity for, the foster 
     care placement;
       ``(ii) whether the child could or should be returned to the 
     parents of the child or should be freed for adoption or other 
     permanent placement; and
       ``(iii) the services necessary to facilitate the return of 
     the child or the placement of the child for adoption or legal 
     guardianship;
       ``(B) is operating, to the satisfaction of the Secretary--
       ``(i) a statewide information system from which can be 
     readily determined the status, demographic characteristics, 
     location, and goals for the placement of every child who is 
     (or, within the immediately preceding 12 months, has been) in 
     foster care;
       ``(ii) a case review system for each child receiving foster 
     care under the supervision of the State;
       ``(iii) a service program designed to help children--

       ``(I) where appropriate, return to families from which they 
     have been removed; or
       ``(II) be placed for adoption, with a legal guardian, or if 
     adoption or legal guardianship is determined not to be 
     appropriate for a child, in some other planned, permanent 
     living arrangement; and

       ``(iv) a preplacement preventive services program designed 
     to help children at risk for foster care placement remain 
     with their families; and
       ``(C)(i) has reviewed (or not later than October 1, 1997, 
     will review) State policies and administrative and judicial 
     procedures in effect for children abandoned at or shortly 
     after birth (including policies and procedures providing for 
     legal representation of such children); and
       ``(ii) is implementing (or not later than October 1, 1997, 
     will implement) such policies and procedures as the State 
     determines, on the basis of the review described in clause 
     (i), to be necessary to enable permanent decisions to be made 
     expeditiously with respect to the placement of such children.
       ``(13) Certification of reasonable efforts before placement 
     of children in foster care.--A certification that the State 
     in each case will--
       ``(A) make reasonable efforts prior to the placement of a 
     child in foster care, to prevent or eliminate the need for 
     removal of the child from the child's home, and to make it 
     possible for the child to return home; and
       ``(B) with respect to families in which abuse or neglect 
     has been confirmed, provide services or referral for services 
     for families and children where the State makes a 
     determination that the child may safely remain with the 
     family.
       ``(14) Certification of cooperative efforts.--A 
     certification by the State, where appropriate, that all steps 
     will be taken, including cooperative efforts with the State 
     agencies administering the plans approved under parts A and 
     D, to secure an assignment to the State of any rights to 
     support on behalf of each child receiving foster care 
     maintenance payments under this part.
       ``(15) Certification of confidentiality and requirements 
     for information disclosure.--
       ``(A) In general.--A certification that the State has in 
     effect and operational--
       ``(i) requirements ensuring that reports and records made 
     and maintained pursuant to the purposes of this part shall 
     only be made available to--

       ``(I) individuals who are the subject of the report;
       ``(II) Federal, State, or local government entities having 
     a need for such information in order to carry out their 
     responsibilities under law to protect children from abuse and 
     neglect;
       ``(III) child abuse citizen review panels;
       ``(IV) child fatality review panels;
       ``(V) a grand jury or court, upon a finding that 
     information in the record is necessary for the determination 
     of an issue before the court or grand jury; and
       ``(VI) other entities or classes of individuals statutorily 
     authorized by the State to receive such information pursuant 
     to a legitimate State purpose; and

       ``(ii) provisions that allow for public disclosure of the 
     findings or information about cases of child abuse or neglect 
     that have resulted in a child fatality or near fatality.
       ``(B) Limitation.--Disclosures made pursuant to clause (i) 
     or (ii) shall not include the identifying information 
     concerning the individual initiating a report or complaint 
     alleging suspected instances of child abuse or neglect.
       ``(C) Definition.--For purposes of this paragraph, the term 
     `near fatality' means an act that, as certified by a 
     physician, places the child in serious or critical condition.
       ``(b) Determinations.--The Secretary shall determine 
     whether a plan submitted pursuant to subsection (a) contains 
     the material required by subsection (a), other than the 
     material described in paragraph (10) of such subsection. The 
     Secretary may not require a State to include in such a plan 
     any material not described in subsection (a).

     ``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION AND 
                   PAYMENTS FOR FOSTER CARE AND ADOPTION 
                   ASSISTANCE.

       ``(a) Funding of Block Grants.--
       ``(1) Entitlement component.--Each eligible State shall be 
     entitled to receive from the Secretary for each fiscal year 
     specified in subsection (c)(1) a grant in an amount equal to 
     the State share of the child protection amount for the fiscal 
     year.
       ``(2) Authorization component.--
       ``(A) In general.--For each eligible State for each fiscal 
     year specified in subsection (c)(1), the Secretary shall 
     supplement the grant under paragraph (1) of this subsection 
     by an amount equal to the State share of the amount (if any) 
     appropriated pursuant to subparagraph (B) of this paragraph 
     for the fiscal year.
       ``(B) Limitation on authorization of appropriations.--For 
     grants under subparagraph (A), there are authorized to be 
     appropriated to the Secretary an amount not to exceed 
     $325,000,000 for each fiscal year specified in subsection 
     (c)(1).
       ``(b) Maintenance Payments.--
       ``(1) In general.--In addition to the grants described in 
     subsection (a), each eligible State shall be entitled to 
     receive from the Secretary for each quarter of each fiscal 
     year specified in subsection (c)(1) an amount equal to the 
     sum of--
       ``(A) an amount equal to the Federal medical assistance 
     percentage (as defined in section 1905(b) of this Act as in 
     effect on the day before the date of enactment of this part) 
     of the total amount expended during such quarter as foster 
     care maintenance payments under the child protection program 
     under this part for children in foster family homes or child-
     care institutions; plus
       ``(B) an amount equal to the Federal medical assistance 
     percentage (as defined in section 1905(b) of this Act (as so 
     in effect)) of the total amount expended during such quarter 
     as adoption assistance payments under the child protection 
     program under this part pursuant to adoption assistance 
     agreements.
       ``(2) Estimates by the secretary.--
       ``(A) In general.--The Secretary shall, prior to the 
     beginning of each quarter, estimate the amount to which a 
     State will be entitled to receive under paragraph (1) for 
     such quarter, such estimates to be based on--
       ``(i) a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter in accordance 
     with paragraph (1), and stating the amount appropriated or 
     made available by the State and its political subdivisions 
     for such expenditures in such quarter, and if 

[[Page H15360]]
     such amount is less than the State's proportionate share of the total 
     sum of such estimated expenditures, the source or sources 
     from which the difference is expected to be derived;
       ``(ii) records showing the number of children in the State 
     receiving assistance under this part; and
       ``(iii) such other information as the Secretary may find 
     necessary.
       ``(B) Payments.--The Secretary shall pay to the States the 
     amounts so estimated under subparagraph (A), reduced or 
     increased to the extent of any overpayment or underpayment 
     which the Secretary determines was made under this subsection 
     to such State for any prior quarter and with respect to which 
     adjustment has not already been made under this paragraph.
       ``(C) Pro Rata Share.-- The pro rata share to which the 
     United States is equitably entitled, as determined by the 
     Secretary, of the net amount recovered during any quarter by 
     the State or any political subdivision thereof with respect 
     to foster care and adoption assistance furnished under this 
     part shall be considered an overpayment to be adjusted under 
     this paragraph.
       ``(3) Allowance or disallowance of claim.--
       ``(A) In general.--Within 60 days after receipt of a State 
     claim for expenditures pursuant to paragraph (2)(A), the 
     Secretary shall allow, disallow, or defer such claim.
       ``(B) Notice.--Within 15 days after a decision to defer a 
     State claim, the Secretary shall notify the State of the 
     reasons for the deferral and of the additional information 
     necessary to determine the allowability of the claim.
       ``(C) Decision.--Within 90 days after receiving such 
     necessary information (in readily reviewable form), the 
     Secretary shall--
       ``(i) disallow the claim, if able to complete the review 
     and determine that the claim is not allowable; or
       ``(ii) in any other case, allow the claim, subject to 
     disallowance (as necessary)--

       ``(I) upon completion of the review, if it is determined 
     that the claim is not allowable; or
       ``(II) on the basis of findings of an audit or financial 
     management review.

       ``(c) Definitions.--As used in this section:
       ``(1) Child protection amount.--The term `child protection 
     amount' means--
       ``(A) $2,047,000,000 for fiscal year 1997;
       ``(B) $2,200,000,000 for fiscal year 1998;
       ``(C) $2,342,000,000 for fiscal year 1999;
       ``(D) $2,487,000,000 for fiscal year 2000;
       ``(E) $2,592,000,000 for fiscal year 2001; and
       ``(F) $2,766,000,000 for fiscal year 2002;
       ``(2) State share.--
       ``(A) In general.--The term `State share' means the 
     qualified child protection expenses of the State divided by 
     the sum of the qualified child protection expenses of all of 
     the States.
       ``(B) Qualified child protection expenses.--The term 
     `qualified child protection expenses' means, with respect to 
     a State the greater of--
       ``(i) the total amount of--

       ``(I) \1/3\ of the Federal grant amounts to the State under 
     the provisions of law specified in clauses (i), (ii), and 
     (iii) of subparagraph (C) for fiscal years 1992, 1993, and 
     1994; and
       ``(II) \1/3\ of the Federal share of expenditures (without 
     regard to disputed expenditures) with respect to 
     administration, training, and statewide mechanized data 
     collection and information systems under the provision of law 
     specified in subparagraph (C)(iv) as reported by the State on 
     ACF Form IV-E-12 for fiscal years 1992, 1993, and 1994; or

       ``(ii) the total amount of--

       ``(I) the Federal grant amounts to the State under the 
     provisions of law specified in clauses (i), (ii), and (iii) 
     of subparagraph (C) for fiscal year 1994; and
       ``(II) the Federal share of expenditures (without regard to 
     disputed expenditures) with respect to administration, 
     training, and statewide mechanized data collection and 
     information systems under the provision of law specified in 
     subparagraph (C)(iv) as reported by the State on ACF Form IV-
     E-12 for fiscal year 1994.

       ``(C) Provisions of law.--The provisions of law specified 
     in this subparagraph are the following (as in effect with 
     respect to each of the fiscal years referred to in 
     subparagraph (B)):
       ``(i) Section 423 of this Act.
       ``(ii) Section 434 of this Act.
       ``(iii) Section 474(a)(4) of this Act.
       ``(iv) Section 474(a)(3) of this Act.
       ``(D) Determination of information.--In determining amounts 
     for fiscal years 1992, 1993, and 1994 under subclause (I) of 
     clauses (i) and (ii) of subparagraph (B), the Secretary shall 
     use information listed as actual amounts in the Justification 
     for Estimates for Appropriation Committees of the 
     Administration for Children and Families for fiscal years 
     1994, 1995, and 1996, respectively. In determining amounts 
     for fiscal years 1992, 1993, and 1994 under subclause (II) of 
     clauses (i) and (ii) of subparagraph (B), the Secretary shall 
     use information available as of February 22, 1995.
       ``(d) Use of Grant.--
       ``(1) In general.--A State to which a grant is made under 
     this section may use the grant in any manner that the State 
     deems appropriate to accomplish the purpose of this part.
       ``(2) Timing of expenditures.--A State to which a grant is 
     made under this section for a fiscal year shall expend the 
     total amount of the grant not later than the end of the 
     immediately succeeding fiscal year.
       ``(3) Rule of interpretation.--This part shall not be 
     interpreted to prohibit short- and long-term foster care 
     facilities operated for profit from receiving funds provided 
     under this part.
       ``(e) Timing of Payments.--The Secretary shall pay each 
     eligible State the amount of the grant payable to the State 
     under this section in quarterly installments.
       ``(f) Penalties.--
       ``(1) For use of grant in violation of this part.--If an 
     audit conducted pursuant to chapter 75 of title 31, United 
     States Code, finds that an amount paid to a State under this 
     section for a fiscal year has been used in violation of this 
     part, then the Secretary shall reduce the amount of the grant 
     that would (in the absence of this paragraph) be payable to 
     the State under this section for the immediately succeeding 
     fiscal year by the amount so used, plus 5 percent of the 
     grant paid under this section to the State for such fiscal 
     year.
       ``(2) For failure to maintain effort.--
       ``(A) In general.--If an audit conducted pursuant to 
     chapter 75 of title 31, United States Code, finds that the 
     amount expended by a State (other than from amounts provided 
     by the Federal Government) during the fiscal years specified 
     in subparagraph (B), to carry out the State program funded 
     under this part is less than the applicable percentage 
     specified in such subparagraph of the total amount expended 
     by the State (other than from amounts provided by the Federal 
     Government) during fiscal year 1994 under parts B and E of 
     this title (as in effect on the day before the date of the 
     enactment of this part), then the Secretary shall reduce the 
     amount of the grant that would (in the absence of this 
     paragraph) be payable to the State under this section for the 
     immediately succeeding fiscal year by the amount of the 
     difference, plus 5 percent of the grant paid under this 
     section to the State for such fiscal year.
       ``(B) Specification of fiscal years and applicable 
     percentages.--The fiscal years and applicable percentages 
     specified in this subparagraph are as follows:
       ``(i) For fiscal years 1997 and 1998, 100 percent.
       ``(ii) For fiscal years 1999 through 2002, 75 percent.
       ``(3) For failure to submit required report.--
       ``(A) In general.--The Secretary shall reduce by 3 percent 
     the amount of the grant that would (in the absence of this 
     paragraph) be payable to a State under this section for a 
     fiscal year if the Secretary determines that the State has 
     not submitted the report required by section 427(b) for the 
     immediately preceding fiscal year, within 6 months after the 
     end of the immediately preceding fiscal year.
       ``(B) Rescission of penalty.--The Secretary shall rescind a 
     penalty imposed on a State under subparagraph (A) with 
     respect to a report for a fiscal year if the State submits 
     the report before the end of the immediately succeeding 
     fiscal year.
       ``(4) For failure to comply with sampling methods 
     requirements.--The Secretary may reduce by not more than 1 
     percent the amount of the grant that would (in the absence of 
     this paragraph) be payable to a State under this section for 
     a succeeding fiscal year if the Secretary determines that the 
     State has not complied with the Secretary's sampling methods 
     requirements under section 427(c)(2) during the prior fiscal 
     year.
       ``(5) State funds to replace reductions in grant.--A State 
     which has a penalty imposed against it under this subsection 
     for a fiscal year shall expend additional State funds in an 
     amount equal to the amount of the penalty for the purpose of 
     carrying out the State program under this part during the 
     immediately succeeding fiscal year.
       ``(6) Reasonable cause exception.--Except in the case of 
     the penalty described in paragraph (2), the Secretary may not 
     impose a penalty on a State under this subsection with 
     respect to a requirement if the Secretary determines that the 
     State has reasonable cause for failing to comply with the 
     requirement.
       ``(7) Corrective compliance plan.--
       ``(A) In general.--
       ``(i) Notification of violation.--Before imposing a penalty 
     against a State under this subsection with respect to a 
     violation of this part, the Secretary shall notify the State 
     of the violation and allow the State the opportunity to enter 
     into a corrective compliance plan in accordance with this 
     paragraph which outlines how the State will correct the 
     violation and how the State will insure continuing compliance 
     with this part.
       ``(ii) 60-day period to propose a corrective compliance 
     plan.--During the 60-day period that begins on the date the 
     State receives a notice provided under clause (i) with 
     respect to a violation, the State may submit to the Federal 
     Government a corrective compliance plan to correct the 
     violation.
       ``(iii) Consultation about modifications.--During the 60-
     day period that begins with the date the Secretary receives a 
     corrective compliance plan submitted by a State in accordance 
     with clause (ii), the Secretary may consult with the State on 
     modifications to the plan.
       ``(iv) Acceptance of plan.-- A corrective compliance plan 
     submitted by a State in accordance with clause (ii) is deemed 
     to be accepted by the Secretary if the Secretary does not 
     accept or reject the plan during the 60-day period that 
     begins on the date the plan is submitted.
       ``(B) Effect of correcting violation.--The Secretary may 
     not impose any penalty under this subsection with respect to 
     any violation covered by a State corrective compliance plan 
     accepted by the Secretary if the State corrects the violation 
     pursuant to the plan.
       ``(C) Effect of failing to correct violation.--The 
     Secretary shall assess some or all of a penalty imposed on a 
     State under this subsection with respect to a violation if 
     the State does not, in a timely manner, correct the violation 
     pursuant to a State corrective compliance plan accepted by 
     the Secretary.
       ``(8) Limitation on amount of penalty.--
       ``(A) In general.--In imposing the penalties described in 
     this subsection, the Secretary shall not reduce any quarterly 
     payment to a State by more than 25 percent.
       ``(B) Carryforward of unrecovered penalties.--To the extent 
     that subparagraph (A) 

[[Page H15361]]
     prevents the Secretary from recovering during a fiscal year the full 
     amount of all penalties imposed on a State under this 
     subsection for a prior fiscal year, the Secretary shall apply 
     any remaining amount of such penalties to the grant payable 
     to the State under section 423(a) for the immediately 
     succeeding fiscal year.
       ``(g) Treatment of Territories.--
       ``(1) In general.--A territory, as defined in section 
     1108(b)(1), shall carry out a child protection program in 
     accordance with the provisions of this part.
       ``(2) Payments.--Subject to the mandatory ceiling amounts 
     specified in section 1108, each territory, as so defined, 
     shall be entitled to receive from the Secretary for any 
     fiscal year an amount equal to the total obligations to the 
     territory under section 434 (as in effect on the day before 
     the date of the enactment of this part) for fiscal year 1995.
       ``(h) Limitation on Federal Authority.--Except as expressly 
     provided in this Act, the Secretary may not regulate the 
     conduct of States under this part or enforce any provision of 
     this part.

     ``SEC. 424. REQUIREMENTS FOR FOSTER CARE MAINTENANCE 
                   PAYMENTS.

       ``(a) In general.--Each State operating a program under 
     this part shall make foster care maintenance payments under 
     section 423(b) with respect to a child who would meet the 
     requirements of section 406(a) or of section 407 (as in 
     effect on the day before the date of the enactment of this 
     part) but for the removal of the child from the home of a 
     relative (specified in section 406(a)(as so in effect)), if--
       ``(1) the removal from the home occurred pursuant to a 
     voluntary placement agreement entered into by the child's 
     parent or legal guardian, or was the result of a judicial 
     determination to the effect that continuation therein would 
     be contrary to the welfare of such child and that reasonable 
     efforts of the type described in section 422(a)(13) have been 
     made;
       ``(2) such child's placement and care are the 
     responsibility of--
       ``(A) the State; or
       ``(B) any other public agency with whom the State has made 
     an agreement for the administration of the State program 
     under this part which is still in effect;
       ``(3) such child has been placed in a foster family home or 
     child-care institution as a result of the voluntary placement 
     agreement or judicial determination referred to in paragraph 
     (1); and
       ``(4) such child--
       ``(A) would have been eligible to receive aid under the 
     eligibility standards under the State plan approved under 
     section 402 (as in effect on the day before the date of the 
     enactment of this part and adjusted for inflation, in 
     accordance with regulations issued by the Secretary) in or 
     for the month in which such agreement was entered into or 
     court proceedings leading to the removal of such child from 
     the home were initiated; or
       ``(B) would have received such aid in or for such month if 
     application had been made therefore, or the child had been 
     living with a relative specified in section 406(a) (as so in 
     effect) within 6 months prior to the month in which such 
     agreement was entered into or such proceedings were 
     initiated, and would have received such aid in or for such 
     month if in such month such child had been living with such a 
     relative and application therefore had been made.
       ``(b) Limitation on Foster Care Payments.--Foster care 
     maintenance payments may be made under this part only on 
     behalf of a child described in subsection (a) of this section 
     who is--
       ``(1) in the foster family home of an individual, whether 
     the payments therefore are made to such individual or to a 
     public or private child-placement or child-care agency; or
       ``(2) in a child-care institution, whether the payments 
     therefore are made to such institution or to a public or 
     private child-placement or child-care agency, which payments 
     shall be limited so as to include in such payments only those 
     items which are included in the term `foster care maintenance 
     payments' (as defined in section 429(6)).
       ``(c) Voluntary Placements.--
       ``(1) Satisfaction of child protection standards.--
     Notwithstanding any other provision of this section, Federal 
     payments may be made under this part with respect to amounts 
     expended by any State as foster care maintenance payments 
     under this part, in the case of children removed from their 
     homes pursuant to voluntary placement agreements as described 
     in subsection (a), only if (at the time such amounts were 
     expended) the State has fulfilled all of the requirements of 
     section 422(a)(12).
       ``(2) Removal in excess of 180 days.--No Federal payment 
     may be made under this part with respect to amounts expended 
     by any State as foster care maintenance payments, in the case 
     of any child who was removed from such child's home pursuant 
     to a voluntary placement agreement as described in subsection 
     (a) and has remained in voluntary placement for a period in 
     excess of 180 days, unless there has been a judicial 
     determination by a court of competent jurisdiction (within 
     the first 180 days of such placement) to the effect that such 
     placement is in the best interests of the child.
       ``(3) Deemed revocation of agreements.--In any case where--
       ``(A) the placement of a minor child in foster care 
     occurred pursuant to a voluntary placement agreement entered 
     into by the parents or guardians of such child as provided in 
     subsection (a); and
       ``(B) such parents or guardians request (in such manner and 
     form as the Secretary may prescribe) that the child be 
     returned to their home or to the home of a relative,

     the voluntary placement agreement shall be deemed to be 
     revoked unless the State opposes such request and obtains a 
     judicial determination, by a court of competent jurisdiction, 
     that the return of the child to such home would be contrary 
     to the child's best interests.

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

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

[[Page H15362]]
     this part or medical assistance under title XIX or XXI; and
       ``(B) that, except where it would be against the best 
     interests of the child because of such factors as the 
     existence of significant emotional ties with prospective 
     adoptive parents while in the care of such parents as a 
     foster child, a reasonable, but unsuccessful, effort has been 
     made to place the child with appropriate adoptive parents 
     without providing adoption assistance under this section or 
     medical assistance under title XIX or XXI.

     ``SEC. 426. CITIZEN REVIEW PANELS.

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

     ``SEC. 427. DATA COLLECTION AND REPORTING.

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

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

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

     ``SEC. 429. DEFINITIONS.

       ``For purposes of this part, the following definitions 
     shall apply:
       ``(1) Administrative review.--The term `administrative 
     review' means a review open to the participation of the 
     parents of the child, conducted by a panel of appropriate 
     persons at least one of whom is not responsible for the case 
     management of, or the delivery of services to, either the 
     child or the parents who are the subject of the review.
       ``(2) Adoption assistance agreement.--The term `adoption 
     assistance agreement' means a written agreement, binding on 
     the parties to the agreement, between the State, other 
     relevant agencies, and the prospective adoptive parents of a 
     minor child which at a minimum--
       ``(A) specifies the nature and amount of any payments, 
     services, and assistance to be provided under such agreement; 
     and
       ``(B) stipulates that the agreement shall remain in effect 
     regardless of the State of which the adoptive parents are 
     residents at any given time.

     The agreement shall contain provisions for the protection 
     (under an interstate compact approved by the Secretary or 
     otherwise) of the interests of the child in cases where the 
     adoptive parents and child move to another State while the 
     agreement is effective.
       ``(3) Case plan.--The term `case plan' means a written 
     document which includes at least the following:
       ``(A) A description of the type of home or institution in 
     which a child is to be placed, including a discussion of the 
     appropriateness of the placement and how the agency which is 
     responsible for the child plans to carry out the voluntary 
     placement agreement entered into or judicial determination 
     made with respect to the child in accordance with section 
     424(a)(1).
       ``(B) A plan for assuring that the child receives proper 
     care and that services are provided to the parents, child, 
     and foster parents in order to improve the conditions in the 
     parents' home, facilitate return of the child to his or her 
     own home or the permanent placement of the child, and address 
     the needs of the child while in foster care, including a 
     discussion of the appropriateness of the services that have 
     been provided to the child under the plan.
       ``(C) To the extent available and accessible, the health 
     and education records of the child, including--
       ``(i) the names and addresses of the child's health and 
     educational providers;
       ``(ii) the child's grade level performance;
       ``(iii) the child's school record;
       ``(iv) assurances that the child's placement in foster care 
     takes into account proximity to the school in which the child 
     is enrolled at the time of placement;
     
[[Page H15363]]

       ``(v) a record of the child's immunizations;
       ``(vi) the child's known medical problems;
       ``(vii) the child's medications; and
       ``(viii) any other relevant health and education 
     information concerning the child determined to be appropriate 
     by the State.

     Where appropriate, for a child age 16 or over, the case plan 
     must also include a written description of the programs and 
     services which will help such child prepare for the 
     transition from foster care to independent living.
       ``(4) Case review system.--The term `case review system' 
     means a procedure for assuring that--
       ``(A) each child has a case plan designed to achieve 
     placement in the least restrictive (most family like) and 
     most appropriate setting available and in close proximity to 
     the parents' home, consistent with the best interest and 
     special needs of the child, which--
       ``(i) if the child has been placed in a foster family home 
     or child-care institution a substantial distance from the 
     home of the parents of the child, or in a State different 
     from the State in which such home is located, sets forth the 
     reasons why such placement is in the best interests of the 
     child; and
       ``(ii) if the child has been placed in foster care outside 
     the State in which the home of the parents of the child is 
     located, requires that, periodically, but not less frequently 
     than every 12 months, a caseworker on the staff of the State 
     in which the home of the parents of the child is located, or 
     of the State in which the child has been placed, visit such 
     child in such home or institution and submit a report on such 
     visit to the State in which the home of the parents of the 
     child is located;
       ``(B) the status of each child is reviewed periodically but 
     no less frequently than once every six months by either a 
     court or by administrative review (as defined in paragraph 
     (1)) in order to determine the continuing necessity for and 
     appropriateness of the placement, the extent of compliance 
     with the case plan, and the extent of progress which has been 
     made toward alleviating or mitigating the causes 
     necessitating placement in foster care, and to project a 
     likely date by which the child may be returned to the home or 
     placed for adoption or legal guardianship;
       ``(C) with respect to each such child, procedural 
     safeguards will be applied, among other things, to assure 
     each child in foster care under the supervision of the State 
     of a dispositional hearing to be held, in a family or 
     juvenile court or another court (including a tribal court) of 
     competent jurisdiction, or by an administrative body 
     appointed or approved by the court, no later than 18 months 
     after the original placement (and not less frequently than 
     every 12 months thereafter during the continuation of foster 
     care), which hearing shall determine the future status of the 
     child (including whether the child should be returned to the 
     parent, should be continued in foster care for a specified 
     period, should be placed for adoption, or should (because of 
     the child's special needs or circumstances) be continued in 
     foster care on a permanent or long-term basis) and, in the 
     case of a child described in subparagraph (A)(ii), whether 
     the out-of-State placement continues to be appropriate and in 
     the best interests of the child, and, in the case of a child 
     who has attained age 16, the services needed to assist the 
     child to make the transition from foster care to independent 
     living; and procedural safeguards shall also be applied with 
     respect to parental rights pertaining to the removal of the 
     child from the home of his parents, to a change in the 
     child's placement, and to any determination affecting 
     visitation privileges of parents; and
       ``(D) a child's health and education record (as described 
     in paragraph (3)(C)) is reviewed and updated, and supplied to 
     the foster parent or foster care provider with whom the child 
     is placed, at the time of each placement of the child in 
     foster care.
       ``(5) Child-care institution.--The term `child-care 
     institution' means a private child-care institution, or a 
     public child-care institution which accommodates no more than 
     25 children, which is licensed by the State in which it is 
     situated or has been approved, by the agency of such State 
     responsible for licensing or approval of institutions of this 
     type, as meeting the standards established for such 
     licensing, but the term shall not include detention 
     facilities, forestry camps, training schools, or any other 
     facility operated primarily for the detention of children who 
     are determined to be delinquent.
       ``(6) Foster care maintenance payments.--
       ``(A) In general.--The term `foster care maintenance 
     payments' means payments to cover the cost of (and the cost 
     of providing) food, clothing, shelter, daily supervision, 
     school supplies, a child's personal incidentals, liability 
     insurance with respect to a child, and reasonable travel to 
     the child's home for visitation. In the case of institutional 
     care, such term shall include the reasonable costs of 
     administration and operation of such institution as are 
     necessarily required to provide the items described in the 
     preceding sentence.
       ``(B) Special rule.--In cases where--
       ``(i) a child placed in a foster family home or child-care 
     institution is the parent of a son or daughter who is in the 
     same home or institution; and
       ``(ii) payments described in subparagraph (A) are being 
     made under this part with respect to such child,
     the foster care maintenance payments made with respect to 
     such child as otherwise determined under subparagraph (A) 
     shall also include such amounts as may be necessary to cover 
     the cost of the items described in that subparagraph with 
     respect to such son or daughter.
       ``(7) Foster family home.--The term `foster family home' 
     means a foster family home for children which is licensed by 
     the State in which it is situated or has been approved, by 
     the agency of such State having responsibility for licensing 
     homes of this type, as meeting the standards established for 
     such licensing.
       ``(8) State.--The term `State' means the 50 States and the 
     District of Columbia.
       ``(9) Voluntary placement.--The term `voluntary placement' 
     means an out-of-home placement of a minor, by or with 
     participation of the State, after the parents or guardians of 
     the minor have requested the assistance of the State and 
     signed a voluntary placement agreement.
       ``(10) Voluntary placement agreement.--The term `voluntary 
     placement agreement' means a written agreement, binding on 
     the parties to the agreement, between the State, any other 
     agency acting on its behalf, and the parents or guardians of 
     a minor child which specifies, at a minimum, the legal status 
     of the child and the rights and obligations of the parents or 
     guardians, the child, and the agency while the child is in 
     placement.''.

     SEC. 702. CONFORMING AMENDMENTS.

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

     SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

       (a) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     subtitle and the amendments made by this subtitle shall take 
     effect on October 1, 1996.
       (2) Exception.--Section 428 of part B of title IV of the 
     Social Security Act, as added by section 701, and section 
     702(a) shall take effect on the date of the enactment of this 
     subtitle.
       (3) Temporary redesignation of section 428.--During the 
     period beginning on the date of the enactment of this 
     subtitle and ending on October 1, 1996, section 428 of part B 
     of title IV of the Social Security Act, as added by section 
     701, shall be redesignated as section 428A.
       (b) Transition Rules.--
       (1) Claims, actions, and proceedings.--The amendments made 
     by this subtitle shall not apply with respect to--
       (A) powers, duties, functions, rights, claims, penalties, 
     or obligations applicable to aid, assistance, or services 
     provided before the effective date of this subtitle under the 
     provisions amended; and
       (B) administrative actions and proceedings commenced before 
     such date, or authorized before such date to be commenced, 
     under such provisions.
       (2) Closing out account for those programs terminated or 
     substantially modified by this subtitle.--In closing out 
     accounts, Federal and State officials may use scientifically 
     acceptable statistical sampling techniques. Claims made under 
     programs which are repealed or substantially amended in this 
     subtitle and 

[[Page H15364]]
     which involve State expenditures in cases where assistance or services 
     were provided during a prior fiscal year, shall be treated as 
     expenditures during fiscal year 1995 for purposes of 
     reimbursement even if payment was made by a State on or after 
     October 1, 1995. States shall complete the filing of all 
     claims no later than September 30, 1997. Federal department 
     heads shall--
       (A) use the single audit procedure to review and resolve 
     any claims in connection with the close out of programs; and
       (B) reimburse States for any payments made for assistance 
     or services provided during a prior fiscal year from funds 
     for fiscal year 1995, rather than the funds authorized by 
     this subtitle.

     SEC. 704. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF 
                   CHILDREN.

       It is the sense of the Congress that--
       (1) too many children who wish to be adopted are spending 
     inordinate amounts of time in foster care;
       (2) there is an urgent need for States to increase the 
     number of waiting children being adopted in a timely and 
     lawful manner;
       (3) studies have shown that States spend an excess of 
     $15,000 each year on each special needs child in foster care, 
     and would save significant amounts of money if they offered 
     incentives to families to adopt special needs children;
       (4) States should allocate sufficient funds under this 
     title for adoption assistance and medical assistance to 
     encourage more families to adopt children who otherwise would 
     languish in the foster care system for a period that many 
     experts consider detrimental to their development;
       (5) States should offer incentives for families that adopt 
     special needs children to make adoption more affordable for 
     middle-class families;
       (6) when it is necessary for a State to remove a child from 
     the home of the child's biological parents, the State should 
     strive--
       (A) to provide the child with a single foster care 
     placement and a single coordinated case team; and
       (B) to conclude an adoption of the child, when adoption is 
     the goal of the child and the State, within one year of the 
     child's placement in foster care; and
       (7) States should participate in local, regional, or 
     national programs to enable maximum visibility of waiting 
     children to potential parents. Such programs should include a 
     nationwide, interactive computer network to disseminate 
     information on children eligible for adoption to help match 
     them with families around the country.
           Subtitle B--Child and Family Services Block Grant

     SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

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

     ``SEC. 1. SHORT TITLE.

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

     ``SEC. 2. FINDINGS.

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

     ``SEC. 3. PURPOSES.

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

     ``SEC. 4. DEFINITIONS.

       ``As used in this Act:
       ``(1) Child.--The term `child' means a person who has not 
     attained the lesser of--
       ``(A) the age of 18; or
       ``(B) except in the case of sexual abuse, the age specified 
     by the child protection law of the State in which the child 
     resides;
       ``(2) Child abuse and neglect.--The term `child abuse and 
     neglect' means, at a minimum, any recent act or failure to 
     act on the part of a parent or caretaker, which results in 
     death, serious physical or emotional harm, sexual abuse or 
     exploitation, or an act or failure to act which presents an 
     imminent risk of serious harm.
       ``(3) Family resource and support programs.--The term 
     `family resource and support program' means a community-
     based, prevention-focused entity that--
       ``(A) provides, through direct service, the core services 
     required under this Act, including--
       ``(i) parent education, support and leadership services, 
     together with services characterized by relationships between 
     parents and professionals that are based on equality and 
     respect, and designed to assist parents in acquiring 
     parenting skills, learning about child development, and 
     responding appropriately to the behavior of their children;
       ``(ii) services to facilitate the ability of parents to 
     serve as resources to one another (such as through mutual 
     support and parent self-help groups);
       ``(iii) early developmental screening of children to assess 
     any needs of children, and to identify types of support that 
     may be provided;
       ``(iv) outreach services provided through voluntary home 
     visits and other methods to assist parents in becoming aware 
     of and able to participate in family resources and support 
     program activities;
       ``(v) community and social services to assist families in 
     obtaining community resources; and
       ``(vi) follow-up services;
       ``(B) provides, or arranges for the provision of, other 
     core services through contracts or agreements with other 
     local agencies; and
       ``(C) provides access to optional services, directly or by 
     contract, purchase of service, or interagency agreement, 
     including--
       ``(i) child care, early childhood development and early 
     intervention services;
       ``(ii) self-sufficiency and life management skills 
     training;
       ``(iii) education services, such as scholastic tutoring, 
     literacy training, and General Educational Degree services;
       ``(iv) job readiness skills;
       ``(v) child abuse and neglect prevention activities;
       ``(vi) services that families with children with 
     disabilities or special needs may require;
       ``(vii) community and social service referral;
       ``(viii) peer counseling;
       ``(ix) referral for substance abuse counseling and 
     treatment; and
       ``(x) help line services.
       ``(4) Indian tribe and tribal organization.--The terms 
     `Indian tribe' and `tribal organization' shall have the same 
     meanings given such terms in subsections (e) and (l), 
     respectively, of section 4 of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b(e) and (l)).
       ``(5) Respite services.--The term `respite services' means 
     short term care services provided 

[[Page H15365]]
     in the temporary absence of the regular caregiver (parent, other 
     relative, foster parent, adoptive parent, or guardian) to 
     children who--
       ``(A) are in danger of abuse or neglect;
       ``(B) have experienced abuse or neglect; or
       ``(C) have disabilities, chronic, or terminal illnesses.

     Such services shall be provided within or outside the home of 
     the child, be short-term care (ranging from a few hours to a 
     few weeks of time, per year), and be intended to enable the 
     family to stay together and to keep the child living in the 
     home and community of the child.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of Health and Human Services.
       ``(7) Sexual abuse.--The term `sexual abuse' includes--
       ``(A) the employment, use, persuasion, inducement, 
     enticement, or coercion of any child to engage in, or assist 
     any other person to engage in, any sexually explicit conduct 
     or simulation of such conduct for the purpose of producing a 
     visual depiction of such conduct; or
       ``(B) the rape, molestation, prostitution, or other form of 
     sexual exploitation of children, or incest with children;
       ``(8) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and the Trust 
     Territory of the Pacific Islands.
       ``(9) Withholding of medically indicated treatment.--The 
     term `withholding of medically indicated treatment' means the 
     failure to respond to the infant's life-threatening 
     conditions by providing treatment (including appropriate 
     nutrition, hydration, and medication) which, in the treating 
     physician's or physicians' reasonable medical judgment, will 
     be most likely to be effective in ameliorating or correcting 
     all such conditions, except that the term does not include 
     the failure to provide treatment (other than appropriate 
     nutrition, hydration, or medication) to an infant when, in 
     the treating physician's or physicians' reasonable medical 
     judgment--
       ``(A) the infant is chronically and irreversibly comatose;
       ``(B) the provision of such treatment would--
       ``(i) merely prolong dying;
       ``(ii) not be effective in ameliorating or correcting all 
     of the infant's life-threatening conditions; or
       ``(iii) otherwise be futile in terms of the survival of the 
     infant; or
       ``(C) the provision of such treatment would be virtually 
     futile in terms of the survival of the infant and the 
     treatment itself under such circumstances would be inhumane.
                     ``TITLE I--GENERAL BLOCK GRANT

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

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

     ``SEC. 102. ELIGIBLE STATES.

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

       ``(I) where appropriate, return to families from which they 
     have been removed; or
       ``(II) be placed for adoption, with a legal guardian, or if 
     adoption or legal guardianship is determined not to be 
     appropriate for a child, in some other planned, permanent 
     living arrangement; and

       ``(iv) a preplacement preventive services program designed 
     to help children at risk for foster care placement remain 
     with their families; and
       ``(C)(i) has reviewed (or not later than October 1, 1997, 
     will review) State policies and administrative and judicial 
     procedures in effect for children abandoned at or shortly 
     after birth (including policies and procedures providing for 
     legal representation of such children); and
       ``(ii) is implementing (or not later than October 1, 1997, 
     will implement) such policies and procedures as the State 
     determines, on the basis of the review described in clause 
     (i), to be necessary to enable permanent decisions to be made 


[[Page H15366]]
     expeditiously with respect to the placement of such children.
       ``(13) Certification of reasonable efforts before placement 
     of children in foster care.--A certification that the State 
     in each case will--
       ``(A) make reasonable efforts prior to the placement of a 
     child in foster care, to prevent or eliminate the need for 
     removal of the child from the child's home, and to make it 
     possible for the child to return home; and
       ``(B) with respect to families in which abuse or neglect 
     has been confirmed, provide services or referral for services 
     for families and children where the State makes a 
     determination that the child may safely remain with the 
     family.
       ``(14) Certification of information disclosure 
     provisions.--A certification that the State has in effect and 
     operational--
       ``(A) requirements for the prompt disclosure of all 
     relevant information to any Federal, State, or local 
     government entity, citizens review panel, child fatality 
     review panel, or any agent of such government entity 
     determined by the State to have a need for such information 
     in order to carry out its responsibilities under law to 
     protect children from abuse or neglect; and
       ``(B) provisions that allow for the public disclosure of 
     the findings of information about a case of child abuse or 
     neglect which has resulted in a child fatality or near-
     fatality, except that the public disclosure of such 
     information shall be made in a manner that protects the 
     privacy rights of individuals involved in the case, unless 
     such individuals have waived such rights or criminal court 
     proceedings have been initiated.
       ``(b) Determinations.--The Secretary shall determine 
     whether a plan submitted pursuant to subsection (a) contains 
     the material required by subsection (a), other than the 
     material described in paragraph (10) of such subsection. The 
     Secretary may not require a State to include in such a plan 
     any material not described in subsection (a).

     ``SEC. 103. DATA COLLECTION AND REPORTING.

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

     ``SEC. 201. RESEARCH GRANTS.

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

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

       ``(a) Establishment.--The Secretary shall, through the 
     Department of Health and Human Services, or by one or more 
     contracts of not less than 3 years duration provided through 
     a competition, establish a national clearinghouse for 
     information relating to child abuse.
       ``(b) Functions.--The Secretary shall, through the 
     clearinghouse established by subsection (a)--
     
[[Page H15367]]

       ``(1) maintain, coordinate, and disseminate information on 
     all programs, including private programs, that show promise 
     of success with respect to the prevention, assessment, 
     identification, and treatment of child abuse and neglect;
       ``(2) maintain and disseminate information relating to--
       ``(A) the incidence of cases of child abuse and neglect in 
     the United States;
       ``(B) the incidence of such cases in populations determined 
     by the Secretary under section 105(a)(1) of the Child Abuse 
     Prevention, Adoption, and Family Services Act of 1988 (as 
     such section was in effect on the day before the date of 
     enactment of this Act); and
       ``(C) the incidence of any such cases related to alcohol or 
     drug abuse;
       ``(3) disseminate information related to data collected and 
     reported by States pursuant to section 103;
       ``(4) compile, analyze, and publish a summary of the 
     research conducted under section 201; and
       ``(5) solicit public comment on the components of such 
     clearinghouse.

     ``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

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

     ``SEC. 204. TECHNICAL ASSISTANCE.

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

     ``SEC. 205. TRAINING RESOURCES.

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

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

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

     ``SEC. 207. PEER REVIEW FOR GRANTS.

       ``(a) Establishment of Peer Review Process.--
       ``(1) In general.--The Secretary shall, in consultation 
     with experts in the field and other Federal agencies, 
     establish a formal, rigorous, and meritorious peer review 
     process for purposes of evaluating and reviewing applications 
     for grants under this title and determining the relative 
     merits of the projects for which such assistance is 
     requested. The purpose of this process is to enhance the 
     quality and usefulness of research in the field of child 
     abuse and neglect.
       ``(2) Requirements for members.--In establishing the 
     process required by paragraph (1), the Secretary shall 
     appoint to the peer review panels only members who are 
     experts in the field of child abuse and neglect or related 
     disciplines, with appropriate expertise in the application to 
     be reviewed, and who are not individuals who are officers or 
     employees of the Administration for Children and Families. 
     The panels shall meet as often as is necessary to facilitate 
     the expeditious review of applications for grants and 

[[Page H15368]]
     contracts under this title, but may not meet less than once a year. The 
     Secretary shall ensure that the peer review panel utilizes 
     scientifically valid review criteria and scoring guidelines 
     for review committees.
       ``(b) Review of Applications for Assistance.--Each peer 
     review panel established under subsection (a)(1) that reviews 
     any application for a grant shall--
       ``(1) determine and evaluate the merit of each project 
     described in such application;
       ``(2) rank such application with respect to all other 
     applications it reviews in the same priority area for the 
     fiscal year involved, according to the relative merit of all 
     of the projects that are described in such application and 
     for which financial assistance is requested; and
       ``(3) make recommendations to the Secretary concerning 
     whether the application for the project shall be approved.

     The Secretary shall award grants under this title on the 
     basis of competitive review.
       ``(c) Notice of Approval.--
       ``(1) In general.--The Secretary shall provide grants under 
     this title from among the projects which the peer review 
     panels established under subsection (a)(1) have determined to 
     have merit.
       ``(2) Requirement of explanation.--In the instance in which 
     the Secretary approves an application for a program under 
     this title without having approved all applications ranked 
     above such application, the Secretary shall append to the 
     approved application a detailed explanation of the reasons 
     relied on for approving the application and for failing to 
     approve each pending application that is superior in merit.

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

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

     ``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

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

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

       ``(a) Grants to States.--The Secretary, in consultation 
     with the Attorney General, is authorized to make grants to 
     the States for the purpose of assisting States in developing, 
     establishing, and operating programs designed to improve--
       ``(1) the handling of child abuse and neglect cases, 
     particularly cases of child sexual abuse and exploitation, in 
     a manner which limits additional trauma to the child victim;
       ``(2) the handling of cases of suspected child abuse or 
     neglect related fatalities; and
       ``(3) the investigation and prosecution of cases of child 
     abuse and neglect, particularly child sexual abuse and 
     exploitation.
       ``(b) Eligibility Requirements.--In order for a State to 
     qualify for assistance under this section, such State shall--
       ``(1) be an eligible State under section 102;
       ``(2) establish a task force as provided in subsection (c);
       ``(3) fulfill the requirements of subsection (d);
       ``(4) submit annually an application to the Secretary at 
     such time and containing such information and assurances as 
     the Secretary considers necessary, including an assurance 
     that the State will--
       ``(A) make such reports to the Secretary as may reasonably 
     be required; and
       ``(B) maintain and provide access to records relating to 
     activities under subsection (a); and
       ``(5) submit annually to the Secretary a report on the 
     manner in which assistance received under this program was 
     expended throughout the State, with particular attention 
     focused on the areas described in paragraphs (1) through (3) 
     of subsection (a).
       ``(c) State Task Forces.--
       ``(1) General rule.--Except as provided in paragraph (2), a 
     State requesting assistance under this section shall 
     establish or designate, and maintain, a State 
     multidisciplinary task force on children's justice (hereafter 
     in this section referred to as `State task force') composed 
     of professionals with knowledge and experience relating to 
     the criminal justice system and issues of child physical 
     abuse, child neglect, child sexual abuse and exploitation, 
     and child maltreatment related fatalities. The State task 
     force shall include--
       ``(A) individuals representing the law enforcement 
     community;
       ``(B) judges and attorneys involved in both civil and 
     criminal court proceedings related to child abuse and neglect 
     (including individuals involved with the defense as well as 
     the prosecution of such cases);
       ``(C) child advocates, including both attorneys for 
     children and, where such programs are in operation, court 
     appointed special advocates;
       ``(D) health and mental health professionals;
       ``(E) individuals representing child protective service 
     agencies;
       ``(F) individuals experienced in working with children with 
     disabilities;
       ``(G) parents; and
       ``(H) representatives of parents' groups.
       ``(2) Existing task force.--As determined by the Secretary, 
     a State commission or task force established after January 1, 
     1983, with substantially comparable membership and functions, 
     may be considered the State task force for purposes of this 
     subsection.
       ``(d) State Task Force Study.--Before a State receives 
     assistance under this section, and at 3 year intervals 
     thereafter, the State task force shall comprehensively--
       ``(1) review and evaluate State investigative, 
     administrative and both civil and criminal judicial handling 
     of cases of child abuse and neglect, particularly child 
     sexual abuse and exploitation, as well as cases involving 
     suspected child maltreatment related fatalities and cases 
     involving a potential combination of jurisdictions, such as 
     interstate, Federal-State, and State-Tribal; and
       ``(2) make policy and training recommendations in each of 
     the categories described in subsection (e).

     The task force may make such other comments and 
     recommendations as are considered relevant and useful.
       ``(e) Adoption of State Task Force Recommendations.--
       ``(1) General rule.--Subject to the provisions of paragraph 
     (2), before a State receives assistance under this section, a 
     State shall adopt recommendations of the State task force in 
     each of the following categories--
       ``(A) investigative, administrative, and judicial handling 
     of cases of child abuse and neglect, particularly child 
     sexual abuse and exploitation, as well as cases involving 
     suspected child maltreatment related fatalities and cases 
     involving a potential combination of jurisdictions, such as 
     interstate, Federal-State, and State-Tribal, in a manner 
     which reduces the additional trauma to the child victim and 
     the victim's family and which also ensures procedural 
     fairness to the accused;
       ``(B) experimental, model and demonstration programs for 
     testing innovative approaches and techniques which may 
     improve the prompt and successful resolution of civil and 
     criminal court proceedings or enhance the effectiveness of 
     judicial and administrative action in child abuse and neglect 
     cases, particularly child sexual abuse and exploitation 
     cases, including the enhancement of performance of court-
     appointed attorneys and guardians ad litem for children; and
       ``(C) reform of State laws, ordinances, regulations, 
     protocols and procedures to provide comprehensive protection 
     for children from abuse, particularly child sexual abuse and 
     exploitation, while ensuring fairness to all affected 
     persons.
       ``(2) Exemption.--As determined by the Secretary, a State 
     shall be considered to be in fulfillment of the requirements 
     of this subsection if--
       ``(A) the State adopts an alternative to the 
     recommendations of the State task force, which carries out 
     the purpose of this section, in each of the categories under 
     paragraph (1) for which the State task force's 
     recommendations are not adopted; or
       ``(B) the State is making substantial progress toward 
     adopting recommendations of the State task force or a 
     comparable alternative to such recommendations.
       ``(f) Funds Available.--For grants under this section, the 
     Secretary shall use the amount authorized by section 1404A of 
     the Victims of Crime Act of 1984.

     ``SEC. 303. TRANSITIONAL PROVISION.

       ``A State or other entity that has a grant, contract, or 
     cooperative agreement in effect, on the date of enactment of 
     this Act, under the Family Resource and Support Program, the 
     Community-

[[Page H15369]]
     Based Family Resource Program, the Family Support Center Program, the 
     Emergency Child Abuse Prevention Grant Program, or the 
     Temporary Child Care for Children with Disabilities and 
     Crisis Nurseries Programs shall continue to receive funds 
     under such grant, contract, or cooperative agreement, subject 
     to the original terms under which such funds were provided, 
     through the end of the applicable grant, contract, or 
     agreement cycle.

     ``SEC. 304. RULE OF CONSTRUCTION.

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

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

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

     SEC. 752. REAUTHORIZATIONS.

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

     SEC. 753. REPEALS.

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

     SEC. 801. SHORT TITLE AND REFERENCES.

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

     SEC. 802. GOALS.

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

     SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT 
                   AUTHORITY.

       (a) In General.--Section 658B (42 U.S.C. 9858) is amended 
     to read as follows:

     ``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 418. FUNDING FOR CHILD CARE.

       ``(a) General Child Care Entitlement.--
       ``(1) General entitlement.--Subject to the amount 
     appropriated under paragraph (3), each State shall, for the 
     purpose of providing child care assistance, be entitled to 
     payments under a grant under this subsection for a fiscal 
     year in an amount equal to--
       ``(A) the sum of the total amount required to be paid to 
     the State under former section 403 for fiscal year 1994 with 
     respect to amounts expended for child care under section--
       ``(i) 402(g) of this Act (as such section was in effect 
     before October 1, 1995); and
       ``(ii) 403(i) of this Act (as so in effect); or
       ``(B) the average of the total amounts required to be paid 
     to the State for fiscal years 1992 through 1994 under the 
     sections referred to in subparagraph (A);

     whichever is greater.
       ``(2) Remainder.--
       ``(A) Grants.--The Secretary shall use any amounts 
     appropriated for a fiscal year under paragraph (3), and 
     remaining after the reservation described in paragraph (5) 
     and after grants are awarded under paragraph (1), to make 
     grants to States under this paragraph.
       ``(B) Amount.--Subject to subparagraph (C), the amount of a 
     grant awarded to a State for a fiscal year under this 
     paragraph shall be based on the formula used for determining 
     the amount of Federal payments to the State under section 
     403(n) (as such section was in effect before October 1, 
     1995).
       ``(C) Matching requirement.--The Secretary shall pay to 
     each eligible State in a fiscal year an amount, under a grant 
     under subparagraph (A), equal to the Federal medical 
     assistance percentage for such State for fiscal year 1994 (as 
     defined in section 1905(b)) of so much of the expenditures by 
     the State for child care in such year as exceed the State 
     set-aside for such State under subparagraph (A) for such year 
     and the amount of State expenditures in fiscal year 1994 that 
     equal the non-Federal share for the programs described in 
     subparagraphs (A), (B) and (C) of paragraph (1).
       ``(3) Appropriation.--There are authorized to be 
     appropriated, and there are appropriated, to carry out this 
     section--
       ``(A) $1,300,000,000 for fiscal year 1997;
     
[[Page H15370]]

       ``(B) $1,400,000,000 for fiscal year 1998;
       ``(C) $1,500,000,000 for fiscal year 1999;
       ``(D) $1,700,000,000 for fiscal year 2000;
       ``(E) $1,900,000,000 for fiscal year 2001; and
       ``(F) $2,050,000,000 for fiscal year 2002.
       ``(4) Redistribution.--With respect to any fiscal year, if 
     the Secretary determines that amounts under any grant awarded 
     to a State under this subsection for such fiscal year will 
     not be used by such State for carrying out the purpose for 
     which the grant is made, the Secretary shall make such 
     amounts available for carrying out such purpose to 1 or more 
     other States which apply for such funds to the extent the 
     Secretary determines that such other States will be able to 
     use such additional amounts for carrying out such purpose. 
     Such available amounts shall be redistributed to a State 
     pursuant to section 402(i) (as such section was in effect 
     before October 1, 1995) by substituting `the number of 
     children residing in all States applying for such funds' for 
     `the number of children residing in the United States in the 
     second preceding fiscal year'. Any amount made available to a 
     State from an appropriation for a fiscal year in accordance 
     with the preceding sentence shall, for purposes of this part, 
     be regarded as part of such State's payment (as determined 
     under this subsection) for such year.
       ``(5) Indian tribes.--The Secretary shall reserve not more 
     than 1 percent of the aggregate amount appropriated to carry 
     out this section in each fiscal year for payments to Indian 
     tribes and tribal organizations.
       ``(b) Use of funds.--
       ``(1) In general.--Amounts received by a State under this 
     section shall only be used to provide child care assistance.
       ``(2) Use for certain populations.--A State shall ensure 
     that not less than 70 percent of the total amount of funds 
     received by the State in a fiscal year under this section are 
     used to provide child care assistance to families who are 
     receiving assistance under a State program under this part, 
     families who are attempting through work activities to 
     transition off of such assistance program, and families who 
     are at risk of becoming dependent on such assistance program.
       ``(c) Application of Child Care and Development Block Grant 
     Act of 1990.--Notwithstanding any other provision of law, 
     amounts provided to a State under this section shall be 
     transferred to the lead agency under the Child Care and 
     Development Block Grant Act of 1990, integrated by the State 
     into the programs established by the State under such Act, 
     and be subject to requirements and limitations of such Act.
       ``(d) Definition.--As used in this section, the term 
     `State' means each of the 50 States or the District of 
     Columbia.''.

     SEC. 804. LEAD AGENCY.

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

     SEC. 805. APPLICATION AND PLAN.

       Section 658E (42 U.S.C. 9858c) is amended--
       (1) in subsection (b)--
       (A) by striking ``implemented--'' and all that follows 
     through ``(2)'' and inserting ``implemented''; and
       (B) by striking ``for subsequent State plans'';
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) in clause (i) by striking ``, other than through 
     assistance provided under paragraph (3)(C),''; and
       (II) by striking ``except'' and all that follows through 
     ``1992'', and inserting ``and provide a detailed description 
     of the procedures the State will implement to carry out the 
     requirements of this subparagraph'';

       (ii) in subparagraph (B)--

       (I) by striking ``Provide assurances'' and inserting 
     ``Certify''; and
       (II) by inserting before the period at the end ``and 
     provide a detailed description of such procedures'';

       (iii) in subparagraph (C)--

       (I) by striking ``Provide assurances'' and inserting 
     ``Certify''; and
       (II) by inserting before the period at the end ``and 
     provide a detailed description of how such record is 
     maintained and is made available'';

       (iv) by amending subparagraph (D) to read as follows:
       ``(D) Consumer education information.--Certify that the 
     State will collect and disseminate to parents of eligible 
     children and the general public, consumer education 
     information that will promote informed child care choices.'';
       (v) in subparagraph (E), to read as follows:
       ``(E) Compliance with state licensing requirements.--
       ``(i) In general.--Certify that the State has in effect 
     licensing requirements applicable to child care services 
     provided within the State, and provide a detailed description 
     of such requirements and of how such requirements are 
     effectively enforced. Nothing in the preceding sentence shall 
     be construed to require that licensing requirements be 
     applied to specific types of providers of child care 
     services.
       ``(ii) Indian tribes and tribal organizations.--In lieu of 
     any licensing and regulatory requirements applicable under 
     State and local law, the Secretary, in consultation with 
     Indian tribes and tribal organizations, shall develop minimum 
     child care standards (that appropriately reflect tribal needs 
     and available resources) that shall be applicable to Indian 
     tribes and tribal organization receiving assistance under 
     this subchapter.'';
       (vi) by striking subparagraph (F);
       (vii) in subparagraph (G)--

       (I) by redesignating such subparagraph as subparagraph (F);
       (II) by striking ``Provide assurances'' and inserting 
     ``Certify''; and
       (III) by striking ``as described in subparagraph (F)''; and

       (viii) by striking subparagraphs (H), (I), and (J) and 
     inserting the following:
       ``(G) Meeting the needs of certain populations.--
     Demonstrate the manner in which the State will meet the 
     specific child care needs of families who are receiving 
     assistance under a State program under part A of title IV of 
     the Social Security Act, families who are attempting through 
     work activities to transition off of such assistance program, 
     and families who are at risk of becoming dependent on such 
     assistance program.'';
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``(B) and (C)'' and 
     inserting ``(B) through (D)'';
       (ii) in subparagraph (B)--

       (I) by striking ``.--Subject to the reservation contained 
     in subparagraph (C), the'' and inserting ``and related 
     activities.--The'';
       (II) in clause (i) by striking ``; and'' at the end and 
     inserting a period;
       (III) by striking ``for--'' and all that follows through 
     ``section 658E(c)(2)(A)'' and inserting ``for child care 
     services on sliding fee scale basis, activities that improve 
     the quality or availability of such services, and any other 
     activity that the State deems appropriate to realize any of 
     the goals specified in paragraphs (2) through (5) of section 
     658A(b)''; and
       (IV) by striking clause (ii);

       (iii) by amending subparagraph (C) to read as follows:
       ``(C) Limitation on administrative costs.--Not more than 3 
     percent of the aggregate amount of funds available to the 
     State to carry out this subchapter by a State in each fiscal 
     year may be expended for administrative costs incurred by 
     such State to carry out all of its functions and duties under 
     this subchapter. As used in the preceding sentence, the term 
     `administrative costs' shall not include the costs of 
     providing direct services.''; and
       (iv) by adding at the end thereof the following:
       ``(D) Assistance for certain families.--A State shall 
     ensure that a substantial portion of the amounts available 
     (after the State has complied with the requirement of section 
     418(b)(2) of the Social Security Act with respect to each of 
     the fiscal years 1997 through 2002) to the State to carry out 
     activities this subchapter in each fiscal year is used to 
     provide assistance to low-income working families other than 
     families described in paragraph (2)(F).''; and
       (C) in paragraph (4)(A)--
       (i) by striking ``provide assurances'' and inserting 
     ``certify'';
       (ii) in the first sentence by inserting ``and shall provide 
     a summary of the facts relied on by the State to determine 
     that such rates are sufficient to ensure such access'' before 
     the period; and
       (iii) by striking the last sentence.

     SEC. 806. LIMITATION ON STATE ALLOTMENTS.

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

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

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

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

       ``A State that receives funds to carry out this subchapter 
     for a fiscal year, shall use not less than 3 percent of the 
     amount of such funds for activities that are designed to 
     provide comprehensive consumer education to parents and the 
     public, activities that increase parental choice, and 
     activities designed to improve the quality and availability 
     of child care (such as resource and referral services).''.

     SEC. 808. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE- 
                   AND AFTER-SCHOOL CARE REQUIREMENT.

       Section 658H (42 U.S.C. 9858f) is repealed.

     SEC. 809. ADMINISTRATION AND ENFORCEMENT.

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

     SEC. 810. PAYMENTS.

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

     SEC. 811. ANNUAL REPORT AND AUDITS.

       Section 658K (42 U.S.C. 9858i) is amended--
       (1) in the section heading by striking ``annual report'' 
     and inserting ``reports'';
       (2) in subsection (a), to read as follows:
       ``(a) Reports.--
       ``(1) Collection of information by states.--
       ``(A) In general.--A State that receives funds to carry out 
     this subchapter shall collect the information described in 
     subparagraph (B) on a monthly basis.
     
[[Page H15371]]

       ``(B) Required information.--The information required under 
     this subparagraph shall include, with respect to a family 
     unit receiving assistance under this subchapter information 
     concerning--
       ``(i) family income;
       ``(ii) county of residence;
       ``(iii) the gender, race, and age of children receiving 
     such assistance;
       ``(iv) whether the family includes only 1 parent;
       ``(v) the sources of family income, including the amount 
     obtained from (and separately identified)--

       ``(I) employment, including self-employment;
       ``(II) cash or other assistance under part A of title IV of 
     the Social Security Act;
       ``(III) housing assistance;
       ``(IV) assistance under the Food Stamp Act of 1977; and
       ``(V) other assistance programs;

       ``(vi) the number of months the family has received 
     benefits;
       ``(vii) the type of child care in which the child was 
     enrolled (such as family child care, home care, or center-
     based child care);
       ``(viii) whether the child care provider involved was a 
     relative;
       ``(ix) the cost of child care for such families; and
       ``(x) the average hours per week of such care;

     during the period for which such information is required to 
     be submitted.
       ``(C) Submission to secretary.--A State described in 
     subparagraph (A) shall, on a quarterly basis, submit the 
     information required to be collected under subparagraph (B) 
     to the Secretary.
       ``(D) Sampling.--The Secretary may disapprove the 
     information collected by a State under this paragraph if the 
     State uses sampling methods to collect such information.
       ``(2) Biannual reports.--Not later than December 31, 1997, 
     and every 6 months thereafter, a State described in paragraph 
     (1)(A) shall prepare and submit to the Secretary a report 
     that includes aggregate data concerning--
       ``(A) the number of child care providers that received 
     funding under this subchapter as separately identified based 
     on the types of providers listed in section 658P(5);
       ``(B) the monthly cost of child care services, and the 
     portion of such cost that is paid for with assistance 
     provided under this subchapter, listed by the type of child 
     care services provided;
       ``(C) the number of payments made by the State through 
     vouchers, contracts, cash, and disregards under public 
     benefit programs, listed by the type of child care services 
     provided;
       ``(D) the manner in which consumer education information 
     was provided to parents and the number of parents to whom 
     such information was provided; and
       ``(E) the total number (without duplication) of children 
     and families served under this subchapter;

     during the period for which such report is required to be 
     submitted.''; and
       (2) in subsection (b)--
       (A) in paragraph (1) by striking ``a application'' and 
     inserting ``an application'';
       (B) in paragraph (2) by striking ``any agency administering 
     activities that receive'' and inserting ``the State that 
     receives''; and
       (C) in paragraph (4) by striking ``entitles'' and inserting 
     ``entitled''.

     SEC. 812. REPORT BY THE SECRETARY.

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

     SEC. 813. ALLOTMENTS.

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

     SEC. 814. DEFINITIONS.

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

     SEC. 815. REPEALS.

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

     SEC. 816. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     title and the amendments made by this title shall take effect 
     on October 1, 1996.
       (b) Exception.--The amendment made by section 803(a) shall 
     take effect on the date of enactment of this Act.
                   TITLE IX--CHILD NUTRITION PROGRAMS
                 Subtitle A--National School Lunch Act

     SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

       (a) In General.--Section 8 of the National School Lunch Act 
     (42 U.S.C. 1757) is amended--
       (1) in the third sentence, by striking ``Nothing'' and all 
     that follows through ``educational agency to'' and inserting 
     ``The State educational agency may'';
       (2) by striking the fourth, fifth, and eighth sentences;
       (3) by redesignating the first through sixth sentences, as 
     amended by paragraph (1), as subsections (a) through (f), 
     respectively;
       (4) in subsection (b), as redesignated by paragraph (3), by 
     striking ``the preceding sentence'' and inserting 
     ``subsection (a)''; and
       (5) in subsection (d), as redesignated by paragraph (3), by 
     striking ``Such food costs'' and inserting ``Use of funds 
     paid to States''.
       (b) Definition of Child.--Section 12(d) of the Act (42 
     U.S.C. 1760(d)) is amended by adding at the end the 
     following:
       ``(9) `child' includes an individual, regardless of age, 
     who--
       ``(A) is determined by a State educational agency, in 
     accordance with regulations prescribed by the Secretary, to 
     have 1 or more mental or physical disabilities; and
       ``(B) is attending any institution, as defined in section 
     17(a), or any nonresidential public or nonprofit private 
     school of high school grade or under, for the purpose of 
     participating in a school program established for individuals 
     with mental or physical disabilities.

     No institution that is not otherwise eligible to participate 
     in the program under section 17 shall be considered eligible 
     because of this paragraph.''.

     SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

       (a) Nutritional Standards.--Section 9(a) of the National 
     School Lunch Act (42 U.S.C. 1758(a)) is amended--
     
[[Page H15372]]

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

     SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

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

     SEC. 904. SPECIAL ASSISTANCE.

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

     SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

     SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       (a) Establishment of Program.--Section 13(a) of the 
     National School Lunch Act (42 U.S.C. 1761(a)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence, by striking ``initiate, 
     maintain, and expand'' and insert ``initiate and maintain''; 
     and
       (B) in subparagraph (E) of the second sentence, by striking 
     ``the Trust Territory of the Pacific Islands,''; and
       (2) in paragraph (7)(A), by striking ``Except as provided 
     in subparagraph (C), private'' and inserting ``Private''.
       (b) Service Institutions.--Section 13(b) of the Act is 
     amended by striking ``(b)(1)'' and all that follows through 
     the end of paragraph (1) and inserting the following:
       ``(b) Service Institutions.--
       ``(1) Payments.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, payments to service institutions shall equal the 
     full cost of food service operations (which cost shall 
     include the costs of obtaining, preparing, and serving food, 
     but shall not include administrative costs).
       ``(B) Maximum amounts.--Subject to subparagraph (C), 
     payments to any institution under subparagraph (A) shall not 
     exceed--
       ``(i) $1.82 for each lunch and supper served;
       ``(ii) $1.13 for each breakfast served; and
       ``(iii) 46 cents for each meal supplement served.
       ``(C) Adjustments.--Amounts specified in subparagraph (B) 
     shall be adjusted each January 1 to the nearest lower cent 
     increment in accordance with the changes for the 12-month 
     period ending the preceding November 30 in the series for 
     food away from home of the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor. Each adjustment shall be based on the 
     unrounded adjustment for the prior 12-month period.''.
       (c) Administration of Service Institutions.--Section 
     13(b)(2) of the Act is amended--
       (1) in the first sentence, by striking ``four meals'' and 
     inserting ``3 meals, or 2 meals and 1 supplement,''; and
       (2) by striking the second sentence.
       (d) Reimbursements.--Section 13(c)(2) of the Act is 
     amended--
       (1) by striking subparagraph (A);
       (2) in subparagraph (B)--
       (A) in the first sentence--
       (i) by striking ``, and such higher education 
     institutions,''; and
       (ii) by striking ``without application'' and inserting 
     ``upon showing residence in areas in which poor economic 
     conditions exist or on the basis of income eligibility 
     statements for children enrolled in the program''; and
       (B) by adding at the end the following: ``The higher 
     education institutions referred to in the preceding sentence 
     shall be eligible to participate in the program under this 
     paragraph without application.'';
       (3) in subparagraph (C)(ii), by striking ``severe need''; 
     and
       (4) by redesignating subparagraphs (B) through (E), as so 
     amended, as subparagraphs (A) through (D), respectively.
       (e) Advance Program Payments.--Section 13(e)(1) of the Act 
     is amended--
       (1) by striking ``institution: Provided, That (A) the'' and 
     inserting ``institution. The'';
       (2) by inserting ``(excluding a school)'' after ``any 
     service institution''; and
       (3) by striking ``responsibilities, and (B) no'' and 
     inserting ``responsibilities. No''.
       (f) Food Requirements.--Section 13(f) of the Act is 
     amended--
     
[[Page H15373]]

       (1) by redesignating the first through seventh sentences as 
     paragraphs (1) through (7), respectively;
       (2) by striking paragraph (3), as redesignated by paragraph 
     (1);
       (3) in paragraph (4), as redesignated by paragraph (1), by 
     striking ``the first sentence'' and inserting ``paragraph 
     (1)'';
       (4) in paragraph (6), as redesignated by paragraph (1), by 
     striking ``that bacteria levels'' and all that follows 
     through the period at the end and inserting ``conformance 
     with standards set by local health authorities.''; and
       (5) by redesignating paragraphs (4) through (7), as 
     redesignated by paragraph (1), as paragraphs (3) through (6), 
     respectively.
       (g) Permitting Offer Versus Serve.--Section 13(f) of the 
     Act, as amended by subsection (f), is further amended by 
     adding at the end the following:
       ``(7) Offer versus serve.--A school food authority 
     participating as a service institution may permit a child 
     attending a site on school premises operated directly by the 
     authority to refuse not more than 1 item of a meal that the 
     child does not intend to consume. A refusal of an offered 
     food item shall not affect the amount of payments made under 
     this section to a school for the meal.''.
       (h) Health Department Inspections.--Section 13(k) of the 
     Act is amended by striking paragraph (3).
       (i) Food Service Management Companies.--Section 13(l) of 
     the Act is amended--
       (1) by striking paragraph (4);
       (2) in paragraph (5), by striking the first sentence; and
       (3) by redesignating paragraph (5), as so amended, as 
     paragraph (4).
       (j) Records.--The second sentence of section 13(m) of the 
     Act is amended by striking ``at all times be available'' and 
     inserting ``be available at any reasonable time''.
       (k) Removing Mandatory Notice to Institutions.--Section 
     13(n)(2) of the Act is amended by striking ``, and its plans 
     and schedule for informing service institutions of the 
     availability of the program''.
       (l) Plan.--Section 13(n) of the Act is amended--
       (1) in paragraph (2), by striking ``including the State's 
     methods of assessing need'';
       (2) by striking paragraph (3);
       (3) in paragraph (4), by striking ``and schedule''; and
       (4) by redesignating paragraphs (4) through (7), as so 
     amended, as paragraphs (3) through (6), respectively.
       (m) Monitoring and Training.--Section 13(q) of the Act is 
     amended--
       (1) by striking paragraphs (2) and (4);
       (2) in paragraph (3), by striking ``paragraphs (1) and (2) 
     of this subsection'' and inserting ``paragraph (1)''; and
       (3) by redesignating paragraph (3), as so amended, as 
     paragraph (2).
       (n) Expired Program.--Section 13 of the Act is amended--
       (1) by striking subsection (p); and
       (2) by redesignating subsections (q) and (r), as so 
     amended, as subsections (p) and (q), respectively.
       (o) Effective Date.--The amendments made by subsection (b) 
     shall become effective on January 1, 1996.

     SEC. 907. COMMODITY DISTRIBUTION.

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

     SEC. 908. CHILD CARE FOOD PROGRAM.

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

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

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

       ``(II) Reimbursement.--Except as provided in subclause 
     (III), a tier I family or group day care home shall be 
     provided reimbursement factors under this clause without a 
     requirement for documentation of the costs described in 
     clause (i), except that reimbursement shall not be provided 
     under this subclause for meals or supplements served to the 
     children of a person acting as a family or group day care 
     home provider unless the children meet the income eligibility 
     guidelines for free or reduced price meals under section 9.
       ``(III) Factors.--Except as provided in subclause (IV), the 
     reimbursement factors applied to a home referred to in 
     subclause (II) shall be the factors in effect on the date of 
     enactment of this subclause.
       ``(IV) Adjustments.--The reimbursement factors under this 
     subparagraph shall be adjusted on August 1, 1996, July 1, 
     1997, and each July 1 thereafter, to reflect changes in the 
     Consumer Price Index for food at home for the most recent 12-
     month period for which the data are available. The 
     reimbursement factors under this subparagraph shall be 
     rounded to the nearest lower cent increment and based on the 
     unrounded adjustment in effect on June 30 of the preceding 
     school year.

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

       ``(I) In general.--

       ``(aa) Factors.--Except as provided in subclause (II), with 
     respect to meals or supplements served under this clause by a 
     family or group day care home that does not meet the criteria 
     set forth in clause (ii)(I), the reimbursement factors shall 
     be 90 cents for lunches and suppers, 25 cents for breakfasts, 
     and 10 cents for supplements.
       ``(bb) Adjustments.--The factors shall be adjusted on July 
     1, 1997, and each July 1 thereafter, to reflect changes in 
     the Consumer Price Index for food at home for the most recent 
     12-month period for which the data are available. The 
     reimbursement factors under this item shall be rounded down 
     to the nearest lower cent increment and based on the 
     unrounded adjustment for the preceding 12-month period.
       ``(cc) Reimbursement.--A family or group day care home 
     shall be provided reimbursement factors under this subclause 
     without a requirement for documentation of the costs 
     described in clause (i), except that reimbursement shall not 
     be provided under this subclause for meals or supplements 
     served to the children of a person acting as a family or 
     group day care home provider unless the children meet the 
     income eligibility guidelines for free or reduced price meals 
     under section 9.

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

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

       ``(III) Information and determinations.--

       ``(aa) In general.--If a family or group day care home 
     elects to claim the factors described in subclause (II), the 
     family or group day care home sponsoring organization serving 
     the home shall collect the necessary income information, as 
     determined by the Secretary, from any parent or other 
     caretaker to make the determinations specified in subclause 
     (II) and shall make the determinations in accordance with 
     rules prescribed by the Secretary.
     
[[Page H15374]]

       ``(bb) Categorical eligibility.--In making a determination 
     under item (aa), a family or group day care home sponsoring 
     organization may consider a child participating in or 
     subsidized under, or a child with a parent participating in 
     or subsidized under, a federally or State supported child 
     care or other benefit program with an income eligibility 
     limit that does not exceed the eligibility standard for free 
     or reduced price meals under section 9 to be a child who is a 
     member of a household whose income meets the income 
     eligibility guidelines under section 9.
       ``(cc) Factors for children only.--A family or group day 
     care home may elect to receive the reimbursement factors 
     prescribed under clause (ii)(III) solely for the children 
     participating in a program referred to in item (bb) if the 
     home elects not to have income statements collected from 
     parents or other caretakers.

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

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

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

       (2) Grants to states to provide assistance to family or 
     group day care homes.--Section 17(f)(3) of the Act is amended 
     by adding at the end the following:
       ``(D) Grants to states to provide assistance to family or 
     group day care homes.--
       ``(i) In general.--

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

       ``(aa) assistance, including grants, to family and day care 
     home sponsoring organizations and other appropriate 
     organizations, in securing and providing training, materials, 
     automated data processing assistance, and other assistance 
     for the staff of the sponsoring organizations; and
       ``(bb) training and other assistance to family and group 
     day care homes in the implementation of the amendment to 
     subparagraph (A) made by section 913(e)(1) of the Personal 
     Responsibility and Work Opportunity Act of 1995.
       ``(ii) Allocation.--The Secretary shall allocate from the 
     funds reserved under clause (i)(I)--

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

       ``(iii) Retention of funds.--Of the amount of funds made 
     available to a State for fiscal year 1996 under clause (i), 
     the State may retain not to exceed 30 percent of the amount 
     to carry out this subparagraph.
       ``(iv) Additional payments.--Any payments received under 
     this subparagraph shall be in addition to payments that a 
     State receives under subparagraph (A).''.
       (3) Provision of data.--Section 17(f)(3) of the Act, as 
     amended by paragraph (2), is further amended by adding at the 
     end the following:
       ``(E) Provision of data to family or group day care home 
     sponsoring organizations.--
       ``(i) Census data.--The Secretary shall provide to each 
     State agency administering a child care food program under 
     this section data from the most recent decennial census 
     survey or other appropriate census survey for which the data 
     are available showing which areas in the State meet the 
     requirements of subparagraph (A)(ii)(I)(aa). The State agency 
     shall provide the data to family or group day care home 
     sponsoring organizations located in the State.
       ``(ii) School data.--

       ``(I) In general.--A State agency administering the school 
     lunch program under this Act or the school breakfast program 
     under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.) shall provide to approved family or group day care home 
     sponsoring organizations a list of schools serving elementary 
     school children in the State in which not less than \1/2\ of 
     the children enrolled are certified to receive free or 
     reduced price meals. The State agency shall collect the data 
     necessary to create the list annually and provide the list on 
     a timely basis to any approved family or group day care home 
     sponsoring organization that requests the list.
       ``(II) Use of data from preceding school year.--In 
     determining for a fiscal year or other annual period whether 
     a home qualifies as a tier I family or group day care home 
     under subparagraph (A)(ii)(I), the State agency administering 
     the program under this section, and a family or group day 
     care home sponsoring organization, shall use the most current 
     available data at the time of the determination.

       ``(iii) Duration of determination.--For purposes of this 
     section, a determination that a family or group day care home 
     is located in an area that qualifies the home as a tier I 
     family or group day care home (as the term is defined in 
     subparagraph (A)(ii)(I)), shall be in effect for 3 years 
     (unless the determination is made on the basis of census 
     data, in which case the determination shall remain in effect 
     until more recent census data are available) unless the State 
     agency determines that the area in which the home is located 
     no longer qualifies the home as a tier I family or group day 
     care home.''.
       (4) Conforming amendments.--Section 17(c) of the Act is 
     amended by inserting ``except as provided in subsection 
     (f)(3),'' after ``For purposes of this section,'' each place 
     it appears in paragraphs (1), (2), and (3).
       (f) Reimbursement.--Section 17(f) of the Act is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (B), by striking the third and fourth 
     sentences; and
       (B) in subparagraph (C)--
       (i) in clause (i)--

       (I) by striking ``(i)'';
       (II) in the first sentence, by striking ``and expansion 
     funds'' and all that follows through ``rural areas'';
       (III) by striking the second sentence; and
       (IV) by striking ``and expansion funds'' each place it 
     appears; and

       (ii) by striking clause (ii); and
       (2) by striking paragraph (4).
       (g) Nutritional Requirements.--Section 17(g)(1) of the Act 
     is amended--
       (1) in subparagraph (A), by striking the second sentence; 
     and
       (2) in subparagraph (B), by striking the second sentence.
       (h) Elimination of State Paperwork and Outreach Burden.--
     Section 17 of the Act is amended by striking subsection (k) 
     and inserting the following:
       ``(k) Training and Technical Assistance.--A State 
     participating in the program established under this section 
     shall provide sufficient training, technical assistance, and 
     monitoring to facilitate effective operation of the program. 
     The Secretary shall assist the State in developing plans to 
     fulfill the requirements of this subsection.''.
       (i) Records.--The second sentence of section 17(m) of the 
     Act is amended by striking ``at all times'' and inserting 
     ``at any reasonable time''.
       (j) Modification of Adult Care Food Program.--Section 17(o) 
     of the Act is amended--
       (1) in the first sentence of paragraph (1)--
       (A) by striking ``adult day care centers'' and inserting 
     ``day care centers for chronically impaired disabled 
     persons'' ; and
       (B) by striking ``to persons 60 years of age or older or''; 
     and
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking ``adult day care center'' and inserting 
     ``day care center for chronically impaired disabled 
     persons''; and
       (ii) in clause (i)--

       (I) by striking ``adult'';
       (II) by striking ``adults'' and inserting ``persons''; and
       (III) by striking ``or persons 60 years of age or older''; 
     and

       (B) in subparagraph (B), by striking ``adult day care 
     services'' and inserting ``day care services for chronically 
     impaired disabled persons''.
       (k) Unneeded Provision.--Section 17 of the Act is amended 
     by striking subsection (q).
       (l) Conforming Amendments.--
       (1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is 
     amended--
       (A) in the subsection heading, by striking ``and Adult''; 
     and
       (B) in paragraph (1), by striking ``and adult''.
       (2) Section 18(e)(3)(B) of the Act (42 U.S.C. 
     1769(e)(3)(B)) is amended by striking ``and adult''.
       (3) Section 25(b)(1)(C) of the Act (42 U.S.C. 
     1769f(b)(1)(C)) is amended by striking ``and adult''.
       (4) Section 3(1) of the Healthy Meals for Healthy Americans 
     Act of 1994 (Public Law 103-448) is amended by striking ``and 
     adult''.
       (m) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall become effective on the 
     date of enactment of this Act.
       (2) Improved targeting of day care home reimbursements.--
     The amendments made by paragraphs (1), (3), and (4) of 
     subsection (e) shall become effective on August 1, 1996.
       (3) Regulations.--
       (A) Interim regulations.--Not later than February 1, 1996, 
     the Secretary shall issue interim regulations to implement--
       (i) the amendments made by paragraphs (1), (3), and (4) of 
     subsection (e); and
       (ii) section 17(f)(3)(C) of the National School Lunch Act 
     (42 U.S.C. 1766(f)(3)(C)).
       (B) Final regulations.--Not later than August 1, 1996, the 
     Secretary shall issue final regulations to implement the 
     provisions of law referred to in subparagraph (A).
       (n) Study of Impact of Amendments on Program Participation 
     and Family Day Care Licensing.--
       (1) In general.--The Secretary of Agriculture, in 
     conjunction with the Secretary of Health and Human Services, 
     shall study the impact of the amendments made by this section 
     on--
       (A) the number of family day care homes participating in 
     the child care food program established under section 17 of 
     the National School Lunch Act (42 U.S.C. 1766);
     
[[Page H15375]]

       (B) the number of day care home sponsoring organizations 
     participating in the program;
       (C) the number of day care homes that are licensed, 
     certified, registered, or approved by each State in 
     accordance with regulations issued by the Secretary;
       (D) the rate of growth of the numbers referred to in 
     subparagraphs (A) through (C);
       (E) the nutritional adequacy and quality of meals served in 
     family day care homes that--
       (i) received reimbursement under the program prior to the 
     amendments made by this section but do not receive 
     reimbursement after the amendments made by this section; or
       (ii) received full reimbursement under the program prior to 
     the amendments made by this section but do not receive full 
     reimbursement after the amendments made by this section; and
       (F) the proportion of low-income children participating in 
     the program prior to the amendments made by this section and 
     the proportion of low-income children participating in the 
     program after the amendments made by this section.
       (2) Required data.--Each State agency participating in the 
     child care food program under section 17 of the National 
     School Lunch Act (42 U.S.C. 1766) shall submit to the 
     Secretary data on--
       (A) the number of family day care homes participating in 
     the program on July 31, 1996, and July 31, 1997;
       (B) the number of family day care homes licensed, 
     certified, registered, or approved for service on July 31, 
     1996, and July 31, 1997; and
       (C) such other data as the Secretary may require to carry 
     out this subsection.
       (3) Submission of report.--Not later than 2 years after the 
     effective date of this section, the Secretary shall submit 
     the study required under this subsection to the Committee on 
     Economic and Educational Opportunities of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate.

     SEC. 909. PILOT PROJECTS.

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

     SEC. 910. REDUCTION OF PAPERWORK.

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

     SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

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

     SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

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

     SEC. 913. INFORMATION CLEARINGHOUSE.

       Section 26 of the National School Lunch Act (42 U.S.C. 
     1769g) is repealed.

     SEC. 914. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION 
                   PROGRAM.

       (a) In General.--The National School Lunch Act is amended 
     by inserting after section 4 (42 U.S.C. 1753) the following:

     ``SEC. 5. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRATION 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Block grant demonstration program.--The term `block 
     grant demonstration program' means the block grant program 
     demonstration program established under subsection (b).
       ``(2) Department of defense domestic dependents' school.--
     The term `Department of Defense domestic dependents' school' 
     means an elementary or secondary school established under 
     section 2164 of title 10, United States Code.
       ``(3) Low-income student.--The term `low-income student' 
     means a student who is a member of a family whose income is 
     less than 130 percent of the poverty line.
       ``(4) Needy student.--The term `needy student' means a 
     student who is a member of a family whose income is not less 
     than 130 percent, and not more than 185 percent, of the 
     poverty line.
       ``(5) Poverty line.--The term `poverty line' has the 
     meaning provided in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)).
       ``(6) State plan.--The term `State plan' means a State plan 
     submitted to and approved by the Secretary under subsection 
     (d).
       ``(b) Establishment.--The Secretary shall establish an 
     optional block grant demonstration program in not more than 1 
     State in each of the 7 Food and Consumer Service regions of 
     the United States Department of Agriculture to make grants to 
     States to carry out a school lunch and breakfast program for 
     all schoolchildren that--
       ``(1) safeguards the health and well-being of children 
     through the provision of nutritious, well-balanced meals in 
     schools;
       ``(2) provides children who are low-income students access 
     to nutritious free meals;
       ``(3) provides children who are needy students access to 
     nutritious low-cost meals;
       ``(4) ensures that children are receiving the nutrition 
     required to take advantage of educational opportunities;
       ``(5) emphasizes foods that are naturally good sources of 
     vitamins and minerals over foods that have been enriched with 
     vitamins and minerals and are high in fat or sodium content;
       ``(6) provides a comprehensive school nutrition program for 
     children, which may include offering free meals to all 
     children at a school;
       ``(7) minimizes paperwork burdens and administrative 
     expenses for participating schools; and
       ``(8) at the option of the State, provides meal supplements 
     to children in afterschool care.
       ``(c) Election by the State.--
       ``(1) In general.--A State with respect to which an 
     application submitted under subsection (d)(1) is approved may 
     participate in the block grant demonstration program.
       ``(2) Election irrevocable.--A State with respect to which 
     an application under paragraph (1) is approved may not 
     subsequently reverse the decision of the State to participate 
     in the block grant demonstration program until the 
     termination of the program under subsection (n).
       ``(3) Block grant demonstration program exclusive.--Except 
     as otherwise provided in this section, a State that is 
     participating in the block grant demonstration program shall 
     not be subject to, or receive any benefit under--
       ``(A) the school lunch program established under this Act;
       ``(B) the school breakfast program established under 
     section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773); or
       ``(C) the commodity distribution programs established under 
     sections 6 and 14.
       ``(4) Maintenance of service to low-income and needy 
     students.--
       ``(A) Proportions of students served.--A State shall ensure 
     that, during each year in which the State is participating in 
     the block grant demonstration program, the proportions of 
     school lunches and school breakfasts served to low-income 
     students and needy students under the block grant 
     demonstration program are not less than the proportions of 
     school lunches and school breakfasts, respectively, served to 
     low-income students and needy students in the last year of 
     participation by the State in the school lunch program 
     established under the other sections of this Act or the 
     school breakfast program established under section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773), respectively.
       ``(B) Proportions of funds used to provide service.--A 
     State shall ensure that, during each year in which the State 
     is participating in the block grant demonstration program, 
     the proportions of funds used by the State to provide school 
     lunches and school breakfasts for low-income students and 
     needy students under the block grant demonstration program 
     are not less than the proportions of State funds used to 
     provide school lunches and school breakfasts, respectively, 
     for low-income students and needy students in the last year 
     of participation by the State in the school lunch program 
     established under the other sections of this Act or the 
     school breakfast program established under section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773), respectively.
       ``(d) Application and State Plan.--
       ``(1) Application.--To be eligible to receive assistance 
     under the block grant demonstration program, a State shall 
     prepare and submit to the Secretary an application at such 
     time, in such manner, and containing such information as the 
     Secretary shall by regulation reasonably require, including--
       ``(A) an assurance that the State will comply with the 
     requirements of this section;
       ``(B) a State plan that meets the requirements of paragraph 
     (2);
       ``(C) an assurance that the State will comply with the 
     requirements of the State plan under paragraph (2); and
       ``(D) an assurance that the State will submit an annual 
     report in accordance with paragraph (4).
       ``(2) Requirements of state plan.--
       ``(A) Use of block grant demonstration program funds.--
       ``(i) In general.--Subject to clause (ii), the State plan 
     shall provide that the State shall use the amounts provided 
     to the State for each fiscal year under the block grant 
     demonstration program to provide assistance to schools to 
     provide lunches and breakfasts, including--

       ``(I) free lunches and breakfasts in accordance with 
     subparagraph (E) to low-income students at the schools;
       ``(II) low-cost lunches and breakfasts to needy students at 
     the schools;
       ``(III) at the option of the State, lunches and breakfasts 
     to all students; and
       ``(IV) at the option of the State, meal supplements.

       ``(ii) Administrative expenses.--A State may not use the 
     amounts described in clause (i) for the payment of State 
     administrative expenses incurred in carrying out the block 
     grant demonstration program.
       ``(iii) Nonprofit operation.--The school lunch and school 
     breakfast program under the block grant demonstration program 
     shall be operated on a nonprofit basis.
       ``(iv) Maintenance of state effort.--For each fiscal year 
     for which the State participates in the block grant 
     demonstration program, the amount of the State revenues 
     (excluding State revenues derived from the operation of the 
     program) appropriated or used specifically for block grant 
     demonstration program purposes (other than any State revenues 
     expended for salaries and administrative expenses of the 
     program at the State level) shall be not less than the amount 
     of such State revenues made available 

[[Page H15376]]
     for the preceding fiscal year under this section or for the school 
     lunch program under the other sections of this Act and the 
     school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773), as appropriate.
       ``(B) Nutritional requirements.--
       ``(i) Prohibition on additional requirements.--The 
     Secretary may not impose any additional nutritional 
     requirement beyond the requirements specified in this 
     subparagraph.
       ``(ii) Requirements.--The State plan shall provide for the 
     establishment and implementation of minimum nutritional 
     requirements for meals provided under the block grant 
     demonstration program based on the most recent tested 
     nutritional research available, except that the requirements 
     shall not prohibit the substitution of foods to accommodate 
     the medical or other special dietary needs of individual 
     students.
       ``(iii) Dietary guidelines.--The nutritional requirements 
     established under clause (ii) shall be consistent with the 
     goals of the most recent Dietary Guidelines for Americans 
     published under section 301 of the National Nutrition 
     Monitoring and Related Research Act of 1990 (7 U.S.C. 5341).
       ``(iv) Recommended dietary allowances.--The nutritional 
     requirements established under clause (ii) shall require that 
     meals provided under the block grant demonstration program 
     provide, on the average over each week, at least--

       ``(I) with respect to school lunches, \1/3\ of the daily 
     recommended dietary allowance established by the Food and 
     Nutrition Board of the National Research Council of the 
     National Academy of Sciences; and
       ``(II) with respect to school breakfasts, \1/4\ of the 
     daily recommended dietary allowance established by the Food 
     and Nutrition Board of the National Research Council of the 
     National Academy of Sciences.

       ``(C) Review of meal operations.--The State plan shall 
     provide that the State shall review the meal operations of 
     each school food authority participating in the block grant 
     demonstration program not later than 2 years, and not later 
     than 4 years, after the implementation of the block grant 
     demonstration program in the State.
       ``(D) Groups served.--Subject to subsection (c)(4), the 
     State plan shall describe how the block grant demonstration 
     program will serve specific groups of students in the State.
       ``(E) Eligibility limitations.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     State plan shall describe the income eligibility limitations 
     established for the receipt of free meals and low-cost meals 
     under the block grant demonstration program.
       ``(ii) Eligibility for free meals.--

       ``(I) Low-income students.--A low-income student who 
     attends a school participating in the block grant 
     demonstration program shall be eligible to receive free 
     school lunches and school breakfasts under the block grant 
     demonstration program.
       ``(II) Other students.--The State plan may provide that a 
     student who is a member of a family whose income is equal to 
     or more than 130 percent of the poverty line and who attends 
     a school participating in the block grant demonstration 
     program shall be eligible to receive free school lunches and 
     school breakfasts under the block grant demonstration 
     program.

       ``(iii) Eligibility for low-cost meals.--

       ``(I) In general.--The State plan shall provide that a 
     needy student who attends a school participating in the block 
     grant demonstration program shall be eligible to receive a 
     low-cost meal under the block grant demonstration program.
       ``(II) Price.--A low-cost meal under subclause (I) shall be 
     offered to a needy student at a price that is less than the 
     price charged to a student who is a member of a family whose 
     income is more than 185 percent of the poverty line.
       ``(III) Group eligibility criteria.--Subject to the other 
     provisions of this subparagraph and to subsection (c)(4), 
     each State may develop group eligibility criteria based on 
     census or other accurate data that measures the income of 
     families with school-aged children in a school district or 
     based on prior year participation.

       ``(F) Opportunity for continued participation.--The State 
     plan shall provide that each school participating in the 
     school lunch program under the other sections of this Act or 
     the school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773), or both, on the day 
     before the effective date of this subparagraph shall be 
     provided the opportunity to participate in the block grant 
     demonstration program. Such continued participation shall 
     include the opportunity for the school to provide the meal or 
     combination of meals offered prior to the effective date of 
     this subparagraph.
       ``(G) Provision of commodities to cash/cloc schools.--
       ``(i) In general.--A State plan may not require a school 
     district, nonprofit private school, or Department of Defense 
     domestic dependents' school described in clause (ii), except 
     on request of the school district, private school, or 
     domestic dependents' school, as the case may be, to accept 
     commodities for use in the school lunch or school breakfast 
     program of the school district, private school, or domestic 
     dependents' school in accordance with this section. The 
     school district, private school, or domestic dependents' 
     school may continue to receive commodity assistance in the 
     form that the school received the assistance as of January 1, 
     1987.
       ``(ii) Schools.--Clause (i) applies to a school district, 
     nonprofit private school, or Department of Defense domestic 
     dependents' school, as the case may be, that as of January 1, 
     1987, was receiving all cash payments or all commodity 
     letters of credit in lieu of entitlement commodities for the 
     school lunch program of the school district, private school, 
     or domestic dependents' school under section 18(b).
       ``(H) Privacy.--
       ``(i) In general.--The State plan shall provide for 
     safeguarding and restricting the use and disclosure of 
     information about any student receiving assistance under the 
     block grant demonstration program.
       ``(ii) Recipients of free or low-cost meals.--In providing 
     assistance to schools to serve meals under the block grant 
     demonstration program, the State shall ensure that the 
     schools do not--

       ``(I) physically segregate students eligible to receive 
     free or low-cost meals on the basis of the eligibility;
       ``(II) provide for the overt identification of the students 
     by special tokens or tickets, announced or published list of 
     names, or other means; or
       ``(III) otherwise discriminate against the students.

       ``(I) Other information.--The State plan shall contain such 
     other information as may be reasonably required by the 
     Secretary.
       ``(3) Approval of application and state plan.--The 
     Secretary shall approve an application and State plan that 
     meet the requirements of this section.
       ``(4) Report.--The Secretary may provide a grant under the 
     block grant demonstration program to a State for a fiscal 
     year only if the State agrees that the State will submit, for 
     the fiscal year, a report to the Secretary describing--
       ``(A) the number of students receiving assistance under the 
     block grant demonstration program;
       ``(B) the different types of assistance provided to the 
     students;
       ``(C) the extent to which the assistance was effective in 
     achieving the goals described in subsection (b);
       ``(D) the total number of meals served to students under 
     the block grant demonstration program, including the 
     percentage of the meals served to low-income students and 
     needy students;
       ``(E) the standards and methods that the State is using to 
     ensure the nutritional quality of the meals served under the 
     block grant demonstration program; and
       ``(F) any other information that may be reasonably required 
     by the Secretary.
       ``(e) Use of Funds.--Funds made available under this 
     section may be expended only for--
       ``(1) school lunches, school breakfasts, and meal 
     supplements; and
       ``(2) the purchase of equipment needed to improve school 
     food services under the block grant demonstration program.
       ``(f) Enforcement.--
       ``(1) Review of compliance with state plan.--The Secretary 
     shall review and monitor State compliance with this section 
     and the State plan.
       ``(2) Noncompliance.--
       ``(A) In general.--If the Secretary, after providing 
     reasonable notice to a State and opportunity for a hearing, 
     finds that--
       ``(i) there has been a failure by the State to comply 
     substantially with any provision or requirement set forth in 
     the State plan; or
       ``(ii) in the operation of any program or activity for 
     which assistance is provided under the block grant 
     demonstration program, there is a failure by the State to 
     comply substantially with any provision of this section;

     the Secretary shall notify the State of the finding and that 
     no further payments will be made to the State under the block 
     grant demonstration program, or, in the case of noncompliance 
     in the operation of a program or activity, that no further 
     payments to the State will be made with respect to the 
     program or activity, until the Secretary determines that 
     there is no longer any failure to comply or that the 
     noncompliance will be promptly corrected.
       ``(B) Other sanctions.--In the case of a finding of 
     noncompliance made under subparagraph (A), the Secretary may, 
     in addition to, or in lieu of, imposing the sanctions 
     described in subparagraph (A), impose other appropriate 
     sanctions, including recoupment of money improperly expended 
     for purposes prohibited or not authorized by this section and 
     disqualification from the receipt of financial assistance 
     under this section.
       ``(C) Notice.--The notice required under subparagraph (A) 
     shall include a specific identification of any additional 
     sanction being imposed under subparagraph (B).
       ``(3) Issuance of regulations.--The Secretary shall 
     establish by regulation procedures for--
       ``(A) receiving, processing, and determining the validity 
     of complaints concerning any failure of a State to comply 
     with the State plan or any requirement of this section; and
       ``(B) imposing sanctions under this section.
       ``(g) Payments.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall pay to a State that has an application approved by the 
     Secretary under subsection (d)(3) and that complies with 
     paragraph (3) an amount that is equal to the allotment of the 
     State under subsection (i) for the fiscal year.
       ``(2) Methods of payment.--The Secretary shall make 
     payments to a State for a fiscal year under this section on a 
     quarterly basis--
       ``(A) by issuing letters of credit for the fiscal year, 
     with necessary adjustments on account of overpayments or 
     underpayments, as determined by the Secretary; and
       ``(B) by providing not less than 8 percent but not more 
     than 10 percent of the amount of the allotment to the State 
     in the form of commodities.
       ``(3) Expenditure of funds by states.--Payments to a State 
     from an allotment under subsection (i) for a fiscal year may 
     be expended by the State only in the fiscal year or in the 
     succeeding fiscal year.
       ``(4) Provision of school lunches and breakfasts.--Subject 
     to the other provisions of 

[[Page H15377]]
     this section, a State may provide school lunches and school breakfasts 
     under the block grant demonstration program in any manner 
     determined appropriate by the State.
       ``(h) Audits.--
       ``(1) Requirement.--After the close of each fiscal year, 
     the Secretary shall carry out an audit of the expenditures 
     from amounts received under this section by each State 
     participating in the block grant demonstration program during 
     the fiscal year.
       ``(2) Records.--Each State described in paragraph (1) shall 
     maintain such records as the Secretary may reasonably require 
     to carry out an audit under this subsection.
       ``(3) Repayment of amounts.--Each State shall repay to the 
     United States any amounts determined through an audit under 
     this subsection to have not been expended in accordance with 
     this section or to have not been expended in accordance with 
     the State plan, or the Secretary may offset the amounts 
     against any other amount paid to the State under this 
     section.
       ``(i) Allotments.--
       ``(1) First fiscal year.--
       ``(A) In general.--For the first fiscal year in which the 
     State participates in the block grant demonstration program, 
     the Secretary shall allot to the State, from amounts made 
     available under section 3 of this Act and the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.), an amount that is equal 
     to the amount that the Secretary projects would be made 
     available to the State to carry out the school lunch program 
     under the other sections of this Act and the school breakfast 
     program under section 4 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773) (including the value of commodities made 
     available under the commodity distribution programs 
     established under sections 6 and 14) for the fiscal year.
       ``(B) Basis for projections.--In making a projection under 
     subparagraph (A), the Secretary shall take into account--
       ``(i) participation trends in the State; and
       ``(ii) projected changes in reimbursement rates under the 
     school lunch program under the other sections of this Act, 
     and the school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773).
       ``(C) Publication in the federal register.--The Secretary 
     shall publish in the Federal Register--
       ``(i) not later than February 1, 1996, and each February 1 
     thereafter, the amount that the Secretary projects will be 
     made available to each State that, as of the date of 
     publication, is not participating in the block grant 
     demonstration program to carry out the school lunch program 
     under the other sections of this Act and the school breakfast 
     program under section 4 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773) for the first fiscal year that begins after 
     the date of publication; and
       ``(ii) not later than February 1, 1998, and each February 1 
     thereafter, with respect to each State for which a projection 
     was made under clause (i)--

       ``(I) the amount that the Secretary projected would be made 
     available to the State for the fiscal year that ended the 
     preceding September 30; and
       ``(II) the amount that actually was made available to the 
     State for the fiscal year that ended the preceding September 
     30.

       ``(2) Later fiscal years.--For each fiscal year after the 
     first fiscal year referred to in paragraph (1), the Secretary 
     shall allot to the State, from amounts made available under 
     section 3 of this Act and the Child Nutrition Act of 1966 (42 
     U.S.C. 1771 et seq.), an amount that is equal to the sum of--
       ``(A) the amount allotted under paragraph (1); and
       ``(B) the product of--
       ``(i) the amount allotted under paragraph (1); and
       ``(ii) a factor consisting of the sum of--

       ``(I) \1/2\ of the percentage change in the series for food 
     away from home of the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor for the most recent 12-month period for 
     which such data are available; and
       ``(II) \1/2\ of the percentage change in the number of 
     children projected to be enrolled in school in the State in 
     the current school year (as of the first day of the fiscal 
     year) as compared to the number of children enrolled in 
     school in the State in the preceding school year.

       ``(j) Relationship to Other Laws.--The value of assistance 
     provided to students under the block grant demonstration 
     program shall not be considered to be income or resources for 
     any purpose under any Federal or State law, including any law 
     relating to taxation and welfare and public assistance 
     programs.
       ``(k) Alternative Assistance to Certain Students.--
       ``(1) Assistance.--If, by reason of any other provision of 
     law, a State participating in the block grant demonstration 
     program is prohibited from providing assistance from amounts 
     received from a grant under the block grant demonstration 
     program to a nonprofit private school or Department of 
     Defense domestic dependents' school for a fiscal year to 
     carry out the block grant demonstration program, or the 
     Secretary determines that a State has substantially failed or 
     is unwilling to provide the assistance to a nonprofit private 
     school, Department of Defense domestic dependents' school, or 
     public school, for the fiscal year, the Secretary shall, 
     after consultation with appropriate representatives of the 
     State and affected school, arrange for the provision of the 
     assistance to the school for the fiscal year in accordance 
     with the other sections of this Act.
       ``(2) Reduction in amount of state grant.--If the Secretary 
     arranges for the provision of assistance to a nonprofit 
     private school, Department of Defense domestic dependents' 
     school, or public school in a State for a fiscal year under 
     paragraph (1), the amount of the grant to the State for the 
     fiscal year shall be reduced by the amount of the assistance 
     provided to the school.
       ``(l) Transition Provisions.--
       ``(1) Transition into block grant demonstration program.--A 
     State for which an application and State plan are approved 
     under subsection (d)(3) shall be eligible to use a portion 
     (as determined by the Secretary) of the funds and commodities 
     made available to the State for the preceding fiscal year 
     under the school lunch program under the other sections of 
     this Act, and the school breakfast program under section 4 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1773), to make a 
     transition into the block grant demonstration program.
       ``(2) Transition upon termination of block grant 
     demonstration program.--Upon termination of the block grant 
     demonstration program, a State that participated in the block 
     grant demonstration program shall be eligible to use a 
     portion (as determined by the Secretary) of the funds and 
     commodities made available to the State for the preceding 
     fiscal year under the block grant demonstration program to 
     make a transition back to the operation of the school lunch 
     program under the other sections of this Act and the school 
     breakfast program under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).
       ``(m) Evaluations by the Secretary.--
       ``(1) In general.--Not later than 3 years after the 
     establishment of the block grant demonstration program and 
     not later than 180 days prior to the termination date 
     specified in subsection (n), the Secretary shall conduct an 
     evaluation, and submit a report on the evaluation to Congress 
     (including the comments of the Comptroller General of the 
     United States under paragraph (3)), concerning the block 
     grant demonstration program.
       ``(2) Contents.--In carrying out paragraph (1), the 
     Secretary shall evaluate, using, to the extent practicable, 
     data required to be reported by the States under this 
     section--
       ``(A) the effects of the block grant demonstration program 
     on the nutritional quality of the meals offered;
       ``(B) the degree to which children, especially children who 
     are low-income students and children who are needy students, 
     participated in the block grant demonstration program during 
     each fiscal year covered by the evaluation as compared to the 
     participation of the children in the block grant 
     demonstration program, or in the school lunch program under 
     the other sections of this Act and the school breakfast 
     program under section 4 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773), during the prior fiscal year;
       ``(C) the income distribution of the children served and 
     the amount of Federal assistance the children received under 
     the block grant demonstration program for each fiscal year;
       ``(D) the schools participating in, and the types of meals 
     offered under, the block grant demonstration program during 
     each fiscal year covered by the evaluation as compared to the 
     schools participating in, and the types of meals offered 
     under, the block grant demonstration program, or the school 
     lunch program under the other sections of this Act and the 
     school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773), during the prior 
     fiscal year;
       ``(E) how the implementation of the block grant 
     demonstration program differs from the implementation of the 
     school lunch program under the other sections of this Act and 
     the school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773);
       ``(F) the effect of the block grant demonstration program 
     on the administrative costs paid by States and schools to 
     carry out school lunch and school breakfast programs;
       ``(G) the effect of the block grant demonstration program 
     on the paperwork required to be completed by schools and 
     parents under school lunch and school breakfast programs; and
       ``(H) such other issues concerning the block grant 
     demonstration program as the Secretary considers appropriate.
       ``(3) Comments by the comptroller general.--The Comptroller 
     General of the United States shall--
       ``(A) comment on the evaluation conducted under paragraph 
     (1), including the methodology used by the Secretary in 
     conducting the evaluation; and
       ``(B) submit the comments to the Secretary for inclusion in 
     the evaluation.
       ``(n) Termination of Authority.--The authority to carry out 
     the block grant demonstration program shall terminate on 
     September 30, 2000.''.
       (b) State Administrative Expenses.--The first sentence of 
     section 7(a)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1776(a)(1)) is amended by inserting ``5,'' after ``4,''.
       (c) Prohibition on Waivers.--Section 12(l)(4) of the 
     National School Lunch Act (42 U.S.C. 1760(l)(4)) is amended--
       (1) in subparagraph (M), by striking ``and'' at the end;
       (2) in subparagraph (N), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(O) the school nutrition optional block grant 
     demonstration program established under section 5.''.
                Subtitle B--Child Nutrition Act of 1966

     SEC. 921. SPECIAL MILK PROGRAM.

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

     SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

       Section 4(b)(1) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1773(b)(1)) is amended by adding at the end the 
     following:
     
[[Page H15378]]

       ``(E) Free and reduced price policy statement.--After the 
     initial submission, a school shall not be required to submit 
     a free and reduced price policy statement to a State 
     educational agency under this Act unless there is a 
     substantive change in the free and reduced price policy of 
     the school. A routine change in the policy of a school, such 
     as an annual adjustment of the income eligibility guidelines 
     for free and reduced price meals, shall not be sufficient 
     cause for requiring the school to submit a policy 
     statement.''.

     SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

     SEC. 924. STATE ADMINISTRATIVE EXPENSES.

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

     SEC. 925. REGULATIONS.

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

     SEC. 926. PROHIBITIONS.

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

     SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

     SEC. 928. ACCOUNTS AND RECORDS.

       The second sentence of section 16(a) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ``at 
     all times be available'' and inserting ``be available at any 
     reasonable time''.

     SEC. 929. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       (a) Definitions.--Section 17(b) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(b)) is amended--
       (1) in paragraph (15)(B)(iii), by inserting ``of not more 
     than 90 days'' after ``accommodation''; and
       (2) in paragraph (16)--
       (A) in subparagraph (A), by adding ``and'' at the end; and
       (B) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (C).
       (b) Secretary's Promotion of WIC.--Section 17(c) of the Act 
     is amended by striking paragraph (5).
       (c) Eligible Participants.--Section 17(d) of the Act is 
     amended by striking paragraph (4).
       (d) Nutrition Education and Drug Abuse Education.--Section 
     17(e) of the Act is amended--
       (1) in the first sentence of paragraph (1), by striking 
     ``shall ensure'' and all that follows through ``is provided'' 
     and inserting ``shall provide nutrition education and may 
     provide drug abuse education'';
       (2) in paragraph (2), by striking the third sentence;
       (3) by striking paragraph (4) and inserting the following:
       ``(4) Information.--The State agency may provide a local 
     agency with materials describing other programs for which 
     participants in the program may be eligible.'';
       (4) in paragraph (5), by striking ``The State'' and all 
     that follows through ``local agency shall'' and inserting ``A 
     local agency may''; and
       (5) by striking paragraph (6).
       (e) State Plan.--Section 17(f) of the Act is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by striking ``annually to the Secretary, by a date 
     specified by the Secretary, a'' and inserting ``to the 
     Secretary, by a date specified by the Secretary, an 
     initial''; and
       (ii) by adding at the end the following: ``After submitting 
     the initial plan, a State shall only be required to submit to 
     the Secretary for approval a substantive change in the 
     plan.'';
       (B) in subparagraph (C)--
       (i) by striking clause (iii) and inserting the following:
       ``(iii) a plan to coordinate operations under the program 
     with other services or programs that may benefit participants 
     in, and applicants for, the program;'';
       (ii) in clause (vi), by inserting after ``in the State'' 
     the following: ``(including a plan to improve access to the 
     program for participants and prospective applicants who are 
     employed, or who reside in rural areas)'';
       (iii) by striking clauses (vii), (ix), (x), and (xii);
       (iv) in clause (xiii), by striking ``may require'' and 
     inserting ``may reasonably require''; and
       (v) by redesignating clauses (viii), (xi), and (xiii), as 
     so amended, as clauses (vii), (viii), and (ix), respectively;
       (C) by striking subparagraph (D); and
       (D) by redesignating subparagraph (E) as subparagraph (D);
       (2) by striking paragraphs (2), (6), (8), (20), (22), and 
     (24);
       (3) in the second sentence of paragraph (5), by striking 
     ``at all times be available'' and inserting ``be available at 
     any reasonable time'';
       (4) in paragraph (9)(B), by striking the second sentence;
       (5) in the first sentence of paragraph (11), by striking 
     ``, including standards that will ensure sufficient State 
     agency staff'';
       (6) in paragraph (12), by striking the third sentence;
       (7) in paragraph (14), by striking ``shall'' and inserting 
     ``may'';
       (8) in paragraph (17), by striking ``and to accommodate'' 
     and all that follows through ``facilities'';
       (9) in paragraph (19), by striking ``shall'' and inserting 
     ``may''; and
       (10) by redesignating paragraphs (3), (4), (5), (7), (9) 
     through (19), (21), and (23), as so amended, as paragraphs 
     (2), (3), (4), (5), (6) through (16), (17), and (18), 
     respectively.
       (f) Information.--Section 17(g) of the Act is amended--
       (1) in paragraph (5), by striking ``the report required 
     under subsection (d)(4)'' and inserting ``reports on program 
     participant characteristics''; and
       (2) by striking paragraph (6).
       (g) Procurement of Infant Formula.--
       (1) In general.--Section 17(h) of the Act is amended--
       (A) in paragraph (4)(E), by striking ``and, on'' and all 
     that follows through ``(d)(4)'';
       (B) in paragraph (8)--
       (i) by striking subparagraphs (A), (C), and (M);
       (ii) in subparagraph (G)--

       (I) in clause (i), by striking ``(i)''; and
       (II) by striking clauses (ii) through (ix);

       (iii) in subparagraph (I), by striking ``Secretary--'' and 
     all that follows through ``(v) may'' and inserting 
     ``Secretary may'';
       (iv) by redesignating subparagraphs (B) and (D) through (L) 
     as subparagraphs (A) and (B) through (J), respectively;
       (v) in subparagraph (A)(i), as so redesignated, by striking 
     ``subparagraphs (C), (D), and (E)(iii), in carrying out 
     subparagraph (A),'' and inserting ``subparagraphs (B) and 
     (C)(iii),'';
       (vi) in subparagraph (B)(i), as so redesignated, by 
     striking ``subparagraph (B)'' each place it appears and 
     inserting ``subparagraph (A)''; and
       (vii) in subparagraph (C)(iii), as so redesignated, by 
     striking ``subparagraph (B)'' and inserting ``subparagraph 
     (A)''; and
       (C) in paragraph (10)(A), by striking ``shall'' and 
     inserting ``may''.
       (2) Application.--The amendments made by paragraph (1) 
     shall not apply to a contract for the procurement of infant 
     formula under section 17(h)(8) of the Act that is in effect 
     on the effective date of this subsection.
       (h) National Advisory Council on Maternal, Infant, and 
     Fetal Nutrition.--Section 17(k)(3) of the Act is amended by 
     striking ``Secretary shall designate'' and inserting 
     ``Council shall elect''.
       (i) Completed Study; Community College Demonstration; 
     Grants for Information and Data System.--Section 17 of the 
     Act is amended by striking subsections (n), (o), and (p).
       (j) Disqualification of Vendors Who Are Disqualified Under 
     the Food Stamp Program.--Section 17 of the Act, as so 
     amended, is further amended by adding at the end the 
     following:
       ``(n) Disqualification of Vendors Who Are Disqualified 
     Under the Food Stamp Program.--
       ``(1) In general.--The Secretary shall issue regulations 
     providing criteria for the disqualification under this 
     section of an approved vendor that is disqualified from 
     accepting benefits under the food stamp program established 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
       ``(2) Terms.--A disqualification under paragraph (1)--
       ``(A) shall be for the same period as the disqualification 
     from the program referred to in paragraph (1);
       ``(B) may begin at a later date than the disqualification 
     from the program referred to in paragraph (1); and
       ``(C) shall not be subject to judicial or administrative 
     review.''.

     SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

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

     SEC. 931. NUTRITION EDUCATION AND TRAINING.

       (a) Findings.--Section 19 of the Child Nutrition Act of 
     1966 (42 U.S.C. 1788) is amended--
       (1) in subsection (a), by striking ``that--'' and all that 
     follows through the period at the end and inserting ``that 
     effective dissemination of scientifically valid information 
     to children participating or eligible to participate in the 
     school 

[[Page H15379]]
     lunch and related child nutrition programs should be encouraged.''; and
       (2) in subsection (b), by striking ``encourage'' and all 
     that follows through ``establishing'' and inserting 
     ``establish''.
       (b) Use of Funds.--Section 19(f) of the Act is amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (B); and
       (B) in subparagraph (A)--
       (i) by striking ``(A)'';
       (ii) by striking clauses (ix) through (xix);
       (iii) by redesignating clauses (i) through (viii) and (xx) 
     as subparagraphs (A) through (H) and (I), respectively; and
       (iv) in subparagraph (H), as so redesignated, by inserting 
     ``and'' at the end;
       (2) by striking paragraphs (2) and (4); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (c) Accounts, Records, and Reports.--The second sentence of 
     section 19(g)(1) of the Act is amended by striking ``at all 
     times be available'' and inserting ``be available at any 
     reasonable time''.
       (d) State Coordinators for Nutrition; State Plan.--Section 
     19(h) of the Act is amended--
       (1) in the second sentence of paragraph (1)--
       (A) by striking ``as provided in paragraph (2) of this 
     subsection''; and
       (B) by striking ``as provided in paragraph (3) of this 
     subsection'';
       (2) in paragraph (2), by striking the second and third 
     sentences; and
       (3) by striking paragraph (3).
       (e) Authorization of Appropriations.--Section 19(i) of the 
     Act is amended--
       (1) in the first sentence of paragraph (2)(A), by striking 
     ``and each succeeding fiscal year'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (3) by inserting after paragraph (2) the following:
       ``(3) Fiscal years 1997 through 2002.--
       ``(A) In general.--There are authorized to be appropriated 
     to carry out this section $10,000,000 for each of fiscal 
     years 1997 through 2002.
       ``(B) Grants.--
       ``(i) In general.--Grants to each State from the amounts 
     made available under subparagraph (A) shall be based on a 
     rate of 50 cents for each child enrolled in schools or 
     institutions within the State, except that no State shall 
     receive an amount less than $75,000 per fiscal year.
       ``(ii) Insufficient funds.--If the amount made available 
     for any fiscal year is insufficient to pay the amount to 
     which each State is entitled under clause (i), the amount of 
     each grant shall be ratably reduced.''.
       (f) Assessment.--Section 19 of the Act is amended by 
     striking subsection (j).
       (g) Effective Date.--The amendments made by subsection (e) 
     shall become effective on October 1, 1996.

     SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

       Section 21 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1790) is repealed.
            TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

     SEC. 1001. SHORT TITLE.

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

     SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

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

     SEC. 1012. DEFINITION OF COUPON.

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

     SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

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

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

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

     SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

     SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

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

     SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

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

     SEC. 1018. EARNINGS OF STUDENTS.

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

     SEC. 1019. ENERGY ASSISTANCE.

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

     SEC. 1020. DEDUCTIONS FROM INCOME.

       (a) In General.--Section 5 of the Food Stamp Act of 1977 (7 
     U.S.C. 2014) is amended by striking subsection (e) and 
     inserting the following:
       ``(e) Deductions From Income.--
       ``(1) Standard deduction.--The Secretary shall allow a 
     standard deduction for each household in the 48 contiguous 
     States and the District of Columbia, Alaska, Hawaii, Guam, 
     and the Virgin Islands of the United States of $134, $229, 
     $189, $269, and $118, respectively.
       ``(2) Earned income deduction.--
       ``(A) Definition of earned income.--In this paragraph, the 
     term `earned income' does not include income excluded by 
     subsection (d) or any portion of income earned under a work 
     supplementation or support program, as defined under section 
     16(b), that is attributable to public assistance.
       ``(B) Deduction.--Except as provided in subparagraph (C), a 
     household with earned income shall be allowed a deduction of 
     20 percent of all earned income (other than income excluded 
     by subsection (d)) to compensate for taxes, other mandatory 
     deductions from salary, and work expenses.
       ``(C) Exception.--The deduction described in subparagraph 
     (B) shall not be allowed with respect to determining an 
     overissuance due to the failure of a household to report 
     earned income in a timely manner.
       ``(3) Dependent care deduction.--
       ``(A) In general.--A household shall be entitled, with 
     respect to expenses (other than excluded expenses described 
     in subparagraph (B)) for dependent care, to a dependent care 
     deduction, the maximum allowable level of which shall be $200 
     per month for each dependent child under 2 years of age and 
     $175 per month for each other dependent, for the actual cost 
     of payments necessary for the care of a dependent if the care 
     enables a household member to accept or continue employment, 
     or training or education that is preparatory for employment.
       ``(B) Excluded expenses.--The excluded expenses referred to 
     in subparagraph (A) are--
       ``(i) expenses paid on behalf of the household by a third 
     party;
       ``(ii) amounts made available and excluded for the expenses 
     referred to in subparagraph (A) under subsection (d)(3); and
       ``(iii) expenses that are paid under section 6(d)(4).
       ``(4) Deduction for child support payments.--
       ``(A) In general.--A household shall be entitled to a 
     deduction for child support payments made by a household 
     member to or for an individual who is not a member of the 
     household if 

[[Page H15380]]
     the household member is legally obligated to make the payments.
       ``(B) Methods for determining amount.--The Secretary may 
     prescribe by regulation the methods, including calculation on 
     a retrospective basis, that a State agency shall use to 
     determine the amount of the deduction for child support 
     payments.
       ``(5) Homeless shelter allowance.--A State agency may 
     develop a standard homeless shelter allowance, which shall 
     not exceed $139 per month, for such expenses as may 
     reasonably be expected to be incurred by households in which 
     all members are homeless individuals but are not receiving 
     free shelter throughout the month. A State agency that 
     develops the allowance may use the allowance in determining 
     eligibility and allotments for the households, except that 
     the State agency may prohibit the use of the allowance for 
     households with extremely low shelter costs.
       ``(6) Excess medical expense deduction.--
       ``(A) In general.--A household containing an elderly or 
     disabled member shall be entitled, with respect to expenses 
     other than expenses paid on behalf of the household by a 
     third party, to an excess medical expense deduction for the 
     portion of the actual costs of allowable medical expenses, 
     incurred by the elderly or disabled member, exclusive of 
     special diets, that exceeds $35 per month.
       ``(B) Method of claiming deduction.--
       ``(i) In general.--A State agency shall offer an eligible 
     household under subparagraph (A) a method of claiming a 
     deduction for recurring medical expenses that are initially 
     verified under the excess medical expense deduction in lieu 
     of submitting information or verification on actual expenses 
     on a monthly basis.
       ``(ii) Method.--The method described in clause (i) shall--

       ``(I) be designed to minimize the burden for the eligible 
     elderly or disabled household member choosing to deduct the 
     recurrent medical expenses of the member pursuant to the 
     method;
       ``(II) rely on reasonable estimates of the expected medical 
     expenses of the member for the certification period 
     (including changes that can be reasonably anticipated based 
     on available information about the medical condition of the 
     member, public or private medical insurance coverage, and the 
     current verified medical expenses incurred by the member); 
     and
       ``(III) not require further reporting or verification of a 
     change in medical expenses if such a change has been 
     anticipated for the certification period.

       ``(7) Excess shelter expense deduction.--
       ``(A) In general.--A household shall be entitled, with 
     respect to expenses other than expenses paid on behalf of the 
     household by a third party, to an excess shelter expense 
     deduction to the extent that the monthly amount expended by a 
     household for shelter exceeds an amount equal to 50 percent 
     of monthly household income after all other applicable 
     deductions have been allowed.
       ``(B) Maximum amount of deduction.--In the case of a 
     household that does not contain an elderly or disabled 
     individual, the excess shelter expense deduction shall not 
     exceed--
       ``(i) in the 48 contiguous States and the District of 
     Columbia, $247 per month; and
       ``(ii) in Alaska, Hawaii, Guam, and the Virgin Islands of 
     the United States, $429, $353, $300, and $182 per month, 
     respectively.
       ``(C) Standard utility allowance.--
       ``(i) In general.--In computing the excess shelter expense 
     deduction, a State agency may use a standard utility 
     allowance in accordance with regulations promulgated by the 
     Secretary, except that a State agency may use an allowance 
     that does not fluctuate within a year to reflect seasonal 
     variations.
       ``(ii) Restrictions on heating and cooling expenses.--An 
     allowance for a heating or cooling expense may not be used in 
     the case of a household that--

       ``(I) does not incur a heating or cooling expense, as the 
     case may be;
       ``(II) does incur a heating or cooling expense but is 
     located in a public housing unit that has central utility 
     meters and charges households, with regard to the expense, 
     only for excess utility costs; or
       ``(III) shares the expense with, and lives with, another 
     individual not participating in the food stamp program, 
     another household participating in the food stamp program, or 
     both, unless the allowance is prorated between the household 
     and the other individual, household, or both.

       ``(iii) Mandatory allowance.--

       ``(I) In general.--A State agency may make the use of a 
     standard utility allowance mandatory for all households with 
     qualifying utility costs if--

       ``(aa) the State agency has developed 1 or more standards 
     that include the cost of heating and cooling and 1 or more 
     standards that do not include the cost of heating and 
     cooling; and
       ``(bb) the Secretary finds that the standards will not 
     result in an increased cost to the Secretary.

       ``(II) Household election.--A State agency that has not 
     made the use of a standard utility allowance mandatory under 
     subclause (I) shall allow a household to switch, at the end 
     of a certification period, between the standard utility 
     allowance and a deduction based on the actual utility costs 
     of the household.

       ``(iv) Availability of allowance to recipients of energy 
     assistance.--

       ``(I) In general.--Subject to subclause (II), if a State 
     agency elects to use a standard utility allowance that 
     reflects heating or cooling costs, the standard utility 
     allowance shall be made available to households receiving a 
     payment, or on behalf of which a payment is made, under the 
     Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 
     et seq.) or other similar energy assistance program, if the 
     household still incurs out-of-pocket heating or cooling 
     expenses in excess of any assistance paid on behalf of the 
     household to an energy provider.
       ``(II) Separate allowance.--A State agency may use a 
     separate standard utility allowance for households on behalf 
     of which a payment described in subclause (I) is made, but 
     may not be required to do so.
       ``(III) States not electing to use separate allowance.--A 
     State agency that does not elect to use a separate allowance 
     but makes a single standard utility allowance available to 
     households incurring heating or cooling expenses (other than 
     a household described in subclause (I) or (II) of 
     subparagraph (C)(ii)) may not be required to reduce the 
     allowance due to the provision (directly or indirectly) of 
     assistance under the Low-Income Home Energy Assistance Act of 
     1981 (42 U.S.C. 8621 et seq.).
       ``(IV) Proration of assistance.--For the purpose of the 
     food stamp program, assistance provided under the Low-Income 
     Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) 
     shall be considered to be prorated over the entire heating or 
     cooling season for which the assistance was provided.''.

       (b) Conforming Amendment.--Section 11(e)(3) of the Act (7 
     U.S.C. 2020(e)(3)) is amended by striking ``. Under rules 
     prescribed'' and all that follows through ``verifies higher 
     expenses''.

     SEC. 1021. VEHICLE ALLOWANCE.

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

     SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED 
                   AS INCOME.

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

     SEC. 1023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PROGRAM 
                   REQUIREMENTS.

       Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(b)(1)) is amended--
       (1) in clause (i), by striking ``six months'' and inserting 
     ``1 year''; and
       (2) in clause (ii), by striking ``1 year'' and inserting 
     ``2 years''.

     SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

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

     SEC. 1025. DISQUALIFICATION.

       (a) In General.--Section 6(d) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless 
     otherwise exempted by the provisions'' and all that follows 
     through the end of paragraph (1) and inserting the following:
       ``(d) Conditions of Participation.--
       ``(1) Work requirements.--
       ``(A) In general.--No physically and mentally fit 
     individual over the age of 15 and under the age of 60 shall 
     be eligible to participate in the food stamp program if the 
     individual--
       ``(i) refuses, at the time of application and every 12 
     months thereafter, to register for employment in a manner 
     prescribed by the Secretary;
       ``(ii) refuses without good cause to participate in an 
     employment and training program under paragraph (4), to the 
     extent required by the State agency;
       ``(iii) refuses without good cause to accept an offer of 
     employment, at a site or plant not subject to a strike or 
     lockout at the time of the refusal, at a wage not less than 
     the higher of--

       ``(I) the applicable Federal or State minimum wage; or
       ``(II) 80 percent of the wage that would have governed had 
     the minimum hourly rate under section 6(a)(1) of the Fair 
     Labor Standards Act 

[[Page H15381]]
     of 1938 (29 U.S.C. 206(a)(1)) been applicable to the offer of 
     employment;

       ``(iv) refuses without good cause to provide a State agency 
     with sufficient information to allow the State agency to 
     determine the employment status or the job availability of 
     the individual;
       ``(v) voluntarily and without good cause--

       ``(I) quits a job; or
       ``(II) reduces work effort and, after the reduction, the 
     individual is working less than 30 hours per week; or

       ``(vi) fails to comply with section 20.
       ``(B) Household ineligibility.--If an individual who is the 
     head of a household becomes ineligible to participate in the 
     food stamp program under subparagraph (A), the household 
     shall, at the option of the State agency, become ineligible 
     to participate in the food stamp program for a period, 
     determined by the State agency, that does not exceed the 
     lesser of--
       ``(i) the duration of the ineligibility of the individual 
     determined under subparagraph (C); or
       ``(ii) 180 days.
       ``(C) Duration of ineligibility.--
       ``(i) First violation.--The first time that an individual 
     becomes ineligible to participate in the food stamp program 
     under subparagraph (A), the individual shall remain 
     ineligible until the later of--

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 1 month after the date the 
     individual became ineligible; or
       ``(III) a date determined by the State agency that is not 
     later than 3 months after the date the individual became 
     ineligible.

       ``(ii) Second violation.--The second time that an 
     individual becomes ineligible to participate in the food 
     stamp program under subparagraph (A), the individual shall 
     remain ineligible until the later of--

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 3 months after the date the 
     individual became ineligible; or
       ``(III) a date determined by the State agency that is not 
     later than 6 months after the date the individual became 
     ineligible.

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

       ``(I) the date the individual becomes eligible under 
     subparagraph (A);
       ``(II) the date that is 6 months after the date the 
     individual became ineligible;
       ``(III) a date determined by the State agency; or
       ``(IV) at the option of the State agency, permanently.

       ``(D) Administration.--
       ``(i) Good cause.--The Secretary shall determine the 
     meaning of good cause for the purpose of this paragraph.
       ``(ii) Voluntary quit.--The Secretary shall determine the 
     meaning of voluntarily quitting and reducing work effort for 
     the purpose of this paragraph.
       ``(iii) Determination by state agency.--

       ``(I) In general.--Subject to subclause (II) and clauses 
     (i) and (ii), a State agency shall determine--

       ``(aa) the meaning of any term in subparagraph (A);
       ``(bb) the procedures for determining whether an individual 
     is in compliance with a requirement under subparagraph (A); 
     and
       ``(cc) whether an individual is in compliance with a 
     requirement under subparagraph (A).

       ``(II) Not less restrictive.--A State agency may not 
     determine a meaning, procedure, or determination under 
     subclause (I) to be less restrictive than a comparable 
     meaning, procedure, or determination under a State program 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.).

       ``(iv) Strike against the government.--For the purpose of 
     subparagraph (A)(v), an employee of the Federal Government, a 
     State, or a political subdivision of a State, who is 
     dismissed for participating in a strike against the Federal 
     Government, the State, or the political subdivision of the 
     State shall be considered to have voluntarily quit without 
     good cause.
       ``(v) Selecting a head of household.--

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

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

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

       (b) Conforming Amendment.--
       (1) The second sentence of section 17(b)(2) of the Act (7 
     U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and 
     inserting ``6(d)(1)(A)(i)''.
       (2) Section 20 of the Act (7 U.S.C. 2029) is amended by 
     striking subsection (f) and inserting the following:
       ``(f) Disqualification.--An individual or a household may 
     become ineligible under section 6(d)(1) to participate in the 
     food stamp program for failing to comply with this 
     section.''.

     SEC. 1026. CARETAKER EXEMPTION.

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

     SEC. 1027. EMPLOYMENT AND TRAINING.

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

[[Page H15382]]
     shall receive not less than $50,000 in each fiscal year.''.
       (c) Additional Matching Funds.--Section 16(h)(2) of the Act 
     (7 U.S.C. 2025(h)(2)) is amended by inserting before the 
     period at the end the following: ``, including the costs for 
     case management and casework to facilitate the transition 
     from economic dependency to self-sufficiency through work''.
       (d) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h)) 
     is amended--
       (1) in paragraph (5)--
       (A) by striking ``(5)(A) The Secretary'' and inserting 
     ``(5) The Secretary''; and
       (B) by striking subparagraph (B); and
       (2) by striking paragraph (6).

     SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

       (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 
     U.S.C. 2015) is amended--
       (1) by redesignating subsection (i), as added by section 
     107, as subsection (p); and
       (2) by inserting after subsection (h) the following:
       ``(i) Comparable Treatment for Disqualification.--
       ``(1) In general.--If a disqualification is imposed on a 
     member of a household for a failure of the member to perform 
     an action required under a Federal, State, or local law 
     relating to a means-tested public assistance program, the 
     State agency may impose the same disqualification on the 
     member of the household under the food stamp program.
       ``(2) Rules and procedures.--If a disqualification is 
     imposed under paragraph (1) for a failure of an individual to 
     perform an action required under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), the State agency 
     may use the rules and procedures that apply under part A of 
     title IV of the Act to impose the same disqualification under 
     the food stamp program.
       ``(3) Application after disqualification period.--A member 
     of a household disqualified under paragraph (1) may, after 
     the disqualification period has expired, apply for benefits 
     under this Act and shall be treated as a new applicant, 
     except that a prior disqualification under subsection (d) 
     shall be considered in determining eligibility.''.
       (b) State Plan Provisions.--Section 11(e) of the Act (7 
     U.S.C. 2020(e)) is amended--
       (1) in paragraph (24), by striking ``and'' at the end;
       (2) in paragraph (25), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(26) the guidelines the State agency uses in carrying out 
     section 6(i); and''.
       (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 
     U.S.C. 2015(d)(2)(A)) is amended by striking ``that is 
     comparable to a requirement of paragraph (1)''.

     SEC. 1029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD 
                   STAMP BENEFITS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as 
     amended by section 1028, is further amended by inserting 
     after subsection (i) the following:
       ``(j) Disqualification for Receipt of Multiple Food Stamp 
     Benefits.--An individual shall be ineligible to participate 
     in the food stamp program as a member of any household for a 
     10-year period if the individual is found by a State agency 
     to have made, or is convicted in a Federal or State court of 
     having made, a fraudulent statement or representation with 
     respect to the identity or place of residence of the 
     individual in order to receive multiple benefits 
     simultaneously under the food stamp program.''.

     SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

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

     SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

     SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT 
                   ARREARS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as 
     amended by section 1031, is further amended by inserting 
     after subsection (m) the following:
       ``(n) Disqualification for Child Support Arrears.--
       ``(1) In general.--No individual shall be eligible to 
     participate in the food stamp program as a member of any 
     household during any month that the individual is delinquent 
     in any payment due under a court order for the support of a 
     child of the individual.
       ``(2) Exceptions.--Paragraph (1) shall not apply if--
       ``(A) a court is allowing the individual to delay payment; 
     or
       ``(B) the individual is complying with a payment plan 
     approved by a court or the State agency designated under part 
     D of title IV of the Social Security Act (42 U.S.C. 651 et 
     seq.) to provide support for the child of the individual.''.

     SEC. 1033. WORK REQUIREMENT.

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

[[Page H15383]]
     the Committee on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       ``(5) Subsequent eligibility.--
       ``(A) In general.--Paragraph (2) shall cease to apply to an 
     individual if, during a 30-day period, the individual--
       ``(i) works 80 or more hours;
       ``(ii) participates in and complies with the requirements 
     of a work program for 80 or more hours, as determined by a 
     State agency; or
       ``(iii) participates in a program under section 20 or a 
     comparable program established by a State or political 
     subdivision of a State.
       ``(B) Limitation.--During the subsequent 12-month period, 
     the individual shall be eligible to participate in the food 
     stamp program for not more than 4 months during which the 
     individual does not--
       ``(i) work 20 hours or more per week, averaged monthly;
       ``(ii) participate in and comply with the requirements of a 
     work program for 20 hours or more per week, as determined by 
     the State agency; or
       ``(iii) participate in a program under section 20 or a 
     comparable program established by a State or political 
     subdivision of a State.''.
       (b) Transition Provision.--Prior to 1 year after the date 
     of enactment of this Act, the term ``preceding 12-month 
     period'' in section 6(o) of the Food Stamp Act of 1977, as 
     amended by subsection (a), means the preceding period that 
     begins on the date of enactment of this Act.

     SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

     SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

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

     SEC. 1036. BENEFITS ON RECERTIFICATION.

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

     SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED 
                   HOUSEHOLDS.

       Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Optional combined allotment for expedited 
     households.--A State agency may provide to an eligible 
     household applying after the 15th day of a month, in lieu of 
     the initial allotment of the household and the regular 
     allotment of the household for the following month, an 
     allotment that is equal to the total amount of the initial 
     allotment and the first regular allotment. The allotment 
     shall be provided in accordance with section 11(e)(3) in the 
     case of a household that is not entitled to expedited service 
     and in accordance with paragraphs (3) and (9) of section 
     11(e) in the case of a household that is entitled to 
     expedited service.''.

     SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC 
                   ASSISTANCE PROGRAMS.

       Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is 
     amended by striking subsection (d) and inserting the 
     following:
       ``(d) Reduction of Public Assistance Benefits.--
       ``(1) In general.--If the benefits of a household are 
     reduced under a Federal, State, or local law relating to a 
     means-tested public assistance program for the failure of a 
     member of the household to perform an action required under 
     the law or program, for the duration of the reduction--
       ``(A) the household may not receive an increased allotment 
     as the result of a decrease in the income of the household to 
     the extent that the decrease is the result of the reduction; 
     and
       ``(B) the State agency may reduce the allotment of the 
     household by not more than 25 percent.
       ``(2) Rules and procedures.--If the allotment of a 
     household is reduced under this subsection for a failure to 
     perform an action required under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), the State agency 
     may use the rules and procedures that apply under part A of 
     title IV of the Act to reduce the allotment under the food 
     stamp program.''.

     SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

       Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is 
     amended by adding at the end the following:
       ``(f) Allotments for Households Residing in Centers.--
       ``(1) In general.--In the case of an individual who resides 
     in a center for the purpose of a drug or alcoholic treatment 
     program described in the last sentence of section 3(i), a 
     State agency may provide an allotment for the individual to--
       ``(A) the center as an authorized representative of the 
     individual for a period that is less than 1 month; and
       ``(B) the individual, if the individual leaves the center.
       ``(2) Direct payment.--A State agency may require an 
     individual referred to in paragraph (1) to designate the 
     center in which the individual resides as the authorized 
     representative of the individual for the purpose of receiving 
     an allotment.''.

     SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD 
                   STORES AND WHOLESALE FOOD CONCERNS.

       Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(a)(1)) is amended by adding at the end the following: 
     ``No retail food store or wholesale food concern of a type 
     determined by the Secretary, based on factors that include 
     size, location, and type of items sold, shall be approved to 
     be authorized or reauthorized for participation in the food 
     stamp program unless an authorized employee of the Department 
     of Agriculture, a designee of the Secretary, or, if 
     practicable, an official of the State or local government 
     designated by the Secretary has visited the store or concern 
     for the purpose of determining whether the store or concern 
     should be approved or reauthorized, as appropriate.''.

     SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

       Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(a)) is amended by adding at the end the following:
       ``(3) Authorization periods.--The Secretary shall establish 
     specific time periods during which authorization to accept 
     and redeem coupons, or to redeem benefits through an 
     electronic benefit transfer system, shall be valid under the 
     food stamp program.''.

     SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR 
                   AUTHORIZATION.

       Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(c)) is amended--
       (1) in the first sentence, by inserting ``, which may 
     include relevant income and sales tax filing documents,'' 
     after ``submit information''; and
       (2) by inserting after the first sentence the following: 
     ``The regulations may require retail food stores and 
     wholesale food concerns to provide written authorization for 
     the Secretary to verify all relevant tax filings with 
     appropriate agencies and to obtain corroborating 
     documentation from other sources so that the accuracy of 
     information provided by the stores and concerns may be 
     verified.''.

     SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO MEET 
                   AUTHORIZATION CRITERIA.

       Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(d)) is amended by adding at the end the following: ``A 
     retail food store or wholesale 

[[Page H15384]]
     food concern that is denied approval to accept and redeem coupons 
     because the store or concern does not meet criteria for 
     approval established by the Secretary may not, for at least 6 
     months, submit a new application to participate in the 
     program. The Secretary may establish a longer time period 
     under the preceding sentence, including permanent 
     disqualification, that reflects the severity of the basis of 
     the denial.''.

     SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

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

     SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

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

     SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

       Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(e)(8)) is amended--
       (1) by striking ``that (A) such'' and inserting the 
     following: ``that--
       ``(A) the'';
       (2) by striking ``law, (B) notwithstanding'' and inserting 
     the following: ``law;
       ``(B) notwithstanding'';
       (3) by striking ``Act, and (C) such'' and inserting the 
     following: ``Act;
       ``(C) the''; and
       (4) by adding at the end the following:
       ``(D) notwithstanding any other provision of law, the 
     address, social security number, and, if available, 
     photograph of any member of a household shall be made 
     available, on request, to any Federal, State, or local law 
     enforcement officer if the officer furnishes the State agency 
     with the name of the member and notifies the agency that--
       ``(i) the member--

       ``(I) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, for a crime (or attempt to 
     commit a crime) that, under the law of the place the member 
     is fleeing, is a felony (or, in the case of New Jersey, a 
     high misdemeanor), or is violating a condition of probation 
     or parole imposed under Federal or State law; or
       ``(II) has information that is necessary for the officer to 
     conduct an official duty related to subclause (I);

       ``(ii) locating or apprehending the member is an official 
     duty; and
       ``(iii) the request is being made in the proper exercise of 
     an official duty; and
       ``(E) the safeguards shall not prevent compliance with 
     paragraph (16);''.

     SEC. 1047. EXPEDITED COUPON SERVICE.

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

     SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

       Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(e)(10)) is amended by inserting before the semicolon at 
     the end a period and the following: ``At the option of a 
     State, at any time prior to a fair hearing determination 
     under this paragraph, a household may withdraw, orally or in 
     writing, a request by the household for the fair hearing. If 
     the withdrawal request is an oral request, the State agency 
     shall provide a written notice to the household confirming 
     the withdrawal request and providing the household with an 
     opportunity to request a hearing''.

     SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS 
                   VERIFICATION SYSTEMS.

       Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
     amended--
       (1) in subsection (e)(18), as redesignated by section 
     1044(1)(D)--
       (A) by striking ``that information is'' and inserting ``at 
     the option of the State agency, that information may be''; 
     and
       (B) by striking ``shall be requested'' and inserting ``may 
     be requested''; and
       (2) by adding at the end the following:
       ``(p) State Verification Option.--Notwithstanding any other 
     provision of law, in carrying out the food stamp program, a 
     State agency shall not be required to use an income and 
     eligibility or an immigration status verification system 
     established under section 1137 of the Social Security Act (42 
     U.S.C. 1320b-7).''.

     SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY 
                   SUBMIT FALSIFIED APPLICATIONS.

       Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 
     2021(b)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) for a reasonable period of time to be determined by 
     the Secretary, including permanent disqualification, on the 
     knowing submission of an application for the approval or 
     reauthorization to accept and redeem coupons that contains 
     false information about a substantive matter that was a part 
     of the application.''.

     SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED 
                   UNDER THE WIC PROGRAM.

       Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is 
     amended by adding at the end the following:
       ``(g) Disqualification of Retailers Who Are Disqualified 
     Under the WIC Program.--
       ``(1) In general.--The Secretary shall issue regulations 
     providing criteria for the disqualification under this Act of 
     an approved retail food store and a wholesale food concern 
     that is disqualified from accepting benefits under the 
     special supplemental nutrition program for women, infants, 
     and children established under section 17 of the Child 
     Nutrition Act of 1966 (7 U.S.C. 1786).
       ``(2) Terms.--A disqualification under paragraph (1)--
       ``(A) shall be for the same length of time as the 
     disqualification from the program referred to in paragraph 
     (1);
       ``(B) may begin at a later date than the disqualification 
     from the program referred to in paragraph (1); and
       ``(C) notwithstanding section 14, shall not be subject to 
     judicial or administrative review.''.

     SEC. 1052. COLLECTION OF OVERISSUANCES.

       (a) Collection of Overissuances.--Section 13 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2022) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Collection of Overissuances.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, a State agency shall collect any overissuance of 
     coupons issued to a household by--
       ``(A) reducing the allotment of the household;
       ``(B) withholding amounts from unemployment compensation 
     from a member of the household under subsection (c);
       ``(C) recovering from Federal pay or a Federal income tax 
     refund under subsection (d); or
       ``(D) any other means.
       ``(2) Cost effectiveness.--Paragraph (1) shall not apply if 
     the State agency demonstrates 

[[Page H15385]]
     to the satisfaction of the Secretary that all of the means referred to 
     in paragraph (1) are not cost effective.
       ``(3) Maximum reduction absent fraud.--If a household 
     received an overissuance of coupons without any member of the 
     household being found ineligible to participate in the 
     program under section 6(b)(1) and a State agency elects to 
     reduce the allotment of the household under paragraph (1)(A), 
     the State agency shall not reduce the monthly allotment of 
     the household under paragraph (1)(A) by an amount in excess 
     of the greater of--
       ``(A) 10 percent of the monthly allotment of the household; 
     or
       ``(B) $10.
       ``(4) Procedures.--A State agency shall collect an 
     overissuance of coupons issued to a household under paragraph 
     (1) in accordance with the requirements established by the 
     State agency for providing notice, electing a means of 
     payment, and establishing a time schedule for payment.''; and
       (2) in subsection (d)--
       (A) by striking ``as determined under subsection (b) and 
     except for claims arising from an error of the State 
     agency,'' and inserting ``, as determined under subsection 
     (b)(1),''; and
       (B) by inserting before the period at the end the 
     following: ``or a Federal income tax refund as authorized by 
     section 3720A of title 31, United States Code''.
       (b) Conforming Amendments.--Section 11(e)(8) of the Act (7 
     U.S.C. 2020(e)(8)) is amended--
       (1) by striking ``and excluding claims'' and all that 
     follows through ``such section''; and
       (2) by inserting before the semicolon at the end the 
     following: ``or a Federal income tax refund as authorized by 
     section 3720A of title 31, United States Code''.
       (c) Retention Rate.--Section 16(a) of the Act (7 U.S.C. 
     2025(a)) is amended by striking ``25 percent during the 
     period beginning October 1, 1990'' and all that follows 
     through ``error of a State agency'' and inserting the 
     following: ``25 percent of the overissuances collected by the 
     State agency under section 13, except those overissuances 
     arising from an error of the State agency''.

     SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM 
                   REQUIREMENTS PENDING ADMINISTRATIVE AND 
                   JUDICIAL REVIEW.

       Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2023(a)) is amended--
       (1) by redesignating the first through seventeenth 
     sentences as paragraphs (1) through (17), respectively; and
       (2) by adding at the end the following:
       ``(18) Suspension of stores pending review.--
     Notwithstanding any other provision of this subsection, any 
     permanent disqualification of a retail food store or 
     wholesale food concern under paragraph (3) or (4) of section 
     12(b) shall be effective from the date of receipt of the 
     notice of disqualification. If the disqualification is 
     reversed through administrative or judicial review, the 
     Secretary shall not be liable for the value of any sales lost 
     during the disqualification period.''.

     SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

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

     SEC. 1055. LIMITATION OF FEDERAL MATCH.

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

     SEC. 1056. STANDARDS FOR ADMINISTRATION.

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

     SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

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

     SEC. 1058. WAIVER AUTHORITY.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) in subparagraph (A)--
       (A) by striking the second sentence; and
       (B) by striking ``benefits to eligible households, 
     including'' and inserting the following: ``benefits to 
     eligible households, and may waive any requirement of this 
     Act to the extent necessary for the project to be conducted.
       ``(B) Project requirements.--
       ``(i) Program goal.--The Secretary may not conduct a 
     project under subparagraph (A) unless the project is 
     consistent with the goal of the food stamp program of 
     providing food assistance to raise levels of nutrition among 
     low-income individuals.
       ``(ii) Permissible projects.--The Secretary may conduct a 
     project under subparagraph (A) to--

       ``(I) improve program administration;
       ``(II) increase the self-sufficiency of food stamp 
     recipients;
       ``(III) test innovative welfare reform strategies; and
       ``(IV) allow greater conformity with the rules of other 
     programs than would be allowed but for this paragraph.

       ``(iii) Impermissible projects.--The Secretary may not 
     conduct a project under subparagraph (A) that--

       ``(I) involves the payment of the value of an allotment in 
     the form of cash, unless the project was approved prior to 
     the date of enactment of this subparagraph;
       ``(II) substantially transfers funds made available under 
     this Act to services or benefits provided primarily through 
     another public assistance program; or

       ``(III) is not limited to a specific time period.

       ``(iv) Additional included projects.--Pilot or experimental 
     projects may include''.

     SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

       Section 17(b)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(B)), as amended by section 1058, is further 
     amended--
       (1) in clause (iv), by striking ``coupons. Any pilot'' and 
     inserting the following: ``coupons.
       ``(v) Cash payment pilot projects.--Any pilot''; and
     
[[Page H15386]]

       (2) in clause (v), as so amended, by striking ``1995'' and 
     inserting ``2002''.

     SEC. 1060. RESPONSE TO WAIVERS.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)), as amended by section 1058, is further amended 
     by adding at the end the following:
       ``(D) Response to waivers.--
       ``(i) Response.--Not later than 60 days after the date of 
     receiving a request for a waiver under subparagraph (A), the 
     Secretary shall provide a response that--

       ``(I) approves the waiver request;
       ``(II) denies the waiver request and explains any 
     modification needed for approval of the waiver request;
       ``(III) denies the waiver request and explains the grounds 
     for the denial; or
       ``(IV) requests clarification of the waiver request.

       ``(ii) Failure to respond.--If the Secretary does not 
     provide a response in accordance with clause (i), the waiver 
     shall be considered approved, unless the approval is 
     specifically prohibited by this Act.
       ``(iii) Notice of denial.--On denial of a waiver request 
     under clause (i)(III), the Secretary shall provide a copy of 
     the waiver request and a description of the reasons for the 
     denial to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate.''.

     SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

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

     SEC. 1062. ADJUSTABLE FOOD STAMP CAP.

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

     SEC. 1063. REAUTHORIZATION OF PUERTO RICO NUTRITION 
                   ASSISTANCE PROGRAM.

       The first sentence of section 19(a)(1)(A) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking 
     ``$974,000,000'' and all that follows through ``fiscal year 
     1995'' and inserting ``$1,143,000,000 for each of fiscal 
     years 1995 and 1996, $1,174,000,000 for fiscal year 1997, 
     $1,204,000,000 for fiscal year 1998, $1,236,000,000 for 
     fiscal year 1999, $1,268,000,000 for fiscal year 2000, 
     $1,301,000,000 for fiscal year 2001, and $1,335,000,000 for 
     fiscal year 2002''.

     SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.

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

     ``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

       ``(a) Definition of Federal Costs.--In this section, the 
     term `Federal costs' does not include any Federal costs 
     incurred under section 17.
       ``(b) Election.--Subject to subsection (d), a State may 
     elect to carry out a Simplified Food Stamp Program (referred 
     to in this section as a `Program'), statewide or in a 
     political subdivision of the State, in accordance with this 
     section.
       ``(c) Operation of Program.--If a State elects to carry out 
     a Program, within the State or a political subdivision of the 
     State--
       ``(1) a household in which all members receive assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) shall 
     automatically be eligible to participate in the Program; and
       ``(2) subject to subsection (f), benefits under the Program 
     shall be determined under rules and procedures established by 
     the State under--
       ``(A) a State program funded under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.);
       ``(B) the food stamp program (other than section 25); or
       ``(C) a combination of a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) and the food stamp program (other than section 25).
       ``(d) Approval of Program.--
       ``(1) State plan.--A State agency may not operate a Program 
     unless the Secretary approves a State plan for the operation 
     of the Program under paragraph (2).
       ``(2) Approval of plan.--The Secretary shall approve any 
     State plan to carry out a Program if the Secretary determines 
     that the plan--
       ``(A) complies with this section; and
       ``(B) contains sufficient documentation that the plan will 
     not increase Federal costs for any fiscal year.
       ``(e) Increased Federal Costs.--
       ``(1) Determination.--During each fiscal year and not later 
     than 90 days after the end of each fiscal year, the Secretary 
     shall determine whether a Program being carried out by a 
     State agency is increasing Federal costs under this Act above 
     the Federal costs incurred under the food stamp program in 
     operation in the State or political subdivision of the State 
     for the fiscal year prior to the implementation of the 
     Program, adjusted for any changes in--
       ``(A) participation;
       ``(B) the income of participants in the food stamp program 
     that is not attributable to public assistance; and
     
[[Page H15387]]

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

     SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Food assistance.--The term `food assistance' means 
     assistance that may be used only to obtain food, as defined 
     in section 3(g).
       ``(2) State.--The term `State' means each of the 50 States, 
     the District of Columbia, Guam, and the Virgin Islands of the 
     United States.
       ``(b) Establishment.--The Secretary shall establish a 
     program to make grants to States in accordance with this 
     section to provide--
       ``(1) food assistance to needy individuals and families 
     residing in the State; and
       ``(2) funds for administrative costs incurred in providing 
     the assistance.
       ``(c) Election.--
       ``(1) In general.--A State may annually elect to 
     participate in the program established under subsection (b) 
     if the State--
       ``(A) has fully implemented an electronic benefit transfer 
     system that operates in the entire State;
       ``(B) has a payment error rate under section 16(c) that is 
     not more than 6 percent as announced most recently by the 
     Secretary; or
       ``(C) has a payment error rate in excess of 6 percent and 
     agrees to contribute non-Federal funds for the fiscal year of 
     the grant, for benefits and administration of the State's 
     food assistance program, the amount determined under 
     paragraph (2).
       ``(2) State mandatory contributions.--
       ``(A) In general.--In the case of a State that elects to 
     participate in the program under paragraph (1)(C), the State 
     shall agree to contribute, for a fiscal year, an amount equal 
     to--
       ``(A)(i) the benefits issued in the State; multiplied by
       ``(ii) the payment error rate of the State; minus
       ``(B)(i) the benefits issued in the State; multiplied by
       ``(ii) 6 percent.
       ``(B) Determination.--Notwithstanding sections 13 and 14, 
     the calculation of the contribution shall be based solely on 
     the determination of the Secretary of the payment error rate.
       ``(C) Data.--For purposes of implementing subparagraph (A) 
     for a fiscal year, the Secretary shall use the data for the 
     most recent fiscal year available.
       ``(3) Election limitation.--
       ``(A) Re-entering food stamp program.--A State that elects 
     to participate in the program under paragraph (1) may in a 
     subsequent year decline to elect to participate in the 
     program and instead participate in the food stamp program in 
     accordance with the other sections of this Act.
       ``(B) Limitation.--Subsequent to re-entering the food stamp 
     program under subparagraph (A), the State shall only be 
     eligible to participate in the food stamp program in 
     accordance with the other sections of this Act and shall not 
     be eligible to elect to participate in the program 
     established under subsection (b).
       ``(4) Program exclusive.--
       ``(A) In general.--A State that is participating in the 
     program established under subsection (b) shall not be subject 
     to, or receive any benefit under, this Act except as provided 
     in this section.
       ``(B) Contract with federal government.--Nothing in this 
     section shall prohibit a State from contracting with the 
     Federal Government for the provision of services or materials 
     necessary to carry out a program under this section.
       ``(d) Lead Agency.--A State desiring to receive a grant 
     under this section shall designate, in an application 
     submitted to the Secretary under subsection (e)(1), an 
     appropriate State agency responsible for the administration 
     of the program under this section as the lead agency.
       ``(e) Application and Plan.--
       ``(1) Application.--To be eligible to receive assistance 
     under this section, a State shall prepare and submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary shall by 
     regulation require, including--
       ``(A) an assurance that the State will comply with the 
     requirements of this section;
       ``(B) a State plan that meets the requirements of paragraph 
     (3); and
       ``(C) an assurance that the State will comply with the 
     requirements of the State plan under paragraph (3).
       ``(2) Annual plan.--The State plan contained in the 
     application under paragraph (1) shall be submitted for 
     approval annually.
       ``(3) Requirements of plan.--
       ``(A) Lead agency.--The State plan shall identify the lead 
     agency.
       ``(B) Use of block grant funds.--The State plan shall 
     provide that the State shall use the amounts provided to the 
     State for each fiscal year under this section--
       ``(i) to provide food assistance to needy individuals and 
     families residing in the State, other than residents of 
     institutions who are ineligible for food stamps under section 
     3(i); and
       ``(ii) to pay administrative costs incurred in providing 
     the assistance.
       ``(C) Groups served.--The State plan shall describe how and 
     to what extent the program will serve specific groups of 
     individuals and families and how the treatment will differ 
     from treatment under the food stamp program under the other 
     sections of this Act of the individuals and families, 
     including--
       ``(i) elderly individuals and families;
       ``(ii) migrants or seasonal farmworkers;
       ``(iii) homeless individuals and families;
       ``(iv) individuals and families who live in institutions 
     eligible under section 3(i);
       ``(v) individuals and families with earnings; and
       ``(vi) members of Indian tribes or tribal organizations.
       ``(D) Assistance for entire state.--The State plan shall 
     provide that benefits under this section shall be available 
     throughout the entire State.
       ``(E) Notice and hearings.--The State plan shall provide 
     that an individual or family who applies for, or receives, 
     assistance under this section shall be provided with notice 
     of, and an opportunity for a hearing on, any action under 
     this section that adversely affects the individual or family.
       ``(F) Assessment of Needs.--The State plan shall assess the 
     food and nutrition needs of needy persons residing in the 
     State.
       ``(G) Eligibility standards.--The State plan shall describe 
     the income, resource, and other eligibility standards that 
     are established for the receipt of assistance under this 
     section.
       ``(H) Disqualification of fleeing felons.--The State plan 
     shall provide for the disqualification of any individual who 
     would be disqualified from participating in the food stamp 
     program under section 6(k).
       ``(I) Disqualification for child support arrears.--The 
     State plan shall provide for the disqualification of any 
     individual who would be disqualified from participating in 
     the food stamp program under section 6(n).
       ``(J) Receiving benefits in more than 1 jurisdiction.--The 
     State plan shall establish a system for the exchange of 
     information with other States to verify the identity and 
     receipt of benefits by recipients.
     
[[Page H15388]]

       ``(K) Privacy.--The State plan shall provide for 
     safeguarding and restricting the use and disclosure of 
     information about any individual or family receiving 
     assistance under this section.
       ``(L) Other information.--The State plan shall contain such 
     other information as may be required by the Secretary.
       ``(4) Approval of application and plan.--The Secretary 
     shall approve an application and State plan that satisfies 
     the requirements of this section.
       ``(f) No individual or family entitlement to assistance.--
     Nothing in this section--
       ``(1) entitles any individual or family to assistance under 
     this section; or
       ``(2) limits the right of a State to impose additional 
     limitations or conditions on assistance under this section.
       ``(g) Benefits for Aliens.--
       ``(1) Eligibility.--No individual who is an alien shall be 
     eligible to receive benefits under a State plan approved 
     under subsection (e)(4) if the individual is not eligible to 
     participate in the food stamp program due to the alien status 
     of the individual.
       ``(2) Income.--The State plan shall provide that the income 
     of an alien shall be determined in accordance with section 
     5(i).
       ``(h) Employment and Training.--
       ``(1) Work requirements.--No individual or household shall 
     be eligible to receive benefits under a State plan funded 
     under this section if the individual or household is not 
     eligible to participate in the food stamp program under 
     subsection (d) or (o) of section 6.
       ``(2) Work programs.--Each State shall implement an 
     employment and training program in accordance with the terms 
     and conditions of section 6(d)(4) for individuals under the 
     program and shall be eligible to receive funding under 
     section 16(h).
       ``(i) Enforcement.--
       ``(1) Review of compliance with state plan.--The Secretary 
     shall review and monitor State compliance with this section 
     and the State plan approved under subsection (e)(4).
       ``(2) Noncompliance.--
       ``(A) In general.--If the Secretary, after reasonable 
     notice to a State and opportunity for a hearing, finds that--
       ``(i) there has been a failure by the State to comply 
     substantially with any provision or requirement set forth in 
     the State plan approved under subsection (e)(4); or
       ``(ii) in the operation of any program or activity for 
     which assistance is provided under this section, there is a 
     failure by the State to comply substantially with any 
     provision of this section;

     the Secretary shall notify the State of the finding and that 
     no further grants will be made to the State under this 
     section (or, in the case of noncompliance in the operation of 
     a program or activity, that no further grants to the State 
     will be made with respect to the program or activity) until 
     the Secretary is satisfied that there is no longer any 
     failure to comply or that the noncompliance will be promptly 
     corrected.
       ``(B) Other penalties.--In the case of a finding of 
     noncompliance made pursuant to subparagraph (A), the 
     Secretary may, in addition to, or in lieu of, imposing the 
     penalties described in subparagraph (A), impose other 
     appropriate penalties, including recoupment of money 
     improperly expended for purposes prohibited or not authorized 
     by this section and disqualification from the receipt of 
     financial assistance under this section.
       ``(C) Notice.--The notice required under subparagraph (A) 
     shall include a specific identification of any additional 
     penalty being imposed under subparagraph (B).
       ``(3) Issuance of regulations.--The Secretary shall 
     establish by regulation procedures for--
       ``(A) receiving, processing, and determining the validity 
     of complaints made to the Secretary concerning any failure of 
     a State to comply with the State plan or any requirement of 
     this section; and
       ``(B) imposing penalties under this section.
       ``(j) Grant.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall pay to a State that has an application approved by the 
     Secretary under subsection (e)(4) an amount that is equal to 
     the grant of the State under subsection (m) for the fiscal 
     year.
       ``(2) Method of Grant.--The Secretary shall make a grant to 
     a State for a fiscal year under this section by issuing 1 or 
     more letters of credit for the fiscal year, with necessary 
     adjustments on account of overpayments or underpayments, as 
     determined by the Secretary.
       ``(3) Spending of grants by state.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a grant to a State determined under subsection (m)(1) for a 
     fiscal year may be expended by the State only in the fiscal 
     year.
       ``(B) Carryover.--The State may reserve up to 10 percent of 
     a grant determined under subsection (m)(1) for a fiscal year 
     to provide assistance under this section in subsequent fiscal 
     years, except that the reserved funds may not exceed 30 
     percent of the total grant received under this section for a 
     fiscal year.
       ``(4) Food assistance and administrative expenditures.--In 
     each fiscal year, not more than 6 percent of the Federal and 
     State funds required to be expended by a State under this 
     section shall be used for administrative expenses.
       ``(5) Provision of food assistance.--A State may provide 
     food assistance under this section in any manner determined 
     appropriate by the State, such as electronic benefit transfer 
     limited to food purchases, coupons limited to food purchases, 
     or direct provision of commodities.
       ``(k) Quality Control.--Each State participating in the 
     program established under this section shall maintain a 
     system in accordance with, and shall be subject to section 
     16(c), including sanctions and eligibility for incentive 
     payment under section 16(c), adjusted for State specific 
     characteristics under regulations issued by the Secretary.
       ``(l) Nondiscrimination.--
       ``(1) In general.--The Secretary shall not provide 
     financial assistance for any program, project, or activity 
     under this section if any person with responsibilities for 
     the operation of the program, project, or activity 
     discriminates with respect to the program, project, or 
     activity because of race, religion, color, national origin, 
     sex, or disability.
       ``(2) Enforcement.--The powers, remedies, and procedures 
     set forth in title VI of the Civil Rights Act of 1964 (42 
     U.S.C. 2000d et seq.) may be used by the Secretary to enforce 
     paragraph (1).
       ``(m) Grant Calculation.--
       ``(1) State grant.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     from the amounts made available under section 18 for each 
     fiscal year, the Secretary shall provide a grant to each 
     State participating in the program established under this 
     section an amount that is equal to the sum of--
       ``(i) the greater of, as determined by the Secretary--

       ``(I) the total dollar value of all benefits issued under 
     the food stamp program established under this Act by the 
     State during fiscal year 1994; or
       ``(II) the average per fiscal year of the total dollar 
     value of all benefits issued under the food stamp program by 
     the State during each of fiscal years 1992 through 1994; and

       ``(ii) the greater of, as determined by the Secretary--

       ``(I) the total amount received by the State for 
     administrative costs under section 16(a) (not including any 
     adjustment under section 16(c)) for fiscal year 1994; or
       ``(II) the average per fiscal year of the total amount 
     received by the State for administrative costs under section 
     16(a) (not including any adjustment under section 16(c)) for 
     each of fiscal years 1992 through 1994.

       ``(B) Insufficient funds.--If the Secretary finds that the 
     total amount of grants to which States would otherwise be 
     entitled for a fiscal year under subparagraph (A) will exceed 
     the amount of funds that will be made available to provide 
     the grants for the fiscal year, the Secretary shall reduce 
     the grants made to States under this subsection, on a pro 
     rata basis, to the extent necessary.
       ``(2) Reduction.--The Secretary shall reduce the grant of a 
     State by the amount a State has agreed to contribute under 
     subsection (c)(1)(C).''.
       (b) Employment and Training Funding.--Section 16(h) of the 
     Act (7 U.S.C. 2025(a)), as amended by section 1027(d)(2), is 
     further amended by adding at the end the following:
       ``(6) Block grant states.--Each State electing to operate a 
     program under section 25 shall--
       ``(A) receive the greater of--
       ``(i) the total dollar value of the funds received under 
     paragraph (1) by the State during fiscal year 1994; or
       ``(ii) the average per fiscal year of the total dollar 
     value of all funds received under paragraph (1) by the State 
     during each of fiscal years 1992 through 1994; and
       ``(B) be eligible to receive funds under paragraph (2), 
     within the limitations in section 6(d)(4)(K).''.
       (c) Research On Optional State Food Assistance Block 
     Grant.--Section 17 of the Act (7 U.S.C. 2026), as amended by 
     section 1064(c)(2), is further amended by adding at the end 
     the following:
       ``(l) Research On Optional State Food Assistance Block 
     Grant.--The Secretary may conduct research on the effects and 
     costs of a State program carried out under section 25.''.

     SEC. 1066. AMERICAN SAMOA.

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

     ``SEC. 26. TERRITORY OF AMERICAN SAMOA.

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

     SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

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

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

       ``(a) Definition of Community Food Projects.--In this 
     section, the term `community food project' means a community-
     based project that requires a 1-time infusion of Federal 
     assistance to become self-sustaining and that is designed 
     to--
       ``(1) meet the food needs of low-income people;
       ``(2) increase the self-reliance of communities in 
     providing for their own food needs; and
       ``(3) promote comprehensive responses to local food, farm, 
     and nutrition issues.
       ``(b) Authority To Provide Assistance.--
       ``(1) In general.--From amounts made available to carry out 
     this Act, the Secretary may make grants to assist eligible 
     private nonprofit entities to establish and carry out 
     community food projects.
       ``(2) Limitation on grants.--The total amount of funds 
     provided as grants under this section for any fiscal year may 
     not exceed $2,500,000.
       ``(c) Eligible Entities.--To be eligible for a grant under 
     subsection (b), a private nonprofit entity must--
     
[[Page H15389]]

       ``(1) have experience in the area of--
       ``(A) community food work, particularly concerning small 
     and medium-sized farms, including the provision of food to 
     people in low-income communities and the development of new 
     markets in low-income communities for agricultural producers; 
     or
       ``(B) job training and business development activities for 
     food-related activities in low-income communities;
       ``(2) demonstrate competency to implement a project, 
     provide fiscal accountability, collect data, and prepare 
     reports and other necessary documentation; and
       ``(3) demonstrate a willingness to share information with 
     researchers, practitioners, and other interested parties.
       ``(d) Preference for Certain Projects.--In selecting 
     community food projects to receive assistance under 
     subsection (b), the Secretary shall give a preference to 
     projects designed to--
       ``(1) develop linkages between 2 or more sectors of the 
     food system;
       ``(2) support the development of entrepreneurial projects;
       ``(3) develop innovative linkages between the for-profit 
     and nonprofit food sectors; or
       ``(4) encourage long-term planning activities and multi-
     system, interagency approaches.
       ``(e) Matching Funds Requirements.--
       ``(1) Requirements.--The Federal share of the cost of 
     establishing or carrying out a community food project that 
     receives assistance under subsection (b) may not exceed 50 
     percent of the cost of the project during the term of the 
     grant.
       ``(2) Calculation.--In providing for the non-Federal share 
     of the cost of carrying out a community food project, the 
     entity receiving the grant shall provide for the share 
     through a payment in cash or in kind, fairly evaluated, 
     including facilities, equipment, or services.
       ``(3) Sources.--An entity may provide for the non-Federal 
     share through State government, local government, or private 
     sources.
       ``(f) Term of Grant.--
       ``(1) Single grant.--A community food project may be 
     supported by only a single grant under subsection (b).
       ``(2) Term.--The term of a grant under subsection (b) may 
     not exceed 3 years.
       ``(g) Technical Assistance and Related Information.--
       ``(1) Technical assistance.--In carrying out this section, 
     the Secretary may provide technical assistance regarding 
     community food projects, processes, and development to an 
     entity seeking the assistance.
       ``(2) Sharing Information.--
       ``(A) In general.--The Secretary may provide for the 
     sharing of information concerning community food projects and 
     issues among and between government, private for-profit and 
     nonprofit groups, and the public through publications, 
     conferences, and other appropriate forums.
       ``(B) Other interested parties.--The Secretary may share 
     information concerning community food projects with 
     researchers, practitioners, and other interested parties.
       ``(h) Evaluation.--
       ``(1) In general.--The Secretary shall provide for the 
     evaluation of the success of community food projects 
     supported using funds under this section.
       ``(2) Report.--Not later than January 30, 2002, the 
     Secretary shall submit a report to Congress regarding the 
     results of the evaluation.''.
              Subtitle B--Commodity Distribution Programs

     SEC. 1071. COMMODITY DISTRIBUTION PROGRAM; COMMODITY 
                   SUPPLEMENTAL FOOD PROGRAM.

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

     SEC. 1072. EMERGENCY FOOD ASSISTANCE PROGRAM.

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

     ``SEC. 201A. DEFINITIONS.

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

     ``SEC. 202A. STATE PLAN.

       ``(a) In General.--To receive commodities under this Act, a 
     State shall submit a plan of operation and administration 
     every 4 years to the Secretary for approval. The plan may be 
     amended at any time, with the approval of the Secretary.
       ``(b) Requirements.--Each plan shall--
       ``(1) designate the State agency responsible for 
     distributing the commodities received under this Act;
       ``(2) set forth a plan of operation and administration to 
     expeditiously distribute commodities under this Act;
       ``(3) set forth the standards of eligibility for recipient 
     agencies; and
       ``(4) set forth the standards of eligibility for individual 
     or household recipients of commodities, which shall require--
       ``(A) individuals or households to be comprised of needy 
     persons; and
       ``(B) individual or household members to be residing in the 
     geographic location served by the distributing agency at the 
     time of applying for assistance.
       ``(c) State Advisory Board.--The Secretary shall encourage 
     each State receiving commodities under this Act to establish 
     a State advisory board consisting of representatives of all 
     interested entities, both public and private, in the 
     distribution of commodities received under this Act in the 
     State.''.
       (c) Authorization of Appropriations For Administrative 
     Funds.--Section 204(a)(1) of the Act (7 U.S.C. 612c note) is 
     amended--
       (1) in the first sentence--
       (A) by striking ``1991 through 1995' and inserting ``1996 
     through 2002''; and
       (B) by striking ``for State and local'' and all that 
     follows through ``under this title'' and inserting ``to pay 
     for the direct and indirect administrative costs of the State 
     related to the processing, transporting, and distributing to 
     eligible recipient agencies of commodities provided by the 
     Secretary under this Act and commodities secured from other 
     sources''; and
       (2) by striking the fourth sentence.
       (d) Delivery of Commodities.--Section 214 of the Act (7 
     U.S.C. 612c note) is amended--
       (1) by striking subsections (a) through (e) and (j);
       (2) by redesignating subsections (f) through (i) as 
     subsections (a) through (d), respectively;
       (3) in subsection (b), as redesignated by paragraph (2)--
       (A) in the first sentence, by striking ``subsection (f) or 
     subsection (j) if applicable,'' and inserting ``subsection 
     (a)''; and
       (B) in the second sentence, by striking ``subsection (f)'' 
     and inserting ``subsection (a)'';
       (4) by striking subsection (c), as redesignated by 
     paragraph (2), and inserting the following:
       ``(c) Administration.--
       ``(1) In general.--Commodities made available for each 
     fiscal year under this section shall be delivered at 
     reasonable intervals to States based on the grants calculated 
     under subsection (a), or reallocated under subsection (b), 
     before December 31 of the following fiscal year.
       ``(2) Entitlement.--Each State shall be entitled to receive 
     the value of additional commodities determined under 
     subsection (a).''; and
     
[[Page H15390]]

       (5) in subsection (d), as redesignated by paragraph (2), by 
     striking ``or reduce'' and all that follows through ``each 
     fiscal year''.
       (e) Technical Amendments.--The Act (7 U.S.C. 612c note) is 
     amended--
       (1) in the first sentence of section 203B(a), by striking 
     ``203 and 203A of this Act'' and inserting ``203A'';
       (2) in section 204(a), by striking ``title'' each place it 
     appears and inserting ``Act'';
       (3) in the first sentence of section 210(e), by striking 
     ``(except as otherwise provided for in section 214(j))''; and
       (4) by striking section 212.
       (f) Report on EFAP.--Section 1571 of the Food Security Act 
     of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
       (g) Availability of Commodities Under the Food Stamp 
     Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
     as amended by section 1067, is further amended by adding at 
     the end the following:

     ``SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                   ASSISTANCE PROGRAM.

       ``(a) Purchase of Commodities.--From amounts appropriated 
     under this Act, for each of fiscal years 1997 through 2002, 
     the Secretary shall purchase $300,000,000 of a variety of 
     nutritious and useful commodities of the types that the 
     Secretary has the authority to acquire through the Commodity 
     Credit Corporation or under section 32 of the Act entitled 
     `An Act to amend the Agricultural Adjustment Act, and for 
     other purposes', approved August 24, 1935 (7 U.S.C. 612c), 
     and distribute the commodities to States for distribution in 
     accordance with section 214 of the Emergency Food Assistance 
     Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note).
       ``(b) Basis for Commodity Purchases.--In purchasing 
     commodities under subsection (a), the Secretary shall, to the 
     extent practicable and appropriate, make purchases based on--
       ``(1) agricultural market conditions;
       ``(2) preferences and needs of States and distributing 
     agencies; and
       ``(3) preferences of recipients.''.
       (h) Effective Date.--The amendments made by subsection (d) 
     shall become effective on October 1, 1996.

     SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.

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

     SEC. 1074. HUNGER PREVENTION PROGRAMS.

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

     SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

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

     SEC. 1076. NATIONAL COMMODITY PROCESSING.

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

     SEC. 1101. EXPENDITURE OF FEDERAL FUNDS IN ACCORDANCE WITH 
                   LAWS AND PROCEDURES APPLICABLE TO EXPENDITURE 
                   OF STATE FUNDS.

       (a) In General.--Notwithstanding any other provision of 
     law, any funds received by a State under the provisions of 
     law specified in subsection (b) shall be expended only in 
     accordance with the laws and procedures applicable to 
     expenditures of the State's own revenues, including 
     appropriation by the State legislature, consistent with the 
     terms and conditions required under such provisions of law.
       (b) Provisions of Law.--The provisions of law specified in 
     this subsection are the following:
       (1) Part A of title IV of the Social Security Act (relating 
     to block grants for temporary assistance for needy families).
       (2) Section 25 of the Food Stamp Act of 1977 (relating to 
     the optional State food assistance block grant).
       (3) The Child Care and Development Block Grant Act of 1990 
     (relating to block grants for child care).

     SEC. 1102. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO 
                   FUGITIVE FELONS AND PROBATION AND PAROLE 
                   VIOLATORS.

       (a) Eligibility for Assistance.--The United States Housing 
     Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 6(l)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (C) by inserting immediately after paragraph (6) the 
     following new paragraph:
       ``(7) provide that it shall be cause for immediate 
     termination of the tenancy of a public housing tenant if such 
     tenant--
       ``(A) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the individual flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(B) is violating a condition of probation or parole 
     imposed under Federal or State law.''; and
       (2) in section 8(d)(1)(B)--
       (A) in clause (iii), by striking ``and'' at the end;
       (B) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding after clause (iv) the following new clause:
       ``(v) it shall be cause for termination of the tenancy of a 
     tenant if such tenant--

       ``(I) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the individual flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(II) is violating a condition of probation or parole 
     imposed under Federal or State law;''.

       (b) Provision of Information to Law Enforcement Agencies.--
     Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.), as amended by section 601 of this Act, is 
     amended by adding at the end the following:

     ``SEC. 28. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT 
                   AGENCIES.

       ``Notwithstanding any other provision of law, each public 
     housing agency that enters into a contract for assistance 
     under section 6 or 8 of this Act with the Secretary shall 
     furnish any Federal, State, or local law enforcement officer, 
     upon the request of the officer, with the current address, 
     Social Security number, and photograph (if applicable) of any 
     recipient of assistance under this Act, if the officer--
       ``(1) furnishes the public housing agency with the name of 
     the recipient; and
       ``(2) notifies the agency that--
       ``(A) such recipient--
       ``(i) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the individual flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(ii) is violating a condition of probation or parole 
     imposed under Federal or State law; or
       ``(iii) has information that is necessary for the officer 
     to conduct the officer's official duties;
       ``(B) the location or apprehension of the recipient is 
     within such officer's official duties; and
       ``(C) the request is made in the proper exercise of the 
     officer's official duties.''.

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

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

     SEC. 1104. SENSE OF THE SENATE REGARDING THE INABILITY OF THE 
                   NON-CUSTODIAL PARENT TO PAY CHILD SUPPORT.

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

     SEC. 1105. FOOD STAMP ELIGIBILITY.

       Section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(f)) is amended by striking the third sentence and 
     inserting the following:
       ``The State agency shall, at its option, consider either 
     all income and financial resources of the individual rendered 
     ineligible to participate in the food stamp program under 
     this subsection, or such income, less a pro rata share, and 
     the financial resources of the ineligible individual, to 
     determine the eligibility and the value of the allotment of 
     the household of which such individual is a member.''.
     
[[Page H15391]]


     SEC. 1106. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE 
                   PREGNANCIES.

       (a) In General.--Not later than January 1, 1997, the 
     Secretary of Health and Human Services shall establish and 
     implement a strategy for--
       (1) preventing out-of-wedlock teenage pregnancies, and
       (2) assuring that at least 25 percent of the communities in 
     the United States have teenage pregnancy prevention programs 
     in place.
       (b) Report.--Not later than June 30, 1998, and annually 
     thereafter, the Secretary shall report to the Congress with 
     respect to the progress that has been made in meeting the 
     goals described in paragraphs (1) and (2) of subsection (a).

     SEC. 1107. SENSE OF THE SENATE REGARDING ENFORCEMENT OF 
                   STATUTORY RAPE LAWS.

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

     SEC. 1108. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED 
                   SUBSTANCES.

       Notwithstanding any other provision of law, States shall 
     not be prohibited by the Federal Government from sanctioning 
     welfare recipients who test positive for use of controlled 
     substances.

     SEC. 1109. ABSTINENCE EDUCATION.

       (a) Increases in Funding.--Section 501(a) of the Social 
     Security Act (42 U.S.C. 701(a)) is amended in the matter 
     preceding paragraph (1) by striking ``Fiscal year 1990 and 
     each fiscal year thereafter'' and inserting ``Fiscal years 
     1990 through 1995 and $761,000,000 for fiscal year 1996 and 
     each fiscal year thereafter''.
       (b) Abstinence Education.--Section 501(a)(1) of such Act 
     (42 U.S.C. 701(a)(1)) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) in subparagraph (D), by adding ``and'' at the end; and
       (3) by adding at the end the following new subparagraph:
       ``(E) to provide abstinence education, and at the option of 
     the State, where appropriate, mentoring, counseling, and 
     adult supervision to promote abstinence from sexual activity, 
     with a focus on those groups which are most likely to bear 
     children out-of-wedlock.''.
       (c) Abstinence Education Defined.--Section 501(b) of such 
     Act (42 U.S.C. 701(b)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Abstinence education.--For purposes of this 
     subsection, the term `abstinence education' means an 
     educational or motivational program which--
       ``(A) has as its exclusive purpose, teaching the social, 
     psychological, and health gains to be realized by abstaining 
     from sexual activity;
       ``(B) teaches abstinence from sexual activity outside 
     marriage as the expected standard for all school age 
     children;
       ``(C) teaches that abstinence from sexual activity is the 
     only certain way to avoid out-of-wedlock pregnancy, sexually 
     transmitted diseases, and other associated health problems;
       ``(D) teaches that a mutually faithful monogamous 
     relationship in context of marriage is the expected standard 
     of human sexual activity;
       ``(E) teaches that sexual activity outside of the context 
     of marriage is likely to have harmful psychological and 
     physical effects;
       ``(F) teaches that bearing children out-of-wedlock is 
     likely to have harmful consequences for the child, the 
     child's parents, and society;
       ``(G) teaches young people how to reject sexual advances 
     and how alcohol and drug use increases vulnerability to 
     sexual advances; and
       ``(H) teaches the importance of attaining self-sufficiency 
     before engaging in sexual activity.''.
       (d) Set-Aside.--
       (1) In general.--Section 502(c) of such Act (42 U.S.C. 
     702(c)) is amended in the matter preceding paragraph (1) by 
     striking ``From'' and inserting ``Except as provided in 
     subsection (e), from''.
       (2) Set-aside.--Section 502 of such Act (42 U.S.C. 702) is 
     amended by adding at the end the following new subsection:
       ``(e) Of the amounts appropriated under section 501(a) for 
     any fiscal year, the Secretary shall set aside $75,000,000 
     for abstinence education in accordance with section 
     501(a)(1)(E).

     SEC. 1110. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT 
                   TRANSFER SYSTEMS.

       Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 
     1693b) is amended--
       (1) by striking ``(d) In the event'' and inserting ``(d) 
     Applicability to Service Providers Other Than Certain 
     Financial Institutions.--
       ``(1) In general.--In the event''; and
       (2) by adding at the end the following new paragraph:
       ``(2) State and local government electronic benefit 
     transfer programs.--
       ``(A) Exemption generally.--The disclosures, protections, 
     responsibilities, and remedies established under this title, 
     and any regulation prescribed or order issued by the Board in 
     accordance with this title, shall not apply to any electronic 
     benefit transfer program established under State or local law 
     or administered by a State or local government.
       ``(B) Exception for direct deposit into recipient's 
     account.--Subparagraph (A) shall not apply with respect to 
     any electronic funds transfer under an electronic benefit 
     transfer program for deposits directly into a consumer 
     account held by the recipient of the benefit.
       ``(C) Rule of construction.--No provision of this paragraph 
     may be construed as--
       ``(i) affecting or altering the protections otherwise 
     applicable with respect to benefits established by Federal, 
     State, or local law; or
       ``(ii) otherwise superseding the application of any State 
     or local law.
       ``(D) Electronic benefit transfer program defined.--For 
     purposes of this paragraph, the term `electronic benefit 
     transfer program'--
       ``(i) means a program under which a government agency 
     distributes needs-tested benefits by establishing accounts to 
     be accessed by recipients electronically, such as through 
     automated teller machines, or point-of-sale terminals; and
       ``(ii) does not include employment-related payments, 
     including salaries and pension, retirement, or unemployment 
     benefits established by Federal, State, or local 
     governments.''.

     SEC. 1111. REDUCTION IN BLOCK GRANTS TO STATES FOR SOCIAL 
                   SERVICES.

       Section 2003(c) of the Social Security Act (42 U.S.C. 
     1397b(c)) is amended--
       (1) by striking ``and'' at the end of paragraph (4); and
       (2) by striking paragraph (5) and inserting the following:
       ``(5) $2,800,000,000 for each of the fiscal years 1990 
     through 1996 and for each fiscal year after fiscal year 2002; 
     and
       ``(6) $2,520,000,000 for each of the fiscal years 1997 
     through 2002.''.
       And the Senate agree to the same.
       That the House recede from its disagreement to the 
     amendment of the Senate to the title of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, amend the title so as to read as follows: ``An Act 
     to restore the American family, enhance support and work 
     opportunities for families with children, reduce out-of-
     wedlock pregnancies, reduce welfare dependence, and control 
     welfare spending.''.
       And the Senate agree to the same.

     Bill Archer,
     Bill Goodling,
     Pat Roberts,
     E. Clay Shaw, Jr.,
     James Talent,
     Jim Nussle,
     Tim Hutchinson,
     Jim McCrery,
     Lamar Smith,
     Nancy L. Johnson,
     Dave Camp,
     Gary A. Franks,
       As an additional conferee:
     Bill Emerson,
       As an additional conferee:
     Randy ``Duke'' Cunningham,
                                Managers on the Part of the House.

     William V. Roth, Jr.,
     Bob Dole,
     John H. Chafee,
     Charles Grassley,
     Orrin Hatch,
       From the Committee on Labor and Human Resources:
     Nancy Landon Kassebaum,
     Jim Jeffords,
     Dan Coats,
     Judd Gregg,
       From the Committee on Agriculture, Nutrition, and 
       Forestry:
     Jesse Helms,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the Senate to the bill (H.R. 4) to restore the 
     American family, reduce illegitimacy, control welfare 
     spending and reduce welfare dependence, submit the following 
     joint statement to the House and Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment to the text of the bill struck all of 
     the House bill after the enacting clause and inserted a 
     substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.

  TABLE 1.--ORGANIZATION OF CONFERENCE COMPARISON DOCUMENT BY TITLE AS  
         COMPARED WITH TITLES OF HOUSE BILL AND SENATE AMENDMENT        
------------------------------------------------------------------------
                                 Conference                             
         Name of title              title      House title  Senate title
------------------------------------------------------------------------
Part 1:                                                                 
    Block Grants for Temporary  I             I             I           
     Assistance for Needy                                               
     Families.                                                          
    Supplemental Security       II            VI            II          
     Income.                                                            
    Child Support Enforcement.  III           VII           IX          
    Restricting Welfare and     IV            IV            V           
     Public Benefits in for                                             
     Aliens.                                                            
    Reductions in Federal       V             ............  XII         
     Government Positions.                                              
    Housing...................  VI            ............  X           
    Protection of Battered      (\1\)         ............  VIII        
     Individuals.                                                       
    Miscellaneous.............  XI            VIII          XIII        
Part 2:                                                                 
    Child Protection..........  VII           II            XI          
    Adoption Expenses.........  VII           ............  VIII        
    Child Care Block Grant....  VIII          III           VI          
Part: 3                                                                 
    Child Nutrition...........  IX            III           IV          
    Food Stamp Reform.........  X             V             III         

[[Page H15392]]
                                                                        
    Commodity Distribution....  X             V             IV          
------------------------------------------------------------------------
\1\ Not included.                                                       



  Title I. Block Grants to States for Temporary Assistance for Needy 
                                Families


                       1. Short title (Section 1)

     Present law
       Not applicable.
     House bill
       The Personal Responsibility Act of 1995.
     Senate amendment
       The Work Opportunity Act of 1995.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment as follows: The personal Responsibility and 
     Work Opportunity Act of 1995.


                             2. Objectives

     Present law
       To provide for the general welfare by enabling the several 
     States to make more adequate provision for dependent 
     children. (Social Security Act, 1935)
     House bill
       To restore the American family, reduce illegitimacy, 
     control welfare spending and reduce welfare dependence.
     Senate amendment
       To enhance support and work opportunities for families with 
     children, reduce welfare dependence, and control welfare 
     spending.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment as follows: To restore the American family, 
     enhance support and work opportunities for families with 
     children, reduce out-of-wedlock pregnancies, reduce welfare 
     dependence, and control welfare spending.


           3. Sense of the Congress on Families (Section 101)

     Present law
       To provision.
     House bill
       It is the sense of the Congress that marriage is the 
     foundation of a successful society, and an essential social 
     institution which promotes the interests of children and 
     society at large. The negative consequences of an out-of-
     wedlock birth on the child, the mother, and society are well 
     documented. Yet the nation suffers unprecedented and growing 
     levels of illegitimacy. In light of this crisis, the 
     reduction of out-of-wedlock births is an important government 
     interest and the policy contained in provisions of this title 
     address the crisis.
     Senate amendment
       Congress finds that marriage is the foundation of a 
     successful society and an essential institution that promotes 
     the interests of children. Promotion of responsible 
     fatherhood and motherhood is integral to successful child-
     rearing and well-being of children. It is the sense of 
     Congress that prevention of out-of-wedlock pregnancy and 
     reduction in out-of-wedlock birth are very important 
     government interests and that the policy contained in 
     provisions of this title is intended to address the crisis.
     Conference agreement
       The conference agreement follows the Senate amendment.


           4. Reference to Social Security Act (Section 102)

     Present law
       Not applicable.
     House bill
         No provision.
     Senate amendment
       No provision.
     Conference agreement
       Except as otherwise specifically provided, wherever in this 
     title an amendment is expressed in terms of an amendment to 
     or repeal of a section or other provision, the reference 
     shall be considered to be made to that section or other 
     provision of the Social Security Act.


          5. Grants to States for Needy Families (Section 103)

                               A. Purpose

     Present law
       Title IV-A, which provides grants to States for aid and 
     services to needy families with children (AFDC), is designed 
     to encourage care of dependent children in their own homes by 
     enabling States to provide cash aid and services, maintain 
     and strengthen family life, and help parents attain maximum 
     self-support consistent with maintaining parental care and 
     protection.
     House bill
       Block grants for temporary assistance for needy families 
     (Title IV-A) are established to increase the flexibility of 
     States in operating a program designed to:
       (1) provide assistance to needy families so that children 
     may be cared for in their homes or in the homes of relatives;
       (2) end the dependence of needy parents on government 
     benefits by promoting work and marriage; and
       (3) discourage out-of-wedlock births.
     Senate amendment
       Block grants for temporary assistance for needy families 
     (Title IV-A) are established to increase the flexibility of 
     States in operating a program designed to:
       (1) provide assistance to needy families with minor 
     children;
       (2) provide job preparation and opportunities for such 
     families; and
       (3) prevent and reduce the incidence of out-of-wedlock 
     pregnancies, with a special emphasis on teen pregnancies, and 
     establish annual goals for preventing and reducing these 
     pregnancies for fiscal years 1996 through 2000.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment to read as follows:
       Block grants for temporary assistance for needy families 
     (Title IV-A) are established to increase the flexibility of 
     States in operating a program designed to:
       (1) provide assistance to needy families so that children 
     may be cared for in their own homes or in the homes of 
     relatives;
       (2) end the dependence of needy parents on government 
     benefits by promoting job preparation, work, and marriage;
       (3) prevent and reduce the incidence of out-of-wedlock 
     pregnancies and establish annual numerical goals for 
     preventing and reducing the incidence of these pregnancies; 
     and
       (4) encourage the formation and maintenance of two-parent 
     families.

                     B. Eligible States; State Plan

     Present law
       A State must have an approved State plan for aid and 
     services to needy families containing 43 provisions, ranging 
     from single-agency administration to overpayment recovery 
     rules. State plans explain the aid and services that are 
     offered by the State. Aid is defined as money payments. For 
     most parents without a child under age 3, States must provide 
     education, work, or training under the JOBS program to help 
     needy families with children avoid long-term welfare 
     dependence. To receive Federal funds, States must share in 
     program costs. The Federal share of costs (matching rate) 
     varies among States and is inversely related to the square of 
     State per capita income. For AFDC benefits and child care, 
     the Medicaid matching rate is used. This rate now ranges from 
     50 percent to 79 percent among States and averages about 55 
     percent. For JOBS activities, the rate averages 60 percent; 
     for administrative costs, 50 percent. In FY 1995, 20 percent 
     of employable (nonexempt) adult recipients must participate 
     in education, work, or training under JOBS, and at least one 
     parent in 50 percent of unemployed-parent families must 
     participate at least 16 hours weekly in an unpaid work 
     experience or other work program. States must restrict 
     disclosure of information to purposes directly connected to 
     administration of the program and to any connected 
     investigation, prosecution, legal proceeding or audit. Each 
     State must offer family planning services to all 
     ``appropriate'' cases, including minors considered sexually 
     active. States may not require acceptance of these services. 
     States must have in effect an approved child support program. 
     States must also have an approved plan for foster care and 
     adoption assistance. States must have an income and 
     verification system (covering AFDC, Medicaid, unemployment 
     compensation, food stamps, and--in outlying areas--adult cash 
     aid) in accordance with Sec. 1137 of the Social Security Act.
     House bill
       An ``eligible State'' is a State that, during the 3-year 
     period immediately preceding the fiscal year, had submitted a 
     plan to the Secretary of HHS for approval. The plan must 
     include:
       (1) A written document describing how the State will:
       a. conduct a program that provides cash benefits to needy 
     families with children, and provides parents with help in 
     preparing for and obtaining employment and becoming self-
     sufficient;
       b. require at least one parent in a family that has 
     received benefits for 24 months to engage in work activities 
     defined by the State;
       c. ensure that parents engage in work activities in accord 
     with section 404;
       d. treat interstate immigrants, if their benefits differ 
     from State residents;
       e. take such reasonable steps as State deems necessary to 
     restrict use and disclosure of information about recipients;
       f. take actions to reduce out-of-wedlock pregnancies, 
     including helping unmarried mothers and fathers avoid 
     subsequent pregnancies and provide care for their children; 
     and
       g. reduce teen pregnancy, including through the provision 
     of education and counseling to male and female teens.
       (2) Certification by the Governor that the State will 
     operate a child support enforcement program.
       (3) Certification by the Governor that the State will 
     operate a child protection program, including a foster care 
     and adoption program.
       (4) The Secretary shall determine whether the State plan 
     contains the material required.
     Senate amendment
       An ``eligible State'' is a State that annually submits to 
     the Secretary: an outline of its program; a 3-year strategic 
     plan; various 

[[Page H15393]]
     certifications on programs offered by the State; and an estimate of 
     State and local expenditures. The detailed requirements of 
     State plan submissions to the Secretary are:
       (1) A written document outlining how the State intends to:
       a. provide aid to needy families with at least one minor 
     child (or any expectant family); and provide a parent or 
     (other) caretaker in these families with work activities and 
     support services to enable them to leave the program and 
     become self-sufficient;
       b. conduct a program designed to serve all political 
     subdivisions;
       c. 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;
       d. require a parent or caretaker to engage in work, as 
     defined by the State, after 24 months of benefits, or, if 
     earlier, when the State finds the person ready for work (see 
     i. below for community service rule after 3 months of 
     benefits;
       e. satisfy the minimum participation rate specified in 
     section 404;
       f. treat families with minor children moving into the 
     State; and noncitizens of the U.S.;
       g. safeguard and restrict use and disclosure of information 
     about recipients;
       h. establish goals and take action to prevent and reduce 
     out-of-wedlock pregnancies, with emphasis on teenage 
     pregnancies; and
       i. unless the State ops out by notice to the Secretary, 
     require participation in community service (with hours and 
     tasks set by the State), after 3 months of benefits, by a 
     parent or caretaker not exempt from work requirements 
     (effective 2 years after enactment).
       (2) A strategic plan that shall include:
       a. a description of the goals of the 3-year strategic plan, 
     including outcome-related goals of, and benchmarks for, 
     program activities;
       b. a description of how the above goals and benchmarks will 
     be achieved, or progress made toward them, in the current 
     year;
       c. a description of performance indicators to be used in 
     measuring/assessing output service levels and outcomes of 
     activities;
       d. information on external factors that could significantly 
     affect attainment of goals and benchmarks;
       e. information on a mechanism for conducting program 
     evaluation, for use in comparing results with goals and 
     benchmarks;
       f. information on how minimum participation rates specified 
     in section 404 will be satisfied; and
       g. an estimate of the total amount of State and local 
     expenditures under the program for the current fiscal year.
       (3) Certification that the State will operate a child 
     support enforcement program.
       (4) Certification that the State will operate child 
     protection programs, including a foster care and adoption 
     programs, under parts B and E.
       (5) Certification by the Chief Executive Officer that the 
     State will participate during the fiscal year in the income 
     and eligibility verification system (IEVS) required by 
     Section 1137 of Social Security Act.
       (6) Certification by the Chief Executive Officer specifying 
     which State agency or agencies will administer and supervise 
     the program and ensuring that local governments and private 
     sector organizations have been consulted about the plan and 
     design of welfare services in the State.
       (7) Certification by the Chief Executive Officer that the 
     State shall provide the Secretary with required reports.
       (8) Estimate of the total amount of State and local 
     expenditures under the State program for the fiscal year.
       (9) The Chief Executive Officer must certify that the State 
     will provide Indians in each tribe that does not have a 
     tribal family assistance plan with equitable access to 
     assistance under the State block grant program.
       (10) The State shall make available to the public a summary 
     of the State plan and shall provide a copy to the ``approved 
     entity'' conducting the audit of State expenditures from the 
     block grant.
     Conference agreement
         An ``eligible State'' is a State that once every two 
     years submits to the Secretary an outline of its program and 
     various certifications on programs offered by the State. The 
     detailed requirements of State plan submissions to the 
     Secretary are:
       (1) A written document describing how the State will:
       a. conduct a program that provides assistance to needy 
     families with children (or families that include a pregnant 
     mother) and provides parents with job preparation, work and 
     support services to enable them to leave the program and 
     become self-sufficient;
       b. conduct a program designed to serve all political 
     subdivisions;
       c. require a parent or caretaker to engage in work, as 
     defined by the State, after 24 months of benefits, or, if 
     earlier, when the State finds the person ready for work;
       d. ensure that families engage in work activities in accord 
     with section 407;
       e. treat families moving into the State from another State, 
     if such families are to be treated differently than other 
     families;
       f. take such reasonable steps as State deems necessary to 
     safeguard and restrict the use and disclosure of information 
     about recipients;
       g. establish goals and take action to prevent and reduce 
     out-of-wedlock pregnancies, with emphasis on teenage 
     pregnancies; and
       h. treat noncitizens, if the benefits for which they may be 
     eligible will be different than those available to citizens.
       (2) Certification by the chief executive officer that the 
     State operate a child support enforcement program;
       (3) Certification by the chief executive officer that the 
     State will operate a child protection program and a foster 
     care and adoption program under part B;
       (4) Certification by the chief executive officer specifying 
     which State agency or agencies will administer and supervise 
     the program and ensuring that local governments and private 
     sector organizations have had 60 days to submit comments 
     about the plan and the design of welfare services in the 
     State;
       (5) Certification by the chief executive officer that the 
     State will provide Indians in each tribe that does not have a 
     tribal family assistance plan with equitable access to 
     assistance under the program; and
       (6) The State shall make available to the public a summary 
     of the State plan.
       For purposes of this section, the term ``Eligible State'' 
     means, with respect to a fiscal year, a State that has 
     submitted to the Secretary the plan described above within 3 
     months after the date of enactment.

                         C. Payments to States

                            (1) Entitlements

     Present law
       AFDC entitles States to Federal matching funds. Current law 
     provides permanent authority for appropriations without limit 
     for grants to States for AFDC benefits, administration, and 
     AFDC-related child care. Over the years, because of court 
     rulings, AFDC has evolved into an entitlement for individuals 
     to receive cash benefits. In general, States must give AFDC 
     to all persons whose income and resources are below State-set 
     limits if they are in a class or category eligible under 
     Federal rules.
       There are no grants increased to reward states that reduce 
     out-of-wedlock births (illegitimacy ratio).
       There is no adjustment for population growth. Instead, 
     current law provides unlimited matching funds. When AFDC 
     enrollment climbs, Federal funding automatically rises.
       There is no adjustment for emergency assistance (EA) plan 
     amendments. Current law provides unlimited matching funds for 
     EA expenditures.
       There is no job placement performance bonus, performance 
     bonus, or high performance bonus.
       The law imposes an aggregate ceiling on matching funds for 
     AFDC, adult cash welfare (aged, blind, disabled), and foster 
     care and adoption assistance in Guam, Puerto Rico, the Virgin 
     Islands, and American Samoa (AFDC, foster care, and adoption 
     assistance only). (Sec. 1108(a) and (d) of the Social 
     Security Act.) The Federal matching rate is 75 percent, 
     except for adoption assistance and foster care maintenance 
     payments, whose matching rate is 50 percent. (Note: American 
     Samoa has not implemented AFDC). Separate funding ceilings 
     apply to matching funds for AFDC family planning services (75 
     percent Federal) and for Medicaid (50 percent Federal) in 
     each territory (sec. 1108(b) and (c) of the Social Security 
     Act). The outlying areas listed above are entitled to JOBS 
     matching funds (75 percent Federal), allocated on the same 
     basis as States (by share of AFDC adult recipients). (Sec. 
     403(1)(1)(A) of the Social Security Act.)
       Indian tribes and Alaska native organizations receive no 
     special treatment regarding AFDC, and tribes and native 
     organizations do not administer AFDC funds. Indian and Alaska 
     families with children receive AFDC benefits on the same 
     terms as other families in their States or from State or 
     local AFDC agencies. More than 80 tribes and native 
     organizations in 24 States are JOBS grantees, having applied 
     to conduct JOBS within 6 months of enactment of the law 
     establishing it. Their allocation of JOBS funds is based on 
     the percentage of AFDC adult recipients within the State who 
     are in the tribal service area. Their JOBS allocation is 
     subtracted from that of their State. JOBS funds granted to 
     Indians and Alaska natives are 100 percent Federal, requiring 
     no matching. Further, their JOBS programs need not meet 
     participation rules of the regular JOBS program. In FY 1995 
     the estimated allocation of JOBS funds for these groups 
     totaled $8.9 million.
     House bill
       Each eligible State is entitled to receive a grant from the 
     Secretary for each of 5 fiscal years (1996-2000) in the 
     amount equal to the State family assistance grant for the 
     fiscal year. There is no individual entitlement (implicit in 
     bill). For each fiscal year beginning with 1998, a State's 
     grant amount is increased by 5 percent if the State 
     illegitimacy ratio is 1 percentage point lower in that year 
     than its 1995 illegitimacy ratio; the State grant is 
     increased 10 percent if the illegitimacy ratio is 2 or more 
     percentage points lower than its 1995 illegitimacy ration. In 
     1997, 1998, 1999, and 2000, a State's grant amount is 
     increased by the State's percentage share of national 
     population growth among growing States multiplied by $100 
     million. States that have negative population growth are 
     omitted from the calculation. The House bill entitles 
     territories to a cash block grant for temporary assistance to 
     needy families (on same basis as States). It 

[[Page H15394]]
     repeals AFDC and foster care/adoption assistance (and, accordingly, 
     territorial ceilings for them and for AFDC family planning). 
     (Sec. 104(e)(1) of H.R. 4.) It establishes new separate 
     territorial ceilings for adult cash welfare. The bill retains 
     territorial ceilings for Medicaid, but repeals ceilings for 
     AFDC family planning (along with AFDC itself). As noted, the 
     bill repeals JOBS. The basic cash block grant for outlying 
     areas includes base-year level JOBS funds. Indian tribes and 
     Alaska native organizations receive no special treatment 
     regarding the cash block grant that will replace AFDC. Tribes 
     and native organizations would not administer the new grants. 
     The bill repeals JOBS (sec. 104(c)), and the basic cash block 
     grant includes base-year level JOBS funds of each State 
     (those funds include ones earmarked previously for 
     administration by Indian tribes and Alaska native 
     organizations). Tribes and native organizations would not 
     administer the new grants.
     Senate amendment
       The Secretary is required to pay each eligible State for 
     each of 5 fiscal years (1996-2000) a grant equal to the State 
     family assistance grant for the fiscal year. The amendment 
     states that no person is entitled to any assistance under 
     Title IV-A. For fiscal years 1998, 1999 and 2000, a State's 
     grant amount is increased if the State illegitimacy ratio is 
     at least 1 percentage point lower than its 1995 illegitimacy 
     ratio and the State rate of ``induced pregnancy 
     terminations'' is no higher than in 1995. The bonus equals 
     $25 times the number of children in the State in families 
     with income below the poverty line, according to the most 
     recently available Census data. The bonus is $50 per poor 
     child if the illegitimacy ratio is at least 2 percentage 
     points lower and the abortion rate no higher than in 1995. 
     The bonus shall not be paid if the Secretary finds that the 
     illegitimacy ratio declined, or the abortion rate held 
     steady, because of a change in State reporting methods. The 
     amendment authorizes to be appropriated, and appropriates, 
     sums necessary for these grants. For each of fiscal years 
     1997, 1998, 1999, and 2000, qualifying States shall receive a 
     supplemental grant amount equal to 2.5 percent of the block 
     grant received in the preceding fiscal year. For this 
     purpose, a qualifying State is one with an average level of 
     State welfare spending per poor person in the preceding 
     fiscal year below the national average and with an estimated 
     rate of State population growth above the average growth rate 
     for all States for the most recent fiscal year for which 
     information is available. Additionally, States whose 
     population rose more than 10 percent from April 1, 1990, to 
     July 1, 1994, are deemed eligible, as are States with a FY 
     1996 level of State welfare spending per poor person that is 
     less than 35 percent of the national average level. State 
     welfare spending per poor person is defined as the State cash 
     block grant divided by the number of persons in the State who 
     had an income below the poverty line, according to the 1990 
     decennial census. For these grants, a total of $878 million 
     is authorized to be appropriated, and is appropriated to be 
     spent in 1997, 1998, 1999, and 2000. The Senate amendment 
     makes available up to a total of $800 million for grants for 
     years FY 1996 through FY 2000 equal to increased EA 
     expenditures in fiscal year 1995 attributable to State EA 
     plan amendments made during fiscal year 1994. If this amount 
     is insufficient, State EA adjustment grants are to be reduced 
     proportionately. For each of 2 years (FY 1998 and 1999) the 
     Secretary shall pay a job placement performance bonus to 
     eligible States. This bonus fund shall equal 3 percent of the 
     national cash block grant for FY1998 and 4 percent for 
     FY1999. The DHHS Secretary shall develop a formula for 
     allocating funds to States on the basis of the number of 
     families who, during the previous year, lost eligibility for 
     continued aid from the cash block grant program because of 
     obtaining unsubsidized employment. The formula must provide a 
     larger bonus for families who remain employed for longer 
     periods or who are at greater risk of long-term welfare 
     enrollment and take into account each State or geographic 
     area's unemployment condition. For FY 2000, the Secretary 
     shall pay a performance bonus to each qualified State. To 
     qualify for a performance bonus, a State must exceed overall 
     average performance of all States in a measurement category 
     (in the time period starting 6 months after enactment and 
     ending on September 30, 1999) or improve its own performance 
     in a category by at least 15 percent over that of FY1994. The 
     5 measurement categories are: reduction in average length of 
     time families receive cash aid, increase in the percentage of 
     recipient families that receive child support payments, 
     increase in the number of families who lose eligibility for 
     continued cash aid as a result of unsubsidized work, increase 
     in earnings of recipient families, and reduction in 
     percentage of families that become re-eligible for cash aid 
     within 18 months after leaving the program. The bonus fund 
     shall equal 5 percent of the national cash block grant and is 
     to be deducted from that grant (by reducing each State's 
     FY2000 grant by 5 percent). For FY 2000, in addition, ``high 
     performance'' States shall be entitled to a share of a high 
     performance bonus fund. Appropriated for the high performance 
     bonus fund is an amount equal to penalties imposed on States 
     (and ``collected'' by reductions in State grants) for FYs 
     1996-1999. High performance bonuses will be awarded for each 
     of the 5 measurement categories to the 5 States with the 
     highest percentage of improvement over their FY94 baseline in 
     the category and to the 5 States with the highest overall 
     average performance in the category. Retains but increases 
     aggregate ceilings in each of the territories for cash aid to 
     needy families, cash aid to needy aged, blind or disabled 
     adults, and foster care/adoption assistance. Ends requirement 
     that territories share cost of cash aid for needy families. 
     Ceilings for Puerto Rico, Guam, and the Virgin Islands would 
     rise by $19.521 million (representing a 12.5 percent increase 
     in the old ceilings, plus $8.446 million for their FY1994 
     JOBS funds). Retains territorial ceilings for Medicaid, but 
     repeals ceilings for AFDC family planning (along with AFDC 
     itself). The Senate amendment repeals JOBS, but increases 
     ceilings for the outlying areas to include their base-year 
     level JOBS funds. The Senate amendment allows block grant 
     funds to be directly administered by Indian tribes and Alaska 
     native organizations. The amount is the total of Federal AFDC 
     payments to the State for FY 1994 attributable to Indiana 
     families. The Senate amendment requires the DHHS Secretary to 
     continue to pay Indian tribes and Alaska native organizations 
     that have been JOBS grantees an annual grant equal to the 
     amount they received in FY95 for JOBS for each of fiscal 
     years 1996, 1997, 1998, 1999 and 2000. For this purpose it 
     appropriates $7,638,474 for each year. These funds are 
     separate from, and in addition to, the national cash block 
     grant.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment on grants for family assistance, so that 
     each eligible State is entitled to receive a grant equal to 
     the State family assistance grant from the Secretary for each 
     of 5 fiscal years. The conference agreement follows the 
     Senate amendment on the explicit statement that no person is 
     entitled to any assistance under Title IV-A of the Social 
     Security Act.
       The conference agreement follows the House bill with 
     respect to the amount of Grant Increases to Reward States 
     that Reduce Out-of-Wedlock births (namely grant increases of 
     5 percent and 10 percent, based on reductions in 
     illegitimacy). The conference agreement follows the Senate 
     amendment with respect to the determination of how States may 
     qualify for grant increases for this purpose, including the 
     prohibition on a State's receiving a grant increase for this 
     purpose if the State's rate of induced pregnancy terminations 
     is higher than in 1995.
       For purposes of this part, the Secretary is to disregard 
     changes in rates of illegitimacy due to a change in State 
     methods of reporting such data.
       The conference agreement generally follows the Senate 
     amendment with regard to the Adjustment for Population 
     Growth, with the modification that $800 million is authorized 
     and appropriated for this purpose.
       The conference agreement follows the House bill regarding 
     the adjustment for Emergency Assistance Plan Amendments (no 
     provision).
       The conference agreement follows the House bill regarding 
     the Job Placement Performance Bonus (no provision).
       The conference agreement follows the Senate amendment 
     regarding the Performance Bonus, except that States that are 
     most successful or most improved in moving families off 
     welfare into work may reduce their 75 percent State 
     maintenance of effort requirement by up to 8 percentage 
     points.
       The conference agreement follows the House bill regarding 
     the High Performance Bonus (no provision).
       The conference agreement generally follows the Senate 
     amendment regarding the treatment of outlying areas, with 
     increases to the aggregate ceilings on cash benefits for the 
     specified territories.
       The conference agreement on H.R. 4 would:
       Increase the limits on Federal grants to the territories 
     for adult assistance and benefits and services for families 
     with children;
       Replace AFDC, EA, and JOBS with the Temporary Assistance 
     for Needy Families (TANF) block grant;
       Replace the child welfare services and family preservation 
     program with a child protection block grant;
       Continue the existing programs of adult assistance; and
       Provide explicit authority for the territories to transfer 
     funds among adult assistance, temporary assistance for needy 
     families with children, and child protection programs.

       The conference agreement would require that the territories 
     maintain their own funding effort under adult assistance, 
     assistance for needy families with children, and child 
     protection. For a territory to receive funds above the FY 
     1995 level, it would have to spend at least as much as the 
     Federal Government counted toward their reimbursable FY 1995 
     spending for the replaced programs.
       The chart below provides the mandatory caps and the 
     authorization of discretionary funds for the territories 
     agreed to by conferees. The final column of the chart shows 
     the maximum potential payments to the territories for adult 
     assistance, TANF, and child protection these figures 
     represent the level of funds that each territory would 
     receive if the territory reached its respective cap under the 
     mandatory programs and if Congress appropriated the full 
     authorization amount for the discretionary grant. Under P.L. 
     94-241, the Northern Mariana Islands are provided the same 
     treatment as Guam under financial assistance programs.

[[Page H15395]]


   CAPS ON MANDATORY PAYMENTS AND AUTHORIZATION OF DISCRETIONARY GRANTS TO THE TERRITORIES PROPOSED IN H.R. 4.  
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                   Authorization      Maximum   
                                                                      Cap on            of           potential  
                            Territory                                mandatory     discretionary  payment to the
                                                                     payments          grant        territories 
----------------------------------------------------------------------------------------------------------------
Puerto Rico.....................................................         105,538           7,951         113,489
Guam............................................................           4,902             345           5,247
Virgin Islands..................................................           3,742             275           4,017
American Samoa..................................................           1,122             190           1,312
----------------------------------------------------------------------------------------------------------------

       The conference agreement generally follows the Senate 
     amendment regarding the treatment of Indian tribes and Alaska 
     native organizations, except that these groups will receive 
     benefits through their State's block grant in FY1996 and will 
     be eligible to receive direct funding to administer their own 
     family assistance program in FY1997 and thereafter. In order 
     to be eligible to receive direct funding, an Indian tribe or 
     Alaska native organization must submit a three year plan to 
     the Secretary of HHS outlining how they will administer their 
     program. The tribal assistance plan is subject to the 
     approval of the Secretary of HHS. Tribes and native 
     organizations must meet minimum work participation rates 
     established jointly by each tribe and native organization and 
     the Secretary of HHS. Tribes and native organizations will be 
     subject to the same penalties as States for misusing funds, 
     failing to pay back Federal loan funds, and failing to meet 
     established work participation rates. Tribes and native 
     organizations will also be required to abide by the same data 
     collection and reporting requirements as States. In addition, 
     all tribes and native organizations that currently receive 
     direct funding under the JOBS program will continue to 
     receive an annual grant equal to the amount they received in 
     FY1995.

                            (2) Definitions

     Present law
       AFDC law defines ``State'' to include the 50 States, the 
     District of Columbia, Puerto Rico, Virgin Islands, Guam, and 
     American Samoa. However, special funding ceilings apply to 
     them.
     House bill
       The ``State family assistance grant'' is determined by the 
     greater of (1) the average of Federal obligations to the 
     State for selected programs (AFDC benefits and 
     administration, Emergency Assistance, and JOBS) authorized by 
     Title IV-A for FY 1992-1994; or (2) the amount of Federal 
     obligations for FY 1994, multiplied by the total amount of 
     State outlays for these programs for FY 1994, divided by the 
     amount of Federal obligations for FY 1994. The selected 
     programs are all those authorized under Title IV-A of current 
     law except the day care programs (the at-risk program, AFDC/
     JOBS day care, and transitional day care). If the sum of all 
     the State shares, as calculated here, exceeds (or falls short 
     of) the national block grant amount below ((2)(b)), each 
     State's share will be reduced (or increased) proportionately.
       In each fiscal year between 1996 and 2000, the ``National 
     Block Grant Amount'' available to all eligible States will be 
     equal to $15,390,296,000.
       The State's ``Illegitimacy Ratio'' for a fiscal year is the 
     sum of the number of out-of-wedlock births that occurred in 
     the State during the most recent fiscal year for which the 
     data are available and the amount, if any, by which the 
     number of abortions performed in the State during the most 
     recent year for which information is available exceeds the 
     number of abortions performed in the State during the fiscal 
     year that immediately precedes such most recent fiscal year, 
     divided by the number of births that occurred in the State 
     for the most recent fiscal year.
       The term ``State'' includes the 50 States, the District of 
     Columbia, Puerto Rico, Virgin Islands Guam, and American 
     Samoa.
     Senate amendment
       The State share of the block grant for each year equals the 
     total Federal payments to the State under Title IV-A in 
     Fiscal Year 1994 (for AFDC benefits and administration, 
     Emergency Assistance, JOBS, and three child care programs--
     AFDC/JOBS child care, ``transitional'' child care, and ``at-
     risk child care''); reduced by any amount set aside for 
     tribal family assistance programs in the State and (FY 2000 
     only) by 5 percent (for the performance bonus fund) and 
     increased by the amount, if any, of increased FY95 Emergency 
     Assistance spending attributable to FY94 amendments.
       The block grant amount is $16,803,769,000.
       (Note: A major reason for the difference between the House 
     and Senate block grant amount is that the House removed 
     mandatory child care funds currently authorized under Title 
     IV-A and placed most of the money in a separate discretionary 
     child care block grant, while the Senate kept IV-A child care 
     funds in the cash block grant but earmarked them for child 
     care.)
       The term ``illegitimacy ratio'' means the number of out-of-
     wedlock births that occurred in the State during the most 
     recent fiscal year for which the data are available, divided 
     by the number of births that occurred in the State during the 
     most recent fiscal year for which the data are available.
       The term ``State'' is identical to the House bill. However, 
     for supplemental grants for population increases, the term 
     ``State'' applies only to the 50 States.
       In general, the terms ``Indian,'' ``Indian tribe 
     organization'' have the meaning given by section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b). The Senate amendment provides that only 12 
     specified regional non-profit corporations of Alaska natives 
     can administer tribal family assistance grants.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment with regard to the State family assistance grant, 
     except that the State share of the block grant is determined 
     by the greater of (1) the average of Federal payments for FY 
     1992-94; (2) Federal payments in FY 1994; or (3) Federal 
     payments in FY 1995. House conferees recede with regard to 
     the proportionate reduction in State shares included in the 
     House bill. For all programs except JOBS, Federal payments 
     represent the Federal share of a State's total expenditures 
     on these programs, as reported by the States. For JOBS, the 
     payment represents the grant amount. Table 2 summarizes the 
     annual State allocation under the basic TANF Block Grant.


   Table 2.--Estimated Annual State Allocations Under the Temporary 
               Assistance for Needy Families Block Grant

                       [In thousands of dollars]

State:                                                           Amount
   Alabama.......................................................93,006
   Alaska........................................................63,609
   Arizona......................................................222,420
   Arkansas......................................................56,733
   California.................................................3,733,818
   Colorado.....................................................135,553
   Connecticut..................................................258,392
   Delaware......................................................32,291
   District of Columbia..........................................92,610
   Florida......................................................558,436
   Georgia......................................................330,742
   Hawaii........................................................98,905
   Idaho.........................................................31,851
   Illinois.....................................................585,057
   Indiana......................................................206,799
   Iowa.........................................................130,088
   Kansas.......................................................101,931
   Kentucky.....................................................181,288
   Louisiana....................................................163,972
   Maine.........................................................78,121
   Maryland.....................................................229,098
   Massachusetts................................................451,843
   Michigan.....................................................775,353
   Minnesota....................................................265,203
   Mississippi...................................................86,768
   Missouri.....................................................211,588
   Montana.......................................................45,534
   Nebraska......................................................58,029
   Nevada........................................................43,977
   New Hampshire.................................................38,263
   New Jersey...................................................394,955
   New Mexico...................................................126,103
   New York...................................................2,359,975
   North Carolina...............................................302,240
   North Dakota..................................................24,684
   Ohio.........................................................717,863
   Oklahoma.....................................................148,014
   Oregon.......................................................167,925
   Pennsylvania.................................................719,499
   Rhode Island..................................................95,022
   South Carolina................................................99,968
   South Dakota..................................................21,352
   Tennessee....................................................183,236
   Texas........................................................486,257
   Utah..........................................................74,952
   Vermont.......................................................47,353
   Virginia.....................................................158,285
   Washington...................................................399,637
   West Virginia................................................110,176
   Wisconsin....................................................318,188
   Wyoming.......................................................21,781
                                                       ________________

    Total....................................................16,338,743


[[Page H15396]]

Source.--Table prepared by the Congressional Research Service (CRS), 
based on data from the U.S. Department of Health and Human Services 
(DHHS). Allocations based on the sum of the Federal share of 
expenditures for Title IV-A programs (except child care) and the grant 
amount for the Job Opportunity and Basic Skills (JOBS) program. Title 
IV-A expenditure data are based on reports by the States to the DHHS. 
FY1992 to FY1994 data reflect information available from DHHS, April 
1995. Preliminary FY1995 data are the first 3 quarters of FY 1995 data, 
as reported by the States to DHHS, divided by 0.75. JOBS grant amount 
includes adjustments to obligations made after the close of the fiscal 
year. FY1992 and FY1993 JOBS grants reflect information available from 
DHHS, January 1995. FY1994 JOBS grants reflect information available 
from DHHS, April 1995. FY1995 JOBS data represent grant awards for the 
4 quarters of FY1995. FY1995 data reflect information available October 
1995. Allocations include an adjustment for States that had EA plan 
amendments related to family preservation activities in FY 1994. 
Estimates are based on FY1995 EA data available in August 1995. They 
are also based on a list of 13 States with FY 1994 EA plan amendments 
related to family preservation obtained by CRS from DHHS. If more 
States amended their EA plans for family preservation in FY 1994, the 
allocations for some States would be different.

       The conference agreement follows the Senate amendment 
     regarding the definition of a State's Illegitimacy Ratio.
       The conference agreement follows the House bill and Senate 
     amendment regarding the definition of ``State'', but the 
     House recedes to the Senate so that, for purposes of the 
     supplemental grants for population increases only, the term 
     ``State'' applies only to the 50 States and the District of 
     Columbia.
         The conference agreement follows the Senate amendment 
     regarding the definition of ``Indian.''
       For purposes of determining the Federal and State shares 
     pursuant to section 457(a)(1) of the Social Security Act of 
     amounts collected on behalf of families receiving assistance, 
     it is the intent of the conferees that amounts collected on 
     behalf of families receiving assistance do not include 
     amounts distributed to the family by the State that would 
     have been authorized as gap payments pursuant to Section 
     402(a)(28) of the Social Security Act as in effect on the day 
     before enactment of the Personal Responsibility and Work 
     Opportunity Act of 1995.

                            (3) Use of grant

     Present law
       AFDE and JOBS funds are to be used in conformity with State 
     plans. A State may replace a caretaker relative with a 
     protective payee or a guardian or legal representative.
       Current law sets aside some JOBS funds (deducting them from 
     State allocations) for Indian tribes and Native Alaska 
     organizations. See (4)(C)(1)(f).
       Regulations permit States to receive Federal reimbursement 
     funds (50 percent administrative cost-sharing rate) for 
     operation of electronic benefit systems. To do so, States 
     must receive advance approval from DHHS and must comply with 
     automatic data processing rule.
     House bill
       States may use funds in any manner reasonably calculated to 
     accomplish the purpose of this part (except for prohibitions 
     listed below under (4)(F)). No part of the grant may be used 
     to provide medical services. Explicitly allowed are noncash 
     aid to mothers under the age of 18 assistance to low-income 
     households for heating and cooling costs.
       The House bill has no set-aside provision.
       In the case of families that have lived in a State for less 
     than 12 months, States are authorized to provide them with 
     the benefit level of the State from which they moved.
       States may transfer up to 30 percent of the funds paid to 
     the State under this section to any or all of the following: 
     (1) child protection block grant; (2) social services block 
     grant under the XX of the Social Security Act; (3) any food 
     and nutrition block grant passed during the 104th Congress; 
     and (4) the child care and development block grant program. 
     Rules of the recipient program will apply to the transferred 
     funds.
       States are allowed to reserve some block grant funds 
     received for any fiscal year for the purpose of providing 
     emergency assistance under the block grant program.
       States are encouraged to implement an electronic benefit 
     transfer system for providing assistance under the State 
     program funded under this part, and may use the grant for 
     such purpose. In general, exempt State and local government 
     electronic transfers of need-based benefits from certain 
     rules issued by the Federal Reserve Board regarding 
     electronic fund transfers, (i.e., Regulation E, which limits 
     liability of cardholders).
     Senate amendment
       States may use funds in any manner reasonably calculated to 
     accomplish the purpose of this part, provided that 
     administrative costs not exceed 15 percent of the State's 
     grant (except from prohibitions listed below, under section 
     F).
       The following rules apply to set-asides under the Senate 
     amendment: (1) maintains current law set-asides for JOBS 
     funding for Indian tribes and Alaska native organizations; 
     (2) from the national cash block grant, the State Amendment 
     earmarks for child care annually the amount paid with Federal 
     funds in FY1994 for AFDC-related child care (about $980 
     million); and (3) for the Performance fund (FY2000 only), 
     each State's share of the family assistance block grant shall 
     be reduced by 5 percent. The set-aside funds are to finance 
     FY2000 performance bonuses.
       With regard to the treatment of ``interstate immigrants'', 
     the Senate amendment includes a similar provision, with 
     slight differences in wording, in relation to the House bill.
       States may transfer up to 30 percent of block grant funds 
     to the child care and development block grant program.
       A State may reserve amounts paid to the State for any 
     fiscal year for the purpose of providing assistance under 
     this part. Reserve funds can be used in any fiscal year. Any 
     funds set aside for child care, if reserved, must be used 
     only for child care.
       States may use a portion of the temporary assistance block 
     grant to make payments (or provide job placement vouchers) to 
     State-approved agencies that provide employment services to 
     recipients of cash aid.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment with respect to the general uses of the grant, 
     clarifying that the grant may be used in any manner 
     reasonably calculated (including activities now authorized 
     under titles IV-A and IV-F of the Social Security Act and 
     providing low-income households with assistance in meeting 
     home heating and cooling costs) to increase the flexibility 
     of States in operating a program designed to:
       (1) provide assistance to needy families so that children 
     may be cared for in their own homes or in the homes of 
     relatives;
       (2) end the dependence of needy parents on government 
     benefits by promoting job preparation, work, and marriage;
       (3) prevent and reduce the incidence of out-of-wedlock 
     pregnancies and establish annual numerical goals for 
     preventing and reducing the incidence of these pregnancies; 
     and
       (4) encourage the formation and maintenance of two-parent 
     families.
       The conference agreement follows the Senate amendment's 15 
     percent cap on administrative spending. However, spending for 
     information technology and computerization needed to 
     implement the tracking and monitoring required by this title 
     are excluded from this limitation.
       The conference agreement follows the House bill with regard 
     to set-asides for child care and the performance fund, and 
     follows the Senate amendment with regard to the set-aside for 
     Indians (no provision).
       With regard to the treatment of ``interstate immigrants'', 
     the conferees agree to follow the House bill and Senate 
     amendment.
       The conference agreement follows the House bill with regard 
     to transfer of funds.
       The conference agreement follows the Senate amendment on 
     reservation of funds.
       The conference agreement follows the House bill with regard 
     to the Electronic Benefit Transfer System.
       The conference agreement follows the Senate amendment on 
     the authority of States to use funds to operate an employment 
     placement program.
       It is the intent of Congress that, after the date of 
     enactment, neither the Federal nor State governments can be 
     made liable for retroactive payments required to be made by 
     States by court order to AFDC recipients under the current 
     AFDC program.

                (4) Cost-sharing (maintenance of effort)

     Present law
       Current law requires States to share program costs. For 
     administrative costs the rate is 50 percent. For other costs 
     it varies among States (and, within limits, is inversely 
     related to the square of State per capita income, compared to 
     the square of National per capita income). For AFDC benefits 
     and AFDC-related child care, the Medicaid Federal matching 
     rate is used; it now ranges among States from a floor of 50 
     percent to 79 percent. For JOBS activities, the law provides 
     an ``enhanced'' rate, ranging from 60 percent to 79 percent.
     House bill
       No cost-sharing required.
     Senate amendment
       The Senate amendment requires State cost-sharing for the 
     temporary assistance block grant for 4 years, starting in 
     FY1997. To receive the full grant for one of these years, 
     States must spend in the preceding year from their own funds 
     under their temporary assistance program at least 80 percent 
     of the amount they spent in FY1994 on the replaced programs--
     AFDC benefits, AFDC-related child care, Emergency Assistance, 
     and JOBS. Grants are to be reduced one dollar for each dollar 
     by which a State falls short of this requirement. Cost-
     sharing also is required for ``contingency'' funds and 
     additional child care funds. To qualify for contingency 
     funds, States must spend at least 100 percent of FY1994 
     expenditures on programs replaced by the cash block grant. 
     For additional child care funds they must spend at least 100 
     percent of FY1994 expenditures on AFDC-related child care.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that States must spend at least 75 percent 
     of the amount they spent in FY1994.

                         (5) Timing of payments

     Present law
       The Secretary pays AFDC funds to the State on a quarterly 
     basis.
     House bill
       The Secretary shall make each grant payable to a State in 
     quarterly installments.
     
[[Page H15397]]

     Senate amendment
       Similar to the House provision.
     Conference agreement
       The conference agreement follows the House bill.

                             (6) Penalties

     Present law
       If the Secretary finds that a State has failed to comply 
     with the State plan, she is to withhold all payments from the 
     State (or limit payments to categories not affected by 
     noncompliance).
       There is no specific penalty for failure to submit a 
     report, although the general noncompliance penalty could 
     apply.
       The Secretary is to reduce payments by 1 percent for 
     failure to offer an provide family planning services to all 
     appropriate AFDC recipients who request them.
       Except as expressed provided, the Secretary may not 
     regulate the conduct of the States or enforce any provisions 
     of this paragraph.
       The penalty against a State for noncompliance with child 
     support enforcement rules--loss of AFDC matching funds--shall 
     be suspended if a State submits and implements a corrective 
     action plan.
     House bill
       The Secretary shall reduce the funds paid to a State by any 
     amount found by audit to be in violation of this part, but 
     the Secretary cannot reduce any quarterly payment by more 
     than 25 percent. If necessary, funds will be withheld from 
     the State's payments during the following year.
       The Secretary must reduce by 3 percent the amount otherwise 
     payable to a State for a fiscal year if the State has not 
     submitted the annual report regarding the use of block grant 
     funds within 6 months after the end of the immediately 
     preceding fiscal year. The penalty is rescinded if the report 
     has been submitted within 12 months.
       The Secretary must reduce by 1 percent the amount of a 
     State's annual grant if the State fails to participate in the 
     IEVS designed to reduce welfare fraud.
       With regard to failure to offer and provide family 
     services, there is no penalty specified, but States are 
     allowed to use block grant funds to pay for family planning 
     services.
       Except as expressly provided, the Secretary may not 
     regulate the conduct of States under Part A of Title IV or 
     enforce any provision of it.
       There is no provision in the House bill regarding overdue 
     repayments to the Federal rainy day loan fund, which is 
     described below.
     Senate amendment
       For all penalties, the Secretary may not impose any of the 
     penalties if she finds the State had reasonable cause for its 
     failure to comply with the relevant provision. The State must 
     spend on the block grant program a sum of its own funds to 
     equal the amount of withheld Federal dollars. No quarterly 
     payment may be reduced more than 25 percent. If necessary, 
     penalty funds will be withheld from the State's payment for 
     the next year. Except for the first item, all penalties take 
     effect October 1, 1996.
       The Secretary shall reduce funds paid to a State by any 
     amount found by audit to be in violation of this part. If the 
     State does not prove to the Secretary that the unlawful 
     expenditure was not made intentionally, the Secretary shall 
     impose an additional penalty of 5 percent of the basic block 
     grant.
       If a State fails to submit the annual report required by 
     sec. 409 within 6 months after the end of a fiscal year, the 
     Secretary shall reduce by 5 percent the amount otherwise 
     payable to the State for the next year. However, the penalty 
     shall be rescinded if the State submits the report before the 
     end of the year in which the report was due.
       The Secretary shall reduce by not more than 5 percent the 
     annual grant of a State, if the State fails to participate in 
     the IEVS designed to reduce welfare fraud.
       If the Secretary determines that a State does not enforce 
     penalties requested by the Title IV-D child support 
     enforcement agency against receipts of cash aid who fail to 
     cooperate in establishing paternity in accordance with Part 
     D, the Secretary shall reduce the cash assistance block grant 
     by not more than 5 percent.
       Except as expressly provided, neither the DHHS Secretary 
     nor the Treasury Secretary may regulate the conduct of States 
     under Part A of Title IV nor enforce any provision of it.
       If a State fails to pay any amount borrowed from the 
     Federal Loan Fund for State Welfare Programs within the 
     maturity period, plus any interest owed, the Secretary shall 
     reduce the State's cash assistance block grant for the 
     immediately succeeding fiscal year quarter by the outstanding 
     loan amount, plus the interest owed on it. The Secretary may 
     not forgive these overdue debts.
       The Senate amendment requires the Federal government, 
     before assessing a penalty against a State under any program 
     established or modified by the act, to notify the State about 
     the violation and allow it to enter into a corrective 
     compliance plan within 60 days after notification. The 
     Federal government shall have 60 days to accept or reject the 
     plan; if it accepts the plan, and if the State corrects the 
     violation, no penalty shall be assessed. If the State fails 
     to make a timely correction, some or all of the penalty shall 
     be assessed. An alternate corrective action section requires 
     a State to correct the violation pursuant to its plan within 
     90 days after the Federal government accepts the plan.
     Conference agreement
       The conference agreement follows the Senate amendment on 
     the general conditions for setting penalties; i.e., penalties 
     may not be imposed if the Secretary finds the State has 
     reasonable cause for its failure to comply; the State must 
     spend on the block grant program a sum of its own funds to 
     equal the amount of withheld Federal dollars; no quarterly 
     payment may be reduced more than 25 percent; if necessary, 
     penalty funds will be withheld from the State's payment for 
     the next year; and that, except for the first item, all 
     penalties take effect October 1, 1996.
       The conference agreement follows the Senate amendment on 
     penalties for use of the grant for unauthorized purposes. The 
     conferees also agreed that if a State could not demonstrate 
     to the Secretary that the State did not intend to use the 
     amount in violation of this part, an additional penalty of 5 
     percent is imposed on the grant amount. The conference 
     agreement follows the House bill and the Senate amendment 
     regarding penalties for State failure to submit the required 
     report, except that the penalty is to be a reduction of 4 
     percent in the block grant. The conference agreement follows 
     the House bill and the Senate amendment regarding penalties 
     for State failure to participate in the Income and 
     Eligibility Verification System, except that the penalty is 
     to be 2 percent.
       The conference agreement follows the Senate amendment on 
     penalties for State failure to cooperate on child support 
     enforcement. The conference agreement follows the House bill 
     and the Senate amendment regarding penalties for failure to 
     offer and provide family planning services (no provision). 
     The conference agreement includes penalties for failure to 
     satisfy minimum work participation rates. The conference 
     agreement follows the Senate amendment regarding the 
     limitation of Federal authority.
       The conference agreement follows the Senate amendment 
     regarding the penalty for failure to timely repay the Federal 
     loan fund for State welfare programs. The conference 
     agreement follows the Senate amendment regarding the 
     Corrective Action Plan.

                    (7) Federal rainy day loan fund

     Present law
       No provision. Instead, current law provides unlimited 
     matching funds.
     House bill
       The Federal government will establish a fund of $1 billion 
     modeled on the Federal Unemployment Account, which is part of 
     the Unemployment Compensation system. The fund is to be 
     administered by the Secretary of Health and Human Services, 
     who must deposit into the fund any principal or interest 
     payments received with respect to a loan made under this 
     provision. Funds are to remain available without fiscal year 
     limitation for the purpose of making loans and receiving 
     payments of principal and interest. States must repay their 
     loans, with interest, within 3 years. The rate of interest 
     will equal the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the period to maturity of 
     the loan. At any given time, no State can borrow more from 
     the fund than half its annual share of block grant funds or 
     $100 million, whichever is less. States may borrow from the 
     fund if their total unemployment rate for any given 3-month 
     period is more than 6.5 percent and is at least 110 percent 
     of the same measure in the corresponding quarter of the 
     previous 2 years.
     Senate amendment
       Establishes a $1.7 billion revolving loan fund called the 
     ``Federal Loan Fund for State Welfare Programs.'' The 
     Secretary shall make loans, and the rate of interest will 
     equal the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the period to maturity of 
     the loan. Ineligible are States that have been penalized for 
     misspending block grant funds as determined by an audit. 
     Loans are to mature in 3 years, at the latest, and the 
     maximum amount loaned to a State cannot exceed 10 percent of 
     its basic block grant, and States face penalties for failing 
     to make timely payments on their loan.
     Conference agreement
       The conference agreement follows the Senate amendment.

        (8) Contingency fund (for States with high unemployment)

     Present law
       No provision. Current law provides unlimited matching 
     funds.
     House bill
       No provision.
     Senate amendment
       Establishes a ``Contingency Fund for State Welfare 
     Programs'' and appropriates funds of up to $1 billion for a 
     total period of 7 years (FY 1996-2002). The fund would 
     provide matching grants (at the Medicaid matching rate) to 
     States that have unemployment rates above specified levels, 
     provided they first spend from their own funds a yearly sum a 
     least equal to their FY 1994 expenditures on AFDC, AFDC-
     related child care, Emergency Assistance, and JOBS. The 
     maximum contingency grant could not exceed 20 percent of a 
     State's temporary assistance 

[[Page H15398]]
     block grant. Eligible would be States that met the maintenance of 
     effort requirement and had an average rate of total 
     unemployment, seasonally adjusted, of at least 6.5 percent 
     during the most recent 3 months with published data and a 
     rate at least 10 percent above that of either or both of the 
     corresponding 3-month periods in the 2-preceding calendar 
     years.
     Conference agreement
       The conference agreement follows the Senate amendment.

                     (9) Additional day care funds

     Present law
       No provision. Current law provides unlimited matching funds 
     for AFDC/JOBS child care and transition child care (but a 
     capped amount for ``at-risk'' care).
     House bill
       No provision.
     Senate amendment
       The Senate amendment authorizes to be appropriated, and 
     appropriates, $3 billion in matching grants to States for the 
     5-year period beginning in FY1996 for child care assistance 
     (in addition to Federal funds set aside for child care in the 
     family assistance block grant). The funds, which are 
     allocated among the States on the basis of their share of the 
     nation's child population, are to be used to reimburse a 
     State, at the Medicaid matching rate, for child care spending 
     in a fiscal year that exceeds its share of child care set-
     aside funds (100 percent Federal) plus the amount it spent 
     from its own funds in FY1994 for AFDC/JOBS child care, 
     transitional child care, and at-risk child care. Funds are to 
     be used only for child care assistance under Part IV-A. In 
     the last quarter of the fiscal year, FY2000, if any portion 
     of a State allotment is not used, the Secretary shall make it 
     available to applicant States. Notwithstanding section 658T 
     of the Child Care and Development Block Grant Act, the State 
     agency administering the family assistance block grant shall 
     determine eligibility for all child care assistance provided 
     under Title IV-A. (For budget scoring, the Amendment states 
     that the baseline shall assume that no grant will be made 
     after FY2000.)
     Conference agreement
       See discussion in Title VIII of the conference agreement 
     under Child Care and Development Block Grant. In general, 
     conferees agree on a child care block grant that provides 
     States with a total of $18 billion in funds for child care, 
     $11 billion of which is entitlement funding.

                     D. Contracts/Client Agreements

                               (1) Terms

     Present law
       After assessing the needs and skills of recipients and 
     developing an employability plan, States may require JOBS 
     participants to negotiate and enter into an agreement that 
     specifies their obligations.
     House law
       No provision.
     Senate amendment
       States must assess, through a case manager, the skills of 
     each parent for use in developing and negotiating a personal 
     responsibility contract (PRC). Each recipient family must 
     enter into a contract developed by the State or into a 
     limited benefit plan. The PRC means a binding contract 
     outlining steps to be taken by the family and State to get 
     the family ``off of welfare'' and specifying a negotiated 
     time-limited period of eligibility for cash aid. An alternate 
     provision requires the case manager to consult with the 
     parent applicant (client) in developing a PRC, lists client 
     activities that the PRC might require, specifies that clients 
     must agree to accept a bona fide offer of an unsubsidized 
     full-time job unless they have good cause not to, but does 
     not require a time limit in the PRC nor make provision for a 
     limited benefit plan. A State may exempt a battered person 
     from entering into a PRC if it terms would endanger his/her 
     well-being.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).

                             (2) Penalties

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       The PRC is to provide that if a family fails to comply with 
     its terms, the family automatically will enter into a limited 
     benefit plan (with a reduced benefit and later termination of 
     aid, in accordance with a schedule determined by the State). 
     If the State agency violates the PRC, the contract shall be 
     invalid. The State is to establish a procedure, including the 
     opportunity for hearing, to resolve disputes concerning 
     participation in the PRC. The alternate PRC language provides 
     these penalties: for the first act of noncompliance with the 
     PRC, 33 percent reduction in the family's benefit for one 
     month; for the second act, 66 percent reduction for 3 months; 
     for third and subsequent acts of noncompliance, loss of 
     eligibility for 6 months. Job refusal without good cause is 
     treated as a third violation. However, in no case shall the 
     penalty period extend beyond the duration of noncompliance.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).

                     E. Mandatory Work Requirements

                          (1) Work activities

     Present law
       JOBS programs must include specified educational activities 
     (high school or equivalent education, basic and remedial 
     education, and education for those with limited English 
     proficiency); jobs skills training, job readiness activities, 
     and job development and placement. In addition, States must 
     offer at least two of these four items: group and individual 
     job search; on-the-job training; work supplementation or 
     community work experience program (CWEP) (or another work 
     experience program approved by the DHHS Secretary). The State 
     also may offer postsecondary education in ``appropriate'' 
     cases.
     House bill
       ``Work activities'' are defined as unsubsidized employment, 
     subsidized employment, subsidized public sector employment or 
     work experience, on-the-job training, job search, education 
     and training directly related to employment, and jobs skills 
     training directly related to employment. Satisfactory 
     attendance at secondary school, at State option, may be 
     included as a work activity for a parent under 20 who has not 
     completed high school.
     Senate amendment
       Establishes this list of work activities: unsubsidized 
     employment, subsidized employment, on-the-job training, 
     community service programs, job search (first 4 weeks only) 
     and vocational educational training (12 months maximum). For 
     work participation requirements, the proportion of persons 
     counted as engaged in ``work'' through participation in 
     vocational educational training cannot exceed 25 percent. For 
     each tribe receiving a family assistance block grant, the 
     Secretary, with participation of Indians tribes, shall 
     establish minimum work participation rules, appropriate time 
     limits for benefits, and penalties, similar to the general 
     family assistance rules but consistent with the economic 
     conditions and resources of the tribe.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment, with the modification that, for the work 
     participation requirements, the proportion of persons counted 
     as engaged in work through participation in vocational 
     education cannot exceed 20 percent.

              (2) Participation requirements: all families

     Present law
       The following minimum percentage of non-exempt AFDC 
     families must participate in JOBS:


                           Minimum Percentage

Fiscal year:
  1995 (last year)...................................................20
  1996 and thereafter (no requirement)................................0

       Exempt from JOBS are parents whose youngest child is under 
     3 (1, at State option). Other exemptions include persons who 
     are ill, incapacitated or needed at home because of illness 
     or incapacity of another person. Also exempt are parents of a 
     child under 6, unless the State guarantees child care and 
     requires no more than 20 hours weekly of JOBS activity.
       Participation rates are calculated for each month. A 
     State's rate, expressed as a percentage, equals the number of 
     actual JOBS participants divided by the number of AFDC 
     recipients required to participate (non-exempt from JOBS).
       In calculating a State's overall JOBS participation rate, a 
     standard of 20 hours per week is used. The welfare agency is 
     to count as participants the largest number of persons whose 
     combined and averaged hours in JOBS activities during the 
     month equal 20 per week.
       The law requires States to guarantee child care when needed 
     for JOBS participants and for other AFDC parents in approved 
     education and training activities. Regulations require States 
     to guarantee care for children under age 13 (older if 
     incapable of self-care) to the extent that it is needed to 
     permit the parent to work, train, or attend school. States 
     must continue child care benefits for 1 year to ex-AFDC 
     working families, but must charge them an income-related fee.
     House bill
       The following minimum percentages of all families receiving 
     cash assistance must engage in work activities:


                           Minimum Percentage

Fiscal year:
  1996...............................................................10
  1997...............................................................15
  1998...............................................................20
  1999...............................................................25
  2000...............................................................27
  2001...............................................................29
  2002...............................................................40
  2003 or thereafter.................................................50

       If States achieve net caseload reductions, they receive 
     credit for the number of families by which the caseload is 
     reduced for purposes of meeting the overall family 
     participation requirements. The minimum participation rate 
     shall be reduced by the percentage by which the number of 
     recipient families during the fiscal year falls below the 
     number of AFDC families in fiscal year 1995, except to the 
     extent that the Secretary determines that the caseload 
     reduction was required by terms of Federal law. 
     
[[Page H15399]]

       The fiscal year participation rates are the average of the 
     rates for each month during the year. The monthly 
     participation rates are measured by the number of recipient 
     families in which an individual is engaged in work activities 
     for the month, divided by the total number of recipient 
     families that include a person who is 18 or older.
       To be counted as engaged in work activities for a month, 
     the recipient must be making progress in qualified activities 
     for at least the minimum average number of hours per week 
     shown in the table below. Of these hours, at least 20 hours 
     must be spent in unsubsidized employment, subsidized private 
     sector employment, subsidized public sector employment, work 
     experience, or on-the-job training. During the first 4 weeks 
     of required work activity, hourly credit also is given for 
     job search and job readiness assistance.


                      Minimum average hours weekly

Fiscal year:
  1996...............................................................20
  1997...............................................................20
  1998...............................................................20
  1999...............................................................25
  2000...............................................................30
  2001...............................................................30
  2002...............................................................35
  2003 or thereafter.................................................35

       Although a person must work at least 20 hours weekly in 
     order for any hours of their training or education to count 
     toward required participation, the bill does not prohibit a 
     State from offering cash recipients an opportunity to 
     participate in education or training before requiring them to 
     work. In this case, however, participation does not count 
     toward fulfillment of the State mandatory participation rate. 
     Note: although the above table is in a paragraph entitled 
     ``requirements applicable to all families receiving 
     assistance,'' another paragraph establishes a higher hourly 
     requirement (35 hours weekly) in all years for 2-parent 
     families. See below.
     Senate amendment
       The following minimum percentages of all families receiving 
     cash assistance (except those with a child under 1, if 
     exempted by the State) must participate in work activities:)


                           Minimum percentage

Fiscal year:
  1996...............................................................25
  1997...............................................................30
  1998...............................................................35
  1999...............................................................40
  2000 or thereafter.................................................50

       The Secretary is directed to prescribe regulations for 
     reducing the minimum participation rate required for a State 
     if its caseload under the new program is smaller than in the 
     final year of AFDC, but not if the decrease was required by 
     Federal law or results from changes in eligibility criteria 
     adopted by the State. With these qualifications, the 
     regulations are to reduce the participation rate by the 
     number of percentage points, if any, by which the caseload in 
     a fiscal year is smaller than in FY1995.
       States may exempt a parent or caretaker relative of a child 
     under one year old and may exclude them from the 
     participation rate calculation. States may exempt a battered 
     person if their well-being would be endangered by a work 
     requirement.
       As in the House bill, the fiscal year participation rate is 
     the average of the rates for each month of the year. However, 
     overall monthly rates are measured by adding (1) the number 
     of recipient families with an adult engaged in work for the 
     month, (2) the number subject to a work refusal penalty in 
     the month (if not subject to the penalty for more than 3 
     months out of the preceding 12), and (3) the number who 
     worked their way off the program in the previous 6 months and 
     that include an adult who is working for the month, and then 
     dividing this total by the number of families enrolled in the 
     program during the month that include an adult recipient. 
     States have the option to include in the calculation of 
     monthly participation rates families who receive assistance 
     under a tribal family assistance plan if the Indian or Alaska 
     Native is participating in work under standards comparable to 
     those of the State for being engaged in work.
       To be counted as engaged in work for a month, an adult must 
     be participating in work for at least the minimum average 
     number of hours per week shown in the table below (of which 
     not fewer than 20 hours per week are attributable to a work 
     activity). See list of work activities above.
       Exception to the table: In FY1999 and thereafter, when 
     required weekly hours rise above 20, a State may count a 
     single parent with a child under age 6 as engaged in work for 
     a month if the parent works an average of 20 hours weekly. 
     Also, community service participants may be treated as 
     engaged in work if they provide child care services for 
     another participant for the number of hours deemed 
     appropriate by the State.


                      Minimum average hours weekly

Fiscal year:
  1996...............................................................20
  1997...............................................................20
  1998...............................................................20
  1999...............................................................25
  2000...............................................................30
  2001...............................................................30
  2002...............................................................35
  2003 or thereafter.................................................35

Note: Although the above table is in a paragraph entitled ``all 
families,'' another paragraph establishes a higher hourly requirement 
(35 hours weekly) in all years for 2-parent families. See below.

       The Senate amendment states that nothing in sec. 421 
     (amounts for child care) shall be construed to provide an 
     entitlement to child care services to any child.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment as follows:
       The following minimum percentages of all families receiving 
     cash assistance (except those with a child under 1, if 
     exempted by the State) must participate in work activities:


                           Minimum percentage

Fiscal year:
  1996...............................................................15
  1997...............................................................20
  1998...............................................................25
  1999...............................................................30
  2000...............................................................35
  2001...............................................................40
  2002 or thereafter.................................................50

       The conference agreement generally follows the Senate 
     amendment regarding reduction in the participation rate, 
     including the requirement that regulations shall not take 
     into account families diverted from the State program as a 
     result of differences in eligibility criteria under the State 
     program (in comparison with the AFDC program that operated 
     prior to the date of enactment). The conferees agree to 
     modify the Senate provision by requiring that regulations 
     shall place the burden on the Secretary to prove that 
     families were diverted as a direct result of differences in 
     eligibility criteria.
       The conference agreement follows the House bill regarding 
     exemptions from the work requirement for battered 
     individuals, and follows the Senate amendment regarding the 
     State option to exempt families with a child under 1.
       The conference agreement follows the House bill and the 
     Senate amendment regarding the calculation of the fiscal year 
     rate. The conference agreement generally follows the Senate 
     amendment regarding the calculation of monthly rates, except 
     that the Senate recedes on counting people who have worked 
     their way off the rolls in the previous 6 months and 
     including sanctioned individuals in the numerator; conferees 
     agree that sanctioned persons are to be subtracted from the 
     denominator in determining monthly rates.
       The conference agreement follows the House bill with regard 
     to the number counted as engaged in work, except that the 
     phrase ``making progress in qualified activities'' is 
     replaced with ``participating in qualified activities.''
       The conference agreement follows the House bill and the 
     Senate amendment regarding the minimum average hours of 
     weekly work required. Conferees did not agree to the Senate 
     provision that States have the option of allowing single 
     parents with children under 6 to work only 20 hours per week 
     and still count toward the participation standard.

          (3) Participation requirements: Two-parent families

     Present law
       The following minimum percentages of two-parent families 
     receiving cash assistance must participate in specified work 
     activities:


                           Minimum percentage

Fiscal year:
  1995...............................................................50
  1996...............................................................60
  1997...............................................................75
  1998 (last year)...................................................75
  1999 and thereafter (no requirement)................................0

       Participation rates for a month equal the number of parents 
     who participate divided by the number of principal earners in 
     AFDC-UP families (but excluding families who received aid for 
     2 months or less, if one parent engaged in intensive job 
     search).
       One parent in the 2-parent family must participate at least 
     16 hours weekly in on-the-job training, work supplementation, 
     community work experience program, or a State-designated work 
     program.
     House bill
       The following minimum percentages of two-parent families 
     receiving cash assistance must engage in work activities:


                           Minimum percentage

Fiscal year:
  1996...............................................................50
  1997...............................................................50
  1998 (last year)...................................................90
  1999 and thereafter................................................90

       Participation rates for a month are measured by the number 
     of two-parent recipient families in which at least one adult 
     is engaged in work activities for the month, divided by the 
     total number of two-parent families that received cash aid 
     during the month.
       An adult in a 2-parent family is engaged in work activities 
     when making progress in them for 35 hours per week, at least 
     30 of which are in unsubsidized employment, subsidized 
     private sector employment, subsidized public sector 
     employment, work experience, or on-the-job training (or job 
     search and job readiness assistance for the first 4 weeks 
     only).
     Senate amendment
       The following minimum percentages of two-parent families 
     receiving cash assistance must participate in work:


[[Page H15400]]



                           Minimum percentage

Fiscal year:
  1996...............................................................60
  1997...............................................................75
  1998...............................................................75
  1999 and thereafter................................................90

       Participation rates for 2-parent families are measured 
     (like those for all families) by adding (1) the number of 2-
     parent recipient families with an adult engaged in work for 
     the month; (2) the number of 2-parent families subject to a 
     work refusal penalty in the month (if not subject to the 
     penalty for more than 3 months out of the preceding 12); and 
     (3) the number of 2-parent families who worked their way off 
     the program in the previous 6 months and that include an 
     adult who is working for the month, and then dividing this 
     total by the number of 2-parent families enrolled in the 
     program during the month that include an adult recipient.
       An adult in a 2-parent family must participate in work for 
     at least 35 hours per week during the month, and at least 30 
     hours weekly must be attributable to one or more of the 6 
     work activities listed above in ``4.E. Mandatory Work 
     Requirements.''
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment so that the following minimum percentages of two-
     parent families receiving cash assistance must participate in 
     specified work activities:


                           Minimum percentage

Fiscal year:
  1996...............................................................50
  1997...............................................................75
  1998...............................................................75
  1999 and thereafter................................................90

       With regard to participation rates for a month, the 
     conference agreement for 2-parent families matches the 
     agreement for all families described above, so that the rates 
     equal the number of two-parent recipient families in which at 
     least one adult is engaged in work activities for the month, 
     divided by the total number of two-parent families that 
     received cash assistance minus sanctioned persons.
       The conference agreement follows the House bill and the 
     Senate amendment regarding creditable activities, except the 
     House and Senate compromise so that the percentage of the 
     caseload able to be counted as engaged in a work activity 
     through vocational education training cannot exceed 20 
     percent.

                             (4) Penalties

     Present law
       For failure to meet JOBS requirements without good cause, 
     AFDC benefits are denied to the offending parent and payments 
     for the children are made to a third party.
       In a 2-parent family, failure of 1 parent to meet JOBS 
     requirements without good cause results in denial of benefits 
     for both parents (unless the other parent participates) and 
     third-party payment on behalf of the children. Repeated 
     failures to comply bring potentially longer penalty periods.
       If a State fails to achieve the two required participation 
     rates (overall and for 2-parent families), the Federal 
     reimbursement rate for its JOBS spending (which ranges among 
     States from 60 percent to 79 percent for most JOBS costs) is 
     to be reduced to 50 percent.
     House bill
       If recipients refuse to participate in required work 
     activities, their cash assistance is reduced by an amount to 
     be determined by individual States, subject to good cause and 
     other exceptions that the State may establish.
       Recipients in two-parent families who fail to work the 
     required number of hours receive the proportion of their 
     monthly cash grant that equals the proportion of required 
     work hours they actually worked during the month, or less at 
     State option.
       No officer or employee of the Federal government may 
     regulate the conduct of States under this paragraph (about 
     penalties against individuals) or enforce this paragraph 
     against any State.
       States not meeting the required participation rates have 
     their overall grant (calculated without the bonus for 
     reducing out-of-wedlock births and before other penalties 
     listed in C(5) above) reduced by up to 5 percent the 
     following fiscal year; penalties shall be based on the degree 
     of noncompliance as determined by the Secretary.
     Senate amendment
       If an adult recipient refuses to engage in required work, 
     the State shall reduce the amount of assistance to the family 
     pro rata (or more, at State option) with respect to the 
     period of work refusal, or shall discontinue aid, subject to 
     good cause and other exceptions that the State may establish. 
     A State may not penalize a single parent caring for a child 
     under age 6 for refusal to work if the parent has a 
     demonstrated inability to obtain needed child care. Penalties 
     against individuals in 2-parent families follow those against 
     individuals, except that the penalties may apply against 
     parents of children under 6 who refuse to work due to an 
     inability to obtain child care.
       No specific provision about regulation of penalties against 
     individuals. However, the amendment provides that neither the 
     DHHS Secretary nor the Treasury Secretary may regulate the 
     conduct of States under Title IV-A or enforce any of its 
     provisions, except to the extent expressly provided in the 
     Act.
       If a State fails to meet minimum work participation rates, 
     the Secretary is to reduce the family assistance block grant 
     as follows: For the first year of failure, by 5 percent 
     (applied in the next year); for subsequent years of failure, 
     by an additional 5 percent (thus, by 5.25 percent). The 
     Secretary shall impose reductions on the basis of the degree 
     of noncompliance.
     Conference agreement
       The conference agreement follows the Senate amendment 
     regarding penalties against individuals, with the 
     modification that the burden of proof to demonstrate an 
     inability to find needed child care rests on the parent of a 
     child under age 6. The conference agreement follows the 
     Senate amendment regarding penalties against individuals in 
     two-parent families.
       The conference agreement follows the House bill on 
     penalties against States not meeting work requirements, 
     except the House recedes to the Senate on the corrective 
     action provision.

     (5) Rule of interpretation (concerning education and training)

     Present law
       JOBS programs must include specified educational activities 
     and job skills training.
     House bill
       This part does not prohibit a State from establishing a 
     program for recipients that involves education and training.
     Senate amendment
       No provision. However, the amendment qualifies vocational 
     educational training as a ``work activity,'' with a 12-month 
     maximum and a limit on the proportion of vocational 
     educational trainees who can be counted in calculating work 
     participation rates.
     Conference agreement
       The House recedes (no provision). Vocational training, 
     however, counts in the calculation of participation standards 
     with the limitation described above.

                   (6) Research (about work programs)

     Present law
       Authorizes States to make ``initial'' evaluations (in FY 
     1991) of demographic characteristics of JOBS participants and 
     requires the DHHS Secretary, in consultation with the Labor 
     Secretary, to assist the States as needed.
     House bill
       The Secretary is to conduct research on the costs and 
     benefits of mandatory work requirements in the Act, and to 
     evaluate promising State approaches in employing welfare 
     recipients. See also ``Research, Evaluations, and National 
     Studies'' below.
     Senate amendment
       The Secretary is to conduct research on the costs, 
     benefits, and effects of operating different State programs 
     of temporary assistance to needy families, including their 
     time limits. Research shall include studies of effects on 
     employment rates. See also ``Research, Evaluations, and 
     National Studies'' below.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment.

  (7) Evaluation of innovative approaches to employing recipients of 
                               assistance

     Present law
       No provision.
     House bill
       The Secretary shall evaluate innovative approaches by the 
     States to employ recipients of assistance.
     Senate amendment
       The Secretary may assist States in developing, and shall 
     evaluate innovative approaches for reducing welfare 
     dependency and increasing the well-being of minor children, 
     using random assignments in these evaluations ``to the 
     maximum extent feasible.''
     Conference agreement
       The conference agreement follows the Senate amendment.

        (8) Annual ranking of States and review of work programs

     Present law
       No provision.
     House bill
       The Secretary must annually rank the States in the order of 
     their success in moving recipients into long-term private 
     sector jobs, and review the 3 most and 3 least successful 
     programs. HHS will develop these rankings based on data 
     collected under the bill.
     Senate amendment
       Taking account of the number of poor children in the State 
     and funds provided for them, the Secretary of HHS shall rank 
     the States annually in the order of their success in placing 
     recipients into long-term private sector jobs, reducing the 
     overall caseload, and, when a practicable method for 
     calculation becomes available, diverting persons from 
     application and entry into the program. The Secretary shall 
     review the 3 most and 3 least successful programs that 
     provide work experience, help in finding jobs, and provide 
     other support services to enable families to become 
     independent of the program.
     Conference agreement
       The conference agreement follows the House bill.

    (9) Annual ranking of States and review of out-of-wedlock births

     Present law
       No provision.
       
[[Page H15401]]

     House bill
       No provision.
     Senate amendment
       The Secretary is to annually rank States in the order of 
     their success in reducing out-of-wedlock births and to review 
     the programs of the 5 ranked highest and 5 ranked lowest in 
     decreasing their absolute out-of-wedlock birth ratios 
     (defined as the total number of out-of-wedlock births in 
     families receiving cash assistance, divided by the total 
     number of births in recipient families).
     Conference agreement
       The conference agreement follows the Senate amendment.

   (10) Sense of Congress on work priority for mothers without young 
                                children

     Present law
       No provision.
     House bill
       It is the sense of Congress that States should give highest 
     priority to requiring families with older preschool children 
     or school-aged children to engage in work activities.
     Senate amendment
       Adds to highest priority group ``adults in 2-parent 
     families and adults in single-parent families with children 
     that are older than preschool age.''
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

         (11) Work/school requirements for noncustodial parents

     Present law
       The Secretary shall permit up to 5 States, on a voluntary 
     or mandatory basis, to provide JOBS services to unemployed 
     noncustodial parents unable to pay child support
     House bill
       States must adopt procedures to ensure that persons owing 
     past-due support to a child (or to a child and parent) 
     receiving Title IV-A either work or have a plan for payment 
     of that support. States must seek a court order requiring the 
     parent to make payment, in accordance with a court-approved 
     plan to work (unless incapacitated). It is the sense of 
     Congress that States should require non-custodial, non-
     supporting parents under age 18 to fulfill community work 
     obligations and attend appropriate parenting or money 
     management classes after school.
     Senate amendment
       States must seek a court order or administrative order 
     requiring a person who owes support to a child receiving 
     Title IV-D services to pay the support in accordance with a 
     court-approved plan or to work (unless incapacitated).
     Conference agreement
       The conference agreement follows the House bill.

                    (12) Delivery of work activities

     Present law
       Current law permits States to carry out JOBS programs 
     directly or through arrangement or under contracts with 
     administrative entities under the Job Training Partnership 
     Act (JTPA), with State and local educational agencies or with 
     private organizations, including community-based 
     organizations as defined in JTPA (Section 485(A) of Social 
     Security Act).
     House bill
       No provision.
     Senate amendment
       Requires that work activities for recipients of the 
     temporary family assistance program be delivered through the 
     Statewide workforce development system that was earlier 
     included in the Work Opportunity Act, unless a required 
     activity is not available locally through the Statewide 
     workforce development system. However, as passed, the 
     amendment does not include the workforce development title.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).

                      (13) Displacement of workers

     Present law
       Under JOBS law, no work assignment may displace any 
     currently employer worker or position (including partial 
     displacement such as a reduction in hours of non-overtime 
     work, wages, or employment benefits). Nor may a JOBS 
     participant fill a position vacant because of layoff or 
     because the employer has reduced the workforce with the 
     effect of creating a position to be subsidized.
     House bill
       No provision.
     Senate amendment
       Provides that no adult in a Title IV-A work activity shall 
     be employed or assigned when another person is on layoff from 
     the same or a substantially equivalent job, or when the 
     employer has terminated the employment of a regular worker or 
     otherwise caused an involuntary reduction of its workforce in 
     order to fill the vacancy thus created with a subsidized 
     worker. This provision does not preempt or supersede any 
     State or local law providing greater protection from 
     displacement.
     Conference agreement
       The conference agreement follows the Senate amendment.

                            F. Prohibitions

                   (1) Families without a minor child

     Present law
       Only families with dependent children (under age 18, or 19 
     at State option if the child is still in secondary school or 
     in the equivalent level of vocational or technical training) 
     can participate in the program.
     House bill
       Only families with minor children (under 18 years of age or 
     under 19 years of age for full-time students in a secondary 
     school or the equivalent) can participate in the program.
     Senate amendment
       Similar to House bill, but specifies that the minor 
     children must live with their parent or other caretaker 
     relative.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment, with the modification that a pregnant 
     individual may receive assistance under the block grant.

                       (2) Assistance for aliens

     Present law
       Illegal aliens are ineligible, but legal aliens and others 
     permanently residing under color of law are eligible for 
     Federal means-tested benefit programs. States must operate a 
     System for Verification of Eligibility (SAVE) for 
     determination of immigration or citizenship status of 
     applicants and must verify the immigration status of aliens 
     with the Immigration and Naturalization Service.
     House bill
       Block grant funds may not be used to provide cash benefits 
     to a non-citizen unless the individual is a refugee under 
     section 207 of the Immigration and Nationality Act who has 
     been in the U.S. for under 5 years, a legal permanent 
     resident over age 75 who has lived in the U.S. at least 5 
     years, a veteran (or the spouse or unmarried dependent child 
     of a veteran) honorably discharged from the U.S. Armed 
     Forces, or a legal permanent resident unable because of 
     disability or mental impairment to comply with certain 
     naturalization requirements. In addition, legal permanent 
     residents who are current beneficiaries retain eligibility 
     for the first year after enactment.
     Senate amendment
       Aliens entering after enactment are barred from receiving 
     benefits for 5 years, with exceptions similar to House bill. 
     Separately, States have the option to deny non-citizens 
     benefits using block grant funds. Eligibility may be affected 
     by changes in the sponsor-to-alien deeming provisions. These 
     changes may affect their eligibility even after aliens have 
     attained citizenship.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment so that noncitizens arriving after the date of 
     enactment may not receive benefits from the block grant 
     during their first 5 years in the U.S.; the conference 
     agreement modifies the Senate amendment so that there is a 
     State option to provide block grant assistance to noncitizens 
     currently residing in the U.S., except that noncitizens 
     receiving AFDC benefits on the date of enactment would 
     continue to be eligible to receive block grant benefits until 
     January 1, 1997. The conference agreement makes specific 
     exceptions to these restrictions for refugees, asylees, 
     veterans and active duty military, and aliens who have worked 
     at least 40 calendar quarters as defined under title II of 
     the Social Security Act. For further details see Title IV: 
     Noncitizens.

            (3) No cash assistance for out-of-wedlock births

     Present law
       No provision forbidding eligibility. Current law permits a 
     State to provide AFDC to an unwed mother under 18 and her 
     child only if they live with their parent or another adult 
     relative or in another adult-supervised arrangement; 
     exceptions are allowed (Sec. 402(A)).
       AFDC law has no provision directly comparable for funding 
     second-chance homes (see below).
       AFDC law requires States, to the extent resources permit, 
     to require mothers under age 20 who failed to complete high 
     school to participate in an educational activity, even if 
     they otherwise would be exempt because of having a child 
     under age 3 (or, at State option, under age 1). However, 
     States may exempt some school dropout mothers under 18 years 
     old from this requirement.
     House bill
       Temporary Assistance for Needy Families Block Grant funds 
     may not be used to provide cash benefits to a child born out-
     of-wedlock to a mother under age 18 or to the mother until 
     the mother reaches age 18. States must exempt mothers to whom 
     children are born as a result of rape or incest. Block grant 
     funds can be used to provide non-cash (e.g. voucher) 
     assistance to young mothers and their children.
     Senate amendment
       Explicitly permits States to decide whether or not to give 
     assistance to a child born out-of-wedlock to a mother under 
     18 years old, and to the mother until she reaches 18. 
     However, if a State elects to extend assistance to these 
     families, the minor mother must live with a parent, legal 
     guardian or other adult relative unless they have no such 

[[Page H15402]]
     appropriate relative or the State agency determines (1) that they had 
     suffered, or might suffer, harm in the relative's home or (2) 
     that the requirement should be waived for the sake of the 
     child.
       The State shall provide or assist a minor mother in finding 
     a suitable home, a second chance home, maternity home, or 
     other appropriate adult-supervised supportive living 
     arrangement. The amendment authorizes to be appropriated, and 
     appropriates funding for second-chance homes for unmarried 
     teenage parents ($25 million yearly for FYs 1996 and 1997 and 
     $20 million yearly for FYs 1998-2000).
       Further, if a State aids these unwed minor mothers, it must 
     require those who have not completed high school, or its 
     equivalent, to attend school unless their child is under 12 
     weeks old. If the mother fails to attend high school or an 
     approved alternative training program, the State must reduce 
     her benefit or end it.
     Conference agreement
       The conference agreement follows the Senate amendment 
     regarding the state option to deny cash assistance for out-
     of-wedlock births. The conference agreement follows the 
     Senate amendment with regard to second chance homes, except 
     that funding is authorized but not appropriated for this 
     purpose. The conference agreement follows the Senate 
     amendment regarding the school requirement for unwed minor 
     mothers.

          (4) No additional assistance for additional children

     Present law
       No provision.
     House bill
       Block grant funds may not be used to provide additional 
     cash benefits for a child born to a recipient of cash welfare 
     benefits, or an individual who received cash benefits at any 
     time during the 10-month period ending with the birth of the 
     child. Mothers to whom children are born as a result of rape 
     or incest are exempted. Block grant funds can be used to 
     provide non-cash (voucher) assistance to young mothers and 
     their children.
     Senate amendment
       Explicitly permits States to deny aid to child born to a 
     mother already receiving aid under the program or to one who 
     received benefits from the program at any time during the 10 
     months ending with the baby's birth.
     Conference agreement
       The conference agreement represents a compromise between 
     the House and Senate provisions. The compromise is that 
     States must deny additional assistance to mothers already 
     receiving assistance who have babies, but that States can 
     exempt themselves from this requirement if they enact a law 
     to the effect that the State wants to be excluded from this 
     Federal requirement.

                (5) No assistance for more than 5 years

     Present law
       No provision.
     House bill
       Block grant funds may not be used to provide cash benefits 
     for the family of an individual who, after attaining 18 years 
     of age, has received block grant funds for 60 months, whether 
     or not successive; States are permitted to provide hardship 
     exemptions from the 60-month time limit for up to 10 percent 
     of their caseload.
     Senate amendment
       Block grant funds may not be used to provide cash benefits 
     for the family of a person who has received block grant aid 
     for 60 months (or less at State option), whether or not 
     consecutive. States may give hardship exemptions to up to 20 
     percent of their caseload. (Exempted from the 60-month time 
     limit is a person who received aid as a minor child and who 
     later applied as the head of her own household with a minor 
     child.)
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that no assistance may be provided beyond 5 
     years and that States may exempt up to 15 percent of their 
     caseload from this limit. Battered individuals may qualify 
     for this exemption, but States are not required to exempt 
     such individuals.

(6) Reduction or elimination of assistance for noncooperation in child 
                                support

     Present law
       As a condition of eligibility, applicants or recipients 
     must cooperate in establishing paternity of a child born out-
     of-wedlock, in obtaining support payments, and in identifying 
     any third party who may be liable to pay for medical care and 
     services for the child.
     House bill
       Block grant funds may not be used to provide cash benefits 
     to persons who fail to cooperate with the State child support 
     enforcement agency in establishing the paternity of any child 
     of the individual; the child support agency defines 
     cooperation.
     Senate amendment
       Maintains current law. In addition, see ``Payments To 
     States'' for penalty against a State that fails to enforce 
     penalty requested by the IV-D against a person who does not 
     cooperate in establishing paternity.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     the modification that States must deny a parent's share of 
     the family welfare benefit if the parent fails to cooperate; 
     the State may deny benefits to the entire family for failure 
     to cooperate.

  (7) No assistance for families not assigning support rights to the 
                                 State

     Present law
       As a condition of AFDC eligibility, applicants must assign 
     child support and spousal support rights to the State.
     House bill
       Block grant funds may not be used to provide cash benefits 
     to a family with an adult who has not assigned to the State 
     rights to child support or spousal support.
     Senate amendment
       Gives States the option to require applicants for temporary 
     family assistance (and recipients) to assign child support 
     and spousal support rights to the State.
     Conference agreement
       The conference agreement follows the House bill.

    (8) Withholding portion of aid for child whose paternity is not 
                              established

     Present law
       No provision.
     House bill
       If, at the time a family applies for assistance, the 
     paternity of a child in the family has not been established, 
     the State must impose a financial penalty ($50 or 15 percent 
     of the monthly benefits of a family of that size, whichever 
     the State chooses) until the paternity of the child is 
     established. Once paternity is established, all the money 
     withheld as a penalty must be remitted to the family if it is 
     still eligible for aid. Mothers to whom children are born as 
     a result of rape or incest are exempted from this penalty. 
     Provision effective 1 year after enactment (2 years at State 
     option).
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with the 
     modification that States may, but are not required to, impose 
     a financial penalty if paternity is not established.

(9) Denial of benefits to persons who fraudulently received aid in two 
                                 States

     Present law
       No provision.
     House bill
       Ineligible for block grant assistance for 10 years is any 
     individual convicted of having fraudulently misrepresented 
     residence (or found by a State to have made a fraudulent 
     statement) in order to obtain benefits or services from two 
     or more States from the block grant, Medicaid, Food Stamps, 
     or Supplemental Security Income.
     Senate amendment
       Ineligible for block grant assistance for 10 years is any 
     person convicted in Federal court or State court of having 
     fraudulently misrepresented residence in order to obtain 
     benefits or services from two or more States from the cash 
     block grant, Medicaid, Food Stamps, or Supplemental Security 
     Income.
     Conference agreement
       The conference agreement follows the Senate amendment.

 (10) Denial of aid for fugitive felons, probation and parole violators

     Present law
       No provision.
     House bill
       No assistance may be provided to an individual who is 
     fleeing to avoid prosecution, custody or confinement after 
     conviction for a crime (or an attempt to commit a crime) that 
     is a felony (or, in New Jersey, a high misdemeanor), or who 
     violates probation or parole imposed under Federal or State 
     law.
       Any safeguards established by the State against use or 
     disclosure of information about individual recipients shall 
     not prevent the agency, under certain conditions, from 
     providing the address of a recipient to a law enforcement 
     officer who is pursuing a fugitive felon or parole or 
     probation violator. This provision applies also to a 
     recipient sought by an officer not because he is a fugitive 
     but because he has information that the officer says is 
     necessary for his official duties. In both cases the officer 
     must notify the State that location or apprehension of the 
     recipient is within his official duties.
     Senate amendment
       A State shall furnish law enforcement officers, upon their 
     request, the address, social security number, and photograph 
     (if available) of any recipient if the officers notify the 
     agency that the recipient is a fugitive felon, or a violator 
     of probation or parole, or that he has information needed by 
     the officers to perform their duties, and that the location 
     or apprehension of the recipient is within the officers' 
     official duties.
     Conference agreement
       The conference agreement follows the House bill.

(11) No assistance for minor children who are absent, or relatives who 
                fail to notify agency of child's absence

     Present law
       Regulations allow benefits to continue for children who are 
     ``temporarily absent'' from home.
     House bill
       No assistance may be provided for a minor child who has 
     been absent from the home for 

[[Page H15403]]
     45 consecutive days or, at State option, between 30 and 90 consecutive 
     days. States may establish a good cause exemption as long as 
     it is detailed in the State report to the Secretary. No 
     assistance can be given to a parent or caretaker who fails to 
     report a missing minor child within 5 days of the time it is 
     clear that the child is absent.
     Senate amendment
       Similar provision to House bill, with different wording.
     Conference agreement
       The conference agreement follows the House bill.

   G. Income/Resource Limits, Treatment of Earnings and Other Income

                          (1) Resource limits

     Present law
       $1,000 per family in counted resources (excluding home and 
     some of the value of an auto, funeral arrangements, burial 
     plots, real property that the family is attempting to sell, 
     and--for two months--refunds of the Earned Income Tax Credit 
     (EITC)).
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                           (2) Income limits

     Present law
       Gross family income limit: 185 percent of the State 
     standard of need.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                              (3) Earnings

     Present law
       Mandatory disregard: during first 4 months of a job, $120 
     and one-third, plus child care costs up to a limit; next 8 
     months, $120 plus child care; after 12 months, $90 plus child 
     care.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                      (4) Earned income tax credit

     Present law
       Mandatory disregard: advance EITC payments must be 
     disregarded.
     House bill
       Repeals mandatory EITC disregard (a provision of AFDC law). 
     States would set policy about treatment of EITC payments by 
     block grant program.
     Senate amendment
       Provision is identical to House position.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           (5) Child support

     Present law
       Mandatory disregard: first $50 monthly in child support 
     collections is passed through to the family. In some States, 
     child support payments that fill some or all of the gap 
     between payment and need standard must be ignored.
     House bill
       In determining a family's eligibility and payment amount 
     under the block grant, a State may not disregard child 
     support collected by the State and distributed to the family.
     Senate amendment
       States are given the option of disregarding child support. 
     Repeals required disregard of the first $50 monthly in child 
     support collections distributed to the family (a provision of 
     AFDC law).
     Conference agreement
       The conference agreement follows the Senate amendment.

                           (6) Other cash aid

     Present law
       AFDC benefits may not be paid to a recipient of old-age 
     assistance (predecessor to Supplemental Security Income (SSI) 
     and now available only in Puerto Rico, Guam, and the U.S. 
     Virgin Islands), SSI, or AFDC foster care payments.
     House bill
       If block grant funds are used to provide payments to a 
     recipient of old-age assistance, SSI, or payments under the 
     Child Protection Block grant, a State may not disregard these 
     other payments in determining a family's eligibility for and 
     payment amount from the block grant.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

                 H. Various Procedural and Policy Rules

                       (1) Statewide requirement

     Present law
       AFDC must be available in all political subdivisions, and, 
     if administered by them, be mandatory upon them.
     House bill
       No provision.
     Senate amendment
       Under the State plan, a State must outline how it intends 
     to conduct a family assistance program ``designed to serve 
     all political subdivisions in the State.''
     Conference agreement
       The conference agreement follows the Senate amendment.

                        (2) Single State agency

     Present law
       Single agency must administer or supervise administration 
     of the plan.
     House bill
       No provision.
     Senate amendment
       The State's Chief Executive Officer must certify which 
     State agency or agencies are responsible for administration 
     and supervision of the program for the fiscal year.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that public and local agencies must have 60 
     days to submit comments.

                         (3) State cost sharing

     Present law
       State must share in program costs.
     House bill
       No provision.
     Senate amendment
       States must continue to spend at least 80 percent of what 
     they expended in FY1994 on AFDC or face a dollar-for-dollar 
     reduction in their basic block grant amount for FY1997-2000.
       In order to qualify for additional funding under the 
     contingency fund or additional child care funds, States must 
     continue to spend at least 100 percent of what they expended 
     in FY1994.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment with the modification to require a 
     75 percent maintenance of effort for the basic family 
     assistance block grant, but no maintenance of effort for 
     child care funds under the CCDBG.

                        (4) Aid to all eligibles

     Present law
       State must furnish aid to eligible persons with reasonable 
     promptness and give opportunity to make application to all 
     wishing to do so.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                            (5) Fair hearing

     Present law
       State must give fair hearing opportunity to person whose 
     claim is denied or not acted upon promptly.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                       (6) Administrative methods

     Present law
       State must adopt administrative methods found necessary by 
     the Secretary.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

             (7) Zero benefit below $10, rounding benefits

     Present law
       State cannot pay AFDC below $10 monthly and must round down 
     to the next lower dollar both the need standard and the 
     benefit.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                  (8) Pre-eligibility fraud detection

     Present law
       State must have measures to detect fraudulent applications 
     for AFDC before establishing of eligibility.
     House bill
       No provision.
     Senate amendment
       No provision.
       
[[Page H15404]]

     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment (no provision).

                  (9) Correction of erroneous payments

     Present law
       State must promptly correct overpayments and underpayments.
     House bill
       No provision.
     Senate amendment
       Requires the Treasury Secretary, upon notification from a 
     State that it has overpaid a former recipient of temporary 
     cash assistance and has attempted unsuccessfully to collect 
     the overpayment, to collect the sum from Federal tax refunds.
     Conference agreement
       The conference agreement follows the Senate amendment.

                   (10) Appeal procedure (for States)

     Present Law
       Current law (sec. 1116 of the Social Security Act) entitles 
     a State to a reconsideration, which DHHS must grant upon 
     request, of any disallowed reimbursement claim for an item of 
     class of items. The section also provides for administrative 
     and judicial review, upon petition of a State, of DHHS 
     decisions about approval of State plans. At the option of a 
     State, any plan amendment may be treated as the submission of 
     a new plan.
     House bill
       Repeals reference to Title IV-A in section 1116.
     Senate amendment
       Requires the Secretary to notify the Governor of a State of 
     any adverse decision or action under Title IV-A, including 
     any decision about the State's plan or imposition of a 
     penalty. Provides for administrative review by a Departmental 
     Appeals Board within DHHS and requires a Board decision 
     within 60 days after an appeal is filed. Provides for 
     judicial review (by a United States district court) within 90 
     days after a final decision by the Board. The Amendment also 
     repeals the reference to Title IV-A in section 1116.
     Conference agreement
       The conference agreement follows the Senate amendment.

                       I. Quality Control/Audits

     Present law
       The Secretary must operate a quality control system to 
     determine the amount of Federal matching funds to be 
     disallowed, if any, because of erroneous payments. The law 
     also prescribes penalties for payment error rates above the 
     national average. AFDC payments to States are subject to 
     audits conducted under the Single Audit Act [Ch. 75, Title 
     31, U.S.C.]
     House bill
       Family assistance block grants are subject to the Single 
     Audit Act. If an audit conducted under this Act finds that a 
     State has used block grant funds in violation of the law, its 
     grant for the next year is to be reduced by that amount (but 
     no quarterly payment is to be reduced by more than one-
     fourth).
     Senate amendment
       Requires a State to offset loss of Federal funds with its 
     own, maintaining the full block grant level. Also, the 
     penalty shall not be imposed if the State proves to the 
     Secretary that the violation was not intentional, and if the 
     State implements an approved corrective action plan. Each 
     State must audit its cash block grant expenditures annually 
     and submit a copy to the State legislature, Treasury 
     Secretary and DHHS Secretary. The audit must be conducted by 
     an entity that is independent from any agency administering 
     activities under title IV-A. Also subject to the Single Audit 
     Act.
     Conference agreement
       The conference agreement follows the House bill regarding 
     audits to review States' use of funds with the modification 
     that the funds come directly from the Department of Treasury. 
     (See also the Penalties section below on States misusing 
     funds and States failing to meet work requirements.)

                    J. Data Collection and Reporting

                       (1) Reporting requirements

     Present law
       States are required to report the average monthly number of 
     families in each JOBS activity, their types, amounts spent 
     per family, length of JOBS participation and the number of 
     families aided with AFDC/JOBS child care services, the kinds 
     of child care services provided, and sliding fee schedules. 
     States that disallow AFDC for minor mothers in their own 
     living quarters are required to report the number living in 
     their parent's home or in another supervised arrangement. 
     States also must report data (including numbers aided, types 
     of families, how long aided, payments made) for families who 
     receive transitional Medicaid benefits. DHHS collects data 
     about demographic characteristics and financial circumstances 
     of AFDC families from its National Integrated Quality Control 
     System (NIQCS) and publishes State and national information 
     that represents average monthly amounts for a fiscal year. 
     The NIQCS uses monthly samples of AFDC cases.
     House bill
       States are required, not later than 6 months after the end 
     of each fiscal year, to transmit to the Secretary the 
     following aggregate information on families receiving block 
     grant benefits during the fiscal year:
       (a) the number of adults receiving assistance;
       (b) the number of children receiving assistance and the 
     average age of children;
       (c) the employment status and average earnings of employed 
     adults;
       (d) the number of one-parent families in which the sole 
     parent is a widow or widower, is divorced, is separated, or 
     is never married;
       (e) the age, race, educational attainment, and employment 
     status of parents;
       (f) the average assistance provided to families;
       (g) whether, at the time of application, the families or 
     anyone in the families receive benefits from the following 
     public programs:
       (1) Housing
       (2) Food Stamps
       (3) Head Start
       (4) Job Training;
       (h) the number of months the families have been on welfare 
     during their current spell;
       (i) the total number of months for which benefits have been 
     provided to the families;
       (j) data necessary to indicate whether the State is in 
     compliance with the State's plan;
       (k) the components of any employment and training 
     activities, and the average monthly number of adults in each 
     component; and
       (l) the number of part-time and full-time job placements 
     made by the program, the number of cases with reduced 
     assistance, and the number of cases closed due to employment.
     Senate amendment
       States are required to make quarterly reports based on 
     sample case records providing disaggregated data for the 
     quality assurance system, including:
       (a) age of adults and children (including pregnant women) 
     in each family;
       (b) marital and familial status of each family member 
     (including whether family includes 2 parents and whether 
     child is living with an adult relative other than a parent);
       (c) gender, educational level, work experience, and race of 
     each family head;
       (d) health status of each family member (including whether 
     any is seriously ill, disabled, or incapacitated and is being 
     care for by another family member);
       (e) type and amount of any benefit or assistance received, 
     including amount of and reason for any benefit reduction, and 
     if help is ended, whether this is because of employment, 
     sanction, or time limit;
       (f) any benefit or assistance received by a family member 
     with respect to housing, food stamps, job training, or Head 
     Start;
       (g) number of months since the family's most recent 
     application for aid, and if application was denied, the 
     reason;
       (h) number of times a family applied for and received aid 
     from the cash block grant program and the number of months 
     were received in each ``spell'' of assistance;
       (i) employment status of adults in family (including hours 
     worked and amount earned);
       (j) date on which an adult family member began to engage in 
     work, hours worked, work actively performed, amount of child 
     care assistance, if any;
       (k) number of persons in each family receiving, and the 
     number not receiving, assistance, and the relationship of 
     each person to the youngest child in the family;
       (l) citizenship status of each family member;
       (m) housing arrangement of each family member;
       (n) amount of unearned income, child support, assets and 
     other financial factors relevant to eligibility;
       (o) location in the State of each recipient family; and
       (p) any other data determined by Secretary to be necessary 
     for efficient and effective administration.
       States are required to report the following aggregated 
     monthly data about families who received temporary family 
     assistance for each month in the calendar quarter preceding 
     the one in which the data are submitted, families applying 
     for assistance in the preceding quarter, and families that 
     became ineligible for aid during that quarter:
       (1) number of families,
       (2) number of adults in each family,
       (3) number of children in each family, and
       (4) number of families whose assistance ended because of 
     employment, sanctions, or time limits.
       The Secretary shall determine appropriate subsets of the 
     data listed above that a State is required to submit 
     regarding applicant and no-longer eligible families.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment, but with some modifications. 
     Specifically, beginning July 1, 1996, each State must collect 
     on a monthly basis, and report to the Secretary on a 
     quarterly basis, the following information on individual 
     families receiving assistance:
       (1) the county of residence of the family;
       (2) whether a child receiving assistance or an adult in the 
     family is disabled;
       (3) the ages of the members of such families;
       (4) the number of individuals in the family, and the 
     relationship of each family member to the youngest child in 
     the family;
       (5) the employment status and earnings of the employed 
     adult in the family;
       (6) the martial status of the adults in the family, 
     including whether such adult are never married, widowed, or 
     divorced;
     
[[Page H15405]]

       (7) the race and education status of each adult in the 
     family;
       (8) the race and educational status of each child in the 
     family;
       (9) whether the family received subsidized housing, 
     Medicaid, food stamps, or subsidized child care, and if the 
     later two, the amount received;
       (10) the number of months the family has received each type 
     of assistance under the program;
       (11) if the adults participated in, and the number of hours 
     per week of participation in, the following activities;
       (A) education;
       (B) subsidized private sector employment;
       (C) unsubsidized employment;
       (D) public sector employment, work experience, or community 
     service;
       (E) job search;
       (F) job skills training or on-the-job training; and
       (G) vocational education;
       (12) information necessary to calculate participation rates 
     under section 407;
       (13) the type and amount of assistance received under the 
     program, including the amount of and reason for any reduction 
     of assistance (including sanctions);
       (14) from a sample of closed cases, whether the family left 
     the program, and if so whether the family left due to
       (A) employment;
       (B) marriage;
       (C) the prohibition set forth in section 408(a)(8);
       (D) sanction; or
       (E) State policy;
       (15) any amount of unearned income received by any member 
     of the family; and
       (16) the citizenship of the members of the family.

                (2) Authority of States to use estimates

     Present law
       The National Integrated Quality Control System (above) uses 
     monthly samples of AFDC cases. JOBS regulations require 
     States to submit a sample of monthly unaggregated case record 
     data.
     House bill
       States may use scientifically acceptable sampling methods 
     to estimate the data elements required for annual reports.
     Senate amendment
       The Secretary shall provide States with case sampling plans 
     and data collection procedures deemed necessary for 
     statistically valid estimates.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment and clarifies that sampling methods used by 
     States must be approved by the Secretary.

                 (3) Other State reporting requirements

     Present law
       Regulations require each State to submit quarterly 
     estimates of the total amount (and the Federal share) of 
     expenditures for AFDC benefits and administration.
       Required quarterly reports include estimates of the Federal 
     share of child support collections made by the State; see 
     above for transitional child care and Medicaid reporting 
     requirements.
     House bill
       The report submitted by the State each fiscal year must 
     also include:
       (1) a statement of the percentage of the funds paid to the 
     State that are used to cover administrative costs or 
     overhead;
       (2) a statement of the total amount expended by the State 
     during the fiscal year on programs for needy families; and
       (3) the number of noncustodial parents in the State who 
     participated in work activities as defined in the bill during 
     the fiscal year.
     Senate amendment
       The report required by a State for a fiscal year must 
     include:
       (1) a statement of the total amount and percentage of 
     Federal funds paid to the State under Title IV-A that are 
     used for administrative costs or overhead;
       (2) a statement of the total amount of State funds expended 
     on programs for the needy;
       (3) the number of noncustodial parents who participated in 
     work activities during the fiscal year;
       (4) the total amount of child support collected by the 
     State IV-D agency on behalf of a family in the cash 
     assistance program;
       (5) the total amount spent by the State for child care 
     under Title IV-A, with a description of the types of care, 
     including transitional care for families who no longer 
     receive assistance because of work and ``at-risk'' care for 
     persons who otherwise might become eligible for assistance; 
     and
       (6) the total amount spent by the State for providing 
     transitional services to a family that no longer receive 
     assistance because of employment, along with a description of 
     those services.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment as follows:
       (1) follow the House bill regarding administrative funds;
       (2) follow the House bill regarding reports of State 
     expenditures;
       (3) follow the House bill regarding noncustodial parent 
     participation;
       (4) follow the House bill regarding child support (no 
     provision; separate reporting requirement);
       (5) follow the House bill regarding child care (no 
     provision; separate reporting requirement); and
       (6) follow the Senate amendment regarding reports on 
     transitional services.

   K. Reports Required by DHHS Secretary (Sections 103, 106, and 107)

     Present law
       The law requires the DHHS Secretary to report promptly to 
     Congress the results of State reevaluations of AFDC need 
     standards and payment standards required at least every 3 
     years. The Secretary is to annually compile and submit to 
     Congress annual State reports on at-risk child care. The 
     Family Support Act required the Secretary to submit 
     recommendations regarding JOBS performance standards by a 
     deadline that was extended.
     House bill
       The DHHS Secretary must report to Congress within 6 months 
     on the status of automatic data processing systems in the 
     States and on what would be required to produce a system 
     capable of tracking participants in public programs over time 
     and checking case records across States to determine whether 
     some individuals are participating in public programs in more 
     than one State. The report should include a plan for building 
     on the current automatic data processing system to produce a 
     system capable of performing these functions as well as an 
     estimate of the time required to put the system in place and 
     the cost of the system.
       The DHHS Secretary must, to the extent feasible, produce 
     and publish for each State, county, and local unit of 
     government for which data have been compiled in the most 
     recent census of population, and for each school district, 
     data about the incidence of poverty. Data shall include, for 
     each school district, the number of children age 5 to 17 
     inclusive, in families below the poverty level, and, for each 
     State and county for which data have been compiled by the 
     Census Bureau, the number of persons aged 65 or older. Data 
     shall be published for each State, county and local unit of 
     government in 1996 and at least every second year thereafter; 
     and for each school district, in 1998 and at least every 
     second year thereafter. Data may be produced by means of 
     sampling, estimation, or any other method that the Secretary 
     determines will produce current, comprehensive, and reliable 
     information. If reliable data could not be otherwise 
     produced, the Secretary is given authority to aggregate 
     school districts. The DHHS Secretary is to consult with the 
     Secretary of Education in producing data about school 
     districts. If unable to produce and publish the required 
     data, the Secretary must submit a report to the President of 
     the Senate and the Speaker of the House not later than 90 
     days before the start of the following year, enumerating each 
     government or school district excluded and giving the reason 
     for the exclusion.
     Senate amendment
       The Secretary must in cooperation with the States, study 
     and analyze measures of program outcomes (as an alternative 
     to minimum participation rates) for evaluating the success of 
     State block grant programs in helping recipients leave 
     welfare. The study must include a determination of whether 
     outcomes measures should be applied on a State or national 
     basis and a preliminary assessment of the job placement 
     performance bonus established in the Act. The Secretary must 
     report findings to the Committee on Finance and the Committee 
     on Ways and Means not later than September 30, 1998.
       The Secretary is to report by Dec. 31, 1997, to the 
     Committee on Ways and Means and the Committee on Economic and 
     Educational Opportunities of the House and the Committee on 
     Finance, the Committee on Labor and Human Resources, and the 
     Special Committee on Aging of the Senate setting forth 
     findings of a study on the effects of welfare changes made by 
     the Act on grandparents who are primary caregivers for their 
     grandchildren. The study is to identify barriers to 
     participation in public programs by grandparent caregivers, 
     including inconsistent policies, standards, and definitions 
     of programs providing medical aid, cash, child support 
     enforcement, and foster care.
       Not later than March 31, 1998, and each fiscal year 
     thereafter, the Secretary shall send Congress a report 
     describing:
       (1) whether States are meeting minimum participation rates 
     and whether they are meeting objectives of increasing 
     employment and earnings of needy families, increasing child 
     support collections, and decreasing out-of-wedlock 
     pregnancies and child poverty;
       (2) demographic and financial characteristics of applicant 
     families, recipient families, and those no longer ineligible 
     for temporary family assistance;
       (3) characteristics of each State program of temporary 
     family assistance; and
       (4) trends in employment and earnings of needy families 
     with minor children.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment as follows:
       (1) follow the House bill with regard to the Secretary's 
     report on data processing;
       (2) follow the Senate amendment on the report on poverty 
     (no provision);
       (3) follow the Senate amendment with regard to the report 
     on alternative outcome measures;
       (4) follow the House bill on the report on grandparent 
     caregivers (no provision); and
       (5) follow the Senate amendment with regard to the annual 
     report on State process.
     
[[Page H15406]]


             L. Research, Evaluations, and National Studies

     Present law
       The law authorizes $5 million annually for cooperative 
     research or demonstration projects, such as those relating to 
     the prevention and reduction of dependency.
     House bill
       The Secretary may conduct research on the effects, costs, 
     benefits, and caseloads of State programs funded under this 
     part. The Secretary may assist the States in developing, and 
     shall evaluate (using random assignment to experimental and 
     control groups to the maximum extent feasible), innovative 
     approaches to employing recipients of cash aid under this 
     part. The Secretary may conduct studies of the welfare 
     caseloads of States operating welfare reform programs. The 
     Secretary shall develop innovative methods of disseminating 
     information on research, evaluations, and studies.
     Senate amendment
       The Secretary may conduct research on the effects, 
     benefits, and costs of operating different State programs of 
     Temporary Assistance for Needy Families, including time 
     limits for eligibility. The research shall include studies on 
     the effects of different programs and the operation of the 
     programs on welfare dependency, illegitimacy, teen pregnancy, 
     employment rates, child well-being, and any other appropriate 
     area. The Secretary may assist States in developing, and 
     shall evaluate innovative approaches for reducing welfare 
     dependency and increasing the well-being of minor children, 
     using random assignments in these evaluations ``to the 
     maximum extent feasible.''
       The Secretary shall develop innovative methods of 
     disseminating information on research, evaluations, and 
     studies, including ways to facilitate sharing of information 
     via computers and other technologies.
       The Senate amendment makes a State eligible to receive 
     funding to evaluate its family assistance program if it 
     submits an evaluation design determined by the Secretary to 
     be rigorous and likely to yield credible and useful 
     information. The State must pay 10 percent of the study's 
     cost, unless the Secretary waives this rule. For these State-
     initiated evaluation studies of the family assistance program 
     (and for costs of operating and evaluating demonstration 
     projects begun under the AFDC waiver process) the amendment 
     authorizes to be appropriated, and appropriates, to total of 
     $20 million annually for 5 years (FYs 1996-2000).
     Conference agreement
       The conference agreement follows the Senate amendment 
     except that $15 million is appropriated annually for this 
     purpose. Conferees agree that the Secretary can use funds 
     appropriated for research to pay for evaluations conducted by 
     both governmental and non-governmental organizations.

                               M. Waivers

     Present law
       The law authorizes the DHHS Secretary to waive specified 
     requirements of State AFDC plans in order to enable a State 
     to carry out any experimental, pilot, or demonstration 
     project that the Secretary judges likely to assist in 
     promoting the program's objective. (Sec. 1115 of Social 
     Security Act) Some 34 States have received waivers from the 
     Clinton Administration for welfare reforms of their own.
     House bill
       Repeals AFDC. Also, expressly repeals authority for waiver 
     of specified provisions of AFDC law (Sec. 402, State plan 
     requirements, and Sec. 403, terms of payment to States) for 
     demonstration projects.
     Senate amendment
       Provides that terms of AFDC waivers in effect, or approved, 
     as of October 1, 1995, will continue until their expiration, 
     except that beginning with FY1996 a State operating under a 
     waiver shall receive the block grant described under Section 
     403 in lieu of any other payment provided for in the waiver. 
     The amendment gives States the option to terminate waivers 
     before their expiration, but requires that early-ended 
     projects be summarized in written reports. The amendment 
     provides that a State that submits a request to end a waiver 
     by January 1, 1996, or 90 days after adjournment of the first 
     regular session of the State legislature that begins after 
     the date of enactment, shall be held harmless for accrued 
     cost neutrality liabilities incurred under the waiver.
       The Secretary is directed to encourage any State now 
     operating a waiver to continue the project and to evaluate 
     its result or effect. The amendment allows a State to elect 
     to continue one or more individual waivers.
     Conference agreement
       The conference agreement follows the Senate amendment.

         N. Studies by the Census Bureau (Sections 103 and 105)

     Present law
       No provision.
     House bill
       The Census Bureau must expand the Survey of Income and 
     Program Participation (SIPP) to evaluate the impact of 
     welfare reforms made by this title on a random national 
     sample of recipients and, as appropriate, other low-income 
     families. The study should focus on the impact of welfare 
     reform on children and families, and should pay particular 
     attention to the issues of out-of-wedlock birth, welfare 
     dependency, the beginning and end of welfare spells, and the 
     causes of repeat welfare spells. $10 million per year for 7 
     years in entitlement funds are authorized for this study.
     Senate amendment
       Expansion of SIPP is identical to House provision.
       In addition, the Secretary of Commerce shall expand the 
     Census Bureau's question (for the decennial census and mid-
     decade census) concerning households with both grandparents 
     and their grandchildren so as to distinguish between 
     households in which a grandparent temporarily provides a home 
     and those where the grandparent serves as primary caregiver.
     Conference agreement
       The conference agreement follows the House bill regarding 
     the expansion of SIPP to evaluate welfare programs and 
     follows the Senate amendment regarding census data on 
     grandparents as caregivers.

   O. Services From Charitable, Religious, or Private Organizations 
                             (Section 104)

     Present law
       The Child Care and Development Block Grant Act prohibits 
     use of any financial assistance provided through any grant or 
     contract for any sectarian purpose or activity. In general, 
     it requires religious nondiscrimination, but it does allow a 
     sectarian organization to require employees to adhere to its 
     religious tenets and teachings.
     House bill
       No provision.
     Senate amendment
       Authorizes States to administer and provide family 
     assistance services (and services under Supplemental Security 
     Income and public housing) through contracts with charitable, 
     religious, or private organizations. Authorizes States to pay 
     recipients by means of certificates, vouchers, or other forms 
     of disbursement that are redeemable with these private 
     organizations. States that religious organizations are 
     eligible, on the same basis as any other private 
     organization, to provide assistance as contractors or to 
     accept certificates and vouchers so long as their programs 
     ``are implemented consistent with'' the Establishment Clause 
     of the Constitution. Stipulates that any religious 
     organization with a contract to provide welfare services 
     shall retain independence from all units of government and 
     that such a religious organization (or not that redeems 
     welfare certificates) may require employees who render 
     service related to the contract or certificates to adhere to 
     the religious tenets and teaching of the organization and to 
     its rules, if any, regarding use of drugs or alcohol. 
     Provides that, except as otherwise allowed by law, a 
     religious organization administering the program may not 
     discriminate against beneficiaries on the basis of religious 
     belief, or refusal to participate in a religious practice. 
     Requires States to provide an alternative provider for a 
     beneficiary who objects to the religious character of the 
     designated organization. Provides that no funds provided 
     directly to institutions or organizations to provide services 
     and administer programs shall be spent for sectarian worship 
     or instruction, but does not apply this limitation to 
     financial assistance in the form of certificates or vouchers, 
     if the beneficiary may choose where the aid is redeemed.
     Conference agreement
       This section (section 104) generally follows the Senate 
     amendment. Subsection (j) states that no funds provided 
     directly to institutions or organizations to provide services 
     and administer programs under subsection (a)(1)(A) shall be 
     expended for sectarian worship, instruction, or 
     proselytization. Subsection (a)(1)(A) refers to contracts 
     that States may have with charitable, religious, or private 
     organizations. While Congress recognizes the need to ensure 
     that money provided directly through contracts should not be 
     expended for worship, instruction, or proselytization, 
     Congress does not intend that the prohibition should apply 
     when beneficiaries receive benefits in the form of 
     certificates, vouchers, or other forms of disbursement 
     redeemable with nongovernmental entities. Where the character 
     of the aid goes directly to the ultimate beneficiary in the 
     form of a voucher or certificate, the beneficiary exercises 
     personal choice as to where to use the voucher or 
     certificate, and may or may not choose to redeem it at a 
     religious provider which incorporates worship or instruction 
     in its provision of services. Congress has recognized and 
     allowed such use of vouchers and certificates in the Child 
     Care and Development Block Grant of 1990 (42 U.S.C. 9858 et 
     seq.)
       More importantly, a beneficiary's redemption of a 
     government-provided voucher at a religious entity has been 
     determined as non-violative of the Establishment Clause by 
     the Supreme Court provided that the beneficiary has genuine 
     choice about where to redeem the voucher or certificate. The 
     Court has consistently held that government may confer a 
     benefit on individuals in a manner which allows them to 
     exercise personal choice among similarly qualified 
     institutions, whether public, private non-sectarian, or 
     religious, even when the benefit can be said to indirectly 
     advance religion. Zobrest v. Catalina Foothills School Dist., 
     113 S. Ct. 2462 (1993) (providing special education services 
     to Catholic student not prohibited by Establishment Clause); 
     Witters v. Washington Dep't of Services for the Blind, 474 
     U.S. 481 (1986) (upholding a State vocational rehabilitation 

[[Page H15407]]
     grant to disabled student choosing to use grant for training as 
     cleric); Mueller v. Allen, 463 U.S. 388 (1983) (upholding 
     State income tax deduction for parents for educational 
     expenses).
       Subsection (k) states that nothing in this section shall be 
     construed to preempt State constitutions or statutes which 
     restrict the expenditure of State funds in or by religious 
     organizations. In some States, provisions of the State 
     constitution or a State statute prohibit the expenditure of 
     public funds in or by sectarian institutions. It is the 
     intent of Congress, however, to encourage States to involve 
     religious organizations in the delivery of welfare services 
     to the greatest extent possible. The conferees do not intend 
     that this language be construed to require that funds 
     provided by the Federal government referred to in subsection 
     (a) be segregated and expended under rules different than 
     funds provided by the State for the same purposes; however, 
     States may revise such laws, or segregate State and Federal 
     funds, as necessary to allow full participation in these 
     programs by religious organizations.
       In addition, the conference agreement revises Senate 
     language on employment discrimination by religious 
     organizations by stating that the exemption provided under 
     section 702 of the Civil Rights Act of 1964 is not affected 
     by participation in or receipt of funds from programs 
     described in subsection (a).


                       6. transfers (section 103)

                       A. Child Support Penalties

     Present law
       If a State's child support plan fails to comply 
     substantially with Federal requirements, the Secretary is to 
     reduce its AFDC matching funds by percentages that rise for 
     successive violations (Sec. 403(h) of the Social Security 
     Act).
     House bill
       The provision for child support review penalties--loss of 
     Federal payments of up to 5 percent of the block grant 
     amount--now found in 403(h) of part A of the Social Security 
     Act is retained in the block grant.
     Senate amendment
       No provision. However, there is a penalty assessed against 
     States for failure to enforce penalties requested by child 
     support agency against recipients who do not cooperate in 
     establishing paternity.
     Conference agreement
       The conference agreement follows the House bill.

               B. Assistant Secretary for Family Support

     Present law
       An Assistant Secretary for Family Support, appointed by the 
     President by and with consent of the Senate, is to administer 
     AFDC, child support enforcement, and the Jobs Opportunities 
     and Basic Skills (JOBS) program.
     House bill
       The provision for an Assistant Secretary for Family Support 
     now found in section 417 of Part A of the Social Security Act 
     is retained in the block grant (as sec. 409), but modified to 
     remove the reference to JOBS (which the House bill repeals).
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.


7. conforming amendments to the social security act and the food stamp 
                       act (sections 108 and 109)

     Present law
       No provision.
     House bill
       These sections make a series of technical amendments that 
     conform the provisions of the House bill with various titles 
     of the Social Security Act and the Food Stamp Act and provide 
     for the repeal of Part F of Title IV (the JOBS program).
     Senate amendment
       This section makes a series of amendments that conform 
     provisions of the Senate amendment with various titles of the 
     Social Security Act and the Food Stamp Act.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment, with changes made as appropriate.


          8. conforming amendments to other laws (section 110)

     Present law
       No provision.
     House bill
       This section makes a series of technical amendments to 
     conform provisions of the House bill to the Internal Revenue 
     Code, the Omnibus Reconciliation Act of 1987, the Housing and 
     Urban-Rural Recovery Act of 1983, the Tax Equity and Fiscal 
     Responsibility Act of 1982, and the Stewart B. McKinney 
     Homeless Assistance Amendments Act of 1988.
     Senate amendment
       Section 107 makes a series of amendments that conform 
     provisions of the Senate amendment to the Food Stamp Act, the 
     Agriculture and Consumer Protection Act, the National School 
     Lunch Act, and the Child Nutrition Act.
       Section 108 makes a series of amendments that conform 
     provisions of the Senate amendment to the Unemployment 
     Compensation Amendments of 1976, the Omnibus Budget 
     Reconciliation Act of 1987, the House and Urban-Rural 
     Recovery Act of 1983, the Tax Equity and Fiscal 
     Responsibility Act of 1982, the Social Security Amendments of 
     1967, the Stewart B. McKinney Homeless Assistance Amendments 
     Act of 1988, the Higher Education Act of 1965, the Carl D. 
     Perkins Vocational and Applied Technology Education Act, the 
     Elementary and Secondary Education Act of 1965, Public Law 
     99-88, the Internal Revenue Code of 1986, the Wagner-Peyser 
     Act, the Job Training Partnership Act, the Low-Income Home 
     Energy Assistance Act of 1981, the Family Support Act of 
     1988, the Balanced Budget and Emergency Deficit Control Act 
     of 1985, the Immigration and Nationality Act, the Head Start 
     Act, and the School-to-Work Opportunities Act of 1994.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment, with changes made as appropriate.


 9. continued application of current standards under medicaid program 
                             (section 114)

     Present law
       States must continue Medicaid (or pay premiums for 
     employer-provided health insurance) for 6 months to a family 
     that loses AFDC eligibility because of hours of, or income 
     from, work of the caretaker relative, or because of loss of 
     the earned income disregard after 4 months of work. States 
     must offer an additional 6 months of medical assistance, for 
     which it may require a premium payment if the family's income 
     after child care expenses is not above the poverty guideline. 
     For extended medical aid, families must submit specified 
     reports. States must continue Medicaid for 4 months to those 
     who lose AFDC because of increased child or spousal support.
     House bill
       Although AFDC would be repealed, its standards would 
     continue to be used by the Medicaid program. States would 
     have to give Medicaid to families who would have received 
     AFDC if it still existed as in effect on March 7, 1995. The 
     frozen AFDC rules would govern Medicaid eligibility for both 
     recipients and non-recipients of the new block grant funds, 
     including those categorically ineligible for cash benefits.
     Senate amendment
       Same as House provision except for date at which AFDC rules 
     would be ``frozen'' (June 1, 1995, rather than March 7, 
     1995). If an AFDC waiver (as of June 1, 1995) affects 
     Medicaid eligibility, the State has the option to continue to 
     apply the waiver in regard to Medicaid after the date when 
     the waiver otherwise would end.
     Conference agreement
       The conference agreement changes both the House bill and 
     the Senate amendment because of pending changes in Medicaid 
     legislation. In conforming with this legislation, conferees 
     agree that States will determine Medicaid eligibility for 
     recipients of block grant assistance.


                   10. Effective Dates (Section 116)

     Present law
       No provision.
     House bill
       The amendments and repeals made by this title take effect 
     on October 1, 1995. The authority to reduce assistance for 
     certain families that include a child whose paternity is not 
     established will begin 1 year after the effective date or, at 
     the option of the State, 2 years after the effective date.
       Amendments made by Title I (Block Grants for Temporary 
     Assistance for Needy Families) shall not apply to powers, 
     duties, functions, rights, claims, penalties, or obligations 
     applicable to aid, or services provided (under AFDC) before 
     the effective date of the Act. Nor shall amendments of the 
     bill apply to administrative actions and proceedings 
     commenced or authorized before the effective date of the 
     bill.
     Senate amendment
       AFDC is repealed effective October 1, 1995. Family 
     assistance block grant provisions also take effect October 1, 
     1995 (except for penalties, most of which are effective 
     October 1, 1996), but expire on September 30, 2000. A State 
     may continue to operate its AFDC program for 9 months, until 
     June 30, 1996. If it does so, its FY 1996 cash block grant 
     under the new program shall be reduced by the amount of 
     Federal matching funds received for that year for AFDC 
     expenditures.
     Conference agreement
       Conferees agree that States must begin their block grant 
     program under this title by 1 October, 1996. However, States 
     have the option of initiating their block grant program at 
     any time after the date of enactment.


                           11. miscellaneous

             A. County Authority for Demonstration Projects

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the DHHS Secretary and the Agriculture Secretary 
     jointly to enter into negotiations with all counties having a 
     population greater than 500,000 that desire to conduct a 
     demonstration project in which: (1) the county shall have the 
     authority and duty to administer the operation of the family 
     assistance program as if the county were considered a State; 
     (2) the State shall pass 

[[Page H15408]]
     through directly to the county the portion of the block grant that the 
     State determines is attributable to the residents of the 
     county; and (3) the project shall last 5 years.
       To be eligible: (1) a county already must be administering 
     the Title IV-A program; (2) must represent less than 25 
     percent of the State's total welfare caseload; and (3) the 
     State must have more than one county with a population of 
     greater than 500,000.
       Not later than 56 months after the end of a county 
     demonstration project, the two Secretaries shall send a 
     report to Congress that includes a description of the 
     project, its rules, and innovations (if any).
     Conference agreement
       The conference agreement follows the House bill.

         B. Collection of Overpayments from Federal Tax Refunds

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the Treasury Secretary, upon notification from a 
     State that it has overpaid a former recipient of temporary 
     cash assistance and has attempted unsuccessfully to collect 
     the overpayment, to collect the sum from Federal tax refunds.
     Conference agreement
       The conference agreement follows the Senate amendment.

           C. Tamper-Proof Social Security Card (Section 111)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the Commissioner of Social Security to develop a 
     prototype of a counterfeit-resistant social security card. 
     The card must be made of a durable, tamper-resistant material 
     such as plastic or polyester, employ technologies that 
     provide security features, and be developed so as to provide 
     individuals with reliable proof of citizenship of legal 
     resident alien status. The Commissioner is to report to 
     Congress on the cost of issuing a tamper-proof card for all 
     persons over a 3-, 5-, and 10-year period. Copies of the 
     report, along with a facsimile of the prototype card, shall 
     be submitted to the Committees on Ways and Means and 
     Judiciary of the House and the Committees on Finance and 
     Judiciary of the Senate within one year of enactment.
     Conference agreement
       The conference agreement follows the Senate amendment 
     except that funding is not made through Title II of the 
     Social Security Act.

        D. Disclosure of Receipt of Federal Funds (Section 112)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires disclosure of specified public funds received by 
     501(c) organizations, which are non-profit and tax-exempt. 
     When a 501(c) organization that accepts Federal funds under 
     the Work Opportunity Act makes any communication that intends 
     to promote public support or opposition to any governmental 
     policy (Federal, State or local) through any broadcasting 
     station, newspaper, magazine, outdoor advertising facility, 
     direct mailing, or any other type of general public 
     advertising, the communication must state: ``This was 
     prepared and paid for by an organization that accepts 
     taxpayer dollars''.
     Conference agreement
       The conference agreement follows the Senate amendment.

    E. Projects to Expand Job Opportunities for Certain Low-Income 
                    Individuals (JOLI) (Section 113)

     Present law
       The Family Support Act of 1988 (Sec. 505) directed the 
     Secretary to enter into agreement with between 5 and 10 
     nonprofit organizations to conduct demonstrations to create 
     job opportunities for AFDC recipients and other low-income 
     persons. For these projects, $6.5 million was authorized to 
     be appropriated for each fiscal year, 1990-1992.
     House bill
       No provision.
     Senate amendment
       Strikes the word ``demonstration'' from the description of 
     these projects and converts them to grant status. The 
     provision requires the Secretary to enter into agreements 
     with nonprofit organizations to conduct projects that create 
     job opportunities for recipients of family assistance and 
     other persons with income below the poverty guideline. The 
     sum of $25 million annually is authorized for these projects.
     Conference agreement
       The conference agreement follows the Senate amendment.

           F. Demonstration Projects To Expand Use of Schools

     Present law
       The 21st Century Community Learning Centers Act 
     (established by P.L. 103-382) makes available funds directly 
     to rural or inner-city schools, or consortia of them, to act 
     as centers for providing education and human resources 
     services. Services allowed include: literacy education, 
     parenting skills education, employment counseling, training 
     and placement. The Elementary and Secondary Education Act 
     includes a program called ``Extend Time for Learning and 
     Longer School Year,'' which support local educational 
     agencies' efforts to lengthen learning time. Grantees may 
     engage other community members in these efforts.
     House bill
       No provision.
     Senate amendment
       The Secretary of Education is required to make grants to 
     not more than 5 States for demonstration grants to increase 
     the number of hours when public school facilities are 
     available for use. Schools selected must have a significant 
     percentage of students receiving family assistance benefits. 
     The longer hours are intended to enable volunteers and 
     parents or professionals paid from other sources to teach, 
     tutor, coach, organize, advise, or monitor students. Grants 
     are intended also to make school facilities available for 
     clubs, civic associations, Boy and Girl Scouts and other 
     groups. The amendment authorizes $10 million annually (FYs 
     1996-2000) for grants plus $1 million annually for 
     administration by the Secretary.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).

  G. Secretarial Submission of Legislative Proposal for Technical and 
                  Conforming Amendments (Section 115)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Not later than 90 days after enactment of this Act, the 
     Secretary must submit to the appropriate committees of 
     Congress a legislative proposal providing for technical and 
     conforming amendments.
     Conference agreement
       The conference agreement follows the Senate amendment.

                 Title II. Supplemental Security Income

                  Subtitle A--Eligibility Restrictions


    1. denial of supplemental security income benefits by reason of 
               disability to drug addicts and alcoholics

                             A. In General

     Present law
       Individuals whose drug addiction or alcoholism is a 
     contributing factor material to their disability are eligible 
     to receive SSI cash benefits for up to three years if they 
     meet SSI income and resource requirements. These recipients 
     must have a representative payee, must participate in an 
     approved treatment program when available and appropriate, 
     and must allow their participation in a treatment program to 
     be monitored. Medicaid benefits continue beyond the 3-year 
     limit, as long as the individual remains disabled, unless the 
     individual was expelled from SSI for failure to participate 
     in a treatment program.
     House bill
       Under the House provision, an individual is not considered 
     disabled if drug addiction or alcoholism is a contributing 
     factor material to his or her disability. Individuals with 
     drug addiction and/or alcoholism who cannot qualify based on 
     another disabling condition will not be eligible for SSI 
     benefits.
     Senate amendment
       Identical to House bill.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.

                  B. Representative Payee Requirements

     Present law
       SSI law requires that the SSI payments of individuals whose 
     drug addiction or alcoholism is a contributing factor 
     material to their disability must be made to another 
     individual, or an appropriate public or private organization 
     (i.e., the individual's ``representative payee'') for the use 
     and benefit of the individual or eligible spouse.
     House bill
       No provision.
     Senate amendment
       Under the Senate amendment, if a disabled person also has 
     an alcoholism or drug addiction condition (as determined by 
     the Commissioner of Social Security), their SSI checks must 
     be sent to a representative payee.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.

   C. Treatment Referrals for Individuals With an Alcoholism or Drug 
                          Addiction Condition

     Present law
       Federal law requires SSI recipients whose drug addiction or 
     alcoholism is a contributing factor material to their 
     disability to undergo appropriate treatment, if it is 
     available.
     
[[Page H15409]]

     House bill
       No provision.
     Senate amendment
       The Senate amendment requires the Commissioner of Social 
     Security to refer to the appropriate State agency 
     administering the State plan for substance abuse services any 
     disabled SSI recipient who is identified as having an 
     alcoholism or drug addiction condition. Any individual who 
     refuses to accept the referred services without good cause is 
     no longer eligible for SSI benefits.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.

                        D. Conforming Amendments

   E. Supplemental Funding for Alcohol and Substance Abuse Treatment 
                                Programs

     Present law
       SSI cash benefits are limited to 3 years for recipients 
     whose drug addiction or alcoholism is a contributing factor 
     material to their disability. These individuals must undergo 
     ``appropriate substance abuse treatment.'' While the Social 
     Security Administration currently contracts with agencies for 
     referral, monitoring and reporting of compliance with 
     treatment, it does not pay for treatment. Medicaid benefits 
     are to continue beyond the 3-year limit, as long as the 
     individual remains disabled, unless the individual was 
     expelled from SSI for noncompliance with treatment.
     House bill
       For four years beginning with FY 1997, $100 million of the 
     savings realized from denying cash SSI payments and Medicaid 
     coverage to individuals whose drug addiction or alcoholism is 
     a contributing factor material to their disability will be 
     targeted to drug treatment and drug abuse research. Each 
     year, $95 million will be expended through the Federal 
     Capacity Expansion Program (CEP) to expand drug treatment 
     availability and $5 million will be allocated to the National 
     Institute on Drug Abuse to be expended solely on the 
     medication development project to improve drug abuse and drug 
     treatment research.
     Senate amendment
       For two years beginning with FY 1997, $50 million will be 
     spent to fund additional drug (including alcohol) treatment 
     programs and services through Substance Abuse Prevention and 
     Treatment Block Grant.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.

                           F. Effective Dates

     Present law
       Not applicable.
     House bill
       This section of the bill becomes effective on October 1, 
     1995, and applies with respect to months beginning on or 
     after that date.
     Senate amendment
       Generally, changes apply to applicants for benefits for 
     months beginning on or after the date of enactment. An 
     individual receiving benefits on the date of enactment whose 
     eligibility would end would continue to be eligible for 
     benefits until January 1, 1997. The Commissioner of Social 
     Security shall notify individuals losing eligibility within 
     three months of the date of enactment.
       In addition, in the case of an individual with an 
     alcoholism or drug addiction condition who is receiving SSI 
     benefits on the date of enactment, the representative payee 
     requirement will apply on or after the first continuing 
     disability review occurring after enactment. For recipients 
     with an addiction who are over the age of 65, the 
     Commissioner will determine appropriate representative payee 
     requirements.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.

                             Reapplication

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       Individuals receiving SSI benefits on the date of enactment 
     who are notified of their termination of eligibility and who 
     desire to reapply for benefits must do so within four months 
     after the date of enactment. The Commissioner of Social 
     Security will determine within one year after the date of 
     enactment the eligibility of individuals who reapply.
     Conference agreement
       This section was deleted from the conference agreement on 
     H.R. 4 because it was included in H.R. 2684, The Senior 
     Citizens' Right to Work Act.


  2. 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 201)

       See description in section 103 of title 1 of the conference 
     agreement.

               Subtitle B--Benefits for Disabled Children


           1. Definition and Eligibility Rules (Section 211)

                 A. Definition of Childhood Disability

                      Comparable severity repealed

     Present law
       A needy individual under age 18 is determined eligible for 
     SSI ``if he suffers from any medically determinable physical 
     or mental impairment of comparable severity'' with that of an 
     adult considered work disabled and otherwise eligible for SSI 
     benefits.
     House bill
       The ``comparable severity'' test in statute for determining 
     disability of children (defined as individuals under 18) is 
     repealed.
     Senate amendment
       Similar to the House bill.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                         Disability definition

     Present law
       There is no definition of childhood disability in the 
     statute. Under current disability evaluation procedures, to 
     be found disabled, a child must have a medically determinable 
     physical or mental impairment that substantially reduces his 
     or her ability to independently and effectively engage in 
     age-appropriate activities. This impairment must be expected 
     to result in death or to last for a continuous period of not 
     less than 12 months.
     House bill
       Eligibility, as determined by the Commissioner of Social 
     Security, for cash benefits or new medical or non-medical 
     services described below will be based solely on: (1) meeting 
     the non-disability-related requirement for eligibility; (2) 
     meeting or equalling the current Listing of Impairments set 
     forth in the Code of Federal Regulations (i.e., the Listing 
     which is currently in regulations is to be codified in 
     statute); and (3) being a disabled SSI recipient in the month 
     prior to this provision's effective date or being in a 
     hospital, skilled nursing facility, residential treatment 
     facility, intermediate care facility for the mentally 
     retarded, or otherwise would be placed in such a facility if 
     the child were not receiving personal assistance necessitated 
     by the impairment. Personal assistance refers to assistance 
     with activities of daily living such as eating and toileting.
     Senate amendment
       Adds a new statutory definition of childhood disability. An 
     individual under the age of 18 is considered disabled for the 
     purposes of this section if the 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.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     technical modification and provides that the Commissioner of 
     Social Security shall submit for review to the committees of 
     jurisdiction in the Congress any final regulation with 
     supporting documentation pertaining to the eligibility of 
     individuals under age 18 for SSI benefits at least 45 days 
     before the effective date of such regulation.
       By this definition, the conferees intend that only needy 
     children with severe disabilities be eligible for children's 
     SSI and that the Listing and other disability determination 
     regulations as modified by the conference agreement properly 
     reflect the severity of disability contemplated by the 
     statutory definition. In those areas of the Listing that 
     involve domains of functioning, the conferees expect no less 
     than market limitations in no fewer than two domains or 
     extreme limitations in at least one domain as the standard 
     for qualification. The conferees are also aware that the 
     Social Security Administration uses the term ``severe'' to 
     often mean ``other than minor'' in an initial screening 
     procedure for disability determination and in other places. 
     The conferees, however, use the term ``severe'' in its common 
     sense meaning.
       The conferees do not intend to suggest by this definition 
     of childhood disability that every child need be especially 
     evaluated for functional limitations, or that this definition 
     creates a supposition for any such examination. Under current 
     procedures for writing individual listings, level of 
     functioning is an explicit consideration in deciding which 
     impairment, with what medical or other findings, are of 
     sufficient severity to be included in the Listing. 
     Nonetheless, the conferees do not intend to limit the use of 
     functional assessments and functional information, if 
     reflecting sufficient severity and are otherwise appropriate.

                B. Changes to Childhood SSI Regulations

                 Reliance on ``Listing of Impairments''

     Present law
       Under the disability determination process for children, 
     individuals whose impairments do not meet or equal the 
     ``Listing of Impairments'' in Federal regulations are subject 
     to an ``individualized Functional Assessment (IFA)''. This 
     assessment examines whether
     the child can engage in age-appropriate activities 
     effectively. If the child cannot, he or she is determined 
     disabled.
     House bill
       The Commissioner of Social Security must annually report to 
     Congress on the Listings 

[[Page H15410]]
     and recommend any needed revisions. Individualized functional 
     assessments are no longer grounds for determination of 
     disability.
     Senate amendment
       The Commissioner of Social Security shall discontinue the 
     individualized functional assessment for children set forth 
     in the Code of Federal Regulations.
     Conference agreement
       The conference agreement follows the Senate amendment. The 
     conferees agree that a significant amount of the growth of 
     the children's SSI program resulted from regulations issued 
     in 1991 by the Social Security Administration establishing 
     the individualized functional assessment which liberalized 
     program eligibility criteria beyond Congressional intent. 
     Children with modest conditions or impairments were made 
     eligible for SSI due to the individualized functional 
     assessment, and therefore should not be eligible for SSI 
     benefits.

       Multiple references to ``Maladaptive Behavior'' eliminated

      Present law
       Under the disability determination process for children, 
     the Social Security Administration first determines if a 
     child meets or equals the Listings of Impairments. Under the 
     Listings that relate to mental disorders, maladaptive 
     behavior may be scored twice, in domains of social 
     functioning and of personal/behavior functioning.
     House bill
       No provision.
     Senate amendment
       Requires the Commissioner of Social Security to eliminate 
     references in the Listing to maladaptive behavior among 
     medical criteria for evaluation of mental and emotional 
     disorders in the domain of personal/behavioral function.
     Conference agreement
       The conference agreement follows the Senate amendment.

  C. Medical Improvement Review Standard as it Applies to Individuals 
                          Under the Age of 18

       This section in the legislative language contains technical 
     modifications to the medical improvement review standard 
     based on the new definition of childhood disability.

                         D. Amount of Benefits

     Present law
       A child who is determined to be disabled and who is 
     eligible on the basis of his income and resources shall be 
     paid benefits. If the child lives at home, the parents' 
     financial resources are deemed available to the child. If the 
     same child is institutionalized, after the first month away 
     home only the child's own financial resources are deemed to 
     be available for the child's care. The child may then qualify 
     for a reduced (``personal needs allowance'') SSI benefit and 
     for Medicare coverage. Because of these ``deeming'' rules, 
     some children who could have been cared for at home might 
     remain in institutions because, if they were to return home, 
     they would lose Medicaid benefits. Medicaid ``waivers'' allow 
     States to disregard the deeming rule, provide Medicaid 
     coverage, and pay for support services to help families keep 
     children at home.
     House bill
       Children may be eligible for cash SSI payments in one of 
     three circumstances:
       (1) if a child who is currently (defined as during the 
     month prior to the first month for which this provision takes 
     effect) receiving cash SSI payments by reason of disability 
     will continue to be eligible for cash SSI benefits if the 
     child has an impairment that meets or equals an impairment 
     specified in the Listing of Impairments. Children receiving 
     cash benefits under the grandfather provision whose financial 
     eligibility is suspended would continue to receive cash 
     benefits if financial eligibility is restored;
       (2) for all other children, a child may only receive cash 
     SSI payments if the child has an impairment which meets or 
     equals an impairment specified in the Listings of Impairments 
     cited above, and is either in a hospital, skilled nursing 
     facility, residential treatment facility, intermediate care 
     facility for the mentally retarded, or otherwise would be 
     placed in such a facility if the child were not receiving 
     personal assistance necessitated by the impairment. Personal 
     assistance refers to assistance with activities of daily 
     living such as eating and toiling; and
       (3) if a child who is overseas as a dependent of a member 
     of the U.S. Armed Forces and who is eligible for block grant 
     services but not eligible for cash benefits under the new 
     criteria shall be eligible for cash benefits. Cash benefits 
     cease when the child returns to the United States.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows a modified version of the 
     House bill. Once an eligible child is determined to meet the 
     definition of disability, the amount of the individual's cash 
     benefit will be based on whether the child meets the newly 
     developed criteria for needing personal assistance enabling 
     the child to remain with their family at home. This criteria 
     is as follows:
       For a child under age 6--such individual has a medical 
     impairment that severely limits the individual's ability to 
     function in a manner appropriate to individuals of the same 
     age and who without special personal assistance would require 
     specialized care outside the individual's home; or
       For a child age 6 or over--such individual requires 
     personal care assistance with: (a) at least two activities of 
     daily living, (b) continual 24-hour supervision or monitoring 
     to avoid causing injury or harm to self or others, or (c) the 
     administration of medical treatment; and who without such 
     assistance would require full-time or part-time specialized 
     care outside the individual's home.
       The conferees have provided a different definition of the 
     eligibility for children under age 6 and over age 6 because 
     of the differing expectations of age appropriate behavior for 
     children above and below this age. As described below, the 
     conferees have requested the Commissioner of Social Security 
     to undertake a study on ways to improve these definitions and 
     the disability determination process.
       Children with disabilities meeting this criteria will 
     receive 100 percent of the benefit amount provided by current 
     law. Disabled children who do not meet this criteria will 
     receive seventy-five percent of the benefit amount provided 
     by current law. The conferees note that the SSI benefit under 
     either tier is very generous. In 1995, the average SSI 
     benefit for a child recipient is $5,040. Seventy-five percent 
     of that benefit would be $3,780. Both the maximum children's 
     SSI benefit or seventy-five percent of the maximum benefit is 
     greater than the maximum 1995 AFDC benefit for a family of 
     three in many States.
       The conferees acknowledge that many families of disabled 
     children incur expenses beyond those by families of 
     nondisabled children. However, the conferees agree that the 
     extra expenses related to a child's disability vary widely 
     depending on the nature and degree of disability and the 
     availability of Federal, State, and local health care and/or 
     disability programs. In order to reduce the inequity of the 
     current system which provides one benefit level to all 
     families without regard to additional disability-related 
     financial needs, the conferees agree to establish a two-
     tiered benefit system. The higher tier is intended for 
     families of children with the most severe disabilities who 
     require full or part-time personal assistance which would 
     prevent a parent from working full-time or which would 
     require the presence of a personal assistance provider.
       The conferees also believe that Congress should investigate 
     whether the unmet needs of families of disabled children 
     could be better and more efficiently met through services, 
     such as mental health treatment or purchase of items of 
     assistive technology, rather than cash payments. In the 
     twenty three years since the SSI program was created, 
     substantial new Federal programs have been authorized to 
     assist children with disabilities, including Federal, State 
     and local funding of special education and expansion of 
     Medicaid. The impact of these programs on cash needs of 
     children with disabilities merits further investigation by 
     Congress.
       

                  E. Effective Dates and Other Changes

     Present law
       Not applicable.
     House bill
       Changes apply to benefits for months beginning ninety or 
     more days after enactment, without regard to whether 
     regulations have been issued. Recipients of SSI cash benefits 
     during the month of enactment who would lose eligibility 
     under the House bill may continue to receive SSI benefits for 
     up to 6 months.
     Senate amendment
       The Senate amendment changes apply to applicants for months 
     beginning on or after the date of enactment, without regard 
     to whether regulations have been issued. However, the 
     Commissioner must issue necessary regulations within two 
     months of enactment. For child SSI recipients who were 
     eligible for SSI on the date of enactment but who would lose 
     eligibility under the Senate amendment, the changes would not 
     take effect until January 1, 1997. The Commissioner is to 
     redetermine the eligibility of these persons within one year 
     of enactment.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that the effective date for the two-tiered 
     benefit system is January 1, 1997, for current recipients and 
     new applications. The conferees agreed to require the 
     Commissioner to report to Congress within 180 days regarding 
     the progress made in implementing the SSI children's 
     provisions.

                                 Notice

     Present law
       Not applicable.
     House bill
       Not later than one month after the date of enactment, the 
     Commissioner must notify individuals whose eligibility for 
     SSI benefits will terminate.
     Senate amendment
       Within three months of enactment, the Commissioner must 
     notify individuals whose eligibility for SSI will terminate.
     Conference agreement
       The conference agreement follows the Senate amendment.

    New provision for administrative funds for the Social Security 
                             Administration

     Present law
       Not applicable.
     
[[Page H15411]]

     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The conferees recognize that implementation of the SSI 
     provisions by the Social Security Administration is a big job 
     and have provided $300 million to assist the agency meeting 
     its obligations. The conferees are very mindful of the 
     problems encountered by the Social Security Administration in 
     the early 1980s in conducting a large number of 
     redeterminations and continuing disability reviews, and 
     strongly urge the Commissioner to conduct the 
     redeterminations and continuing disability reviews required 
     in this bill in an orderly and careful manner.

         Block grants to States for children with disabilities

                         Entitlement to grants

     Present law
       Not applicable.
     House bill
       Each State that meets the requirements listed below for FY 
     1997 or later years shall be entitled to receive a grant 
     equal to the State's allotment for that fiscal year. The 
     Commissioner of Social Security will make block grants to 
     States for the purpose of providing specified medical and 
     non-medical benefits for children who have an impairment 
     which meets or equals an impairment specified in the Listing 
     of Impairments. Grants are an entitlement to eligible States 
     on behalf of qualifying children, not an entitlement to any 
     such child.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                              Requirements

     Present law
       Not applicable.
     House bill
       Each State must establish a program to provide block grant 
     services. The State will submit to the Commissioner an 
     application for the grant. In the application, the State 
     agrees it must spend grant funds to provide authorized 
     services designed to meet the unique needs of qualifying 
     children. The application must also contain information, 
     agreements, and assurances required by the Commissioner. In 
     providing authorized services, States will make every 
     reasonable effort to obtain payment for the services from 
     other Federal or State programs that provide such services. 
     States will expend the grant only to the extent that payments 
     from other programs are not available.
       In order to receive a block grant under this section, the 
     State must agree to maintain non-Federal spending for any 
     purposes designed to meet the needs of qualifying children 
     with physical or mental impairments. States have discretion 
     to select the purposes for which the State expends non-
     Federal amounts, within the purpose of providing for the 
     needs of qualifying children. The Consumer Price Index will 
     be used to adjust for inflation in judging whether the State 
     meets the maintenance of effort requirements in future years.
       No child who has an impairment which meets or equals an 
     impairment specified in the Listing of Impairments will be 
     denied the opportunity to apply for services and to have his 
     or her case assessed to determine the child's service needs.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                           Authority of State

     Present law
       Not applicable.
     House bill
       The following decisions are in the discretion of a State:
       (1) which authorized services to provide;
       (2) who among qualifying children receives services; and
       (3) the number of services provided a qualifying child and 
     their duration.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                          Authorized services

     Present law
       Not applicable.
     House bill
       The Commissioner shall issue regulations designating the 
     purposes for which grants may be spent by States. The 
     Commissioner must ensure that services on the list are 
     designed to meet the unique needs of qualifying children that 
     arise from their physical and mental impairments, that both 
     medical and non-medical services are included, and that cash 
     assistance is not available through the block grant.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                           General provisions

     Present law
       Not applicable.
     House bill
       Necessary regulations are to be issued, but payments under 
     the block grant must begin not later than January 1, 1997, 
     regardless of whether final rules have been issued.
       The value of the authorized services provided through the 
     block grant cannot be taken into account in determining 
     eligibility for, or the amount of, benefits or services under 
     any Federal or Federally-assisted program. For the purposes 
     of Medicaid, each qualifying child shall be considered to be 
     a recipient of Supplemental Security Income benefits under 
     this title.
       States are encouraged to use an existing delivery system to 
     administer block grant services.
       States that do not participate in offering block grant 
     services are not permitted to use social security numbers in 
     the administration of any tax, public assistance, driver's 
     license or motor vehicle registration law. (Because of the 
     extreme duress this would impose on States, this is regarded 
     as effectively a ``requirement.'')
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                              Definitions

     Present law
       Not applicable.
     House bill
       A State's ``Allotment'' of block grant funds equals the 
     product of 75 percent of the average cash SSI benefit in the 
     State and the number of children in the State receiving non-
     cash SSI benefits under this section.
       ``Authorized Service'' means each service authorized by the 
     Commissioner.
       A ``Qualifying Child'' means an individual under 18 years 
     of age who is eligible for cash benefits under this title by 
     reason of disability; or an individual under 18 years of age 
     who is eligible for SSI non-cash benefits as described above. 
     The Commissioner will determine whether individuals meet the 
     criteria to the eligible for block grant services.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                             Effective date

     Present law
       Not applicable.
     House bill
       Block grants are available to eligible States beginning in 
     FY 1997.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

   2. Eligibility redeterminations and continuing disability reviews 
                             (section 212)

     A. Continuing Disability Reviews Relating to Certain Children

     Present law
       Federal law requires that SSI recipients be subject to a 
     Continuing Disability Review (CDR) at least once every 3 
     years, except for recipients whose impairments are judged to 
     be permanent. The Commissioner is required to conduct 
     periodic CDRs of at least 100,000 disabled SSI recipients per 
     year for a period of 3 years (i.e., FY 1996-1998) and report 
     to Congress on CDRs for disabled SSI recipients no later than 
     October 1, 1998.
     House bill
       In addition to the provisions of current law, at least once 
     every 3 years the Commissioner must conduct CDRs for SSI 
     benefits of children receiving benefits. For children who are 
     eligible for benefits and whose medical condition is not 
     expected to improve, the requirement to perform such reviews 
     does not apply
     Senate amendment
       Same as the House bill, with minor differences in wording. 
     At the time of review the parent or guardian must present 
     evidence demonstrating that the recipient is and has been 
     receiving appropriate treatment for his or her disability.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment with modification requiring evidence of needed 
     treatment for continued representative payee status.

B. Disability Eligibility Redeterminations Required for SSI Recipients 
                       Who Attain 18 Years of Age

     Present law
       Current law also specifies that the Commissioner must 
     reevaluate under adult disability criteria the eligibility of 
     at least one-third of SSI children who turn age 18 in each of 
     the fiscal years 1996, 1997, and 1998 (the CDR must be 
     completed before these children reach age 19) and report to 
     Congress no later than October 1, 1998, on CDRs for disabled 
     children.
     House bill
       The eligibility for all children qualifying for SSI 
     benefits must be redetermined using the adult criteria within 
     one year after turning 18 years of age. The review will be 
     considered a substitute for any other review required under 
     the changes made in this section.
     
[[Page H15412]]

       Not later than October 1, 1998, the Commissioner of Social 
     Security must submit to the House Committee on Ways and Means 
     and the Senate Committee on Finance a report on disability 
     reviews for children enrolled in SSI.
       The ``minimum number of reviews'' and the ``sunset'' 
     provisions of section 207 of the Social Security Independence 
     and Program Improvements Act of 1994 are eliminated.
     Senate amendment
       Same as the House bill with differences in wording. Like 
     the House bill, the Senate amendment repeals section 207 of 
     the Social Security Independence and Program Improvements Act 
     of 1994.
     Conference agreement
       The conference agreement generally follows the House bill 
     with modification that the Commissioner does not have to 
     submit a report to Congress on disability reviews for SSI 
     children.

  C. Continuing Disability Review Required for Low Birth Weight Babies

     Present law
       Not applicable.
     House bill
       A review for continuing disability must be performed for 
     all children qualifying for SSI due to low birth weight when 
     the child has received benefits for 12 months.
     Senate amendment
       A review must be conducted 12 months after the birth of a 
     child whose low birth weight is a contributing factor to the 
     child's disability. At the time of review, the parent or 
     guardian must present evidence demonstrating that the 
     recipient is and has been receiving appropriate treatment for 
     his or her disability.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification requiring evidence of needed treatment for 
     continued representative payee status.

                           D. Effective Date

     Present law
       Not applicable.
     House bill
       This section applies to benefits for months beginning 
     ninety or more days after enactment, regardless of whether 
     regulations have been issued.
     Senate amendment
       Applies to benefits for months beginning on or after the 
     date of enactment, regardless of whether regulations have 
     been issued.
     Conference agreement
       The conference agreement follows the Senate amendment.

        3. Additional accountability requirements (section 213)

        A. Disposal Of Resources for Less Than Fair Market Value

     Present law
       No provision. There is a transfer of assets provision in 
     Medicaid law that is similar to H.R. 4 provision (Sec. 
     1917(c) of the Social Security Act).
     House bill
       The House bill delays eligibility for any child applicant 
     whose parents or guardians, in order to qualify a child for 
     benefits, dispose of assets for less than fair market value 
     within 36 months of the date of application. The provision 
     stipulates that any assets in a trust in which the child 
     (i.e., parent or representative payee) has control shall be 
     considered assets of the child and subject to the 36-month 
     ``look-back'' rule. The delay (in months) is equal to the 
     amount of assets divided by the SSI standard benefit.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical modifications.

                  B. Treatment of Assets Held in Trust

       This section is included in the law as a result of 
     technical changes submitted by the Social Security 
     Administration.

                  C. Requirement to Establish Account

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       At the request of the representative payee (i.e., the 
     parent), the Commissioner of Social Security may pay any lump 
     sum payment for the benefit of a child into a dedicated 
     savings account for the purpose of covering the costs of 
     needs related to the child's disability and/or increasing the 
     child's independence. The dedicated savings account could 
     only be used to purchase education and job skills training, 
     special equipment or housing modifications related to the 
     child's disability, and appropriate therapy and 
     rehabilitation. The funds in these accounts would not be 
     counted as resources in determining SSI eligibility. This 
     provision would take effect upon enactment.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment with modification requiring the dedicated savings 
     account (instead of it being optional at the request of the 
     representative payee), expanding the list of allowable 
     expenses, and requiring the Commissioner to establish a 
     system for accountability monitoring.

                         Conforming amendments

     Present law
       Not applicable.
     House bill
       The House bill makes a number of conforming amendments, 
     reflecting the addition of non-cash SSI benefits as described 
     above.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate Amendment (i.e. 
     no provision).

          Improvements to disability evaluations for children

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Senate amendment directs the Commissioner of Social 
     Security, within sixty days of enactment, to issue a request 
     for comments in the Federal Register regarding improvements 
     in the disability evaluation and determination procedures for 
     children under age 18. The Commissioner must review the 
     comments and issue regulations implementing changes within 18 
     months after enactment
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).

   Temporary eligibity for cash benefits for poor disabled children 
 residing in States applying alternative income eligibility standards 
                             under medicaid

     Present law
       States generally are required to provide Medicaid coverage 
     for recipients of SSI. However, States may use more 
     restrictive eligibility standards for Medicaid than those for 
     SSI if they were using those standards on January 1, 1972 
     (before implementation of SSI). States that have chosen to 
     apply at least one more restrictive standard are known as 
     ``section 209(b)'' States, after the section of the Social 
     Security Amendments of 1972 (P.L. 92-603) that established 
     the option. These States may vary in their definition of 
     disability, or in their standards related to income or 
     resources. There are 12 section 209(b) States: Connecticut, 
     Hawaii, Illinois, Indiana, Minnesota, Missouri New Hampshire, 
     North Carolina, North Dakota, Ohio, Oklahoma, and Virginia.
     House bill
       The House bill provides for temporary eligibility for cash 
     SSI benefits (through the end of FY 1996) for children who 
     live in States that apply alternative income eligibility 
     standards under Medicaid (also known as ``209(b)'' States).
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).


  4. Reduction of cash benefits payable to institutionalized children 
   whose medical costs are covered by private insurance (section 214)

     Present law
       Federal law stipulates that when an individual enters a 
     hospital or other medical institution in which more than half 
     of the bill is paid by the Medicaid program, his or her 
     monthly SSI benefit standard is reduced to $30 per month. 
     This personal needs allowance is intended to pay for small 
     personal expenses, with the cost of maintenance and medical 
     care provided by the Medicaid program.
     House bill
       Cash SSI payments to institutionalized children would be 
     reduced for those whose medical costs are covered by private 
     insurance.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

    Additional accountability requirements for parents or guardians

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires a disabled child's 
     representative payee (usually the parent) to document 
     expenditures. These expenditures would be subject to 
     increased review by the Social Security Administration. 
     Effective for benefits paid after enactment.
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).


                      5. Regulations (section 215)

     Present law
       Not applicable.
     House bill
       The Commissioner of Social Security and the Secretary of 
     HHS will prescribe necessary regulations within three months 
     after enactment of this Act.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill. 
     
[[Page H15413]]


Examination of mental listing used to determine eligibility of children 
                for SSI benefits by reason of disability

     Present law
       Section 202 of the Social Security Independence and Program 
     Improvements Act of 1994 established a Childhood Disability 
     Commission to study the desirability and methods of 
     increasing the extent to which benefits are used in the 
     effort to assist disabled children in achieving independence 
     and engaging in substantial gainful activity. The Commission 
     was also charged with examining the effects of the SSI 
     program on disabled children and their families.
     House bill
       The Childhood Disability Commission must review the mental 
     listing used by the Social Security Administration to 
     determine child SSI eligibility. The Commission should 
     conduct this investigation to ensure that the criteria in 
     these listings are appropriate and that SSI eligibility is 
     limited to children with serious disabilities for whom 
     Federal assistance is necessary to improve the child's 
     condition or quality of life.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision) due to the Childhood Disability 
     Commission having completed their final report.

Limitation on payments to Puerto Rico, the U.S. Virgin Islands and Guam 
         under programs of aid to the aged, blind, or disabled

       See description in section 108 of title I of the conference 
     agreement.

               Subtitle C--State Supplementation Programs


 1. Repeal of Maintenance of Effort Requirement Applicable to Optional 
    State Programs for Supplementation of SSI Benefits (Section 221)

     Present law
       Since the beginning of the SSI program, States have had the 
     option to supplement (with State funds) the Federal SSI 
     payment. The purpose of section 1618 was to encourage States 
     to pass along to SSI recipients the amount of any Federal SSI 
     benefit increase. Under section 1618, a State that is found 
     to be not in compliance with the ``pass along/maintenance of 
     effort provision'' is subject to loss of its Medicaid 
     reimbursements. Section 1618 allows States to comply with the 
     ``pass along/maintenance of effort'' provision by either 
     maintaining their State supplementary payment levels at or 
     above 1983 levels or by maintaining total annual expenditures 
     for supplementary payments (including any Federal cost-of-
     living adjustment) at a level at least equal to their prior 
     12-month period, provided the State was in compliance for 
     that period. In effect, section 1618 requires that once a 
     State elects to provide supplementary payments it must 
     continue to do so. [Sec. 1618 of the Social Security Act]
     House bill
       The House bill repeals the maintenance of effort 
     requirements (Sec. 1618) applicable to optional State 
     programs for supplementation of SSI benefits effective date 
     of enactment.
     Senate amendment
       Similar to the House bill.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that the effective date is the date of 
     enactment.

          Limited Eligibility of Noncitizens for SSI Benefits

       See description in title IV of the conference agreement.

   Subtitle D--Studies Regarding Supplemental Security Income Program


                 1. Annual Report on SSI (Section 231)

     Present law
       To date, the Department of Health and Human Services and 
     now the Social Security Administration have collected, 
     compiled, and published annual and monthly SSI data, but 
     Federal law does not require an annual report on the SSI 
     program.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires the Commissioner of Social 
     Security to prepare and provide to the President and the 
     Congress an annual report on the SSI program, which includes 
     specified information and data. The report is due May 30 of 
     each year.
     Conference agreement
       The conference agreement follows the Senate amendment.


       2. Study of Disability Determination Process (Section 232)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       Within 90 days of enactment, the Commissioner must contract 
     with the National Academy of Sciences or another independent 
     entity to conduct a comprehensive study of the disability 
     determination process for SSI and SSDI. The study must 
     examine the validity, reliability and consistency with 
     current scientific standards of the Listings of Impairments 
     cited above.
       The study must also examine the appropriateness of the 
     definitions of disability (and possible alternatives) used in 
     connection with SSI and SSDI; and the operation of the 
     disability determination process, including the appropriate 
     method of performing comprehensive assessments of individuals 
     under age 18 with physical or mental impairments.
       The Commissioner must issue interim and final reports of 
     the findings and recommendations of the study within 18 
     months and 24 months, respectively, from the date of contract 
     for the study.
     Conference agreement
       The conference agreement follows the Senate amendment.


            3. General Accounting Office Study (Section 233)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires the General Accounting Office 
     to study and report on the impact of title II of the Senate 
     amendment on the SSI program by January 1, 1998.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that the study also include extra expenses 
     incurred by families of children receiving SSI that are not 
     covered by other Federal, State, or local programs.

      Subtitle E--National Commission on the Future of Disability


                     1. Establishment (Section 241)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission is established and expenses are to be paid 
     from funds appropriated to the Social Security 
     Administration.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     modification that there are authorized to be appropriated 
     such sums as are necessary to carry out the purpose of the 
     Commission.


                        2. Duties (Section 242)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission must study all matters related to the 
     nature, purpose and adequacy of all Federal programs for the 
     disabled, and especially SSI and SSDI.
       The Commission must examine: projected growth in the number 
     of individuals with disabilities and the implications for 
     program planning; possible performance standards for 
     disability programs; the adequacy of Federal rehabilitation 
     research and training; and the adequacy of policy research 
     available to the Federal government and possible 
     improvements.
       The Commission must submit to the President and the proper 
     Congressional committees recommendations and possible 
     legislative proposals effecting needed program changes.
     Conference agreement
       The conference agreement follows the Senate amendment.


                      3. membership (section 243)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission is to be composed of 15 members, appointed 
     by the President and Congressional leadership. Members are to 
     be chosen based on their education, training or experience, 
     with consideration for representing the diversity of 
     individuals with disabilities in the U.S.
       The Comptroller General must serve as an ex officio member 
     of the Commission to advise on the methodology of the study. 
     With the exception of the Comptroller General, no officer or 
     employee of any government may serve on the Commission.
       Members are to be appointed not later than 60 days after 
     enactment. Members serve for the life of the Commission, 
     which will be headquartered in D.C. and meet at least 
     quarterly.
       The Senate amendment includes a number of specific 
     requirements on the Commission regarding quorums, the naming 
     of chairpersons, member replacement, and benefits.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification deleting the Comptroller General as a ex officio 
     member and deleting the prohibition against officer or 
     employee of any government being appointed to serve on the 
     Commission. The conferees added that the Commission 
     membership will also reflect the general interest of the 
     business and taxpaying community, both of which are often 
     impacted by Federal disability policy.


              4. Staff and Support Services (Section 244)

     Present law
       Not applicable.
     House bill
       No provision.
     
[[Page H15414]]

     Senate amendment
       The Commission will have a director, appointed by the 
     Chair, and appropriate staff, resources, and facilities.
     Conference agreement
       The conference agreement follows the Senate amendment.


                        5. Powers (Section 245)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission may conduct public hearings and obtain 
     information from Federal agencies necessary to perform its 
     duties.
     Conference agreement
       The conference agreement follows the Senate amendment.


                        6. Reports (Section 246)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission must issue an interim report to Congress and 
     the President not later than 1 year prior to terminating. A 
     final public report must be submitted prior to termination.
     Conference agreement
       The conference agreement follows the Senate amendment.


                      7. Termination (Section 247)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission will terminate 2 years after first having 
     met and named a chair and vice chair.
     Conference agreement
       The conference agreement follows the Senate amendment.

                 Subtitle F--Retirement Age Eligibility


1. Eligibility for SSI Benefits Based on Social Security Retirement Age 
                             (Section 251)

     Present law
       The SSI program guarantees a minimum level of cash income 
     to all aged, blind, or disabled persons with limited 
     resources. The SSI program defines ``aged'' as persons age 65 
     and older.
     House bill
       No provision.
     Senate amendment
       The Senate amendment deletes references to age 65 and 
     instead defines as ``aged'' those persons who reach 
     ``retirement age'' as defined by the Social Security program. 
     The Social Security ``retirement age''--the age at which 
     retired workers receive benefits that are not reduced for 
     ``early retirement''--gradually will rise from 65 to 67. It 
     will do so in two steps. First, the retirement age will 
     increase by 2 months for each year that a person was born 
     after 1937, until it reaches age 66 for those born in 1943 
     (i.e., those who attain age 66 in 2009). Second, it will 
     again increase by 2 months for each year that a person was 
     born after 1954 until it reaches age 67 for those born after 
     1959.
     Conference agreement
       The conference agreement follows the Senate amendment.

                  Title III. Child Support Enforcement

     Subtitle A--Eligibility for Services; Distribution of Payments


                      1. References (Section 300)

     Present law
       No provision.
     House bill
       Any reference in this title expressed in terms of an 
     amendment to or repeal of a section or other provision is 
     made to the Social Security Act.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


   2. State Obligation to Provide Child Support Enforcement Services 
                             (Section 301)

     Present law
       States are required to establish paternity for children 
     born out of wedlock if they are recipients of AFDC or 
     Medicaid, and to obtain child and spousal support payments 
     from noncustodial parents of children receiving AFDC, 
     Medicaid benefits, or foster care maintenance payments. 
     States must provide child support collection or paternity 
     determination services to persons not otherwise eligible if 
     the person applies for services. Federal law requires States 
     to cooperate with other States in establishing paternity (if 
     necessary), locating absent parents, collecting child support 
     payments, and carrying out other child support enforcement 
     functions.
     House bill
       States must provide services, including paternity 
     establishment and establishment, modification, or enforcement 
     of support obligations, for children receiving benefits under 
     part A (Temporary Assistance for Needy Families block grant-
     TANF), part B (child protection block grant), Medicaid, and 
     any child of an individual who applies for services. States 
     must enforce support obligations with respect to children in 
     their caseload and the custodial parents of such children. 
     States must also make child support enforcement services 
     available to individuals not residing within the State on the 
     same terms as to individuals residing within the State. The 
     provision also makes minor technical amendments to SSA 
     section 454.
     Senate amendment
       Similar to House provision with one exception: instead of 
     reference to part B as in House bill, reference is to part 
     E--foster care and adoption assistance.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment except the House recedes by agreeing that States be 
     required to provide child support services only to children 
     actually receiving foster care payments.


  3. Distribution of Child Support Collections (Sections 302 and 374)

                  A. Distribution of Collected Support

     Present law
       To receive AFDC benefits, a custodial parent must assign to 
     the State any right to collect child support payments. This 
     assignment covers current support and any arrearages, and 
     lasts as long as the family receives AFDC. Federal law 
     requires that child support collections be distributed as 
     follows: First, up to the first $50 in current support is 
     paid to the AFDC family (a ``disregard'' that does not affect 
     the family's AFDC benefit or eligibility status). Second, the 
     Federal and State governments are reimbursed for the AFDC 
     benefit paid to the family in that month. Third, if there is 
     money left, the family receives it up to the amount of the 
     current month's child support obligation. Fourth, if there is 
     still money left, the State keeps it to reimburse itself for 
     any arrearages owed to it under the AFDC assignment (with 
     appropriate reimbursement of the Federal share of the 
     collection to the Federal government). If no arrearages are 
     owed the State, the money is used to pay arrearages to the 
     family; such moneys are considered income under the AFDC 
     program and would reduce the family's AFDC benefit.
     House bill
       To receive funds from the Temporary Assistance for Needy 
     Families (TANF) block grant, custodial parents must assign to 
     the State their right to child support payments. The bill 
     ends the $50 child support disregard to (TANF) families. 
     Families receiving cash assistance--States are given the 
     option of passing the entire child support payments through 
     to families. If States elect this option, they must pay the 
     Federal share of the collection to the Federal government. 
     Families that formerly received cash assistance--Current 
     child support payments go to the family. Payments on 
     arrearages that accrued before or after the custodial parent 
     received cash assistance are paid to the family first if the 
     family leaves welfare. Only after all arrearages owed to the 
     custodial parent and children have been repaid are arrearages 
     owed to the State and Federal government repaid. Payments on 
     arrearages that accrued while the family received assistance 
     must be retained by the State. The State is required to keep 
     the State share of the collected amount, and pay to the 
     Federal government the Federal share of the amount collected 
     (to the extent necessary to reimburse amounts paid to the 
     family as cash assistance). As a general rule, States must 
     pay to the Federal government the Federal share of child 
     support collections for parents on the Temporary Family 
     Assistance program. This share is calculated using the 
     State's Medicaid match rate in effect in 1995 or in 
     subsequent years, whichever is greater. Families that never 
     received cash assistance--All child support payments go 
     directly to the family.
     Senate amendment
       Any rights to child support that were assigned to the State 
     before the effective date of the amendment are to remain so 
     assigned. Gives States the option of requiring TANF 
     applicants and recipients to assign to the State their rights 
     to child support payments. The amendment eliminates 
     references (in both the TANF block grant title of the 
     amendment and the CSE title) to the $50 child support 
     disregard, but does not explicitly eliminate the $50 child 
     support disregard. Families receiving cash assistance--States 
     are given the option of passing the entire child support 
     payment through to families. If States elect this option, 
     they must pay the Federal share of the collection to the 
     Federal government. Families that formerly received cash 
     assistance--Current child support payments go to the family. 
     Payments on arrearages that accrued after the custodial 
     parent left welfare are paid to the family. With respect to 
     payments on arrearages that accrued before or while the 
     family received assistance, the State may retain all or part 
     of the State share, and if the State does so, it must retain 
     and pay to the Federal Government the Federal share (to the 
     extent the amount retained does not exceed the cash 
     assistance paid to the family). The Federal share is 
     calculated using the State's Medicaid match rate in effect in 
     1995 or in subsequent years, whichever is greater. Families 
     that never received cash assistance--All child support 
     payments go directly to the 

[[Page H15415]]
     family. In addition, in the case of a family receiving cash assistance 
     from an Indian tribe, the child support collection is to be 
     distributed according to the agreement specified in the State 
     plan.
     Conference agreement
       The conference agreement modifies the House bill and Senate 
     amendment as follows: (1) the $50 pass-through is ended; (2) 
     beginning October 1, 1997, arrearages that accumulate during 
     the period after the family leaves welfare are paid to the 
     family prior to any payments to the State for assigned 
     support; and (3) beginning October 1, 2000, arrearages that 
     accumulated during the period before the custodial parent 
     went on welfare are also paid to the family prior to any 
     payments to the State for assigned support. (This includes 
     pre-welfare arrearages that were assigned to the State on or 
     after October 1, 1997 but that were not collected prior to 
     October 1, 2000.) An exception is made for any collections 
     through the tax refund intercept program, which are paid to 
     the State first, up to the amount of the remaining assigned 
     support, prior to any payments to the family.
       When fully implemented in 2000, the new order of assignment 
     and distribution of arrearage payments, according to whether 
     collections are made via the tax intercept or through any 
     other method, will be as follows:
       Tax intercept: First, post-welfare arrearages to State; 
     Second, pre-welfare arrearages to State; Third, post-welfare 
     arrearages to family; and Fourth, pre-welfare arrearages to 
     family.
       Other methods: First, post-welfare arrearages to family; 
     Second, pre-welfare arrearages to family; Third, post-welfare 
     arrearages to State; and Fourth, pre-welfare arrearages to 
     State.
       Conferees also agreed that if the amount of pre-welfare 
     arrearages paid to the family exceeded the amount saved by a 
     given State by ending the $50 passthrough and by other 
     methods of improving collections contained in this 
     legislation, the Federal government will pay that State an 
     amount equal to the difference between pre-welfare arrearage 
     payments to family and State savings caused by this 
     legislation.
       To further improve child support collections, conferees 
     agree to close a loophole in the bankruptcy code that allows 
     courts to dismiss child support debts that accumulated before 
     a child support order was legally established (see Section 
     374).

 B. Continuation of Service for Families Ceasing to Receive Assistance

     Present law
       Federal law requires States to continue providing child 
     support enforcement services to AFDC, Medicaid, and foster 
     care families who no longer qualify for AFDC benefits on the 
     same basis as in the case of those who receive benefits or 
     services, except that no application or request for services 
     is required.
     House bill
       When families leave the TANF program, States are required 
     to continue providing child support enforcement services to 
     them subject to the same conditions and on the same basis as 
     in the case of individuals who receive assistance.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           C. Effective Date

     Present law
       No provision.
     House bill
       The effective date for provisions relating to distribution 
     of support collected for families who formerly received cash 
     assistance is October 1, 1995. For all others it is October 
     1, 1999.
     Senate amendment
       The effective date for distribution of support collected 
     for families receiving cash assistance is October 1, 1999. 
     The effective date for the clerical amendments and provisions 
     relating to the distribution of child support collected for 
     families who formerly received cash assistance or who never 
     received cash assistance is October 1, 1995.
     Conference agreement
       The effective date for ending the $50 passthrough is 
     October 1, 1996 or sooner at State option. The effective date 
     for implementing the new distribution rules applying to post-
     welfare arrearages is October 1, 1997; for pre-welfare 
     arrearages, the effective date is October 1, 2000.


                  4. privacy safeguards (section 303)

     Present law
       Federal law limits the use or disclosure of information 
     concerning recipients of Child Support Enforcement Services 
     to purposes connected with administering specified Federal 
     welfare programs.
     House bill
       States must implement safeguards against unauthorized use 
     or disclosure of information related to proceedings or 
     actions to establish paternity or to enforce child support. 
     These safeguards must include prohibitions on release of 
     information where there is a protective order or where the 
     State has reason to believe a party is at risk of physical or 
     emotional harm from the other party. This provision is 
     effective October 1, 1997.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


          5. rights to notification and hearing (section 304)

     Present law
       Most States have procedural due process requirements with 
     respect to wage withholding. Federal law requires States to 
     carry out withholding in full compliance with all procedural 
     due process requirements of the State.
     House bill
       No provision.
     Senate amendment
       Parties to child support cases under Title IV-D must 
     receive notice of proceedings in which child support is 
     established or modified and must receive a copy of orders 
     establishing or modifying child support within 14 days of 
     issuance. Individuals served by the child support program 
     must also have access to a fair hearing or other complaint 
     procedures. These rules and procedures become effective on 
     October 1, 1997.
     Conference agreement
       The conference agreement is a compromise between the Senate 
     and House provisions. The House recedes on the Senate 
     requirement that parties be informed of hearings; the Senate 
     recedes on the requirement for hearings in certain cases.

                  Subtitle B--Locate and Case Tracking


                  6. state case registry (section 311)

                              A. Contents

     Present law
       No provision.
     House bill
       The automated State Case Registry must contain a record on 
     each case in which services are being provided by the State 
     agency, as well as each support order established or modified 
     in the State on or after October 1, 1998.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                     B. Linking of Local Registries

     Present law
       No provision.
     House bill
       The Registry may be established by linking local case 
     registries of support orders through an automated information 
     network.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                  C. Use of Standardized Data Elements

     Present law
       No provision.
     House bill
       The registry record will contain data elements on both 
     parents, such as names, Social Security numbers and other 
     uniform identification numbers, dates of birth, case 
     identification numbers, and any other data to be Secretary 
     may require.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           D. Payment Records

     Present Law
       Federal law requires that wage withholding be administered 
     by a public agency capable of documenting payments of support 
     and tracking and monitoring such payments.
     House bill
       Each case record will contain the amount of support owed 
     under the order and other amounts due or overdue, any amounts 
     that have been collected and distributed, the birth date of 
     any child for whom the order requires the provision of 
     support, and the amount of any lien imposed by the State.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                       E. Updating and Monitoring

     Present law
       Federal law requires that child support orders be reviewed 
     and adjusted, as appropriate, at least once every 3 years.
     House bill
       The State agency operating the registry will promptly 
     establish and maintain and regularly update case records in 
     the registry with respect to which services are being 
     provided under the State plan. Updating will be based on 
     administrative actions and administrative and judicial 
     proceedings and orders relating to paternity and support, as 
     well as information obtained from comparisons with Federal, 
     State, and local sources of information, information on 
     support collections and distributions, and any other relevant 
     information.
     Senate amendment
       Identical provision.
     Conference agreement.
       The conference agreement follows the House bill and the 
     Senate amendment
     
[[Page H15416]]


            F. Information Comparisons and Other Disclosures

     Present law
       No provision.
     House bill
       The State automated system will be used to extract data for 
     purposes of sharing and matching with Federal and State data 
     bases and locator services, including the Federal Case 
     Registry of Child Support Orders, the Federal Parent Locator 
     Service, Temporary Assistance for Needy Families and Medicaid 
     agencies, and intra- and interstate information comparisons.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


    7. collection and disbursement of support payments (section 312)

                       A. State Disbursement Unit

     Present law
       No provision. But States may provide that, at the request 
     of either parent, child support payments be made through the 
     child support enforcement agency or the agency that 
     administers the State's income withholding system regardless 
     of whether there is an arrearage. States must charge the 
     parent who requests child support services a fee equal to the 
     cost incurred by the State for these services, up to a 
     maximum of $25 per year.
     House bill
       By October 1, 1998, State child support agencies are 
     required to operate a centralized, automated unit for 
     collection and disbursement of payments on child support 
     orders enforced by the child support agency. The specifics of 
     how States will establish and operate their State 
     Disbursement Unit must be outlined in the State plan.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                              B. Operation

     Present law
       No provision.
     House bill
       The State Disbursement Unit must be operated directly by 
     the State agency, by two or more State agencies under a 
     regional cooperative agreement, or by a contractor 
     responsible directly to the State agency.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                 C. Linking of Local Disbursement Units

     Present law
       No provision.
     House bill
       The State Disbursement Unit may be established by linking 
     local disbursement units through an automated information 
     network. The Secretary must agree that the system will not 
     cost more nor take more time to establish than a centralized 
     system. In addition, employers shall be given one location 
     per State to which income withholding is sent.
     Senate amendment
       Similar provision except that whereas the House requires 
     only that the linked local system not cost more or take more 
     time to establish than the single State system, the Senate 
     adds the condition that the local system also cannot take 
     more time to operate.
     Conference agreement
       The House recedes to the Senate provision allowing States 
     to establish their State Disbursement Unit by linking local 
     disbursement units only if linking units does not cost more 
     money nor take more time to establish and to operate.

                         D. Required Procedures

     Present law
       No provision.
     House bill
       The Disbursement Unit will be used to collect and disburse 
     support payments, to generate orders and notices of 
     withholding to employers, to keep an accurate identification 
     of payments, to promptly distribute money to custodial 
     parents or other States, and to furnish parents with a record 
     of the current status of support payments. The Unit shall use 
     automated procedures, electronic processes, and computer-
     driven technology to the maximum extent feasible, efficient, 
     and economical.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                       E. Timing of Disbursements

     Present law
       No provision.
     House bill
       The Disbursement Unit must distribute all amounts payable 
     within 2 business days after receiving money and identifying 
     information from the employer or other source of periodic 
     income, if sufficient information identifying the payee is 
     provided.
     Senate amendment
       Similar to House provision, except permits the retention of 
     arrearages in the case of appeals until they are resolved.
     Conference agreement
       The Conference agreement follows the House bill and the 
     Senate amendment except that the House recedes to the Senate 
     requirement that States be allowed to retain arrearages in 
     the case of appeals until they are resolved.

                       F. Use of Automated System

     Present law
       No provision.
     House bill
       State must use their automated system to facilitate 
     collection and disbursement including at least:
       (1) transmission of orders and notices to employers within 
     2 days after receipt of the withholding notice;
       (2) monitoring to identify missed payments of support; and
       (3) automatic use of enforcement procedures when payments 
     are missed.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           G. Effective Date

     Present law
       No provision.
     House bill
       This section of the bill will go into effect on October 1, 
     1998.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House and the Senate.


             8. state directory of new hires (section 313)

                       A. State Plan Requirement

     Present law
       No provision.
     House bill
       State plans must include the provision that by October 1, 
     1997 States will operate a Directory of New Hires (as 
     outlined below).
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                            B. Establishment

     Present law
       No provision.
     House bill
       States are required to establish a State Directory of New 
     Hires to which employers and labor organizations in the State 
     must furnish a report for each newly hired employee, unless 
     reporting could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission 
     as determined by the head of an agency.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment with the clarification that States that 
     already have new hire reporting laws may continue to follow 
     the provisions of their own law until October 1, 1997, at 
     which time States must conform to Federal law.

                        C. Employer Information

     Present law
       No provision.
     House bill
       Employers must furnish to the State Directory of New Hires 
     the name, address, and Social Security number of every new 
     employee and the name and identification number of the 
     employer. Multistate employers may report to the State in 
     which they have the most employees.
     Senate amendment
       Similar to House provision, but allows multistate employers 
     to report to the single State they designate. The employer 
     must notify the DHHS Secretary as to the name of the 
     designated State.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment except that the House receedes to the Senate 
     provision allowing multistate employers to report to the 
     State of their choice. Employers must notify the Secretary of 
     the name of the designated State.

                          D. Timing of Report

     Present law
       No provision.
     House bill
       Employers must report new hire information within 15 days 
     of the hire or on the date the employee first receives wages.
     Senate amendment
       Employer must report new hire information within 30 days of 
     the hire or if the employer reports by magnetic or electronic 
     means, the employer can report by the first business day of 
     the week following the date on which the employee first 
     receives wages.
     Conference agreement
       Conferees agree that employers must report new hire 
     information within 20 days of the date of hire.
       Employers that report new hires electronically or by 
     magnetic tape must file twice per 

[[Page H15417]]
     month; reports must be separated by not less than 12 days and not more 
     than 16 days.

                     E. Reporting Format and Method

     Present law
       No provision.
     House bill
       The report required in this section will be made on a W-4 
     form or the equivalent, and can be transmitted magnetically, 
     or by first class mail.
     Senate amendment
       Similar to House provision, but only allows the report to 
     be filed on a W-4 form, not the equivalent.
     Conference agreement
       The conferees agree to follow both the House and Senate 
     provisions except that the Senate recedes to the House 
     provision allowing employers, at their option, to use an 
     equivalent form. The decision of which reporting method to 
     use is entirely up to employers.

           F. Civil Money Penalties on Noncomplying Employers

     Present law
       In general, no provision.
       Section 1128 of the Social Security Act is an antifraud 
     provision which excludes individuals and entities that have 
     committed fraud from participation in medicare and State 
     health care programs. Section 1128A pertains to civil 
     monetary penalties and describes the appropriate procedures 
     and proceedings for such penalties.
     House bill
       An employer failing to make a timely report is subject to a 
     $25 fine for each unreported employee. There is also a $500 
     penalty on employers for every employee for whom they do not 
     transmit a W-4 form if, under the laws of the State, there is 
     shown to be a conspiracy between the employer and the 
     employee to prevent the proper information from being filed.
       The House bill makes several but not all provisions of 
     section 1128 applicable to employers that violate reporting 
     requirements.
     Senate amendment
       States have the option of setting a civil money penalty 
     which shall be not less than $25 or $500 if, under State law, 
     the failure is the result of a conspiracy between the 
     employer and employee. The Senate amendment does not make any 
     provisions of section 1128 applicable to employers.
     Conference agreement
       The conference agreement follows both the House and Senate 
     provisions except that the House recedes to the Senate 
     provision of making the penalties a State option. The 
     application of penalties from section 1128 is dropped.

                    G. Entry of New Hire Information

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       New hire information must be entered in the State data base 
     within five business days of receipt from employer.
     Conference agreement
       The House recedes to the Senate requirement of requiring 
     States to enter New Hire information in their data base 
     within five business days.

                       H. Information Comparisons

     Present law
       No provision.
     House bill
       By October 1, 1997, each State Directory of New Hires must 
     conduct automated matches of the Social Security numbers of 
     reported employees against the Social Security numbers of 
     records in the State Case Registry being enforced by the 
     State agency and report the name, Social Security number, and 
     employer identification number on matches to the State child 
     support agency.
     Senate amendment
       Similar to House provision, except requires comparisons to 
     begin by October 1, 1998 rather than 1997.
     Conference agreement
       Conferees agreed to follow the House and Senate provisions 
     but to compromise on the date by which comparisons must begin 
     by adopting a May 1, 1998 effective date.

                     I. Transmission of Information

     Present law
       No provision.
     House bill
       Within two business days of the entry of data in the 
     registry, the State must transmit a withholding order 
     directing the employer to withhold wages in accord with the 
     child support order. Within four days, the State Directory of 
     New Hires must furnish employee information to the National 
     Directory of New Hires for matching with the records of other 
     State case registries. The State Directory of New Hires must 
     also report quarterly to the National Directory of New Hires 
     information on wages and unemployment compensation taken from 
     the quarterly report to the Secretary of Labor now required 
     by Title III of the Social Security Act.
     Senate amendment
       Similar to House provision, except requires State Directory 
     to report to the National Directory within two, rather than 
     four, days.
     Conference agreement
       The conference agreement is to follow the House and Senate 
     provisions and to compromise on the reporting date by 
     allowing States three days to report to the National 
     Directory of New Hires.

                 J. Other Uses of New Hire Information

     Present law
       No provision.
     House bill
       The State child support agency must use the new hire 
     information for purposes of establishing paternity as well as 
     establishing, modifying, and enforcing child support 
     obligations. New hire information (pursuant to section 1137 
     of the Social Security Act) must also be disclosed to the 
     State agency administering the Temporary Assistance for Needy 
     Families, Medicaid, Unemployment Compensation, Food Stamp, 
     SSI, and territorial cash assistance programs for income 
     eligibility verification, and to State agencies administering 
     unemployment and workers' compensation programs to assist 
     determinations of the allowability of claims.
     Senate amendment
       Similar to House provision, except requires State and local 
     government agencies to be included in quarterly wage 
     reporting unless the agency performs intelligence or 
     counterintelligence functions and it is determined that wage 
     reporting could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission.
     Conference agreement
       The conference agreement allows the House and Senate 
     provisions except that the House recedes to the Senate 
     provision allowing State and local government agencies to 
     exempt employees doing intelligence or counterintelligence 
     work whose safety might be compromised by the reporting.


       9. amendments concerning income withholding (section 314)

     Present law
       Since November 1, 1990, all new or modified child support 
     orders that were being enforced by the State's child support 
     enforcement agency have been subject to immediate income 
     withholding. If the noncustodial parent's wages are not 
     subject to income withholding (pursuant to the November 1, 
     1990 provision), such parent's wages would become subject to 
     withholding on the date when support payments are 30 days 
     past due. Since January 1, 1994, the law has required States 
     to use immediate income withholding for all new support 
     orders, regardless of whether a parent has applied for child 
     support enforcement services. There are two circumstances in 
     which income withholding does not apply: (1) one of the 
     parents demonstrates and the court or administrative agency 
     finds that there is good cause not to do so, or (2) a written 
     agreement is reached between both parents which provides for 
     an alternative arrangement. States must implement procedures 
     under which income withholding for child support can occur 
     without the need for any amendment to the support order or 
     for any further action by the court or administrative entity 
     that issued the order. States are also required to implement 
     income withholding in full compliance with all procedural due 
     process requirements of the State, and States must send 
     advance notice to each nonresident parent to whom income 
     withholding applies (with an exception for some State that 
     had income withholding before enactment of this provision 
     that met State due process requirements). States must extend 
     their income withholding systems to include out-of-State 
     support orders.
     House bill
       States must have laws providing that all child support 
     orders issued or modified before October 1, 1996, which are 
     not otherwise subject to income withholding, will become 
     subject to income withholding immediately if arrearages 
     occur, without the need for judicial or administrative 
     hearing. State law must also allow the child support agency 
     to execute a withholding order through electronic means and 
     without advance notice to the obligor. Employers must remit 
     to the State disbursement unit income withheld within two 
     working days after the date such amount would have been paid 
     or credited to the employee.
     Senate amendment
       Similar to House provision, but requires all child support 
     orders which are not part of the State IV-D program to be 
     processed through the State disbursement unit. In addition, 
     States must notify noncustodial parents that income 
     withholding has commenced and inform them of procedures for 
     contesting income withholding.
     Conference agreement
       The conference agreement follows the House and the Senate 
     provisions except that the House recedes to the Senate 
     provision requiring all child support orders which are not 
     part of the State IV-D program to be processed through the 
     State disbursement unit. In addition, States must notify 
     noncustodial parents that income withholding has commenced 
     and inform them of procedures for contesting income 
     withholdng.


     10. Locator information from Interstate Networks (section 315)

     Present law
     No provision.
     House bill
       All State and the Federal Child Support Enforcement 
     agencies must have access to 

[[Page H15418]]
     the motor vehicle and law enforcement locator systems of all States.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


   11. Expansion of the Federal Parent Locator Service (Section 316)

         A. Expanded Authority to Locate Individuals and Assets

     Present law
       The law requires that the Federal Parent Locator Service 
     (FPLS) be used to obtain and transmit information about the 
     location of any absent parent when that information is to be 
     used for the purpose of enforcing child support.
     House bill
       The purposes of the Federal Parent Locator Service are 
     expanded. For the purposes of establishing parentage, 
     establishing support orders or modifying them, or enforcing 
     support orders, the Federal Parent Locator Service will 
     provide information to locate individuals who owe child 
     support or against whom an obligation is sought or to whom 
     such an obligation is owed. Information in the FPLS includes 
     Social Security number, address, name and address of 
     employer, and wages and employee benefits (including 
     information about health care coverage).
     Senate amendment
       Similar to House provision, except clarifies current law by 
     stating that information from the Federal Parent Locator 
     Service can be used to enforce visitation orders. Senate also 
     allows FPLS to contain and provide information on assets and 
     debts.
     Conference agreement
       The conference agreement is similar to both the House bill 
     and the Senate amendment. The agreement clarifies the statute 
     so that nonresident parents are given access to information 
     from the FPLS if these requests are made through a court or 
     through the State child support agency. In addition, States 
     are required to treat requests for information from 
     nonresident parents on the same basis and with the same 
     priority as requests for information from the resident 
     parent.

                           B. Reimbursements

     Present law
       Federal law requires that any department or agency of the 
     United States must be reimbursed for costs incurred for 
     providing requested information to the FPLS.
     House bill
       The Secretary is authorized to set reasonable rates for 
     reimbursing Federal and State agencies for the cost of 
     providing information to the FPLS and to set reimbursement 
     rates that State and Federal agencies that use information 
     from the FPLS must pay to the Secretary.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                       C. New Components of FPLS

           (1) Federal case registry of child support orders

     Present law
       No provision.
     House bill
       The House bill establishes within the FPLS an automated 
     registry known as the Federal Case Registry of Child Support 
     Orders. The Federal Case Registry contains abstracts of child 
     support orders and other information specified by the 
     Secretary (such as names, Social Security numbers or other 
     uniform identification numbers, State case identification 
     numbers, wages or other income, and rights to health care 
     coverage) to identify individuals who owe or are owed 
     support, or for or against whom support is sought to be 
     established, and the State which has the case. States must 
     begin reporting this information in accord with regulations 
     issued by the Secretary by October 1, 1998.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                  (2) National directory of new hires

     Present law
       No provision.
     House bill
       The bill establishes within the FPLS a National Directory 
     of New Hires containing information supplied by State 
     Directories of New Hires, beginning October 1, 1996. When 
     fully implemented, the Federal Directory of New Hires will 
     contain identifying information on virtually every person who 
     is hired in the United States. In addition, the FPLS will 
     contain quarterly data supplied by the State Directory of New 
     Hires on wages and Unemployment Compensation paid. The 
     Secretary of the Treasury must have access to information in 
     the Federal Directory of New Hires for the purpose of 
     administering section 32 of the Internal Revenue Code and the 
     Earned Income Credit.
     Senate amendment
       The Senate provision is similar to the House provision with 
     two exceptions:
       (1) the Senate amendment includes the requirement that the 
     information for the National Directory of New Hires must be 
     entered within 2 days of receipt; and
       (2) the Senate amendment requires the DHHS Secretary to 
     maintain within the National Directory of New Hires a list of 
     multistate employers that choose a State to send their report 
     to and the name of the State so designated.
     Conference agreement
       Conferees agree to follow both the House bill and Senate 
     amendment except that the House recedes on the points of 
     difference. Thus, the National Directory must enter new 
     information within 2 days and the Secretary must maintain a 
     list of the States to which multistate employers send their 
     new hire information.

            D. Information Comparisons and Other Disclosures

     Present law
       Upon request, the Secretary must provide to an ``authorized 
     person'' (i.e., an employee or attorney of a child support, a 
     court with jurisdiction over the parties involved, the 
     custodial parent, legal guardian, or attorney of the child) 
     the most recent address and place of employment of any 
     nonresident parent if the information is contained in the 
     records of the Department of Health and Human Services, or 
     can be obtained from any other department or agency of the 
     United States or of any State. The FPLS also can be used in 
     connection with the enforcement or determination of child 
     custody, visitation, and parental kidnapping. Federal law 
     requires the Secretary of Labor and the Secretary of Health 
     and Human Services to enter into an agreement to give the 
     FPLS prompt access to wage and unemployment compensation 
     claims information useful in locating a noncustodial parent 
     or his employer.
     House bill
       The Secretary must verify the accuracy of the name, Social 
     Security number, birth date, and employer identification 
     number of individuals in the Federal Parent Locator Service 
     with the Social Security Administration. The Secretary is 
     required to match data in the National Directory of New Hires 
     against the child support order abstracts in the Federal Case 
     Registry at least every 2 working days and to report 
     information obtained from matches to the State child support 
     agency responsible for the case within 2 days. The 
     information is to be used for purposes of locating 
     individuals to establish paternity, and to establish, modify, 
     or enforce child support orders. The Secretary may also 
     compare information across all components of the FPLS to the 
     extent and with the frequency that the Secretary determines 
     will be effective. The Secretary will share information from 
     the FPLS with several potential users including State 
     agencies administering the Temporary Assistance for Needy 
     Families program, the Commissioner of Social Security (to 
     determine the accuracy of Social Security and Supplemental 
     Security Income), and researchers under some circumstances.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                                E. Fees

     Present law
       ``Authorized persons'' who request information from FPLS 
     must be charged a fee.
     House bill
       The Secretary must reimburse the Commissioner of Social 
     Security for costs incurred in performing verification of 
     Social Security information and to States for submitting 
     information on New Hires. States or Federal agencies that use 
     information from FPLS must pay fees established by the 
     Secretary.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                  F. Restriction on Disclosure and Use

     Present law
       Federal law stipulates that no information shall be 
     disclosed if the disclosure would contravene the national 
     policy or security interests of the United States or the 
     confidentiality of Census data.
     House bill
       Information from the FPLS cannot be used for purposes other 
     than those provided in this section, subject to section 6103 
     of the Internal Revenue Code.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                 G. Information Integrity and Security

     Present law
       No provision.
     House bill
       The Secretary must establish and use safeguards to ensure 
     the accuracy and completeness of information from the FPLS 
     and restrict access to confidential information in the FPLS 
     to authorized persons and purposes.
     
[[Page H15419]]

     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                      H. Quarterly Wage Reporting

     Present law
       Requires the Secretary of Labor to provide prompt access 
     for the DHHS Secretary to wage and unemployment compensation 
     claims information and data maintained by the Labor 
     Department or State employment security agencies.
     House bill
       No provision.
     Senate amendment
       Each department in the U.S. shall submit the name, Social 
     Security number, and wages paid the employee, on a quarterly 
     basis to the FPLS. Quarterly wage reporting shall not be 
     filed for a Federal or State employee performing intelligence 
     or counter-intelligence functions if it is determined that 
     filing such a report could endanger the employee or 
     compromise an ongoing investigation.
     Conference agreement
       The conference agreement follows the Senate amendment.

                        I. Conforming Amendments

     Present law
       No provision.
     House bill
       This section makes several conforming amendments to Titles 
     III and IV of the Social Security Act and the Federal 
     Unemployment Tax Act.
     Senate amendment
       Similar to House provision, except amends section 303(h) to 
     require State unemployment insurance agencies to report 
     quarterly wage information to the Secretary of HHS or suffer 
     financial penalties, while the House bill amends section 
     303(a) and simply requires quarterly reports to the Secretary 
     of HHS.
     Conference agreement
       Conferees agreed to follow both the House and Senate 
     provisions but to follow the Senate amendment by requiring 
     State unemployment insurance agencies to file quarterly wage 
     reports with the Secretary or pay penalties.

    J. Authorized Person for Information Regarding Visitation Rights

     Present law
       FPLS can be used to provide information to authorized 
     individuals and agencies making or entering a child custody 
     order (see Sec. 463 of Social Security Act).
     House bill
       No provision.
     Senate amendment
       Expands functions of FPLS by requiring that information be 
     made available to nonresident parents for purposes of seeking 
     or enforcing child visitation orders.
     Conference agreement
       The House recedes to the Senate amendment on this provision 
     but with the agreement that nonresident parents cannot obtain 
     information directly from the FPLS. Rather, they must present 
     their request through the courts or through the State child 
     support agency. In addition, the agreement requires State 
     child support agencies to treat requests for information from 
     nonresident parents on the same basis and with the same 
     priority as requests from resident parents.
       Conferees also agree to add a provision to section 6103(l) 
     of the Internal Revenue Code to allow State child support 
     agencies to share information on the address, social security 
     number, and tax intercept results with private agents working 
     under contract with the State agency.


  12. collection and use of social security numbers for use in child 
                   support enforcement (section 317)

     Present law
       Federal law requires that in the administration of any law 
     involving the issuance of a birth certificate, States must 
     require each parent to furnish their Social Security number 
     for the birth records. The State is required to make such 
     numbers available to child support agencies in accordance 
     with Federal or State law. States may not place Social 
     Security numbers directly on birth certificates.
     House bill
       States must have laws requiring that Social Security 
     numbers be placed on applications for professional licenses, 
     commercial drivers licenses, and occupational licenses, 
     marriage licenses, and in the records for divorce decrees, 
     child support orders, and paternity determination or 
     acknowledgment orders. Individuals who die will have their 
     Social Security number placed in the records relating to the 
     death and recorded on the death certificate. There are 
     several conforming amendments.
     Senate amendment
       Similar to House provision, except gives States the option 
     of not including Social Security numbers on applications for 
     licenses and bars the placement of Social Security numbers on 
     marriage licenses.
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment except that the House recedes to the 
     Senate requirements that States have the option of not 
     including Social Security numbers on applications and that 
     States be barred from placing Social Security numbers on 
     marriage licenses.

         Subtitle C--Streamlining and Uniformity of Procedures


            13. adoption of uniform state laws (section 321)

     Present law
       States have several options available for pursuing 
     interstate child support cases including direct income 
     withholding, interstate income withholding, and long-arm 
     statutes which require the use of the court system in the 
     State of the custodial parent. In addition, States use the 
     Uniform Reciprocal Enforcement of Support Act (URESA) and the 
     Revised Uniform Reciprocal Enforcement of Support Act 
     (RURESA) to conduct interstate cases. Moreover, Federal law 
     imposes a Federal criminal penalty for the willful failure to 
     pay past-due child support to a child who resides in a State 
     other than the State of the obligor. In 1992, the National 
     Conference of Commissioners on State Uniform Laws approved a 
     new model State law for handling interstate child support 
     cases. The new Uniform Interstate Family Support Act (UIFSA) 
     is designed to deal with desertion and nonsupport by 
     instituting uniform laws in all 50 States that limit control 
     of a child support case to a single State. This approach 
     ensures that only one child support order from one court or 
     child support agency will be in effect at any given time. It 
     also helps to eliminate jurisdictional disputes between 
     States that are impediments to locating parents and enforcing 
     child support orders across State lines. As of March, 1995, 
     23 States had enacted UIFSA, 15 verbatim and 8 with minor 
     changes.
     House bill
       By January 1, 1997, all States must have enacted the 
     Uniform Interstate Family Support Act (UIFSA) and have the 
     procedures required for its implementation in effect. States 
     are required to apply UIFSA to any case involving an order 
     established or modified in one State that is sought to be 
     modified in another State. States must also have a new 
     provision on long-arm statutes and petitioning for 
     modifications of orders, and are required to recognize as 
     valid any method of service of process used in another State 
     that is valid in that State.
     Senate amendment
       Similar to the House provision, except permits but does not 
     require States to apply UIFSA to all interstate cases.
     Conference agreement
       The conference agreement is that States must adopt UIFSA by 
     January 1, 1998. The House recedes to the Senate, however, by 
     allowing States flexibility in deciding which specific 
     interstate cases are pursued by using UIFSA and which cases 
     are pursued using other methods of interstate enforcement.


  14. improvements to full faith and credit for child support orders 
                             (section 322)

     Present law
       Federal law requires States to treat past-due support 
     obligations as final judgments that are entitled to full 
     faith and credit in every State. This means that a person who 
     has a support order in one State does not have to obtain a 
     second order in another State to obtain support due should 
     the debtor parent move from the issuing court's jurisdiction. 
     P.L. 103-383 restricts a State court's ability to modify a 
     support order issued by another State unless the child and 
     the custodial parent have moved to the State where the 
     modification is sought or have agreed to the modification.
     House bill
       The provision clarifies the definition of a child's home 
     State, makes several revisions to ensure that full faith and 
     credit laws can be applied consistently with UIFSA, and 
     clarifies the rules regarding which child support orders 
     States must honor when there is more than one order.
     Senate amendment
       Similar to House provision
     Conference agreement
       The conference agreement follows both the House and Senate 
     provisions but the House recedes on ``more than one court.''


    15. administrative enforcement in interstate cases (section 323)

     Present law
       No provision.
     House bill
       States are required to have laws that permit them to send 
     orders to and receive orders from other States without 
     registering the underlying order unless the enforcement 
     action is contested by the obligor on the grounds of mistake 
     of fact or invalid order. The transmission of the order 
     itself serves as certification to the responding State of the 
     arrears amount and of the fact that the initiating State met 
     all procedural due process requirements. No court action is 
     required or permitted by the responding State. In addition, 
     each responding State must, without requiring the case to be 
     transferred to their State, match the case against its data 
     bases, take appropriate action if a match occurs, and send 
     the collections, if any, to the initiating State. States must 
     keep records of the number of requests they receive, the 
     number of cases that result in a collection, and the amount 
     collected. States must respond to interstate requests within 
     five days.
     
[[Page H15420]]

     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


        16. use of forms in interstate enforcement (section 324)

     Present law
       No provision.
     House bill
       The Secretary must issue forms that States must use for 
     income withholding, for imposing liens, and for issuing 
     administrative subpoenas in interstate cases. The forms must 
     be issued by June 30, 1996 and States must be using the forms 
     by October 1, 1996.
     Senate amendment
       Requires the DHHS Secretary to establish an advisory 
     committee which must include State child support directors, 
     and not later than June 30, 1996, after consultation with the 
     advisory committee, to issue forms that States must use for 
     income withholding, for imposing liens, and for issuing 
     administrative subpoenas in interstate cases. States must be 
     using the forms by October 1, 1996.
     Conference agreement
       Conferees agree to follow both the House and Senate 
     provisions with a compromise on requiring the Secretary to 
     consult with States. Rather than forming an advisory 
     committee, the conference agreement requires the Secretary to 
     consult with States before issuing the interstate forms. It 
     is the intention of conferees to facilitate timely issuance 
     of the forms but also to mandate that the Secretary work 
     closely with State child support directors in developing the 
     forms.


      17. state laws providing expedited procedures (section 325)

                A. Administrative Action by State Agency

     Present law
       States must have procedures under which expedited processes 
     are in effect under the State judicial system or under State 
     administrative processes for obtaining and enforcing support 
     orders and for establishing paternity.
     House bill
       States must adopt a series of procedures to expedite both 
     the establishment of paternity and the establishment, 
     enforcement, and modification of support. These procedures 
     provide for:
       (1) ordering genetic testing in appropriate cases;
       (2) entering a default order upon a showing of service of 
     process and any other showing required by State law to 
     establish paternity if the putative father refuses to submit 
     to genetic testing and to establish or modify a support order 
     when a parent fails to appear for a hearing;
       (3) issuing subpoenas to obtain information necessary to 
     establish, modify or enforce an order, with appropriate 
     sanctions for failure to respond to the subpoena;
       (4) obtaining access to records including: records of other 
     State and local government agencies, law enforcement records, 
     and corrections records, including automated access to 
     records maintained in automated data bases;
       (5) directing the parties to pay support to the appropriate 
     government entity;
       (6) ordering income withholding;
       (7) securing assets to satisfy arrearages by intercepting 
     or seizing periodic or lump sum payments from States or local 
     agencies; these payments include Unemployment Compensation, 
     workers' compensation, judgements, settlements, lottery 
     winnings, assets held by financial institutions, and public 
     and private retirement funds; and
       (8) increasing automatically the monthly support due to 
     include amounts to offset arrears.
     Senate amendment
       Similar to House provision, except requires States to 
     include the following additional procedures:
       (1) requiring all entities in the State (including for-
     profit, nonprofit, and governmental employers) to provide 
     information on employment, compensation and benefits of any 
     employee or contractor in response to a request from the 
     State IV-D agency;
       (2) obtaining access to a variety of public and private 
     records including: vital statistics, State and local tax 
     records, real and personal property, occupational and 
     professional licenses and records concerning ownership and 
     control of corporations, partnerships and other business 
     entities, employment security records, public assistance 
     records, motor vehicle records, corrections records, customer 
     records of public utilities and cable TV companies, and 
     records of financial institutions;
       (3) imposing liens to force the sale of property and 
     distribution of proceeds;
       (4) requiring financial institutions (subject to the 
     limitation on liabilities arising from affording such access) 
     to provide information held by them on individuals who owe or 
     are owed child support (or against or with respect to whom a 
     support obligation is sought) to State child support 
     agencies; and
       (5) requiring that due process safeguards be follows.
       The amendment does not include the House provision 
     regarding default orders in paternity cases upon a showing of 
     service of process.
     Conference agreement
       The House recedes to the Senate by including the five 
     additional expedited procedures in the list of State 
     requirements. The conference agreement also includes the 
     House provision regarding default orders in paternity cases 
     upon a showing of service of process.

                  B. Substantive and Procedural Rules

     Present law
       Federal regulations provide a number of safeguards, such as 
     requiring that the due process rights of the parties involved 
     be protected.
     House bill
       States must follow a series of procedural rules that apply 
     to all of the expedited procedures outlined in the preceding 
     section:
       (1) Locator Information and Notice--requires parties in 
     paternity and child support actions to file and update 
     information about identity, address, and employer with the 
     tribunal and with the State Case Registry upon entry of the 
     order. The tribunal can deem due process requirements for 
     notice and service of process to be met in any subsequent 
     action upon delivery of written notice to the most recent 
     residential or employer address filed with the tribunal.
       (2) Statewide Jurisdiction--grants the child support agency 
     and any administrative or judicial tribunal with authority to 
     hear child support and paternity cases, to exert Statewide 
     jurisdiction over the parties, and to grant orders that have 
     Statewide effect; also permits transfer of cases between 
     administrative areas without additional filing or service of 
     process.
     Senate amendment
       Similar provision with a minor difference in wording.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment except the House recedes to the Senate 
     language by replacing the term ``administrative areas'' with 
     the term ``local jurisdictions'' in the section of Statewide 
     jurisdiction.

                C. Automation of State Agency Functions

     Present law
       No provision.
     House bill
       The automated systems being developed by States are to be 
     used, to the maximum extent possible, to implement the 
     expedited procedures.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                  Subtitle D--Paternity Establishment


     18. State Law concerning Paternity Establishment (Section 331)

       A. Establishment Process Available From Birth Until Age 18

     Present law
       Federal law requires States to strengthen their paternity 
     establishment laws by requiring that paternity may be 
     established until the child reaches at 18. As of August 16, 
     1984, these procedures would apply to a child for whom 
     paternity has not been established or for whom a paternity 
     action was brought but dismissed because of statute of 
     limitations of less than 18 years was then in effect in the 
     State.
     House bill
       Same as current law.
     Senate amendment
       Similar to House provision, except requires that paternity 
     may be established until age 21 rather than 18.
     Conference agreement
       The Senate recedes so that States are required to have laws 
     that permit paternity establishment until at least age 18 (or 
     a higher limit at State option).

                B. Procedures Concerning Genetic Testing

     Present law
       Federal law requires States to implement laws under which 
     the child and all other parties must undergo genetic testing 
     upon the request of a party in contested cases.
     House bill
       The child and all other parties must undergo genetic 
     testing upon the request of a party, where the request is 
     supported by a sworn statement establishing a reasonable 
     possibility of parentage or nonparentage. When the tests are 
     ordered by the State agency, States must pay for the costs, 
     subject to recoupment at State option from the farther if 
     paternity is established.
     Senate amendment
       Similar provision. House mandates genetic tests in certain 
     cases while Senate allows States with laws against genetic 
     testing in some cases to follow State law.
     Conference agreement
       The conference agreement follows both House and Senate 
     provisions but the House recedes on the provision allowing 
     States to exempt certain cases from the requirement for 
     mandatory genetic testing. No State exemption, however, can 
     permit a putative father to avoid paternity establishment 
     procedures.

                 C. Voluntary Paternity Acknowledgment

     Present law
       Federal law requires States to implement procedures for a 
     simple civil process for voluntary paternity acknowledgment, 
     including hospital-based programs.
     
[[Page H15421]]

     House bill
       (1) Simple Civil Process. States must have procedures that 
     create a simple civil process for voluntary acknowledging 
     paternity under which benefits, rights and responsibilities 
     of acknowledgement are explained to unwed parents;
       (2) Hospital Program. States must have procedures that 
     establish a paternity acknowledgement program through 
     hospitals and birth record agencies (and other agencies as 
     designated by the Secretary).
       (3) Paternity Services. States must have procedures that 
     require the agency responsible for maintaining birth records 
     to offer voluntary paternity establishment services. The 
     Secretary must issue regulations, including regulations on 
     other State agencies that may offer voluntary paternity 
     acknowledgment services and the conditions such agencies must 
     meet.
       (4) Affidavit. States must have procedures that require 
     agencies to use a uniform affidavit developed by the 
     Secretary that is entitled to full faith and credit in any 
     other State.
     Senate amendment
       (1) Simple Civil Process. Similar to House provision; 
     Senate does not include language requiring that the 
     explanation of alternatives, legal consequences, and rights 
     and responsibilities be ``in a language that each can 
     understand''.
       (2) Hospital Program. Similar to House provision, except 
     States must also establish good cause exceptions for not 
     trying to establish paternity.
       (3) Paternity Services. Identical to House provision.
       (4) Affidavit. Similar provision but Senate amendment 
     allows States to develop their own voluntary paternity 
     acknowledgment form as long as they follow all the basic 
     elements of a form developed by the Secretary.
     Conference agreement
       (1) Simple Civil Process. The conference agreement follows 
     the House and Senate provisions except the House agrees to 
     drop its requirement that the explanation be ``in a language 
     that each [parent] can understand''.
       (2) Hospital Program. Conferees agree to follow the House 
     and Senate provisions but with a modification of the Senate 
     language on ``good cause'' exceptions so that such exceptions 
     become a State option.
       (3) Paternity Services. The conference agreement follows 
     the House bill and the Senate amendment.
       (4) Affidavit. The House recedes to allow States to develop 
     their own voluntary acknowledgement form as long as the form 
     contains all the basic elements of a form developed by the 
     Secretary.

              D. Status of Signed Paternity Acknowledgment

     Present law
       Federal laws requires States to implement procedures under 
     which the voluntary acknowledgment of paternity creates a 
     rebuttal presumption, or at State option, a conclusive 
     presumption of paternity.
     House bill
       (1) Legal Finding. States must have procedures under which 
     a signed acknowledgement of paternity is considered a legal 
     finding of paternity unless rescinded within 60 days.
       (2) Contest. States must have procedures under which a 
     paternity acknowledgment can be challenged in court only on 
     the basis of fraud, duress, or material mistake of fact.
       (3) Rescission. States must have procedures under which 
     minors who sign a voluntary paternity acknowledgement are 
     allowed to rescind it until age 18 or the date of the first 
     proceeding to establish a support order, visitation, or 
     custody rights.
     Senate amendment
       (1) Legal Finding. Adds the requirement that the name of 
     the father appear in the birth records only if there is a 
     paternity acknowledgement signed by both parents or paternity 
     has been established by court order;
       (2) Contest. Identical to House provision.
       (3) Rescission. No provision.
     Conference agreement
       (1) Legal Finding. The House recedes to the Senate 
     requirement that the father's name appear in the birth 
     records only if certain conditions are met;
       (2) Contest. The conference agreement follows the House 
     bill and the Senate amendment.
       (3) Rescission. The House agrees to drop the rescission 
     requirement, thereby leaving this decision up to States.

           E. Bar on Acknowledgment Ratification Proceedings

     Present law
       Federal law requires States to implement procedures under 
     which voluntary acknowledgment is admissible as evidence of 
     paternity and the voluntary acknowledgment of paternity must 
     be recognized as a basis for seeking a support order without 
     requiring any further proceedings to establish paternity.
     House bill
       No judicial or administrative proceedings are required or 
     permitted to ratify a paternity acknowledgement which is not 
     challenged by the parents.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

              F. Admissibility of Genetic Testing Results

     Present law
       Federal law requires States to implement procedures which 
     provide that any objection to genetic testing results must be 
     made in writing within a specified number of days before any 
     hearing at which such results may be introduced into 
     evidence. If no objection is made, the test results must be 
     admissible as evidence of paternity without the need for 
     foundation testimony or other proof of authenticity or 
     accuracy.
     House bill
       States must have procedures for admitting into evidence 
     accredited genetic tests, unless any objection is made within 
     a specified number of days, and if no objection is made, 
     clarifying that test results are admissible without the need 
     for foundation or other testimony.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

              G. Presumption of Paternity in Certain Cases

     Present law
       Federal law requires States to implement procedures which 
     create a rebuttable or, at State option, conclusive 
     presumption of paternity based on genetic testing results 
     indicating a threshold probability that the alleged father is 
     the father of the child.
     House bill
       States must have laws that create a rebuttable or, at State 
     option, conclusive presumption of paternity when results from 
     genetic testing indicate a threshold probability that the 
     alleged father is the father of the child.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           H. Default Orders

     Present law
       Federal law requires States to implement procedures that 
     require a default order to be entered in a paternity case 
     upon a showing of service of process on the defendant and any 
     additional showing required by State law.
     House bill
       A default order must be entered in a paternity case upon a 
     showing of service of process on the defendant and any 
     additional showing required by the State law.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                       I. No Right to Jury Trial

     Present law
       No provision.
     House bill
       State laws must state that parties in a contested paternity 
     action are not entitled to a jury trial.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

            J. Temporary Support Based on Probable Paternity

     Present law
       No provision.
     House bill
       Upon motion of a party, State law must require issuance of 
     a temporary support order pending an administrative or 
     judicial determination of percentage if paternity is 
     indicated by genetic testing or other clear and convincing 
     evidence.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

     K. Proof of Certain Support and Paternity Establishment Costs

     Present law
       No provision.
     House bill
       Bills for pregnancy, childbirth, and genetic testing must 
     be admissible in judicial proceedings without foundation 
     testimony.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                    L. Standing of Putative Fathers

     Present law
       No provision.
     House bill
       Putative fathers must have a reasonable opportunity to 
     initiate paternity action.
     Senate amendment
       Identical provision.
     
[[Page H15422]]

     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

    M. Filing of Acknowledgments and Adjudications in State Registry

     Present law
       No provision.
     House bill
       Both voluntary acknowledgements and adjudications of 
     paternity must be filed with the State registry of birth 
     records for data matches with the central Case Registry of 
     Child Support Orders established by the State.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

             N. National Paternity Acknowledgment Affidavit

     Present law
       No provision.
     House bill
       The Secretary is required to develop an affidavit to be 
     used for voluntary acknowledgement of paternity which 
     includes the Social Security number of each parent.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House and Senate 
     provisions but includes a clarification that the Secretary, 
     after consulting with the State child support directors, 
     should list the common elements that States must include on 
     their forms.


    19. Outreach for Voluntary Paternity Establishment (Section 332)

     Present law
       States are required to regularly and frequently publicize, 
     through public service announcements, the availability of 
     child support enforcement services.
     House bill
       States must publicize the availability and encourage the 
     use of procedures for voluntary establishment of paternity 
     and child support.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


     20. Cooperation by Applicants For and Recipients of Temporary 
              Assistance for Needy Families (Section 333)

     Present law
       AFDC applicants and recipients are required to cooperate 
     with the State in establishing the paternity of a child and 
     in obtaining child support payments unless the applicant or 
     recipient is found to have good cause for refusing to 
     cooperate. Under the ``good cause'' regulations, the child 
     support agency may determine that it is against the best 
     interests of the child to seek to establish paternity in 
     cases involving incest, rape, or pending procedures for 
     adoption. Moreover, the agency may determine that it is 
     against the best interest of the child to require the mother 
     to cooperate if it is anticipated that such cooperation will 
     result in the physical or emotional harm of the child, 
     parent, or caretaker relative.
     House bill
       Individuals who apply for or receive public assistance 
     under the Temporary Assistance for Needy Families program 
     must cooperate with child support enforcement efforts 
     (establishing paternity, establishing, modifying or enforcing 
     a support order) by providing specific identifying 
     information about the other parent, unless the applicant or 
     recipient is found to have good cause for refusing to 
     cooperate. ``Good cause'' is defined by States. States may 
     also require the applicant and child to submit to genetic 
     testing. (See also Prohibitions in Title 1, Section 101 of 
     the House bill.)
     Senate amendment
       The Senate provision is similar to the House provision 
     except the Senate amendment places additional specific 
     requirements on State procedures. These include requiring the 
     custodial parent to appear at interviews, hearings, and legal 
     proceedings; requiring the State child support agency to 
     notify the custodial parent and the IV-A and Medicaid 
     agencies of whether she is cooperating and if not what she 
     must do to cooperate; and requiring that when determining the 
     custodial parent's cooperation States take into account the 
     best interests of the child. The Senate amendment also 
     requires the individual and the child to submit to genetic 
     tests pursuant to a judicial or administrative order. 
     Responsibility for determining failure to cooperate is 
     shifted from the agency that administers the Temporary 
     Assistance program to the agency that administers the child 
     support program.
     Conference agreement
       The House recedes to the Senate's additional requirements 
     for cooperation by adults for or receiving IV-A benefits. In 
     addition, conferees agree to let States decide which agency 
     should make the determination of whether the parent is 
     cooperating.

             Subtitle E--Program Administration and Funding


                     21. Federal Matching Payments

     Present law
       The Federal Government currently reimburses each State at 
     the rate of 66 percent for the cost of administering its 
     child support enforcement program. The Federal Government 
     also reimburses States 90 percent of the laboratory costs of 
     establishing paternity, and through FY 1995, 90 percent of 
     the costs of developing comprehensive Statewide automated 
     systems. (There is no maintenance of effort provision in 
     current law.)
     House bill
       The Federal matching payment for child support activities 
     is maintained at 66 percent. The bill also adds a maintenance 
     of effort requirement that the non-Federal share of IV-D 
     funding for FY 1997 and succeeding years not be less than 
     such funding for FY 1996.
     Senate amendment
       No provision. Maintains present law with respect to the 
     Federal match rate of 66 percent.
     Conference agreement
       The conference agreement follows the Senate amendment.


      22. Performance-Based Incentives and Penalties (Section 341)

           A. Incentive Adjustments to Federal Matching Rate

     Present law
       The Federal government reimburses approved administrative 
     expenditures of States at a rate of 66 percent. In addition, 
     the Federal government pays States an incentive amount 
     ranging from 6 percent to 10 percent of both AFDC and non-
     AFDC collections.
     House bill
       Beginning in 1999, a new incentive system will reward good 
     State performance by increasing the State's basic matching 
     rate by up to 12 percentage points for outstanding 
     performance in establishing paternity and by up to an 
     additional 12 percentage points for overall performance (as 
     measured by the percentage of cases that have support orders, 
     the percentage of cases in which support is being paid, the 
     ratio of child support collected to child support due, and 
     cost-effectiveness). The Secretary will design the specific 
     features of the system. In doing so, she will maintain 
     overall Federal reimbursement of State programs through the 
     combined matching rate and incentives at the level projected 
     for the current combined matching and incentive payments to 
     States. The effect of this provision is to change Federal 
     financing so that relatively more Federal dollars will be 
     awarded to States for good performance. The State must spend 
     the money from incentive payments on their child support 
     enforcement program.
     Senate amendment
       As under current law, the Senate amendment provides for an 
     incentive payment to States, the funds for which come from 
     the reimbursement of cash welfare payments to the Federal 
     Government that is the Federal share of child support 
     collections paid on behalf of families. Not later than 60 
     days after enactment, the DHHS Secretary is required to 
     establish a committee, which must include State child support 
     directors, which must develop for the Secretary's approval a 
     formula for the distribution of incentive payments to the 
     States. The State's incentive payment is based on its 
     comparative performance as measured by five criteria and 
     seven factors that are stipulated in the amendment.
     Conference agreement
       The conferees agree to retain the present financing system 
     of 66 percent Federal matching payments and an incentive 
     system that enables States to increase their Federal payments 
     by up to 10 percent of AFDC and non-AFDC collections. 
     However, the conferees also require the Secretary, in 
     consultation with State child support directors, to develop a 
     new incentive system that provides additional payments to 
     States (i.e., above the base matching rate of 66 percent) 
     based on their performance and to report details of the new 
     system to the Committees on Ways and Means and Finance by 
     June 1, 1996. The Secretary's new system must be revenue 
     neutral. The two committees intend to study the Secretary's 
     recommendations, as well as recommendations by other 
     individuals and organizations, and to design and perhaps 
     enact a new incentive system that is revenue neutral in the 
     near future.

                        B. Conforming Amendments

     Present law
       No provision.
     House bill
       Two conforming amendments are made in Section 454 of the 
     Social Security Act.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the two conforming amendments in the 
     House bill.

       C. Calculation of IV-D Paternity Establishment Percentage

     Present law
       States are required to meet Federal standards for the 
     establishment of paternity. The standard relates to the 
     percentage obtained by dividing the number of children in the 
     State who are born out of wedlock, are receiving AFDC or 
     child support enforcement services, and for whom paternity 
     has been established by the number of children who 

[[Page H15423]]
     are born out of wedlock and are receiving AFDC or child support 
     enforcement services. To meet Federal requirements, this 
     percentage in a State must be at least 75 percent or meet the 
     following standards of improvement from the preceding year: 
     (1) if the State paternity establishment ratio is between 50 
     and 75 percent, the State ratio must increase by 3 or more 
     percentage points from the ratio of the preceding year; (2) 
     if the State ratio is between 45 and 50, the ratio must 
     increase at least 4 percentage points; (3) if the State ratio 
     is between 40 and 45 percent, it must increase at least 5 
     percentage points; and (4) if the State ratio is below 40 
     percent, it must increase at least 6 percentage points. If an 
     audit finds that the State's child support enforcement 
     program has not substantially complied with the requirements 
     of its State plan, the State is subject to a penalty. In 
     accord with this penalty, the Secretary must reduce a State's 
     AFDC benefit payment by not less than 1 percent nor more than 
     2 percent for the first failure to comply; by not less than 2 
     percent nor more than 3 percent for the second consecutive 
     failure to comply; and by not less than 3 percent nor more 
     than 5 percent for third or subsequent consecutive failure to 
     comply.
     House bill
       The IV-D paternity establishment percentage for a fiscal 
     year is equal to: (1) the total number of children in the 
     State who were born out-of-wedlock, who have not reached age 
     1 and for whom paternity is acknowledged or established 
     during the fiscal year, divided by (2) the total number of 
     children born out-of-wedlock in the State during the fiscal 
     year. The requirements for meeting the standard are the same 
     as current law except the 75 percent rule is increased to 90 
     percent. The noncompliance provisions of the child support 
     program are modified so that the Secretary must take overall 
     program performance into account and the minimum paternity 
     establishment percentage is raised from 75 to 90.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment. States have the option of calculating the 
     paternity establishment rate by either counting only unwed 
     births in the State IV-D caseload or by counting all unwed 
     births in the State.

                           D. Effective Dates

     Present law
       No provision.
     House bill
       The new incentive payments go into effect on October 1, 
     1997, but procedures for computing the State incentive 
     payments are not actually based on the new system until 
     fiscal year 1999; the changes in penalty procedure become 
     effective upon enactment.
     Senate amendment
       Effective upon enactment, except present law applies for 
     purposes of incentive payments for fiscal years before FY 
     2000.
     Conference agreement
       Effective upon enactment.


         23. Federal and State Reviews and Audits (Section 342)

                       A. State Agency Activities

     Present law
       States are required to maintain a full record of child 
     support collections and disbursements and to maintain an 
     adequate reporting system.
     House bill
       States are required to annually review and report to the 
     Secretary, using data from their automatic data processing 
     system, both information adequate to determine the State's 
     compliance with Federal requirements for expedited procedures 
     and timely case processing as well as the information 
     necessary to calculate their levels of accomplishment and 
     rates of improvement on the performance indicators in the 
     bill.
     Senate amendment
       Similar to House provision, except the Senate does not 
     include the requirement that States submit information on 
     State compliance with Federal mandates on timely case 
     processing.
     Conference agreement
       The conference agreement follows both the House and Senate 
     provisions but the House recedes by dropping its requirement 
     that States submit information on timely case processing.

                         B. Federal Activities

     Present law
       The Secretary must collect and maintain, on a fiscal year 
     basis, up-to-date State-by-State statistics on each of the 
     services provided under the child support enforcement 
     program. The Secretary is also required to evaluate the 
     implementation of State child support enforcement programs 
     and conduct audits of these programs as necessary, but not 
     less often than once every three years (or annually if a 
     State has been found to be out of compliance with program 
     rules).
     House bill
       The Secretary is required to determine the amount (if any) 
     of incentives or penalties. The Secretary must also review 
     State reports on compliance with Federal requirements and 
     provide States with recommendations for corrective action. 
     Audits must be conducted at least once every 3 years, or more 
     often in the case of States that fail to meet Federal 
     requirements. The purpose of the audits is to assess the 
     completeness, reliability, accuracy, and security of data 
     reported for use in calculating the performance indicators 
     and to assess the adequacy of financial management of the 
     State program.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                           C. Effective Date

     Present law
       No provision.
     House bill
       These provisions take effect beginning with the calendar 
     quarter that begins 12 months after enactment.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.


            24. required reporting procedures (section 343)

     Present law
       The Secretary is required to assist States in establishing 
     adequate reporting procedures and must maintain records of 
     child support enforcement operations and of amounts collected 
     and disbursed, including costs incurred in collecting support 
     payments.
     House bill
       The Secretary is required to establish procedures and 
     uniform definitions for State collection and reporting of 
     information necessary to measure State compliance with 
     expedited processes and timely case processing.
     Senate amendment
       Smilar to House provision, except does not mention timely 
     case processing.
     Confrence agreement
       The conference agreement follow both the House and Senate 
     provisions except, as in the State Agency Activities 
     provision (see #23A above), the House recedes by dropping 
     State reports on timely case processing.


        25. automated data processing requirements (section 344)

                             A. In General

     Present Law
       Federal law (P.L. 104-35) requires that by October 1, 1997, 
     States have an operational automated data processing and 
     information retrieval system designed to control, account 
     for, and monitor all factors in the support enforcement and 
     paternity determination process, the collection and 
     distribution of support payments, and the costs of all 
     services rendered.
     House bill
       States are required to have a single Statewide automated 
     data processing and information retrieval system which has 
     the capacity to perform the necessary functions, as described 
     in this section.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                         B. Program Management

     Present law
       Federal law requires the that automated data processing 
     system be capable of providing management information on all 
     IV-D cases from intital referral or application through 
     collection and enforcement.
     House bill
       The State data system must be used to perform functions the 
     Secretary specifies, including controlling and accounting for 
     the use of Federal, State, and local funds and maintaining 
     the data necessary to meet Federal reporting requirements in 
     carrying out the program.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                C. Calculation of Performance Indicators

     Present law
       No provision.
     House bill
       The automated system must maintain the requisite data for 
     Federal reporting, calculate the State's performance for 
     purposes of the incentive and penalty provisions, and have in 
     place systems controls to ensure the completeness, 
     reliability, and accuracy of the data.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                 D. Information Integrity and Security

     Present law
       Federal law requires that the automated data processing 
     system be capable of providing security against unauthorized 
     access to, or use of, the data in such system.
     House bill
       The State agency must have safeguards to protect the 
     integrity, accuracy, and completeness of, and access to, data 
     in the automated systems (including restricting access 

[[Page H15424]]
     to passwords, monitoring of access to and use of the system, training, 
     and imposing penalties).
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                             E. Regulations

     Present law
       No provision.
     House bill
       The Secretary shall prescribe final regulations for 
     implementation of this section no later than 2 years after 
     the date of the enactment of this Act.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

                      F. Implementation Timetable

     Present law
       No provision.
     House bill
       The statutory provisions for State implementation of 
     Federal automatic data processing requirements are revised to 
     provide that, first, all requirements enacted on or before 
     the date of enactment of the Family support Act of 1988 are 
     to be met by October 1, 1995. The requirements enacted on or 
     before the date of enactment of this bill must be met by 
     October 1, 1999. The October 1, 1999 deadline will be 
     extended by one day for each day by which the Secretary fails 
     to meet the 2-year deadline for regulations.
     Senate amendment
       Similar to House provision, except allows States to meet 
     requirements of the Family Support Act by October 1, 1997 
     rather than 1995.
     Conference agreement
       The conference agreement follows both House and Senate 
     provisions but the completion date for data requirements 
     imposed on States by the Family Support Act follows the 
     Senate provision of October 1, 1997.

  G. Special Federal Matching Rate for Development Costs of Automated 
                                Systems

     Present law
       The Federal Government, through FY 1995, reimburses States 
     at a 90 percent matching rate for the costs of developing 
     comprehensive Statewide automated systems.
     House bill
       The Federal government will provide 90 percent matching 
     funds for fiscal year 1996 that will be applied to all State 
     activities related to developing a comprehensive Statewide 
     automated system. For fiscal years 1997 through 2001, the 
     matching rate for the provisions of this bill and other 
     authorized provisions will be the higher of 80 percent or the 
     matching rate generally applicable to the State IV-D program, 
     including incentive payments (which could be as high as 90 
     percent).
     Senate amendment
       Similar to House provision except continues the 90 percent 
     matching rate for 1996 and 1997 in the case of provisions 
     outlined in advanced planning documents submitted before May 
     1, 1995.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment but the House recedes on the provision to continue 
     90 percent reimbursement of data processing activities that 
     were included in any advanced planning document approved by 
     the Secretary before May 1, 1995. The 90 percent funding, 
     which continues through October 1, 1997, includes approved 
     expenditures by States that were made between October 1, 1995 
     and the date of passage of this legislation.

H. Temporary Limitation on Payments Under Special Federal Matching Rate

     Present law
       No provision.
     House bill
       The Secretary must create procedures to cap these payments 
     at $260,000,000 over 5 years (FY 1996-2000) to be distributed 
     among States by a formula set in regulations which takes into 
     account the relative size of State caseloads and the level of 
     automation needed to meet applicable automatic data 
     processing requirements.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment, except the limitation on payments is increased 
     from $260,000,000 to $400,000,000. This increase was made 
     necessary by general agreement by analysts at HHS and the 
     Congressional Budget Office that the numerous data processing 
     requirements imposed by this Act would cost the States $400 
     million to implement.


                 26. technical assistance (section 345)

     Present law
       Annual appropriations are made to cover the expenses of the 
     Administration for Children and Families, which includes the 
     Federal Office of Child Support Enforcement (OCSE). Among 
     OCSE's administrative expenses are the costs of providing 
     technical assistance to the States.
     House bill
       The Secretary can use 1 percent of the Federal share of 
     child support collections on behalf of families in the 
     Temporary Assistance for Needy Families program the preceding 
     year to provide technical assistance to the States. Technical 
     assistance can include training of State and Federal staff, 
     research and demonstration programs, and special projects of 
     regional or national significance. The Secretary must use up 
     to 2 percent of the Federal share of collections for 
     operation of the Federal Parent Locator Service to the extent 
     that costs of the Parent Locator Service are not recovered by 
     user fees.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


     27. reports and data collection by the secretary (section 346)

     Present law
       The Secretary is required to submit to Congress, not later 
     than 3 months after the end of the fiscal year, a complete 
     report on all child support enforcement activities.
     House bill
       In addition to current reporting requirements, the 
     Secretary is required to report the following data to 
     Congress in her annual report each fiscal year:
       (1) the total amount of child support payments collected;
       (2) the cost to the State and Federal governments of 
     furnishing child support services;
       (3) the number of cases involving families that became 
     ineligible for aid under part A with respect to whom a child 
     support payment was received;
       (4) the total amount of current support collected and 
     distributed;
       (5) the total amount of past due support collected and 
     distributed as arrearages; and
       (6) the total amount of support due and unpaid for all 
     fiscal years.
     These requirements apply to fiscal year 1996 and succeeding 
     fiscal years.
     Senate amendment
       Similar to House provision, except requires the Secretary 
     to include information on the degree to which States met 
     Federal statutory time limits in responding to interstate 
     requests and in distributing child support collections.
     Conference agreement
       Conferees agree to follow the provisions in both bills 
     except that the House recedes on the additional requirements 
     the Senate included in the Secretary's report to Congress.

      Subtitle F--Establishment and Modification of Support Orders


            28. national child support guidelines commission

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Establishes a National Child Support Guidelines Commission 
     that is responsible for deciding whether it is appropriate to 
     develop national child support guidelines for consideration 
     by the Congress or for adoption by individual States and the 
     benefits and deficiencies of such models. Several matters the 
     Commission must consider, such as the feasibility of adapting 
     uniform terms in all child support orders, are outlined. The 
     Commission is to be comprised of 12 individuals, 2 each 
     appointed by the Chairman of Finance and Ways and Means, 1 
     each by the ranking member of Finance and Ways and Means, and 
     6 by the Secretary. The Commission report must be issued 
     within 2 years.
     Conference agreement
       The Senate recedes to the House provision of no National 
     Guidelines Commission.


   29. simplified process for review and adjustment of child support 
                          orders (section 351)

     Present law
       A child support order legally obligates noncustodial 
     parents to provide financial support for their child and 
     stipulates the amount of the obligation and how it is to be 
     paid. In 1984, P.L. 98-378 required States to establish 
     guidelines for establishing child support orders. In 1988, 
     P.L. 100-485 made the guidelines binding on judges and other 
     officials who had authority to establish support orders. P.L. 
     100-485 also required States to review and adjust individual 
     child support orders once every 3 years under some 
     circumstances. States are required to notify both resident 
     and nonresident parents of their right to a review.
     House bill
       States must review and, as appropriate, adjust the support 
     order every 3 years. States may adjust child support orders 
     by either applying the State guidelines and updating the 
     reward amount or by applying a cost of living increase to the 
     order. Both parties must be given 30 days after notice of 
     adjustment to contest the results. States may use automated 
     methods to identify orders eligible for review, conduct the 
     review, identify orders eligible for adjustment, and apply 
     the appropriate adjustment to the orders based on the 
     threshold established by the State. States must also review 
     and, upon a showing of a change in circumstances, adjust 
     orders pursuant to the child support guidelines upon 

[[Page H15425]]
     request of a party. States are required to give parties one notice of 
     their right to request review and adjustment, which may be 
     included in the order establishing the support amount.
     Senate amendment
       Similar to House provision except adds that review and 
     adjustment must be done ``upon the request of either parent 
     or the State.'' If neither parent requests a review, States 
     have the option of avoiding the 3-year requirement.
     Conference agreement
       Conferees agree to follow the House and Senate provisions 
     with one exception. The House recedes to the Senate provision 
     that States are not required to conduct reviews unless 
     requested by either parent but with the additional 
     requirement that States inform mothers at least once every 3 
     years in writing of their right to a review.


30. furnishing consumer reports for certain purposes relating to child 
                         support (section 352)

     Present law
       P.L. 102-537 amends the Fair Credit Act to require consumer 
     reporting agencies to include in any consumer report 
     information on child support delinquencies provided by or 
     verified by a child support enforcement agency, which 
     antedates the report by 7 years.
     House bill
       This section amends the Fair Credit Reporting Act. In 
     response to a request by the head of a State or local child 
     support agency (or a State or local government official 
     authorized by the head of such an agency), consumer credit 
     agencies must release information if the person making the 
     request: certifies that the consumer report is needed to 
     establish an individual's capacity to make child support 
     payments or determine the level of payments; gives the 
     consumer credit agency 10 days notice that the report is 
     being requested; and provides assurances that the consumer 
     report will be kept confidential, will be used solely for 
     child support purposes, and will not be used in connection 
     with any other civil, administrative, or criminal proceeding 
     or for any other purpose. Consumer reporting agencies must 
     also give reports to a child support agency for use to set an 
     initial or modified award.
     Senate amendment
       Similar to House provision, except requires that the 
     consumer must have been shown to be the father (i.e., 
     paternity must be established).
     Conference agreement
       The conference agreement follows both the House and Senate 
     provisions except that the House recedes to the Senate 
     requirement that the consumer must have been shown to be the 
     father.


   31. nonliability for depository institutions providing financial 
                         records (section 353)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Depository institutions are not liable for information 
     provided to child support agencies. Child support agencies 
     can disclose information obtained from depository 
     institutions only for child support purposes. Individuals who 
     knowingly disclose information from financial records can 
     have civil actions brought against them in Federal district 
     court; the maximum penalty is $1,000 for each disclosure or 
     actual damages plus, in the case of ``willful disclosure'' 
     resulting from ``gross negligence'' punitive damages, plus 
     the costs of the action.
     Conference agreement
       The House recedes to the Senate requirement that States 
     have laws protecting depository institutions when information 
     is provided to child support agencies.

                Subtitle G-Enforcement of Support Orders


                  32. federal income tax refund offset

  A. Changed Order of Refund Distribution Under Internal Revenue Code

     Present law
       Since 1981 in AFDC cases, and 1984 in non-AFDC cases, 
     Federal law has required States to implement procedures under 
     which child support agencies can collect child support 
     arrearages through the inception of Federal income tax 
     refunds.
       Child support arrearages obtained through Federal income 
     tax refunds are distributed to the State and are retained by 
     the State for arrearages owed to it under the AFDC 
     assignment. States must reimburse the Federal government for 
     their share of these arrearage payments. If no arrearages are 
     owed the State, the money is used to pay arrearages to the 
     family.
     House bill
       The Internal Revenue Code is amended so that offsets of 
     child support arrears owed to individuals take priority over 
     most debts owed Federal agencies. Proceeds from tax 
     intercepts will be distributed as follows:
       (1) for Federal education debts and debts to the Department 
     of Health and Human Services;
       (2) for child support owed to individuals;
       (3) for child support arrearages owed to State governments; 
     and
       (4) for other Federal debts.
       The provision also amends the Internal Revenue Code so that 
     the order of priority for distribution of tax offsets follows 
     the distribution rules for child support payments specified 
     in subtitle A of this bill.
     Senate amendment
       No provision.
     Conference agreement
       The House recedes to the Senate so that the order of 
     payments from the intercepts remains unchanged.

B. Elimination of Disparities in Treatment of Assigned and Non-Assigned 
                               Arrearages

     Present law
       Federal rules set different criteria for AFDC and non-AFDC 
     cases. For example, in AFDC cases arrearages may be collected 
     through the income tax offset program regardless of the 
     child's age. In non-AFDC cases, the tax offset program can be 
     used only if the postminor child is disabled (pursuant to the 
     meaning of disability under titles II or XVI of the SSA). 
     Moreover, the arrearage in AFDC cases must be only $150 or 
     more, whereas the arrearage in non-AFDC cases must be at 
     least $500.
     House bill
       The bill eliminates disparate treatment of families not 
     receiving public assistance by repealing provisions 
     applicable only to support arrears not assigned to the State. 
     The Secretary of the Treasury is given access to information 
     in the National Directory of new Hires for tax purposes.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate bill (no 
     provision).


  33. internal revenue service collection of arrearages (section 361)

     Present law
       If the amount of overdue child support is at least $750, 
     the Internal Revenue Service can enforce the child support 
     obligation through its regular collection process, which may 
     include seizure of property, freezing accounts, or use of 
     other procedures if the child support enforcement agencies 
     requests assistance according to prescribed rules (e.g., 
     certifying that the delinquency is at least $750, etc.)
     House bill
       No provision.
     Senate amendment
       Amends the Internal Revenue Code so that no additional fees 
     can be assessed for adjustment to previously certified 
     amounts for the same obligor, effective October 1, 1997.
     Conference agreement
       The House recedes to the Senate requirement that IRS cannot 
     charge additional fees in the case of a previously certified 
     amount for the same obligor.


 34. Authority to Collect Support from Federal Employees (Section 362)

            A. Consolidation and Streamlining of Authorities

     Present law
       Federal law allows the wages of Federal employees to be 
     garnished to enforce legal obligations for child support or 
     alimony. Federal law provides that moneys payable by the 
     United States to any individual are subject to being 
     garnished in order to meet an individual's legal obligation 
     to provide child support or make alimony payments. An 
     executive order issued 2/27/95 establishes the Federal 
     government as a model employer in promoting and facilitating 
     the establishment and enforcement of child support.
       By Executive Order on 2/27/95, all Federal agencies, 
     including the Uniformed Services, are required to cooperate 
     fully in efforts to establish paternity and child support and 
     to enforce the collection of child and medical support. All 
     Federal agencies are to review their wage withhholding 
     procedures to ensure that they are in full compliance.
       Beginning no later than July 1, 1995, the Director of the 
     Office of Personal Management must publish annually in the 
     Federal Register the list of agents (and their addresses) 
     designated to receive service of withholding notices for 
     Federal employees.
       Federal law states that neither the United States nor any 
     disbursing officer or government entity shall be liable with 
     respect to any payment made from moneys due or payable from 
     the United States pursuant to the legal process.
       Federal law provides that money that may be garnished 
     includes compensation for personal services, whether such 
     compensation is denominated as wages, salary, commission, 
     bonus, pay, or otherwise, and includes but is not limited to, 
     severance pay, sick pay, incentive payments, and periodic 
     payments.
       Includes definitions of ``United States'', ``child 
     support'', ``alimony'', ``private person'', and ``legal 
     process''.
     House bill
       Federal Employees are subject to wage withholding and other 
     actions taken against them by State Child Support Enforcement 
     Agencies.
       Federal agencies are responsible for wage withholding and 
     other child support actions taken by the State as if they 
     were a private employer.
       The head of each Federal agency must designate an agent and 
     place the agent's name, title, address, and telephone number 
     in the 

[[Page H15426]]
     Federal Register annually. The agent must, upon receipt of process, 
     send written notice to the individual involved as soon as 
     possible, but no later than 15 days, and to comply with any 
     notice of wage withholding or respond to other process within 
     30 days.
       Amends existing law governing allocation of moneys owed by 
     a Federal employee to give priority to child support, to 
     require allocation of available funds, up to the amount owed, 
     among child support claimants, and to allocate remaining 
     funds to other claimants on a first-come, first-served basis.
       A government entity served with notice of process for 
     enforcement of child support is not required to change its 
     normal pay and disbursement cycle to comply with the legal 
     process.
       Similar to current law, the U.S., the government of the 
     District of Columbia, and disbursing officers are not liable 
     for child support payments made in accord with this section; 
     nor is any Federal employee subject to disciplinary action or 
     civil or criminal liability for disclosing information while 
     carrying out the provisions of this section.
       The President has the authority to promulgate regulations 
     to implement this section as it applies to Federal employees 
     of the Administrative branch of government; the President Pro 
     Tempore of the Senate and Speaker of the House can issue 
     regulations governing their employees; and the Chief Justice 
     can issue regulations applicable to the Judicial branch.
       This section broadens the definition of income to include 
     funds such as insurance benefits, retirement and pension pay, 
     survivor's benefits, compensation for death and black lung 
     disease, veteran's benefits, and workers' compensation; but 
     to exclude from income funds paid to defray expenses incurred 
     in carrying out job duties, owed to the U.S., used to pay 
     Federal employment taxes and fines and forfeitures ordered by 
     court martial, withheld for tax purposes, used for health 
     insurance or life insurance premiums, normal retirement 
     contributions, or life insurance premiums.
       This section includes definitions of ``United States'', 
     ``child support'', ``alimony'', ``private person'', and 
     ``legal process''.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                        B. Conforming Amendments

     Present law
       No provision.
     House bill
       This section includes conforming amendments to Title IV of 
     the Social Security Act and Title 5 of the United States 
     Code.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                  C. Military Retired and Retainer Pay

     Present law
       No provision.
     House bill
       This section expands the definition of court to include an 
     administrative or judicial tribunal which includes the child 
     support enforcement agency.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           D. Effective Date

     Present law
       No provision.
     House bill
       This section goes into effect 6 months after the date of 
     enactment.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


 35. enforcement of child support obligations of members of the armed 
                          forces (section 363)

                 A. Availability of Locator Information

     Present law
       The Executive Order issued February 27, 1995 requires a 
     study which would include recommendations related to how to 
     improve service of process for civilian employees and members 
     of the Uniformed Services stationed outside of the United 
     States.
     House bill
       The Secretary of Defense must establish a central personnel 
     locator service that contains residential or, in specified 
     instances, duty addresses of every member of the Armed 
     Services (including retirees, the National Guard, and the 
     Reserves). The locator service must be updated within 30 days 
     of the time an individual establishes a new address. 
     Information from the locator service must be made available 
     to the Federal Parent Locator Service.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

      B. Facilitating Granting of Leave for Attendance at Hearings

     Present law
       No provision.
     House bill
       The Secretary of Defense must issue regulations to 
     facilitate granting of leave for members of the Armed 
     Services to attend hearings to establish paternity or to 
     establish child support orders.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

  C. Payment of Military Retired Pay in Compliance With Child Support 
                                 Orders

     Present law
       Federal law requires allotments from the pay and allowances 
     of any member of the uniformed service when the member fails 
     to pay child (or child and spousal) support payments.
     House bill
       The Secretary of each branch of the Armed Forces (including 
     retirees, the Coast Guard, the National Guard, and the 
     Reserves) is required to make child support payments directly 
     to any State to which a custodial parent has assigned support 
     rights as a condition of receiving public assistance. The 
     Secretary of Defense must also ensure that payments to 
     satisfy current support or child support arrears are made 
     from disposable retirement pay. Payroll deductions must begin 
     within 30 days or the first pay period after 30 days of 
     receiving a wage withholding order.
     Senate amendment
       Identical provision
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


           36. voiding of fraudulent transfers (section 364)

     Present law
       No provision.
     House bill
       States must have in effect the Uniform Fraudulent 
     Conveyance Act of 1981, the Uniform Fraudulent Transfer Act 
     of 1984, or an equivalent law providing for voiding transfers 
     of income or property in order to avoid payment of child 
     support.
     Senate amendment
       Identical provision.
     Conference agreement
       The Conference agreement follows the House bill and the 
     Senate amendment.


    37. Sense of the Congress that States Should Suspend Drivers', 
  Business, and Occupational Licenses of Persons Owing Past-Due Child 
                                Support

     Present law
       No provision.
     House bill
       It is the sense of Congress that each State should suspend 
     any driver's license, business license, or occupational 
     license issued to any person who owes past-due child support.
     Senate amendment
       No provision.
     Conference agreement
       House recedes (no provision).


38. work requirement for persons owing past-due child support (section 
                                  365)

     Present law
       P.L. 100-485 required the Secretary to grant waivers to up 
     to 5 States allowing them to provide JOBS services on a 
     voluntary or mandatory basis to noncustodial parents who are 
     unemployed and unable to meet their child support 
     obligations. (In their report the conferees noted that the 
     demonstrations would not grant any new powers to the States 
     to require participation by noncustodial parents. The 
     demonstrations were to be evaluated.)
     House bill
       States must have laws that direct courts to order 
     individuals owing past-due child support for a child 
     receiving assistance under the Temporary Family Assistance 
     program either to pay the support due or to participate in 
     work activities. ``Past-due support'' is defined.
     Senate amendment
       Similar to House provision, except refers to ``support'' 
     rather than ``past-due support.''
     Conference agreement
       Conferees agree to follow the House and Senate provisions 
     except that the Senate recedes to the House provision that 
     work apply only to nonresident parents owing past-due 
     support.


             39. definition of support order (section 366)

     Present law
       No provision.
     House bill
       A support order is defined as an order issued by a court or 
     an administrative process established under State law that 
     requires support of a child or of a child and the parent with 
     whom the child lives.
     Senate amendment
       A support order is defined as a judgement, decree, or order 
     (whether temporary, final, or subject to modification) issued 
     by a court or an administrative agency for the support 
     (monetary support, health care, arrearages, or reimbursement) 
     of a child (including a 

[[Page H15427]]
     child who has reached the age of majority under State law) or of a 
     child and the parent with whom the child lives.
     Conference agreement
       The House recedes to the Senate definition of a support 
     order.


        40. reporting arrearage to credit bureaus (section 367)

     Present law
       Federal law requires States to implement procedures which 
     require them to periodically report to consumer reporting 
     agencies the name of debtor parents owing at least 2 months 
     of overdue child support and the amount of child support 
     overdue. However, if the amount overdue is less than $1,000, 
     information regarding it shall be made available only at the 
     option of the State. Moreover, any information may only be 
     made available after the noncustodial parent has been 
     notified of the proposed action and has been given reasonable 
     opportunity to contest the accuracy of the information. 
     States are permitted to charge consumer reporting agencies 
     that request child support arrearage information for a fee, 
     not to exceed the actual cost.
     House bill
       No provision.
     Senate amendment
       States are required to have procedures to periodically 
     report to consumer credit reporting agencies the name of any 
     noncustodial parent who is delinquent in the payment of 
     support and the amount of overdue support owed by the parent.
     Conference agreement
       The House recedes to the Senate requirement that States 
     periodically report to consumer credit reporting agencies.


                        41. liens (section 368)

     Present law
       Federal law requires State to implement procedures under 
     which liens are imposed against real and personal property 
     for amounts of overdue support owed by a noncustodial parent 
     who resides or owns property in the State.
     House bill
       States are required to have procedures to accord full faith 
     and credit and to enforce in accordance with State law a lien 
     from another State. The lien must be accompanied by a 
     certification from the State issuing the lien of the amount 
     of overdue support and a certification that due process 
     requirements have been met. The second State is not required 
     to register the underlying order, unless contested on the 
     grounds of mistake of fact.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


     42. State Law Authorizing Suspension of Licenses (Section 369)

     Present law
       No provision.
     House bill
       States have the authority to withhold, suspend, or restrict 
     the use of drivers' licenses, professionals and occupational 
     licenses, and recreational licenses of individuals owing 
     past-due support or failing, after receiving appropriate 
     notice, to comply with subpoenas or warrants relating to 
     paternity or child support proceedings.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


 43. Denial of Passports for Nonpayment of Child Support (Section 370)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       If an individual owes arrearages in excess of $5,000 of 
     child support, the Secretary of HHS must request that the 
     State Department deny, revoke, or limit the individual's 
     passport. State child support agencies must have procedures 
     for certifying arrearages in excess of $5,000 and for 
     notifying individuals who are in arrears.
     Conference agreement
       The House recedes to the Senate provision of revoking 
     passports for individuals owing more than $5,000 in 
     delinquent child support.


       44. International Child Support Enforcement (Section 371)

     Present law
       The United States has not signed any of the major treaties 
     regarding international support enforcement. Pursuant to the 
     Uniform Reciprocal Enforcement of Support Act (URESA), most 
     States have reciprocal agreements with at least one foreign 
     country regarding reciprocal enforcement of support orders. 
     State do not have the power to enter into treaties.
     House bill
       No provision.
     Senate amendment
       The Secretary of State is authorized to negotiate 
     reciprocal agreements with foreign nations on behalf of the 
     States, territories, and possessions of the United States 
     regarding the international enforcement of child support 
     obligations.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     substantial modification. The Secretary of State, with 
     concurrence of the Secretary of HHS, is authorized to declare 
     reciprocity with foreign countries having requisite 
     procedures for establishing and enforcing support orders. The 
     Secretary may revoke reciprocity if she determines that the 
     enforcement procedures do not continue to meet the requisite 
     criteria.
       The requirements for reciprocity include procedures in the 
     foreign country for U.S. residents--available at no cost--to 
     establish parentage, to establish and enforce support orders 
     for children and custodial parents, and to distribute 
     payments.
       The Secretary of HHS is required to facilitate enforcement 
     services in international cases involving residents of the 
     U.S. and of foreign reciprocating countries, including 
     developing uniform forms and procedures, and providing 
     information from the FPLS on the State of residence of the 
     obligor.
       Where there is no Federal reciprocity agreement, States are 
     permitted to enter into reciprocal agreements with foreign 
     countries.
       The State plan must provide that request for services in 
     international cases be treated the same as interstate cases, 
     except that no application will be required and no costs will 
     be assessed against the foreign country or the obligee (costs 
     may be assessed at State option against the obligor).


45. Denial of Means-Tested Federal Benefits to Noncustodial Parents Who 
                 Are Delinquent in Paying Child Support

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Noncustodial parents who are more than 2 months delinquent 
     in paying child support are not eligible to receive means-
     tested Federal benefits.
     Conference agreement
       Senate recede (no provision).


            46. Child Support Enforcement for Indian Tribes

     Present law
       There are about 340 Federally recognized Indian tribes in 
     the 48 contiguous States. Among these tribes there are 
     approximately 130 tribal courts and 17 Courts of Indian 
     Offenses. Most tribal codes authorize their courts to hear 
     parentage and child support matters that involve at least one 
     member of the tribe or person living on the reservation. This 
     jurisdiction may be exclusive or concurrent with State court 
     jurisdiction, depending on specified circumstances.
     House bill
       No provision.
     Senate amendment
       Requires States to make reasonable efforts to enter into 
     cooperative agreements with an Indian tribe or organization 
     if the tribe or organization has an established tribal court 
     system to establish paternity, establish and enforce support 
     orders, and enter support orders in accordance with 
     guidelines established by the tribe or organization. Such 
     agreements shall provide for the cooperative delivery of 
     child support enforcement services in Indian country and for 
     the forwarding of all funds collected by the tribe or 
     organization to the State agency, or conversely, by the State 
     agency to the tribe or organization, which shall distribute 
     the funds according to the agreement. The DHHS Secretary in 
     appropriate cases is authorized to send Federal funds 
     directly to the tribe or organization.
     Conference agreement
       Senate recede (no provision).


          47. financial institution data matches (section 372)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       States are required to implement procedures under which the 
     State child support agency shall enter into agreements with 
     financial institutions doing business within the State to 
     develop and operate a data match system, using automated data 
     exchanges to the maximum extent feasible, in which such 
     financial institutions are required to provide for each 
     calendar quarter the name, address, Social Security number, 
     and other identifying information for each noncustodial 
     parent identified by the State who has an account at the 
     institution and, in response to a notice of lien or levy, to 
     encumber or surrender assets held by the institution on 
     behalf of the noncustodial parent who is subject to the child 
     support lien. Includes definition of the term ``financial 
     institution.''
     Conference agreement
       Conferees agree that the House recede to the Senate 
     requirement that States perform data matches on information 
     supplied by financial institutions in the case of parents who 
     owe past-due child support and have liens against them.
     
[[Page H15428]]



  48. enforcement of orders against paternal grandparents in cases of 
                      minor parents (Section 373)

     Present law
       No provision. However, Wisconsin and Hawaii have State laws 
     that make grandparents financially responsible for their 
     minor children's dependents.
     House bill
       No provision.
     Senate amendment
       States would be required to implement procedures under 
     which any child support order enforced by a child support 
     enforcement agency would be enforceable against the paternal 
     grandparents of a minor father if the child's minor mother 
     were receiving benefits from the Temporary Assistance for 
     Needy Families block grant program.
     Conference agreement
       The House recedes to the Senate requirement that paternal 
     grandparents be held accountable for paying child support in 
     the case of minor mothers with children being supported by 
     benefits from the Temporary Assistance for Needy Families 
     block grant, or that the maternal grandparents be held 
     accountable for paying child support in the case of a minor 
     father raising children who receive benefits from the 
     Temporary Assistance for Needy Families block grant.

                      Subtitle H--Medical Support


 49. technical correction to erisa definition of medical child support 
                          order (section 376)

     Present law
       P.L. 103-66 requires States to adopt laws to require health 
     insurers and employers to enforce orders for medical and 
     child support and forbids health insurers from denying 
     coverage to children who are not living with the covered 
     individual or who were born outside of marriage. Under P.L. 
     103-66, group health plans are required to honor ``qualified 
     medical child support orders.
     House bill
       This provision expands the definition of medical child 
     support order in ERISA to clarify that any judgment, decree, 
     or order that is issued by a court of competent jurisdiction 
     or by an administrative adjudication has the force and effect 
     of law.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


    50. Enforcement of orders for health care coverage (section 377)

     Present law
       Federal law requires the Secretary to require IV-D agencies 
     to petition for the inclusion of medical support as part of 
     child support whenever health care coverage is available to 
     the noncustodial parent at reasonable cost.
     House bill
       No provision.
     Senate amendment
       All orders enforced under this part must include a 
     provision for health care coverage. If the noncustodial 
     parent changes jobs and the new employer provides health 
     coverage, the State must send notice of coverage, which shall 
     operate to enroll the child in the health plan, to the new 
     employer.
     Conference agreement
       The House recedes to the Senate provision on medical care 
     coverage provided to children by nonresident parents changing 
     jobs.

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


 51. Grants to States for Access and Visitation Programs (Section 381)

                             A. In General

     Present law
       In 1988, Congress authorized the Secretary to fund for FY 
     1990 and FY 1991 demonstration projects by States to help 
     divorcing or never-married parents cooperate with each other, 
     especially in arranging for visits between the child and the 
     nonresident parent.
     House bill
       The bill authorizes grants to States for access and 
     visitation programs including mediation, counseling, 
     education, development of parenting plans, and visitation 
     enforcement. Visitation enforcement can include monitoring, 
     supervision, neutral drop-off and pick-up, and development of 
     guidelines for visitation and alternative custody agreements. 
     States are required to monitor and evaluate their programs 
     and are given the authority to subcontract the program to 
     courts, local public agencies, or private non-profit 
     agencies. Programs operating under the grant do not have to 
     be Statewide. Funding is authorized as capped spending under 
     section IV-D of the Social Security Act. Projects are 
     required to supplement rather than supplant State funds.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                           B. Amount of Grant

     Present law
       No provision.
     House bill
       The amount of the grant to a State is equal to either 90 
     percent of the State expenditures during the year for access 
     and visitation programs or the allotment for the State for 
     the fiscal year.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                         C. Allotment to States

     Present law
       No provision.
     House bill
       The allotment to the State bears the same ratio to the 
     amount appropriated for the fiscal year as the number of 
     children living in the State with one biological parent 
     divided by the national number of children living with one 
     biological parent. The Administration for Children and 
     Families must adjust allotments to ensure that no State is 
     allotted less than $50,000 for fiscal years 1996 or 1997 or 
     less than $100,000 for any year after 1997.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                        D. State Administration

     Present law
       No provision.
     House bill
       States may use the money to create their own programs or to 
     fund grant programs with courts, local public agencies, or 
     non-profit organizations. The programs do not need to be 
     Statewide. States must monitor, evaluate, and report on their 
     programs in accord with the regulations issued by the 
     Secretary.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

                    Subtitle J--Effect of Enactment


                   52. effective dates (section 391)

     Present law
       No provision.
     House bill
       Except as noted in the text of the bill for specific 
     provisions, the general effective date for provisions in the 
     bill is October 1, 1996. However, given that many of the 
     changes required by this bill must be approved by State 
     Legislatures, the bill contains a grace period tied to the 
     meeting schedule of State Legislatures. In any given State, 
     the bill becomes effective either on October 1, 1996 or on 
     the first day of the first calendar quarter after the close 
     of the first regular session of the State Legislature that 
     begins after the date of enactment of the bill. In the case 
     of States that require a constitutional amendment to comply 
     with the requirements of the bill, the grace period is 
     extended either 1 year after the effective date of the 
     necessary State constitutional amendment or 5 years after the 
     date of enactment of the bill.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
     Senate amendment
       The Senate amendment directs the Commissioner of Social 
     Security, within sixty days of enactment, to issue a request 
     for comments in the Federal Register regarding improvements 
     in the disability evaluation and determination procedures for 
     children under age 18. The Commissioner must review the 
     comments and issue regulations implementing changes within 18 
     months after enactment.
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).

  Temporary eligibility for cash benefits for poor disabled children 
 residing in States applying alternative income eligibility standards 
                             under Medicaid

     Present law
       States generally are required to provide Medicaid coverage 
     for recipients of SSI. However, States may use more 
     restrictive eligibility standards for Medicaid than those for 
     SSI if they were using those standards on January 1, 1972 
     (before implementation of SSI). States that have chosen to 
     apply at least one more restrictive standard are known as 
     ``section 209(b)'' States, after the section of the Social 
     Security Amendments of 1972 (P.L. 92-603) that established 
     the option. These States may vary in their definition of 
     disability, or in their standards related to income or 
     resources. There are 12 section 209(b) States: Connecticut, 
     Hawaii, Illinois, Indiana, Minnesota, Missouri, New 
     Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, and 
     Virginia.
     House bill
       The House bill provides for temporary eligibility for cash 
     SSI benefits (through the end of FY 1996) for children who 
     live in States that apply alternative income eligibility 
     standards under Medicaid (also known as ``209(b)'' States).
     Senate amendment
       No provision.
     
[[Page H15429]]

     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).


  4. reduction of cash benefits payable to institutionalized children 
   whose medical costs are covered by private insurance (section 214)

     Present law
       Federal law stipulates that when an individual enters a 
     hospital or other medical institution in which more than half 
     of the bill is paid by the Medicaid program, his or her 
     monthly SSI benefit standard is reduced to $30 per month. 
     This personal needs allowance is intended to pay for small 
     personal expenses, with the cost of maintenance and medical 
     care provided by the Medicaid program.
     House bill
       Cash SSI payments to institutionalized children would be 
     reduced for those whose medical costs are covered by private 
     insurance.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

    Additional accountability requirements for parents or guardians

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires a disabled child's 
     representative payee (usually the parent) to document 
     expenditures. These expenditures would be subject to 
     increased review by the Social Security Administration. 
     Effective for benefits paid after enactment.
     Conference agreement
       The conference agreement follow the House bill (i.e., no 
     provision).


                      5. Regulations (Section 215)

     Present law
       Not applicable.
     House bill
       The Commissioner of Social Security and the Secretary of 
     HHS will prescribe necessary regulations within three months 
     after enactment of this Act.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

    Examination of mental listings used to determine eligibility of 
           children for SSI benefits by reason of disability

     Present law
       Section 202 of the Social Security Independence and Program 
     Improvements Act of 1994 established a Childhood Disability 
     Commission to study the desirability and methods of 
     increasing the extent to which benefits are used in the 
     effort to assist disabled children in achieving independence 
     and engaging in substantial gainful activity. The Commission 
     was also charged with examining the effects of the SSI 
     program on disabled children and their families.
     House bill
       The Childhood Disability Commission must review the mental 
     listings used by the Social Security administration to 
     determine child SSI eligibility. The Commission should 
     conduct this investigation to ensure that the criteria in 
     these listings are appropriate and that SSI eligibility is 
     limited to children with serious disabilities for whom 
     Federal assistance is necessary to improve the child's 
     condition or quality of life.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision) due to the Childhood Disability 
     Commission having completed their final report.

Limitation on payments to Puerto Rico, the U.S. Virgin Islands and Guam 
         under programs of aid to the aged, blind, or disabled

       See description in section 108 of title I of the conference 
     agreement.

               Subtitle C--State Supplementation Programs


 1. repeal of maintenance of effort requirement applicable to optional 
    state programs for supplementation of ssi benefits (section 221)

     Present law
       Since the beginning of the SSI program, States have had the 
     option to supplement (with State funds) the Federal SSI 
     payment. The purpose of section 1618 was to encourage States 
     to pass along to SSI recipients the amount of any Federal SSI 
     benefit increase. Under section 1618, a State that is found 
     to be not in compliance with the ``pass along/maintenance of 
     effort provision'' is subject to loss of its Medicaid 
     reimbursements. Section 1618 allows States to comply with the 
     ``pass along/maintenance of effort'' provision by either 
     maintaining their State supplementary payment levels at or 
     above 1983 levels or by maintaining total annual expenditures 
     for supplementary payments (including any Federal cost-of-
     living adjustment) at a level at least equal to the prior 12-
     month period, provided the State was in compliance for that 
     period. In effect, section 1618 requires that once a State 
     elects to provide supplementary payments it must continue to 
     do so. [Sec. 1618 of the Social Security Act]
     House bill
       The House bill repeals the maintenance of effort 
     requirements (Sec. 1618) applicable to optional State 
     programs for supplementation of SSI benefits effective date 
     of enactment.
     Senate amendment
       Similar to the House bill.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that the effective date is the date of 
     enactment.

          Limited eligibility of noncitizens for SSI benefits

       See description in title IV of the conference agreement.

   Subtitle D--Studies Regarding Supplemental Security Income Program


                 1. annual report on SSI (Section 231)

     Present law
       To date, the Department of Health and Human Services and 
     now the Social Security Administration have collected, 
     compiled, and published annual and monthly SSI data, but 
     Federal law does not require an annual report on the SSI 
     program.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires the Commissioner of Social 
     Security to prepare and provide to the President and the 
     Congress an annual report on the SSI program, which includes 
     specified information and data. The report is due May 30 of 
     each year.
     Conference agreement
       The conference agreement follows the Senate amendment.


       2. Study of Disability Determination Process (Section 232)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       Within 90 days of enactment, the Commissioner must contract 
     with the National Academy of Sciences or another independent 
     entity to conduct a comprehensive study of the disability 
     determination process for SSI and SSDI. The study must 
     examine the validity, reliability and consistency with 
     current scientific standards of the Listings of Impairments 
     cited above.
       The study must also examine the appropriateness of the 
     definitions of disability (and possible alternatives) used in 
     connection with SSI and SSDI; and the operation of the 
     disability determination process, including the appropriate 
     method of performing comprehensive assessments of individuals 
     under age 18 with physical or metal impairments.
       The Commissioner must issue interim and final reports of 
     the findings and recommendations of the study within 18 
     months and 24 months, respectively, from the date of contract 
     for the study.
     Conference agreement
       The conference agreement follows the Senate amendment.


            3. general accounting office study (section 233)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Senate amendment requires the General Accounting Office 
     to study and report on the impact of title II of the Senate 
     amendment on the SSI program by January 1, 1998.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that the study also include extra expenses 
     incurred by families of children receiving SSI that are not 
     covered by other Federal, State, or local programs.

      Subtitle E--National Commission on the Future of Disability


                     1. Establishment (Section 241)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission is established and expenses are to be paid 
     from funds appropriated to the Social Security 
     Administration.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification that there are authorized to be appropriated 
     such sums as necessary to carry out the purpose of the 
     Commission.


                        2. duties (section 242)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission must study all matters related in the 
     nature, purpose and adequacy of all Federal programs for the 
     disabled, and especially SSI and SSDI.
     
[[Page H15430]]

       The Commission must examine: projected growth in the number 
     of individuals with disabilities and the implications for 
     program planning; possible performance standards for 
     disability programs; the adequacy of Federal rehabilitation 
     research and training; and the adequacy of policy research 
     available to the Federal government and possible 
     improvements.
       The Commission must submit to the President and the proper 
     Congressional committees recommendations and possible 
     legislative proposals effecting needed program changes.
     Conference agreement
       The conference agreement follows the Senate amendment.


                      3. Membership (Section 243)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission is to be composed of 15 members, appointed 
     by the President and Congressional leadership. Members are to 
     be chosen based on their education, training or experience, 
     with consideration for representing the diversity of 
     individuals with disabilities in the U.S.
       The Comptroller General must serve as an ex officio member 
     of the Commission to advise on the methodology of the study. 
     With the exception of the Comptroller General, no officer or 
     employee of any government may serve on the Commission.
       Members are to be appointed not later than 60 days after 
     enactment. Members serve for the life of the Commission, 
     which will be headquartered in D.C. and meet at least 
     quarterly.
       The Senate amendment includes a number of specific 
     requirements on the Commission regarding quorums, the naming 
     of chairpersons, member replacement, and benefits.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     modification deleting the Comptroller General as a ex officio 
     member and deleting the prohibition against officer or 
     employee of any government being appointed to serve on the 
     Commission. The conferees added that the Commission 
     membership will also reflect the general interests of the 
     business and taxpaying community, both of which are often 
     impacted by Federal disability policy.


              4. Staff and Support Services (Section 244)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission will have a director, appointed by the 
     Chair, and appropriate staff, resources, and facilities.
     Conference agreement
       The conference agreement follows the Senate amendment.


                        5. Powers (Section 245)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission may conduct public hearings and obtain 
     information from Federal agencies necessary to perform its 
     duties.
     Conference agreement
       The conference agreement follows the Senate amendment.


                        6. Reports (Section 246)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission must issue an interim report to Congress and 
     the President not later than 1 year prior to terminating. A 
     final public report must be submitted prior to termination.
     Conference agreement
       The conference agreement follows the Senate amendment.


                      7. Termination (Section 247)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       The Commission will terminate 2 years after first having 
     met and named a chair and vice chair.
     Conference agreement
       The conference agreement follows the Senate amendment.

                 Subtitle F--Retirement Age Eligibility


1. Eligibility for SSI Benefits Based on Social Security Retirement Age 
                             (Section 251)

     Present law
       The SSI program guarantees a minimum level of cash income 
     to all aged, blind, or disabled persons with limited 
     resources. The SSI program defines ``aged'' as persons age 65 
     and older.
     House bill
       No provision.
     Senate amendment
       The Senate amendment deletes references to age 65 and 
     instead defines as ``aged'' those persons who reach 
     ``retirement age'' as defined by the Social Security program. 
     The Social Security ``retirement age''--the age at which 
     retired workers receive benefits that are not reduced for 
     ``early retirement''--gradually will rise from 65 to 67. It 
     will do so in two steps. First, the retirement age will 
     increase by 2 months for each year that a person was born 
     after 1937, until it reaches age 66 for those born in 1943 
     (i.e., those who attain age 66 in 2009). Second, it will 
     again increase by 2 months for each year that a person was 
     born after 1954 until it reaches age 67 for those born after 
     1959.
     Conference agreement
       The conference agreement follows the Senate amendment.

      Title IV. Restricting Welfare and Public Benefits for Aliens


  1. Statements of National Policy Concerning Welfare and Immigration 
                             (Section 400)

     Present law
       No provision.
     House bill
       The Congress makes the following statements concerning 
     national policy with respect to welfare and immigration:
       (i) Self-sufficiency has been a basic principle of U.S. 
     immigration law since this country's earliest immigration 
     statutes;
       (ii) It continues to be the immigration policy of the U.S. 
     that aliens within the nation's borders depend not on public 
     resources, but rely on their own capabilities and the 
     resources of their families and sponsors and that the 
     availability of public benefits not constitute an incentive 
     for immigration;
       (iii) Aliens have been applying for and receiving public 
     benefits at increasing rates;
       (iv) Current eligibility rules and unenforceable financial 
     support agreements have proved incapable of assuring that 
     individual aliens not burden the public benefits system;
       (v) It is a compelling government interest to enact new 
     rules for eligibility and sponsorship agreements to assure 
     that aliens become self-reliant; and
       (vi) It is a compelling government interest to remove the 
     incentive for illegal immigration provided by the 
     availability of public benefits.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill, with a 
     modification regarding a State's option to choose to follow 
     Federal classifications regarding eligibility.

         Subtitle A--Eligibility for Federal Benefits Programs


    2. Ineligibility of Illegal Aliens for Certain Federal Benefits 
                         Programs (Section 401)

     Present law
       Current law limits alien eligibility for most major Federal 
     assistance programs, including restrictions on, among other 
     programs, Supplemental Security Income, Aid to Families with 
     Dependent Children, housing assistance, and Food Stamps 
     Programs. Current law is silent on alienage under, among 
     other programs, school lunch and nutrition, Special 
     Supplemental Food Program for Women, Infants, and Children 
     (WIC), Head Start, migrant health centers, and the earned 
     income tax credit.
       Under the programs with restrictions, benefits are 
     generally allowed for permanent resident aliens (also 
     referred to as immigrants and green card holders), refugees, 
     asylees, and parolees, but benefits (other than emergency 
     Medicaid) are denied to nonimmigrants (or aliens lawfully 
     admitted as, e.g., tourists, students, or temporary workers) 
     and illegal aliens. Benefits are permitted under AFDC, SSI, 
     unemployment compensation, and nonemergency Medicaid to other 
     aliens permanently residing in the U.S. under color of law 
     (PRUCOL).
     House bill
       Any alien who is not lawfully present in the U.S. shall not 
     be eligible for any Federal means-tested public benefits 
     program, with the exception of non-cash, in-kind emergency 
     assistance, including emergency medical services. Housing-
     related assistance, which allows limited assistance for 
     households containing both eligible and ineligible 
     individuals, remains prohibited as under current law.
       The Attorney General is to decide which aliens are lawfully 
     present for purposes of benefit eligibility. In doing so, the 
     Attorney General is not required to consider an alien to be 
     lawfully present solely because the alien is considered to be 
     permanently residing under color of law (PRUCOL) under 
     current standards.
     Senate amendment
       Any individual who is not lawfully present in the U.S. is 
     ineligible for any Federal benefit other than: emergency 
     medical services under Medicaid; short-term emergency 
     disaster relief; assistance under the National School Lunch 
     Act or the Child Nutrition Act of 1966; and public health 
     assistance for immunizations and, if found necessary by HHS, 
     testing for and treatment of communicable diseases. 
     Similarly, States which administer a Federally-funded benefit 
     program (or provide benefits pursuant to such a program) are 
     not required to assist aliens who are not lawfully present.
       An individual is lawfully present for purposes of 
     qualifying for benefits if the individual is a citizen, non-
     citizen national (i.e. 

[[Page H15431]]
     American Samoan), permanent resident alien, refugee, asylee (including 
     an alien who has had his/her deportation stayed because it 
     would return the alien to a country which would persecute 
     him/her), or an alien who has been paroled into the U.S. by 
     the Attorney General for at least 1 year.
       Noncitizens are not lawfully present for the purposes of 
     the SSI program merely because they are considered to be 
     permanently residing under color of law (PRUCOL).
     Conference agreement
       The conference agreement generally follows the House bill 
     and the Senate amendment, except that aliens who are not 
     lawfully present in the U.S. and nonimmigrants and aliens 
     paroled into the U.S. for a period of less than 1 year as 
     described below are grouped together and defined as classes 
     ``not qualified'' to receive most Federal public benefits. 
     However, even these ``non-qualified'' aliens may continue to 
     receive: short-term, in-kind, emergency disaster relief; 
     emergency medical services under Medicaid; public health 
     assistance for immunizations and testing and treatment to 
     prevent the spread of communicable diseases; and programs 
     specified by the Attorney General as necessary to protect 
     life and safety, such as soup kitchens and crisis counseling. 
     An exception is also made for benefits payable under title II 
     of the Social Security Act for certain legal aliens. With 
     regard to public housing assistance, non-qualified aliens 
     receiving benefits on the date of enactment will continue to 
     be treated as they are under current law. This section, 
     however, does not prevent the Secretary of Housing and Urban 
     Development or the Secretary of Agriculture from processing 
     all aliens currently receiving housing assistance under the 
     rules and regulations provided for under section 214 of the 
     housing and Community Development Act of 1980.
       The conference agreement follows the Senate amendment 
     regarding the definition of Federal public benefits for this 
     and subsequent sections, namely: 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 any retirement, welfare, health, 
     disability, public or assisted housing, post-secondary 
     education, food assistance, unemployment benefit, or any 
     other similar benefit for which payments or assistance are 
     provided to an individual, household, or family by an agency 
     of the U.S. or by appropriated funds of the U.S.
       The allowance for treatment of communicable diseases is 
     very narrow. The conferees intend that it only apply where 
     absolutely necessary to prevent the spread of such diseases. 
     This is only a stop-gap measure until the deportation of a 
     person or persons unlawfully here. It is not intended to 
     provide authority for continued treatment of such diseases 
     for a long term.
       The allowance for emergency medical services under Medicaid 
     is very narrow. The conferees intend that it only apply to 
     medical care that is strictly of an emergency nature, such as 
     medical treatment administered in an emergency room, critical 
     care unit, or intensive care unit. The conferees do not 
     intend that emergency medical services include pre-natal or 
     delivery care assistance that is not strictly of an emergency 
     nature as specified herein.
       The intent of the conferees is that title I, part A of the 
     Elementary and Secondary Education Act would not be affected 
     by section 401 because the benefit is not provided to an 
     individual, household, or family eligibility unit.


 3. Ineligibility of Nonimmigrants, Asylees, and Parolees for Certain 
                Federal Benefits Programs (Section 401)

                             A. In General

     Present law
       The Immigration and Nationality Act lists 19 categories of 
     nonimmigrant aliens, including tourists, business visitors, 
     foreign students, exchange visitors, temporary workers, and 
     diplomats. Aliens granted political asylum and aliens allowed 
     into the U.S. under the Attorney General's discretionary 
     parole power are not among the nonimmigrant categories. 
     Nonimmigrants generally are denied benefits under public 
     benefits programs that have alienage restrictions. By 
     contrast, asylees and parolees are not disqualified.
     House bill
       Aliens who are lawfully in the U.S. as nonimmigrants are 
     ineligible for means-tested Federal benefits, other than the 
     programs excepted below. Nonimmigrants admitted as temporary 
     agricultural workers are not to be treated as nonimmigrants 
     for public benefits purposes, but rather are to be treated as 
     immigrants. Other aliens who also are not to be treated as 
     nonimmigrants include aliens granted asylum and aliens 
     paroled into the U.S. for 1 year or longer. However, aliens 
     paroled into the U.S. for a period briefer than 1 year are 
     subject to the nonimmigrant restrictions.
     Senate amendment
       Nonimmigrant aliens are not considered lawfully present for 
     Federal benefits purposes, and are thus ineligible for any 
     Federal benefit other than the programs specifically excepted 
     below.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment, as described in section 2 above.

                          B. Excepted Programs

     Present law
       Of Federal programs with alien eligibility restrictions, 
     nonimmigrants are eligible for emergency services under 
     Medicaid. Temporary agricultural workers may receive legal 
     services funded through the Legal Services Corporation with 
     respect to their wages, housing, and other employment rights 
     covered by their employment contract. Those nonimmigrants 
     whose wages are not exempt from unemployment taxes (FUTA) may 
     qualify for unemployment compensation under certain 
     circumstances.
     House bill
       Exception of the bill's blanket denial of Federal means-
     tested assistance to nonimmigrants is made for Emergency 
     Assistance, including non-cash emergency medical services. 
     Housing-related assistance is not covered by the bill's 
     general rule, but rather existing restrictions udner housing 
     programs are to continue to apply. These restrictions deny 
     assisted housing to nonimmigrants except as they may 
     incidentally benefit as members of mixed families. However, 
     all aliens granted parole are eligible for housing 
     assistance.
     Senate amendment
       Permits nonimmigrants (and all others who are not lawfully 
     present) to receive: emergency medical services under 
     Medicaid; short-term emergency disaster relief; school lunch 
     and child nutrition assistance; and public health assistance 
     for immunizations and, if found necessary by HHS, testing for 
     and treatment of communicable diseases.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment, as described in section 2 above.
       The allowance for treatment of communicable diseases is 
     very narrow. The conferees intend that it only apply where 
     absolutely necessary to prevent the spread of such diseases. 
     This is only a stop-gap measure until the deportation of a 
     person or persons unlawfully here. It is not intended to 
     provide authority for continued treatment of such diseases 
     for a long term.
       The allowance for emergency medical services under Medicaid 
     is very narrow. The conferees intend that it only apply to 
     medical care that is strictly of an emergency nature, such as 
     medical treatment administered in an emergency room, critical 
     care unit, or intensive care unit. The conferees do not 
     intend that emergency medical services include pre-natal or 
     delivery care assistance that is not strictly of an emergency 
     nature as specified herein.

              C. Treatment of Aliens Paroled Into the U.S.

     Present law
       In some cases, aliens paroled into the U.S. are entitled to 
     public benefits while they remain in parole status.
     House bill
       Aliens paroled into the U.S. for less than 1 year are 
     treated as nonimmigrants for benefits purposes (i.e., general 
     ineligibility) but aliens paroled into the U.S. for longer 
     than 1 year are treated as immigrants (i.e. somewhat broader, 
     but still limited, eligibility).
     Senate amendment
       Aliens who have been paroled into the U.S. for a period of 
     less than 1 year are not considered to be lawfully present 
     for benefits purposes and therefore are generally ineligible 
     for benefits. (Aliens who have been paroled into the U.S. for 
     a period of 1 year or longer are considered to be lawfully 
     present.)
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment, as described in section 2 above.


     4. limited eligibility of lawfully present aliens (other than 
    nonimmigrants) for federal benefits (sections 402, 403 and 432)

                             A. In General

     Present law
       With the exception of certain buy-in rights under Medicare, 
     immigrants (or aliens lawfully admitted for permanent 
     residence) are eligible for major Federal benefits, but the 
     ability of some immigrants to meet the needs tests for SSI, 
     AFDC, and food stamps may be affected by the sponsor-to-alien 
     deeming provisions discussed below. Refugees, asylees, and 
     parolees also generally are eligible. Benefits are permitted 
     under AFDC, SSI, unemployment compensation, and nonemergency 
     Medicaid to other aliens permanently residing in the U.S. 
     under color of law (PRUCOL).
     House bill
       With certain specific exceptions noted below, any alien who 
     is lawfully present in the U.S. shall not be eligible for any 
     of the following Federal means-tested public benefits 
     programs (except as they provide non-cash, in-kind emergency 
     services): Supplemental Security Income, Temporary Assistance 
     for Needy Families, Social Services Block Grant (Title XX), 
     Medicaid, and Food Stamps.
       Under programs other than the foregoing 5 major benefits 
     programs, the eligibility of lawfully present aliens (other 
     than nonimmigrants) for benefits would continue to be 
     governed by current law as modified by the sponsor-to-alien 
     deeming provisions discussed below. The Attorney General is 
     to determine which aliens are ``lawfully present'' and is not 
     bound in doing so by current interpretations of ``PRUCOL'', 
     or ``permanently residing under color of law.''
     
[[Page H15432]]

     Senate amendment
       Except for specific classes noted below, all aliens are to 
     be denied SSI.
       Except for specific classes and programs noted below, all 
     aliens arriving after enactment are ineligible for all 
     Federal needs-based assistance for 5 years after entry.
       Except for specific classes and programs noted below, 
     States may deny noncitizens need-based assistance funded by 
     the Federal Government (e.g., Temporary Assistance for Needy 
     Families and similar block grants).
       For lawfully present aliens who are in the United States on 
     the date of enactment and who have been here 5 years, current 
     rules will continue to apply to programs other than SSI, 
     except as eligibility may be affected by the State option to 
     deny noncitizens needs-based assistance funded by Federal 
     funds.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment with the following modifications:
       (1) current resident aliens and those arriving after 
     enactment (with the exception of the specific classes 
     described below) may not receive SSI or food stamps until 
     attaining citizenship or working long enough (that is, at 
     least 10 years) to qualify for Social Security retirement 
     benefits;
       (2) aliens have no entitlement to benefits;
       (3) States have the option of providing benefits to 
     lawfully present aliens under the TANF, Medicaid, or Title XX 
     programs; and
       (4) new entrants are denied benefits under all Federal 
     means-tested programs for five years after their entry into 
     the United States with the exception of those programs 
     described in section (4)(B) below.

                          B. Excepted Programs

     Present law
       Not applicable (See above.)
     House bill
       Only exception for non-cash, in-kind emergency services, as 
     described above.
     Senate amendment
       The 5-year bar on Federally-funded assistance to new 
     arrivals does not apply to:
       (1) emergency medical services under Medicaid;
       (2) short-term emergency disaster relief;
       (3) assistance under the National School Lunch Act or the 
     Child Nutrition Act of 1996;
       (4) the Head Start program;
       (5) foster care and adoption assistance (but foster parents 
     or adoptive parents cannot be aliens who are ineligible for 
     benefits due to this provision);
       (6) public health assistance for immunizations and, if 
     found necessary by HHS, testing for and treatment of 
     communicable diseases; and
       (7) programs specified by the Attorney General that
       (i) deliver services at the community level,
       (ii) do not condition assistance on the recipient's income 
     or resources, and
       (iii) are necessary to protect life, safety, or public 
     health (e.g. soup kitchens).
       States may deny needs-based assistance funded by the 
     Federal government to all noncitizens except (1) programs 
     described above in 1, 2, 3, 4, 6, or 7; or (2) assistance to 
     noncitizens in the classes described below.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that Head Start is not an excepted program 
     but the following programs are excepted: (1) programs of 
     student assistance under titles IV, V, IX, and X of the 
     Higher Education Act of 1965, and (2) means-tested programs 
     under the Elementary and Secondary Education Act of 1965.

                          C. Excepted Classes

     Present law
       Not applicable. (See above.)
     House bill
       Excepted are:
       (i) refugees during their first 5 years in the U.S.;
       (ii) aliens who have been lawfully admitted to the U.S. for 
     permanent residence, are over 75 years of age, and have 
     resided in U.S. for at least 5 years;
       (iii) honorably discharged veterans and active duty 
     personnel or their spouses and unmarried dependent children 
     lawfully residing in any State or territory or possession of 
     the U.S.;
       (iv) aliens lawfully residing in any State or Territory or 
     Possession of the U.S. during the first year of enactment; 
     and
       (v) immigrants who are unable to comply with naturalization 
     requirements because of disability or mental impairment.
     Senate amendment
       Excepted are:
       (i) refugees during their first 5 years in the U.S.;
       (ii) honorably discharged veterans (if determined by the 
     Attorney General to be lawfully present), and their spouses 
     and unmarried dependent children;
       (iii) aliens receiving SSI benefits on the date of 
     enactment (whose eligibility would end) will remain eligible 
     for SSI until January 1, 1997;
       (iv) asylees (including those who have had deportation 
     stayed because it would return them to a country which would 
     persecute them) during their first 5 years in the U.S.;
       (v) noncitizens who have worked long enough to be fully 
     insured for Social Security or disability insurance benefits 
     are exempt from the ban on SSI and the prospective 5 year 
     ban; and
       (vi) agencies may exempt individuals who have been battered 
     or subjected to extreme cruelty from the denial of State-
     administered Federal benefits (and the sponsor-alien 
     ``deeming'' provision discussed below) if the resulting 
     denial of assistance will endanger their well-being.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment so that the following classes are excepted:
       (1) refugees (during their first 5 years in the U.S.), 
     asylees (for 5 years after being adjudicated as an asylee), 
     and aliens whose deportation has been withheld (during their 
     first 5 years after their deportation has been withheld);
       (2) with regard to current residents and with regard to 
     noncitizens arriving after the date of enactment after their 
     fifty year in the country, aliens who have been lawfully 
     admitted to the U.S. for permanent residence and have worked 
     at least 40 quarters (that is, at least 10 years which is 
     currently the criteria for eligibility for Social Security 
     retirement benefits);
       (3) honorably discharged veterans and active duty personnel 
     or their spouses and unmarried dependent children lawfully 
     residing in any State, territory, or possession of the U.S.; 
     and
       (4) lawfully present aliens receiving SSI or food stamps on 
     the date of enactment, whose eligibility would end January 1, 
     1997.

                          D. Effective Date(s)

     Present law
       Not applicable.
     House bill
       In general, applies to applicants for benefits after the 
     date of enactment. For current residents of the U.S. on the 
     date of enactment, restriction on eligibility does not apply 
     until 1 year after enactment.
     Senate amendment
       In general, applies to benefits on or after the date of 
     enactment. Current SSI recipients lose eligibility after 
     January 1, 1997. The Attorney General must adopt regulations 
     to verify the eligibility of applicants for Federal benefits 
     no later than 18 months after enactment. States must have a 
     verification system that complies with these regulations 
     within 24 months of their adoption.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that the eligibility of current resident 
     noncitizens receiving SSI and food stamps on the date of 
     enactment ends for months beginning on or after January 1, 
     1997.

                            E. Reapplication

     Present law
       An individual who is eligible for SSI but who thereafter 
     becomes ineligible for a period of 12 consecutive months must 
     reapply for benefits.
     House bill
       No provision.
     Senate amendment
       Individuals receiving SSI benefits on the date of enactment 
     who are notified of their termination of eligibility may 
     reapply for benefits within 4 months after the date of 
     enactment. The Commissioner of Social Security shall 
     determine within 1 year of enactment the eligibility of 
     individuals who reapply.
     Conference agreement
       The conference agreement follows the Senate amendment.


                     5. Notification (Section 404)

     Present law
       Under regulation, individual advance written notice must be 
     given of an intent to suspend, reduce, or terminate SSI 
     benefits.
     House bill
       Each Federal Agency that administers an affected program 
     shall post information and provide general notification to 
     the public and to program recipients of changes regarding 
     eligibility.
     Senate amendment
       The Commissioner of Social Security shall notify 
     noncitizens made ineligible for SSI benefits within 3 months 
     after the date of enactment.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


6. verification (sections 433 and 435) and information sharing (section 
                                  404)

     Present law
       State agencies that administer most major Federal programs 
     with alienage restrictions generally use the SAVE (Systematic 
     Alien Verification for Entitlements) system to verify the 
     immigration status of aliens applying for benefits.
       AFDC and SSI require safeguards that restrict the use of 
     disclosure of information concerning applicants or recipients 
     to purposes connected to the administration of needs-based 
     Federal programs.
     House bill
       No provision.
     Senate amendment
       The Attorney General must adopt regulations to verity the 
     lawful presence of applicants for Federal benefits no later 
     than 18 months after enactment. States must have a 

[[Page H15433]]
     verification system that complies with these regulations within 24 
     months of their adoption.
       The agencies which administer SSI, housing assistance 
     programs under the United States Housing Act of 1937, or 
     block grants for temporary assistance for needy families (the 
     successor program to AFDC) are required to furnish 
     information to the Immigration and Naturalization Service 
     (INS) about aliens they know to be unlawfully in the United 
     States at least 4 times annually and upon INS request.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     the modification that no State or local government may be 
     restricted from communicating with the INS about the 
     immigration status of a noncitizen in the U.S.

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


7. ineligibility of illegal aliens for state and local public benefits 
                    programs (sections 411 and 435)

     Present law
       Under Plyler v. Doe (457 U.S. 202 (1982)), States may not 
     deny illegal alien children access to a public elementary 
     education. However, the narrow 5-4 Supreme Court decision may 
     imply that illegal aliens may be denied at least some State 
     benefits and that Congress may influence the eligibility of 
     illegal aliens for State benefits. Many, but not all, State 
     general assistance laws currently deny illegal aliens means-
     tested general assistance.
     House bill
       No alien who is not lawfully present in the U.S. shall be 
     eligible for any State and local means-tested public benefits 
     programs (see definitions below). The only exception is 
     emergency medical services.
     Senate amendment
       No provision affects programs wholly administered and 
     funded by State and local governments. Aliens who are not 
     lawfully present are ineligible for benefits paid with 
     Federal funds under State-administered programs (or paid with 
     State funds pursuant to such programs).
     Conference agreement
       The conference agreement follows the House bill with a 
     modification that States are permitted to affirmatively enact 
     a State law after the date of enactment of this Act that 
     specifies that such State wished to provide State and local 
     benefits to illegal aliens.
       No current State law, State constitutional provision, State 
     executive order or decision of any State or Federal court 
     shall provide a sufficient basis for a State to be relieved 
     of the requirement to deny benefits to illegal aliens in 
     subsection (a). Laws, ordinances, or executive orders passed 
     by county, city or other local officials will not allow those 
     entities to provide benefits to illegal aliens. Only the 
     affirmative enactment of a law by a State legislature and 
     signed by the Governor after the date of enactment of this 
     Act, that references this provision, will meet the 
     requirements of this section.
       The phrase ``affirmatively provides for such eligibility'' 
     means that the State law enacted must specify that illegal 
     aliens are eligible for State or local benefits as defined in 
     subsection (c). Persons residing under color of law shall be 
     considered to be aliens unlawfully present in the U.S. and 
     are prohibited from receiving State or local benefits, as 
     defined in subsection (c), regardless of the enactment of any 
     State law.
       The conference agreement provides that no State or local 
     government entity shall prohibit, or in any way restrict, any 
     entity or official from sending to or receiving from the INS 
     information regarding the immigration status of an alien or 
     the presence, whereabouts, or activities of illegal aliens. 
     It does not require, in and of itself, any government agency 
     or law enforcement official to communicate with the INS.
       The conferees intend to give State and local officials the 
     authority to communicate with the INS regarding the presence, 
     whereabouts, or activities of illegal aliens. This provision 
     is designed to prevent any State or local law, ordinance, 
     executive order, policy, constitutional provision, or 
     decision of any Federal or State court that prohibits or in 
     any way restricts any communication between State and local 
     officials and the INS. The conferees believe that immigration 
     law enforcement is as high a priority as other aspects of 
     Federal law enforcement, and that illegal aliens do not have 
     the right to remain in the U.S. undetected and unapprehended.


 8. Ineligibility of Nonimmigrants for State and Local Public Benefits 
                         Programs (Section 411)

     Present law
       Currently, there is no Federal law barring nonimmigrants 
     from State and local needs-based programs. In general, States 
     are restricted in denying assistance to nonimmigrants where 
     the denial is inconsistent with the terms under which the 
     nonimmigrants were admitted. Where a denial of benefits is 
     not inconsistent with Federal immigration law, however, 
     States have broader authority to deny benefits and States 
     often do deny certain benefits to nonimmigrants. Also, aliens 
     in most nonimmigrant categories generally may have difficulty 
     qualifying for many State and local benefits because of 
     requirements that they be State ``residents.''
     House bill
       No alien who is lawfully present in the U.S. as a 
     nonimmigrant shall be eligible for any State and local means-
     tested public benefit programs. Exceptions for: non-cash 
     emergency assistance (including emergency medical services) 
     aliens granted asylum, and certain temporary agricultural 
     workers who are treated as immigrants for purposes of 
     application for State and local means-tested benefits (see 
     below). Aliens paroled into the U.S. for a period of less 
     than 1 year are considered to be nonimmigrants under this 
     part.
     Senate amendment
       No provision affects programs wholly administered and 
     funded by State or local governments. Nonimmigrants are not 
     considered to be lawfully present for Federal benefits 
     purposes and are thus ineligible for benefits paid with 
     Federal funds under State-administered programs (or paid with 
     State funds pursuant to such programs).
     Conference agreement
       The conference agreement follows the House bill, with the 
     modification that States may determine the eligibility of 
     nonimmigrants and short-term parolees for State and local 
     benefits.


  9. State Authority to Limit Eligibility of Immigrants for State and 
       Local Means-tested Public Benefits Programs (Section 412)

     Present law
       Under Graham v. Richardson (403 U.S. 365 (1971)), States 
     are barred from denying legal permanent residents from State-
     funded assistance that is provided to equally needy citizens.
     House bill
       States are authorized to determine eligibility requirements 
     for aliens who are lawfully present in the U.S. for any State 
     and local means-tested public benefit program (other than 
     non-cash emergency assistance, including emergency medical 
     services), with exception of:
       (i) refugees during their first 5 years in the U.S.;
       (ii) Aliens who have been lawfully admitted to the U.S. for 
     permanent residence, are over 75 years of age, and have 
     resided in U.S. for five years;
       (iii) Honorably discharged veterans and active duty 
     personnel or their spouses and unmarried dependent children 
     lawfully residing in any State or territory or possession of 
     the U.S.; and
       (iv) Aliens lawfully residing in any State or Territory or 
     possession of the U.S. during the first year after the date 
     of enactment. Aliens lawfully present would remain eligible 
     for emergency medical services.
       In addition to enhancing State discretion to impose 
     alienage restrictions, eligibility for State and local needs-
     based benefits also would be restricted by application of new 
     sponsor-to-alien deeming requirements discussed below.
     Senate amendment
       No provision restricts benefits wholly funded by State or 
     local governments, but States may use the sponsor-alien 
     deeming provisions, described below, to determine whether a 
     sponsored individual qualifies for assistance under such a 
     program.
     Conference agreement
       The conference agreement follows the House bill, except 
     that excepted classes are modified so that they are identical 
     to those excepted under (4)(C) for the purposes of the denial 
     of Federal benefits for legal permanent resident noncitizens.

      Subtitle C--Attribution of Income and Affidavits of Support


   10. requirements for affidavits of support (sections 423 and 424)

                  A. When Required and Enforceability

     Present law
       Administrative authorities may request an affidavit of 
     support on behalf of an alien seeking permanent residency. 
     Requirements for affidavits of support are not specified 
     under current law.
       Under the Immigration and Nationality Act, an alien who is 
     likely to become a public charge may be excluded from entry 
     unless this restriction is waived, as is the case for 
     refugees. By regulation and administrative practice, the 
     State Department and the Immigration and Naturalization 
     Service permit a prospective permanent resident alien (also 
     immigrant or green card holder) who otherwise would be 
     excluded as a public charge (i.e., insufficient means or 
     prospective income) to overcome exclusion through an 
     affidavit of support or similar document executed by a 
     individual in the U.S. Individuals who execute affidavits of 
     support commonly are called sponsors, even though that term 
     also is used under immigration practice to refer to 
     individuals and other entities who undertake various other 
     acts (e.g., file a visa preference petition for a relative or 
     prospective employee or undertake to resettle individuals who 
     enter in refugee status) and who may or may not also execute 
     affidavits of support. About one-half of the aliens who 
     obtain legal permanent resident status have had affidavits of 
     support filed on their behalf.
       Various State court decisions and decisions by immigration 
     courts have held that these affidavits, as currently 
     constituted, do not impose a binding obligation on the 
     sponsor to reimburse State agencies providing aid to the 
     sponsored alien.
     
[[Page H15434]]

     House bill
       When affidavits of support are required, they must comply 
     with the following:
       (A) no affidavit of support may be accepted to overcome a 
     public charge exclusion unless the affidavit is executed as a 
     contract that is legally enforceable against the sponsor by 
     the Federal government and by any State or local government 
     with respect to any means-tested benefits paid to the 
     sponsored alien before the alien becomes a citizen. However, 
     affidavits of support are not to be construed to provide any 
     right to sponsored aliens;
       (B) any Federal, State or local means-tested benefits paid 
     to sponsored alien;
       (C) to qualify to execute an affidavit of support, an 
     individual must be within the definition of sponsor set out 
     in item G(1), below;
       (D) governmental entities that provide benefits may seek 
     reimbursement up to 10 years after a sponsored alien last 
     receives benefits. In the affidavit of support, the sponsor 
     must agree to submit to the jurisdiction of any Federal or 
     State court regarding reimbursement of the cost of benefits 
     received by the alien; and
       (E) sponsorship extends until alien becomes a citizen.
     Senate amendment
       When affidavits of support are required, they must comply 
     with the following:
       (A) no affidavit of support may be relied upon to overcome 
     a public charge exclusion unless the affidavit is executed as 
     a contract that is legally enforceable against the sponsor by 
     the sponsored alien and by Federal, State, and local 
     governmental entities that provide the sponsored alien with 
     means-tested assistance during the support period described 
     below;
       (B) programs for which reimbursement shall be requested 
     are: (1) AFDC or its successor; (2) Medicaid; (3) Food 
     Stamps; (4) SSI; (5) any State general assistance program; 
     and (6) any other Federal, State or local need-based program. 
     However, governmental entities cannot seek reimbursement with 
     respect to (1) emergency medical services under Medicaid; (2) 
     short-term emergency disaster relief; (3) assistance provided 
     under the National School Lunch Act or the Child Nutrition 
     Act of 1966; (4) the Head Start program; (5) public health 
     assistance for immunizations and, if determined necessary by 
     HHS, testing for or treatment of communicable diseases; and 
     (6) programs specified by the Attorney General that (i) 
     deliver services at the community level, (ii) do not 
     condition assistance on the recipient's income or resources, 
     and (iii) are necessary to protect life, safety, or public 
     health (e.g. soup kitchens);
       (C) to qualify to execute an affidavit of support, an 
     individual must be within the definition of sponsor set out 
     in item G(1), below;
       (D) governmental entities may seek reimbursement of other 
     means-tested assistance up to 10 years after a sponsored 
     alien last receives benefits. In the affidavit of support, 
     the sponsor must agree to submit to the jurisdiction of any 
     Federal or State court regarding reimbursement of the cost of 
     benefits received by the alien; and
       (E) sponsor must agree in the affidavit of support to 
     provide sufficient financial support so that the sponsored 
     individual will not become a public charge until the 
     individual has worked in the U.S. for 40 qualifying quarters, 
     regardless of whether the individual chooses to naturalize or 
     not. A qualifying quarter is a 3-month period (1) which 
     counts as a quarter for the purposes of social security 
     coverage, (2) during which the individual did not receive 
     needs-based assistance, and (3) which occurs in a tax year 
     for which the individual had income tax liability.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment as follows:
       When affidavits of support are required, they must comply 
     with the following:
       (A) no affidavit of support may be accepted to overcome a 
     public charge exclusion unless the affidavit is executed as a 
     contract that is legally enforceable against the sponsor by 
     the Federal government with respect to any means-tested 
     benefits paid to the sponsored alien before the alien becomes 
     a citizen. However, affidavits of support are to to be 
     construed to provide any right to sponsored aliens;
       (B) programs for which reimbursement shall be requested 
     are: (1) AFDC or its successor; (2) Medicaid; (3) Food 
     Stamps; (4) SSI; (5) any State general assistance program; 
     and (6) any other Federal, State or local need-based program. 
     However, governmental entities cannot seek reimbursement with 
     respect to (1) emergency medical services under Medicaid; (2) 
     short-term emergency disaster relief; (3) assistance provided 
     under the National School Lunch Act or the Child Nutrition 
     Act of 1966; (4) payments for foster care and adoption 
     assistance under part B of title IV of the Social Security 
     Act; (5) public health assistance for immunizations and, if 
     determined necessary by HHS, testing for or treatment of 
     communicable diseases; (6) programs specified by the Attorney 
     General that (i) deliver services at the community level, 
     (ii) do no condition assistance on the recipient's income or 
     resources, and (iii) are necessary to protect life, safety, 
     or public health (e.g. soup kitchens); and (7) postsecondary 
     education benefits (the conference report includes a 
     provision that, notwithstanding sections 427(a)(2)(A), 
     428B(a), 428C(b)(4)(A), and 464(c)(1)(E), would prohibit a 
     lawfully admitted alien from receiving a student loan 
     authorized under Title IV of the Higher Education Act unless 
     the loan is endorsed and cosigned by the alien's sponsor or 
     by another individual who is a United States citizen. The 
     conferees recognize that this provision is not currently a 
     feature of the Higher Education Act and are aware that this 
     requirement will necessitate modifications to the regulations 
     that govern Federal student aid, and the application forms 
     through which students apply. The conferees expect the 
     Department of Education to minimize the regulatory burden on 
     students and schools that may attend this provision, and 
     instruct the Department to work closely with the higher 
     education community to develop regulations and forms to 
     implement this requirement);
       (C) to qualify to execute an affidavit of support, an 
     individual must be within the definition of sponsor set out 
     in item G(1) below;
       (D) governmental entities that provide benefits may seek 
     reimbursement up to 10 years after a sponsored alien last 
     receives benefits. In the affidavit of support, the sponsor 
     must agree to submit to the jurisdiction of any Federal or 
     State court regarding reimbursement of the cost of benefits 
     received by the alien; and
       (E) sponsorship extends until alien becomes a citizen.
       The allowance for treatment of communicable diseases is 
     very narrow. The conferees intend that it only apply where 
     absolutely necessary to prevent the spread of such diseases. 
     This is only a stop-gap measure until the deportation of a 
     person of persons unlawfully here. It is not intended to 
     provide authority for continued treatment of such diseases 
     for a long term.
       The allowance for emergency medical services under Medicaid 
     is very narrow. The conferees intend that it only apply to 
     medical care that is strictly of an emergency nature, such as 
     medical treatment administered in an emergency room, critical 
     care unit or intensive care unit. The conferees do not intend 
     that emergency medical services include pre-natal or delivery 
     care assistance that is not strictly of an emergency nature 
     as specified herein.

                                B. Forms

     Present law
       No statutory provision. The Department of Justice issues a 
     form (Form I-134) that complies with current sponsorship 
     guidelines.
     House bill
       The Attorney General, in consultation with the Secretary of 
     State and the Secretary of HHS shall formulate an affidavit 
     of support within 90 days after enactment, consistent with 
     this section.
     Senate amendment
       The Attorney General, the Secretary of State, and the 
     Secretary of HHS shall jointly formulate an affidavit of 
     support with 90 days after enactment, consistent with this 
     section.
     Conference agreement
       The conference agreement follows the House bill.

                       C. Statutory Construction

     Present law
       No provision.
     House bill
       Nothing in this section shall be construed to grant third 
     party beneficiary rights to any sponsored alien under an 
     affidavit of support.
     Senate amendment
       The Senate amendment expressly requires that affidavits of 
     support permit sponsored individuals to enforce support 
     obligations of their sponsors as contained in the affidavits.
     Conference agreement
       The conference agreement follows the Senate amendment.

                  D. Notification of Change of Address

     Present law
       There is no express requirement under current 
     administrative practice that sponsors inform welfare agencies 
     of a change in address. However, a sponsored alien who 
     applies for benefits for which deeming is required must 
     provide various information regarding the alien's sponsor.
     House bill
       Until they no longer are potentially liable for 
     reimbursement of benefits paid to sponsored aliens, sponsors 
     must notify welfare agencies of any change of their address 
     within 30 days of moving. Failure to notify may result in a 
     civil penalty of up to $2000 or, if the failure occurs after 
     knowledge that the sponsored alien has received a 
     reimbursable benefit, of up to $5000.
     Senate amendment
       Until they no longer are potentially liable for 
     reimbursement of benefits paid to sponsored individuals, 
     sponsors must notify the Attorney General and the State, 
     district, territory or possession in which the sponsored 
     individual resides of any change of their address within 30 
     days of moving. Failure to notify may result in a civil 
     penalty of up to $2000 or, if the failure occurs after 
     knowledge that the sponsored individual has received a 
     reimbursable benefit, of up to $5000.
     Conference agreement
       The conference agreement follows the Senate amendment.
     
[[Page H15435]]


                      E. Reimbursement Procedures

     Present law
       Various State court decisions and decisions by immigration 
     courts have held that these affidavits, as currently 
     constituted, do not impose a binding obligation on the 
     sponsor to reimburse State agencies providing aid to the 
     sponsored alien.
     House bill
       If a sponsored alien receives any benefit under any means-
     tested public assistance program, the appropriate Federal, 
     State, or local official shall request reimbursement by the 
     sponsor in the amount of such assistance. Thereafter the 
     official may seek reimbursement in court if the sponsor fails 
     to respond within 45 days of the request that the sponsor is 
     willing to begin repayments. The official also may seek 
     reimbursement through the courts within 60 days after a 
     sponsor fails to comply with the terms of repayment. The 
     Attorney General, in consultation with the Secretary of HHS, 
     shall prescribe regulations on requesting reimbursement. No 
     action may be brought later than 10 years after the alien 
     last received benefits.
     Senate amendment
       Upon notification that a sponsored individual has received 
     a reimbursable need-based benefit (see above), the 
     appropriate government official shall request reimbursement 
     in accordance with the same procedures and limitations that 
     are in the House bill. The Commissioner of Social Security is 
     to prescribe regulations for requesting reimbursement from 
     sponsors, and such regulations must include the notification 
     of sponsors (at their last known address) by certified mail.
     Conference agreement
       The conference agreement follows the House bill.

                            F. Jurisdiction

     Present law
       State law sets forth which types of cases its courts will 
     hear, subject to due process requirements on minimal 
     connections between activities, people, or property within 
     the State and the matter being litigated.
     House bill
       No provision.
     Senate amendment
       No State court shall decline for lack of jurisdiction to 
     hear any action brought against a sponsor for reimbursement 
     for the cost of any benefit if the sponsored individual 
     received public assistance while residing in the State.
     Conference agreement
       The conference agreement follows the Senate amendment. The 
     conferees intend that both Federal and State courts have 
     jurisdiction over reimbursement actions against a sponsor.

                             G. Definitions

     Present law
       No provision.
     House bill
       A ``Sponsor'' is an individual who (1) is a citizen or 
     national of the U.S. or an alien who is lawfully admitted to 
     the U.S. for permanent residence; (2) is at least 18 years of 
     age; and (3) resides in any State.
       A ``Means-Tested Public Benefits Program'' is a program of 
     public benefits of the Federal, State or local government in 
     which eligibility or the amount of benefits or both are 
     determined on the basis of income, resources, or financial 
     need.
     Senate amendment
       A ``Sponsor'' is an individual who (1) is a citizen or 
     national of the U.S. or an alien who is lawfully admitted to 
     the U.S. for permanent residence; (2) is at least 18 years of 
     age; (3) resides in any State or U.S. territory; and (4) is 
     able to demonstrate (through evidence which includes attested 
     copies of tax returns for the 2 most recent tax years) the 
     means to maintain an income equal to 200 percent of the 
     Federal poverty line for the individual and the individual's 
     family, including the person sponsored.
       ``Federal Poverty Line'' has the same meaning as in section 
     673(2) of the Community Services Block Grant Act.
       A ``Qualifying Quarter'' is a 3-month period (1) in which 
     the sponsored individual earned at least the minimum 
     necessary for the period to count as one of 40 calendar 
     quarters required to qualify for Social Security retirement 
     benefits; (2) during which the sponsored individual did not 
     receive need-based public assistance; and (3) which falls 
     within a tax year for which the sponsored individual had 
     income tax liability.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment, except that the sponsor is not required to 
     demonstrate the means to maintain an income equal to 200 
     percent of the poverty level and the Senate recedes on the 
     conditions that a qualifying quarter is (1) one in which the 
     sponsored individual did not receive need-based public 
     assistance, and (2) one which falls within a tax year for 
     which the sponsored individual has tax liability. The sponsor 
     must also be the person petitioning for the alien's 
     admission, and reside in one of the 50 States or the District 
     of Columbia.

                         H. Clerical Amendment

     Present law
       Not applicable.
     House bill
       A minor clerical amendment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

                           I. Effective Date

     Present law
       Not applicable.
     House bill
       The changes regarding affidavits of support shall apply to 
     affidavits of support executed no earlier than 60 days or 
     later than 90 days after the Attorney General promulgates the 
     form.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.


    11. Attribution of sponsor's income and resources to sponsored 
                   immigrants (sections 421 and 422)

                          A. Federal Benefits

     Present law
       In determining whether an alien meets the means test for 
     Aid to Families with Dependent Children (AFDC), Supplemental 
     Security Income (SSI), and Food Stamps, the resources and 
     income of an individual who filed an affidavit of support for 
     the alien (and the income and resources of the individual's 
     spouse) are taken into account during a designated period 
     after entry.
     House bill
       During the applicable deeming period, the income and 
     resources of an individual who files a binding affidavit of 
     support (as required above) for an alien (and the income and 
     resources of the individual's spouse) are taken into account 
     under all Federal means-tested programs (with the exception 
     of housing-related assistance) in determining a sponsored 
     alien's neediness. Current law remains effective for aliens 
     whose sponsors filed affidavits before the new affidavit 
     requirements become effective (60-90 days after enactment).
     Senate amendment
       During the applicable deeming period, the income and 
     resources of an individual who filed an affidavit of support 
     for an alien (and the income and resources of the 
     individual's spouse) are to be taken into account under all 
     Federally-funded means-tested programs (with the exception of 
     the programs below) in determining the sponsored individual's 
     neediness.
       Excepted programs are (1) emergency Medicaid services; (2) 
     short-term emergency disaster relief; (3) assistance provided 
     under the National School Lunch Act or the Child Nutrition 
     Act of 1966; (4) the Head Start program; (5) public health 
     assistance for immunizations and, if determined by HHS, 
     testing for or treatment of communicable diseases; and (6) 
     programs specified by the Attorney General that (i) deliver 
     services at the community level, (ii) do not condition 
     assistance on the recipient's income or resources, and (iii) 
     are necessary to protect life, safety, or public health (e.g. 
     soup kitchens).
       Individuals who are exempt from deeming include (1) 
     honorably discharged legal alien veterans and their spouses 
     and unmarried children; (2) refugees; (3) asylees (including 
     aliens who have had their deportation stayed because it would 
     return them to a country which will persecute them); and (4) 
     individuals who have been battered or subjected to extreme 
     cruelty, if application of deeming would endanger their well-
     being.
     Conference agreement
       The conference agreement follows the Senate amendment, 
     except that post-secondary education is included as an 
     excepted program, Head Start is not included as an excepted 
     program, individuals who have worked 40 quarters as defined 
     in this title are included as an excepted class, and battered 
     individuals are not included as an excepted class.
       The allowance for treatment of communicable diseases is 
     very narrow. The conferees intend that it only apply where 
     absolutely necessary to prevent the spread of such diseases. 
     This is only a stop-gap measure until the deportation of a 
     person or persons unlawfully here. It is not intended to 
     provide authority for continued treatment of such diseases 
     for a long term.
       The allowance for emergency medical services under Medicaid 
     is very narrow. The conferees intend that it only apply to 
     medical care that is strictly of an emergency nature, such as 
     medical treatment administered in an emergency room, critical 
     care unit, or intensive care unit. The conferees do not 
     intend that emergency medical services include pre-natal or 
     delivery care assistance that is not strictly of an emergency 
     nature as specified herein.

                B. Amount of Income and Resources Deemed

     Present law
       While the offset formulas vary among the programs, the 
     amount of income and resources deemed under AFDC, SSI, and 
     Food Stamps is reduced by certain offsets to provide for some 
     of the sponsor's own needs.
     House bill
       The full income and resources of the sponsor and the 
     sponsor's spouse are deemed to be that of the sponsored 
     alien.
     Senate amendment
       If an agency determines that a sponsored individual would 
     not be able to obtain food 

[[Page H15436]]
     and shelter without the agency's assistance (taking into account the 
     income and resources actually provided to the individual by 
     the sponsor and others), then deeming will not apply for a 
     period of 12 months and the agency need take into account 
     during this period only the amount of support the sponsor 
     actually provides.
       If the address of the sponsor is unknown to the sponsored 
     individual, then assistance is provided until 12 months after 
     the sponsor is located.
     Conference agreement
       The conference agreement follows the House bill.

                      C. Length of Deeming Period

     Present law
       For AFDC and Food Stamps, sponsor-to-alien deeming applies 
     to a sponsored alien seeking assistance within 3 years of 
     entry. Until September 1996, sponsor-to-alien deeming applies 
     to a sponsored alien seeking SSI within 5 years of entry.
     House bill
       For aliens whose sponsors have filed binding affidavits of 
     support as required above, the sponsors' income and resources 
     are deemed to the alien until the alien becomes a citizen. 
     Current law remains effective for aliens whose sponsors filed 
     affidavits before the new affidavit requirements become 
     effective (60-90 days after enactment).
     Senate amendment
       Deeming applies until the immigrant has worked 40 
     qualifying quarters (the period of time future sponsors must 
     agree to support the immigrant) or for 5 years from the 
     alien's arrival in the U.S. (for current noncitizens), 
     whichever is longer. Deeming continues until the above 
     requirements are met, regardless of whether the immigrant 
     naturalizes or not. [A qualifying quarter is a 3-month period 
     (1) in which the sponsored individual earned at least the 
     minimum necessary for the period to count as one of 40 
     calendar quarters required to qualify for Social Security 
     retirement benefits; (2) during which the sponsored 
     individual did not receive need-based public assistance; and 
     (3) which falls within a tax year for which the sponsored 
     individual had income tax liability.]
     Conference agreement
       The conference agreement follows the House bill, with the 
     modification described in section A. above that sponsored 
     noncitizens who have worked at least 40 quarters as defined 
     in this title are excepted from deeming requirements.

                      D. State and Local Benefits

     Present law
       The highest courts of at least 2 States have held that the 
     Supreme Court decision barring State discrimination against 
     legal aliens in providing State benefits (Graham v. 
     Richardson, 403 U.S. 365 (1971)) prohibits State sponsor-to-
     alien deeming requirements for State benefits.
     House bill
       In determining the eligibility and amount of benefits of an 
     alien for any State or local means-tested public benefit 
     program, the income and resources of the alien shall be 
     deemed to include the income and resources of their sponsor 
     (and their sponsor's spouse). Housing related assistance 
     continues to be treated as under current law.
     Senate amendment
       With the exception of those programs exempted from all 
     benefit restrictions (see above) and those aliens exempt from 
     deeming requirements, States and local governments may deem a 
     sponsor's income and resources (and those of the sponsor's 
     spouse) to a sponsored individual in determining eligibility 
     for and the amount of needs-based benefits. State deeming 
     provisions must also provide for temporary assistance if the 
     sponsor is not assisting the sponsored individual or cannot 
     be located.
     Conference agreement
       The conference agreement follows the Senate amendment, 
     except that there is no provision for temporary assistance if 
     the sponsor is not assisting the sponsored individual or can 
     not be located.

                     Subtitle D--General Provisions


                     12. Definitions (Section 431)

                             A. In General

     Present law
       Federal assistance programs that have alien eligibility 
     restrictions generally reference specific classes defined in 
     the Immigration and Nationality Act.
     House bill
       Unless otherwise provided, the terms used in this title 
     have the same meaning as defined in Section 101(a) of the 
     Immigration and Nationality Act.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

                           B. Lawful Presence

     Present law
       Some programs allow benefits for otherwise eligible aliens 
     who are ``permanently residing under color of law (PRUCOL).'' 
     This term is not defined under the Immigration and 
     Nationality Act, and there has been some inconsistency in 
     determining which classes of aliens fit within the PRUCOL 
     standard.
     House bill
       For purposes of this Title, the determination of whether an 
     alien is lawfully present in the U.S. shall be made in 
     accordance with regulations issued by the Attorney General. 
     An alien shall not be considered to be lawfully present in 
     the U.S. merely because the alien may be considered to be 
     permanently residing in the U.S. under color of law 
     (``PRUCOL'') for purposes of any particular program.
     Senate amendment
       An individual is lawfully present if the individual is a 
     citizen, non-citizen national (i.e. American Samoan), 
     permanent resident alien, refugee, asylee (including an alien 
     who has had his/her deportation stayed because it would 
     return him/her to a country which would persecute him/her), 
     or an alien who has been paroled into the U.S. by the 
     Attorney General for at least 1 year. Individuals who are not 
     lawfully present are ineligible for any Federal benefit.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     a modification that eligibility is determined by specific 
     classes of aliens, not whether noncitizens are ``lawfully 
     present.''

                                C. State

     Present law
       There is no single definition of ``State'' for purposes of 
     alien eligibility under Federal assistance programs. The 
     Immigration and Nationality Act defines ``State'' to include 
     the District of Columbia, Puerto Rico, Guam, and the Virgin 
     Islands of the United States.
     House bill
       The term ``State'' includes the District of Columbia, 
     Puerto Rico, the U.S. Virgin Islands, Guam, the Northern 
     Mariana Islands, and American Samoa.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

                      D. Public Benefits Programs

     Present law
       No provision.
     House bill
       A ``Means-Tested Program'' is a program of public benefits 
     of the Federal, State, or local government in which 
     eligibility for benefits under the program, or the amount of 
     benefits, or both, are determined on basis of income, 
     resources or financial need.
       A ``Federal Means-Tested Public Benefits Program'' is a 
     means-tested public benefit program of (or contributed to by) 
     the Federal Government under which the Federal Government 
     establishes standards for eligibility.
       A ``State Means-Tested Public Benefits Program'' is a 
     means-tested program of a State or political subdivision 
     under which the State or political subdivision specifies the 
     standards of eligibility, and does not include any Federal 
     means-tested public benefits program.
     Senate amendment
       ``Federal Benefit'' means any grant, contract loan, 
     professional or commercial license, retirement benefit, 
     health or disability benefit, public housing, food stamps, 
     higher education benefits, unemployment benefit, or any 
     similar benefit provided by a Federal agency or with 
     appropriated Federal funds. (Individuals who are not lawfully 
     present are ineligibility for Federal benefits.)
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


                     13. construction (section 434)

     Present law
       Not applicable.
     House bill
       Nothing in this title shall be construed as addressing 
     alien eligibility for governmental programs that are not 
     means-tested public benefits programs.
     Senate amendment
       The Senate amendment's bar to Federal benefits for 
     individuals who are not lawfully present covers a wide range 
     of contracts, grants, licenses, and other assistance that is 
     not means-tested.
     Conference agreement
       The conference agreement follows the House bill with a 
     clarification that the subtitle is silent on alien 
     eligibility for a basic public elementary education as 
     determined by the U.S. Supreme Court in Plyler v. Doe, 457 
     U.S. 202 (1982).

                   Subtitle E--Conforming Amendments


  14. conforming amendments relating to assisted housing (section 441)

     Present law
       No provision.
     House bill
       A series of technical and conforming amendments.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
     
[[Page H15437]]


          Title V. Reductions in Federal Government Positions


                      1. reductions (section 501)

     Present law
       The Department of Health and Human Services (HHS) reports 
     that 118 employees in the Office of Family Assistance (OFA) 
     work on AFDC and 209 (full-time equivalent positions) in 
     regional offices of the Administration on Children and 
     Families. The OFA employees include 30 who spend some time 
     interpreting AFDC/JOBS policy and participating with States 
     in State plan development.
     House bill
       No provision.
     Senate amendment
       Requires the HHS Secretary to reduce the Department 
     workforce by 245 equivalent (FTE) positions related to the 
     AFDC program (which the amendment would replace) and by 60 
     full-time equivalent managerial positions. It also requires 
     the Secretaries of Agriculture, Education, Labor, HHS, and 
     Housing and Urban Development to report to Congress by 
     December 31, 1995 on the number of (FTE) positions required 
     to carry out ``covered'' activities before and after 
     enactment of the amendment and to reduce the number of 
     employees by the difference in numbers. A covered activity is 
     defined as one that the Department must carry out under a 
     provision of this Act or a provision of Federal law that is 
     amended or repealed by the Act.
     Conference agreement
       The conference agreement follows the Senate amendment with 
     a modification that the reductions take place over a two-year 
     period.


           2. reductions in federal bureaucracy (section 502)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       This section also provides for a reduction of 75 percent of 
     the FTE positions ``at each such Department'' that relate to 
     any direct spending program, or program funded through 
     discretionary spending, that is converted into a block grant 
     program under the Act (but it calls for this action to be 
     taken by the HHS Secretary alone to each such Department).
     Conference agreement
       The conference agreement follows the Senate agreement.


      3. reducing personnel in washington, d.c. area (section 503)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       In making reductions the Secretaries are encouraged to 
     reduce personnel in the Washington, D.C. area office before 
     reducing field personnel.
     Conference agreement
       The conference agreement follows the Senate amendment.

                           Title VI. Housing


                            1. ceiling rents

     Present law
       The rent paid by a public housing tenant is the greater of 
     30 percent of ``adjusted'' monthly income or 10 percent of 
     gross income. Adjusted income deducts from annual gross 
     income $480 per dependent, $400 for an elderly family, excess 
     medical costs for an elderly family, and costs of child care 
     and handicapped assistance. Regulations exclude some items 
     from ``income'' by definition, among them: irregular gifts, 
     amounts that reimburse medical expenses, earnings of 
     children, and payments received for the care of foster 
     children. There is no ceiling on rent paid by the tenant. 
     When a tenant's income rises, his/her rent increases, usually 
     by 30 cents per extra dollar of income.
     House bill
       No provision.
     Senate amendment
       The Senate amendment would permit a public housing agency 
     to establish a ceiling on monthly rent charged to a tenant. 
     The amendment stipulates that the amount must reflect the 
     reasonable rental value of the unit, as compared with similar 
     types and sizes of dwelling units in the market area, must at 
     least equal the monthly cost to operate the housing, and must 
     not exceed the amount payable as rent under current law (30 
     percent of adjusted income, or 10 percent of gross income).
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


          2. definition of adjusted income for public housing

     Present law
       Under current law adjusted income deducts from annual gross 
     income $480 per dependent, $400 for an elderly family, excess 
     medical costs for an elderly family, and costs of child care 
     and handicapped assistance. Regulations exclude some items 
     from ``income'' by definition, among them: irregular gifts, 
     amounts that reimburse medical expenses, earnings of 
     children, and payments received for the care of foster 
     children.
     House bill
       No provision.
     Senate amendment
       The amendment would permit a public housing agency to 
     disregard up to 20 percent of the earned income of the 
     family, thus reducing its rental payment. It provides that if 
     a housing agency offers this earnings incentive, the 
     operating subsidy for the unit shall take no account of the 
     resulting change in rental income until actual subsidies 
     equal those that would have been received if all earnings 
     were counted.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


3. Failure to Comply with Other Welfare and Public Assistance Programs 
                             (Section 601)

     Present law
       See item 7, below.
     House bill
       No provision.
     Senate amendment
       The amendment would provide that there be no reduction in 
     public or assisted housing rents in response to a tenant's 
     reduced income resulting from non-compliance with welfare or 
     public assistance program requirements; permits reduction 
     where State or local law limits the period during which 
     benefits may be provided.
     Conference agreement
       The conference agreement follows the Senate amendment.


                   4. Applicability to Indian Housing

     Present law
       The Housing and Urban Development (HUD) Indian Housing 
     Program operates through Indian housing authorities. In 
     general Indian housing authorities are comparable to public 
     housing authorities in structure and function.
     House bill
       No provision.
     Senate amendment
       Provisions of this title apply to public housing developed 
     or operated pursuant to a contract between the HUD Secretary 
     and an Indian housing authority.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


                           5. Implementation

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       The Secretary must issue regulations necessary to carry out 
     this title and its amendments.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


     6. Demonstration Project for elimination of Take-One-Take-All 
                              Requirement

     Present law
       A federal rule requires that if a multifamily rental 
     housing owner makes at least one unit available to a person 
     with a section 8 certificate or voucher, the owner cannot 
     refuse another section 8 participant on the sole basis that 
     he has a section 8 subsidy.
     House bill
       No provision.
     Senate amendment
       Creates a demonstration project in Madison, Wisconsin; the 
     amendment would eliminate a so-called ``take-one, take-all'' 
     requirement that concerns tenant applicants with section 8 
     certificates or vouchers.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


  7. fraud under means-tested welfare and public assistance programs 
                             (section 602)

     Present law
       If a family's adjusted cash income declines--no matter what 
     the reason--its housing benefit is increased (that is, its 
     rental payment is decreased, by 30 cents per dollar). This 
     applies to cash income from any source, including means-
     tested benefit programs. However, the housing programs take 
     no account of noncash income. Thus, if food stamp benefits 
     decline, housing benefits are unaffected.
     House bill
       No provision.
     Senate amendment
       The amendment provides that if a person's means-tested 
     benefits from a Federal, State, or local program are reduced 
     because of an act of fraud, their benefits from public or 
     assisted housing (and from food stamps and family assistance) 
     may not be increased in response to the income loss caused by 
     the penalty.
     Conference agreement
       The conference agreement follows the Senate amendment.


                    8. effective date (section 603)

     Present law
       Not applicable.
     House bill
       No provision.
     Senate amendment
       Date of enactment.
     
[[Page H15438]]

     Conference agreement
       The conference agreement follows the Senate amendment.

  Title VII. Child Protection Block Grant Program and Foster Care and 
                          Adoption Assistance


               1. establishment of program (section 701)

                               A. Purpose

     Present law
       Child Welfare Services, now provided for in Title IV-B of 
     the Social Security Act, are designed to help States provide 
     child welfare services, family preservation and community-
     based family support services, and improve State court 
     procedures related to child welfare.
       Title IV-E Foster Care and Title IV-E Adoption Assistance 
     are intended to help States finance foster care and adoption 
     assistance maintenance payments, administration, child 
     placement services, and training related to foster care and 
     adoption assistance.
       The purpose of the Title IV-E Independent Living program is 
     to help older foster children make the transition to 
     independent living.
     House bill
       The House provision replaces Title IV-B and Title IV-E of 
     the Social Security Act and several additional programs (see 
     below) by establishing a block grant to enable eligible 
     States to carry out child protection programs to:
       (1) identify and assist families at risk of abusing or 
     neglecting their children;
       (2) operate a system for receiving reports of abuse or 
     neglect of children;
       (3) investigate families reported to abuse or neglect their 
     children;
       (4) provide support, treatment, and family preservation 
     services to families which are, or are at risk of, abusing or 
     neglecting their children;
       (5) support children who must be removed from or who cannot 
     live with their families;
       (6) make timely decisions about permanent living 
     arrangements for children who must be removed from or who 
     cannot live with their families; and
       (7) provide for continuing evaluation and improvement of 
     child protection laws, regulations, and services.
       Additional programs to be replaced are: the Child Abuse 
     Prevention and Treatment Act; the Abandoned Infants 
     Assistance Act; adoption opportunities under the Child Abuse 
     Prevention and Treatment and Adoption Reform Act; family 
     support centers under the McKinney Homeless Assistance Act; 
     grants to improve investigation and prosecution of child 
     abuse cases, and children's advocacy centers under the 
     Victims of Child Abuse Act; crisis nurseries under the 
     Temporary Child Care and Crisis Nurseries Act; and Family 
     Unification under Section 8 of the Housing Act.
     Senate amendment
       The Senate amendment would leave intact child welfare 
     services, foster care, adoption assistance and independent 
     living, which are permanently authorized under Title IV-B and 
     IV-E of the Social Security Act. The Senate amendment would 
     reauthorize the Child Abuse Prevention and Treatment Act; 
     adoption opportunities; abandoned infants assistance; missing 
     children's assistance; investigation and prosecution grants, 
     and children's advocacy centers under the Victims of Child 
     Abuse Act. The amendment would repeal both the Temporary 
     Child Care and Crisis Nurseries Act and the Family Support 
     Centers under the McKinney Homeless Assistance Act.
       The Senate amendment gives the Secretary authority under 
     CAPTA to make grants to the States for purposes of assisting 
     the States in improving the child protective service system 
     of each State in:
       (1) screening intake, assessing, and investigating of 
     reports of abuse and neglect;
       (2) creating and improving the use of multidisciplinary 
     teams and interagency protocols to enhance investigations;
       (3) improving case management and delivery of services;
       (4) enhancing the general child protection system by 
     improving risk and safety assessment tools and protocols and 
     automation systems;
       (5) developing, strengthening, and facilitating training 
     opportunities and requirements for individuals overseeing and 
     providing services to children and their families;
       (6) developing and facilitating training protocols for 
     individuals mandated to report child abuse or neglect;
       (7) developing, strengthening, and supporting child abuse 
     and neglect prevention, treatment, and research programs in 
     the public and private sectors;
       (8) developing, implementing, or operating information and 
     education programs or training programs designed to improve 
     the provision of services to disabled infants with life-
     threatening conditions; and
       (9) developing and enhancing the capacity of community-
     based programs to integrate shared leadership strategies 
     between parents and professionals to prevent and treat child 
     abuse and neglect at the neighborhood level.
     Conference agreement
       The Conference agreement establishes a child protection 
     program with three major elements: open-ended entitlements 
     for both foster care and adoption maintenance payments, a 
     Child Protection Block Grant program focusing on prevention 
     and services, and a Child and Family Services Block Grant 
     program that includes research, and demonstrations as well as 
     services. The first block grant (the Child Protection Block 
     Grant) has two components: an entitlement component and a 
     discretionary spending component. Funds for the entitlement 
     component of the block grant are made available by 
     termination of several existing entitlement programs. These 
     include foster care administration, foster care training, 
     adoption assistance administration, adoption assistance 
     training, independent living, and family preservation and 
     support.
       The second block grant established by this title is the 
     Child and Family Services Block Grant, replacing the Child 
     Abuse Prevention and Treatment Act, the Abandoned Infants 
     Assistance Act, adoption opportunities under the Child Abuse 
     Prevention and Treatment and Adoption Reform Act, family 
     support centers under the McKinney Homeless Assistance Act, 
     and the Temporary Child Care and Crisis Nurseries Act.
       The purpose of the Child Protection Block Grant is to:
       (1) identify and assist families at risk of abusing or 
     neglecting their children;
       (2) operate a system for receiving reports of abuse or 
     neglect of children;
       (3) improve the intake, assessment, screening, and 
     investigation of reports of abuse and neglect;
       (4) enhance the general child protective system by 
     improving risk and safety assessment tools and protocols;
       (5) improve legal preparation and representation, including 
     procedures for appealing and responding to appeals of 
     substantiated reports of abuse and neglect;
       (6) provide support, treatment, and family preservation 
     services to families which are, or are at risk of, abusing or 
     neglecting their children;
       (7) support children who must be removed from or who cannot 
     live with their families;
       (8) make timely decisions about permanent living 
     arrangements for children who must be removed from or who 
     cannot live with their families;
       (9) provide for continuing evaluation and improvement of 
     child protection laws, regulations, and services;
       (10) develop and facilitate training protocols for 
     individuals mandated to report child abuse or neglect; and
       (11) develop and enhance the capacity of community-based 
     programs to integrate shared leadership strategies between 
     parents and professionals to prevent and treat child abuse 
     and neglect at the neighborhood level.

                           B. Eligible States

                             Eligible State

     Present law
       To be eligible for funding under Title IV-B and IV-E, 
     States must have State plans (developed jointly with the 
     Secretary under title IV-B, and approved by the Secretary 
     under Title IV-E).
     House bill
       An ``Eligible State'' is one that, during the 3-year period 
     that ends on October 1 of the fiscal year, has submitted to 
     the Secretary a plan that describes how the State intends to 
     pursue the purposes described above.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. See Item 6.I., below, for 
     summary of State eligibility under CAPTA.
     Conference agreement
       An ``Eligible State'' is one that has submitted to the 
     Secretary, not later than October 1, 1996 and every three 
     years thereafter, a plan (as described below) which has been 
     signed by the Chief Executive officer of the State.

                  Outline of child protection program

     Present law
       States must have a child welfare services plan developed 
     jointly by the Secretary and the relevant State agency which 
     provides for single agency administration and which describes 
     services to be provided and geographic areas where services 
     will be available, among numerous other requirements. To 
     receive their full allotment of incentive funds under Title 
     IV-B, States also must comply with extensive Federal Section 
     427 child protections. The State plan also must meet many 
     other requirements, such as setting forth a 5-year statement 
     of goals for family preservation and family support and 
     assuring the review of progress toward those goals. For 
     foster care and adoption assistance, States must submit for 
     approval a Title IV-E plan providing for a foster care and 
     adoption assistance program and satisfying numerous 
     requirements. The Child Abuse Prevention and Treatment Act 
     requires States to have in effect a law for reporting known 
     and suspected child abuse and neglect as well as providing 
     for prompt investigation of child abuse and neglect reports, 
     among many other requirements.
     House bill
       A State plan must include the following outline of the 
     State's Child Protection Program including procedures to be 
     used for:
       a. receiving reports of child abuse or neglect;
       b. investigating such reports;
       c. protecting children in families in which child abuse or 
     neglect is found to have occurred;
       d. removing children from dangerous settings;
       e. protecting children in foster care;
       f. promoting timely adoptions;
       g. protecting the rights of families, using adult relatives 
     as the preferred placement 

[[Page H15439]]
     for children separated from their parents if such relatives meet all 
     relevant standards;
       h. preventing child abuse and neglect; and
       i. establishing and responding to citizen review panels.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. CAPTA requires a 5-year plan 
     that is coordinated with the State plan for child welfare 
     services and family preservation. For amendments to CAPTA 
     requirements, see Section 6 of this document below.
     Conference agreement
       A State plan must include information on the Child 
     Protection Program including procedures to be used for:
       a. receiving and assessing reports of child abuse or 
     neglect;
       b. investigating such reports;
       c. with respect to families in which abuse or neglect has 
     been confirmed, providing services or referral for services 
     for families and children where the State makes a 
     determination that the child may safely remain;
       d. protecting children by removing them from dangerous 
     settings and ensuring their placement in a safe environment;
       e. providing training for individuals mandated to report 
     suspected cases of child abuse or neglect;
       f. protecting children in foster care;
       g. promoting timely adoptions;
       h. protecting the rights of families, using adult relatives 
     as the preferred placement for children separated from their 
     parents if such relatives meet all relevant standards;
       i. providing services aimed at preventing child abuse and 
     neglect; and
       j. establishing and responding to citizen review panels.

                             Certifications

     Present law
       To receive funds under the Child Abuse Prevention and 
     Treatment Act, States must have a law in effect that provides 
     for reporting of known and suspected instances of child abuse 
     and neglect and provides immunity from prosecution for 
     reporters of abuse or neglect. States also must have a 
     program to investigate allegations of abuse or neglect, must 
     preserve confidentiality of records, and must provide that 
     every abused or neglected child involved in a court 
     proceeding is represented by a guardian ad litem. To receive 
     funding under Title IV-B and IV-E of the Social Security Act, 
     States must comply with certain procedures for removal of 
     children from their families when necessary, and must develop 
     case plans for each child that are reviewed at least every 
     six months and contain specified information.
     House bill
       Also included in the submitted plan must be the following 
     certifications;
       a. certification of State law requiring reporting of child 
     abuse and neglect;
       b. certification of State program to investigate child 
     abuse and neglect cases;
       c. certification of State procedures for removal and 
     placement of abused or neglected children;
       d. certification of State procedures for developing and 
     reviewing written plans for permanent placement of each child 
     removed from the family that:
       (1) specifies the goal for achieving a permanent placement 
     for the child in a timely fashion;
       (2) ensures that the plan is reviewed every 6 months; and
       (3) ensures that information about the child is gathered 
     regularly and placed in the case record;
       e. certification that when the State begins operating under 
     the block grant on or after October 1, 1995, families 
     receiving adoption assistance payments at that time continue 
     to receive adoption assistance payments;
       f. certification of State program to provide Independent 
     Living services to 16-19 year old youths (at State option to 
     age 21) who are in the foster care system but have no family 
     to turn to for support;
       g. certification of State procedures to respond to 
     reporting of medical neglect of disabled infants; and
       h. a declaration of State child welfare goals; States must, 
     within 3 years of the date of passage, report quantifiable 
     information on whether they are making progress toward 
     achieving their self-defined child protection goals. (See 
     Data Collection and Reporting, item G. below).
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. CAPTA requires several 
     certifications, many of which are identical to those outlined 
     for the House bill. For amendments to CAPTA requirements, see 
     Section 6 of this document, below.
     Conference agreement
       The following certifications must be included in the State 
     plan:
       (1) certification of State law requiring reporting of child 
     abuse and neglect;
       (2) certification of State procedures for the immediate 
     screening, safety assessment, and prompt investigation of 
     such reports;
       (3) certification of State procedures for the removal and 
     placement of abused or neglected children;
       (4) certification of State laws requiring immunity from 
     prosecution under State and local laws for individuals making 
     good faith reports of suspected or known cases of child abuse 
     or neglect;
       (5) certification of State law and procedures for 
     expungement of any public records on false or unsubstantiated 
     cases;
       (6) certification of State laws and procedures affording 
     individuals an opportunity to appeal an official funding of 
     abuse or neglect;
       (7) certification of State procedures for developing and 
     reviewing written plans for permanent placement of each child 
     removed from the family that:
       (A) specifies the goal for achieving a permanent placement 
     for the child in a timely fashion;
       (B) ensures that the plan is reviewed every 6 months; and
       (C) ensures that information about the child is gathered 
     regularly and placed in the case record;
       (8) certification of State program to provide Independent 
     Living Services to 16-19 year old youths (at State option to 
     age 21) who are in the foster care system but have no family 
     to turn to for support.
       (9) certification of State procedures to respond to 
     reporting of medical neglect of disabled infants;
       (10) a declaration of quantifiable State child welfare 
     goals;
       (11) with respect to fiscal years beginning on or April 1, 
     1996, certification that--
       (A) the State has completed an inventory of all children 
     who, before the inventory, had been in foster care under the 
     responsibility of the State for 6 months or more, which 
     determined--
       (i) the appropriateness of, and necessity for, the foster 
     care placement;
       (ii) whether the child could or should be returned to the 
     parents of the child or should be freed for adoption or other 
     permanent placement; and
       (iii) the services necessary to facilitate the return of 
     the child or the placement of the child for adoption or legal 
     guardianship;
       (B) is operating to the satisfaction of the Secretary--
       (i) a statewide information system on children who are or 
     have been in foster care in the last year,
       (ii) a case review system for each child receiving foster 
     care under the supervision of the State;
       (iii) a service program designed to help children--

       (I) return families from which they have been removed; or
       (II) be placed for adoption,

       (iv) a preplacement preventive service program; and
       (C) has reviewed (or, will review by October 1, 1997) State 
     policies and procedures in effect for children abandoned at 
     birth; and is implementing (or, will implement by October 1, 
     1997) such policies or procedures to enable permanent 
     decisions to be made expeditiously with respect to the 
     placement of such children.
       (12) certification of reasonable efforts to prevent 
     placement of children in foster care;
       (13) certification of cooperative efforts to secure an 
     assignment to the States of any rights to support on behalf 
     of each child receiving foster care maintenance payments; and
       (14) certification of confidentiality and requirements for 
     information disclosure.

                             Determinations

     Present law
       State Title IV-B plans are developed jointly with the 
     Secretary. State Title IV-E plans must be approved by the 
     Secretary. The Secretary must approve any plan that complies 
     with statutory provisions.
     House bill
       The Secretary of HHS must determine whether the State plan 
     includes all of the elements required above but cannot add 
     new elements or review the adequacy of State procedures. The 
     Secretary may not require a State to alter its child 
     protection law regarding determination of the adequacy, type, 
     and timing of health care.
     Senate amendment
       No directly comparable provision in Title IV-B or IV-E. 
     Current law would remain intact. See item 6.N., below for 
     description of similar CAPTA provision on medical care.
     Conference agreement
       The Secretary of HHS must determine whether the State plan 
     includes the required materials and certificates (except 
     material related to the certification of State procedures to 
     respond to reporting of medical neglect of disabled infants). 
     The Secretary cannot add new elements beyond those listed 
     above.

                C. Grants to States for Child Protection

                              Entitlement

     Present law
       Titles IV-B and IV-E of the Social Security Act contain 
     several types of funding, including substantial entitlement 
     funding, for helping States provide assistance to troubled 
     families and their children.
     House bill
       The block grant money is guaranteed funding to States. Each 
     eligible State is entitled to receive from the Secretary an 
     amount equal to the State share of the Child Protection Grant 
     amount for fiscal years 1996 through 2000.
     Senate amendment
       No directly comparable provision in Title IV-B or IV-E. 
     Current law would remain intact. See item 6 below for 
     description of similar CAPTA provision.
     
[[Page H15440]]

     Conference agreement
       As explained above, the Child Protection Block Grant 
     includes a capped entitlement component for States. Each 
     eligible State is entitled to receive from the Secretary an 
     amount equal to the State share of the child Protection Grant 
     amount which increases from $2.047 billion in 1997 to $2.766 
     billion in 2002.
       The Child Protection Block Grant also includes funds from 
     the discretionary program outlined below. In addition to the 
     Block Grant, each eligible State is entitled to receive 
     reimbursements, on as open-ended basis, for the State share 
     of allowable expenditures on eligible children placed in 
     qualified foster care and adoption.

                     Child protection grant amount

     Present law
       Federal funds for child welfare and child protection 
     activities consist both of direct spending under Titles IV-B 
     and IV-E of the Social Security Act, and appropriated funds 
     under Title IV-B of the Social Security Act and selected 
     additional programs, including the Child Abuse Prevention and 
     Treatment Act. (For additional programs, see Item 1.A. of 
     this document, above.)
     House bill
       The Child Protection Grant amount is composed of both a 
     direct spending component and an appropriated component as 
     follows: $3.930 billion in 1996, $4.195 billion in 1997, 
     $4.507 billion in 1998, $4.767 billion in 1999, and $5.071 
     billion in 2000 in direct spending; and $486 million in each 
     year 1996-2000 in appropriated spending.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. The amendment authorizes a 
     total of $263 million for FY1996 and such sums as necessary 
     for FY1997 through FY2000 for State grants, State 
     demonstration projects, discretionary activities, and 
     community-based family resources and support grants under 
     CAPTA; adoption opportunities grants; and abandoned infants 
     assistance grants.
     Conference agreement
       The discretionary component of the block grant includes a 
     $325 million authorization for each year 1997-2002.

                              State share

     Present law
       No specific allocation formula governs the allocation of 
     foster care and adoption assistance funds to States; States 
     are reimbursed on an open-ended entitlement basis for 
     eligible expenditures on behalf of eligible children. 
     Independent living allocations to States are based on each 
     State's share of Title IV-E foster children in FY1984. Family 
     violence grants are awarded on the basis of State population. 
     [Note: The family violence program would not be repealed by 
     H.R. 4.] Child abuse State grants and community-based family 
     resource grants are awarded on the basis of population under 
     the age of 18. State allocations for child welfare services 
     under Title IV-B are based on per capita income and 
     population age 21 and under.
     House bill
       ``State Share'' means each State receives the same 
     proportion of the block grant each year as it received of 
     payments to States by the Federal government for the 
     following selected child welfare programs in either the 
     average of years 1992 through 1994 or in 1994, whichever is 
     greater:
       a. foster care maintenance, administration, and training;
       b. adoption assistance maintenance, administration, and 
     training;
       c. title IV-E independent living award;
       d. family violence and prevention services;
       e. child abuse State grants;
       f. child abuse community-based prevention grants; and
       g. child welfare services.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. See Item 6 below for 
     description of similar CAPTA provision.
     Conference agreement
       The conference agreement follows the House bill, except the 
     selected child welfare programs on which the State share is 
     to be based are:
       (1) foster care administration and training;
       (2) adoption assistance administration and training;
       (3) child welfare services;
       (4) family preservation and family support; and
       (5) independent living services.
         The following table shows State percentage allocations 
     under the Child Protection Block Grant.


Table 3.--State percentage allocations under the child protection block 
                                 grant

                                                             Percent of
State:                                                  national totals
  Alabama..........................................................0.78
  Alaska...........................................................0.28
  Arizona..........................................................1.07
  Arkansas.........................................................0.91
  California......................................................18.71
  Colorado.........................................................1.27
  Connecticut......................................................1.77
  Delaware.........................................................0.15
  District of Columbia.............................................0.55
  Florida..........................................................3.49
  Georgia..........................................................1.36
  Hawaii...........................................................0.35
  Idaho............................................................0.22
  Illinois.........................................................4.98
  Indiana..........................................................2.36
  Iowa.............................................................0.80
  Kansas...........................................................0.88
  Kentucky.........................................................1.60
  Louisiana........................................................1.48
  Maine............................................................0.31
  Maryland.........................................................1.89
  Massachusetts....................................................2.87
  Michigan.........................................................3.85
  Minnesota........................................................1.14
  Mississippi......................................................0.47
  Missouri.........................................................1.49
  Montana..........................................................0.24
  Nebraska.........................................................0.45
  Nevada...........................................................0.17
  New Hampshire....................................................0.30
  New Jersey.......................................................1.27
  New Mexico.......................................................0.35
  New York........................................................19.77
  North Carolina...................................................0.84
  North Dakota.....................................................0.26
  Ohio.............................................................4.60
  Oklahoma.........................................................0.58
  Oregon...........................................................1.06
  Pennsylvania.....................................................4.38
  Rhode Island.....................................................0.44
  South Carolina...................................................0.62
  South Dakota.....................................................0.17
  Tennessee........................................................0.80
  Texas............................................................3.93
  Utah.............................................................0.41
  Vermont..........................................................0.27
  Virginia.........................................................0.93
  Washington.......................................................1.01
  West Virginia....................................................0.29
  Wisconsin........................................................1.78
  Wyoming..........................................................0.06
                                                             __________

  U.S. totals....................................................100.00

Source.--Table prepared by the Congressional Research Service based on 
data received from the U.S. Department of Health and Human Services in 
March of 1995.

                          Definition of State

     Present law
       Under Titles IV-B and IV-E of the Social Security Act, 
     ``State'' means the 50 States and the District of Columbia. 
     The Commonwealth of Puerto Rico, the U.S. Virgin Islands, 
     Guam, and American Samoa receive funds through set-asides and 
     under special rules.
     House bill
       ``State'' includes the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin 
     Islands, Guam, and American Samoa.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact.
     Conference agreement
       ``State''includes the several States and the District of 
     Columbia. The territories will carry out a child protection 
     program in accordance with this part; entitlement funding is 
     provided under section 1108 of the Social Security Act.

                              Use of grant

     Present law
       Funds must be used for: ``protecting and promoting the 
     welfare of children, preventing unnecessary separation of 
     children from their families, restoring children to their 
     families if they have been removed, family preservation 
     services, community-based family support services to promote 
     the well-being of children and families and to increase 
     parents' confidence and competence.'' Foster care maintenance 
     and adoption assistance payments are an open-ended 
     entitlement to individuals.
     House bill
       A State to which funds are paid under this section may use 
     such funds in any manner that the State deems appropriate to 
     accomplish the purposes of this part.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. CAPTA grants can be used for 
     improving child protective services, investigating and 
     reporting of abuse and neglect, case management and delivery 
     of services to children and families, training for service 
     providers and abuse reporters, demonstration projects, 
     kinship care arrangements, abuse and neglect prevention, and 
     similar activities.
     Conference agreement
       The conference agreement follows the House bill. A State to 
     which funds are paid under this section may use such funds in 
     any manner that the State deems appropriate to accomplish the 
     purposes of this part.

                           Transfer of funds

     Present law
       No provision.
     House bill
       In FY1998 and succeeding years, States may transfer up to 
     30 percent of funds paid under this section for activities 
     under any or all of the following: the temporary assistance 
     for needy families block grant; the social services block 
     grant under Title XX of the Social Security Act; the child 
     care and development block grant; and any food and nutrition 
     or employment and training grants enacted during the 104th 
     Congress. Rules of the recipient program will apply to the 
     transferred funds. Funds may be transferred into the Child 
     Protection Block Grant from other block grants and are then 
     subject to the rules of this part.
     Senate amendment
       No provision.
     
[[Page H15441]]

     Conference agreement
       Conferees agree that no funds can be transferred out of the 
     block grant.

                         Timing of expenditures

     Present law
       Provisions vary under programs to be replaced. Under Title 
     IV-E, States have up to two fiscal years in which to claim 
     reimbursement for expenditures.
     House bill
       A State to which funds are paid under this section for a 
     fiscal year shall expend such funds not later than the end of 
     the immediately succeeding fiscal year.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact.
     Conference agreement
       The conference agreement follows the House bill.

                         Rule of interpretation

     Present law
       For-profit foster care providers are not eligible for 
     Federal funding under Title IV-E.
     House bill
       Nothing in this act shall preclude for-profit short- and 
     long-term foster care facilities from being eligible to 
     receive funds from this block grant.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

                           Timing of payments

     Present law
       Under Title IV-B, the Secretary makes payments to States 
     periodically. Under Title IV-E, the Secretary reimburses 
     States for expenditures on a quarterly basis.
     House bill
       The Secretary must make payments on a quarterly basis.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact.
     Conference agreement
       The conference agreement follows the House bill.

                               Penalties

     Present law
       States that do not comply with Section 427 child 
     protections may not receive their share of Title IV-B 
     appropriations above $141 million. However, effective April 
     1, 1996, these protections are to become State plan 
     requirements and the incentive funding mechanism will no 
     longer be in effect. Section 1123 of the Social Security Act 
     requires the Secretary to establish by regulation a new 
     Federal review system for child welfare, which would allow 
     penalties for misuse of funds.
     House bill
       The Secretary must reduce amounts otherwise payable to a 
     State by any amount which an audit conducted under the Single 
     Audit Act finds has been used in violation of this part. The 
     Secretary, however, shall not reduce any quarterly payment by 
     more than 25 percent. The amount of misspent funds will be 
     withheld from the State's payments during the following year, 
     if necessary, to recover the full amount of the penalty.
       If an audit conducted pursuant to the Single Audit Act 
     finds that a State has reduced its level of expenditures in 
     FY 1996 or 1997 below its level of non-Federal expenditures 
     in FY 1995 under Title IV-B or Title IV-E, the Secretary must 
     reduce subsequent amounts otherwise payable to the State by 
     an amount equal to the difference between State spending in 
     FY 1995 and the current year.
       The Secretary must reduce by 3 percent the amount otherwise 
     payable to a State for a fiscal year if the State has not 
     submitted a report required (see item 7 below) for the 
     immediately preceding fiscal year within 6 months after the 
     end of the year. The penalty may be rescinded if the report 
     is submitted within 12 months after the end of the year.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact.
     Conference agreement
       Conferees agree to maintain the detailed child protections 
     now found in section 427 of the Social Security Act. 
     Conferees also agree that an additional penalty equal to 5 
     percent of a State's block grant amount will be imposed in 
     cases where the Secretary finds that funds have been spent in 
     violation of the part, or where a State has failed to meet 
     its maintenance-of-effort requirement. States will be 
     required to maintain 100 percent of their FY 1994 non-Federal 
     expenditure level in FY 1997 and 1998, and 75 percent of such 
     expenditures in subsequent years.
       The agreement provides that the Secretary may not impose a 
     penalty if she determines that the State has reasonable cause 
     for failing to comply with the requirement. Further, a State 
     must be informed before any penalty is imposed and be given 
     an opportunity to enter into a corrective compliance plan. 
     The agreement provides a series of deadlines for submission 
     of such corrective compliance plans and review by the Federal 
     government.

                    Limitation on Federal authority

     Present law
       See above.
     House bill
       Except as expressly provided in this part, the Secretary 
     may not regulate the conduct of States under this part or 
     enforce any provision of this part.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact.
     Conference agreement
       The conference agreement follows the House bill with a 
     modification to refer to authority expressly provided in the 
     Social Security Act

                     D. Child Protection Standards

     Present law
       In order to receive its full share of appropriations for 
     child welfare services under subpart 1 of Title IV-B, each 
     State must meet section 427 protections, including 
     requirements that it: conduct an inventory of children in 
     foster care; operate a tracking system for all children in 
     foster care; operate a case review system for all children in 
     foster care; and conduct a service program to reunite foster 
     children with their families if appropriate, or be placed for 
     adoption or another permanent placement. In addition, if 
     Federal appropriations for the program reach $325 million for 
     two consecutive years, States also must implement a 
     preplacement preventive services program to help children 
     remain with their families. [This funding level has never 
     been reached.] Effective April 1, 1996, these provisions are 
     scheduled to become mandatory State plan requirements, rather 
     than funding incentives, under legislation enacted on Oct. 
     31, 1994 (P.L. 103-432). States also will be required to 
     review their policies and procedures regarding abandoned 
     children and to implement policies and procedures considered 
     necessary to enable permanent decisions to be made 
     expeditiously with regard to placement of such children.
     House bill
       The following standards are included in the bill to 
     indicate what States must do to assure the protection of 
     children and to provide guidance to the Citizen Review 
     Panels:
       a. the primary standard by which child welfare system shall 
     be judged is the protection of children.
       b. each State shall investigate reports of abuse and 
     neglect promptly;
       c. children removed from their homes shall have a 
     permanency plan and a dispositional hearing within 3 months 
     after a fact-finding hearing' and
       d. all child protection cases with an out-of-home placement 
     shall be reviewed every 6 months unless the child is already 
     in a long-term placement.
       A State receiving funds from this block grant may consider: 
     establishing a new type of permanent foster care placement 
     referred to as ``kinship care'' in which adult relatives 
     would be the preferred placement option if they met all 
     relevant standards, and could receive needs-payments and 
     supportive services; and, in placing children for adoption, 
     giving preference to adult relatives who meet applicable 
     standards.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. CAPTA requires a number of 
     certifications by the State, including several that are 
     similar to standards in the House block grant. For details 
     see Item 6.I. below.
       No directly comparable provision in Titles IV-B or IV-E. 
     Under CAPTA, the Secretary may award grants to public 
     entities to develop or implement procedures using adult 
     relatives as the preferred placement for children removed 
     from their home; see item 6.H. below.
     Conference agreement
       In order for a State to receive any funds under this part, 
     such State must certify that it has conducted an inventory of 
     children in foster care; is operating a tracking system for 
     all children in foster care; is operating a care review for 
     all children in foster care, and is conducting a service 
     program to reunite foster children with their families if 
     appropriate, or be placed for adoption or another permanent 
     placement. States will also be required to review their 
     policies and procedures regarding abandoned children and to 
     implement policies and procedures considered necessary to 
     enable permanent decisions to be made expeditiously with 
     regard to placement of such children. These child protection 
     standards are identical to those found in section 427 of 
     current law.

                       E. Citizens Review Panels

     Present law
       No provision.
     House bill
       Each State to which funds are paid under this part must 
     have at least three Citizen Review Panels. Each panel is to 
     be broadly representative of the community farm which it is 
     drawn.
       The Panels, which must meet at least quarterly, are charged 
     with the responsibility of reviewing cases from the child 
     welfare system to determine whether State and local agencies 
     receiving funds under this program are carrying out 
     activities in accord with the State plan, are achieving the 
     child protection standards, and are meeting any other 

[[Page H15442]]
     child welfare criteria that the Panels consider important.
       The members and staff of any Panel must not disclose to any 
     person or government agency any information about specific 
     cases. States must afford a Panel access to any information 
     on any case that the Panel desires to review, and shall 
     provide the Panels with staff assistance in performing their 
     duties.
       Panels must produce a public report after each meeting and 
     States must include information in their annual report 
     detailing their responses to the panel report and 
     recommendations. (See Data Collection and Reporting, item G. 
     below.)
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.

     F. Clearinghouse and Hotline for Missing and Runaway Children

     Present law
       The Missing Children's Assistance Act, authorized as part 
     of the Juvenile Justice and Delinquency Prevention Act, 
     authorizes a toll-free hotline and national clearinghouse to 
     collect and disseminate information about missing children.
     House bill
       The Attorney General of the United States shall have the 
     authority to establish and operate a national information 
     clearinghouse, including a 24-hour toll free telephone 
     hotline, for information on missing children cases. An 
     appropriation not to exceed $7 million per fiscal year is 
     authorized for this purpose.
     Senate amendment
       Reauthorizes the Missing Children's Assistance Act through 
     FY 1997 (see Item 12.A. of this document, below).
     Conference agreement
       The House recedes.

                    G. Data Collection and Reporting

     Present law
       States are not required to report specific child welfare 
     data. Section 479 requires the Secretary to publish 
     regulations that implement a system for the collection of 
     adoption and foster care data. These regulations were 
     published as final on Dec. 22, 1993, and are mandatory for 
     all States. In addition, section 13713 of the Omnibus Budget 
     Reconciliation Act of 1993 (P.L. 103-66) makes available 
     enhanced Federal matching funds (75 percent Federal match 
     instead of 50 percent) for planning, design, development and 
     installation of statewide automated child welfare information 
     systems. Regulations governing these systems were published 
     on Dec. 22, 1993, and May 19, 1995. The enhanced match 
     expires after Sept. 30, 1996.
     House bill
       Three years after the effective date and annually 
     thereafter, each State to which funds are paid under this 
     part must submit to the Secretary a report containing 
     quantitative information on the extent to which the State is 
     making progress toward its child protection program goals (as 
     described above).
       Each State to which funds are paid under this part must 
     annually submit to the Secretary of Health and Human Services 
     a report that includes the following annual statistics:
       (1) the number of children reported to the State during the 
     year as abused or neglected;
       (2) of the number of reported cases of abuse or neglect, 
     the number that were substantiated;
       (3) of the number of reported cases that were 
     substantiated, (a) the number that received no services under 
     the State program funded under this part; (b) the number that 
     received services under the State program funded under this 
     part; and (c) the number removed from their families;
       (4) the number of families that received preventive 
     services from the State;
       (5) the number of children who entered foster care under 
     the responsibility of the State;
       (6) the number of children who exited foster care under the 
     responsibility of the State;
       (7) types of foster care placements made by State and the 
     number of children in each type of care;
       (8) average length of foster care placements made by State;
       (9) the age, ethnicity, gender, and family income of 
     children placed in foster care under the responsibility of 
     the State;
       (10) the number of children in foster care for whom the 
     State has the goal of adoption;
       (11) the number of children in foster care under the 
     responsibility of the State who were freed for adoption;
       (12) the number of children in foster care under the 
     responsibility of the State whose adoptions were finalized;
       (13) the number of disrupted adoptions in the State;
       (14) quantitative measurements showing whether the State is 
     making progress toward the child protection goals identified 
     by the State;
       (15) the number of infants abandoned during the year, the 
     number of these infants who were adopted, and the length of 
     time between abandonment and legal adoption;
       (16) the number of deaths of children occurring while said 
     children were in custody of the State;
       (17) the number of deaths of children resulting from child 
     abuse or neglect;
       (18) the number of children served by the State Independent 
     Living program;
       (19) other information which the Secretary and a majority 
     of the State agree is appropriate to collect for purposes of 
     this part; and
       (20) the response of the State to findings and 
     recommendations of the citizen review panels.
       States may fulfill the data collection and reporting 
     requirements by collecting the required information on either 
     individual children and families receiving child protection 
     services or by using scientific statistical sampling methods.
       Within 6 months after the end of each fiscal year, the 
     Secretary must prepare an annual report on State data for 
     Congress and the public.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law would remain intact. States receiving CAPTA 
     grants must submit annual data reports to the Secretary (see 
     Item 6.I below). CAPTA requires States to report 10 data 
     elements, many of which are substantially similar to the 
     House reporting requirements.
       Requires the Secretary, in administering CAPTA, to prepare 
     annual reports, based on State data, for Congress and the 
     national information clearinghouse on child abuse and 
     neglect. (See Item 6.I below.) Requires Secretary in 6 months 
     after receiving State reports to prepare and submit annual 
     report to Congress.
     Conference agreement
       The Senate recedes with an amendment mandating two sets of 
     data to be collected for child protection programs. There is 
     a single data collection and reporting system required for 
     child protection programs. Part one of the mandated data 
     reporting requires States to report the following data every 
     6 months: (1) whether the child received services under the 
     program funded under this part; (2) the age, race, gender, 
     and family income of the parents and child; (3) county of 
     residence; (4) whether the child was removed from the family; 
     (5) whether the child entered foster care under the 
     responsibility of the State; (6) the type of out of home care 
     in which the child was placed (including institution, group 
     home, family foster care, or relative placement); (7) the 
     child's permanency planning goal, such as reunification, 
     kinship care, adoption, or independent living; (8) whether 
     the child was freed for adoption; and (9) whether the child 
     existed from foster care, and, if so, whether the exit was 
     due to return to the family, adoption, independent living, or 
     death.
       In addition, the States must submit the following aggregate 
     data annually: (1) the number of children reported to the 
     State during the year as alleged victims of abuse or neglect; 
     (2) of the number of children for whom an investigation of 
     alleged maltreatment resulted in a determination of 
     substantiated abuse or neglect, the number for whom 
     maltreatment was unsubstantiated, and the number determined 
     to be false; (3) the number of families that received 
     preventive services; (4) the number of infants abandoned 
     during the year, the number of these infants who were 
     adopted, and the length of time between abandonment and 
     adoption; (5) the number of deaths of children occurring 
     while the children were in custody of the State; (6) the 
     number of deaths of children resulting from child abuse and 
     neglect, including those which occurred while the child was 
     in the custody of the State; (7) the number of children 
     served by the State Independent Living program; (8) 
     quantitative measurements showing whether the State is making 
     progress toward the child protection goals identified by the 
     State; (9) the types of maltreatment suffered by victims of 
     abuse and neglect; (10) the number of abused and neglected 
     children receiving services; (11) the average length of stay 
     in out-of-home care; (12) the response of the State to 
     findings and recommendations of the citizen review panels; 
     and (13) other information which the Secretary and a majority 
     of the States agree is appropriate to collect for the 
     purposes of this part. States may be required to report other 
     information approved by the Secretary and agreed to by a 
     majority of States, including information necessary to assure 
     a smooth transition from AFCARS and NCANDS to the data 
     reporting system required by this legislation. The Secretary 
     will define by regulation the information required to be 
     included in State data reports. States may comply with 
     requirements for precise numerical information by using 
     scientifically acceptable sampling methods. The Secretary 
     will report annually to Congress and the public on 
     information provided in State data reports.

                        H. Research and Training

     Present law
       Current law authorizes appropriations for research under 
     Title IV-B of the Social Security Act and the Child Abuse 
     Prevention and Treatment Act. In FY 1995, $6 million is 
     appropriated under Title IV-B and $9 million under CAPTA.
     House bill
       An appropriation of $10 million per year is authorized for 
     the Secretary to spend at her discretion on research and 
     training in child welfare.
     Senate amendment
       No directly comparable provision in Titles IV-B or IV-E. 
     Current law under Title IV-B would remain intact, and CAPTA 
     would be 

[[Page H15443]]
     reauthorized. Although CAPTA has no separate authorization for research 
     and training, the Secretary has discretionary authority to 
     conduct research and training. For details see Item 6.G., 
     below.
     Conference agreement
       The Senate recedes with an amendment establishing specific 
     research activities, authorized in the Child and Family 
     Services Block Grant, to be undertaken by the Secretary of 
     the Department of Health and Human Services. Under this part, 
     $10 million are authorized and appropriated for each of FYs 
     1996-2002 for the Secretary to conduct child welfare 
     research.

            I. National Random Sample Study of Child Welfare

     Present law
       No provision.
     House bill
       The Secretary is provided with $6 million per year for 
     fiscal years 1996-2000 to conduct a national random-sample 
     study of child welfare. The study will have a longitudinal 
     component, yield data reliable at the State level for as many 
     States as the Secretary determines is feasible, and should 
     alternate data collection in small States from year-to-year 
     to yield an occasional picture of child welfare in small 
     States. The Secretary has discretion in drawing the sample 
     and in selecting measures, but should carefully consider 
     selecting the sample from all cases of confirmed abuse and 
     neglect and then following each case over several years while 
     obtaining such measures as type of abuse or neglect involved, 
     frequency of contact with agencies, whether the child was 
     separated from the family, types and characteristics of out-
     of-home placements, number of placements, and average length 
     of placement. The Secretary must prepare occasional reports 
     on this study and make them available to the public. The 
     reports should summarize and compare the results of this 
     study with the data reported by States. Written reports or 
     tapes of the raw data from the study should be made available 
     to the public at a fee the Secretary thinks appropriate.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes. The provisions mandating the national 
     random sample study of child welfare are contained in the 
     Child and Family Services Block Grant. Mandatory funds will 
     be available to conduct the study equal to $6 million per 
     year for FY 1996-FY 2002. In addition, $10 million are 
     authorized and appropriated for each of FYS 1996-1998 for the 
     Secretary to carry out the State court assessment and 
     improvement program authorized under section 13712 of the 
     Omnibus Budget Reconciliation Act of 1993. These funds may be 
     expended no later than September 30, 1999.

             J. Removal of Barriers to Interethnic Adoption

     Present law
       State law governs adoption and foster care placement. Forty 
     three States permit race matching either in regulation, 
     statute, policy, or practice. The Metzenbaum Multiethnic 
     Placement Act of 1994 permits States to consider race and 
     ethnicity in selecting a foster care or adoptive home, but 
     States cannot delay or deny the placement of the child solely 
     on the basis of race, color or national origin.
       Noncompliance with the Metzenbaum Act is deemed a violation 
     of title VI of the Civil Rights Act.
     House bill
       Section 553 of the Howard M. Metenbaum Multiethnic 
     Placement Act of 1994 is repealed. (See conforming 
     amendments, item 2 below.) In addition, a State or other 
     entity that receives Federal assistance may not 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. Similarly, no State or 
     other entity receiving Federal funds can delay or deny the 
     placement of a child for adoption or 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.
       A State or other entity that violates this provision during 
     a period shall remit to the Secretary all funds that were 
     paid to the State or entity during the period.
       An action under this paragraph may not be brought more than 
     2 years after the date the alleged violation occurred.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes with an amendment modifying the 
     sanctions which can be imposed on a State. This provision is 
     authorized under the Child and Family Services Block Grant. 
     If the State is found to be in violation of the provisions of 
     this section, the Secretary will notify the State of the 
     violation. The State will then have 90 days to correct the 
     violation. If the violation continues after the 90 day 
     period, the Secretary will reduce the amount allotted to a 
     State for the next fiscal year under Part B of title IV of 
     the Social Security Act by 10 percent. The conferees express 
     their strong desire that States use some of the funding under 
     this part to recruit loving families from all racial and 
     national origin backgrounds from which social service 
     departments may choose when it becomes necessary to find 
     foster care and adoptive placements for children.
       While agencies must obviously make placements based on the 
     best interests of children, such family recruitment by the 
     States may not cause a delay or prevent the timely placement 
     of a child in an adoptive or pre-adoptive home.


                 2. Conforming Amendments (Section 702)

     Present law
       No provision.
     House bill
       This section contains technical amendments that conform 
     provisions of the bill to Titles IV-D and XVI of the Social 
     Security Act, and to the Omnibus Budget Reconciliation Act of 
     1986, and provide for the repeal of Section 553 of the Howard 
     M. Metzenbaum Multiethnic Placement Act of 1994, Title IV-E 
     of the Social Security Act, section 13712 of the Omnibus 
     Budget Reconciliation Act of 1993, and subtitle C of Title 17 
     of the Violent Crime Control and Law Enforcement Act of 1994. 
     (Under section 371 of Title III-C of the House bill, the 
     following additional programs are repealed related to the 
     Child Protection Block Grant: abandoned infants assistance, 
     the Child Abuse Prevention and Treatment Act, adoption 
     opportunities, crisis nurseries, mission children's 
     assistance, family support centers, certain activities under 
     the Victims of Child Abuse Act, and Family Unification under 
     the Housing Act.)
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement requires the Secretary of HHS to 
     submit, within 90 days of enactment, a legislative proposal 
     providing necessary technical and conforming amendments.
       The agreement also repeals Title IV-E of the Social 
     Security Act, and makes conforming amendments to Title XVI 
     and Title IV-D of the Social Security Act, section 9442 of 
     the Omnibus Budget Reconciliation Act of 1986, and section 
     1123 of the Social Security Act.


  3. continued application of current standards under medicaid program

     Present law
       Children for whom Federal foster care payments are made are 
     deemed to be ``dependent children'' for purposes of Medicaid 
     eligibility.
     House bill
       Conforms Medicaid coverage of this title with title I of 
     the House bill. In general, the Medicaid provision is 
     designed to ensure that individuals who receive Medicaid 
     coverage under current law will continue to be covered after 
     passage of H.R. 4. Here is a summary of Medicaid provision 
     from title I: ``An individual who on enactment was receiving 
     AFDC, was eligible for medical assistance under the State 
     plan under this title, and would be eligible to receive aid 
     or assistance under a State plan approved under part A of 
     title IV but for the prohibition on grant funds being used to 
     provide assistance to noncitizens, minor unwed mothers or 
     their children, or children born to families already on 
     welfare, would continue to be eligible for Medicaid. Families 
     leaving welfare for work would also continue to receive the 
     1-year Medicaid transition benefit.''
     Senate amendment
       The Senate amendment is similar to the House bill except 
     that States have flexibility to be more restrictive in 
     awarding Medicaid coverage than under current law.
     Conference agreement
       The conference agreement changes both the House bill and 
     the Senate amendment because of pending changes in Medicaid 
     legislation. To conform this bill with the pending Medicaid 
     legislation, conferees agree that States will determine 
     Medicaid eligibility for recipients of block grant 
     assistance. This provision is found in section 114 of Title I 
     of the conference bill.


                    4. effective date (section 703)

     Present law
       No provision.
     House bill
       Under otherwise indicated in particular sections of the 
     bill, the amendments and repeals made by this title take 
     effect on October 1, 1995. The amendments shall not apply 
     with respect to powers, duties, functions, rights, claims, 
     penalties, or obligations applicable to aid or services 
     provided before the effective date, or to administrative 
     actions and proceedings commenced, or authorized to be 
     commenced, before the effective date.
     Senate amendment
       No provision.
     Conference agreement
       The amendments will take effect on Oct. 1, 1996, except for 
     provisions that authorize and appropriate funds in FY 1996 
     for research and count improvements, and requiring the 
     Secretary to prepare technical and conforming amendments. The 
     agreement establishes transition rules for pending claims, 
     actions and proceedings, and relating to the closing out of 
     accounts for programs that are terminated or substantially 
     modified.


5. sense of the congress regarding timely adoption of children (section 
                                  704)

     Present law
       No provision.
     
[[Page H15444]]

     House bill
       It is the sense of the Congress that:
       (1) too many adoptable children are spending too much time 
     in foster care;
       (2) States must increase the number of waiting children 
     being adopted in a timely manner;
       (3) Studies have shown that States would save significant 
     amounts of money if they offered incentives to families to 
     adopt special needs children who would otherwise require 
     foster care;
       (4) States should allocate sufficient funds for adoption 
     and medical assistance to encourage families to adopt 
     children who are languishing in foster care;
       (5) States should offer incentives for families that adopt 
     special needs children to make adoption more affordable for 
     middle-income families;
       (6) States should strive to provide children removed from 
     their biological parents with a single foster care placement 
     and case team and to conclude an adoption of the child, when 
     adoption is the goal, within one year of the child's 
     placement in foster care; and
       (7) States should participate in programs to enable maximum 
     visibility of waiting children to potential parents, 
     including a nationwide computer network to disseminate 
     information on children eligible for adoption.
     Senate amendment
       Title VIII of the Senate amendment addresses adoption 
     issues. See Section 13, below.
     Conference agreement
       The Senate recedes.


 6. Child Abuse Prevention and Treatment; General Program (Section 751)

                              A. Reference

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Provides that, unless otherwise indicated, any amendments 
     or repeals should be considered to apply to the Child Abuse 
     Prevention and Treatment Act (CAPTA).
     Conference agreement
       The House recedes with an amendment renaming this chapter 
     as Child and Family Services Block Grant.

                              B. Findings

     Present law
       Section 2 of CAPTA contains findings with regard to the 
     scope of child abuse and neglect, the need for a 
     comprehensive approach to address child abuse and neglect, 
     various goals with regard to national policy, and the 
     appropriate Federal role in this area.
     House bill
       No provision.
     Senate amendment
       Amends section 2 to update findings with regard to the 
     scope of child abuse and neglect and to make minor changes, 
     including change of references from ``child protection'' to 
     ``child and family protection.''
     Conference agreement
       The Senate recedes with an amendment restructuring the 
     findings to reflect the consolidation and blending of other 
     programs.

                  C. Office of Child Abuse and Neglect

     Present law
       Section 101 of CAPTA requires the Secretary of HHS to 
     establish a National Center on Child Abuse and Neglect.
     House bill
       No provision.
     Senate amendment
       Amends section 101 to allow the Secretary of HHS to 
     establish an Office on Child Abuse and Neglect which would be 
     responsible for executing and coordinating the functions and 
     activities authorized by CAPTA. Repeals current mandate for a 
     National Center on Child Abuse and Neglect.
     Conference agreement
       The Senate recedes.

              D. Advisory Board on Child Abuse and Neglect

     Present law
       Section 102 of CAPTA requires the Secretary to appoint a 
     U.S. Advisory Board on Child Abuse and Neglect, and specifies 
     the composition and duties of the board.
     House bill
       No provision.
     Senate amendment
       Amends section 102 by repealing current mandate for a U.S. 
     Advisory Board on Child Abuse and Neglect, and instead allows 
     the Secretary of HHS to appoint an advisory board to make 
     recommendations concerning child abuse and neglect issues. 
     Duties of the new board would include making recommendations 
     on coordination of Federal, State and local child abuse and 
     neglect activities with similar activities regarding family 
     violence at those levels; specific modification needed in 
     Federal and State laws to reduce the number of unfounded or 
     unsubstantiated cases of child maltreatment; and 
     modifications needed to facilitate coordinated data 
     collection with respect to child protection and child 
     welfare.
     Conference agreement
       The Senate recedes with an amendment giving the Secretary 
     authority to appoint an advisory board to: provide 
     recommendations on coordinating Federal, State, and local 
     child abuse and neglect activities at the State level with 
     similar activities at the State and local level pertaining to 
     family violence; consider specific modifications needed in 
     State laws and programs to reduce the number of unfounded or 
     unsubstantiated reports of child abuse or neglect while 
     enhancing the ability to identify and substantiate legitimate 
     cases of abuse or neglect which place a child in danger; and 
     provide recommendations for modifications needed to 
     facilitate coordinated national and Statewide data collection 
     with respect to child protection and child welfare.

                  E. Repeal of Interagency Task Force

     Present law
       Section 103 of CAPTA requires the Secretary to establish an 
     Interagency Task Force on Child Abuse and Neglect.
     House bill
       No provision.
     Senate amendment
       Repeals section 103 of CAPTA.
     Conference agreement
       The House and Senate concur.

 F. National Clearinghouse for Information Relating to Child Abuse and 
                                Neglect

     Present law
       Section 104 of CAPTA requires the Secretary to establish a 
     national clearinghouse for information relating to child 
     abuse and neglect.
     House bill
       No provision.
     Senate amendment
       Amends section 104 to retain authorization for a national 
     information clearinghouse on child abuse and neglect, and 
     expands the duties of the clearinghouse to include collecting 
     data on false and unsubstantiated reports and deaths 
     resulting from child abuse and neglect, and, through a 
     national data collection and analysis program, to collect and 
     make available State child abuse and neglect reporting 
     information which, to the extent practical, is universal and 
     case specific, and integrated with other case-based factor 
     care and adoption data collected by HHS.
     Conference agreement
       The Senate recedes with an amendment placing the 
     Clearinghouse within the Research, Demonstrations, Training, 
     and Technical Assistance section. The function of the 
     clearinghouse is to: maintain, coordinate, and disseminate 
     information on all programs, including private 
     (nongovernmental) programs, that show promise of success with 
     respect to the prevention, assessment, identification, and 
     treatment of child abuse and neglect; and maintain and 
     disseminate information relating to the incidence of cases of 
     child abuse and neglect including the incidence of such cases 
     that are related to alcohol or drug abuse in the United 
     States.

           G. Research, Evaluation and Assistance Activities

     Present law
       Section 105 of CAPTA authorizes the Secretary, through the 
     National Center, to conduct research and technical assistance 
     related to child abuse and neglect.
     House bill
       Authorizes appropriations of $10 million annually for the 
     Secretary to conduct research and training related to child 
     welfare. (See Item 1.H., above).
     Senate amendment
       Amends section 105 to restructure the research activities 
     function of the Secretary of HHS by deleting references to 
     the National Center and by requiring research on additional 
     issues, including substantiated and unsubstantiated reported 
     child abuse cases. Authorizes technical assistance to include 
     evaluated or identification of: various methods for 
     investigation, assessment, and prosecution of child physical 
     and sexual abuse cases; ways to mitigate psychological trauma 
     to child victims; and effective programs carried out under 
     CAPTA. Allows the Secretary of HHS to provide for 
     dissemination of information related to various training 
     resources available at the State and local levels. Continues 
     authorization for a formal peer review process which utilizes 
     scientifically valid review criteria.
     Conference agreement
       The House recedes with an amendment restructuring the 
     research activities to focus on information designed to 
     better protect children from abuse or neglect by examining 
     the national incidence of child abuse and neglect, including 
     substantiated and unsubstantiated report child abuse or 
     neglect cases.

                  H. Grants for Demonstrated Programs

     Present law
       Section 106 of CAPTA authorizes the Secretary to make 
     grants to public agencies and private nonprofit organizations 
     for demonstration or service programs or projects, that must 
     include an evaluation component; resource centers; and 
     discretionary grants that may be used for a variety of 
     purposes.
     House bill
       No provision.
     Senate amendment
       Amends section 106 to retain authority for the 
     demonstration grants program and to change the criteria for 
     awarding grants. Authorizes the following purposes for 
     demonstration programs and projects: training 

[[Page H15445]]
     programs, mutual support and self-help programs for parents, innovative 
     programs that use collaborative partnerships between various 
     agencies to allow for establishment of a triage system in 
     responding to child abuse and neglect reports; kinship care 
     programs, and supervised visitation centers for families 
     where there has been child abuse or domestic violence. All 
     demonstration projects will be evaluated for their 
     effectiveness.
     Conference agreement
       The House recedes with an amendment authorizing the 
     following demonstration programs and projects: Innovative 
     programs and projects that use collaborative partnerships 
     between various agencies to allow for the establishment of a 
     triage system in responding to child abuse and neglect; 
     kinship care programs; programs to expand opportunities for 
     the adoption of children with special needs; family resource 
     and support programs; and other innovative preventative and 
     treatment programs such as Parents Anonymous.

         I. State Grants for Prevention and Treatment Programs

     Present law
       Section 107 of CAPTA authorizes the Secretary to make 
     development and operation grants to States to assist them in 
     improving their child protective service systems. States must 
     meet certain eligibility requirements, which include having a 
     State law in effect providing for reporting of child abuse or 
     neglect allegations and providing immunity from prosecution 
     for reporters of abuse or neglect.
       Requires that States have in place procedures for 
     responding to reports of medical neglect, including instances 
     of withholding medically indicated treatment from disabled 
     infants with life-threatening conditions.
     House bill
       States would receive Child Protection Block Grants, which 
     would be used for child protective service systems, among 
     other related activities. To receive block grants, States 
     must certify that they have in effect a State law for 
     reporting of child abuse or neglect, a program to investigate 
     child abuse and neglect reports, and procedures to respond to 
     reporting of medical neglect of disabled infants among other 
     requirements. (See Item 1.B. (2) and (3), above.)
       Requires States participating in the Child Protection Block 
     Grant to submit detailed annual data reports to the 
     Secretary. (See Item 1.G.2., above.) The Secretary would 
     prepare annual reports for Congress. (See Item 1.G.4., 
     above.)
     Senate amendment
       Revises section 107. Under revised eligibility 
     requirements, States would provide an assurance or 
     certification, signed by the chief executive officer of the 
     State, that the State has a law or statewide program relating 
     to procedures for: reporting of known and suspected instances 
     of child abuse and neglect; immediate screening, safety 
     assessment, and prompt investigation of such reports; 
     procedures for immediate steps to be taken to protect the 
     safety of children; provisions for immunity from prosecution 
     for individuals making good faith reports of child abuse; 
     methods for preserving confidentiality of records; 
     requirements for the prompt disclosure of relevant 
     information to appropriate entities working to protect 
     children; the cooperation of law enforcement officials, court 
     personnel and human services agencies; provision for the 
     appointment of a guardian ad litem to represent the child in 
     any judicial proceedings; and provisions that facilitate the 
     prompt expungement of unsubstantiated or false child abuse 
     reports.
       Requires that States have in place procedures for 
     responding to reports of medical neglect, including instances 
     of withholding medically indicated treatment from disabled 
     infants with life-threatening conditions.
       States must have in place, within two years of enactment, 
     provisions by which individuals who disagree with an official 
     finding of abuse or neglect can appeal such a finding.
       States would submit a plan every 5 years, instead of 4, 
     demonstrating their eligibility and specifics about how their 
     grant money will be used.
       States would be required to work annually with the 
     Secretary to provide, to the maximum extent practicable, a 
     report containing specified data on their child protective 
     service systems, including the number of children reported as 
     abused or neglected, data on substantiation of reports, 
     services provided to reported children, preventive services 
     provided to families, the number of child deaths resulting 
     from abuse or neglect including the number of children who 
     died while in foster care, number of caseworkers responsible 
     for intake and screening, agency response time to abuse or 
     neglect reports, response time with respect to provision of 
     services to families where abuse or neglect has been alleged, 
     and the number of caseworkers relative to the number of 
     reports investigated in the previous year. The Secretary 
     would prepare a report based on State data, to be submitted 
     to Congress and the national information clearinghouse on 
     child abuse and neglect.
     Conference agreement
       The Senate recedes with an amendment providing for a block 
     grant to States for the purpose of (1) assisting each State 
     in improving the child protective services of such State, (2) 
     supporting State efforts to develop, operate, expand and 
     enhance a network of community-based, prevention-focused, 
     family resource and support programs, (3) facilitating the 
     elimination of barriers to adoption for children with special 
     needs, (4) responding to the needs of children, in particular 
     those who are drug exposed or inflicted with Acquired Immune 
     Deficiency Syndrome (AIDS), and (5) carrying out any other 
     activities as the Secretary determines to be consistent with 
     this chapter. Requirements regarding the State plan, 
     eligibility for funding, assurances and certifications, and 
     data collection and reporting are the same as those mandated 
     for receipt of the Child Protection Block Grant, as described 
     below.
       The conference agreement establishes uniform eligibility 
     and reporting requirements for the programs funded under 
     Title VII of this act (Child Protection Block Grant Program 
     and Foster Care and Adoption Assistance). To be eligible to 
     receive funds from the child protection block grant programs 
     included in Title VII, States must submit a written document 
     outlining the activities which the State will undertake to 
     ensure the protection of abused and neglected children and 
     their families. States are required to certify that the State 
     has in effect and operational a State law or statewide 
     program relating to procedures for: reporting of known and 
     suspected instances of child abuse and neglect by public 
     officials and professionals; the immediate screening, safety 
     assessment, and prompt investigation of such reports; the 
     removal of abused and neglected children from their homes (if 
     necessary) and the placement of those children in safe 
     environments; providing immunity from prosecution for 
     individuals making good faith reports of child abuse; the 
     prompt expungement of records in cases determined to be 
     unsubstantiated or false; (within two years of enactment) 
     appealing an official finding of abuse or neglect by 
     individuals in disagreement with such finding; ensuring that 
     a written plan is prepared for children who have been removed 
     from their families; providing independent living services 
     for older children in State protective care; responding to 
     reports of medical neglect, including instances of 
     withholding medically indicated treatment from disabled 
     infants with life-threatening conditions; ensuring that 
     reasonable efforts are made to prevent or eliminate the 
     removal of a child from their family prior to placement in 
     foster care or other placements outside the home; identifying 
     quantitative goals for the State child protection services; 
     compliance with the child protection standards specified in 
     the Act; the prompt disclosure of relevant information to 
     appropriate government entities working to protect children, 
     including citizen review panels and child fatality review 
     panels; and public disclosure of information regarding a 
     child fatality or near-fatality caused by child abuse or 
     neglect.
       The conferees intend to preserve the confidentiality of 
     reports and case information pertaining to child abuse and 
     neglect except in the instances specifically delineated in 
     this act or when a State legislature has specifically 
     authorized limited release of such information. It is the 
     clear intention of the conferees that case information must 
     be shared among the various governmental agencies responsible 
     for the protection of children form abuse or neglect in order 
     to facilitate the most effective response to these cases. 
     Furthermore, it also is the intent of the conferees that in 
     the case of a fatality or near-fatality resulting from child 
     abuse or neglect, that the factual information regarding how 
     the case was handled may be disclosed to the public in an 
     effort to provide public accountability for the actions or 
     inaction of public officials.

                               J. Repeal

     Present law
       Section 108 of CAPTA authorizes the Secretary to provide 
     training and technical assistance to States.
     House bill
       No provision.
     Senate amendment
       Repeals section 108.
     Conference agreement
       The House recedes with an amendment providing for technical 
     assistance to the States in planning, improving, developing 
     and carrying out programs and activities relating to the 
     prevention, assessment, identification and treatment of child 
     abuse and neglect as well as assistance to public or private 
     non-profit agencies or organizations to expand adoption 
     opportunities.

                     K. Miscellaneous Requirements

     Present law
       Section 110(c) of CAPTA requires the Secretary to ensure 
     that a majority share of assistance under CAPTA is available 
     for discretionary research and demonstration grants.
     House bill
       No provision.
     Senate amendment
       Strikes section 110(c).
     Conference agreement
       The House and Senate concur.

                             L. Definitions

     Present law
       Section 113 of CAPTA contains definitions.
     House bill
       No provision.
     Senate amendment
       Amends section 113 to change some definitions. Strikes 
     definitions of ``Board'' and ``Center,'' and changes the 
     definition of 

[[Page H15446]]
     ``child abuse and neglect'' to mean, at a minimum, ``any recent act or 
     failure to act on the part of a parent or caretaker, which 
     results in death, serious physical or emotional harm, sexual 
     abuse or exploitation, or an act or failure to act which 
     presents an imminent risk of serious harm.''
     Conference agreement
       The House recedes with an amendment striking certain 
     definitions, and modifying other including ``child abuse and 
     neglect'' to mean, ``at a minimum: any act or failure to act 
     on the part of a parent or caretaker, which results in death, 
     serious physical or emotional harm, sexual abuse or 
     exploitation, or an act or failure to act which presents an 
     imminent risk of serious harm.''

                   M. Authorization of Appropriations

     Present law
       Section 114(a) authorizes appropriations for Title I of 
     CAPTA, and specifies how funds are to be allocated among 
     authorized activities. The authorization of appropriations 
     expires at the end of FY 1995.
     House bill
       The House bill has no funding for CAPTA but includes 
     funding for the Child Protection Block Grant; see sections 
     C.1. and C.2., above.
     Senate amendment
       Amends section 114(a) to authorize $100 million in FY1996, 
     and ``such sums as necessary '' in FY1997-FY2000, for title I 
     of CAPTA. Requires that one-third of funds be spent on 
     discretionary activities and, that of funds reserved for 
     discretionary activities, no more than 40 percent shall be 
     for demonstration projects under section 106.
     Conference agreement
       The Senate recedes with an amendment providing for 
     $230,000,000 for FY1996, and such sums as are necessary for 
     FY1997-FY2002, for the new Child and Family Services Block 
     Grant.
       Of the amount appropriated, 12 percent shall be made 
     available to the Secretary to carry out subchapter B, 
     Research, Demonstrations, Training and Technical Assistance. 
     Not less than 40 percent of the amount made available to the 
     Secretary may be used for Demonstration programs.
       Furthermore, 1 percent of the amounts appropriated under 
     this chapter, shall be reserved for the Secretary to make 
     allotments to Indian tribes and tribal organizations. Block 
     grant funds will be allocated among States according to their 
     population of children under age 18.

                        N. Rule of Construction

     Present law
       No provision.
     House bill
       No directly comparable provision, but see section 1.B.4., 
     above.
     Senate amendment
       Establishes a new section of CAPTA that addresses the issue 
     of spiritual treatment of children. The section does not 
     require a parent or legal guardian to provide a child with 
     medical service or treatment, against his or her religious 
     beliefs, nor does it require a State to find, or prohibit a 
     State from finding, abuse or neglect in cases where the 
     parent or guardian relied solely or partially on spiritual 
     means rather than medical treatment, in accordance with their 
     religious beliefs. The sections requires a State to have in 
     place authority under State law to pursue any legal remedies 
     necessary to provide medical care or treatment when such care 
     or treatment is necessary to prevent or remedy serious harm 
     to the child, or to prevent the withholding of medically 
     indicated treatment from children with life-threatening 
     conditions. In general, each State has sole discretion over 
     its case-by-case determinations relating to the exercise of 
     authority of the subsection and is not foreclosed from 
     considering treatment by non-medical or spiritual means. 
     However, in light of special concerns about enforcement of 
     Federal law protecting disabled infants from medical neglect 
     (see e.g., U.S. Commission on Civil Rights, Medical 
     Disabilities), the conference committee retains existing 
     language concerning the Federal oversight with references to 
     cases involving the withholding of medically indicated 
     treatment from disabled infants with life-threatening 
     conditions.
     Conference agreement
       The House recedes.

                         O. Technical Amendment

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Makes a technical amendment to section 1404A of the Victims 
     of Crime Act.
     Conference agreement
       The Senate recedes.


         7. community-based family resource and support grants

     Present law
       Title II of CAPTA authorizes the Secretary to make grants 
     to States for Community-Based Family Resource Programs.
     House bill
       No provision.
     Senate amendment
       Replaces current law with a new Title II to establish 
     Community-Based Family Resource and Support Grants.
     Conference agreement
       The Senate recedes. Community-Based Family Resource and 
     Support Services are an allowable activity under the Child 
     and Family Block Grant funds made available to the States 
     under Subchapter A of this Chapter and demonstration grants 
     funded by the Secretary under Subchapter B of this Chapter.

                        A. Purpose and Authority

     Present law
       No provision.
     House bill
       States could use Child Protection Block Grant allotments 
     for family resource and support services. (See Item 1.C.(5), 
     above.)
     Senate amendment
       Establishes the purpose of Title II as: to support State 
     efforts to develop, operate, expand and enhance a network of 
     community-based, prevention-focused, family resource and 
     support programs. Authorizes the Secretary of HHS to make 
     grants on a formula basis to entities designated by States as 
     ``lead entities.''
     Conference agreement
       The Senate recedes.

                             B. Eligibility

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Establishes eligibility requirements for States to receive 
     grants. States are eligible if:
       (1) the chief executive officer has designated a lead 
     entity that is an existing public, quasi-public or nonprofit 
     private entity, with priority for the State trust fund 
     advisory board or an existing entity that leverages funds for 
     a broad range of child abuse and neglect prevention 
     activities and family resource programs;
       (2) the chief executive officer assures that the lead 
     entity will provide or be responsible for providing a network 
     of community-based family resource and support programs and 
     providing direction and oversight to the network; and
       (3) the chief executive officer assures that the lead 
     entity has a demonstrated commitment to parental 
     participation, a demonstrated ability to work with State and 
     community-based public and private nonprofit organizations, 
     the capacity to provide operational support and training and 
     technical assistance to the statewide network of community-
     based family resource and support programs, and will 
     integrate its efforts with experienced individuals and 
     organizations.
     Conference agreement
       The Senate recedes.

                           C. Amount of Grant

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Reserves 1 percent of appropriations for Title II of CAPTA 
     for allotments to Indian tribes and tribal organizations and 
     migrant programs. Remaining funds are allotted to States 
     equally according to the State ``minor child amount'' and the 
     State ``matchable amount.'' The State minor child amount is 
     based on the State's relative population of children under 
     18, except that no State can receive less than $250,000. The 
     State matching amount is based upon each State's relative 
     amount of funds (including foundation, corporate and other 
     private funding, State revenues and Federal funds) that have 
     been dedicated toward the purposes of this program.
     Conference agreement
       The Senate recedes.

                  D. Existing and Continuation Grants

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Provides that any State or entity that has a grant, 
     contract, or cooperative agreement in effect on the date of 
     enactment, under the Family Resource and Support Program, the 
     Community-Based Family Resource Program, the Family Support 
     Center Program, the Emergency Child Abuse Prevention Grant 
     Program, or the Temporary Child Care and Crisis Nurseries 
     Program, shall continue to be funded under the original terms 
     through the end of the applicable grant cycle. Also allows 
     the Secretary to continue grants for Family Resource and 
     Support Program grantees and other programs funded under 
     CAPTA on a non-competitive basis, subject to available 
     appropriations, grantee performance, and receipt of required 
     reports.
     Conference agreement
       The Senate recedes.

                             E. Application

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Provides that, to receive grants under Title II, States 
     must submit an application 

[[Page H15447]]
     to the Secretary containing information requested by the Secretary, 
     including:
       (1) a description of the lead entity;
       (2) a description of how the network of community-based, 
     prevention-focused, family resource and support programs will 
     operate, and how family resource and support services will be 
     integrated into a continuum of preventive services for 
     children and families;
       (3) an assurance that an inventory of current family 
     resource programs, respite, child abuse and neglect 
     prevention activities, and other family resource programs in 
     the State, and a description of current unmet needs, will be 
     provided;
       (4) a budget for the State's network of community-based, 
     prevention-focused, family resource and support programs that 
     verifies that the State will spend an amount equal to no less 
     than 20 percent of the amount received under this program (in 
     cash, not in-kind);
       (5) an assurance that funds received under this Title will 
     supplement and not supplant other State and local public 
     funds designated for the statewide network of family resource 
     and support programs;
       (6) an assurance that the statewide network of family 
     resource and support programs will maintain cultural 
     diversity, and be culturally competent and socially sensitive 
     and responsive to the needs of families with children with 
     disabilities;
       (7) an assurance that the State has the capacity to ensure 
     meaningful involvement of parents;
       (8) a description of the criteria to be used to develop, or 
     select and fund, individual programs to be part of the 
     statewide network;
       (9) a description of outreach activities that will be used 
     to maximize the participation of racial and ethnic 
     minorities, new immigrant populations, children and adults 
     with disabilities, homeless families and those at risk of 
     homelessness, and members of other under-served or under-
     represented groups;
       (10) a plan for providing operational support, training and 
     technical assistance to family resource and support programs;
       (11) a description of how activities will be evaluated;
       (12) a description of actions that will be taken to 
     advocate changes in State policies, practices, procedures, 
     and regulations to improve the delivery of family resource 
     and support program services to all children and families; 
     and
       (13) an assurance that reports will be submitted to the 
     Secretary on time and containing requested information.
     Conference agreement
       The Senate recedes.

                     F. Local Program Requirements

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Grants will be used for family resource and support 
     programs that:
       (1) assess community assets and needs through a planning 
     process that includes parents, local agencies, and private 
     sector representatives;
       (2) develop a strategy to provide a continuum of 
     preventive, holistic, family-centered services to children 
     and families;
       (3) provide ``core'' services, such as parent education, 
     support and self-help, and leadership services, development 
     screening of children, outreach, referral and follow-up 
     services; ``other core'' services, which can be provided 
     directly or through contracts, including respite services; 
     and access to ``optional'' services, including child care, 
     early childhood development and intervention, services for 
     families with children with disabilities, job readiness, 
     educational services, self-sufficiency and life management 
     skills training, community referral services, and peer 
     counseling;
       (4) develop leadership roles for the meaningful involvement 
     of parents;
       (5) provide leadership in mobilizing local resources to 
     support family resource and support programs; and
       (6) participate with other community-based, prevention-
     focused family resource and support programs in developing 
     and operating the statewide network.
       Priority for local grants shall be given to community-based 
     programs serving low-income communities and those serving 
     young parents or parents with young children, and to family 
     resource and support programs previously funded under the 
     programs consolidated by this Title.
     Conference agreement
       The Senate recedes.

                        G. Performance Measures

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       States receiving grants must submit reports to the 
     Secretary that:
       (1) demonstrate effective development of a statewide 
     network of family resource and support programs;
       (2) supply an inventory and description of services 
     provided to families, including ``core'' and ``optional'' 
     services;
       (3) demonstrate the establishment of new respite and other 
     new family services, and expansion of existing services, to 
     meet identified unmet needs;
       (4) describe number of families served (including families 
     with children with disabilities), and the involvement of a 
     diverse representation of families in designing, operating 
     and evaluating the statewide network of family resource and 
     support programs;
       (5) demonstrate a high level of satisfaction among families 
     that have used family resource and support program services;
       (6) demonstrate innovative funding mechanisms that blend 
     Federal, State, local and private funds, and innovative and 
     interdisciplinary service delivery mechanisms;
       (7) describe the results of a peer review process conducted 
     under the State program; and
       (8) demonstrate an implementation plan to ensure continued 
     leadership of parents in family resource and support 
     programs.
     Conference agreement
       Senate recedes.

    H. National Network for Community-Based Family Resource Programs

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Authorizes the Secretary to allocate such sums as necessary 
     from the amount provided under the State allotment to support 
     State activities related to a peer review process, an 
     information clearinghouse, a yearly symposium, a computerized 
     communication system between State lead entities, and State-
     to-State technical assistance through biannual conferences.
     Conference agreement
       The Senate recedes.

                             I. Definitions

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Defines the following terms: ``children with 
     disabilities,'' ``community referral services,'' ``culturally 
     competent,'' ``family resource and support program,'' 
     ``national network for community-based family resource 
     programs,'' ``outreach services,'' and ``respite services.''
     Conference agreement
       The Senate recedes with an amendment which includes the 
     definitions for Family Resource and Support programs and 
     respite care in the definition section of the Chapter.

                   J. Authorization of Appropriations

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Authorizes $108 million for Title II for each of FY1996-
     FY2000.
     Conference agreement
       The Senate recedes.


                        8. repeals (section 753)

     Present law
       No provision.
     House bill
       Repeals the crisis nurseries portion of Temporary Child 
     Care and Crisis Nurseries; and family support centers under 
     the Stewart B. McKinney Homeless Assistance Act. (See Item 2, 
     above.)
     Senate amendment
       Repeals the Temporary Child Care for Children with 
     Disabilities and Crisis Nurseries Act. Also repeals family 
     support centers under Subtitle F of Title VII of the Stewart 
     B. McKinney Homeless Assistance Act.
     Conference agreement
       This portion of the conference agreement repeals Title II 
     of the Child Abuse Prevention and Treatment and Adoption 
     Reform Act (adoption opportunities), the Abandoned Infants 
     Assistance Act, section 553 of the Howard Metzenbaum 
     Multiethnic Placement Act, family support centers under the 
     Stewart McKinney Homeless Assistance Act, and the Temporary 
     Child Care and Crisis Nurseries Act.
       The agreement also requires the Secretary of HHS, within 6 
     months after enactment, to submit a legislative proposal with 
     any necessary technical and conforming amendments.
       The agreement also includes a transition provision to allow 
     entities with a grant, contract or cooperative agreement in 
     effect under various programs that will be terminated, to 
     continue to receive funds through the end of the applicable 
     grant, contract or agreement cycle.


               9. family violence prevention and services

                     A. State Demonstration Grants

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Amends section 303(e) of the Family Violence Prevention and 
     Services Act, relating to non-Federal matching requirements.
     Conference agreement
       The Senate recedes.

                             B. Allotments

     Present law
       No provision.
     
[[Page H15448]]

     House bill
       No provision.
     Senate amendment
       Amends section 304(a)(1) of Family Violence Prevention and 
     Services Act.
     Conference agreement
       The Senate recedes.

                   C. Authorization of Appropriations

     Present law
       Section 310 of the Family Violence Prevention and Services 
     Act authorizes appropriations for the program and specifies 
     how funds are to be allocated among activities.
     House bill
       No provision.
     Senate amendment
       Amends section 310 of Family Violence Prevention and 
     Services Act to reduce from 80 percent to 70 percent the 
     minimum amount of funds to be used for making grants to 
     States for family violence activities. Also requires the 
     Secretary to use not less than 10 percent of appropriations 
     for grants for State family violence coalitions, and provides 
     that Federal funds made available under this program must be 
     used to supplement and not supplant other Federal, State or 
     local public funds expended for similar activities.
     Conference agreement
       The Senate recedes.


                 10. adoption opportunities; reference

                        A. Findings and Purpose

     Present law
       Section 201 of the adoption opportunities program 
     establishes congressional findings with regard to the child 
     welfare population, and declares the program's purpose to 
     facilitate the elimination of barriers to adoption and to 
     provide permanent homes for children who would benefit from 
     adoption, particularly children with special needs.
     House bill
       Repeals the adoption opportunities program. (See Item 2, 
     above.)
     Senate amendment
       Amends section 201 of the adoption opportunities program to 
     update congressional findings, and delete references to the 
     promotion of model adoption legislation and procedures.
     Conference agreement
       The Senate recedes.

                      B. Information and Services

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Amends section 203 of the adoption opportunities program, 
     to require the Secretary of HHS to conduct studies related to 
     kinship care, recruitment of foster and adoptive parents; and 
     to provide technical assistance and resource and referral 
     information related to termination of parental rights, 
     recruitment and retention of adoptive placements, placement 
     of special needs children, provision of pre- and post-
     placement services, and other assistance to help State and 
     local governments replicate successful adoption-related 
     projects.
     Conference agreement
       The Senate recedes.

                   C. Authorization of Appropriations

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Authorizes $20 million for FY1996, and such sums as 
     necessary for each of FY1997-FY2000, for the adoption 
     opportunities program.
     Conference agreement
       The Senate recedes.


                  11. Abandoned infants assistance act

     Present law
       No provision.
     House bill
       Repeals abandoned infants assistance.
     Senate amendment
       Authorizes $35 million for each of FY1995-FY1996, and such 
     sums as necessary for each of FY1997-FY2000, for abandoned 
     infants assistance.
     Conference agreement
       The Senate recedes.


         12. reauthorization of various programs (section 752)

                  A. Missing Children's Assistance Act

     Present law
       The Missing Children's Assistance Act is authorized through 
     FY1996.
     House bill
       Repeals the Missing Children's Assistance Act (see Item 2, 
     above; however, authorizes appropriations of $7 million for 
     the Attorney General to operate an information clearinghouse 
     and telephone hotline for information on missing children 
     (see Item 1.F, above).
     Senate amendment
       Extends the authorization for the Missing Children's 
     Assistance Act through FY1997; such sums as necessary are 
     authorized. Provides that the Department of Justice shall use 
     no more than 5 percent of appropriations in a fiscal year to 
     evaluate the program.
     Conference agreement
       The House recedes.

                 B. Victims of Child Abuse Act of 1990

     Present law
       Appropriations are authorized through FY1996 for grants to 
     improve investigation and prosecution of child abuse cases, 
     and for children's advocacy centers, under the Victims of 
     Child Abuse Act.
     House bill
       Repeals grants to improve investigation and prosecution of 
     child abuse and neglect cases, and children's advocacy 
     centers, under the Victims of Child Abuse Act. (See Item 2, 
     above.)
     Senate amendment
       Extends the authorization through FY1997, at such sums as 
     necessary, for these two programs under the Victims of Child 
     Abuse Act.
     Conference agreement
       The House recedes.


                         13. adoption expenses

               A. Refundable Credit for Adoption Expenses

     Present law
       No provision.
     House bill
       No provision in H.R. 4, but similar provision in the House-
     passed H.R. 1215.
     Senate amendment
       Amends subpart C of part IV of subchapter A of chapter 1 of 
     the Internal Revenue Code of 1986, to insert a new section 
     35, adoption expenses, that would provide a tax credit for 
     expenditures for adoption fees, court costs, attorney fees, 
     and other expenses directly related to a legal and finalized 
     adoption. This dollar-for-dollar tax credit of up to $5,000 
     per child is reduced for taxpayers with adjusted gross income 
     above $60,000 and is fully phased out at incomes of $100,000. 
     Married couples must file a joint return and the credit is 
     not available for expenditures that contradict State or 
     Federal law. The amendment prohibits double benefits. The 
     amendment will apply to taxable beginning after Dec. 31, 
     1995.
     Conference agreement
       This provision has been moved to the tax portion of the 
     Reconciliation Act of 1995 and, if enacted, will provide a 
     tax credit for expenditures for adoption fees, court costs, 
     attorney fees, and other expenses directly related to a legal 
     and finalized adoption. This dollar-for-dollar tax credit of 
     up to $5,000 per child is reduced for taxpayers with adjusted 
     gross income above $75,000 and is fully phased out at incomes 
     of $115,000. The credit is not available for expenditures 
     that contradict State or Federal law. The amendment prohibits 
     double benefits with respect to State and local credits, 
     except in cases of ``special children''. The amendment will 
     apply to taxable years beginning after Dec. 31, 1995 and 
     allow for carry over of up to five years in the event tax 
     liability does not cover the entire credit during a single 
     year.

                  B. Exclusion of Adoption Assistance

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Amends part III of subchapter B of chapter 1 of the 
     Internal Revenue Code of 1986 by inserting a new section 137, 
     which treats as a tax-free fringe benefit employer-provided 
     adoption assistance benefits, or reimbursement by the 
     employer of qualified adoption expenses, provided the adoptee 
     is physically or mentally incapable of self-care (a ``special 
     needs'' child). Military adoption assistance benefits for 
     these children also would be free of tax. The amendment will 
     apply to taxable years beginning after Dec. 31, 1995.
     Conference agreement
       This provision has been moved to the tax portion of the 
     Reconciliation Act of 1995. This provision treats as a tax-
     free fringe benefit employer-provided adoption assistance 
     benefits of up to $5,000, or reimbursement by the employer of 
     qualified adoption expenses. The amendment will apply to 
     taxable years beginning after Dec. 31, 1995. This benefit is 
     not available if the credit (above) is chosen.

              C. Withdrawal from IRA for Adoption Expenses

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Amends subsection (d) of section 408 of the Internal 
     Revenue Code of 1986 to permit tax-free withdrawals from an 
     individual retirement account (IRA) for qualified adoption 
     expenses.
     Conference agreement
       The Senate recedes.

                         Title VIII. Child Care


                         1. Goals (Section 802)

     Present law
       No provision.
     House bill
       Establishes the following goals as part of the Child Care 
     and Development Block Grant:
       (1) to allow each State maximum flexibility in developing 
     child care programs and policies that best suit the needs of 
     children and parents within such State;
       (2) to promote parental choice to empower working parents 
     to make their own decision 

[[Page H15449]]
     on the child care that best suits their family's needs;
       (3) to encourage States to provide consumer education 
     information to help parents make informed choices about child 
     care;
       (4) to assist States to provide child care to parents 
     trying to achieve independence from public assistance; and
       (5) to assist States in implementing the health, safety, 
     licensing and registration standards established in State 
     regulation.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes.


            2. authorization of appropriations (section 803)

     Present law
       The authorization of appropriations expires at the end of 
     FY1995. Appropriations in FY1995 are $935 million; such sums 
     as necessary are authorized. (Sec. 658B of the CCDBG Act.)
       (Note: In addition, entitlement funds are available for 
     child care under the AFDC Child Care, Transitional Child 
     Care, and At-Risk Child Care programs authorized by Title IV-
     A of the Social Security Act.)
     House bill
       Authorizes appropriations of $2,093 million for each of 
     FY1996-2000.
       (Note: Title I of the House bill repeals the AFDC Child 
     Care, Transitional Child Care, and At-Risk Child Care 
     programs.)
     Senate amendment
       Authorizes appropriations as follows: $1 billion for 
     FY1996, and such sums as may be necessary for each of FY1997-
     2000.
       (Note: Additional funds are provided for child care under 
     Title I of the Senate amendment, to replace the current AFDC 
     Child Care, Transitional Child Care, and At-Risk Child Care 
     programs--$8 billion over 5 years in direct spending.)
     Conference agreement
       The conference agreement establishes a single child care 
     block grant and State administrative system by adding 
     mandatory funds to the existing Child Care and Development 
     Block Grant (CCDBG). Specifically, one discretionary and two 
     mandatory streams of funding will be consolidated in a 
     reconstituted CCDBG. The effective date of this title will be 
     October 1, 1996, except for the authorization of 
     discretionary funds, which will be effective upon date of 
     enactment.
       The child care funds made available in the Child Care Block 
     Grant total $18 billion over 7 years; $11 billion in 
     mandatory funds ($1.3 billion in FY1997, $1.4 billion in 
     FY1998, $1.5 billion FY1999, $1.7 billion in FY2000, $1.9 
     billion in FY2001, and $2.05 in FY2002) combined with $1 
     billion each year (FY1996-FY2002) in discretionary funds.
       Each State will receive the amount of funds it received for 
     child care under all of the entitlement programs currently 
     under title IV of the Social Security Act (AFDC Child Care, 
     transitional Child Care, and At-Risk Child Care) in the 1994 
     fiscal year, or the average amount of funds received for 
     those programs from FY1992 through FY1994, which ever is 
     greater. These programs, combined, provide approximately $990 
     million in mandatory child care funding for the States.
       The mandatory funds remaining after the State allocations 
     based on the child care allotments from previous years will 
     be distributed among the States based on the formula 
     currently used in the title IV-A At-Risk Child Care grant. 
     Specifically, funds will be distributed based on the 
     proportion of the number of children under the age of 13 
     residing in the State to the number of all of the nation's 
     children under the age of 13. States must provide matching 
     funds in the amount of the FY1994 State Medicaid rate to 
     receive these funds.
       If a State does not use its full portion of funds, the 
     remaining portion will be redistributed to the States 
     according to section 402(i) (as such section was in effect 
     before October 1, 1995).
       Discretionary funds appropriated for the Child Care Block 
     Grant will be distributed to States based on the current 
     formula for the Child Care and Development Block Grant. This 
     formula utilizes the number of children in low income 
     families and the State per capita income as criteria for the 
     distribution of funds to States. As in current law governing 
     the CCDBG, there is no requirement for the State to provide 
     matching funds to receive an allotment from the discretionary 
     funds appropriated for the Child Care Block Grant (see Table 
     4 for State allotments over the 7 years of the Block Grant).


 Table 4--Estimated total 7-year funding by State under the child care 
                              block grant

                       [In thousands of dollars]

State:                                                           Amount
  Alabama.......................................................328,208
  Alaska.........................................................45,728
  Arizona.......................................................305,507
  Arkansas......................................................146,212
  California..................................................2,005,717
  Colorado......................................................202,491
  Connecticut...................................................203,659
  Delaware.......................................................54,264
  District of Columbia...........................................45,711
  Florida.......................................................789,027
  Georgia.......................................................579,921
  Hawaii.........................................................66,313
  Idaho..........................................................75,410
  Illinois......................................................680,274
  Indiana.......................................................359,127
  Iowa..........................................................151,901
  Kansas........................................................171,492
  Kentucky......................................................301,154
  Louisiana.....................................................337,574
  Maine..........................................................66,441
  Maryland......................................................331,868
  Massachusetts.................................................447,645
  Michigan......................................................522,624
  Minnesota.....................................................321,275
  Mississippi...................................................197,315
  Missouri......................................................352,011
  Montana........................................................56,602
  Nebraska......................................................144,930
  Nevada.........................................................66,512
  New Hampshire..................................................63,772
  New Jersey....................................................412,380
  New Mexico....................................................156,887
  New York....................................................1,110,049
  North Carolina................................................732,212
  North Dakota...................................................44,315
  Ohio..........................................................781,424
  Oklahoma......................................................307,398
  Oregon........................................................247,540
  Pennsylvania..................................................717,854
  Rhode Island...................................................73,756
  South Carolina................................................229,794
  South Dakota...................................................47,719
  Tennessee.....................................................452,486
  Texas.......................................................1,311,075
  Utah..........................................................194,779
  Vermont........................................................49,670
  Virginia......................................................346,339
  Washington....................................................458,049
  West Virginia.................................................140,340
  Wisconsin.....................................................310,981
  Wyoming........................................................40,327
  Puerto Rico \1\...............................................190,438
  Guam \1\.......................................................16,829
  Virgin Islands \1\.............................................11,807
  Northern Marianas \1\...........................................6,363
  Indian Set-Aside..............................................188,500
                                                       ________________

    Total....................................................18,000,000

\1\ Discretionary amounts for the territories only.

Source: Table prepared by CRS. Mandatory child care allocations based 
on the federal share of expenditures in title IV-A programs and Census 
Bureau estimates (FY1996) and projections (FY1997-2002) of the 
Population Under 13. Discretionary child care allocations based on DHHS 
estimates, 2/95. FY1996 amounts for mandatory child care assume: (1) 
CBO baseline amounts for national totals; and (2) a distribution among 
the States based on the historical distribution of mandatory funds 
(average of FY1992-1994 or FY1994 whichever is higher).


                      3. Lead agency (section 804)

     Present law
       Requires the chief executive officer of a State to 
     designate an appropriate State agency to act as the lead 
     agency in administering financial assistance under the Act. 
     (Sec. 658D of the CCDBG Act)
     House bill
       Changes the term ``agency'' to ``entity.''
     Senate amendment
       Allows the State lead agency to administer financial 
     assistance received under the Act through other 
     ``governmental or nongovernmental'' agencies (instead of 
     other ``State'' agencies); requires that ``sufficient time 
     and Statewide distribution of the notice'' be given of the 
     public hearing on development of the State plan; and strikes 
     language on issues that may be considered during consultation 
     with local governments on development of the State plan.
     Conference agreement
       The House recedes.


                 4. Application and plan (section 805)

     Present law
       Requires States to prepare and submit to the Secretary an 
     application that includes a State plan. The initial plan must 
     cover a 3-year period, and subsequent plans must cover 2-year 
     periods. Required contents of the plan include designation of 
     a lead agency and policies and procedures regarding parental 
     choice of providers, unlimited parental access, parental 
     complaints, consumer education, compliance with State and 
     local regulatory requirements, establishment of and 
     compliance with health and safety requirements, review of 
     State licensing and regulatory requirements, and 
     supplementation.
       In addition, the State plan must provide that funds will be 
     used for child care services, and that 25 percent of funds 
     will be reserved for activities to improve the quality of 
     child care and to increase the availability of early 
     childhood development and before- and after-school child 
     care. (Sec. 658E of the CCDBG Act)
       Further, State plans must assure that payment rates will be 
     adequate to provide eligible children equal access to child 
     care as compared with children whose families are not 
     eligible for subsidies, and must assure that the State will 
     establish and periodically revise a sliding fee scale that 
     provides for cost sharing by families that receive child care 
     subsidies.
     House bill
       Requires the State plan to cover a 2-year period. Requires 
     States to provide a detailed description of procedures to be 
     used to assure parental choice of providers. Changes 
     ``provide assurances'' to ``certify'' that procedures are in 
     effect within the State to ensure unlimited parental access 
     to children and parental choice; also requires that the State 
     plan provide a detailed description of such procedures. 
     Changes ``provide assurances'' to ``certify'' that the State 
     maintains a record of parental complaints, and requires the 
     State to provide a detailed description of 

[[Page H15450]]
     how such a record is maintained and made available. Changes the 
     consumer education part of the State plan to require 
     assurances that the State will collect and disseminate 
     consumer education information. Requires that the State 
     certify that providers comply with State and local health, 
     safety and licensing or regulatory requirements and provide a 
     detailed description of such requirements and how they are 
     enforced. Eliminates current law provisions requiring 
     establishment of and compliance with health and safety 
     requirements, review of State licensing and regulatory 
     requirements, notification to HHS when standards are reduced, 
     and supplementation. Eliminates the requirement that 
     unlicensed providers be registered.
       Adds a requirement that a summary of the facts relied upon 
     by the State to determine that payment rates are sufficient 
     to ensure equal access to child care is included in the State 
     plan. Eliminates the assurance that the State will establish 
     a sliding fee scale. Also provides that funds, other than 
     amounts transferred under section 658T (see Item 14 below), 
     will be used for child care services, activities to improve 
     the quality and availability of such services, and any other 
     activity that the State deems appropriated to realize the 
     goals specified above (see Item 1). Deletes the current law 
     requirement that States reserve 25 percent of funds for 
     activities to improve the quality of child care and to 
     increase availability of early childhood development and 
     before- and after-school care.
       Requires States to spend no more than 5 percent on 
     administrative costs.
     Senate amendment
       Requires the State plan to cover a 2-year period. Replaces 
     the requirement that providers not subject to licensing or 
     regulation be registered with the State, with a requirement 
     that the State implement mechanisms to ensure proper payment 
     to providers. Requires the Secretary to develop minimum 
     standards for Indian tribes and tribal organizations 
     receiving assistance under the Act, in lieu of State or local 
     licensing or regulatory requirements. Eliminates provisions 
     related to reduction in standards and reviews of State 
     licensing and regulatory requirements.
       Requires the State plan to describe the manner in which 
     services will be provided to the working poor. Reserves 15 
     percent of each State's allotment for activities to improve 
     quality of child care, instead of 25 percent for both quality 
     improvement and before- and after-school child care services.
       Requires States to spend no more than 5 percent on 
     administrative costs, not including direct service costs. 
     Administrative costs shall not include direct service costs.
     Conference agreement
       The Senate recedes, with a modification that the States 
     must certify that they have licensing standards for child 
     care. The Secretary must develop minimum standards for Indian 
     tribes and tribal organizations receiving assistance under 
     this Act, in lieu of State or local licensing or regulatory 
     requirements. At least 70 percent of the mandatory funding 
     must be used to provide child care for children in families 
     who are receiving welfare, working their way off welfare, or 
     at risk of becoming welfare dependent. A substantial portion 
     of the discretionary funding for child care authorized under 
     this Act is intended to be used for low-income working 
     families who are not working their way off welfare or at risk 
     of becoming welfare dependent. The State plan must 
     demonstrate how the State is meeting the specific needs of 
     each of these populations.


            5. Limitation on State Allotments (Section 806)

     Present law
       Prohibits the use of funds for purchase or improvement of 
     land or buildings, except in the case of sectarian agencies 
     or organizations that need to make renovations or repairs in 
     order to comply with specific health and safety requirements 
     that States are required to establish. (Sec. 658F of the 
     CCDBG Act)
     House bill
       Amends section 658F to make a conforming amendment 
     referring to the elimination of specific health and safety 
     requirements.
     Senate amendment
       No provision (maintains current law).
     Conference agreement
       The Senate recedes, with a modification that this Act 
     prohibit the use of funds for purchase or improvement of land 
     or buildings except for Indian tribes or tribal 
     organizations. Indian tribes and tribal organizations may use 
     funds for construction or renovation of facilities, upon the 
     request by the tribe or tribal organization and subject to 
     the approval by the Secretary.


    6. Activities to Improve the Quality of Child Care (Section 807)

     Present law
       As stated above, 25 percent of State allotments must be 
     reserved for activities to improve child care quality and to 
     increase the availability of early childhood development and 
     before- and after-school child care (see Item 1.D above). 
     Section 658G specifies how these funds are to be used. Of 
     reserved funds, States are required to use no less than 20 
     percent for activities to improve the quality of care, 
     including resource and referral programs, grants or loans to 
     assist providers in meeting State and local standards, 
     monitoring of compliance with licensing and regulatory 
     requirements, training of child care personnel, and improving 
     compensation for child care personnel. (Sec. 658G of the 
     CCDBG Act)
     House bill
       Repeals the requirement that 25 percent of funds be set 
     aside for quality improvement activities (see Item 5 above). 
     Repeals section 658G regarding the use of these set-aside 
     funds.
     Senate amendment
       As stated above, reduces quality improvement set-aside to 
     15 percent (see Item 5 above). Amends section 658G to require 
     States to use their quality improvement set-aside for 
     resource and referral activities, 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,'' and 
     for one or more ``other activities,'' which include those 
     listed in the current section 658G, plus activities to 
     increase the availability of before- and after-school care, 
     infant care, and child care between the hours of 5:00 p.m. 
     and 8:00 a.m.
       Adds new language to prohibit States from discriminating 
     against providers that wish to participate in resource and 
     referral systems even if they are exempt from State licensing 
     requirements as long as they are operating legally within the 
     State.
     Conference agreement
       The Senate recedes, with a modification that States retain 
     at least a 3 percent set-aside of the total mandatory and 
     discretionary funding received for child care under this Act 
     for activities designed to provide comprehensive consumer 
     education to parents and the public, activities that increase 
     parental choice, and activities designed to improve the 
     quality and availability of child care, such as resource and 
     referral services.
       The House recedes, with a modification to limit the amount 
     of total child care funds made available under this Act of 
     administrative costs to 3 percent. Administrative cost shall 
     not include direct service costs.


   7. early childhood development and before- and after-school care 
                       requirement (section 808)

     Present law
       Requires States to use no less than 75 percent of funds 
     reserved for quality improvement for activities to expand and 
     conduct early childhood development programs and before- and 
     after-school child care. (Sec. 658H of the CCDBG Act)
     House bill
       Repeals section 658H.
     Senate amendment
       Repeals section 658H.
     Conference agreement
       The House and Senate concur.


            8. administration and enforcement (section 809)

     Present law
       Requires the Secretary of Health and Human Services (HHS) 
     to coordinate HHS and other Federal child care activities, to 
     collect and publish a list of State child care standards 
     every 3 years, and to provide technical assistance to States. 
     Requires the Secretary to review, monitor, and enforce 
     compliance with the Act and the State plan by withholding 
     payments and imposing additional sanctions in certain cases. 
     (Sec. 658I of the CCDBG Act)
     House bill
       Deletes the requirement that the Secretary of HHS collect 
     and publish a list of child care standards every 3 years. 
     Maintains current law for repayment.
     Senate amendment
       Strikes the current law requirement that the Secretary 
     withhold further payments to a State in case of a finding of 
     noncompliance until the noncompliance is corrected. Instead, 
     authorizes the Secretary, in such cases, to impose additional 
     program requirements on the State, such as a requirement that 
     the State reimburse the Secretary for any improperly spent 
     funds, or the Secretary may deduct from the administrative 
     portion of the State's subsequent allotment an amount equal 
     to or less than the misspent funds, or a combination of such 
     options. The amendment also strikes sections related to 
     additional sanctions and notice of such additional sanctions.
     Conference agreement
       The House recedes, with a modification that the Secretary 
     may not impose additional program requirements on the State 
     for improperly spent funds, and that the Secretary shall 
     deduct misspent funds from subsequent State administrative 
     allotments.


                       9. Payments (Section 810)

     Present law
       Provides that payments received by a State for a fiscal 
     year may be expended in that fiscal year or in the succeeding 
     3 fiscal years. (ec. 658J of the CCDBG Act)
     House bill
       Provides that payments received by a State for a fiscal 
     year may be obligated in the fiscal year received or the 
     succeeding fiscal year, instead of expended in the fiscal 
     year received or the succeeding 3 fiscal years.
     Senate amendment
       No provision (maintains current law).
     
[[Page H15451]]

     Conference agreement
       The Senate recedes.


               10. Annual Report and Audits (Section 811)

     Present law
       Requires each State to prepare and submit to the Secretary 
     every year a report: specifying how funds are used; 
     presenting data on the manner in which the child care needs 
     of families in the State are being fulfilled, including 
     information on the number of children served, child care 
     programs in the State, compensation provided to child care 
     staff, and activities to encourage public-private 
     partnerships in child care; describing the extent to which 
     affordability and availability of child care has increased; 
     summarizing findings from a review of State licensing and 
     regulatory requirements, if applicable; explaining any action 
     taken by the State to reduce standards, if applicable; and 
     describing standards and health and safety requirements 
     applied to child care providers in the State, including a 
     description of efforts to improve the quality of child care. 
     (Sec. 658K of the CCDBG Act)
     House bill
       Changes the title of the section from ``Annual Report and 
     Audits'' to ``Annual Report, Evaluation Plans, and Audits.'' 
     Changes required data elements in annual reports to include:
       (1) the number and ages of children being assisted with 
     funds provided under this subchapter;
       (2) with respect to the families of such children:
       --the number of other children in such families;
       --the number of such families that include only 1 parent;
       --the number of such families that include both parents;
       --the ages of the mothers of such children;
       --the ages of the fathers of such children;
       --the sources of the economic resources of such families, 
     including the amount of such resources obtained from (and 
     separately identified as being from)--
       a. employment, including self-employment;
       b. assistance received under part A of title IV of the 
     Social Security Act (SSA);
       c. part B of title IV of the SSA;
       d. the Child Nutrition Act of 1966;
       e. the National School Lunch Act;
       f. assistance received under title XVI of the SSA;
       g. assistance received under title XVI of the SSA;
       h. assistance received under title XIX of the SSA;
       i. assistance received under title XX of the SSA; and
       j. any other source of economic resources the Secretary 
     determines to be appropriate;
       (3) the number of such providers separately identified with 
     respect to each type of child care provider specified in 
     section 658P(5) that provided child care services obtained 
     with assistance provided under this subchapter;
       (4) the cost of child care services and the portion of such 
     cost paid with assistance from this Act;
       (5) the manner in which consumer education information was 
     provided to parents and the number of parents to whom such 
     information was provided;
       (6) the number of parental complaints about child care that 
     were found to have merit and a description of corrective 
     actions taken by the State; and
       (7) information on programs to which funds were transferred 
     under section 648T (see item 15, below).
       States are also required to present evidence demonstrating 
     that they have state requirements designed to protect the 
     health and safety of children.
       Deletes current report requirements on: (1) increasing the 
     affordability and availability of child care; (2) reviewing 
     findings on State licensing and regulatory requirements; and 
     (3) reducing standards.
       Requires States to include an evaluation plan in their 
     first annual report due after enactment and every 2 years 
     thereafter, and to include the results of such evaluation in 
     the second annual report due after enactment and every 2 
     years thereafter. The plan must include an evaluation 
     regarding the extent to which the State has realized the 
     following goals:
       (1) promoting parental choice to make their own decisions 
     on the child care that best suits their family's needs;
       (2) providing consumer education information to help 
     parents make informed choices about child care;
       (3) providing child care to parents trying to achieve 
     independence from public assistance; and
       (4) implementing the health, safety, licensing, and 
     registration standards established in State regulations.
     Senate amendment
       Requires States to submit reports every 2 years, rather 
     than every year, with the first report due no later than 
     December 31, 1996. Requires that States include information 
     on the type of Federal child care and preschool programs 
     serving children in the State, and requires that States 
     describe the extent and manner to which resource and referral 
     activities are being carried out by the State. Strikes the 
     current requirement for information on the type and number of 
     child care programs, providers, caregivers and support 
     personnel in the State, and strikes the provision related to 
     review findings of State licensing and regulatory 
     requirements.
     Conference agreement
       The Senate recedes, with a modification that the State 
     prepare and submit a data report to the Secretary every six 
     months, and that the report include the following information 
     on each family receiving assistance:
       (1) family income;
       (2) county of residence;
       (3) the sex, race, age of children receiving benefits;
       (4) whether the family includes only one parent;
       (5) the sources of family income, including the amount 
     obtained from (and separately identified as being from): (a) 
     employment, including self-employment; (b) Part A cash 
     assistance or other assistance; (c) housing assistance; (d) 
     food stamps; and (e) other;
       (6) the number of months the family has received benefits;
       (7) the type of care in which the child was enrolled 
     (family day care, center, own home);
       (8) whether the provider was a relative;
       (9) the cost of care; and
       (10) the average hours per week of care.
       Annually, the State must submit the following aggregate 
     data:
       (1) the number of providers separately identified in accord 
     with each type of provider specified in section 658P(5) that 
     received funding under this subchapter;
       (2) the monthly cost of child care services and the portion 
     of such cost paid with assistance from this Act by type of 
     care;
       (3) the number and total amount of payments by the State in 
     vouchers, contracts, cash, and disregards from public benefit 
     programs by type of care;
       (4) the manner in which consumer education information was 
     provided; and
       (5) total number (unduplicated) of children and families 
     served.
       The House recedes on the requirement that States include an 
     evaluation plan in their reports to the Secretary.
       Conferees agree to delete current report requirements on: 
     (1) increasing the affordability and availability of child 
     care; (2) reviewing findings on State licensing and 
     regulatory requirements; and (3) reducing standards.


               11. report by the secretary (section 812)

     Present law
       Requires the Secretary to prepare and submit an annual 
     report, summarizing and analyzing information provided by 
     States, to the House Education and Labor Committee and the 
     Senate Labor and Human Resources Committee. This report must 
     contain an assessment and, where appropriate, recommendations 
     to Congress regarding efforts that should be taken to improve 
     access of the public to quality and affordable child care. 
     (Sec. 658L of the CCDBG Act)
     House bill
       Revises the Secretary's report to become a biennial report 
     to the Speaker of the House and the President pro tempore of 
     the Senate.
     Senate amendment
       Requires the Secretary to prepare and submit biennial 
     reports, rather than annual, with the first report due no 
     later than July 31, 1997; and replaces the reference to the 
     House Education and Labor Committee with the House Economic 
     and Educational Opportunities Committee.
     Conference agreement
       The House recedes.


                      12. allotments (section 813)

     Present law
       Requires the Secretary to reserve one-half of 1 percent of 
     appropriations for payment to Guam, American Samoa, the 
     Virgin Islands, the Northern Marianas and the Trust Territory 
     of the Pacific Islands. The Secretary also must reserve no 
     more than 3 percent for payment to Indian tribes and tribal 
     organizations with approved applications. Remaining funds are 
     allocated to the States based on the States' proportion of 
     children under age 5 and the number of children receiving 
     free or reduced-price school lunches, as well as the States' 
     per capita income. Any portion of a State's reallotment that 
     the Secretary determines is not needed by the State to carry 
     out its plan for the allotment period, must be reallotted by 
     the Secretary to the other States in the same proportion as 
     the original allotments. (Sec. 658O of the CCDBG Act)
     House bill
       Maintains the current law set-asides for the Territories 
     and Indian tribes and tribal organizations, except that the 
     Trust Territory of the Pacific Islands is deleted from the 
     set-aside for Territories. Allots remaining funds to States 
     as follows: each State will receive an amount based on its 
     relative share of the aggregate amount of Federal funds 
     received by the State in FY1994 under the Child Care and 
     Development Block Grant Act, and under child care programs 
     for AFDC recipients and former AFDC recipients and the At-
     Risk Child Care program under Title IV-A of the Social 
     Security Act. Eliminates reallotment provisions.
     Senate amendment
       Maintains current law allotment procedures. Amends section 
     658O(c), related to payments for the benefit of Indian 
     children, to add new provisions allowing the use of funds by 
     Indian tribes or tribal organizations for construction or 
     renovation of facilities, upon request by the tribe or tribal 
     organization and subject to approval by the Secretary. The 
     Secretary may not permit a 

[[Page H15452]]
     tribe or tribal organization to use funds for construction or 
     renovation if such use will result in a decrease in the level 
     of child care services. The Secretary is also allowed to 
     reallot to other tribes any tribal allotments that are not 
     expended, which is similar to what happens with unused State 
     allotments.
     Conference agreement
       The Senate recedes, with a modification that the set-aside 
     for Indian tribes and tribal organizations and Native 
     Hawaiian Organizations is 1 percent of the total funds for 
     child care made available under this Act. Any portion of a 
     State's allotment that the Secretary determines is not needed 
     by the State to carry out its plan for the allotment period 
     must be realloted by the Secretary to the other States in the 
     same proportion as the original allotments. The Secretary is 
     also allowed to reallot to other tribes any tribal allotments 
     that are expended, which is similar to the process for 
     reallotment to States.


                     13. Definitions (Section 814)

     Present law
       Provides definitions of the following terms: caregiver, 
     child care certificate, elementary school, eligible child, 
     eligible child care provider, family child care provider, 
     Indian tribe, lead agency, parent, secondary school, 
     Secretary, sliding fee scale, State, and tribal organization. 
     (Sec. 658P of the CCDBG Act)
     House bill
       Includes definitions for lead entity and child care 
     services, and strikes definitions for elementary school, 
     secondary school, and sliding fee scale.
     Senate amendment
       Revises the definition of eligible child to one whose 
     family income does not exceed 100 percent of the State 
     median, instead of 75 percent.
       Adds the following as an allowable use of a child care 
     certificate: ``as a deposit for child care services if such a 
     deposit is required of other children being cared for by the 
     provider.''
       Revises the definition of relative child care provider by: 
     adding great grandchild and sibling (if the provider lives in 
     a separate residence) to the list of eligible children; 
     striking the requirement that such providers be registered; 
     and requiring such providers to comply with any 
     ``applicable'' requirements govern child care provided by a 
     relative.
     Conference agreement
       The House recedes, with a modification that strikes the 
     definition for elementary and secondary school and revises 
     the definition of eligible child to one whose family income 
     does not exceed 85 percent of the State median income.


                         14. Transfer of Funds

     Present law
       No provision.
     House Bill
       Adds a new section 658T to the CCDBG Act, allowing a State 
     to transfer no more than 20 percent of CCDBG funds to one or 
     more of the following programs:
       1. Part A of Title IV of the Social Security Act;
       2. Part B of Title IV of the Social Security Act;
       3. Child Nutrition Act of 1966;
       4. National School Lunch Act; and
       5. Title XX of the Social Security Act.
       Transfer funds would be subject to the rules of the program 
     to which they are transferred.
     Senate amendment
       States can transfer up to 30 percent of their cash 
     assistance block grant (title IV-A) into the CCDBG.
     Conference agreement
       The House recedes; no funds can be transferred out of the 
     Child Care and Development Block Grant (although funds could 
     be transferred into the CCDBG from other block grants).


                   15. Application to Other Programs

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Adds a new section 658T to the CCDBG Act, that requires 
     States that use any Federal funds for child care services to 
     ensure that such services meet the requirements, standards 
     and criteria, with the exception of the 15 percent quality 
     set-aside, of the CCDBG and any regulations issued under the 
     CCDBG. These funds must be administered through a uniform 
     State plan and, to the maximum extent practicable, shall be 
     transferred to the lead agency and integrated into the CCDBG 
     program.
     Conference agreement
       The Senate recedes (no provision).


   16. Repeals and Technical and Conforming Amendments (Section 815)

     Present law
       Not applicable.
     House bill
       Repeals the following programs:
       (1) Child Development Associate (CDA) Scholarship 
     Assistance;
       (2) State Dependent Care Development Grants;
       (3) Programs of National Significance under Title X of the 
     Elementary and Secondary Education Assistance Act of 1965 
     (child care related to Cultural Partnerships for At-Risk 
     Children and Youth, and Urban and Rural Education 
     Assistance); and
       (4) Native-Hawaiian Family-Based Education Centers.
       (Note: Title I of the House bill also repeals child care 
     assistance provided under current law by Title IV-A of the 
     Social Security Act. This assistance is provided under 3 
     programs known as AFDC Child Care, Transitional Child Care, 
     and At-Risk Child Care.)
     Senate amendment
       Repeals CDA Scholarship Assistance and State Dependent Care 
     Development Grants.
       Requires the Secretary of HHS, after consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, to prepare and submit to 
     Congress, within 6 months after enactment, a legislative 
     proposal containing technical and conforming amendments that 
     reflect the amendments and repeals made by this Act.
       (Note: Title I of the Senate amendment also earmarks and 
     provides additional funds for child care, to replace the AFDC 
     Child Care, Transitional Child Care, and At-Risk Child Care 
     programs.)
     Conference agreement
       The Senate recedes.

                       Title IX. Child Nutrition


                     1. child nutrition act of 1966

     Present law
       Authorizes the Special Supplemental Nutrition Program for 
     Women, Infants, and Children (WIC), the School Breakfast 
     program, the Special Milk program, assistance to States for 
     child nutrition administrative expenses and nutrition 
     education and training, and school breakfast assistance for 
     Defense Department overseas dependents' schools.
       The WIC program provides specific nutritious foods to 
     lower-income pregnant, postpartum, and breastfeeding women, 
     and infants and children (up to age 5). Recipients' family 
     income must be below 185% of Federal poverty guidelines, and 
     they must be judged at nutritional risk. Federal funds, set 
     by appropriation levels, are made available to State health 
     agencies under a formula. States then provide funds to local 
     health agencies, which are responsible for day-to-day 
     operations. Funds also are used for food, nutrition 
     assessments and counselling, referrals to other programs, 
     breastfeeding promotion, and a farmers' market program. [Sec. 
     17 and 21 of the Child Nutrition Act]
       Under the School Breakfast program, schools choosing to 
     participate in the program receive per-meal Federal cash 
     subsidies for all breakfasts they serve that meet Federal 
     nutrition standards. Subsidies are indexed annually for 
     inflation and differ depending on whether the meal is served 
     free (to children from families with income below 130% of 
     poverty), at a reduced price (to children with family income 
     between 130% and 185% of poverty), or at ``full price'' (so-
     called ``paid'' meals for those with family income above 185% 
     of poverty or who do not apply for free or reduced-price 
     meals). Schools with high proportions of lower-income 
     students get larger per-meal subsidies, and special grants 
     are provided to assist in paying start-up and expansion 
     costs. [Sec. 4 of the Child Nutrition Act]
       Under the Special Milk program, schools and institutions 
     not otherwise participating in a meal service program (and 
     schools with split sessions for kindergartners) provide milk 
     to all children at a low price or free, and each half-pint 
     served is federally subsidized at a different rate--depending 
     on whether it is served free or not. Provision of free milk 
     is not required. [Sec. 3 of the Child Nutrition Act]
       Under the State administrative expense assistance program, 
     grants are made to States to help cover administrative costs 
     associated with child nutrition programs. The amount 
     available each year is 1.5% of Federal cash payments for 
     School Lunch, School Breakfast, Child and Adult Care Food, 
     and Special Milk programs. [Sec. 7 of the Child Nutrition 
     Act]
       For nutrition education and training, States are provided 
     with Federal funds for training school food service personnel 
     in food service management, instructing teachers in nutrition 
     education, and teaching children about nutrition. [Sec. 19 of 
     the Child Nutrition Act]
       Social provisions are made for Federal assistance for 
     school breakfast programs in Defense Department overseas 
     dependents' schools. [Sec. 20 of the Child Nutrition Act]
     House bill
       Retains the designation of the Act as the Child Nutrition 
     Act of 1966 and replaces the Act's current provisions with 
     authorization for a Family Nutrition Block Grant Program.
     Senate amendment
       No comparable provisions.
     Conference agreement
       House recedes with an amendment to streamline provisions in 
     the Child Nutrition Act of 1966. The following changes are 
     intended to streamline the operation of programs under the 
     Child Nutrition Act.
       1. Strike Sec. 4(e)(1)(B) to eliminate training and 
     technical assistance in food preparation. [Sec. 923]
       2. Strike Sec. 4(f) and 4(g) to eliminate school breakfast 
     expansion and start-up provisions. [Sec. 923]
       3. Strike Sec. 7(e) to eliminate provision allowing States 
     to use a portion of SAE funds for commodity distribution 
     administration. [Sec. 924]
     
[[Page H15453]]

       4. Revise Sec. 7(f) to provide that, after submission of an 
     initial State plan, States are only required to submit 
     substantive changes for approval. [Sec. 924]
       5. Strike Sec. 7(h) to eliminate requirement on State to 
     participate in Agricultural studies. [Sec. 924]
       6. Strike Sec. 10(b)(2), Sec 10(b)(3) and Sec. 10(b)(4) to 
     eliminate provisions on model competitive food language. 
     [Sec. 925]
       7. Change the provision that allows the Secretary to 
     establish regulations providing for transfers of funds to 
     require such regulations. This language is intended to 
     require the Secretary to issue regulations that allow the 
     transfer of funds on the basis of an approved State plan. It 
     is not intended to require the Secretary to allow all States 
     to transfer funds. [Sec. 925]
       8. Strike Sec. 11(a) to eliminate the bar against States 
     imposing curriculum or instruction requirements on school. 
     [Sec. 926]
       9. Strike Sec. 15(3)(C) to eliminate an out-of-date 
     provision referring to Puerto Rico's special child care food 
     program's use of schools. [Sec. 927]
       10. Strike Sec. 16(a) to eliminate the requirement that 
     accounts and records be available ``at all times'' and insert 
     ``at any reasonable time.'' [Sec. 928]
       11. Revise Sec. 17(b)(15)(iii) to add limit on temporary 
     residence of ``90 days'' to the definition of homeless. [Sec. 
     929(a)]
       12. Strike 17(b)(15)(C) to eliminate the requirement for 
     the provision of drug abuse and education materials from the 
     definition of ``Drug Abuse Education.'' [Sec. 929(a)]
       13. Strike Sec. 17(c)(5) to eliminate the Secretary's 
     promotion of WIC. [Sec. 929(b)]
       14. Revise Sec. 17(d)(2)(A)(ii)(II) to make a conforming 
     change with respect to the reference to AFDC.
       15. Strike Sec. 17(d)(4) to eliminate provision for reports 
     by the Secretary and the National Advisory Council. [Sec. 
     929(c)]
       16. Revise Sec. 17(e)(1) to ``allow'' agencies to provide 
     for drug abuse education. [Sec. 929(d)]
       17. Revise Sec. 17(e)(2) to eliminate provision regarding 
     evaluation of nutrition education/breastfeeding promotion. 
     [Sec. 929(d)]
       18. Revise Sec. 17(e)(4) to provide that States ``may'' 
     provide local agencies with information materials on other 
     programs for which WIC recipients may be eligible. [Sec. 
     929(d)]
       19. Revise Sec. 17(e)(5) to provide that local agencies 
     ``may'' make available information on substance abuse 
     counseling and treatment. [Sec. 929(d)]
       20. Strike Sec. 17(e)(6) to eliminate provision for 
     ``master file'' information requirement for provision of 
     nutrition education. [Sec. 929(d)]
       21. Revise Sec. 17(f)(1)(A) to require that only 
     substantive changes in the State plan be submitted annually. 
     [Sec. 929(e)]
       22. Revise Sec. 17(f)(1)(C)(iii) to provide that State 
     agencies are required to submit a plan to coordinate with 
     other services or programs that might benefit WIC 
     applicants.. [Sec. 929(e)]
       23. Revise Sec. 17(f)(1)(C)(vi) to require State agencies 
     to submit a plan to improve access to the program for 
     participants and prospective applicants who are employed, or 
     who reside in rural areas. [Sec. 929(e)]
       24. Strike Sec. 17(f)(1)(C)(vii) to eliminate requirement 
     that State agencies submit plans to provide services to those 
     most in need. [Sec. 929(e)]
       25. Strike Sec. 17(f)(1)(C)(ix) to eliminate requirement 
     that State agencies submit plans to provide services to those 
     in prison. [Sec. 929(e)]
       26. Strike Sec. 17(f)(1)(C)(x) Incorporates language into 
     clause (ii). [Sec. 929(e)]
       27. Strike Sec. 17(f)(1)(C)(xii) to eliminate provision for 
     conversion of competitive bidding savings. [Sec. 929(e)]
       28. Strike Sec. 17(f)(1)(C)(xiii) to eliminate requirement 
     to State agencies to submit additional information as the 
     Secretary may reasonably require. [Sec. 929(e)]
       29. Strike Sec. 17(f)(1)(D) Technical and conforming. [Sec. 
     929(e)]
       30. Strike Sec. 17(f)(2) to eliminate requirement for State 
     procedures for general public comments on the State plan. 
     [Sec. 929(e)]
       31. Revise Sec. 17(f)(5) to provide that accounts and 
     records be available at any ``reasonable time.'' [Sec. 
     929(e)]
       32. Strike Sec. 17(f)(6) Technical and conforming 
     (notification of eligibility/ineligibility). [Sec. 929(e)]
       33. Strike Sec. 17(f)(8) to eliminate State agency 
     publicity/information requirements. [Sec. 929(e)]
       34. Revise Sec. 17(f)(9)(B) to eliminate specific notice 
     requirements. [Sec. 929(e)]
       35. Revise Sec. 17(f)(11) to eliminate requirements 
     regarding State staffing standards. [Sec. 929(e)]
       36. Revise Sec. 17(f)(12) to eliminate provisions dealing 
     with products specifically designed for WIC recipients. [Sec. 
     929(e)]
       37. Revise Sec. 17(f)(14) to provide that the Secretary 
     ``may'' provide education in languages other than English. 
     [Sec. 929(e)]
       38. Revise Sec. 17(f)(17) to eliminate provisions dealing 
     with incarcerated individuals. [Sec. 929(e)]
       39. Revise Sec. 17(f)(19) to provide that the Secretary 
     ``may'' provide information about other potential sources of 
     information. [Sec. 929(e)]
       40. Strike Sec. 17(f)(20) to eliminate requirement for 
     State policies on those who do not fulfill appointment 
     schedules. [Sec. 929(e)]
       41. Strike Sec. 17(f)(22) Obsolete. [Sec. 929(e)]
       42. Strike Sec. 17(f)(24) Obsolete. [Sec. 929(e)]
       43. Revise Sec. 17(g)(5) Technical and conforming. [Sec. 
     929(f)]
       44. Strike Sec. 17(g)(6) Obsolete. [Sec. 929(g)]
       45. Strike Sec. 17(h)(8)(A). Obsolete. [Sec. 929(g)]
       46. Strike Sec. 17(h)(8)(C). Obsolete. [Sec. 929(g)]
       47. Strike Sec. 17(h)(8)(G)(ii)-(ix) to eliminate specific 
     provisions as to how the Secretary solicits bids. Insert a 
     new clause (ii) to ``grandfather'' existing contracts. [Sec. 
     929(g)]
       48. Revise Sec. 17(h)(8)(I), striking all but clause (v), 
     which relates to funds for cost containment innovations. 
     [Sec. 929(g)]
       49. Strike Sec. 17(h)(8)(M) to eliminate requirement for 
     product code pilot projects. [Sec. 929(g)]
       50. Strike Sec. 17(h)(10) to change from ``shall'' to 
     ``may'' the requirement for infrastructure development and 
     breastfeeding promotion funding. [Sec. 929(g)]
       51. Revise Sec. 17(k)(3) providing that the council shall 
     elect a Chairman and a Vice-Chairman. [Sec. 929(h)]
       52. Strike Sec. 17(n). Obsolete. [Sec. 929(i)]
       53. Strike Sec. 17(o) to eliminate community college 
     demonstration. [Sec. 929(i)]
       54. Strike Sec. 17(p) to eliminate authorization to make 
     grants for information/data systems. [Sec. 929(i)]
       55. Strike Sec. 18 to eliminate unused authority for cash 
     grants for nutrition education. [Sec. 930]
       56. Revise Sec. 19(a) to modify language concerning 
     Congressional findings about nutrition education and 
     training. [Sec. 931(a)]
       57. Revise Sec. 19(b) to modify language regarding purpose 
     of nutrition education and training. [Sec. 931(a)]
       58. Revise Sec. 19(f)(1)(A), striking clauses (ix)-(xix), 
     eliminating unnecessary stipulations on uses of funds. [Sec. 
     931(b)]
       59. Strike Sec. 19(f)(1)(B) to eliminate ``language 
     appropriate'' information provision. [Sec. 931(b)]
       60. Strike Sec. 19(f)(2) and 19(f)(4). Technical and 
     conforming. [Sec. 931(b)]
       61. Revise Sec. 19(g)(1) to provide that accounts and 
     records shall be available at any ``reasonable time.'' [Sec. 
     931(c)]
       62. Revise Sec. 19(h)(1) to eliminate paragraph cross-
     references. Technical and conforming. [Sec. 931(d)]
       63. Revise Sec. 19(h)(2), striking all but the first 
     sentence to eliminate language concerning assessment of 
     nutrition education and training needs. [Sec. 931(d)]
       64. Revise Sec. 19(h)(3) to eliminate specific requirements 
     with regard to nutrition coordinator's duties. [Sec. 931(d)]
       65. Revise Sec. 19(i), to make the Nutrition Education and 
     Training program discretionary instead of mandatory and 
     authorize appropriations of $10 million per year. [Sec. 
     931(e)]
       66. Strike Sec. 19(J) to eliminate requirement for 
     Secretarial assessment of nutrition education and training. 
     [Sec. 931(e)]
       67. Repeal Sec. 21. [Sec. 932]
       68. Insert, at the end of the Act, subsection (n), to 
     disqualify approved vendors that are disqualified from 
     accepting benefits under the food stamp program. [Sec. 
     929(j)]


           2. authorization for family nutrition block grant

                       A. Requirement for Grants

     Present law
       The Child Nutrition Act (see item 1) and the National 
     School Lunch Act (see item 11) require that the Secretary of 
     Agriculture provide Federal assistance to States for the WIC, 
     Child and Adult Care Food Summer Food Service, and Special 
     Milk programs, as well as other support (e.g., for State 
     administrative expenses and nutrition education and 
     training), under terms of agreements with States meeting 
     Federal standards.
     House bill
       Directs the Secretary of Agriculture to provide to each 
     State that submits an annual application in accordance with 
     the revised Child Nutrition Act's requirements (see item 4) 
     an annual family nutrition grant for the purpose of achieving 
     the goals of the Family Nutrition Block Grant Program (see 
     item 2B for the program's goals and item 3 for State 
     allotments).
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see Item #1).

                                B. Goals

     Present law
       The Child Nutrition Act declares it the policy of Congress 
     to extend, expand, and strengthen child nutrition programs as 
     a measure to safeguard the health and well-being of the 
     Nation's children and to encourage the domestic consumption 
     of agricultural commodities by assisting States through 
     grants and other means to more effectively meet children's 
     nutritional needs. [Sec. 2 of the Child Nutrition Act]
     House bill
       Establishes the goals of the Family Nutrition Block Grant 
     Program:
       (1) to provide nutritional risk assessments, food 
     assistance based on the assessments, and nutrition education 
     and counseling to economically disadvantaged pregnant, 
     postpartum, and breastfeeding women, as well as infants and 
     young children, determined to be at nutritional risk (see 
     item 10 for definitions);
     
[[Page H15454]]

       (2) to provide nutritional risk assessments of 
     participating women so that food assistance and nutrition 
     education is provided that meets their specific needs;
       (3) to provide nutrition education to participating women 
     to increase their awareness of the foods needed for good 
     health;
       (4) to provide food assistance, including nutritious 
     supplements, to participating women in order to reduce the 
     incidence of low-birthweight babies and babies born with 
     birth defects because of nutritional deficiencies;
       (5) to provide food assistance, including nutritious 
     supplements, to participating women, infants, and children to 
     ensure their future good health;
       (6) to ensure that participating women, infants, and 
     children are referred to other health services, including 
     routine pediatric/obstetric care;
       (7) to ensure that children from economically disadvantaged 
     families in day care facilities, family day care homes, 
     homeless shelters, settlement houses, recreational centers, 
     Head Start centers, Even Start programs, and facilities for 
     disabled children receive nutritious meals, supplements, and 
     low-cost milk; (see item 10B for definition of ``economically 
     disadvantaged''); and
       (8) to provide summer food service programs for children 
     from economically disadvantaged families when school is not 
     in session (see item 10B for definition of ``economically 
     disadvantaged'').
     Senate amendment
       No provision.
     Conference agreement
       Senate recedes with an amendment making changes to the 
     Child Nutrition Act (see Item #1).

                         C. Timing of Payments

     Present law
       No provision.
     House bill
       Directs that the Secretary of Agriculture make family 
     nutrition grant payments to the States on a quarterly basis.
     Senate amendment
       No comparable provision.
     Confernce agreement
       Senate recedes with an amendment making changes to the 
     Child Nutrition Act (see Item #1).


              3. Allotment of Family Nutrition Block Grant

     Present law
       Current activities that may be funded under the House 
     bill's Family Nutrition Block Grant include those now 
     supported by the WIC program, the Homeless Children Nutrition 
     program (authorized under section 17B of the National School 
     Lunch Act), the Child and Adult Care Food program (authorized 
     under section 17 of the National School Lunch Act), the 
     Summer Food Service program (authorized under section 13 of 
     the National School Lunch Act), and the Special Milk program.
       Under the WIC program, Federal funds, determined by 
     appropriations levels, are made available to States under a 
     formula that reflects State caseloads, food cost inflation, 
     need (as evidenced by poverty and health indices) and a 
     specified national average per participant grant; in effect, 
     funds are allotted so that each State can maintain its 
     caseload from year to year, and extra money is shared so as 
     to support expanded enrollment in States with greater need.
       Under the Homeless Children Nutrition program, Federal 
     funds are made available to existing projects to continue 
     operations and, from any additional amounts, money is 
     provided for new projects or to expand existing projects.
       Under the Child and Adult Care Food program, child and 
     adult care centers and family day care homes receive Federal 
     reimbursements for each meal or supplement served at 
     legislatively established, inflation indexed rates.
       Under the Summer Food Service program, sponsors receive 
     Federal reimbursements for each meal or supplement served, at 
     legislatively established, inflation indexed rates.
       Under the Special Milk program, schools and other 
     participating institutions receive specified, inflation 
     indexed Federal reimbursements for each half-pint of milk 
     served.
     House bill
       As set forth below, provides for the Secretary of 
     Agriculture to make State allotments of any appropriations 
     for the Family Nutrition Block Grant.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see Item #1).

                     A. First Year State Allotments

     Present law
       No provisions.
     House bill
       For the first fiscal year in which grants are made, 
     provides that the Secretary make allotments to States based 
     on the proportion of funds each State received under prior 
     law for the preceding fiscal year.
       Base-year State shares.--Each State's allotment would be 
     its prior-year share of funds received under the WIC and 
     Homeless Children Nutrition programs, plus its prior-year 
     share of 87.5% of the amounts received under the Child and 
     Adult Care Food, Summer Food Service, and Special Milk 
     programs.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see Item #1).

                    B. Second Year State Allotments

     Present law
       No provision.
     House bill
       For the second fiscal year in which grants are made, 
     provides that (1) 95% of the amount appropriated be allotted 
     according to each State's share of the amount allotted in the 
     first year and (2) 5% of the amount allotted be based on each 
     State's share of the number of individuals receiving 
     assistance under the grant during the 1-year period ending 
     the preceding June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

               C. Third and Fourth Year State Allotments

     Present law
       For the third and fourth fiscal years in which grants are 
     made, provides that (1) 90% of the amount appropriated be 
     allotted according to each State's share of the amount 
     allotted in the preceding year and (2) 10% of the amount 
     allotted be based on each State's share of the number of 
     individuals receiving assistance under the grant during the 
     1-year period ending the preceding June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                     D. Fifth Year State Allotments

     Present law
       No provision.
     House bill
       For the fifth fiscal year in which grants are made, 
     provides that (1) 85% of the amount appropriated be allotted 
     according to each State's share of the amount allotted in the 
     fourth year and (2) 15% of the amount allotted be based on 
     each State's share of the number of individuals receiving 
     assistance under the grant during the 1-year period ending 
     the preceding June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).


               4. Application for Family Nutrition Grants

     Present law
       Nutrition requirements for food assistance provided under 
     the current WIC, Child and Adult Care Food, and Summer Food 
     Service programs are established by the Secretary of 
     Agriculture, as are the general standards for determining 
     nutritional risk in women, infants, and children, on the 
     basis of tested nutritional research. [Sec. 17(b)(8) & (14) 
     and (f)(12) of the Child Nutrition Act; Sec. 17(g)(1) and 
     Sec. 13(f) of the National School Lunch Act]
       The use/disclosure of information obtained from 
     applications for free/reduced-price meals is limited to those 
     administering/enforcing child nutrition programs, 
     administrators of other health or education programs (with 
     restrictions), and the General Accounting Office and law 
     enforcement officials. [Sec. 9(b)(2) of the National School 
     Lunch Act]
     House bill
       Provides that the Secretary make a family nutrition grant 
     to a State if it submits an application containing only the 
     following:
       (1) an agreement that the State will use the grant in 
     accordance with Family Nutrition Block Grant program 
     requirements (see item 5);
       (2) an agreement that the State will set minimum nutrition 
     requirements for food assistance provided under the grant 
     based on the most recent tested nutrition research available 
     (but the requirements may not prohibit the substitution of 
     foods to accommodate medical or other special dietary needs, 
     and would have to be based, at a minimum, on the weekly 
     average nutrient content of school lunches or other standards 
     set by the State);
       (3) an agreement that, with respect to assistance to 
     pregnant, postpartum, and breastfeeding women, and infants 
     and children, the State will implement minimum nutrition 
     requirements based on the most recent tested nutritional 
     research available or the model nutrition standards developed 
     by the National Academy of Sciences (see item 8B);
       (4) an agreement that the State will take reasonable steps 
     it deems necessary to restrict the use and disclosure of 
     information about those receiving assistance under the grant;
       (5) an agreement that the State will not use more than 5% 
     of its grant for administrative costs incurred to provide 
     assistance (costs associated with nutritional risk 
     assessments of pregnant, postpartum, and 

[[Page H15455]]
     breastfeeding women, and infants and children, as well as those 
     associated with nutrition education and counseling for these 
     individuals, would not be considered administrative costs 
     subject to the 5% limit); and
       (6) an agreement that the State will submit an annual 
     report to the Secretary (see item 6).
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).


   5. use of amounts provided under the family nutrition block grant

                        A. Activities Supported

     Present law
       The WIC program provides nutritional risk assessment, 
     specific nutritious foods (under Federal guidelines), 
     nutrition education/counseling, breastfeeding support, and a 
     farmers' market program for lower-income pregnant, 
     postpartum, and breastfeeding women, as well as infants and 
     children (up to age 5). Recipients' family income must be 
     below 185% of poverty, and they must be judged at nutritional 
     risk. [Sec. 17 of the Child Nutrition Act]
       The Special Milk program provides Federal reimbursement for 
     each half-pint of milk served in schools and other child care 
     institutions not participating in a meal service program (and 
     schools with split sessions for kindergartners). Milk is 
     served at a ow price or for free and each half-pint is 
     subsidized at a different rate depending on whether it served 
     free or not. Provision of free milk is not required. [Sec. 3 
     of the Child Nutrition Act]
       The Child and Adult Care Food program provides Federal per-
     meal/supplement reimbursements for all meals and supplements 
     served in public and private nonprofit child care centers, 
     public and private nonprofit adult day care centers, certain 
     for-profit child and adult day care centers, and family day 
     care homes. Reimbursements for meals/supplements served in 
     child/adult care centers differ according to whether they are 
     served free (to children from families with income below 130% 
     of Federal poverty guidelines), at a reduced price (to 
     children with family income between 130% and 185% of the 
     poverty guidelines), or at ``full price'' (so-called ``paid'' 
     meals and supplements for those with family income above 185% 
     of poverty or who do not apply for free or reduced price 
     meals/supplements). Reimbursements for meals and supplements 
     served in family day care homes do not vary by the family 
     income of the child, and sponsors of family day care homes 
     receive monthly payments for administrative costs. [Sec. 17 
     of the National School Lunch Act]
       The Summer Food Service program provides Federal per meal/
     supplement reimbursements for all summer meals and 
     supplements served through public and private nonprofit 
     sponsors (including schools and local governments) to 
     children in areas where 50% or more have family income below 
     185% of the Federal poverty guidelines (are eligible for free 
     or reduced-price school meals). Summer food service subsidies 
     also are provided to public and private nonprofit summer 
     camps and higher education institutions in the National Youth 
     Sports program. [Sec. 13 of the National School Lunch Act]
       The Homeless Children Nutrition program grants funds to 
     public and private nonprofit sponsors providing food service 
     (meals and supplements), similar to that provided under the 
     Child and Adult Care Food program, to homeless children under 
     age 6 in shelters. [Sec. 17B of the National School Lunch 
     Act] [General Note: In addition to cash reimbursements, 
     Federal commodity assistance is available for the Child and 
     Adult Care Food and Summer Food Service programs.]
     House bill
       Provides that the Secretary of Agriculture make family 
     nutrition grants to States if they agree to use their grant 
     to:
       (1) provide nutritional risk assessment, food assistance 
     based on the assessment, and nutrition education and 
     counseling to economically disadvantaged pregnant, 
     postpartum, and breastfeeding women, and infants and young 
     children, who are determined to be at nutritional risk (see 
     item 10 for definitions);
       (2) provide milk in nonprofit nursery schools, child care 
     centers, settlement houses, summer camps, and similar child 
     care settings to children from economically disadvantaged 
     families (see item 10 for definitions) [Note: Under the 
     School-Based Nutrition Block Grant Program, support could be 
     provided for milk served in schools.];
       (3) provide food service in institutions and family day 
     care homes providing child care to children from economically 
     disadvantaged families (see item 10 for definitions) [Note: 
     Under the School-Based Nutrition Block Grant Program, support 
     could be provided for child care food service provided 
     through schools. Further Note: Adult-care food service would 
     not be funded under the Family Nutrition Block Grant 
     program.];
       (4) provide summer food service to economically 
     disadvantaged children through programs carried out by 
     nonprofit food authorities, local governments, higher 
     education institutions in the National Youth Sports program, 
     and nonprofit summer camps (see item 10 for definitions) 
     [Note: Under the School-Based Nutrition Block Grant Program, 
     support could be provided for summer food service by 
     schools.]; and
       (5) provide nutritious meals to pre-school-age homeless 
     children in shelters and other facilities serving the 
     homeless.
       [General Note: Federal commodity assistance would not be 
     available for child care food and summer food service 
     activities under the family nutrition grant.]
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

   B. Additional Requirements for Assistance for Women, Infants, and 
                                Children

     Present law
       Under the WIC program, States must carry out cost 
     containment measures in procuring infant formula (and, where 
     practicable, other foods). Cost containment must be by 
     competitive bidding (selection of a single source offering 
     the lowest price) or another method that yields equal or 
     greater savings. Cost savings (e.g., through manufacturer 
     rebates) may be used by the State for WIC program purposes. 
     The Secretary of Agriculture must provide technical 
     assistance for cost-containment bids and offer to solicit 
     multi-State bids for infant formula and infant cereal. In 
     addition, certain rules against bid-rigging and anti-
     competitive practices are established. [Sec. 17(b) (17)-(20) 
     and (h) (8) and (9) of the Child Nutrition Act, and Sec. 25 
     of the National School Lunch Act]
     House bill
       Requires that each State ensure that not less than 80% of 
     its family nutrition grant is used to provide nutrition risk 
     assessment, food assistance based on the assessment, and 
     nutrition education and counseling to economically 
     disadvantaged pregnant women, postpartum women, breastfeeding 
     women, infants, and young children.
       With respect to assistance provided to women, infants, and 
     young children, requires States to establish and carry out a 
     cost containment system for procuring infant formula. 
     Requires States to use cost containment savings for any of 
     the activities supported under their family nutrition grant. 
     Requires States to submit annual reports to the Secretary (1) 
     describing their infant formula cost containment system and 
     (2) estimating the cost savings from the system for the 
     report year compared to savings from the preceding year, 
     where appropriate.
       Requires States to ensure that equitable assistance for 
     economically disadvantaged pregnant women, postpartum women, 
     breastfeeding women, infants, and young children is provided 
     to members of the Armed Forces and their dependents, 
     regardless of their State of residence (see item 10 for 
     definitions).
     Senate amendment
       Includes findings on the success of the WIC program in 
     improving the health status of women, infants, and children 
     and saving Medicaid expenditures, as well as the importance 
     of manufacturer rebates in helping to fund the WIC program. 
     Provides that it is the sense of the Senate that any 
     legislation not eliminate or in any way weaken present 
     competitive bidding requirements for the purchase of infant 
     formula in programs supported with Federal funds.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

        C. Child Care Food Assistance on Military Installations

     Present law
       Assisted child care facilities must be licensed under 
     Federal, State, or local rules. [Sec. 17(a)(1) of the 
     National School Lunch Act]
     House bill
       Requires States to provide equitable assistance under its 
     program for child care facilities to Defense Department child 
     care programs on military installations--to the extent 
     consistent with the number of children in the programs and 
     after consultation with the programs' representatives.
       In carrying out programs for child care facilities, bars 
     States from requiring that those on military installations be 
     licensed under State law if they are licensed by the Defense 
     Department.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to the 
     Child Nutrition Act (see item 1).

  D. Authority to Use Family Nutrition Block Grant Amounts for Other 
                                Purposes

     Present law
       No provision.
     House bill
       Allows States to use not more than 20% of amounts received 
     from a family nutrition block grant for any fiscal year to 
     carry out State programs under other block grants authorized 
     by:
       (1) part A of title IV of the Social Security Act (relating 
     to welfare for families with children);
       (2) part B of title IV of the Social Security Act (relating 
     to provision of child welfare services);
       (3) title XX of the Social Security Act (relating to 
     provision of social services);
     
[[Page H15456]]

       (4) the National School Lunch Act (relating to school-based 
     nutrition block grants); and
       (5) the Child Care and Development Block Grant.
       Provides that States may not transfer funds to other block 
     grants unless the appropriate State agency makes a 
     determination that sufficient amounts will remain available 
     for the fiscal year to carry out activities under the Family 
     Nutrition Block Grant program.
       Provides that family nutrition grant amounts States 
     transfer to other block grants (noted above) will not be 
     subject to the requirements of the Family Nutrition Block 
     Grant program under the revised Child Nutrition Act, but will 
     be subject to the requirements that apply to Federal funds 
     provided directly to the block grant to which they are 
     transferred.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to the 
     Child Nutrition Act (see item 1).


                               6. reports

     Present law
       No comparable provision.
     House bill
       Requires that States, as a condition of receiving a family 
     nutrition grant, agree to submit an annual report to the 
     Secretary of Agriculture describing:
       (1) the number of individuals receiving assistance under 
     the grant for the reporting (fiscal) year;
       (2) the different types of assistance provided;
       (3) the extent to which the assistance provided was 
     effective in achieving the goals of the Family Nutrition 
     Block Grant program (see item 2B);
       (4) the standards and methods the State is using to ensure 
     the nutritional quality of assistance under the grant;
       (5) the number of low-birthweight births in the State in 
     the reporting (fiscal) year compared to the number of low-
     birthweight births in the previous year; and
       (6) any other information that can be reasonably required 
     by the Secretary.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to the 
     Child Nutrition Act (see item 1).


                              7. penalties

                       A. Penalty for Violations

     Present law
       The Child Nutrition and National School Lunch Acts provide 
     penalties for fraud in relation to assistance provided under 
     either Act, grant the Secretary of Agriculture authority to 
     establish and adjust claims against States, and establish a 
     compliance and accountability program to monitor the use of 
     Federal funds. [Sec. 12(g) and Sec. 22 of the National School 
     Lunch Act, and Sec. 16 of the Child Nutrition Act]
     House bill
       Requires the Secretary of Agriculture to reduce family 
     nutrition grant amounts otherwise payable to a State by any 
     amount paid under the grant that an audit made under the 
     ``Single Audit Act'' (chapter 75 of title 31 of the United 
     States Code) finds has been used in violation of the revised 
     Child Nutrition Act. However, the Secretary is barred from 
     reducing any quarterly payment to the State by more than 25%.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

           B. Penalty for Failure to Submit a Required Report

     Present law
       No specific provision
     House bill
       Requires the Secretary to reduce by 3% the family nutrition 
     grant amount otherwise payable to a State for any fiscal year 
     if the Secretary determines that the State has not submitted 
     the required annual report (see item 6) for the immediately 
     preceding fiscal year within 6 months after the end of that 
     fiscal year.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).


 8. Model nutrition standards for food assistance for women, infants, 
                              and children

                             A. Requirement

     Present law
       No comparable provisions. [Note: The Secretary establishes 
     nutrition standards for and foods to be made available under 
     the WIC program; Sec. 17(b)(14) and 17(f)(12) of the Child 
     Nutrition Act.]
     House bill
       Not later than April 1, 1996, requires the National Academy 
     of Sciences to develop model nutrition standards for food 
     assistance provided to economically disadvantaged pregnant 
     women, postpartum women, breastfeeding women, infants, and 
     young children under the Family Nutrition Block Grant program 
     (see item 10 for definitions). The standards are to be 
     developed by the Food and Nutrition Board of the Academy's 
     Institute of Medicine, in cooperation with pediatricians, 
     obstetricians, nutritionists, and directors of programs 
     providing food assistance, nutrition education and counseling 
     to these women, infants, and children.
       The model standards must require that food assistance 
     provided to these women, infants and children contain 
     nutrients that are lacking in their diets, as determined by 
     nutritional research.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                         B. Report to Congress

     Present law
       No provision.
     House bill
       Not later than one year after the model nutrition standards 
     (noted above) are developed, requires the National Academy of 
     Sciences to report to Congress regarding effort of States to 
     implement them.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (See item 1).


                   9. Authorization of Appropriations

                            A. Authorization

     Present law
       Federal appropriations for activities under current law 
     replaced by the House bill's Family Nutrition Block Grant 
     program are authorized at such sums as are necessary, except 
     for the Homeless Children Nutrition program (provided 
     specific amounts). [Sec. 13(r), 17(b), and 17B of the 
     National School Lunch Act; Sec. 3(a) and 4(a) of the Child 
     Nutrition Act]
     House bill
       Authorizes appropriations for the Family Nutrition Block 
     Grant program under the revised Child Nutrition Act at: 
     $4.606 billion for fiscal year 1996, $4.777 billion for 
     fiscal year 1997, $4.936 billion for fiscal year 1998, $5.120 
     billion for fiscal year 1999, and $5.308 billion for fiscal 
     year 2000.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                            B. Availability

     Present law
       With the exception of funding for the WIC program, 
     appropriations for the activities under current law to be 
     replaced by the Family Nutrition Block Grant program 
     generally cannot be carried over to the next fiscal year.
     House bill
       Authorizes amounts for the Family Nutrition Block Grant 
     program to remain available until the end of the fiscal year 
     subsequent to the year they were appropriated for.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).


                            10. definitions

A. Breastfeeding Women, Infants, Postpartum Women, Pregnant Women, and 
                             Young Children

     Present law
       For purposes of the WIC program: (1) breastfeeding women 
     are defined as women up to 1 year postpartum who are 
     breastfeeding their infants; (2) infants are defined as 
     persons under 1 year of age; (3) postpartum women are defined 
     as women up to 6 months after termination of pregnancy; (4) 
     pregnant women are defined as those who have 1 or more 
     fetuses in utero; and (5) young children are persons who have 
     had their first birthday but not attained their fifth 
     birthday. [Sec. 17(b) of the Child Nutrition Act]
     House bill
       For purposes of State family nutrition grant programs, 
     adopts present-law definitions of breastfeeding women, 
     infants, postpartum women, pregnant women, and young 
     children.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                     B. Economically Disadvantaged

     Present law
       No directly comparable provisions. [Note: Under present 
     law, means tests for assistance apply as follows: (1) for the 
     WIC program, recipients must have family income below 185% of 
     the Federal poverty guidelines (but States may not set 
     standards below poverty); and (2) for those in child and 
     adult care centers under the Child and Adult Care Food 
     program, persons with family income 

[[Page H15457]]
     below 130% of poverty are eligible for free meals/supplements, those 
     with family income between 130% and 185% of poverty are 
     eligible for reduced-price meals and supplements, and those 
     with family income above 185% of poverty (or who do not apply 
     for free or reduced-price treatment) are eligible for 
     ``paid'' (but still subsidized meals and supplements. No 
     individual income test is applied in the family day care home 
     component of the Child and Adult Care Food program, the 
     Summer Food Service program, the Special Milk program, and 
     the Homeless Children Nutrition program.
     House bill
       The term ``economically disadvantaged'' is defined to apply 
     to individuals or families with annual income below 185% of 
     the Federal poverty guidelines. [Note: No assistance under a 
     family nutrition grant (other than aid to homeless children) 
     could be given to those with family income above 185% of 
     poverty.]
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                        C. School and Secretary

     Present law
       ``Schools'' are defined as public or private nonprofit 
     elementary, intermediate, or secondary schools. The 
     ``Secretary'' is defined as the Secretary of Agriculture.
     House bill
       ``Schools'' and the ``Secretary'' would, under the Family 
     Nutrition Block Grant program, have the same meaning as in 
     present law.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).

                                D. State

     Present law
       In general, ``State'' is defined as the 50 States, the 
     District of Columbia, Puerto Rico, the Northern Marianas, 
     American Samoa, Guam, and the Virgin Islands. In the WIC 
     program, it includes an Indian tribe, band, or group 
     recognized by the Interior Department, an intertribal council 
     or group recognized by the Interior Department, or the Indian 
     Health Service.
     House bill
       ``State'' would, under the Family Nutrition Block Grant 
     program have the same meaning as in present law. In addition, 
     Indian tribal organizations (as defined under section 4(l) of 
     the Indian Self-Determination and Education Assistance Act) 
     would be included as States and could apply for grants.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment making changes to Child 
     Nutrition Act (see item 1).


                     11. National School Lunch Act

     Present law
       Authorizes the School Lunch, Summer Food Service, Child and 
     Adult Care Food, and Homeless Children Nutrition programs. 
     Also authorizes commodity assistance for child nutrition 
     programs and school lunch assistance for Defense Department 
     overseas dependents' schools.
       Under the School Lunch program, schools choosing to 
     participate receive per-meal Federal subsidies for all 
     lunches they serve that meet Federal nutrition standards. 
     Subsidies are indexed annually and differ depending on 
     whether the meal is served free (to children from families 
     with income below 130% of Federal poverty guidelines), at a 
     reduced price (to children with family income between 130% 
     and 185% of poverty), or at ``full price'' (so-called 
     ``paid'' lunches for those with family income above 185% of 
     poverty or who do not apply for free or reduced-price meals). 
     Schools with high proportions of free or reduced-price 
     participants receive an additional per-meal subsidy. [Sec. 4 
     & 11 of the National School Lunch Act]
       The Summer Food Service program provides Federal per-meal/
     supplement reimbursements for all summer meals and 
     supplements served through public and private nonprofit 
     sponsors (including schools and local governments) to 
     children in areas where 50% or more have family income below 
     185% of the Federal poverty guidelines (are eligible for free 
     or reduced-price school meals). Summer food service subsidies 
     also are provided to public and private nonprofit summer 
     camps and higher education institutions in the National Youth 
     Sports program. [Sec. 13 of the National School Lunch Act]
       The Child and Adult Care Food Service program provides 
     Federal per-meal reimbursements for all meals and supplements 
     served in public and private nonprofit child care centers, 
     public and private nonprofit adult day care centers, certain 
     for-profit child and adult daycare centers, and family day 
     care homes. Reimbursements for meals/supplements in centers 
     vary by the recipient's income, but not in family day care 
     homes. Certain schools with after-school care programs also 
     may receive assistance. [Sec. 17 & 17A of the National School 
     Lunch Act] The Homeless Children Nutrition program grants 
     funds to public and private nonprofit sponsors providing food 
     service (meals and supplements), similar to that provided 
     under the Child and Adult Care Food program, to homeless 
     children under age 6 in shelters.
       The Agriculture Department is required to provide commodity 
     support for meals served by institutions in the School Lunch, 
     Child and Adult Care Food, and Summer Food Service programs. 
     Schools and other institutions are ``entitled'' to a specific 
     dollar value of commodities based on the number of meals 
     served. Schools and other institutions also receive ``bonus'' 
     commodities donated from Federal stocks at the Agriculture 
     Department's discretion. [Sec. 6 & 14 of the National School 
     Lunch Act]
       The Secretary of Agriculture is required to make funds 
     available for school lunch programs in Defense Department 
     overseas dependent's schools to the same degree as for other 
     schools (authority for school breakfast programs in these 
     schools is contained in Sec. 20 of the Child Nutrition Act). 
     [Sec. 17A of the National School Lunch Act]
     House bill
       Retains the designation of the Act as the National School 
     Lunch Act and replaces the Act's current provisions with 
     authority for a School-Based Nutrition Block Grant Program.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment to:

A. Create an optional State block grant demonstration program entitled, 
    ``School Nutrition Optional Block Grant Demonstration Program''

       Optional Block Grant Demonstration Program.--Under the 
     terms of the optional block grant demonstration program, 
     seven States--one per USDA Food and Consumer Service Region--
     will be eligible to receive funds to carry out programs 
     offering school breakfasts and lunches for all school 
     children under a block grant demonstration program.
       Decision to participate.--States opting to participate in 
     the block grant demonstration program may not reverse such 
     decision prior to the end of the authorization period.
       State plan.--States are required to submit a State plan to 
     the Secretary in order to participate in the block grant 
     demonstration program.
       Use of funds.--Allows States to use funds only for school 
     lunches, breakfasts, meal supplements and for the purchase of 
     equipment or improvement of facilities needed to improve 
     school food services.
       Nonprofit operation.--School lunch and breakfast programs 
     are to be operated on a nonprofit basis.
       Administrative expenses.--None of the funds under the block 
     grant demonstration program are to be used for State 
     administrative expenses (States will continue to receive such 
     funds under current SAE provisions).
       Nutritional requirements.--States are to provide minimum 
     nutritional requirements for meals based on the most recent 
     tested nutritional research available. Such requirements 
     shall be consistent with the goals of the most recent Dietary 
     Guidelines for Americans. Meals shall provide, on the average 
     over a week, at least \1/3\ of the recommended dietary 
     allowance for lunches and \1/4\ of the recommended dietary 
     allowance for breakfasts. The Secretary may not impose any 
     additional nutritional requirements beyond those specified in 
     this section.
       State review.--States will review the meal operations in 
     each school food authority participating in the block grant 
     demonstration program no later than two years after 
     implementation of the block grant demonstration program and 
     at the end of each 5-year period thereafter.
       Income eligibility.--The State plan will describe how the 
     block grant demonstration program will serve specific groups 
     of children in the State. The plan will further describe the 
     income eligibility limitations established for free meals and 
     low-cost meals. A state may use group eligibility criteria 
     based upon census or other data that measures family income 
     in determining eligibility.
       Free meals.--State's plans are required to offer access to 
     free meals to students who are members of families with 
     incomes at or below 130 percent of poverty and who attend a 
     school participating in the block grant demonstration 
     program. In addition, the block grant demonstration program 
     allows States to provide students who are members of families 
     with incomes at or above 130 percent of poverty free school 
     lunches and school breakfasts.
       Low cost meals.--The State plan must provide for a low cost 
     meal payment charge for students who are members of families 
     whose incomes are equal to or more than 130 percent of 
     poverty and equal to or less than 185 percent of the poverty 
     line. States may develop their own eligibility criteria which 
     may be based on group eligibility, census data, demographic 
     information, and prior year participation.
       Proportion of students served.--The State shall ensure that 
     for any year the proportion of low income and needy students 
     served meals under the block grant demonstration program is 
     not less than the proportion of such students served meals in 
     the last year of participation by the State in the School 
     Lunch program or the School Breakfast program.
       Proportion of funds used to provide service.--The State 
     plan shall provide that for 

[[Page H15458]]
     any year the proportion of funds used by the State to provide meals for 
     low income and needy students under the block grant 
     demonstration program is not less than the proportion of 
     funds used to provide meals for such students in the last 
     year of participation by the State in the School Lunch 
     program or the School Breakfast program.
       Continued participation.--Each school participating in the 
     current school lunch and breakfast program in a State opting 
     into the block grant demonstration program is to be given the 
     opportunity to operate similar programs under the block grant 
     demonstration program.
       CASH/CLOC.--States are required to permit to permit a 
     school district, nonprofit private school or DOD domestic 
     dependents' school to receive commodity assistance in the 
     same form they received such assistance as of January 1, 
     1987.
       Privacy.--States shall provide for safeguarding and 
     restricting the use and disclosure of information about 
     children receiving assistance under this Act. Physical 
     segregation and overt identification of children 
     participating in the block grant demonstration program is 
     prohibited.
       Required report.--In order to participate, States must 
     agree to submit a report to the Secretary each fiscal year 
     describing (a) the number of children receiving assistance; 
     (b) the different types of assistance provided; (c) the 
     extent to which assistance was effective in achieving in 
     achieving program goals; (d) the standards and methods used 
     to ensure the nutritional quality of meals and meal 
     supplements; and (e) other information the Secretary can 
     reasonably require. Failure to submit the required report 
     will cause a 3 percent reduction in amounts otherwise payable 
     to a State.
       Compliance.--The Secretary is required to review and 
     monitor State compliance and withhold funds to the State with 
     respect to the program or activity for which noncompliance is 
     found, until the Secretary determines the problem has been 
     corrected. The sanctions to be implied may include a partial 
     reduction of grant in subsequent years. The Secretary may 
     seek financial restitution for misused funds.
       Payments to States.--Payments to States under the block 
     grant demonstration program shall be on a quarterly basis and 
     may be expended by the State for the current fiscal year or 
     the succeeding fiscal year.
       Audits.--A yearly audit is required.
       Allotment.--In the first year of participation, the 
     Secretary is required to allot to each participating State an 
     amount that is equal to the amount the Secretary projects 
     will be made available to the State to carry out the school 
     lunch and breakfast programs (including commodities) for the 
     current fiscal year. In succeeding years, the amount will 
     equal the amount provided in the preceding fiscal year, 
     adjusted to reflect changes in the consumer price index, 
     services for food away from home, and changes in each State's 
     student enrollment.
       State contribution.--Funds appropriated or used 
     specifically by the State for block grant demonstration 
     program purposes shall be not less than the amount that the 
     State made available for the preceding fiscal year for the 
     School Lunch program and the School Breakfast program.
       Commodities.--Not less than 8 percent and not more than 10 
     percent of the amount of a State's allotment will be in the 
     form of commodities.
       Alternative assistance.--Requires the Secretary to arrange 
     for the provision of assistance and reduce State allotments 
     accordingly, in cases where a State is prohibited by law from 
     providing assistance to a nonprofit private school or a DOD 
     domestic dependents' school or if a State has substantially 
     failed or is unwilling to provide such assistance to a 
     nonprofit private school, a DOD domestic dependents' school 
     or a public school.
       Transition.--A State opting into the block grant 
     demonstration program may use funds and commodities from the 
     block grant demonstration program to transition out of the 
     block grant demonstration program at the end of the 
     authorization period.
       Evaluation.--No later than three years after the 
     establishment of the block grant demonstration program the 
     Secretary is to conduct an evaluation and submit a report to 
     Congress, including the comments of the Comptroller General. 
     The report is to include information on the effects of the 
     block grant demonstration program on the nutritional quality 
     of meals; the degree to which children, particularly low 
     income children participated in the block grant demonstration 
     program, the income distribution of children served and the 
     amount of assistance such children received; the types of 
     meals offered under the block grant demonstration program; 
     how the implementation of the block grant demonstration 
     program differs from the implementation of the school lunch 
     and breakfast programs; the effect of the block grant 
     demonstration program on state and school administrative 
     costs, the effect of the block grant demonstration program on 
     paperwork.
       Authorization period.--the authority to carry out the block 
     grant demonstration program shall terminate on September 30, 
     2000. [Sec. 914]

   B. Streamline provisions of the National School Lunch Act of 1966.

       1. Revise Sec. 8, striking the third and fourth sentences, 
     moving the 5th sentence (defining child) to the 
     Miscellaneous/Definitions section of the Act and striking 
     language relating to maximum per meal reimbursements. [Sec. 
     901]
       2. Strike Sec. 9(a)(2)(B) to eliminate the required 
     purchase of low fat cheese equivalent to estimated decline in 
     milk fat purchases because of elimination of whole milk 
     requirement. [Sec. 902]
       3. Strike Sec. 9(a)(3) to eliminate administrative 
     procedures to diminish plate waste. [Sec. 902]
       4. Strike Sec. 9(b)(2)(A) to eliminate requirement that 
     State Educational Agencies and local school food authorities 
     announce income eligibility requirements each year. [Sec. 
     902]
       5. Revise Sec. 9(b)(5), striking sentence relating to 
     physical segregation and overt identification (duplicative of 
     preceding language). [Sec. 902]
       6. Revise Sec. 9(c), striking the second, fourth and sixth 
     sentences to eliminate requirement that schools use 
     commodities that are in abundance in their lunch programs. 
     [Sec. 902]
       7. Revise Sec. 9(f), striking paragraph (1) to eliminate 
     provision requiring schools to inform students of nutritional 
     content of lunches and their consistency with the Dietary 
     Guidelines for Americans. [Sec. 902]
       8. Revise Sec. 9(f)(2)(D) to permit schools to use any 
     reasonable approach to meet dietary guidelines. [Sec. 902]
       9. Strike Sec. 9(h) to eliminate language providing the 
     States can use NET funds for training to improve nutritional 
     quality and acceptance of meals. [Sec. 902]
       10. Revise Sec. 11(b), striking references to ``maximum per 
     lunch amounts.'' [Sec. 904]
       11. Strike Sec. 11(d) to eliminate language referring to 
     applicability of other provisions in the Act to Sec. 11. 
     [Sec. 904]
       12. Revise Sec. 11(e)(2) to require that the Secretary make 
     a request for monthly reports rather than receive them 
     automatically. [Sec. 904]
       13. Revise Sec. 12(a) providing that accounts and records 
     shall be available at any reasonable time. [Sec. 905]
       14. Revise 12(c) to strike language that prohibits 
     ``State'' from imposing requirements on teaching personnel 
     and curricula. [Sec. 905]
       15. Revise Sec. 12(d) by changing the definition of 
     ``State,'' by striking ``the Trust Territory of the Pacific 
     Islands'' and inserting ``the Commonwealth of the Northern 
     Mariana Islands.'' Makes conforming changes throughout. [Sec. 
     905]
       16. Strike Sec. 12(d)(3) to eliminate ``participation need 
     rate'' definition. [Sec. 905]
       17. Strike Sec. 12(d)(4) to eliminate assistance need rate 
     definition. [Sec. 905]
       18. Strike Sec. 12(k)(1),(2), and (5) to eliminate 
     provisions dealing with the establishment of regulations on 
     food based menus. [Sec. 905]
       19. Revise Sec. 12(l)(1)(B)(2)(A), striking clauses (v), 
     (vi), (vii), and (2)(B). [Sec. 905]
       20. Strike Sec. 12(l)(3(B) to eliminate requirement that 
     Sec. respond in writing to written waiver request. [Sec. 905]
       21. Strike Sec. 12(l)(3)(C) to eliminate requirement that 
     the result of waiver decisions be disseminated by State. 
     [Sec. 905]
       22. Strike Sec. 12(l)(3)(D)(i) and (ii) to eliminate the 2 
     year limit on waiver period and authority for extension. 
     [Sec. 905]
       23. Revise Sec. 12(l)(4), striking subparagraphs (B), (D), 
     (F), (H), (J), (K), (L), and inserting a general prohibition 
     on any waiver that will increase Federal costs. [Sec. 905]
       24. Strike Sec. 12(l)(6)(A) to eliminate requirement that 
     eligible service providers receiving waivers report annually 
     to the State, therefore eliminating the requirement that 
     States annually submit a summary of said reports to the 
     Secretary. [Sec. 905]
       25. Strike Sec. 12(m) to eliminate Nutrition Instruction 
     Grants. [Sec. 905]
       26. Revise Sec. 13(a)(1) to eliminate reference to 
     expansion. [Sec. 906]
       27. Revise Sec. 13(a)(7)(A). Technical and conforming. 
     [Sec. 906]
       28. Revise Sec. 13(b)(2) to change ``may serve up to four 
     meals'' to ``three meals or two meals and one supplement.'' 
     [Sec. 906]
       29. In Sec. 13, references to the National Youth Sports 
     Program are amended by (1) striking non summer months 
     payments; (2) striking severe needs reimbursements; and (3) 
     requiring that participants be eligible based on residence in 
     low income areas, or on the basis of income eligibility 
     statements from children enrolled in the program. [Sec. 906]
       30. Revise Sec. 13(f) by (1) eliminating requirement that 
     the Secretary provide additional technical assistance to 
     service providers having difficulty maintaining compliance; 
     and (2) providing that contracts between service institutions 
     and food service management companies require periodic 
     inspections by an independent State agency to determine 
     conformance with standards set by local health authorities. 
     [Sec. 906]
       31. Strike Sec. 13(f)(4) to eliminate specific provisions 
     governing advance payments. [Sec. 906]
       32. Strike Sec. 13(g)(1)(A). Redundant in relation to 
     preceding language. [Sec. 906]
       33. Revise Sec. 13(g)(1)(B) by striking second statement to 
     eliminate technical assistance for those with difficulty 
     maintaining compliance. [Sec. 906]
       34. Strike Sec. 13(k)(3) to eliminate added Federal funding 
     to States for health department inspections. [Sec. 906]
       35. Strike Sec. 13(l)(4) to eliminate provision for small 
     business preference). [Sec. 906]
       36. Strike Sec. 13(l)(5) to eliminate provision for 
     standard contract forms. [Sec. 906]
       37. Revise Sec. 13(m) to provide that accounts and records 
     be available ``at any reasonable time.'' [Sec. 906]
     
[[Page H15459]]

       38. Revise Sec. 13(n)(2) by striking the clause beginning 
     ``including the State's methods.'' [Sec. 906]
       39. Strike Sec. 13(n)(3) to eliminate provisions dealing 
     with States' ``best estimates'' of those served. [Sec. 906]
       40. Strike Sec. 13(n)(4) to eliminate requirement for a 
     State ``schedule'' for providing technical assistance. [Sec. 
     906]
       41. Strike Sec. 13(p). Obsolete. [Sec. 906]
       42. Strike Sec. 13(q)(2) to eliminate requirements for 
     training and technical assistance for private nonprofits. 
     [Sec. 906]
       43. Strike Sec. 13(q)(4). Technical and conforming. [Sec. 
     906]
       44. Strike Sec. 14(b)(1) regarding the inclusion of cereal 
     and shortening in commodity donations. [Sec. 907]
       45. Revise Sec. 14(d) by striking the matter requiring an 
     impact study of commodity distribution procedures. [Sec. 907]
       46. Strike Sec. 14(e) to eliminate the State Advisory 
     Council. [Sec. 907]
       47. Strike Sec. 14(g)(3). Obsolete. [Sec. 907]
       48. Revise Sec. 17 by, in the title of the section, 
     striking ``and Adult.'' [Sec. 908]
       49. Revise Sec. 17(a) to eliminate reference to 
     authorization to ``expand'' programs. [Sec. 908]
       50. Revise Sec. 17(d)(1) to eliminate provision for 
     technical assistance in completing applications. [Sec. 908]
       51. Revise Sec. 17(f)(3)(B) by striking last two sentences. 
     Obsolete. [Sec. 908]
       52. Revise Sec. 17(f)(3)(C)(i) by striking all references 
     to ``expansion.'' [Sec 908]
       53. Strike Sec. 17(f)(3)(C)(ii) to eliminate provision for 
     outreach and recruitment. [Sec. 908]
       54. Strike Sec. 17(f)(4) to eliminate specific provisions 
     requiring advance payments. States would be allowed to make 
     such payments but would not be required to do so. [Sec. 908]
       55. Strike Sec. 17(g)(1)(A) to eliminate redundant 
     provision. [Sec. 908]
       56. Strike Sec. 17(g)(1)(B) to eliminate provision for 
     added technical assistance for those with difficulty 
     maintaining compliance. [Sec. 908]
       57. Strike Sec. 17(k), replacing with language requiring 
     States to provide sufficient training technical assistance 
     and to facilitate effective operation of the program. [Sec. 
     908]
       58. Revise Sec. 17(m) to provide that accounts and records 
     be available at any ``reasonable time.'' [Sec. 908]
       59. Strike Sec. 17(o) to modify provision to limit 
     eligibility to day care centers providing services to 
     chronically impaired disabled persons. [Sec. 908]
       60. Strike Sec. 17(q). Obsolete (provisions for WIC 
     information). [Sec. 908]
       61. Strike Sec. 18(a) to eliminate the 3 State evaluation 
     of effect of Secretary contracting with vendors to act as 
     States in administering programs not administered by States. 
     [Sec. 909]
       62. Strike Sec. 18(d)(3)(A),(B),(C) to eliminate the 
     universal free pilot. [Sec. 909]
       63. Revise Sec. 18(e) to make the demonstration project for 
     outside school hours discretionary. [Sec. 909]
       64. Strike Sec. 18(g) and (h) dealing with additional food 
     choices: Fruits, vegetables, cereals, organic foods and low 
     fat dairy products. [Sec. 909]
       65. Strike Sec. 18(i) to eliminate Paperwork reduction 
     pilot. [Sec. 909]
       66. Repeal Section 19. [Sec. 910]
       67. Repeal Section 23. Obsolete. [Sec. 911]
       68. Repeal Section 24. [Sec. 912]
       69. Repeal Section 26. [Sec. 913]


        12. Authorization for School-Based Nutrition Block Grant

                             A. Entitlement

     Present law
       States are entitled to ``performance-based'' funding 
     according to the number and type of meals and supplements 
     served under school-based programs authorized by the National 
     School Lunch and Child Nutrition Acts.
     House bill
       ``Entitles'' each State that submits an annual application 
     (see item 14) to receive an annual school-based nutrition 
     grant for the purpose of achieving the goals of the School-
     Based Nutrition Block Grant Program (see item 12D for the 
     program's goals and item 13 for State entitlement 
     allotments).
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                 B. Requirement To Provide Commodities

     Present law
       The Secretary of Agriculture is required to ensure that no 
     less than 12% of the total amount of ``entitlement'' 
     commodity and cash assistance for the School Lunch program is 
     in the form of commodity support (including cash in lieu of 
     commodities in the limited instances where available and 
     administrative costs for procuring commodities). [Sec. 6(g) 
     of the National School Lunch Act]
     House bill
       Requires that 9% of the amount of assistance available 
     under the school-based block grant be in the form of 
     commodities.
     Senate amendment
       No directly comparable provision. [Note: See item 26]
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11)

               C. The School-Based nutrition Block grant

     Present law
       Federal funds for activities under existing law replaced by 
     the House bill's school-based grant are authorized at such 
     sums as are necessary and provided based on the number of 
     meals, supplements, and half-pints of milk served.
       The Secretary is required to make school lunch and school 
     breakfast funding and commodities available to Defense 
     Department overseas dependents' schools to the same degree as 
     other schools. [Sec. 20 of the National School Lunch Act and 
     Sec. 20 of the Child Nutrition Act]
     House bill
       Provides that the annual total school-based block grant 
     provided States as their ``entitlement'' will be: $6.681 
     billion for fiscal year 1996, $6.956 billion (fiscal year 
     1997), $7.237 billion (fiscal year 1998), $7.538 billion 
     (fiscal year 1999), and $7.849 billion (fiscal year 2000).
       For each fiscal year, requires the Secretary to reserve 
     from the total entitlement an amount determined necessary, in 
     consultation with the Secretary of Defense, to establish and 
     carry out nutritious food service programs at Defense 
     Department overseas dependents' schools.
       Permits States to obligate payments under a school-based 
     nutrition grant in the succeeding fiscal year.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                                D. Goals

     Present law
       The National School Lunch Act declares it the policy of 
     Congress, as a measure of national security, to safeguard the 
     health and well-being of the Nation's children and to 
     encourage the domestic consumption of agricultural 
     commodities by assisting States through grants and other 
     means in providing support for the establishment, 
     maintenance, operation, and expansion of nonprofit school 
     lunch programs. [Sec. 2 of the National School Lunch Act]
     House bill
       Establishes the goals of the School-Based Block Grant 
     Program:
       (1) to safeguard the health and well-being of children 
     through the provision of nutritious, well-balanced meals and 
     food supplements;
       (2) to provide economically disadvantaged children (see 
     item 21B for definition) access to nutritious free or low-
     cost meals, food supplements, and low-cost milk;
       (3) to ensure that children served under the School-Based 
     Block Grant program are receiving the nutrition they require 
     to take advantage of educational opportunities;
       (4) to emphasize foods that are naturally good sources of 
     vitamins and minerals over enriched foods and those high in 
     fat or sodium content;
       (5) to provide a comprehensive school nutrition program for 
     children; and
       (6) to minimize paperwork burdens and administrative 
     expenses for participating schools.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                         E. Timing of Payments

     Present law
       No provision.
     House bill
       Directs that the Secretary of Agriculture make school-based 
     nutrition grant payments to the States on a quarterly basis.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


          13. allotment of school-based nutrition block grant

     Present law
       Current activities that may be funded under the House 
     bill's School-Based Nutrition Block Grant program include 
     those now supported by the School Lunch and Breakfast 
     programs, and school-sponsored programs under the Child and 
     Adult Care Food program, the Summer Food Service program, and 
     the Special Milk program.
       In all cases, ``performance funding'' is provided for each 
     meal, supplement, or half-pint of milk served by 
     participating schools, at legislatively established, 
     inflation indexed rates.
     House bill
       As set forth below, provides for the Secretary of 
     Agriculture to make State allotments of the School-Based 
     Nutrition Block Grant entitlement.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration 

[[Page H15460]]
     program and making changes to National School Lunch Act (see item 11).

                     A. First Year State Allotments

     Present law
       No provisions.
     House bill
       For the first fiscal year in which grants are made, 
     provides that the Secretary make allotments to States based 
     on the proportion of funds each State received under prior 
     law for the preceding fiscal year.
       Base-year State Shares: Each State's allotment would be its 
     prior-year share of funds received under the School Lunch and 
     Breakfast programs, plus 12.5% of the amounts received under 
     the Child and Adult Care Food, Summer Food Service, and 
     Special Milk programs.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                    B. Second Year State Allotments

     Present law
       No provision.
     House bill
       For the second fiscal year in which grants are made, 
     provides that (1) 95% of the total entitlement amount be 
     allotted to each State's share of the amount allotted in the 
     first year and (2) 5% of the entitlement amount allotted be 
     based on each State's share of the number of meals served 
     under the grant during the 1-year period ending the preceding 
     June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

               C. Third and Fourth Year State Allotments

     Present law
       No provision.
     House bill
       For the third and fourth fiscal years in which grants are 
     made, provides that (1) 90% of the total entitlement amount 
     be allotted according to each State's share of the amount 
     allotted in the preceding year and (2) 10% of the entitlement 
     amount allotted be based on each State's share of the number 
     of meals served under the grant during the 1-year period 
     ending the preceding June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch (see item 11).

                     D. Fifth Year Sale Allotments

     Present law
       No provision.
     House bill
       For the fifth fiscal year in which grants are made, 
     provides that (1) 85% of the total entitlement amount be 
     allotted according to each State's share of the amount 
     allotted in the fourth year and (2) 15% of the entitlement 
     amount allotted be based on each State's share of the number 
     of meals served under the grant during the 1-year period 
     ending the preceding June 30.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


           14. Application for School-Based Nutrition Grants

     Present law
       Nutrition requirements for school-provided meals are 
     established by the Secretary of Agriculture on the basis of 
     tested nutritional research, are not to be construed to 
     prohibit substitution of foods to accommodate medical or 
     other special dietary needs, must, at a minimum, be based on 
     the weekly average nutrient content of school lunches, and 
     may, with certain limits on how schools may be required to 
     implement them, be based on the Federal ``Dietary Guidelines 
     for Americans.'' [Sec. 9(a) and Sec. 12(k) of the National 
     School Lunch Act, and Sec. 4(e) of the Child Nutrition Act]
       The use/disclosure of information obtained from 
     applications for free/reduced-price meals is limited to those 
     administering and/or enforcing child nutrition programs, 
     administrators of other health or education programs (with 
     restrictions), and the General Accounting Office and law 
     enforcement officials. [Sec. 9(b) of the National School 
     Lunch Act]
     House bill
       Provides that the Secretary make a school-based nutrition 
     grant to a State if it submits an application containing only 
     the following:
       (1) an agreement that the State will use the grant in 
     accordance with the School-Based Block Grant program 
     requirements (see item 15);
       (2) an agreement that the State will set minimum nutrition 
     requirements for meals provided under the grant based on the 
     most recent tested nutrition research available (but the 
     requirements could not be construed to prohibit the 
     substitution of foods to accommodate medical or other special 
     dietary needs and would have to be based, at a minimum, on 
     the weekly average nutrient content of school lunches or 
     other standards set by the State);
       (3) an agreement that, with respect to provision of meals 
     to students, the State will implement minimum nutrition 
     requirements based on the most recent tested nutrition 
     research available or the model nutrition standards 
     development by the National Academy of Sciences (see item 
     20);
       (4) an agreement that the State will take reasonable steps 
     it deems necessary to restrict the use and disclosure of 
     information about those receiving assistance under the grant;
       (5) an agreement that the State will not use more than 2% 
     of its grant for administrative costs incurred to provide 
     assistance; and
       (6) an agreement that the State will submit an annual 
     report to the Secretary (see item 16).
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).


  15. use of amounts provided under the school-based nutrition block 
                                 grant

                        A. Activities Supported

     Present law
       The School Lunch and Breakfast programs provide Federal 
     support to schools for nonprofit meal services to 
     schoolchildren. In addition, to a more limited degree, 
     schools offer (and receive Federal subsidies for) after-
     school food assistance, milk service, and summer food service 
     programs.
     House bill
       Provides that the Secretary of Agriculture make school-
     based nutrition grants to States if they agree to use their 
     grant to provide assistance to schools for nutritious food 
     service programs that provide affordable meals and 
     supplements to students, including nonprofit:
       (1) school breakfast programs;
       (2) school lunch programs;
       (3) before and after school supplement programs;
       (4) low-cost milk services; and
       (5) summer meal programs.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).

                       B. Additional Requirements

     Present law
       Under the School Lunch and Breakfast programs, and after-
     school assistance, milk service, and summer food service 
     programs, schools are provided with specific Federal 
     reimbursements for free and reduced-price meals, supplements, 
     and milk for lower-income children (with family income below 
     185% of poverty) that are higher than those granted for 
     ``paid'' meals, supplements, and milk provided those with 
     higher income.
     House bill
       Requires that each State ensure that not less than 80% of 
     its school-based grant is used to provide free or low-cost 
     meals to economically disadvantaged children (see item 21 for 
     definitions).
       Requires that each State ensure that nutritious food 
     service programs are established and carried out in private 
     nonprofit and Defense Department domestic dependents' schools 
     on an equitable basis with programs in public schools in the 
     State--to the extent consistent with the number of children 
     in these schools and after consultation with representatives 
     of the schools (see item 18).
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).

  C. Authority to Use School-Based Nutrition Block Grant Amounts for 
                             Other Purposes

     Present law
       No provision.

                         (2) Sufficient funding

       No provision.

                  (3) Amounts used for other purposes

         No provision.
     House Bill
       Allows States to use not more than 20% of amounts received 
     from a school-based nutrition grant for any fiscal year to 
     carry out State programs under other block grants authorized 
     by:
       (1) part A of title IV of the Social Security Act (relating 
     to welfare for families with children);
       (2) part B of title IV of the Social Security Act (relating 
     to provision of child welfare services);
       (3) title XX of the Social Security Act (relating to 
     provision of social services); 
     
[[Page H15461]]

       (4) the Child Nutrition Act of 1966 (relating to family 
     nutrition block grants); and
       (5) the Child Care and Development Block Grant.
       Provides that States may not transfer funds to other block 
     grants unless the appropriate State agency makes 
     determination that sufficient funds will remain available for 
     the fiscal year to carry out activities under the School-
     Based Block Nutrition Block Grant Program.
       Provides that school-based nutrition block grant amounts 
     States transfer to other block grants (noted above) will not 
     be subject to the requirements of the School-Based Nutrition 
     Block Grant program under the revised National School Lunch 
     Act, but will be subject to the requirements that apply to 
     Federal funds provided directly to the block grant to which 
     they are transferred.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).

               D. Limitation on Provision of Commodities

     Present law
       Certain schools receive cash or commodity letters of credit 
     in lieu of entitlement commodities (so-called ``Cash/CLOC'' 
     schools). [Sec. 18(b) of the National School Lunch Act]
     House Bill
       Provides that States may to require current Cash/CLOC 
     schools to accept commodities in lieu of cash or commodity 
     letters of credit.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).

E. Segregation/Identification of Children Eligible for Free or Low-Cost 
                          Meals or Supplements

     Present law
       Schools may not physically segregate, overtly identify, or 
     otherwise discriminate against any child eligible for free or 
     reduced-price lunches. [Sec. 9(b)(4) of the National School 
     Lunch Act]
     House Bill
       Requires States to ensure that schools receiving school-
     based nutrition grant assistance do not physically segregate, 
     overtly identify, or otherwise discriminate against children 
     eligible for free or low-cost meals or supplements.
     Senate amendment
       No Comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).


                              16. reports

     Present law
       No comparable provision.
     House bill
       Requires that States, as a condition of receiving a school-
     based nutrition grant, agree to submit an annual report to 
     the Secretary of Agriculture describing:
       (1) the number of individuals receiving assistance under 
     the grant for the reporting (fiscal) year;
       (2) the different types of assistance provided;
       (3) the total number of meals served to students under the 
     grant, including the percentage served to economically 
     disadvantaged students;
       (4) the extent to which the assistance provided was 
     effective in achieving the goals of the School-Based 
     Nutrition Block Grant program (see item 12D);
       (5) the standards and methods the State is using to ensure 
     the nutritional quality of assistance under the grant; and
       (6) any other information that can be reasonably required 
     by the Secretary.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).


                             17. penalties

                       A. Penalty for Violations

     Present law
       [Note: See item 7.]
     House bill
       Requires the Secretary of Agriculture to reduce the school-
     based nutrition grant amount otherwise payable to a State by 
     any amount paid under the grant that an audit made under the 
     ``Single Audit Act'' (chapter 75 of title 31 of the United 
     States Code) finds has been used in violation of the revised 
     National School Lunch Act. However, the Secretary is barred 
     from reducing any quarterly payment to the State by more than 
     25%.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).

           B. Penalty for Failure to Submit a Required Report

     Present law
       No specific provision.
     House bill
       Requires the Secretary to reduce by 3% the school-based 
     nutrition grant amount otherwise payable to a State for any 
     fiscal year if the Secretary determines that the State has 
     not submitted the required annual report (see item 16) for 
     the immediately preceding fiscal year within 6 months after 
     the end of that fiscal year.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item #11).


 18. Federal Assistance for Children in Private Nonprofit Schools and 
            Defense Department Domestic Dependents' Schools

     Present law
       Where States are by law precluded from providing child 
     nutrition assistance to certain types of schools (e.g. 
     private nonprofit schools), the Secretary is authorized to 
     provide assistance directly.
     House bill
       If a State is precluded by law from providing assistance 
     under the school-based nutrition grant to nonprofit private 
     schools or Defense Department domestic dependents' schools, 
     or the Secretary has determined that the State has 
     substantially failed or is unwilling to provide assistance to 
     the schools, requires the Secretary to arrange for provision 
     of school-based nutrition assistance to the schools, after 
     consultation with appropriate school representatives. In the 
     case that the Secretary provides assistance to private 
     nonprofit schools or Defense Department domestic dependents' 
     schools, the State's school-based nutrition grant would be 
     reduced to reflect the assistance provided.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


 19. Food Service Programs for Defense Department Overseas Dependents' 
                                Schools

                             A. Assistance

     Present law
       [Note: See item 12C(2)]
     House bill
       Requires the Secretary to make available to the Secretary 
     of Defense funds and commodities (as determined by the 
     Secretary in consultation with the Secretary of Defense, and 
     reserved from the total school-based grant) for establishing 
     and carrying out nutritious food service programs providing 
     affordable meals and supplements to students in Defense 
     Department overseas dependents' schools.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                            B. Requirements

     Present law
       Federally subsidized school meal programs in Defense 
     Department overseas dependents' schools must meet the same 
     requirements as programs in domestic schools.
     House bill
       In carrying out food service programs in Defense Department 
     overseas dependents' schools, requires the Secretary of 
     Defense to (1) ensure that not less than 80% of the 
     assistance is used to provide free or low-cost meals and 
     supplements to economically disadvantaged children (see item 
     21B for definition) and (2) the schools will implement 
     minimum nutrition requirements in the same way domestic 
     schools receiving assistance under the school-based nutrition 
     grant are required to (including optional use of model 
     nutrition standards).
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


            20. Model Nutrition Standards for Student Meals

                             A. Requirement

     Present law
       No comparable provisions. [Note: The Secretary establishes 
     nutrition standards for school meals.]
     House bill
       Not later than April 1, 1996, requires the National Academy 
     of Sciences to develop model nutrition standards for meals 
     provided to students under the School-Based Block Grant 
     Program. The standards are to be developed by the Food and 
     Nutrition Board of the Academy's Institute of Medicine, in 
     cooperation with nutritionists and directors of school meal 
     programs. 
     
[[Page H15462]]

     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).

                         B. Report to Congress

     Present law
       No provision.
     House bill
       Not later than one year after the model nutrition standards 
     (noted above) are developed, requires the National Academy of 
     Sciences to report to Congress regarding the efforts of 
     States to implement them.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


                            21. definitions

                        A. Schools and Secretary

     Present law
       In general, ``schools'' are defined as public or private 
     nonprofit elementary, intermediate, or secondary schools. The 
     ``Secretary'' is defined as the Secretary of Agriculture.
     House bill
       ``Schools'' and ``Secretary'' would be defined as having 
     the same meaning as in existing law. In addition, parallel 
     definitions are added for Defense Department domestic and 
     overseas dependents' schools.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item 11).

                     B. Economically Disadvantaged

     Present law
       No directly comparable provision. [Note: Subsidies are 
     provided for free and reduced-price meals served to children 
     with family income under 185% of the Federal poverty 
     guidelines. However, Federal school food service subsidies 
     are not limited to these lower-income children.]
     House bill
       The term ``economically disadvantaged'' is defined to apply 
     to individuals or families with annual income below 185% of 
     the Federal poverty guidelines. [Note: Assistance under the 
     School-Based Nutrition grant could be given to children with 
     family income above 185% of poverty.]
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item 11).

                                C. State

     Present law
       In general, for school food programs, ``State'' is defined 
     as the 50 States, the District of Columbia, Puerto Rico, the 
     Northern Marianas, American Samoa, and the Virgin Islands.
     House bill
       ``State,'' under the School-Based Nutrition grant, would 
     have the same meaning as in present law, except that Indian 
     tribal organizations (as defined under section 4(l) of the 
     Indian Self-Determination and Education Assistance Act) would 
     be included as States and could apply for grants.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see Item 11).


                             22. repealers

     Present law
       Not applicable.
     House bill
       Makes conforming technical amendments repealing the 
     Commodity Distribution Reform Act and WIC Amendments of 1987 
     and the Child Nutrition and WIC Reauthorization Act of 1989.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


                           23. effective date

     Present law
       Not applicable.
     House bill
       Makes amendments replacing Child Nutrition and National 
     School Lunch Act provisions with Family Nutrition and School-
     Based Nutrition Block Grants effective October 1, 1995.
     Senate amendment
       No comparable provision.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


              24. application of amendments and repealers

     Present law
       Not applicable.
     House bill
       Provides that amendments and repealers associated with 
     replacing Child Nutrition and National School Lunch Act 
     provisions with Family Nutrition and School-Based Nutrition 
     Block Grants not apply with respect to (1) financial 
     assistance provided under prior law and (2) administrative 
     actions or proceedings commenced or authorized to be 
     commenced before the effective date.
     Senate amendment
       No comparable provisions.
     Conference agreement
       Senate recedes with an amendment creating an optional block 
     grant demonstration program and making changes to National 
     School Lunch Act (see item 11).


25. termination of additional payments for lunches served in high free 
                and reduced price participation schools

     Present law
       Lunches served by school food authorities where 60 percent 
     or more of the lunches are served free or at a reduced price 
     (to children with family income below 185 percent of the 
     Federal poverty income guidelines) are reimbursed at a rate 2 
     cents a meal higher than regular subsidy rates. [Sec. 4(b) of 
     the National School Lunch Act]
     House bill
       No comparable provision.
     Senate amendment
       Effective July 1, 1996 (the 1996-1997 school year), ends 
     the extra 2-cent-a-lunch reimbursement to schools with high 
     rates of free and reduced-price participation.
     Conference agreement
       Senate recedes.


                      26. Value of Food Assistance

     Present law
       Schools and certain other child nutrition sponsors are 
     ``entitled'' to commodities valued at a legislatively set, 
     inflation-indexed amount per meal served. The per-meal 
     reimbursement rate is indexed annually to reflect the annual 
     percentage change in a 3-month average value of the Price 
     Index for Food Used in Schools and Institutions, and rounded 
     to the nearest \1/4\ cent. [Sec. 6(e) of the National School 
     Lunch Act]
     House bill
       No directly comparable provision. [Note: See item 12B.]
     Senate amendment
       Freezes (for one year) the guaranteed per-meal 
     reimbursement rate for entitlement commodity assistance and 
     revises (by changing rounding rules) the method of 
     calculating this reimbursement rate.
       On January 1, 1996, the entitlement commodity reimbursement 
     rate set under current law for the 1995-1996 school year (as 
     rounded to the nearest \1/4\ cent) would be rounded down to 
     the nearest lower cent. For the 1996-1997 school year, the 
     rate would be frozen at the rate for the 1995-1996 school 
     year (as rounded down to the nearest lower cent). For the 
     1997-1998 school year, the rate would be the unrounded rate 
     for the 1995-1996 school year, adjusted for inflation over 
     the most recent 12-month period and rounded down to the 
     nearest lower cent. For following school years, the rate 
     would be the unrounded rate for the preceding year, adjusted 
     for inflation over the most recent 12-month period and 
     rounded down to the nearest lower cent. (p. 348)
       [Note: Current-law rules as to the inflation-adjustment 
     factor to be used (i.e., the Price Index for Food Used in 
     Schools and Institutions) are not changed.]
     Conference agreement
       Senate recedes.


                27. Lunches, Breakfasts, and Supplements

     Present law
       ``Paid'' lunches, breakfasts, and supplements are served to 
     those with family income above 185 percent of the Federal 
     poverty guidelines. Guaranteed Federal reimbursement rates 
     for each paid lunch, breakfast, and supplement are indexed 
     annually to reflect changes in the food away from home series 
     of the Consumer Price Index. When indexed, all reimbursement 
     rates (i.e., for paid, free, and reduced-price meals and 
     supplements) are rounded to the nearest \1/4\ cent. [Sec. 
     11(a) of the National School Lunch Act]
     House bill
       No comparable provisions.
     Senate amendment
       Freezes (for two years) reimbursement rates for paid 
     lunches, breakfasts, and supplements. Revises (by changing 
     rounding rules) the method for calculating reimbursement rate 
     for paid, free, and reduced-price lunches, breakfasts, and 
     supplements. [Note: Reimbursement rates for meals and 
     supplements served in family day care homes and the Summer 
     Food Service program are and would be governed by separate 
     provisions of law (see below).]
       On January 1, 1996, reimbursement rates for paid, free, and 
     reduced-price lunches, breakfasts, and supplements set under 
     current law for the 1995-1996 school year (as rounded to the 
     nearest \1/4\ cent) would be rounded down to the nearest 
     lower cent. For 

[[Page H15463]]
     the 1996-1997 and 1997-1998 school years, the reimbursement rates for 
     paid lunches, breakfasts, and supplements would be frozen at 
     the rates for the 1995-1996 school year (as rounded down to 
     the nearest lower cent). For the 1998-1999 school year, the 
     reimbursement rates for paid lunches, breakfasts, and 
     supplements would be the unrounded rates for the 1995-1996 
     school year adjusted for inflation over the most recent 12-
     month period for which data are available, and rounded down 
     to the nearest lower cent. For following school years, the 
     reimbursement rates for paid lunches, breakfasts, and 
     supplements would be the unrounded rates for the preceding 
     year adjusted for inflation over the most recent 12-month 
     period, and rounded down to the nearest lower cent.
       Reimbursement rates for free and reduced-price lunches, 
     breakfasts, and supplements would continue to be indexed 
     annually for inflation each school year (i.e., no two-year 
     freeze), but would be rounded down to the nearest lower cent. 
     [Note: Current-law rules as to the inflation-adjustment 
     factor to be used (i.e., the food away from home series of 
     the Consumer Price Index) are not changed.]
     Conference agreement
       Senate recedes.


              28. summer food service program for children

     Present law
       Under the Summer Food Service program, all meals and 
     supplements served are federally subsidized at legislatively 
     set, inflation-indexed rates that, for the 1995 summer (set 
     in January 1995), were $2.12 for each lunch/supper, $1.18 for 
     each breakfast, and 55.5 cents for each supplement. In 
     addition, sponsors receive payments for administrative costs 
     based on the number of meals/supplements served. Basic 
     Federal payments for lunches, breakfasts, and supplements are 
     indexed for inflation annually based on the food away from 
     home series of the Consumer Price Index, and rounded to the 
     nearest \1/4\ cent. [Sec. 13(b) of the National School Lunch 
     Act]
     House bill
       No comparable provisions.
     Senate amendment
       Establishes new, lower reimbursement rates for meals and 
     supplements served in the Summer Food Service program as 
     follows: $2 for lunches/suppers, $120 for breakfasts, and 50 
     cents for supplements. The new rates would become effective 
     January 1, 1996 (for the 1996 summer program), and be 
     adjusted each January thereafter to reflect changes in the 
     food away from home series of the Consumer Price Index (as 
     under current law). However, while each adjustment would be 
     based on the unrounded rates for the prior 12-month period, 
     it would be rounded down to the nearest cent. [Note: 
     Additional administrative-cost payment rates to sponsors are 
     not affected.]
     Conference agreement
       House recedes with an amendment establishing new, lower 
     rates for meals and supplements served in the Summer Food 
     service program as follows: $1.82 for lunches served; $1.13 
     each breakfast served and $.46 for each meal supplement 
     served. [Sec. 906(b)]


                        29. special milk program

     Present law
       Under the Special Milk program, the minimum per-half-pint 
     reimbursement rate is indexed annually to reflect changes in 
     the Producer Price Index for Fresh Processed Milk, and 
     rounded to the nearest \1/4\ cent. [Sec. 3(a) of the Child 
     Nutrition Act]
     House bill
       No comparable provisions.
     Senate amendment
       Freezes (for one year) the minimum per-half-pint 
     reimbursement rate and revises (by changing rounding rules) 
     the method of calculating the reimbursement rate.
       On Jan. 1, 1996, the minimum reimbursement rate set under 
     current law for the 1995-1996 school year (as rounded to the 
     nearest \1/4\ cent) would be rounded down to the nearest 
     cent. For the 1996-1997 school year, the minimum 
     reimbursement rate would be frozen at the rate for the 1995-
     1996 school year (as rounded down to the nearest cent). For 
     the 1997-1998 school year, the minimum reimbursement rate 
     would be the unrounded rate for the 1995-1996 school year 
     adjusted for inflation over the most recent 12-month period 
     for which data are available, and rounded down to the nearest 
     lower cent. For following school years, the minimum 
     reimbursement rate would be the unrounded rate for the 
     preceding year adjusted annually for inflation, and rounded 
     down to the nearest lower cent. [Note: Current-law rules as 
     to the inflation adjustment factor to be used (i.e., the 
     Producer Price Index for Fresh Processed Milk) are not 
     changed.]
     Conference agreement
       Senate recedes.


                 30. free and reduced price breakfasts

     Present law
       Reimbursement rates for free and reduced-price breakfasts 
     are indexed annually for inflation and rounded to the nearest 
     \1/4\ cent. [Sec. 4(b) of the Child Nutrition Act]
     House bill
       No comparable provision.
     Senate amendment
       Requires that annual adjustments to reimbursement rates for 
     free and reduced-price breakfasts be based on the previous 
     year's unrounded rates and, after adjustment for inflation, 
     rounded down to the nearest lower cent.
     Conference agreement
       Senate recedes.


      31. Conforming Reimbursement for Paid Breakfasts and Lunches

     Present law
       The per-meal reimbursement for paid breakfasts (paid meals 
     are those served to children with family income above 185 
     percent of the Federal poverty income guidelines) is higher 
     than the reimbursement rate for paid lunches--by about 2 
     cents a meal for the 1995-1996 school year. [Sec. 4(b) of the 
     Child Nutrition Act]
       [Note: The paid breakfast reimbursement rate is roughly the 
     same as the current-law paid lunch rate for schools with free 
     and reduced-price participation of 60 percent or more. This 
     special lunch rate would be eliminated under Sec. 401 of the 
     Senate amendment (see item 25).]
     House bill
       No comparable provision.
     Senate amendment
       Requires that the reimbursement rate for paid breakfasts be 
     the same as the rate for paid lunches.
     Conference agreement
       Senate recedes.


                  32. School Breakfast Startup Grants

     Present law
       The Secretary is required to make competitive grants to 
     help defray costs associated with starting or expanding 
     school breakfast and summer food service programs. Funding of 
     $5 million a year is provided through fiscal year 1997; $6 
     million is provided for fiscal year 1998; and $7 million a 
     year is provided for fiscal year 1999 and each subsequent 
     year. [Sec. 4(g) of the Child Nutrition Act]
     House bill
       No comparable provision.
     Senate amendment
       Repeals the startup/expansion competitive grant program.
     Conference agreement
       House recedes. [Sec. 923]


             33. Nutrition Education and Training Programs

     Present law
       The Secretary is required to make funding available to 
     States for child nutrition program nutrition education and 
     training activities. Funding of $10 million a year is 
     provided. [See. 19(i) of the Child Nutrition Act]
     House bill
       No comparable provision.
     Senate amendment
       Reduces the amount that must be provided for nutrition 
     education and training to $7 million a year.
     Conference agreement
       House recedes with an amendment eliminating mandatory 
     status. Authorizes appropriations of $10 million per year. 
     [Sec. 931]


                           34. Effective Date

     Present law
       Not applicable.
     House bill
       No comparable provision.
     Senate amendment
       Establishes Oct. 1, 1996 as the effective date for repeal 
     of the startup/expansion competitive grant program and 
     reduction of funding for nutrition education and training.
     Conference agreement
       Makes October 1, 1996 the effective date for reduction in 
     funding authority for nutrition education and training. [Sec. 
     931(g)]


              35. Free and Reduced Price Policy Statement

     Present law
       [Note: See note under Senate amendment.]
     House bill
       No comparable provision.
     Senate amendment
       Provides that, after initial submission, schools may not be 
     required to submit free and reduced-price policy statements 
     for the School Lunch and School Breakfast programs to State 
     education agencies--unless there is a substantive change in 
     the school's policy. Implementation of routine changes (such 
     as the annual adjustment in the income eligibility 
     guidelines) would not be sufficient cause to require 
     submission of a policy statement. [Note: Under current 
     regulations, annual submission of policy statements is 
     required.]
     Conference agreement
       House recedes. [Sec. 922]


              36. Summer Food Service Program for Children

                    A. Permitting Offer versus Serve

     Present law
       No provision. [Note: The ``offer versus serve'' option is 
     permitted in school meal programs.]
     House bill
       No comparable provision.
     Senate amendment
       Allows schools operating summer food service programs to 
     permit children attending a site on school premises to refuse 
     one item of a meal without affecting the Federal 
     reimbursement for the meal.
     
[[Page H15464]]

     Conference agreement
       House recedes. [Sec. 906(g)]

              B. Removing Mandatory Notice to Institutions

     Present law
       Under the Summer Food Service program, States must submit 
     to the Secretary, by February 15 of each year, a plan and 
     schedule for informing service institutions of the 
     availability of the program. [Sec. 13(n) of the National 
     School Lunch Act]
     House bill
       No comparable provision.
     Senate amendment
       Prohibits the Secretary from requiring States to submit 
     their plans and schedules for informing institutions of the 
     availability of the Summer Food Service program.
     Conference agreement
       House recedes. [Sec. 906(k)]


                 37. child and adult care food program

                    A. Payments to Sponsor Employees

     Present law
       No provision.
     House bill
       No comparable provision.
     Senate amendment
       Bars Child and Adult Care Food program sponsoring 
     organizations with more than one employee from basing 
     payments to employees on the number of family/group day care 
     homes recruited.
     Conference agreement
       House recedes. [Sec. 908(b)]

         B. Improved Targeting of Day Care Home Reimbursements

     Present law
       Federal reimbursement rates for meals and supplements 
     served in family/group day care homes are standard for all 
     homes, established separately from those for day care 
     centers, not differentiated by the participating children's 
     family income (as is the case for day car centers), and set 
     approximately half-way between reimbursements for free and 
     reduced-price meals/supplements in day care centers. They are 
     indexed for inflation each July 1 (see item 36B(2)), and for 
     the period July 1995-June 1996, they are: $1.5375 for all 
     lunches/suppers, 84.5 cents for all breakfasts, and 45.75 
     cents for all supplements. Family/group day care home 
     sponsors also receive separate administrative cost 
     reimbursements based on the number of homes sponsored. [Sec. 
     17(f) of the National School Lunch Act]
       Meal and supplement reimbursements for family/group day 
     care homes are indexed annually to reflect changes in the 
     Consumer Price Index for food away from home and rounded to 
     the nearest \1/4\ cent. [Sec. 17(f) of the National School 
     Lunch Act]
     House bill
       No comparable provisions.
     Senate amendment
       Restructures reimbursements for meals and supplements 
     served in family/group day care homes. In general, homes 
     would be divided into two ``tiers,'' one of which would 
     receive current-law reimbursements (with indexing 
     adjustments, see item 37B(2) for changes in inflation 
     indexing rules) and the other which would receive lower 
     reimbursements as set out under the Senate amendment. [Note: 
     Separate payments to sponsors based on the number of homes 
     sponsored are not changed, and current rules barring certain 
     documents requirements and reimbursements for meals/
     supplements served to providers' children are retained.]
       Tier I homes would be paid the meal/supplement 
     reimbursements for family/group homes in effect on the date 
     of enactment, adjusted on August 1, 1996, and each July 1 
     thereafter, to reflect inflation for the most recent 12-month 
     period for which data are available.
       Tier I homes would be those (1) located in areas, as 
     defined by the Secretary based on Census data, in which at 
     least half of the children are members of households with 
     income below 185 percent of the Federal poverty income 
     guidelines, (2) located in an area served by a school 
     enrolling elementary students in which at least 50 percent of 
     those enrolled are certified eligible for free or reduced-
     price school meals (i.e., have family income below 185 
     percent of the Federal poverty guidelines), or (3) operated 
     by a provider whose family income is verified by its 
     sponsoring organization to be below 185 percent of the 
     poverty guidelines.
       In general, tier II homes would be paid reimbursements of 
     $1 for each lunch/supper, 30 cents for each breakfast, and 15 
     cents for each supplement (all substantially below tier I 
     rates), adjusted on July 1, 1997, and each July 1 thereafter, 
     to reflect inflation for the most recent 12-month period for 
     which data are available.
       Tier II homes would be homes that do not meet the tier I 
     low-income area/provider standards.
       Tier II homes could, at their option, claim higher tier I 
     reimbursement rates under certain conditions: Tier II homes 
     could elect to receive tier I reimbursements for meals/
     supplements served to children in households with income 
     below 185 percent of the poverty guidelines, if the 
     sponsoring organization collects the necessary income 
     information and makes the appropriate eligibility 
     determinations (in accordance with the Secretary's rules). 
     Tier II homes also could receive tier I reimbursements for 
     children in or subsidized under (or children of parents in or 
     subsidized under) federally or State supported child care or 
     other benefit programs with an income limit that does not 
     exceed 185 percent of the poverty guidelines, and could 
     restrict their claim for tier I reimbursements to these 
     children if they opt not to have income statements collected 
     from parents/caretakers.
       The Secretary would be required to prescribe ``simplified'' 
     meal counting/reporting procedures for use by tier II homes 
     (and their sponsors) that elect to claim tier I 
     reimbursements for children meeting the income or program 
     participation requirements noted above. These procedures 
     could include: (1) setting an annual percentage of meals/
     supplements to be reimbursed at tier I rates based on the 
     family income of children enrolled during a specific month or 
     other period, (2) placing a home in a reimbursement category 
     based on the percentage of children with household income 
     below 185 percent of poverty, or (3) other procedures 
     determined by the Secretary.
       The Secretary also would be permitted to establish minimum 
     requirements for verifying income and program participation 
     for children in tier II homes opting to claim tier I 
     reimbursement rates.
       Requires that reimbursements for family/group day care 
     homes be indexed annually to reflect changes in the Consumer 
     Price Index for food at home, based on the unrounded rates 
     for the preceding 12-month period, and then rounded down to 
     the nearest lower cent.
       Requires the Secretary to reserve, from amounts available 
     for the Child and Adult Care Food program in fiscal year 
     1996, $5 million--to provide grants for (1) training, 
     materials, computer and other assistance to sponsoring 
     organization staff and (2) training and other aid to family/
     group day care homes in implementing the new reimbursement-
     rate structure directed by the Senate amendment. The funds 
     would be allocated among the States based on their proportion 
     of participating homes, with a minimum of $30,000 as a 
     State's base funding share, and State would not be allowed to 
     retain more than 30 percent of their grant at the State level 
     (passing the remainder to sponsors and providers).
       Requires (1) the Secretary to provide State agencies with 
     Census data necessary for determining homes' tier I status 
     and (2) State agencies to provide the data to day care home 
     sponsoring organizations.
       Requires State agencies administering school meal programs 
     to provide approved day care home sponsoring organizations a 
     list of schools serving elementary school children in which 
     at least half those enrolled are certified to receive free or 
     reduced-price meals (one test for an area eligible for tier I 
     reimbursements). The data for the list must be collected 
     annually and provided on a timely basis to any requesting 
     approved sponsoring organization.
       Provides that, in determining homes' tier I status, State 
     agencies and sponsoring organizations must use the most 
     current data available.
       Provides that a determination that a home is located in an 
     area that qualifies it as a tier I home be in effect for 
     three years, unless the State agency determined the area no 
     longer qualifies the home. In the case of a determination 
     made in on the basis of Census data, the determination is to 
     be in effect until more recent data are available.
       Makes conforming technical amendments recognizing the new 
     structure of family/group day care home reimbursement rates.
     Conference agreement
       House recedes with an amendment accepting Senate provisions 
     and establishing new lower reimbursement rates for tier II 
     homes for meals and supplements as follows: $90 for each 
     lunch and supper; $.25 for each breakfast; and $.10 for 
     supplements. [Sec. 908(e)]

                       C. Disallowing Meal Claims

     Present law
       No specific provision.
     House bill
       No comparable provision.
     Senate amendment
       Makes clear that States and sponsoring organizations may 
     recoup reimbursements to day care home providers for 
     improperly claimed meals/supplements.
     Conference agreement
       Senate recedes with an amendment that deletes advance 
     payments to sponsors. [Sec. 908(f)]

         D. Elimination of State Paperwork and Outreach Burden

     Present law
       Provisions of the National School Lunch Act require (1) 
     States to take affirmative action to expand availability of 
     the Child and Adult Care Food program's benefits (including 
     annual notification of all nonparticipating family/group day 
     care home providers), (2) the Secretary to conduct 
     demonstration projects to test approaches to removing or 
     reducing barriers to participation by homes that operate in 
     low-income areas or primarily serve low-income children, (3) 
     the Secretary and States to provide training and technical 
     assistance to sponsoring organizations in reaching low-income 
     children, and (4) the Secretary to instruct States to provide 
     information/training about child health and development 
     through sponsoring organizations. [Sec 17(k) of the National 
     School Lunch Act]
     House bill
       No comparable provision. 
     
[[Page H15465]]

     Senate amendment
       Repeals existing ``outreach'' requirements noted under 
     present law and requires that (1) States provide sufficient 
     training, technical assistance, and monitoring to facilitate 
     effective operation of the Child and Adult Care Food Program 
     and (2) the Secretary assist States in carrying out this 
     obligation.
     Conference agreement
       House recedes. [Sec. 908(h)]

 E. Study of Impact of Amendments on Program Participation and Family 
                          Day Care Licensing.

     Present law
       No provision.
     House bill
       No comparable provision.
     Senate amendment
       Not later than two years after the date of enactment, 
     requires the Secretary of Agriculture, in conjunction with 
     the Secretary of Health and Human Services, to study the 
     impact of the revisions to the Child and Adult Care Food 
     program under the Senate amendment on:
       (1) the number of participating family day care homes, day 
     care home sponsoring organizations, and day care homes that 
     are licensed, certified, registered, or approved by each 
     State;
       (2) the rate of growth in the number of participating 
     homes, sponsors, and licensed, certified, registered, or 
     approved homes;
       (3) the nutritional adequacy/quality of meals served in 
     family day care homes that no longer receive reimbursements 
     or no longer receive ``full'' reimbursements: and
       (4) the proportion of low-income children participating in 
     the program. (p. 377)
       Requires each State agency to submit data on (1) the number 
     of participating family day care homes on July 31, 1996, and 
     July 31, 1997, (2) the number of licensed, certified, 
     registered, or approved family day care homes on July 31, 
     1996, and July 31, 1997, and (3) other matters needed to 
     carry out the study as required by the Secretary.
     Conference agreement
       House recedes. [Sec. 908(n)]

                   F. Effective Date and Regulations

     Present law
       Not applicable.
     House bill
       No comparable provisions.
     Senate amendment
       Establishes the effective date for changes in the family/
     group day care home reimbursement structure--August 1, 1996. 
     Other changes affecting the Child and Adult Care Food program 
     would be effective on enactment (e.g., grants to assist in 
     implementation of the changes, limits on payments to 
     sponsors' employees).
       Requires that, by February 1, 1996, the Secretary issue 
     interim regulations to implement (1) the changes in the 
     family/group day care home reimbursement structure and (2) 
     existing provisions of law for the use of sponsoring 
     organizations' administrative expense payments for startup/
     expansion and outreach and recruitment activities. Final 
     regulations would be required by August 1, 1996.
     Conference agreement
       House recedes. [Sec. 908(m)]


      38. reducing required reports to state agencies and schools

     Present law
       Not applicable.
     House bill
       No comparable provisions.
     Senate amendment
       Directs the Secretary to review all existing reporting 
     requirements placed on local providers (e.g., schools) under 
     the National School Lunch and Child Nutrition Acts and notify 
     the appropriate committees of Congress of those requirements 
     that are mandated by law, with recommendations as to whether 
     any should be eliminated because their contribution to 
     program effectiveness is not sufficient to warrant the 
     paperwork burden imposed. The Secretary also would be 
     required to provide justification for those reporting 
     requirements established solely by regulation. The review and 
     report would be due no later than one year after enactment.
     Conference agreement
       House recedes.


                      39. categorical eligibility

     Present law
       In general, children are categorically income eligible for 
     child nutrition programs, and women, infants, and children 
     for the WIC program, if they are recipients of AFDC benefits. 
     [Sec. 9(b) of the National School Lunch Act and Sec. 17(d) of 
     the Child Nutrition Act]
     House bill
       No comparable provisions.
     Senate amendment
       Amends the National School Lunch and Child Nutrition Acts 
     to (1) technically conform citations to the new family 
     assistance block grant (rather than the AFDC program) and (2) 
     make categorically eligible for child nutrition and WIC 
     programs only those recipients in family assistance block 
     grant programs that comply with standards established by the 
     Secretary of Agriculture to ensure that a State's family 
     assistance block grant program standards are comparable to or 
     more restrictive than those in effect for the AFDC program on 
     June 1, 1995.
     Conference agreement
       House recedes. [Sec. 109]

            Title X. Food Stamps and Commodity Distribution

                           Food Stamp Reform


                        1. declaration of policy

     Present law
       The Food Stamp Act's declared policy is to safeguard the 
     health and well-being of the Nation's population by raising 
     levels of nutrition among low-income households. To alleviate 
     hunger and malnutrition among low-income households with 
     limited food purchasing power, the Act authorizes the food 
     stamp program to permit low-income households to obtain a 
     more nutritious diet through normal channels of trade by 
     increasing the food purchasing power of all eligible 
     households who apply. [Sec. 2]
     House bill
       No comparable provision.
     Senate amendment
       Adds to the existing Food Stamp Act declaration of policy a 
     statement that Congress intends that the food stamp program 
     support the employment focus and family strengthening mission 
     of public welfare and welfare replacement programs by 
     facilitating transition to economic self-sufficiency through 
     work, promoting employment as the primary means of income 
     support and reducing barriers to employment, and maintaining 
     and strengthening healthy family functioning and family life.
     Conference agreement
       The Conference agreement follows the House bill.


                             2. short title

     Present law
       No provision.
     House bill
       Cites this subtitle as ``The Food Stamp Simplification and 
     Reform Act of 1995.''
     Senate amendment
       No comparable provision.
     Conference agreement
       The Conference agreement follows the House bill.


           3. establishment of simplified food stamp program

     Present law
       The Secretary is directed to establish uniform national 
     standards of eligibility for food stamps (with certain 
     variations allowed for Alaska, Hawaii, Guam, the Virgin 
     Islands, and certain administrative rules.). States may not 
     impose any other standards of eligibility as a condition for 
     participation in the program. [Sec. 5(b)]
     House bill
       Permits States to operate a ``simplified food stamp 
     program,'' either statewide or in any political subdivision. 
     Under this program, households receiving regular cash 
     benefits under the Temporary Assistance for Needy Families 
     (TANF) block grant established by title I of the Personal 
     Responsibility Act (replacing the current Aid to Families 
     with Dependent Children (AFDC) program) could be provided 
     food stamp benefits using the rules and procedures 
     established by the State for its TANF block grant program, as 
     an alternative to using regular food stamp rules.
     Senate amendment
       Explicitly permits non-uniform standards of eligibility. 
     [Note: Also see item 38]
     Conference agreement
       The Conference agreement follows the Senate amendment.


                    4. Simplified Food Stamp Program

                         A. Basic State Option

     Present law
       Households composed entirely of AFDC recipients are 
     automatically eligible for food stamps, with few exceptions 
     (e.g., aliens who do not meet the Food Stamp program's more 
     stringent rules barring illegal aliens). [Sec. 5(a)]
       As with other households, food stamp benefits for AFDC 
     households are determined under Food Stamp program rules 
     governing counting of income, expense deductions, and 
     procedural requirements.
     House bill
       [Note: Sec. 542(a) of the House bill adds a new section 24 
     to the Food Stamp Act containing rules for the Simplified 
     Food Stamp Program.]
       If a State elects to exercise its option to use its TANF 
     block grant rules and procedures for food stamp benefits, 
     requires that (1) households in which all members receive 
     regular cash benefits under a TANF block grant program be 
     automatically eligible for food stamps and (2) food stamp 
     benefits for them be determined under rules and procedures 
     established by the State or locality under the State's TANF 
     block grant program or the regular food stamp program.
     Senate amendment
       [Note: Sec. 342(a) of the Senate amendment adds a new 
     section 24 to the Food Stamp Act containing rules for the 
     Simplified Food Stamp Program]
       Permits a State to exercise an option to use rules and 
     procedures established for its family assistance block grant 
     (under title I of the Senate amendment) to determine food 
     stamp benefits for households in which all members receive 
     family assistance block grant aid: (1) households in which 
     all members receive aid under a family assistance block grant 
     program would be automatically eligible for food stamps; and 
     (2) their food stamp benefits could be determined by using 

[[Page H15466]]
     rules and procedures established by the State for its family assistance 
     block grant program, regular food stamp program rules and 
     procedures, or a combination of the two. States also would be 
     allowed to apply a single ``shelter standard'' to households 
     that receive a housing subsidy and another to households that 
     do not.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment deleting the specific reference to use of a 
     single shelter standard.

                        B. Federal Cost Control

     Present law
       No comparable provisions.
     House bill
       Requires that, when approving a State's plan to exercise 
     its option for a simplified food stamp program, the Secretary 
     certify that the average per-household food stamp benefit 
     received by participating TANF households is not expected to 
     exceed the average food stamp benefit level for AFDC or TANF 
     recipients in the preceding fiscal year--adjusted for any 
     changes in the ``Thrifty Food Plan'' (the basis for food 
     stamp benefit levels). The Secretary also is required to 
     compute the ``permissible'' average per-household benefit for 
     each State or locality exercising the simplified program 
     option.
       Requires that, if average food stamp benefits under the 
     simplified program exceed the permissible level (the Thrifty-
     Food-Plan-adjusted prior year amount), the State must pay the 
     Federal Government the benefit cost of the excess within 90 
     days of notification.
     Senate amendment
       Provides that a State may not operate a simplified food 
     stamp program unless it has an approved plan and requires the 
     Secretary to approve any State plan if the Secretary 
     determines it complies with the provisions of law governing 
     the simplified food stamp program option and would not 
     increase Federal costs under the Food Stamp Act. Federal 
     costs for this purpose are defined to exclude research, 
     demonstration, and evaluation costs.
       Requires the Secretary to determine whether a State's 
     simplified food stamp program is increasing Federal costs 
     under the Food Stamp Act. In making the determination, the 
     Secretary (1) could not required States to collect or report 
     any information on households not included in the simplified 
     food stamp program and (2) could approve State requests to 
     use alternative accounting periods. If the Secretary 
     determines that a simplified food stamp program has increased 
     Federal costs, the State must be notified by January 1 of the 
     succeeding fiscal year.
       If the Secretary determines that a simplified program has 
     increased Federal costs for a two-year period, the State must 
     pay the Federal Government the amount of any increased costs 
     within 90 days of the determination (or have amounts due it 
     for administrative costs reduced).
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment. The Secretary must, for each fiscal year, 
     determine whether a simplified program is increasing Federal 
     costs above those incurred under the food stamp program in 
     the fiscal year prior to implementation of the simplified 
     program, adjusted for changes in participation, the non-
     public-assistance income of participants, and the cost of the 
     Thrifty Food Plan. The Secretary must notify the State of a 
     determination of increased Federal costs, and the State must 
     submit for approval a corrective action plan designed to 
     prevent increased Federal costs. If a State fails to submit a 
     plan or carry out an approved plan, the Secretary must 
     terminate approval of the State's simplified program, and the 
     State is ineligible for future participation under simplified 
     program rules.

                          C. Disqualification

     Present law
       Households penalized for an intentional failure to comply 
     with a Federal, State, or local welfare program may not, for 
     the duration of the penalty, receive an increased food stamp 
     allotment because their welfare income has been reduced. 
     [Sec. 8(d)]
       [Note: This has been interpreted by regulation to apply 
     only to reductions in welfare income due to repayment of 
     overpayments resulting from a welfare violation, although a 
     revision of the regulation is scheduled.]
     House bill
       Provides that (1) households receiving food stamps under 
     the simplified program option who are sanctioned 
     (disqualified or have their benefits reduced) under a State's 
     TANF program may have the same penalty applied for food stamp 
     purposes and (2) food stamp benefits to households 
     participating under the simplified program option may not be 
     increased as the result of a reduction in their TANF benefits 
     caused by a sanction. Any household disqualified from food 
     stamps as the result of a TANF program sanctions would be 
     eligible to apply for food stamps (as a new applicant) after 
     the disqualification period has expired.
     Senate amendment
       [Note: See items 10 and 43.]
     Conference agreement
       The Conference agreement follows the Senate amendment.

               D. Extending Rules to ``Mixed'' Households

     Present law
       No comparable provisions.
     House bill
       Allows States the further option of applying their TANF 
     rules and procedures to food stamp households in which some, 
     but not all, members receive TANF benefits. These households 
     would not be automatically eligible for food stamps (they 
     would have to meet normal food stamp eligibility rules), but 
     their benefits could be determined under the State's TANF 
     rules and procedures, so long as the Secretary ensures that 
     the State's plan provides for an ``equitable'' distribution 
     of benefits among all household members.
     Senate amendment
       No comparable provisions.
     Conference agreement
       The Conference agreement follows the Senate amendment. The 
     conferees encourage the Secretary to work with States to test 
     methods for applying a single set of rules and procedures to 
     households in which some, but not all, members receive cash 
     welfare benefits under State rules.

                           E. Cash Assistance

     Present law
       No comparable provisions.
     House bill
       Allows States exercising the simplified program option to 
     pay food stamp benefits in cash to some participating 
     households. Cash benefits could be paid to households with 3 
     or more consecutive months' earned income of at least $350 a 
     month from a private sector employer.
       Provides that: (1) cash assistance in lieu of food stamps 
     be considered the food stamp benefit of the earner's 
     household, (2) the value of food stamp benefits provided in 
     cash be treated as food stamp coupons for taxation and other 
     purposes (i.e., disregarded), and (3) the State opting for 
     cash payments increase the payments (at State expense) to 
     offset the effect of any food sales taxes, unless the 
     Secretary determines it unnecessary because of the limited 
     nature of items taxed (sales taxes on food purchases with 
     food stamp benefits are barred by existing law).
       Requires States electing the cash benefit option to submit 
     a written evaluation the effect of cash assistance after 2 
     years' operation.
     Senate amendment
       [Note: See item 55.]
     Conference agreement
       The Conference agreement follows the Senate amendment.

                      F. Federal Food Stamp Rules

     Present law
       The Federal Government shares 50% of any State food stamp 
     administrative costs (except that certain States with very 
     low rates of erroneous benefit and eligibility determinations 
     can receive up to 60%). States also may retain certain 
     proportions of any overissued benefits they recoup. Special 
     Federal cost-sharing rules apply in the case of employment 
     and training programs for food stamp recipients. States are 
     subject to a quality control system under which the extent of 
     erroneous benefit and eligibility decisions is measures. 
     Those with high rates of erroneous benefit and eligibility 
     decisions are subject to fiscal sanctions. [Sec. 16]
     House bill
       Requires States exercising the simplified program option 
     to, at a minimum, comply with certain rules mandated under 
     the Food Stamp Act:
       (1) requirements governing issuance procedures for food 
     stamp benefits;
       (2) the requirement that benefits be calculated by 
     subtracting 30% of a household's income (as determined by 
     state-established, not Federal, rules under the simplified 
     program option) from the maximum food stamp benefit;
       (3) the bar against counting food stamp benefits as income 
     or resources in other programs;
       (4) the requirements that State agencies assume 
     responsibility for eligibility certification and issuance of 
     benefits and keep records for inspection and audit;
       (5) the bar against discrimination by reason of race, sex, 
     religious creed, national origin, or political beliefs;
       (6) requirements related to submission and approval of 
     plans of operation and administration of the food stamp 
     program on Indian reservations;
       (7) limits on the use and disclosure of information about 
     food stamp households;
       (8) requirements for notice to and fair hearings for 
     aggrieved households (or comparable requirements established 
     by the State under its TANF program;)
       (9) requirements for submission of reports and other 
     information required by the Secretary;
       (10) the requirement to report illegal aliens to the 
     Immigration and Naturalization Service;
       (11) requirements for use of certain Federal and State data 
     sources in verifying recipients' eligibility;
       (12) requirements to take measures to ensure that 
     households are not receiving duplicate benefits; and
       (13) requirements for the provision of social security 
     numbers as a condition of eligibility and for their use by 
     State agencies.
       States electing the simplified program option would be 
     subject to normal food stamp program cost-sharing rules. 
     
[[Page H15467]]

       States electing the simplified option would be subject to 
     the food stamp quality control system (including fiscal 
     sanctions).
     Senate amendment
       Permits States exercising the option for a simplified food 
     stamp program to apply rules and procedures under their 
     family assistance block grant, the rules/procedures of the 
     regular food stamp program, or the rules/procedures of one 
     program to certain matters and those of the other in 
     remaining matters. Permits States to standardize food stamp 
     expense ``deductions,'' but, in doing so, States would be 
     required to give consideration to the work expenses, 
     dependent car costs, and shelter costs of participating 
     households.
       Otherwise, the Senate amendment is the same as the House 
     bill, except that it also would (1) require that States 
     follow the revised rule in the Senate amendment (see item 43) 
     as to not increasing food stamp benefits when other public 
     assistance benefits are decreased (see item 4C in the House 
     bill), (2) require that eligible households be certified and 
     receive benefits not later than 30 days after application (as 
     now required under the regular food stamp program), and (3) 
     require that States issue ``expedited'' benefits to very low-
     income households (as required under the regular food stamp 
     program).
     Conference agreement
       The Conference agreement follows the House bill with an 
     amendment (1) allowing States to standardize deductions and 
     (2) requiring States to follow the revised rule in the Senate 
     amendment as to not increasing food stamp benefits when other 
     public assistance benefits are decreased.

                             G. State Plans

     Present law
       No comparable provision.
     House bill
       Requires that State plans for those States electing to 
     exercise the simplified program option include the rules and 
     procedures to be followed in determining benefits under the 
     option, whether the program will include households in which 
     not all members receive TANF grant benefits, and the method 
     by which the State or political subdivision participating in 
     the simplified program will carry out its quality control 
     obligations.
     Senate amendment
       Requires that State plans for those States electing to 
     exercise the simplified program option include the rules and 
     procedures to be followed in determining benefits under the 
     option, how the States will address the needs of households 
     with high shelter costs, and a description of the method by 
     which the State will carry out its quality control 
     obligations.
     Conference agreement
       The Conference agreement follows the Senate amendment.


        5. conforming amendments: simplified food stamp program

     Present law
       Allows the Secretary to operate pilot projects similar to 
     the simplified food stamp program State option proposed in 
     the House bill. [Sec. 8(e) and Sec. 17(i)]
     House bill
       Deletes provisions for pilot projects similar to the 
     simplified food stamp program State option.
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the House bill with an 
     amendment to add necessary conforming amendments.


                          6. thrifty food plan

     Present law
       Maximum monthly food stamp benefits are defined as 103% of 
     the cost of the Agriculture Department's ``Thrifty Food 
     Plan,'' adjusted for food-price inflation each October 
     according to the plan's cost in the immediately preceding 
     June and rounded down to the nearest dollar by household 
     size. [Sec. 3(o)]
     House bill
       Provides that current maximum monthly food stamp benefits 
     (103% of the cost of the Thrifty Food Plan in June 1994) be 
     increased by 2% a year, beginning with the October 1995 
     adjustment, and rounded down to the nearest dollar by 
     household size.
     Senate amendment
       Sets maximum monthly food stamp benefits at 100% of the 
     cost of the Thrifty Food Plan, effective October 1, 1995, 
     adjusted annually, as under existing law and rounded down to 
     the nearest dollar by household size. Requires that the 
     October 1, 1995, adjustment not reduce maximum benefit 
     levels.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment making it effective October 1, 1996.


               7. income deductions and energy assistance

                          A. Energy Assistance

     Present law
       Payments or allowances for energy assistance provided by 
     State or local law are, under rules set by the Secretary, 
     disregarded (``excluded'') as income. [Sec. 5(d)(11) and 
     5(k)]
       Payments or allowances for weatherization assistance are 
     disregarded as energy assistance. [Sec. 5(d)(11) and 5(k)] 
     [Note: Weatherization payments could otherwise be disregarded 
     as lump-sum payments, vendor payments, or reimbursements.]
       Federal Low-Income House Energy Assistance Program (LIHEAP) 
     benefits are disregarded as income. [Sec. 5(d)(11) and 5(k) 
     of the Food Stamp Act and sec. 2605(f) of the Low-Income Home 
     Energy Assistance Act]
       Certain utility allowances under Department of Housing and 
     Urban Development (HUD) programs are disregarded. [Sec. 
     5(d)(11) and 5(k)]
       Shelter expense deductions may be claimed for utility costs 
     covered by LIHEAP benefits, but not in the case of other 
     disregarded energy assistance unless the household has 
     additional out-of-pocket expenses. [Sec. 5(e) of the Food 
     Stamp Act and Sec. 2605(f) of the Low-Income Home Energy 
     Assistance Act]
     House bill
       Requires that State/local energy assistance be counted as 
     income.
       Continues to disregard as income payments or allowances for 
     weatherization assistance under a Federal energy assistance 
     program. Other weatherization assistance could be disregarded 
     as lump-sum payments, vendor payments, or reimbursements.
       Bars claiming shelter expense deductions for utility costs 
     covered either directly or indirectly by the LIHEAP and other 
     disregarded energy assistance.
     Senate amendment
       Requires that State/local energy assistance be counted as 
     income.
       Requires an income disregard for one-time payments/
     allowances under a Federal or State law for the costs of 
     weatherization or emergency repair/replacement of unsafe/
     inoperative furnaces or other heating/cooling devices.
       Counts Federal LIHEAP benefits as income.
       Counts HUD utility allowances as income.
       Allows claiming shelter expense deductions for utility 
     costs covered directly or indirectly by the LIHEAP and other 
     counted energy assistance.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                         B. Standard Deductions

     Present law
       For purposes of determining food stamp benefits and 
     eligibility, applicant/recipient households may claim 
     standard deductions from their otherwise countable income. 
     Standard deductions are indexed annually (each October 1) for 
     inflation based on the Consumer Price Index for items other 
     than food and rounded down to the nearest dollar. For FY1995, 
     standard deductions are set at: $134 a month for the 48 
     States and the District of Columbia, $229 for Alaska, $189 
     for Hawaii, $269 for Guam, and $118 for the Virgin Islands. 
     For FY1996, they were ``scheduled'' to rise to: $138, $236, 
     $195, $277, and $122, respectively, but this was barred by 
     the FY1996 agriculture appropriations act. (Sec. 5(e)]
     House bill
       Sets standard deductions at their FY1995 levels, effective 
     October 1, 1995
     Senate amendment
       Reduces standard deductions:
       (1) for FY1996, they would be $132, $225, $186, $265, and 
     $116; and
       (2) for FY1997-2002, they would be $124, $211, $174, $248, 
     and $109.
       Inflation indexing of standard deductions would resume 
     October 1, 2002 (using existing indexing rules).
     Conference agreement
       The Conference agreement follows the House bill and 
     continues to set standard deductions at their FY1995 levels.

                       C. Earned Income Deduction

     Present law
       Households may claim a deduction for 20% of any earned 
     income. This deduction is not allowed with respect to any 
     income that a household willfully or fraudulently fails to 
     report in a timely manner (as proven in a fraud hearing 
     proceeding)--i.e., it is not allowed when determining the 
     amount of a benefit overissuance. [Sec. 5(e)]
     House bill
       Denies an earned income deduction for the food stamp 
     benefit portion of income earned under a work 
     supplementation/support program. [Note: See item 15.]
     Senate amendment
       Disallows an earned income deduction for any income not 
     reported in a timely manner--i.e., the deduction would not be 
     allowed in determining the amount of any overissued benefits.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment denying an earned income deduction for the 
     public assistance portion of income earned under a work 
     supplementation/support program.

                  D. Excess Shelter Expense Deduction

     Present law
       For purposes of determining food stamp benefits and 
     eligibility, applicant/recipient households may claim excess 
     shelter expense deductions from their otherwise countable 
     income--in the amount of any shelter expenses (including 
     utility costs) above 50% of their countable income after all 
     other deductions have been applied. For households with 
     elderly or disabled members, these deductions are unlimited. 
     For other households, they are limited by law through 
     December 1996; limits are lifted as of January 1, 1997. For 
     FY1995, excess shelter expense deductions were capped at: 
     $231 a month for the 48 States and the District of Columbia, 
     $402 for Alaska, $330 for Hawaii, $280 for Guam, and $171 for 
     the Virgin Islands. For October 1995 through December 1996, 
     the caps rose to $247, $248, $353, $300, and $182, 
     respectively. [Sec. 5(e)]
     
[[Page H15468]]

       States may use ``standard utility allowances'' (as approved 
     by the Secretary) in calculating households' shelter 
     expenses. However, households may claim actual expenses 
     instead of the allowance and may switch between an actual 
     expense claim and the standard allowance at the end of any 
     certification period and one additional time during any 12-
     month period. [Sec. 5(e)]
     House bill
       Sets the limits on excess shelter expense deductions at 
     FY1995 levels.
     Senate amendment
       Permits States to make the use of standard utility 
     allowances mandatory for all households if (1) the State has 
     developed separate standards that include the cost of heating 
     and cooling and do not include these costs and (2) the 
     Secretary finds that the standards will not result in 
     increased Federal costs.
       Removes the option for households to switch between a 
     standard utility allowance and actual costs once during every 
     12-month period.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment that establishes excess shelter expense 
     deduction limits at the October 1995/December 1996 levels.

                     E. Homeless Shelter Deduction

     Present law
       For homeless households not receiving free shelter 
     throughout the month, States may develop a homeless shelter 
     expenses estimate (a standard amount) to be used in 
     calculating an excess shelter expense deduction. States must 
     use this amount unless the household verifies higher 
     expenses. The Secretary may prohibit the use of the deduction 
     for households with extremely low shelter costs. The amounts 
     is inflation indexed, and, for FY 1995, it is limited to $139 
     a month; effective October 1, 1995, it is scheduled to rise 
     to $143. [Sec. 11(e)(3)]
     House bill
       Sets the homeless shelter deduction at the FY 1995 $139 a 
     month amount and requires that it be used in establishig 
     homeless households' excess shelter expense deductions when 
     they do not receive free shelter throughout the month.
     Senate amendment
       Same as the House bill, except that States may prohibit the 
     use of the deduction for households with extremely low 
     shelter costs.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                          8. Vehicle Allowance

              A. Threshold for Counting a Vehicle's Value

     Present law
       In determining a household's liquid assets for food stamp 
     eligibility purposes, a vehicle's fair market value in excess 
     of $4,550 is counted. This threshold rose to $4,600 in 
     October 1995 and is scheduled to be annually indexed for 
     inflation beginning in fiscal year 1997. [Sec. 5(g)(2)] 
     [Note: Eligible households may have liquid assets of no more 
     than $2,000 ($3,000 for households with elderly members).]
     House bill
       Sets the threshold above which the fair marekt value of a 
     vehicle is counted as an assets at $4,550.
     Senate amendment
       Eliminates the October 1, 1995, increase in the increase in 
     the threshold to $4,600 and reqires that the $4,550 threshold 
     begin to be inflation adjusted on October 1, 1996.
     Conference agreement
       The Conference agreement follows the House bill, with an 
     amendment setting the threshold at $4,600.

                   B. Vehicles Carrying Fuel or Water

     Present law
       In determining a household's liquid assets for food stamp 
     eligibility purposes, the value of a vehicle that the 
     household depends on to carry fuel for heating or water for 
     home use is excluded. [Sec. 5(g)(2)
     House bill
       Deletes the asset exclusion for vehicles used to carry fuel 
     or water.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment.


                          9. work requirements

       Non-exempt recipients between 16 and 60 are ineligible for 
     food stamps if they refuse to register for employment, refuse 
     to participate in an employment/training program when 
     required to do so by the State, or refuse a job offer meeting 
     minimum standards. [Sec. 6(d)]
       Exempt individuals are: (1) those who are not physically or 
     mentally fit, (2) those subject to and complying with a work/
     training requirement under the AFDC program or the 
     unemployment compensation system (although failure to comply 
     with an AFDC/unemployment system requirement is treated as a 
     failure to comply with food stamp rules, if the requirement 
     is ``comparable''), (3) parents and other household members 
     with the responsibility for care of a dependent child under 
     age 6 or an incapacitated person, (4) postsecondary students 
     enrolled at least half-time (separate rules bar eligibility 
     for most postsecondary students who are not working or do not 
     have dependents), (5) regular participants in drug addiction 
     or alcoholic treatment programs, (6) persons employed at 
     least 30 hours a week or receiving the minimum wage 
     equivalent, and (7) persons between 16 and 18 who are not 
     head of household and are in school at least half time. [Sec. 
     6(d) (1) and (2)]
       In addition, if a non-exempt head of household fails to 
     comply with one of the above-noted requirements or 
     voluntarily quits a job without good cause, or if any non-
     exempt household member is on strike, the entire household is 
     ineligible for food stamps. [Sec. 6(d) (1) & (3)]

                             A. Job Search

     Present law
       As noted above, non-exempt individuals refusing to 
     participate in an employment/training program when required 
     to do so by the State are ineligible for food stamps (if they 
     are head of household, the entire household is ineligible). 
     State-designed employment and training programs may include a 
     requirement to perform job search activities. [Sec. 6(d) (1) 
     & (2)]
     House bill
       Makes ineligible non-exempt individuals (and their 
     households if they are head of household) who refuse to 
     participate in a State-established job search program. [Note: 
     Able-bodied non-elderly adults without dependents would be 
     subject to new work requirements, see below.]
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                    B. Comparable Work Requirements

     Present law
       As noted above, individuals are exempt from food stamp 
     employment/training requirements if they are subject to and 
     complying with an AFDC or unemployment compensation work/
     training requirement, and failure to comply with such an AFDC 
     or unemployment compensation requirement is treated as 
     failure to comply with food stamp employment/training 
     requirements, if the requirement is ``comparable.'' [Sec. 
     6(d)(2)]
     House bill
       Requires that failure to comply with an TANF or 
     unemployment compensation system work/training requirement be 
     treated as failure to comply with a food stamp employment/
     training requirement, whether or not the requirement is 
     ``comparable.''
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the House bill.

                        C. New Work Requirement

     Present law
       As noted above, non-exempt individuals are ineligible for 
     food stamps if they refuse to participate in an employment/
     training program when required to do so by the State. [Sec. 
     6(d)(1)]
     House bill
       Deletes provisions of law barring eligibility to those 
     refusing to participate in State-established employment/
     training programs.
       In their place, adds a new work requirement: non-exempt 
     recipients (see below) would be disqualified if they are not 
     employed a minimum of 20 hours a week or are not 
     participating in the work program newly established under the 
     House bill (see below) within 90 days of certification of 
     eligibility.
       Allows individuals who have been disqualified under the new 
     work requirement to re-establish food stamp eligibility if 
     they become exempt (under the rules noted immediately below), 
     become employed at least 20 hours a week during any 
     consecutive 30-day period, or participate in a work program 
     (see below).
       Exempt from the new requirement would be: (1) those under 
     18 or over 50, (2) those medically certified as physically or 
     mentally unfit for employment, (3) parents or other household 
     members responsible for the care of a dependent child, and 
     (4) those who are otherwise exempt from work registration and 
     job search rules (see present law description above).
       Upon a State's request, allows the Secretary to waive 
     application of the new work requirement for some or all 
     individuals in all or part of a State if the Secretary 
     determines that the area (1) has an unemployment rate over 
     10% or (2) does not have sufficient jobs to provide 
     employment for those subject to the new requirement. The 
     Secretary would be required to report to the Agriculture 
     Committees the basis for any waiver based on lack of 
     sufficient jobs.
     Senate amendment
       Adds a new work requirement: non-exempt persons (see below) 
     would be ineligible if, during the preceding 12-month period, 
     they received food stamps for 6 months or more while not 
     working 20 hours or more a week (averaged monthly) or 
     participating in and complying with a work/training program 
     (see note regarding exemptions below) for at least 20 hours a 
     week.
       Exempt from the new requirement would be: (1) those under 
     18 or over 50, (2) those certified by a physician as 
     physically or mentally unfit for employment, (3) parents or 
     other household members responsible for the care of a 
     dependent, (4) those participating a minimum of 20 hours a 
     week in (and complying with the requirements of) a Job 
     Training 

[[Page H15469]]
     partnership Act (JTPA) program, a Trade Adjustment Assistance Act 
     training program, or a State or local government employment 
     or training program meeting Governor-approved standards, and 
     (5) those otherwise exempt from work registration and job 
     search rules (see present law description above.) [Note: The 
     new work requirement could be met by those participating in 
     and complying with (for 20 hours a week or more) a JTPA 
     program, a Trade Adjustment Assistance training program, or a 
     State/local employment or training program meeting Governor-
     approved standards (including a food stamp program 
     employment/training activity other than job search or job 
     search training).]
       As in the House bill, waivers are allowed, except that the 
     unemployment rate threshold is 8% and the Secretary must 
     report the basis for any waiver.
       Provides for a transition to the new work requirement. 
     Prior to October 1, 1996, administrators would not ``look 
     back'' a full 12 months in determining whether a recipient 
     had been receiving food stamps and not meeting the new 
     requirement; they would look back only to October 1, 1995.
     Conference agreement
       The Conference agreement follows the House bill, with an 
     amendment. Non-exempt persons (see below) are ineligible if, 
     during the preceding 12-month period, they received food 
     stamps for 4 months or more while not working 20 hours or 
     more a week (averaged monthly), participating in and 
     complying with a work program (see below) for at least 20 
     hours a week, or participating in a workfare program.
       Exempt from the new requirement are: (1) those under 18 or 
     over 50, (2) those medically certified as physically or 
     mentally unfit for employment, (3) parents or other household 
     members responsible for the care of a dependent child, (4) 
     those otherwise exempt from work registration or job search 
     rules (e.g., those caring for incapacitated persons), and (5) 
     pregnant women.
       Work programs allowing an exemption are programs under the 
     JTPA or the Trade Adjustment Assistance Act, or employment/
     training programs operated or supervised by a State or 
     locality meeting standards approved by the Governor 
     (including a food stamp employment/training program)--except 
     for job search or job search training programs.
       Waiver reports are required for any waiver based on 
     unemployment rates (over 10%) or lack of sufficient jobs.
       The disqualification imposed by the new work requirement 
     ceases to apply if, during a 30-day period, an individual 
     works 80 hours or more, participates in and complies with a 
     work program for at least 80 hours, or participates in a 
     workfare program. In the subsequent 12-month period, an 
     individual is eligible for food stamps for up to 4 months 
     while not working for at least 20 hours a week, participating 
     in a work program for at least 20 hours a week, or 
     participating in a workfare program.
       As in the Senate amendment, a transition to the new work 
     requirement is provided.

                          D. Disqualification

     Present law
       [Note: See present law description above. In addition, 
     disqualification periods for failure to fulfill work 
     requirements are (1) 2 months or until compliance (whichever 
     is first) for most failures and (2) 90 days in case of a 
     voluntary quit.]
     House bill
       No comparable provisions. [Note: The House bill creates new 
     disqualification penalties for those covered by its new work 
     requirement.]
     Senate amendment
       Rewrites and adds to rules governing disqualification for 
     violation of work and employment/training requirements (other 
     than those for the new work requirement noted above).
       In addition to existing provisions for disqualification 
     (e.g., job refusal, failure to participate in an employment/
     training program), makes ineligible (1) individuals who 
     refuse without good cause to provide sufficient information 
     to allow a determination of their employment status or job 
     availability, (2) all individuals (in addition to heads of 
     household) who voluntarily and without good cause quit a job, 
     and (3) individuals who voluntarily and without good cause 
     reduce their work effort (and, after the reduction, are 
     working less than 30 hours a week).
       Establishes a new household ineligibility rule: if any 
     individual who is head of household is disqualified under a 
     work rule, the entire household would, at State option, be 
     ineligible for the lesser of the duration of the individual's 
     ineligibility or 180 days--as determined by the State.
       Establishes new mandatory minimum work-rule 
     disqualification periods for individuals. For the first 
     violation, individuals would be ineligible until the later of 
     the date they fulfill work rules, for 1 month, or a period 
     (determined by the State) not to exceed 3 months. For the 
     second violation, individuals would be ineligible until the 
     later of the date they fulfill work rules, for 3 months, or a 
     period (determined by the State) not to exceed 6 months. For 
     a third or subsequent violation, individuals would be 
     ineligible until the later of the date they fulfill work 
     rules, 6 months, a date determined by the State, or (at State 
     option) permanently. These disqualification period also would 
     apply to those failing to meet workfare requirements
       In establishing good cause, voluntary quits, and reduction 
     of work effort, the Secretary would determine the meaning of 
     the terms. States would determine the meaning of other terms 
     and the procedures for making compliance decisions, but could 
     not make a determination that would be less restrictive than 
     a comparable one under the State's family assistance block 
     grant program.
       States would be required to include the standards and 
     procedures they use in making work-rule disqualification/
     compliance decisions in their State plan.
     Conference agreement
       The Conference agreement follows the Senate amendment

                         E. Caretaker Exemption

     Present law
       Parents or other household members with responsibility for 
     the care of a dependent child under age 6 or of an 
     incapacitated person are exempt from food stamp work rules 
     [Sec. 6(d)(2)]
     House bill
       No provision.
     Senate amendment
       Permits States to lower the age at which a child 
     ``exempts'' a parent/caretaker from 6 to not under the age of 
     1.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                F. Work and Employment/Training Programs

     Present law
       States must operate employment and training programs for 
     non-exempt food stamp recipients and place at least 15% of 
     those covered in a program component. Exempt are those listed 
     above and those States opt to exempt under Federal rules. 
     Program components can range from job search or education 
     activities to work experience/training and ``workfare'' 
     assignments. [Sec. 6(d)(4)]
       Work experience/training program components must limit 
     assignments to projects serving a useful public purpose, use 
     the prior training/experience of assignees, not provide work 
     that has the effect of replacing others, and provide the same 
     benefits and working conditions provided to other comparable 
     employees. [Sec. 6(d)(4)(B)]
       States and political subdivisions also may operate workfare 
     programs under which non-exempt recipients may be required to 
     perform work in return for the minimum wage equivalent of 
     their household's monthly food stamp allotment. In general, 
     those exempt are those listed above (p. 16). [Sec. 20]
       Workfare assignments may not have the effect of replacing 
     or preventing the employment of others and must provide the 
     same benefits and working conditions provided to other 
     comparable employees. [Sec. 20(d)]
       The total hours of work required of a household under an 
     employment/training program (including workfare) cannot in 
     any month exceed the minimum wage equivalent of the 
     household's monthly food stamp benefit. The total hours of 
     participation in an employment and training program required 
     of any household member cannot in any month exceed 120 hours 
     (when added to other work). And, workfare hours (when added 
     to other work) cannot exceed 30 hours a week for a household 
     member. [Sec. 6(d)(4)(F) and Sec. 20(c)]
       Under employment and training programs for food stamp 
     recipients, States must provide or pay for transportation and 
     other costs directly related to participation (up to $25 a 
     month for each participant) and necessary dependent care 
     expenses (in general, up to $175 or $200 a month for each 
     dependent, depending on the dependent's age). Under workfare 
     programs, States must reimburse participants for 
     transportation and other costs directly related to 
     participation (up to $25 a month for each participant). [Sec. 
     6(d)(4)(I) and Sec. 20 (d)(3)]
     House bill
       Deletes the requirement for States to operate employment 
     and training programs and current provisions for work 
     experience/training and workfare programs.
       Instead, requires the Secretary to permit any State that 
     applies and submits a plan in compliance with the Secretary's 
     guidelines to operate a work program for food stamp 
     recipients subject to the new work requirement (see above) in 
     the State or any political subdivision. A State's work 
     program would require those accepting an offer of a work 
     position in order to maintain food stamp eligibility to 
     perform work on the State or local jurisdiction's behalf, or 
     on behalf of a private nonprofit entity. The Secretary's 
     guidelines would be required to allow States and localities 
     to operate a work program that is consistent and compatible 
     with similar programs they might operate.
       Requires that, in order to be approved, a State's work 
     program provide that participants work no more than the 
     minimum wage equivalent of their household's monthly food 
     stamp benefit (i.e., the number of hours equivalent to their 
     household's monthly benefit divided by the minimum wage).
       Limits the degree to which a State or locality can assign 
     participants to replace other workers. No State/locality 
     could replace an employed worker with a work program 
     participant, but participants could be placed in (1) new 
     positions, (2) positions that became available during the 
     normal course of business, (3) positions that involve 
     performing work that would otherwise be performed on an 
     overtime basis, or (4) positions 

[[Page H15470]]
     that became available by shifting current employees to an alternate 
     position. [Note: States would receive Federal costsharing for 
     work program participant expenses (see below).]
     Senate amendment
       Revises the existing requirements for State-operated 
     employment/training programs for food stamp recipients:
       (1) makes clear the work experience is a purpose of 
     employment/training programs;
       (2) requires that each component of an employment/training 
     program be delivered through a ``statewide workforce 
     development system,'' unless the component is not available 
     locally;
       (3) expands the existing State option to apply work rules 
     to applicants at application to all work requirements, not 
     only job search;
       (4) removes specific rules governing job search components 
     (i.e., tied to those for the AFDC program);
       (5) removes provisions for employment/training components 
     related to work experience requiring that they be in public 
     service work and use (to the extent possible) recipients' 
     prior training and experience;
       (6) removes specific Federal rules as to States' authority 
     to exempt categories and individuals from employment/training 
     requirements;
       (7) removes the requirement to serve volunteers in 
     employment/training programs;
       (8) removes the requirement for ``conciliation procedures'' 
     for resolution of disputes involving participation in an 
     employment or training program;
       (9) limits employment/training funding provided by the food 
     stamp program for services to AFDC or family assistance block 
     grant funding recipients to the amount used by the State for 
     AFDC recipients in FY1995; and
       (10) removes Federal performance standards on States for 
     employment/training programs for food stamp recipients.
     Conference agreement
       The Conference agreement follows the Senate amendment.

            G. Funding Work and Employment/Training Programs

     Present law
       To support employment and training programs for food stamp 
     recipients, States receive a formula share of $75 million a 
     year (based partially on their share of food stamp recipients 
     not exempt from work registration and employment/training 
     requirements and partially on their share of those placed in 
     employment/training program components). Minimum State annual 
     allocations are $50,000.
       In addition to its portion of the $75 million annual grant, 
     each State is entitled to (1) 50% of any additional costs 
     incurred, (2) 50% of any transportation or other participant 
     costs paid or incurred up to half of $25 a month for each 
     participant, and (3) 50% of any dependent care costs paid or 
     incurred up to half of certain limits (generally, $175/$200 a 
     month for each dependent, depending on the dependent's age). 
     [Sec. 16(h)]
     House bill
       To support work programs for food stamp recipients, 
     requires the Secretary to allocate among States and 
     localities operating them $75 million a year, based on their 
     share of recipients subject to the new work requirement (see 
     above). Minimum State allocations would be $50,000.
       Requires States to notify the Secretary as to their 
     intention to operate a work program, and requires the 
     Secretary to reallocate unclaimed portions of the $75 million 
     annual grant to other States, as the Secretary deems 
     appropriate and equitable.
       Requires that, in addition to its portion of the $75 
     million annual grant, the Secretary pay each State (1) 50% of 
     any additional costs incurred and (2) 50% of any 
     transportation or other participant costs paid or incurred up 
     to half of $25 a month for each participant.
       Allows the Secretary to suspend or cancel some or all 
     payments made to States for the work program, or withdraw 
     approval, on a finding of noncompliance.
     Senate amendment
       To support employment/training programs for food stamp 
     recipients, requires the Secretary to ``reserve for 
     allocation'' to States: $77 million for FY1996, $80 million 
     for FY1997, $83 million for FY1998, $86 million for FY1999, 
     $89 million for FY2000, $92 million for FY2001, and $95 
     million for FY2002. Allocations would be based on a 
     ``reasonable formula'' (determined by the Secretary) that 
     gives consideration to States' shares of the population 
     affected by the new work requirement (see above). Minimum 
     State allocations would be $50,000.
       Requires reallocations as in the House bill.
       Continues existing provisions for payments for additional 
     costs, but adds explicit permission for a 50% Federal share 
     of State case management costs.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment. The amounts ``reserved for allocation'' to 
     states are: $77 million for FY 1996; $79 million for FY 1997; 
     $81 million for FY 1998; $84 million for FY 1999; $86 million 
     for FY 2000; $88 million for FY 2001; and $90 million for FY 
     2002.

                        H. Conforming Amendment

     Present law
       There is authorized a demonstration project similar to the 
     new work requirement in the House bill; it has not been 
     implemented. [Sec. 17(d)]
     House bill
       Deletes authorization for a demonstration project similar 
     to the new work requirement in the House bill.
     Senate amendment
       Makes several technical and conforming amendments to 
     employment and training provisions.
     Conference agreement
       The Conference agreement follows the House bill and makes 
     technical and conforming amendments.


          10. Comparable Treatment of Disqualified Individuals

     Present law
       [Note: See item 4C.]
     House bill
       Requires that individuals who have been disqualified for 
     noncompliance with requirements under a TANF program not be 
     eligible to participate for food stamps during the 
     disqualification period.
     Senate amendment
       If an individual is disqualified for failure to perform an 
     action required under a Federal, State, or local welfare/
     public assistance program, permits States to impose the same 
     disqualification for food stamps.
       If a disqualification is imposed under the family 
     assistance block grant, permits States to use the family 
     assistance block grant's rules and procedures to impose the 
     same disqualification for food stamps.
       Permits individuals disqualified from food stamps because 
     of failure to perform a required action under another 
     welfare/public assistance program to apply for food stamps as 
     new applicants after the disqualification period has 
     expired--except that a prior disqualification under food 
     stamp work requirements must be considered in determining 
     eligibility.
       Requires States to include the guidelines they use in 
     carrying out food stamp disqualification for failure to 
     perform a required action in another welfare/public 
     assistance program in their State plans.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment changing references to welfare or public 
     assistance programs to references to needs-tested public 
     assistance programs.


           11. Encourage Electronic Benefit Transfer Systems

                            A. Regulation E

     Present law
       The Federal Reserve Board has ruled that, as of March 1997 
     and with some minor modifications, its ``Regulation E'' will 
     apply to electronic benefit transfer systems. Regulation E 
     provides certain protections for consumers using cards to 
     access their accounts. It limits the liability of cardholders 
     for unauthorized withdrawals (to $50, if notification is 
     made) and requires periodic account statements and certain 
     error resolution procedures. [Federal Register of Mar. 7, 
     1994]
     House bill
       [Note: See item 56 for optional block grants for States 
     fully implementing electronic benefit transfer systems.]
       Provides that Regulation E not apply to any electronic 
     benefit transfer program (distributing needs-tested benefits) 
     established or administered by States or localities.
     Senate amendment
       Provides that Regulation E not apply to food stamp benefits 
     delivered through any electronic benefit transfer system.
     Conference agreement
       The Conference agreement follows the House bill.

      B. Charging for Electronic Benefit Transfer Card Replacement

     Present law
       No specific provision.
     House bill
       No provision.
     Senate amendment
       Provides that States may charge recipients for the cost of 
     replacing a lost or stolen electronic benefit transfer card 
     and may collect the charge by reducing the recipient's food 
     stamp benefit.
     Conference agreement
       The Conference agreement follows Senate amendment.

                     C. Photographic Identification

     Present law
       No provision.
     House bill
       Requires that each electronic benefit transfer card bear a 
     photograph of the members of the household to which the card 
     is issued.
     Senate amendment
       Permits States to require that electronic benefit transfer 
     cards contain a photograph of 1 or more household members and 
     requires that, if a State requires a photograph, it shall 
     establish procedures to ensure that other appropriate members 
     of the household and authorized representatives may use the 
     card.
     Conference agreement
       The Conference agreement follows the Senate amendment.
     
[[Page H15471]]


            D. Rules for Electronic Benefit Transfer Systems

     Present law
       State agencies, with the Secretary's approval, may 
     implement on-line electronic benefit transfer systems for 
     delivering food stamp benefits, in lieu of coupons. No State 
     may implement or expand an electronic benefit transfer system 
     without prior approval from the Secretary. States are 
     responsible for 50% of any electronic benefit transfer system 
     costs (as with any benefit issuance system), including 
     equipment and electronic benefit transfer cards. [Sec. 7(i)]
       The Secretary's regulations for approval must (1) include 
     standards that require that, in any one year, the operational 
     cost of an electronic benefit transfer system does not exceed 
     costs of prior issuance systems and (2) include system 
     security standards. [Sec. 7(i)]
     House bill
       Deletes requirements for the Secretary's prior approval, 
     ``encourages'' State agencies to implement on-line electronic 
     benefit transfer systems for delivering food stamp benefits, 
     and authorizes States to procure and implement these systems 
     (under terms, conditions and designs that the State deems 
     appropriate).
       Allows the Secretary to waive, on a State's request, any 
     provision of the Food Stamp Act that prohibits effective 
     implementation of an electronic benefit transfer system for 
     food stamp benefits.
       Requires re-issuance and revision of regulations governing 
     food stamp electronic benefit transfer systems (current 
     regulations for approval of these systems were issued in 
     April 1992).
       Deletes the requirement that the Secretary's regulations 
     for electronic benefit transfer systems require that costs of 
     the electronic benefit transfer system in any one year not 
     exceed costs of prior issuance systems.
       Adds requirements that the Secretary's standards for 
     electronic benefit transfer systems include (1) measures to 
     maximize system security using the most recent technology the 
     State considers appropriate (including personal 
     identification numbers, photographic identification on 
     electronic benefit transfer cards, and other measures to 
     protect against fraud and abuse) and (2) effective not later 
     than 2 years after enactment, measures that permit electronic 
     benefit transfer systems to differentiate food items that may 
     be acquired with food stamp benefits from those that may not.
     Senate amendment
       Permits States to implement EBT systems under rules 
     separate from those in existing law as amended, if a State 
     notifies the Secretary of its intent to convert to a 
     statewide system within 3 years of enactment. The Secretary 
     may not provide coupons to a State beginning 3 years after 
     the chief executive gives notification of intent to convert 
     under the EBT option--but the State may extend this deadline 
     by 2 years and the Secretary may grant a waiver of up to 6 
     months for good cause. [Note: The Secretary is authorized to 
     provide coupons for disaster relief.]
       Places requirements on the Secretary under the EBT option. 
     The Secretary must:
       (1) assist States in converting to an EBT system and (in 
     consultation with the Inspector General and the Secret 
     Service) inform States about proper security features, 
     management techniques, and counterfeit deterrence;
       (2) reimburse States for purchasing and issuing EBT cards 
     [Note: The Secretary may charge recipients (through allotment 
     reduction or otherwise) for the cost of replacing lost or 
     stolen cards, unless stolen by force or threat of force];
       (3) assign additional employees to investigate and monitor 
     compliance with EBT and retailer participation rules;
       (4) establish a Transition Conversion Account (TCA) to be 
     funded with transaction fees of no more than 2 cents a 
     transaction (maximum of 16 cents a month) taken from each EBT 
     household's benefits [Note: Fees would be imposed during the 
     10-year period beginning with the first full fiscal year 
     after enactment. They would be imposed to the extent 
     necessary to not increase the Secretary's costs under the EBT 
     option and could not be greater not be greater than needed 
     for the purposes of the TCA (see below). Fees could be 
     reduced for households receiving maximum benefits.]
       (5) from the TCA and, to the extent necessary, from food 
     stamp appropriations, provide funds to States choosing the 
     EBT option for (1) reasonable purchase and installation costs 
     (including reimbursements to retailers) of single-function 
     point-of-sale equipment to be used only for Federal/State 
     assistance programs, (2) reasonable start-up purchase and 
     installation costs for telephone equipment and connections to 
     the point-of-sale equipment, and (3) modification of existing 
     EBT systems to the extent necessary to operate Statewide or 
     interstate;
       (6) from the TCA, provide funds to implement the EBT option 
     and for (1) start-up training, (2) reasonable one-time costs 
     of converting to a system capable of interstate and law 
     enforcement functions, (3) liabilities assumed by the 
     Secretary under the EBT option (e.g., for replaced replaced 
     benefits), and (4) implementing and expanding a nationwide 
     program for compliance with EBT and retailer rules; and
       (7) consult with government, food industry, financial 
     services, and food advocacy representatives in the conversion 
     to EBT as to (1) integrating EBT systems into commercial 
     networks, (2) EBT system security, (3) use of laser scanner 
     technology to ensure that only eligible items are purchased, 
     (4) use of EBT system data to identify fraud (5) means of 
     ensuring confidentiality, (6) using existing terminals and 
     systems top reduce costs (7) using EBT systems for multiple 
     benefits.
       Places requirements and conditions on States under the EBT 
     option. States:
       (1) must take into account generally accepted operating 
     rules based on commercial technology and the need to permit 
     interstate operations and law enforcement monitoring and 
     investigations;
       (2) may use paper-based and other benefit transfer 
     approaches for special-need retailers (located in very rural 
     areas, without access to dependable electricity or regular 
     telephone service, farmers' markets, and house-to-house trade 
     routes);
       (3) must purchase and install (or reimburse for) single-
     function point-of-sale (and related telephone) equipment, 
     usuable only for Federal/State assistance, for retailers that 
     do not have point-of-sale EBT equipment and do not intend to 
     obtain it in the near future [Note: Equipment must be capable 
     of interstate operations (based on commericial operating 
     principles) that permit law enforcement monitoring and be 
     capable of giving recipients access to multiple benefits.];
       (4) must purchase (or reimburse for) point-of-sale paper-
     based or alternative benefit transfer equipment for special-
     need retailers without this equipment who do not intend to 
     obtain it in the near future (equipment would be usuable only 
     for Federal/State assistance);
       (5) must be competitive bidding systems in purchasing EBT 
     equipment and cards [Note: States may not have purchase 
     agreements conditioned on buying additional services or 
     equipment, the Secretary must monitor prices paid, and the 
     Inspector General must investigate possible wrongdoing,];
       (6) must advise recipients how to promptly report lost, 
     stolen, damaged, improperly manufactured, dysfunctional, or 
     destroyed EBT cards;
       (7) must not (following the Secretary's regulations) 
     replace benefits lost due to unauthorized use an EBT card, 
     but recipients would receive replacement benefits for losses 
     caused by (1) force or threat of force, (2) unauthorized use 
     after the State gets notice by (1) force or threat of force, 
     (2) unauthorized use of the State and gets notice a card was 
     lost/stolen, or (3) problems with the EBT system [Note: 
     Except for losses caused by force or threat of force, States 
     must reimburse the Secretary for benefit replacements, and 
     States may obtain reimbursement from service providers for 
     losses caused by system problems.];
       (8) may require an explanation from recipients on occasions 
     where they report lost or stolen cards or cards are used for 
     an unauthorized transaction;
       (9) must, in appropriate circumstances, investigate and act 
     on (through administrative disqualification or court 
     referral) cases of lost or stolen cards or unauthorized use;
       (10) must (1) take into account the needs of law 
     enforcement personnel and the need to permit and encourage 
     technological/scientific advances, (2) ensure security is 
     protected, (3) provide for recipient privacy, ease of EBT 
     card use, and access to and service by retailers, (4) provide 
     for financial accountability and system capability for 
     interstate operations and law enforcement monitoring, (5) 
     prohibit retailer participation unless appropriate equipment 
     is operational and reasonably available to recipients, and 
     (6) provide for monitoring and investigation by law 
     enforcement agencies;
       (11) must, on a recipient's request, provide, once a month, 
     a statement of benefit transfers and balances for the 
     preceding month; and
       (12) must design systems to timely resolve disputes over 
     errors. [Note: Recipients able to obtain error corrections 
     under the system would not be entitled to a fair hearing.]
       Provides that retailers may return equipment provided by 
     the State and obtain equipment with their own funds and that 
     the cost of documents or systems under the EBT option may not 
     be imposed on retailers.
       Provides that EBT retailer fraud and related activities be 
     governed by the Food Stamp Act and 18 U.S.C. 1029.
       Makes technical and conforming amendments and defines 
     electronic benefit transfer system, retail food store, 
     special-need retail food store, and electronic benefit 
     transfer card.
     Conference agreement
       The Conference agreement follows the House bill, with an 
     amendment. States are required to implement an electronic 
     benefit transfer system (``on-line'' or ``off-line'') before 
     October 1, 2002, unless the Secretary waives the requirement 
     because a State agency faces unusual barriers to 
     implementation, and State are encouraged to implement an 
     electronic benefit transfer system as soon as practicable. 
     Subject to Federal standards, states are allowed to procure 
     and implement an electronic benefit transfer system under 
     terms, conditions, and design that they consider appropriate, 
     and a new requirement for Federal procurement standards is 
     added. A requirement is added for electronic benefit transfer 
     standards following generally accepted standard operating 
     rules based on commercial technology, the need to permit 
     interstate operation and law enforcement, and the need to 
     permit monitoring and investigations by authorized law 

[[Page H15472]]
     enforcement officials. A requirement that regulations regarding 
     replacement of benefits under an electronic benefit transfer 
     system be similar to those in effect for a paper food stamp 
     issuance system is added. The Conferees intend that 
     regulations issued by the Secretary regarding the replacement 
     of benefits and liability for replacement of benefits under 
     an EBT system will not require greater replacement of 
     benefits or impose greater liability than those regulations 
     in effect for a paper-based food stamp issuance system. 
     Provisions in the House bill that are retained are: a 
     provision deleting the requirement that electronic benefit 
     transfer systems be cost-neutral in any one year, 
     requirements as to measures to maximize security, and a 
     provision requiring measures to permit electronic benefit 
     systems to differentiate among food items (to the extent 
     practicable). The House bill provision allowing the Secretary 
     to waive Food Stamp Act provisions that prohibit effective 
     implementation of electronic benefit transfer systems is 
     deleted.


                     12. Value of Minimum Allotment

     Present law
       The minimum monthly allotment for 1- and 2-person 
     households is set at $10. It is scheduled to rise to $15 in 
     FY 1997 or 1998 (depending on food-price inflation). [Sec. 
     8(a)]
     House bill
       Sets the minimum monthly allotment for 1- and 2-person 
     households at $10.
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the House bill.


                13. Initial Month Benefit Determination

     Present law
       Recipient households not fulfilling eligibility 
     recertification requirements in the last month of their 
     certification period are allowed a 1-month ``grace period'' 
     in which to fulfill the requirements before their benefits 
     are pro-rated (reduced) to reflect the delay in meeting 
     recertification requirements. [Sec. 8(c)(2)(B)]
     House bill
       For those who do not complete all eligibility 
     recertification requirements in the last month of their 
     certification period, but are then determined eligible after 
     their certification period has expired, requires that they 
     receive reduced benefits in the first month of their new 
     certification period (i.e., their benefits would be pro-rated 
     to the date they met the requirements and were judged 
     eligible).
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                  14. Improving Food Stamp Management

                  A. Quality Control Fiscal Sanctions

     Present law
       States are assessed fiscal sanctions if their ``quality 
     control'' combined (overpayment and underpayment) error rate 
     for a given fiscal year is higher than the national average 
     for that year. The amount of each State's sanction is 
     determined by using a ``sliding scale'' so that its penalty 
     assessment reflects the degree to which its combined error 
     rate exceeds the national average tolerance level. In effect, 
     the current system requires that States be sanctioned for a 
     portion of every benefit dollar that exceeds the tolerance 
     level. For example, if the tolerance level were 10% and the 
     State's combined error rate were 12%, or 2 percentage points 
     (20%) above the tolerance level, the State would be assessed 
     a penalty of .2% of benefits issued in the State that year 
     (i.e., 20% of the excess above the threshold). [Sec. 16(c)]
     House bill
       Requires the assessment of fiscal sanctions if a State's 
     combined error rate is above a tolerance level set at the 
     lowest national average combined error rate ever achieved, 
     plus 1 percentage point. States would be assessed a dollar 
     penalty for each dollar in error above the tolerance level. 
     For example, if a State's combined error rate were 2 
     percentage points above the lowest ever national average 
     tolerance level, plus 1 percentage point, it would be 
     assessed a penalty of 2% of benefits issued in the State that 
     year.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                B. Quality Control Administrative Rules

     Present law
       Errors resulting from the application of new regulations 
     are not included in a State's error rate for assessing 
     sanctions during the first 120 days from required 
     implementation of the regulations. [Sec. 16(c)(3)(A)]
       Specific time frames are set out for completion of quality 
     control reviews, determining final error rates, and various 
     steps of the appeals process. Administrative law judges are 
     required to consider all grounds for denying a sanction claim 
     against a State, including contentions that a claim should be 
     waived for good cause. [Sec. 16(c)(8)]
       For judging to what degree a State should be sanctioned, 
     ``good cause'' is defined as including: (1) a natural 
     disaster or civil disorder that adversely affects food stamp 
     operations, (2) a strike by State employees who are necessary 
     for food stamp operations, (3) a significant growth in food 
     stamp caseload, (4) a change in the Food Stamp program (or 
     other Federal or State program) that has a substantial 
     adverse impact on the management of the Food Stamp program, 
     and (5) a significant circumstance beyond the control of a 
     State agency. [Sec. 16(c)(9)]
       If a State appeals a quality control sanction claim, 
     interest on any unpaid portion of the claim accrues from the 
     date of the decision on the administrative appeal or from a 
     date that is 1 year after the date a bill for the sanction is 
     received, whichever is earlier. [Sec. 13(a)(1)]
     House bill
       Bars inclusion of errors resulting from the application of 
     new regulations for 60 days (or 90 days at the Secretary's 
     discretion).
       Deletes specific time frames for reviews, error rates, and 
     the appeals process. Deletes the directive that 
     administrative law judges consider all grounds for denying a 
     sanction claim against a State.
       Deletes the Act's definition of good cause for the quality 
     control system.
       Requires that interest on sanction claims begin to accrue 
     from the date of the administrative appeal decision or 2 
     years after the sanction bill is received, whichever is 
     earlier.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


              15. work supplementation or support program

     Present law
       No provisions.
     House bill
       Permits States having a work supplementation or support 
     program (under which public assistance benefits are provided 
     to employers who hire public assistance recipients and then 
     used to pay part of their wages) to include the cash value of 
     a recipient's household food stamp benefits in the amount 
     paid the employer to subsidize wages paid. Work 
     supplementation/support programs would be required to meet 
     standards set by the Secretary in order to avail themselves 
     of the option to include food stamp benefits. The food stamp 
     benefit value of the supplement could not be considered 
     income for other purposes, and the household of the 
     participating member would not receive regular food stamp 
     allotments while the member was in a work supplementation/
     support program. States would be required to include any 
     plans for including food stamp recipients in work 
     supplementation or support programs in their State plans.
     Senate amendment
       Same as the House bill, except (1) a qualified work 
     supplementation/support program may not allow participation 
     of any individual for longer than one year (unless the 
     Secretary approves a longer period), and (2) a qualified work 
     supplementation/support program must be used for hiring and 
     employing new employees.
     Conference agreement
       The Conference agreement follows the House bill, with an 
     amendment to provide that (1) States must provide a 
     description of how recipients in the program will, within a 
     specific period of time, be moved to employment that is not 
     supplemented or supported and (2) programs not displace 
     employment of those who are not supplemented or supported.


                     16. Obligations and Allotments

     Present law
       The Food Stamp Act authorizes to be appropriated such sums 
     as are necessary for each FY1991-1995. [Sec. 18(a)]
     House bill
       Provides that the amount obligated under the Act will not 
     be in excess of the cost estimate of the Congressional Budget 
     Office for fiscal year 1996, with adjustments for additional 
     fiscal year--in both cases reflecting amendments made by the 
     Personal Responsibility Act.
       Requires the Secretary to file reports (each February, 
     April, and July) stating whether there is a need for 
     additional obligational authority and authorizes the 
     Secretary to provide recommendations as to how to equitably 
     achieve spending reductions if allotments must be limited in 
     any fiscal year.
     Senate amendment
       Authorizes such sums as are necessary through FY2002.
     Conference agreement
       The Conference agreement follows the House bill with the 
     following amendments. Appropriations (such sums as are 
     necessary) are authorized through FY2002. Annual obligations 
     are limited to $25,443,000,000 in FY 1996; $24,636,000,000 in 
     FY 1997; $25,319,000,000 in FY 1998; $26,307,000,000 in FY 
     1999; $27,568,000,000 in FY 2000; $28,602,000,000 in FY 2001; 
     and $29,804,000,000 in FY 2002. On May 15 of each year, the 
     Secretary must adjust that year's obligation limit based on 
     the increase or decrease in participation during the first 6 
     months of the year. On October 1 each year (the beginning of 
     the fiscal year), the Secretary also must adjust the upcoming 
     year's obligation limit based on the degree to which the cost 
     of the Thrifty Food Plan in the immediately preceding June 
     (the basis for each 

[[Page H15473]]
     October's food stamp benefit adjustment) is higher or lower than 
     projected by the Congressional Budget Office in its estimates 
     made prior to enactment. If the Secretary finds that program 
     funding requirements for a year will exceed allowed 
     obligations, the Secretary must direct States to reduce 
     allotments to the extent necessary to stay within the 
     obligation limits for the year. The Secretary is required to 
     report to the House and Senate Agriculture Committees.


    17. reauthorization of puerto rico nutrition assistance program

     Present law
       The Food Stamp Act requires the Secretary to pay specific 
     sums for Puerto Rico's nutrition assistance block grant for 
     FY1991-1995. The FY1995 amount is $1.143 billion. [Sec. 
     19(a)]
     House bill
       No provision.
     Senate amendment
       Requires the following payments for Puerto Rico's nutrition 
     assistance block grant: $1.143 billion for each of FY1995 and 
     FY1996, $1.182 billion for FY1997, $1.223 billion for FY1998, 
     $1.266 billion for FY1999, $1.310 billion for FY2000, $1.343 
     billion for FY2001, and $1.376 billion for FY2002.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment to require the following payments for Puerto 
     Rico's block grant: $1.143 billion for FY1996, $1.174 billion 
     for FY1997, $1.204 billion for FY1998, $1.236 billion for 
     FY1999, $1.268 billion for FY2000, $1.301 billion for FY2001, 
     and $.1335 billion for FY2002.


            18. authority to establish authorization periods

     Present law
       No provision.
     House bill
       Requires the Secretary to establish specific time periods 
     during which retail food stores' and wholesale food concerns' 
     authorization to accept and redeem food stamps coupons (or 
     redeem food stamp benefits through an electronic benefit 
     transfer system) will be valid.
     Senate amendment
       Permits the Secretary to issue regulations establishing 
     specific time periods during which authorization to accept 
     and redeem food stamp coupons will be valid.
     Conference agreement
       The Conference agreement follows the House bill.


    19. condition precedent for approval of retail food stores and 
                        wholesale food concerns

     Present law
       No provision.
     House bill
       Provides that no retail food stores or wholesale food 
     concerns be approved for participation in the Food Stamp 
     program unless an Agriculture Department employee (or, 
     whenever possible, a State or local government official 
     designated by the Department) has visited it.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill, with an 
     amendment limiting stores and food concerns that must be 
     visited to those of a type, determined by the Secretary, 
     based on factors that include size, location, and type of 
     items sold.


 20. waiting period for retail food stores and wholesale food concerns 
               that are denied approval to accept coupons

     Present law
       No provision.
     House bill
       Provides that retail food stores and wholesale food 
     concerns that have failed to be approved for participation in 
     the Food Stamp program may not submit a new application for 
     approval for 6 months from the date they receive a notice of 
     denial. Current law provisions granting denied retailers and 
     wholesalers a hearing on a refusal are retained.
     Senate amendment
       Same as the House bill, except that stores and concerns may 
     not submit a new application for 6 months from the date of 
     the denial.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment providing that stores and concerns denied 
     approval because they do not meet the Secretary's approval 
     criteria may not, for at least 6 months, submit a new 
     application. The Secretary is allowed to establish longer 
     waiting periods, including permanent disqualification, that 
     reflect the severity of the basis for denial.


 21. Disqualification of Retail Food Stores and Wholesale Food Concerns

     Present law
       No provision.
     House bill
       Requires that a retail food store or wholesale food concern 
     that is disqualified from participation in the Special 
     Supplemental Nutrition Program for Women, Infants, and 
     Children (WIC) also be disqualified from participating in the 
     Food Stamp program for the period of time it is disqualified 
     from the WIC program.
     Senate amendment
       Requires the Secretary to issue regulations providing 
     criteria for disqualifying from food stamps retail food 
     stores and wholesale food concerns disqualified from the WIC 
     program. Disqualification must be for the same period as 
     under the WIC program, may begin at a later date, and would 
     not be subject to food stamp administrative/judicial review 
     procedures.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     a technical amendment.


22. Authority to Suspend Stores Violating Program Requirements Pending 
                   Administrative and Judicial Review

     Present law
       No provision.
     House bill
       Requires that, where a retail food store or wholesale food 
     concern has been permanently disqualified (for its third 
     offense or for certain instances of trafficking), the 
     disqualification period will be effective from the date it 
     receives notice of disqualification, pending administrative 
     and judicial review.
     Senate amendment
       Permits regulations establishing criteria under which 
     authorization of a retail food store or wholesale food 
     concern may be suspended at the time the store/concern is 
     initially found to have committed a violation that would 
     result in permanent disqualification; the suspension may 
     coincide with the period of administrative/judicial review. 
     The Secretary would not be liable for the value of any lost 
     sales during any suspension/disqualification period.
       Requires notice in suspension cases. Stipulates that a 
     suspension period remains in effect pending administrative/
     judicial review and that the suspension period be part of any 
     disqualification imposed.
       Removes provisions for courts temporarily staying 
     administrative actions against stores, concerns, and States 
     pending judicial appeal.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment providing that any permanent disqualification of 
     a store or concern be effective from the date the notice of 
     disqualification is received. If the disqualification is 
     reverse through administrative or judicial review, the 
     Secretary is not liable for the value of lost sales during 
     the disqualification period.


                        23. criminal forfeiture

     Present law
       ``Administrative forfeiture'' rules allow the Secretary to 
     subject property involved in a program violation to 
     forfeiture to the United States. [Sec. 15(g)]
     House bill
       Establishes ``criminal forfeiture'' rules. Requires courts, 
     in imposing sentence on those convicted of trafficking in 
     food stamp benefits, to order that the person forfeit 
     property to the United States (in addition to any other 
     sentence imposed). Property subject to forfeiture would 
     include all property (real and personal) used in a 
     transaction (or attempted transaction) to commit (or 
     facilitate the commission of) a trafficking violation (other 
     than a misdemeanor); proceeds traceable to the violation also 
     would be subject to forfeiture. An owner's property interest 
     would not be subject to forfeiture if the owner establishes 
     that the violation was committed without the owner's 
     knowledge or consent. (p. 246).
       Requires that the proceeds from any sale of forfeited 
     properties, and any money forfeited, be used (1) to reimburse 
     the Justice Department for costs incurred in initiating and 
     completing forfeiture proceedings, (2) to reimburse the 
     Agriculture Department's Office of Inspector General for 
     costs incurred in the law enforcement effort that led to the 
     forfeiture, (3) to reimburse Federal or State law enforcement 
     agencies for costs incurred in the law enforcement effort 
     that led to the forfeiture, and (4) by the Secretary to carry 
     out store approval, reauthorization, and compliance 
     activities.
     Senate amendment
       Removes provisions for administrative forfeiture for 
     property ``intended to be furnished'' in trafficking cases.
       Establishes ``criminal forfeiture'' rules similar to those 
     in the House bill, but applied only in trafficking cases 
     involving benefits of $5,000 or more. Property subject to 
     forfeiture would include: (1) food stamp benefits, and any 
     property constituting, derived from, or traceable to any 
     proceeds obtained directly or indirectly as the result of the 
     violation and (2) food stamp benefits, and any property used 
     or intended to be used to commit or facilitate the violation.
       Food stamp benefits and property subject to criminal 
     forfeiture, any seizure or disposition of the benefits/
     property, and any administrative/judicial proceeding relating 
     to the benefits/property would be subject to forfeiture 
     provisions of the Drug Abuse Prevention and Control Act of 
     1970 (where consistent with Food Stamp Act provisions). 
     [Note: No specific Food Stamp Act provisions for use of the 
     proceeds from forfeited property are included]
     Conference agreement
       The Conference agreement follows the House bill.
     
[[Page H15474]]



                 24. expanded definition of ``coupon''

     Present law
       The Act defines ``coupon'' to mean any coupon, stamp, or 
     type of certificate issued under the provisions of the Food 
     Stamp Act. [Sec. 3(d)]
     House bill
       In order to expand the types of items to which trafficking 
     penalties apply, revises the current definition of ``coupon'' 
     to include authorization cards, cash or checks issued in lieu 
     of coupons, and ``access devices'' for electronic benefit 
     transfer systems (including electronic benefit transfer cards 
     and personal identification numbers).
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the Senate amendment.


      25. Doubled Penalties for Violating Food Stamp Requirements

     Present law
       The disqualification penalty for the first intentional 
     violation of program requirements is 6 months. The penalty 
     for a second intentional violation (and the first violation 
     involving trading of a controlled substance) is 1 year. [Sec. 
     6(b)(1)]
     House bill
       Inreases the disqualification penalty for a first 
     intentional violation to 1 year. Increases the 
     disqualification penalty for a second intentional violation 
     (and the first violation involving a controlled substance) to 
     2 years.
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the Senate amendment.


             26. Disqualification of Convicted Individuals

     Present law
       Permanent disqualification is required for the third 
     intentional violation of program requirements, the second 
     violation involving trading of a controlled substance, and 
     the first violation involving trading of firearms, 
     ammunition, or explosives. [Sec. 6(b)(1)]
     House bill
       Adds a requirement for permanent disqualification of 
     persons convicted of trafficking in food stamp benefits where 
     the benefits trafficked have a value of $500 or more.
     Senate amendment
       No comparable provision.
     Conference agreement
       The Conference agreement follows the House bill, with a 
     technical amendment.


                         27. claims collection

                     A. Federal Income Tax Refunds

     Present law
       Otherwise uncollected overissued benefits may, except for 
     claims arising out of State agency error, may be recovered 
     from Federal pay or pensions. [See 13(d) and Sec. 11(e)(8)]
     House bill
       Requires collection of otherwise uncollected overissued 
     benefits, other than those arising out of State agency error, 
     from Federal pay or pensions and from Federal income tax 
     refunds.
     Senate amendment
       Permits collection of all otherwise uncollected overissued 
     benefits from Federal pay or pensions and from Federal income 
     tax refunds.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                 B. Authority to Collect Overissuances

     Present law
       State collection of overissued benefits is limited in 
     certain circumstances. In the case of overissuances due to an 
     intentional program violation, households must agree to 
     repayment by either a reduction in future benefits or cash 
     repayment; States also are required to collect overissuances 
     to these households through other means, such as tax refund 
     or unemployment compensation collections (if a cash repayment 
     or reduction is not forthcoming), unless they demonstrate 
     that the other means are not cost effective. In cases of 
     overissuance because of inadvertent household ``error,'' 
     States must collect the overissuance through a reduction in 
     future benefits--except that households must be given 10 
     days' notice to elect another means, and collections are 
     limited to 10% of the monthly allotment or $10 a month 
     (whichever would result in faster collection)--and may use 
     other means of collection. In cases of overissuances because 
     of State agency error, States may request repayment or use 
     other means of collection (not including reduction in future 
     benefits). [Sec. 13(b)] States may retain 25% of ``non-
     fraud'' collections not caused by State error and 50% of 
     ``fraud'' collections (increased from 10% and 25% on October 
     1, 1995). [Sec. 16(a)]
     House bill
       No provisions
     Senate amendment
       Replaces existing overissuance collection rules with 
     provisions requiring States to collect any overissuance of 
     benefits by reducing future benefits, withholding 
     unemployment compensation, recovering from Federal pay or 
     income tax refunds, or any other means--unless the State 
     demonstrates that all of the means are not cost effective. 
     Bars the use of future benefit reductions as a claims 
     collection mechanism if it would cause a hardship on the 
     household (as determined by the State) and limits benefit 
     reductions (absent intentional program violations) to the 
     greater of 10% of the monthly benefit or $10 a month. 
     Provides that States must collect overissued benefits in 
     accordance with State-established requirements for notice, 
     electing a means of payment, and setting a schedule for 
     payment.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment (1) deleting the specific bar against 
     collections in hardship cases and (2) setting the percentage 
     of collections (other than in cases of State agency error) 
     that a State may retain at a uniform 25%.


28. Denial of Food Stamp Benefits For 10 Years to Individuals Found to 
Have Fraudulently Misrepresented Residence In Order To Obtain Benefits 
                   Simultaneously in 2 or More States

     Present law
       Disqualification periods ranging from 6 months to permanent 
     disqualification are prescribed for intentional violations of 
     Food Stamp program requirements. [Sec. 6(b)]
     House bill
       Disqualifies from food stamps for 10 years an individual 
     found to have fraudulently misrepresented the individual's 
     place of residence in order to receive food stamp, Medicaid, 
     TANF, or Supplemental Security Income (SSI) benefits in two 
     or more States.
     Senate amendment
       Disqualifies from food stamps permanently an individual 
     found to have fraudulently misrepresented the individual's 
     place of residence in order to receive food stamps in two or 
     more States.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment disqualifying from food stamps for 10 years an 
     individual found by a State agency or court to have made a 
     fraudulent misrepresentation of identity or residence in 
     order to receive multiple benefits. The conferees note that 
     State agency hearing processes have sufficient recipient 
     protections to warrant a decision to impose a 10-year 
     disqualification in these cases.


         29. disqualification relating to child support arrears

     Present law
       No provision.
     House bill
       Disqualifies individuals during any period the individual 
     has an unpaid liability that is under a court child support 
     order, unless the court is allowing delayed payments.
     Senate amendment
       Same as the House bill, except that States are permitted to 
     apply a child support arrears disqualification and compliance 
     with a child support agency payment plan also exempts 
     individuals from disqualification.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment that requires disqualification.


30. Elimination of Food Stamp Benefits with Respect to Fugitive Felons 
                   and Probation and Parole Violators

                 A. Disqualification of Fleeing Felons

     Present law
       No provision.
     House bill
       Disqualifies individuals while they are (1) fleeing to 
     avoid prosecution or custody after conviction for a crime (or 
     crime attempt) which is a felony or (2) violating a condition 
     of parole under Federal or State law.
     Senate amendment
       Same as the House bill.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     a technical amendment.

                       B. Exchange of Information

     Present law
       Requires State agencies to immediately report to the 
     Immigration and Naturalization Service a determination that a 
     food stamp household member is ineligible for food stamps 
     because the individual is present in the United States in 
     violation of the Immigration and Nationality Act. [Sec. 
     11(e)(17)]
     House bill
       Requires State food stamp agencies to make available to law 
     enforcement officers the address of a food stamp recipient if 
     the officer furnishes the recipient's name and notifies the 
     agency that (1) the individual is fleeing to avoid 
     prosecution or custody for a felony crime (or attempt) or the 
     individual has information necessary for the officer to 
     conduct official duties, (2) the location or apprehension of 
     the individual is within the officer's official duties, and 
     (3) the request is made in the proper exercise of official 
     duties.
     Senate amendment
       Similar to the House bill, requires State food stamp 
     agencies to make available to law enforcement officers the 
     address, social security number, and (when available) 
     photograph of a food stamp recipient if the officer furnishes 
     the recipient's name and notifies the agency as stipulated in 
     the House bill.
       Requires State agencies to furnish the Immigration and 
     Naturalization Service with 

[[Page H15475]]
     the name of, address of, and identifying information on any individual 
     the agency knows is unlawfully in the United States.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment (1) deleting the requirement for Immigration and 
     Naturalization Service notification and (2) making clear that 
     the requested information must be related to apprehension of 
     a felon or parolee.


                          31. Effective Dates

     Present law
       No provision.
     House bill
       Except for amendments dealing with the Food Stamp program's 
     quality control system (effective October 1, 1994), the food 
     stamp and commodity distribution program amendments made by 
     the Personal Responsibility Act would be effective October 1, 
     1995.
     Senate amendment
       Provides that Food Stamp Act amendments would be effective 
     October 1, 1995.
     Conference agreement
       The Conference agreement provides that (1) provisions 
     affecting deduction levels are effective October 1, 1996. and 
     (2) all other provisions are effective on enactment.


                         32. Sense of Congress

     Present law
       No provision.
     House bill
       Provides that it is the sense of Congress the States 
     operating electronic benefit transfer systems to provide food 
     stamp benefits should operate systems that are compatible 
     with each other.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill.


                         33. Deficit Reduction

     Present law
       No provision.
     House bill
       Provides that it is the sense of the House Committee on 
     Agriculture that reductions in outlays resulting from Food 
     Stamp Act (and commodity distribution program) provisions of 
     the Personal Responsibility Act not be taken into account for 
     purposes of Section 252 of the Balanced Budget and Emergency 
     Deficit Control Act (relating to enforcement of ``pay-as-you-
     go'' provisions of the Budget Act).
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                        34. Certification Period

     Present law
       For households subject to periodic (monthly) reporting of 
     their circumstances, eligibility certification periods must 
     be 6-12 months, except that the Secretary may waive this rule 
     to improve program administration. For households receiving 
     federally aided public assistance or general assistance, 
     certification periods must coincide with the certification 
     periods for the other public assistance. For other 
     households, certification periods generally must be not less 
     than 3 months--but they can be (1) up to 12 months for those 
     consisting entirely of unemployable, elderly, or primarily 
     self-employed persons or (2) as short as circumstances 
     require for those with a substantial likehood of frequent 
     changes in income or other household circumstances and for 
     any household on initial eligibility determination (as judged 
     by the Secretary). The Secretary may waive the maximum 12-
     month limit to improve program administration. [See 3(c)]
     House bill
       No provision.
     Senate amendment
       Replaces existing provisions as to certification periods 
     with a requirement that certification periods not exceed 12 
     months--but can be up to 24 months if all adult household 
     members are elderly, disabled, or primarily self-employed.
       Requires State agencies to have at least 1 personal contact 
     with each certified household every 12 months.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment allowing certification periods of up to 24 
     months for households whose adult members are all elderly or 
     disabled and deleting the reference to a ``personal'' 
     contact.


                35. Treatment of Children Living at Home

     Present law
       Parents and their children 21 years of age or younger who 
     live together must apply for food stamps as a single 
     household (thereby reducing aggregate household benefits)--
     except for children who are themselves parents living with 
     their children and children who are married and living with 
     their spouses. [Sec. 3(i)]
     House bill
       No provision.
     Senate amendment
       Removes the existing exception for children who are 
     themselves parents living with their children and children 
     who are married and living with their spouses.
     Conference agreement
       The Conference agreement follows the Senate amendment.


 36. optional additional criteria for separate household determinations

     Present law
       Certain persons who live together may apply for food stamps 
     as separate households (thereby increasing aggregate 
     household benefits) if they (1) are unrelated and purchase 
     food and prepare meals separately or (2) are related but are 
     not spouses or children living with their parents (See item 
     35). In addition, elderly persons who live with others and 
     cannot purchase food and prepare meals separately because of 
     a substantial disability may apply a separate households as 
     long as their co-residents' income is below prescribed limits 
     (165% of the Federal poverty income guidelines). [Sec. 3(i)]
     House bill
       No provision.
     Senate amendment
       Permits States to establish criteria that prescribe when 
     individuals living together, and would otherwise be allowed 
     to apply as separate households, must apply as a single 
     household (without regard to common purchase of food and 
     preparation of meals).
     Conference agreement
       The Conference agreement follows the Senate amendment.


                 37. definition of homeless individual

     Present law
       For food stamp eligibility and benefit determination 
     purposes, a ``homeless individual'' is a person lacking a 
     fixed/regular nighttime residence or one whose primary 
     nighttime residence is a shelter, a residence intended for 
     those to be institutionalize, a temporary accommodation in 
     the resident of another, or a public or private place not 
     designed to be a regular sleeping accommodation for humans. 
     [Sec. 3(s)]
     House bill
       No provision.
     Senate amendment
       Provides that persons whose primary nighttime residence is 
     a temporary accommodation in the home of another may only be 
     considered homeless if the accommodation is for no more than 
     90 days.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                    38. state options in regulations

     Present law
       The Secretary is directed to establish uniform national 
     standards of eligibility for food stamps (with certain 
     variations allowed for Alaska, Hawaii, Guam, and the Virgin 
     Islands) and in other cases (e.g., imposition of monthly 
     reporting requirements). States may not impose any other 
     standards of eligibility as a condition of participation in 
     the program. [Sec. 5(b)]
     House bill
       No directly comparable provision. [Note: See item 3.]
     Senate amendment
       Explicitly permits non-uniform standards of eligibility.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                        39. earnings of students

     Present law
       The earnings of an elementary/secondary student are 
     disregarded as income until the student's 22nd birthday. 
     [Sec. 5(d)(7)]
     House bill
       No provision.
     Senate amendment
       Requires that earnings of an elementary/secondary student 
     be counted as income once the student turns age 20.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment requiring that earnings be counted for students 
     who are 20 or older.


                        40. Benefits for Aliens

               A. Deeming Sponsors' Income and Resources

     Present law
       A portion of the income and resources of the sponsor of a 
     lawfully admitted alien must be deemed as available to the 
     sponsored alien for 3 years after the alien's entry. Income 
     is deemed to the extent it exceeds the appropriate food stamp 
     income eligibility limit (130% of the Federal income poverty 
     guidelines); liquid resources are deemed to the extent they 
     exceed $1,500. [Sec. 5(i)]
     House bill
       No directly comparable provision.
     Senate amendment
       Extends the deeming period for sponsored legal aliens to 5 
     years from lawful admittance or the period of time agreed to 
     in the sponsor's affidavit, whichever is longer. [Note: See 
     conference comparison for title IV in the House bill and 
     title V in the Senate amendment.]
     Conference agreement
       The Conference agreement follows the House bill.

                B. Counting Aliens' Income and Resources

     Present law
       The income (less a pro rata share) and all resources of 
     aliens who are ineligible for food 

[[Page H15476]]
     stamps under provisions of the Food Stamp Act are counted as income/
     resources to the rest of the household living with the alien. 
     [Sec. 6(f)]
     House bill
       No provision.
     Senate amendment
       Permits States to count all of the income and resources of 
     aliens ineligible for food stamps under the provisions of the 
     Food Stamp Act as income/resources to the rest of the 
     household.
     Conference agreement
       The Conference agreement follows the Senate amendment.


              41. Cooperation with Child Support Agencies

                          A. Custodial Parents

     Present law
       No provisions.
     House bill
       No provisions.
     Senate amendment
       Permits States to disqualify custodial parents of children 
     under the age of 18 who have an absent parent unless the 
     custodial parent cooperates with the State child support 
     agency in establishing the child's paternity and obtaining 
     support for the child and the custodial parent. Cooperation 
     would not be required if the State finds there is good cause 
     (in accordance with Federal standards taking into account the 
     child's best interest). Fees or other costs for services 
     could not be charged.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                        B. Non-custodial Parents

     Present law
       No provisions.
     House bill
       No provisions.
     Senate amendment
       Permits States to disqualify putative or identified non-
     custodial parents of children under 18 if they refuse to 
     cooperate with the State child support agency in establishing 
     the child's paternity and providing support for the child. 
     The Secretary and the Secretary of Health and Human Services 
     would develop guidelines for what constitutes a refusal to 
     cooperate, and States would develop procedures (using these 
     guidelines) for determining whether there has been a refusal 
     to cooperate. Fees or other costs for services could not be 
     charged. States would be required to provide safeguards to 
     restrict the use of information collected by the child 
     support agency to the purposes for which it was collected.
     Conference agreement
       The Conference agreement follows the Senate amendment.


        42. optional combined allotment for expedited households

     Present law
       For households applying after the 15th day of the month, 
     States may provide an allotment that is the aggregate of the 
     initial (pro-rated) allotment and the first regular 
     allotment--but combined allotments must be provided to 
     households applying after the 15th of the month who are 
     entitled to expedited service. [Sec. 8(c)(3)]
     House bill
       No provision.
     Senate amendment
       Makes provision of combined allotments a State option both 
     for regular and expedited service applicants.
     Conference agreement
       The Conference agreement follows the Senate amendment.


43. failure to comply with other welfare and public assistance programs

     Present law
       Households penalized for an intentional failure to comply 
     with a Federal, State, or local welfare program may not, for 
     the duration of the penalty, receive an increased food stamp 
     allotment because their welfare income has been reduced. 
     [Sec. 8(d)]
       [Note: This has been interpreted by regulation to apply 
     only to reductions in welfare income due to repayment of 
     overpayments resulting from a welfare violation, although a 
     revision of the regulation is scheduled.]
     House bill
       [Note: See item 4C.]
     Senate amendment
       Bars increased food stamp allotments because the benefits 
     of a household are reduced under a Federal, State, or local 
     welfare or public assistance program for failure to perform a 
     required action. In carrying out this requirement, States 
     may, in determining food stamp allotments for the duration of 
     the public assistance reduction, use the household's pre-
     reduction welfare benefits.
       Permits States also to reduce the household's food stamp 
     allotment by up to 25%. If the allotment is reduced for 
     failure to perform an action required under a family 
     assistance block grant program, the State may use the rules 
     and procedures of that program to reduce the food stamp 
     allotment.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment changing references to welfare or public 
     assistance programs to references to mean-tested public 
     assistance programs.


         44. allotments for households residing in institutions

     Present law
       Homeless shelters and residential drug or alcoholic 
     treatment centers may be designated as recipients' authorized 
     representatives. [Note: In the case of residential treatment 
     centers, benefits generally are provided to the center.]
     House bill
       No provision.
     Senate amendment
       Permits States to divide a month's food stamp benefits 
     between the shelter/center and an individual who leaves the 
     shelter/center.
       Permits States to require residents of shelters/centers to 
     designate the shelter/center as authorized representatives.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment deleting homeless shelters from those 
     institutions covered by the amendment.


                  45. operation of food stamp offices

                       A. State Plan Requirements

     Present law
       States must:
       (1) allow households contacting the food stamp office in 
     person during office hours to make an oral/written request 
     for aid and receive and file an application on the same day;
       (2) use a simplified, uniform federally designed 
     application, unless a waiver is approved;
       (3) include certain, specific information in applications;
       (4) waive in-person interviews under certain circumstances 
     (they may use telephone interviews or home visits instead);
       (5) provide for telephone contact and mail application by 
     household with transportation or similar difficulties;
       (6) require an adult representative of the household to 
     certify as to household members' citizenship/alien status;
       (7) assist households in obtaining verification and 
     completing applications;
       (8) not require additional verification of currently 
     verified information (unless there is reason to believe that 
     the information is inaccurate, incomplete, or inconsistent);
       (9) not deny an application solely because a non-household 
     member fails to cooperate;
       (10) process applications if the household meets 
     cooperation requirements;
       (11) provide households (at certification and 
     recertification) with a statement of reporting 
     responsibilities;
       (12) provide a toll-free or local telephone number at which 
     households may reach State personnel;
       (13) display and make available nutrition information; and
       (14) use mail issuance in rural areas where low-income 
     households face substantial difficulties in obtaining 
     transportation (with exceptions for high mail losses). [Sec. 
     11(e)(2), (3), (14), & (25)]
     House bill
       No provisions.
     Senate amendment
       Replaces noted existing State plan requirements with 
     requirements that the State:
       (1) establish procedures governing the operation of food 
     stamp offices that it determines best serve households in the 
     State, including those with special needs (such as households 
     with elderly or disabled members, those in rural areas, the 
     homeless, households residing on reservations, and households 
     speaking a language other than English);
       (2) provide timely, accurate, and fair service to 
     applicants and participants;
       (3) permit applicants to apply and participate on the same 
     day they first contact the food stamp office during office 
     hours; and
       (4) consider an application field on the date the applicant 
     submits an application that contains the applicant's name, 
     address, and signature.
       Permits States to establish operating procedures that vary 
     for local food stamp offices to reflect regional and local 
     differences.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment that also (1) requires applicants to certify in 
     writing as the truth of information on application (including 
     citizenship status), (2) stipulates that the signature of a 
     single adult will be sufficient to comply with any provision 
     of Federal law requiring applicant's signatures, (3) requires 
     that States have methods for certifying homeless households, 
     (4) makes clear that nothing in the Food Stamp Act prohibits 
     electronic storage of application and other information, and 
     (5) makes technical amendments.

                  B. Application and Denial Procedures

     Present law
       A single interview for determining AFDC and food stamp 
     benefits if required. Food stamp applications generally are 
     required to be contained in public assistance applications, 
     and applications and information on how to apply for food 
     stamps must be provided local assistance applicants. 
     Applicants (including those who have recently lost or been 
     public assistance) must be certified eligible for food stamps 
     based on the information in their public assistance casefile 
     (to the extent it is reasonably verified).
       No household may be terminated from or denied food stamps 
     solely on the basis that it 

[[Page H15477]]
     has terminated from or denied other public assistance and without a 
     separate food stamp eligibility determination.
     House bill
       No provisions.
     Senate amendment
       Deletes noted existing requirements for single interviews, 
     applications, and food stamp determinations based on public 
     assistance information.
       Permits disqualification for food stamps based on another 
     public assistance program's disqualification for failure to 
     comply with its rules or regulations.
     Conference agreement
       The Conference agreement follows the Senate amendment.


               46. state employee and training standards

     Present law
       States must employ agency personnel doing food stamp 
     certifications in accordance with current Federal ``merit 
     system'' standards. States must provide continuing, 
     comprehensive training for all certification personnel. 
     States may undertake intensive training of certification 
     personnel to ensure they are qualified for certifying farming 
     households. States may provide or contract for the provision 
     of training/assistance to persons working with volunteer or 
     nonprofit organizations that provide outreach and eligibility 
     screening activities. [Sec. 11(e)(6)]
     House bill
       No provision.
     Senate amendment
       Deletes noted existing provisions for merit system 
     standards and training.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment retaining existing provisions for merit system 
     standards.


                      47. expedited coupon service

     Present law
       States must provide expedited benefits to applicant 
     households that (1) have gross income under $150 a month (or 
     are ``destitute'' migrant or seasonal farmworker households) 
     and have liquid resources of no more then $100, (2) homeless 
     households, and (3) households that have combined gross 
     income and liquid resources less than the household's monthly 
     shelter expenses.
       Expedited service means providing an allotment no later 
     than 5 days after application. [Sec. 11(e)(9)]
     House bill
       No provision.
     Senate amendment
       Deletes noted existing requirements to provide expedited 
     service to the homeless and households with shelter expenses 
     in excess of their income/resources.
       Lengthens the period in which expedited benefits must be 
     provided to 7 business days.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment providing that expedited benefits must be 
     provided in 7 calendar days.


                           48. fair hearings

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Permits households to withdraw fair hearing requests orally 
     or in writing. If it is an oral request, the State must 
     provide a written notice to the household confirming the 
     request and providing the household with another chance to 
     request a hearing.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment providing that permission for households to 
     withdraw fair hearing requests orally or in writing is a 
     State option.


             49. income and eligibility verification system

     Present law
       States must use the ``income and eligibility verification 
     systems'' established under Sec. 1137 of the Social Security 
     Act to assist in verifying household circumstances; this 
     includes a system for verifying financial circumstances 
     (IEVS) and a system for verifying alien status (SAVE). [Sec. 
     11(e)(19) of the Food Stamp Act and Sec. 1137 of the Social 
     Security Act.]
     House bill
       No provision.
     Senate amendment
       Makes use of IEVS and SAVE optional with the States.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment making clear that the option applies to both 
     IEVS and SAVE.


  50. termination of federal march for optional information activities

     Present law
       If a State opts to conduct informational (``outreach'') 
     activities for the food stamp program, the Federal Government 
     shares half the cost. [Sec. 11(e)(1) & Sec. 16(a)]
     House bill
       No provision.
     Senate amendment
       Terminates the Federal share of optional State outreach 
     activities. [Note: Sec. 333(b) makes a technical amendment to 
     Sec. 16(g) of the Food Stamp Act.]
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment that does not terminate the Federal share of 
     optional State outreach activities but bar a Federal share 
     for ``recruitment activities.''


                    51. standards for administration

     Present law
       The Secretary is required to (1) establish standards for 
     efficient and effective administration of the program, 
     including standards for review of food stamp office hours to 
     ensure that employed individuals are adequately served, and 
     (2) instruct States to submit reports on administrative 
     actions taken to meet the standards. [Sec. 16(b)]
     House bill
       No provision.
     Senate amendment
       Deletes the noted existing requirements relating to Federal 
     standards for efficient and effective administration.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                          52. waiver authority

     Present law
       The Secretary may waive Food Stamp Act requirements to the 
     degree necessary to conduct pilot/demonstration projects, but 
     no project may be implemented that would lower or further 
     restrict food stamp income/resource eligibility standards or 
     benefit levels (other than certain projects involving the 
     payment of the average value of allotments in cash and 
     certain work program demonstrations). [Sec. 17(b)(1)]
     House bill
       No provision.
     Senate amendment
       Replaces existing waiver authority with authority for the 
     Secretary to waive Food Stamp Act requirements to the extent 
     necessary to conduct pilot/experimental projects, including 
     those designed to test innovative welfare reform, promote 
     work, and allow conformity with other assistance programs.
       Requires that any project involving the payment of benefits 
     in the form of cash maintain the average value of allotments 
     for affected households.
     Conference agreement
       The Conference agreement follows the Senate amendment. The 
     Secretary is permitted to conduct pilot or experimental 
     projects and waive Food Stamp Act requirements as long as the 
     project is consistent with the goal of the food stamp 
     program, to provide food to increase the level of nutrition 
     among needy families. The Secretary is permitted to conduct 
     projects that will improve the administration of the program, 
     increase self-sufficiency of food stamp participants, test 
     innovative welfare reform strategies, or allow greater 
     conformity among public assistance programs than is otherwise 
     allowed in the Food Stamp Act. The Secretary is not permitted 
     to conduct projects that involve issuing food stamp benefits 
     in the form of cash (beyond those approved at enactment), 
     substantially transfer program benefits to other public 
     assistance programs, or are not limited to specific time 
     periods.


                  53. authorization of pilot projects

     Present law
       Existing pilot projects for the payment of food stamp 
     benefits in the form of cash to households composed of 
     elderly persons or SSI recipients are authorized to continue 
     through October 1, 1995, if a State requests. [Sec. 17(b)(1)]
     House bill
       No provision.
     Senate amendment
       Extends the authorization for elderly/SSI cash-out projects 
     through October 1, 2002.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                        54. Response to Waivers

     Present law
       No provisions.
     Present law
       No provisions.
     House bill
       No provision.
     Senate amendment
       Requires that, not later than 60 days after receiving a 
     demonstration project waiver request, the Secretary (1) 
     approve the request, (2) deny the request and explain any 
     modifications needed for approval, (3) deny the request and 
     explain the grounds for denial, or (4) ask for clarification 
     of the request. If a response is not forthcoming in 60 days, 
     the waiver would be considered approved. If a waiver request 
     is denied, the Secretary must provide a copy of the waiver 
     request and the grounds for denial to the House and Senate 
     Agriculture Committees.
     Conference agreement
       The Conference agreement follows the Senate amendment.


               55. Private Sector Employment Initiatives

     Present law
       No provision.
     House bill
       [Note: See item 4E.]
     
[[Page H15478]]

     Senate amendment
       Allows certain States to operate `private sector employment 
     initiatives'' under which food stamp benefits could be paid 
     in cash to some participants households. States would be 
     eligible to operate private sector employment initiatives if 
     not less than 50% of the households that received food stamp 
     benefits in the summer of 1993 also received AFDC benefits. 
     Households would be eligible to receive cash payments if an 
     adult member so elects and (1) has worked in unsubsidized 
     private sector employment for not less than the 90 preceding 
     days, (2) has earned not less than $350 a month from that 
     employment, (3) is eligible to receive family assistance 
     block grant benefits (or was eligible when cash payments were 
     first received and is no longer eligible because of earned 
     income), and (4) is continuing to earn not less than $350 a 
     month from private sector employment. States operating a 
     private sector employment initiative for 2 years must provide 
     a written evaluation of the impact of cash assistance (the 
     content of the evaluation would be determined by the State).
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment requiring States that select this option to 
     increase benefits to compensate for State or local sales 
     taxes on food purchases.


                       56. Optional Block Grants

     Present law
       No provisions.
     House bill
       [Note: Sec. 556(b) of the House bill adds a new section 25 
     to the Food Stamp Act containing provisions for an optional 
     block grant.]
       Allows States that have fully implemented an electronic 
     benefit transfer system to elect an annual block grant to 
     operate a low-income nutrition assistance program in lieu of 
     the food stamp program.
       Grants funds to States electing a block grant.--States 
     would receive (1) the greater of: the total fiscal year 1994 
     amount they received as food stamp benefits; or the fiscal 
     years 1992-1994 average they received as food stamp benefits 
     and (2) the greater of: the fiscal year 1994 Federal share of 
     administrative costs; or the fiscal years 1992-1994 average 
     they received as the Federal share of administrative costs. 
     Grant payments would be made at times and in a manner 
     determined by the Secretary.
       Requires annual submission of a State plan specifying the 
     manner in which the block grant nutrition assistance program 
     will be conducted. The plan must:
       (1) certify that the State has implemented a State-wide 
     electronic benefit transfer system under Food Stamp Act 
     conditions;
       (2) designate a single State agency responsible for 
     administration;
       (3) assess the food and nutrition needs of needy persons in 
     the State;
       (4) limit assistance to the purchase of food;
       (5) describe the persons to whom aid will be provided;
       (6) assure that assistance will be provided to the most 
     needy;
       (7) assure that applicants for assistance have adequate 
     notice and fair hearing rights comparable to those under the 
     regular food stamp program;
       (8) provide that there be no discrimination on the basis of 
     race, sex, religion, national origin, or political beliefs; 
     and
       (9) include other information as required by the Secretary.
       In general, permits block grant payments to be expended 
     only in the fiscal year in which they are distributed to a 
     State. States may reserve up to 5% of a fiscal year's grant 
     to provide assistance in subsequent years, but reserved funds 
     may not total more than 20% of the total grant received for a 
     fiscal year.
       Requires States to keep records concerning block grant 
     program operations and make them available to the Secretary 
     and the Comptroller General.
       If the Secretary finds there is substantial failure by a 
     State to comply, requires the Secretary to (1) suspend all or 
     part of a grant payment until the State is determined in 
     substantial compliance, (2) withhold all/part of a grant 
     payment until the Secretary determines that there is no 
     longer a failure to comply, or (3) terminate the State's 
     authority to operate a nutrition assistance block grant 
     program.
       Requires States to provide for biennial audits of block 
     grant expenditures, provide the Secretary with the audit, and 
     make it available for public inspection.
       Requires an annual ``activities report'' comparing actual 
     spending for nutrition assistance in each fiscal year with 
     the spending predicted in the State plan; the report must be 
     made available for public inspection.
       Requires that whoever knowingly and willfully embezzles, 
     misapplies, steals, or obtains by fraud, false statement, or 
     forgery any funds or property provided or financed under a 
     nutrition assistance block grant be fined not more than 
     $10,000, imprisoned for not more than 5 years, or both.
       Requires that the State plan provide that there will be no 
     discrimination on the basis of race, sex, religion, national 
     origin, or political beliefs.
       Requires that all assistance provided under the block grant 
     be limited to the purchase of food. [Note: Because the State 
     would have fully implemented an electronic benefit transfer 
     system, benefits would be provided through these systems.]
     Senate amendment
       [Note: Sec. 343(a) of the Senate amendment adds a new 
     section 25 to the Food Stamp Act containing provisions for an 
     optional block grant.]
       Requires the Secretary to establish a program to make 
     grants to States, in lieu of the food stamp program, to 
     provide food assistance to needy individuals and families, 
     wage subsidies and payments in return for work for needy 
     individuals, funds to operate an employment and training 
     program for needy individuals, and funds for administrative 
     costs incurred in providing assistance.
       Grants funds to States electing a block grant--States would 
     receive (1) the greater of: the total fiscal year 1994 amount 
     they received as food stamp benefits; or the fiscal years 
     1992-1994 average they received as food stamp benefits and 
     (2) the greater of: the fiscal year 1994 Federal share of 
     administrative costs and employment/training program costs; 
     or the fiscal years 1992-1994 average they received as the 
     Federal share of administrative costs and employment/training 
     program costs. If total allotments for a fiscal year would 
     exceed the amount of funds made available to provide them, 
     the Secretary is required to reduce allotments on a pro rata 
     basis to the extent necessary. Grant payments would be made 
     by issuing 1 or more letters of credit, with necessary 
     adjustments for overpayments and underpayments.
       Requires annual submission of a State plan containing 
     information as required by the Secretary. The plan:
       (1) must have an assurance that the State will comply with 
     block grant requirements;
       (2) must identify a ``lead agency'' responsible for 
     administration, development of the plan, and coordination 
     with other programs;
       (3) must provide that the State will use grant funds as 
     follows:
       (a) to give food assistance to needy persons (other than 
     certain residents of institutions);
       (b) at State option, to provide wage subsidies and workfare 
     for needy persons;
       (c) to administer an employment and training program for 
     needy persons (and provide reimbursement for support 
     services); and
       (d) to pay administrative costs incurred in providing 
     assistance;
       (4) must describe how the program will serve specific 
     groups of persons (and how that treatment will differ from 
     the regular food stamp program) including the elderly, 
     migrants or seasonal farmworkers, the homeless, those under 
     the supervision of institutions, those with earnings, and 
     Indians;
       (5) must provide that benefits be available statewide;
       (6) must provide that applicants and recipients are 
     provided with notice and fair hearing rights;
       (7) may coordinate block grant assistance with aid under 
     the family assistance block grant;
       (8) may reduce food assistance or otherwise penalize 
     persons or families penalized for violating family assistance 
     block grant rules;
       (9) must assess the food and nutrition needs of needy 
     persons in the State;
       (10) must describe the income and resource eligibility 
     limits established under the block grant;
       (11) must establish a system to ensure that no persons 
     receive block grant benefits in more than 1 jurisdiction;
       (12) must provide for safeguarding and restricting the use 
     and disclosure of information about recipients; and
       (13) must contain other information as required by the 
     Secretary.
       Same as the House bill, except that States may reserve up 
     to 10% a year and reserve funds may not total more than 30% 
     of the total grant received.
       Requires the Secretary to review and monitor State 
     compliance with block grant rules and State plans. If the 
     Secretary (after notice and opportunity for a hearing) finds 
     that there has been a failure to substantially comply with 
     the State's plan or the provisions of the block grant, the 
     Secretary must notify the State and no further payments would 
     be made until the Secretary is satisfied that there is no 
     longer a failure to comply or that noncompliance will be 
     promptly corrected.
       Allows the Secretary (in cases of noncompliance) to impose 
     other appropriate sanctions on States in addition to, or in 
     lieu of, withholding block grant payments; these sanctions 
     may include recoupment of money improperly spent and 
     disqualification from receipt of a block grant. The Secretary 
     also is required to establish procedures for (1) receiving, 
     processing, and determining the validity of complaints about 
     States' failure to comply with block grant obligations and 
     (2) imposing sanctions. In addition, the Secretary is 
     permitted to withhold not more than 5% of a State's annual 
     allotment if the State does not use an ``income and 
     eligibility verification system''' established under Sec. 
     1137 of the Social Security Act.
       Requires States to arrange for annual independent audits of 
     block grant expenditures. Each annual audit must include an 
     audit of payment accuracy based on a statistically valid 
     sample and be submitted to the State legislature and the 
     Secretary. States must repay any amounts the audit determines 
     have not been expended in accordance with the State plan, or 
     the Secretary can offset amounts against any other amount 
     paid the State under the block grant.
       Provides that a State that elects a food assistance block 
     grant option may subsequently reverse that choice only once.
     
[[Page H15479]]

       Finds that the Senate has adopted a resolution that 
     Congress should not enact/adopt any legislation that will 
     increase the number of hungry children, that it is not its 
     intent to cause more children to be hungry, that the food 
     stamp program serves to prevent child hunger, and that a 
     State's election for a food assistance block grant should not 
     serve to increase the number hungry children in the State.
       Provides that a State's election for a food assistance 
     block grant be permanently revoked 180 days after the 
     Secretary of Health and Human Services has made 2 successive 
     findings (over a 6-year period) that the ``hunger rate'' 
     among children is significantly higher in a food assistance 
     block grant State than it would have been if the State had 
     not made the choice.
       Specifies procedures for a finding that a State's child 
     hunger rate has risen significantly. Every 3 years, the 
     Secretary must develop data and report with respect to any 
     significant increase in child hunger in States that have 
     elected a food assistance block grant. The Secretary must 
     provide the report to states that have elected a block grant 
     and must provide States with a higher child hunger rate with 
     an opportunity to respond. If the State's response does not 
     result in a reversal of the Secretary's determination that 
     the child hunger rate is significantly higher than it would 
     have been without the State's block grant election, the 
     Secretary must publish a determination that the State's block 
     grant choice is revoked.
       Requires States to designate a lead administrative agency. 
     The agency must administer (either directly or through other 
     agencies) the food assistance block grant aid, develop the 
     State plan, hold at least 1 hearing for public comment on the 
     plan, and coordinate food assistance block grant aid with 
     other government assistance. In developing the State plan, 
     the lead agency must consult with local governments and 
     private sector organizations so that services are provided in 
     a manner appropriate to local populations.
       Provides that nothing in the new food assistance block 
     grant section of the Food Stamp Act entitles anyone to 
     assistance or limits the right of States to impose additional 
     limits or conditions.
       Requires that no funds under the food assistance block 
     grant be spent for the purchase or improvement of land, or 
     for the purchase, construction, or permanent improvement of 
     any building/facility.
       Requires that no alien otherwise ineligible to participate 
     in the regular food stamp program be eligible to participate 
     in a food assistance block grant program, and that the income 
     of the sponsor of an alien be counted as in the regular food 
     stamp program.
       Requires that (1) no person be eligible to receive food 
     assistance block grant benefits if they do not meet regular 
     food stamp program work requirements and (2) that each State 
     operating a food assistance block grant implement an 
     employment and training program under regular food stamp 
     program rules.
       Bars the Secretary from providing assistance for any 
     program, project, or activity under a food assistance block 
     grant if any person with operational responsibilities 
     discriminates because of race, religion, color, national 
     origin, sex, or disability. Also provides for enforcement 
     through title VI of the Civil Rights Act.
       Requires that, in each fiscal year, at least 80% of Federal 
     funds expended under a State's block grant be for good 
     assistance and not more than 6% be for administrative 
     expenses. A State could provide food assistance to meet the 
     80% requirement in any manner it determines appropriate (such 
     as electronic benefit transfers, coupons, or direct provision 
     of commodities), but ``food assistance'' would be limited to 
     assistance that may only be used to obtain food (as defined 
     in the Food Stamp Act).
       Provides that the Secretary may conduct research on the 
     effects and costs of a State food assistance block grant 
     program.
     Conference agreement
       The Conference agreement follows the House bill with and 
     amendment. States that meet one of three conditions may elect 
     to receive an annual block grant to operate a food assistance 
     program for needy persons in lieu of the food stamp program. 
     Eligible States may opt for a block grant at any time, but, 
     if the State chooses to withdraw from the block grant or is 
     disqualified, it may not again opt for a block grant. 
     Eligible States include: (1) those that have fully 
     implemented a statewide electronic benefit transfer system, 
     (2) those for which the dollar value of erroneous benefit and 
     eligibility determinations (overpayments, payments to 
     ineligibles, and underpayments) in the food stamp program or 
     their food assistance block grant program is 6% of benefits 
     issued or less (a ``payment error rate'' of 6% or less), and 
     (3) those with a payment error rate higher than 6% that agree 
     to contribute, from non-Federal sources, a dollar amount 
     equal to the difference between their payment error rate and 
     a 6% rate to pay for benefits and administration of their 
     food assistance block grant program. A State's payment error 
     rate for block grant purposes is the most recent rate 
     available, as determined by the Secretary.
       States electing a block grant would be provided an annual 
     grant equal to: (1) the greater of the FY1994 amount they 
     received as food stamp benefits, or the 1992-1994 average 
     they received as food stamp benefits and (2) the greater of 
     the FY 1994 Federal share of administrative costs, or the 
     1992-1994 average they received as the Federal share of 
     administrative costs. However, grants to States with payment 
     error rates above 6% would be reduced by the amount they are 
     required to contribute (i.e., the dollar amount equal to the 
     difference between their payment error rate and a 6% rate). 
     In general, block grant payments must be expended in the 
     fiscal year for which they were distributed; but States may 
     reserve up to 10% a year, up to a total of 30% of the block 
     grant. If total allotments for a fiscal year would exceed the 
     amount of funds made available to provide them, the Secretary 
     is required to reduce allotments or a pro rata basis to the 
     extent necessary. Grant payments would be made by issuing 
     letters of credit.
       Block grant funding may only be used for food assistance 
     and administrative costs related to its provision, and, in 
     each fiscal year, not more than 6% of total funds expended 
     (including State funds required to be spent) may be used for 
     administrative costs.
       Each participating block grant State is required to 
     maintain a food stamp quality control program to measure 
     erroneous benefit and eligibility determinations, and block 
     grant States would continue to be subject to the food stamp 
     program's quality control system (including eligibility for 
     incentive payments and imposition of fiscal sanction for very 
     high payment error rates). Each participating State is 
     required to implement an employment and training program 
     under Food Stamp Act terms and conditions and is eligible to 
     receive Federal funding for employment and training 
     activities (in addition to the food stamp block grant 
     amount).
       In order to receive a block grant, a State must annually 
     submit a State plan for approval by the Secretary. The State 
     plan must: (1) identify a lead administering agency, (2) 
     describe how and to what extent the State's program serves 
     specific groups (e.g., the elderly, migrant and seasonal 
     farmworkers, the homeless, those with earnings, Indian) and 
     how the treatment differs from their treatment under the food 
     stamp program, (3) provide that benefits are available 
     statewide, (4) provide for notice and an opportunity for a 
     hearing to those adversely affected, (5) assess the food and 
     nutrition needs of needy persons in the State, (6) describe 
     the State's eligibility standards for assistance under the 
     block grant program, (7) establish a system for exchanging 
     information with other States to verify recipients' identity 
     and the possible receipt of benefits in another State, (8) 
     provide for safeguarding and restricting the use and 
     disclosure of information about recipients, and (9) other 
     information required by the Secretary.
       Eligibility for assistance under the block grant is 
     determined by the State, and there is not individual 
     entitlement to assistance. However, certain Federal rules 
     apply: (1) aliens who would not be eligible under the food 
     stamp program are not eligible for block grant aid; (2) 
     persons and households who would be ineligible under the food 
     stamp program's work rules are not eligible for block grant 
     aid; (3) disqualification of fleeing felons; and (4) 
     disqualification for child support arrears.
       If the Secretary finds that here has been a failure to 
     comply with provisions of the block grant or the State's 
     approved plan or finds that, in the operation of any program 
     or activity for which assistance is provided, there is a 
     State failure to comply substantially with block grant 
     provisions--the Secretary must withhold funding, as 
     appropriate, until satisfied there is no longer a failure to 
     comply or that the noncompliance will be promptly corrected. 
     In addition, the Secretary may impose other appropriate 
     penalties, including recoupment of improperly spent money and 
     disqualification from the block grant. States must be 
     provided notice and an opportunity for a hearing in this 
     process.
       The Secretary is authorized to conduct research on the 
     effects and costs of a State food assistance block grant.


 57. specific period for prohibiting participation of stores based on 
                       lack of business integrity

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Authorizes the Secretary to issue regulations establishing 
     specific time periods during which retailers/wholesalers that 
     have been denied approval or had approval withdrawn on the 
     basis of ``business integrity and reputation'' may not submit 
     a new application for approval. The periods established would 
     be required to reflect the severity of the business integrity 
     infractions on which the denial/withdrawal was based.
     Conference agreement
       See item 20 above.


      58. information for verifying eligibility for authorization

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Permits the Secretary to require that retailers and 
     wholesalers seeking approval submit relevant income and sales 
     tax filing documents. Permits regulations requiring retailers 
     and wholesalers to provide written 

[[Page H15480]]
     authorization for the Secretary to verify all relevant tax filings and 
     to obtain corroborating documentation from other sources in 
     order to verify the accuracy of information provided by 
     retailers and wholesalers.
     Conference agreement
       The Conference agreement follows the Senate amendment.


            59. bases for suspensions and disqualifications

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires criteria for finding violations by retailers and 
     wholesalers (and their suspension or disqualification) on the 
     basis of evidence including on-site investigations, 
     inconsistent redemption data, or electronic benefit transfer 
     system transaction reports.
     Conference agreement
       The Conference agreement follows the House bill. The 
     Conferees note that the Secretary currently has the authority 
     contained in the Senate amendment.


60. permanent debarment of retailers who intentionally submit falsified 
                              applications

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires regulations permanently disqualifying retailers 
     and wholesalers that knowingly submit an application or 
     approval that contains false information about a substantive 
     matter. A permanent disqualification or a knowingly false 
     application would be subject to administrative and judicial 
     review, but the disqualification would remain in effect 
     pending the review.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment permitting the Secretary to disqualify a store 
     or concern, including permanently, upon knowing submission of 
     false information on an application.


                      61. categorical eligibility

     Present law
       Households in which all members are recipients of AFDC are 
     categorically eligible for food stamps. [Sec. 5(a)]
       Child support payments received by a household and excluded 
     under the AFDC program may be disregarded for food stamps, at 
     State option and expense. [Sec. 5(d)(13)]
       Household members who are AFDC recipients are considered to 
     have met food stamp resource (asset) eligibility standards. 
     [Sec. 5(j)]
       Persons who are AFDC recipients are exempt from food stamp 
     rules barring eligibility to most postsecondary students. 
     [Sec. 6(e)]
       In general, food stamp eligibility is barred to those with 
     total (gross) household income above 130% of the Federal 
     income poverty guidelines. [Sec. 5(c)]
       Political subdivisions electing to operate workfare 
     programs for food stamp recipients may comply with food stamp 
     requirements by operating a workfare program under title IV 
     of the Social Security Act. [Sec. 20(a)]
       Households exempt from food stamp work rules because of 
     participation in an AFDC community work experience program 
     are subject to a limit on the number of hours of work--their 
     cash assistance plus food stamps, divided by the minimum wage 
     (but no person can be required to work more than 120 hours a 
     month). [Sec. 20(a)]
     House bill
       No provision. [Note: TANF households would presumably be 
     categorically eligible for food stamps under existing 
     provisions of law.]
       No provision. [Note: TANF recipients would presumably be 
     considered to have met food stamp resource standards under 
     existing provisions of law.]
       No provision. [Note: TANF recipients would presumably not 
     be exempt from food stamp postsecondary student rules under 
     existing provisions of law.]
     Senate amendment
       Provides that households in which all members are 
     recipients of benefits under a State's family assistance 
     block grant program be categorically eligible for food 
     stamps, if the Secretary determines that the program complies 
     with Secretarial standards that ensure that State program 
     standards are comparable to or more restrictive than those in 
     effect June 1, 1995.
       Deletes the existing provision for a State-option child 
     support disregard. [Note: A separate provision (Sec. 5(m) of 
     the Food Stamp Act) providing for State funding of the 
     disregard is not deleted.]
       Provides that persons receiving benefits under a State's 
     family assistance block grant program will be considered to 
     have met food stamp resource eligibility standards, if the 
     Secretary determines that the program complies with 
     Secretarial standards that ensure that State program 
     standards are comparable to or more restrictive than those in 
     effect June 1, 1995.
       Provides that persons receiving benefits under a State's 
     family assistance block grant program are exempt from food 
     stamp rules barring eligibility to most postsecondary 
     students, if the Secretary determines that the program 
     complies with Secretarial standards that ensure that State 
     program standards are comparable to or more restrictive than 
     those in effect June 1, 1995.
       Provides that households may not receive food stamp 
     benefits as the result of eligibility under a State's family 
     assistance block grant program unless the Secretary 
     determines that households with income above 130% of the 
     poverty guidelines are not eligible for the State's program--
     notwithstanding any other provision of the Food Stamp Act.
       Deletes the existing provision allowing compliance with 
     food stamp workfare rules by operating a workfare program 
     under title IV of the Social Security Act.
       Deletes the existing rule placing limits on hours worked 
     for food stamp recipients in community work experience 
     programs.
       Makes various technical amendments to the Food Stamp Act 
     conforming its existing references to the AFDC program to 
     cite the new family assistance block grant program.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                 62. protection of battered individuals

     Present law
       No provision. [Note: Certain work rules contain a ``good 
     cause'' exemption.]
     House bill
       No provision.
     Senate amendment
       In the case of individuals who were battered or subjected 
     to extreme cruelty, permits states to exempt them from the 
     following provisions of food stamp law (or modify their 
     application) if their physical, mental, or emotional well-
     being would be endangered:
       (1) the requirement that the income and resources of a 
     sponsor of an alien be deemed to the sponsored alien;
       (2) the requirement that custodial parents cooperate with 
     child support agencies (as added by the senate amendment); 
     and
       (3) all work requirements (including the new work 
     requirement added by the Senate amendment).
     Conference agreement
       The Conference agreement follows the House bill. The 
     conferees note that the Food Stamp act already provides 
     protection to battered individuals in the application of 
     child support enforcement and work rules.


                     63. reconciliation provisions

                        A. Transitional Housing

     Present law
       Payments from regular welfare benefits made on behalf of 
     households in transitional housing are disregarded as income. 
     [(Sec. 5(k)]
     House bill
       No provision.
     Senate amendment
       Deletes disregard of transitional housing payments.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                           B. American Samoa

     Present law
       No provision. [Note: A food assistance program for American 
     Samoa is supported under provisions of law granting 
     Secretarial discretion to extend Agriculture Department 
     programs to American Samoa.]
     House bill
       No provision.
     Senate amendment
       Provides for funding of not more than $5.3 million a year 
     through FY2002 for a nutrition assistance program in America 
     Samoa.
     Conference agreement
       The Conference agreement follows the Senate amendment.

               C. Assistance for Community Food Projects

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Authorizes $2.5 million a year for community food project 
     grants to meet the food needs of low-income people, increase 
     the self-reliance of communities in providing for their own 
     food needs, and promote comprehensive responses to local 
     food, farm, and nutrition issues.
     Conference agreement
       The Conference agreement follows the Senate amendment, with 
     an amendment making the funding for community food projects 
     mandatory.

                         Commodity Distribution


                             1. Short Title

     Present law
       The Emergency Food Assistance Act (EFAA), the Hunger 
     Prevention Act of 1988, the Commodity Distribution Reform Act 
     and WIC Amendments, the Charitable Assistance and Food Bank 
     Act of 1987, the Food Security Act of 1985, the Agriculture 
     and Consumer Protection Act of 1973, and the Food, 
     Agriculture, Conservation, and Trade Act of 1990.
     House bill
       Combines several existing commodity donation programs and 
     authorities under one 

[[Page H15481]]
     title, the Commodity Distribution Act of 1995.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill with an 
     amendment striking the House provision and replacing it with 
     a provision combining the emergency food assistance program 
     (TEFAP) with the soup kitchen/food bank program into one 
     program to be known as the TEFAP. The revised TEFAP is 
     reauthorized through 2002, and the Secretary is required to 
     purchase $300 million of commodities each year through 2002 
     for distribution through the TEFAP. The requirement to 
     purchase $300 million of commodities is included in the Food 
     Stamp Act authorization for appropriations.


                     2. Availability of Commodities

     Present law
       Requires the Secretary to purchase a variety of nutritious 
     and useful commodities using the resources of the CCC or 
     Section 32 to supplement commodities acquired from the excess 
     inventories of CCC for distribution to emergency feeding 
     organizations. [Sec. 214(c) of Emergency Food Assistance Act 
     (EFAA)]
       In addition to commodities donated from excess CCC 
     holdings, authorizes the Secretary to donate Section 32 
     commodities to eligible recipient agencies participating in 
     TEFAP. [Sec. 202(c)]
       Requires the Secretary to make available to eligible 
     recipient agencies CCC commodities in excess of those needed 
     to meet domestic and international obligations and market 
     development and food aid commitments and to carry out farm 
     price and income stabilization features of the AAA of 1938, 
     the AA of 1949, and the CCC Charter. [Sec. 202(a), EFAA]
     House bill
       For fiscal years 1996-2000, authorizes the Secretary of 
     Agriculture to purchase a variety of nutritious and useful 
     commodities to distribute to the States for purposes laid out 
     in the subtitle.
       Similar to current law, but also authorizes the use of 
     Section 32 funds not otherwise used or needed, to purchase, 
     process, and distribute commodities for purposes under the 
     new program.
       Leaves current general authority untouched; maintains EFAA 
     requirement but adds language stipulating that donations are 
     to be in addition to authorized Section 32 donations.
     Senate amendment
       Extends existing law purchasing authorities through FY 
     2002.
     Conference agreement
       See item 1 above.


                    3. Basis for Commodity Purchases

     Present law
       Requires that commodities made available under the EFAA 
     include a variety of items most useful to eligible recipient 
     agencies, including dairy products, wheat and wheat products, 
     rice, honey, and cornmeal. [Sec. 202(d), EFAA]
     House bill
       Requires the Secretary to determine the types, varieties, 
     and amounts of commodities purchased under this subtitle, and 
     to make such purchases, to the maximum extent practicable and 
     appropriate, on the basis of agricultural market conditions, 
     State and distribution agency preferences and needs, and the 
     preferences of recipients.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


           4. state and local supplementation of commodities

     Present law
       Requires the Secretary to establish procedures by which 
     State and local agencies, charitable institutions, or other 
     person may supplement the commodities distributed under TEFAP 
     for use by emergency feeding organizations with donations of 
     nutritious and wholesome commodities. [Sec. 203D(a), EFAA]
       Allows States and emergency feeding organizations to use 
     TEFAP funds, equipment, structures, vehicles, and all other 
     facilities and personnel involved in the storage, handling, 
     and distribution of TEFAP commodities to store, handle, or 
     distribute commodities donated to supplement TEFAP 
     commodities. [Sec. 203D(b), EFAA]
       Requires States and emergency feeding organizations to 
     continue to use volunteer workers and commodities and foods 
     donated by charitable and other organizations, to the maximum 
     extent practical, in operating TEFAP.
     House bill
       Similar to current law except that supplementation applies 
     to all programs eligible to receive commodities under the new 
     program, not just TEFAP.
       Similar to current law except it allows use of these 
     sources to all programs eligible to participate in the new 
     program (not just TEFAP), and explicitly identifies the funds 
     that States and eligible agencies may use to help with 
     supplemental commodities as those appropriated for 
     administrative costs under the new Section 519(b).
       Same as current law, except substitutes recipient agencies 
     for emergency feeding organizations to reflect expansion of 
     provisions to cover other commodity donation programs as well 
     as TEFAP.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                             5. State plan

     Present law
       Requires Secretary to expedite the distribution of 
     commodities to agencies designated by the Governor, or 
     directly distribute commodities to eligible recipient 
     agencies engaged in national commodity processing; allows 
     States to give priority to donations to existing food bank 
     networks serving low-income households. Requires States to 
     expeditiously distribute commodities to eligible recipient 
     agencies, and to encourage distribution to rural areas. Also 
     requires States to distribute commodities only to agencies 
     that serve needy persons and to set their own need criteria, 
     with the approval of the Secretary. [Sec. 203B (a) and (c) of 
     EFAA]
     House bill
       Requires that States seeking commodities under this program 
     submit a plan of operation and administration every four 
     years for approval by the Secretary and allows amendment of 
     the plan at any time.
       Requires that, at a minimum, the State receiving 
     commodities include in its plan:
       designation of the State agency responsible for 
     distributing commodities;
       the plan of operation and administration to expeditiously 
     distribute commodities in amounts requested by eligible 
     recipient agencies;
       the standards of eligibility for recipient agencies; and
       the individual or household eligibility standards for 
     commodity recipients, which shall require that they be needy, 
     and residing in the geographic location served by the 
     recipient agency.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill.


                           6. advisory board

     Present law
       No provision.
     House bill
       Requires the Secretary to encourage States to establish 
     advisory boards consisting of representatives of all 
     interested entities, public and private, in the distribution 
     of commodities.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill.


                  7. Cooperative Agreements/Transfers

     Present law
       Permits States receiving TEFAP commodities to enter into 
     cooperative agreements with agencies of other States to 
     jointly provide commodities serving eligible recipients from 
     each State in a single area, or to transfer commodities [Sec. 
     203B(d)]
     House bill
       Similar to current law, except adds language specifying 
     that the State may advise the Secretary of such agreements 
     and transfers. Note: Because the new commodity distribution 
     program covers more than TEFAP agencies, this represents a 
     new provision for other recipient agencies now receiving 
     commodities (e.g. CSFP, charitable institutions).
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                 8. Allocation of Commodities to States

     Present law
       Requires Secretary to allocate commodities purchased for 
     TEFAP to States in the following proportions:
       60% of the value of commodities available based on each 
     State's proportion of the national total of persons with 
     incomes below the poverty line; and
       40% based on each State's proportion of the national total 
     of the average monthly number of unemployed persons.
     House bill
       Similar to current law as relates to allocation of TEFAP 
     commodities. CSFP commodities are exempted from the 
     allocation method, however, other recipient agencies 
     currently receiving commodities under authority other than 
     the EFAA (e.g. charitable institutions) are covered by the 
     allocation formula.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                            9. Notification

     Present law
       Requires the Secretary to notify each State of the amount 
     of commodities it is allotted to receive. Requires each State 
     to notify the Secretary promptly if it will not accept 
     commodities available to it, and requires the Secretary to 
     reallocate and distribute such commodities as he deems 
     appropriate and equitable. Further requires the Secretary to 
     establish procedures to permit 

[[Page H15482]]
     State to decline portions of commodity allocations during each fiscal 
     year and to reallocate and distribute such commodities, as 
     deemed appropriate and equitable. [Sec. 214(g), EFAA]
     House bill
       Same as current law, except applies to all eligible 
     agencies receiving commodities, not just TEFAP agencies.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                             10. Disasters

     Present law
       Permits the Secretary to request that States consider 
     assisting other States where substantial number of persons 
     have been affected by drought, flood, hurricane or other 
     natural disasters by allowing the Secretary to reallocate 
     commodities to those States affected by such disasters. [Sec. 
     214(g), EFAA]
     House bill
       Same as current law.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                   11. national commodity processing

     Present law
       Requires through FY1995 that the Secretary encourage 
     agreements with private companies for reprocessing into end-
     use products those commodities donated at no charge to 
     nutrition programs. [Sec. 1114(a)(2)(A) of Agriculture of 
     Food Act of 1981]
     House bill
       No provision.
     Senate amendment
       Extends national commodity processing provision through 
     FY2002.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                        12. purchases and timing

     Present law
       Requires that in each fiscal year, the Secretary purchase 
     commodities at times and under conditions determined 
     appropriate; deliver such commodities at reasonable intervals 
     to States (but no later than the end of the fiscal year), 
     based on the allocation formula, and entitles each State to 
     the additional commodities purchased for TEFAP in amounts 
     based on the allocation formula. [Sec. 214(h), EFAA]
     House bill
       Similar to current law except for reference to CSFP, 
     deletion of language relating to ``additional'' commodities, 
     and requirement that commodities be delivered by December 31 
     of the following fiscal year.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


       13. priority system for state distribution of commodities

                   A. Emergency Feeding Organizations

     Present law
       Requires States to give priority for commodities to 
     emergency feeding organizations if sufficient commodities are 
     not available to meet requests of all eligible agencies, and 
     encourages States to distribute commodities to rural areas. 
     [Sec. 203B(b), EFAA]
     House bill
       Requires that in distributing commodities allocated under 
     this section for other than CSFP, the State agency offer its 
     full allocation of commodities to emergency feeding 
     organizations.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.

                       B. Charitable Institutions

     Present law
       No provision.
     House bill
       Permits States agencies to distribute commodities that are 
     not able to be used by emergency feeding organizations to 
     charitable institutions (excluding penal institutions) that 
     do not receive commodities as emergency feeding 
     organizations.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.

                       C. Other Eligible Agencies

     Present law
       No provision.
     House bill
       Permits the State agency to distribute commodities that are 
     not able to be used by emergency feeding organizations or 
     other charitable institutions to other eligible recipient 
     agencies not receiving commodities under the previous 
     distributions.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                      14. initial processing costs

     Present law
       Permits the Secretary to use CCC funds to pay the cost of 
     initial processing and packaging of commodities distributed 
     under this Act into forms and quantities the Secretary 
     determines are suitable for use by individual households or 
     institutional use. Permits payment in the form of commodities 
     equal in value to the cost, and requires the Secretary to 
     ensure that such payments in kind do not displace commercial 
     sales. [Sec. 203A, EFAA]
     House bill
       Similar to present law, except substitutes term ``eligible 
     recipient agencies'' for ``institutional use.''
     Senate amendment
       No provision.
     Conference agreement
       See item 1 above.


                    15. assurances; anticipated use

     Present law
       Requires the Secretary to take precautions to assure that 
     eligible recipient agencies and persons receiving commodities 
     do not diminish their normal expenditures for food because of 
     receipt of commodities, and to ensure that commodities made 
     available under the Act do not displace commercial sales. 
     Prohibits Secretary from donating commodities in a quantity 
     or manner that will substitute for agricultural produce that 
     otherwise would be purchased in the market. Requires 
     Secretary to submit a report to the Congress each year on 
     whether and to what extent displacement or substitution is 
     occurring. [Sec. 203C(a)]
     House bill
       Similar to current law but does not refer to individual 
     displacement or substitutions or prohibit donation in a 
     quantity or manner that might interfere with market sales. 
     Also sets December 1997, and at least every two years 
     thereafter as the dates for displacement reports.
     Senate amendment
       No provision.
     Conference agreement
       See item 1 above.


                               16. waste

     Present law
       Requires that the Secretary purchase and distribute 
     commodities in quantities that can be consumed without waste, 
     and prohibits eligible recipient agencies receiving 
     commodities under this Act from receiving commodities in 
     excess of anticipated use (based on inventory records and 
     controls), or in excess of their ability to accept and store. 
     [Sec. 203C(b)]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                  17. Authorization of Appropriations

                         A. Commodity Purchases

     Present law
       Authorizes $175 million for FY 1991, $190 million for FY 
     1992, and $220 million for each of FY 1993-1995 to purchase, 
     process and distribute additional commodities to TEFAP 
     agencies. [Sec. 214(e)]
     House bill
       Authorizes $260 million annually for each of fiscal years 
     1996 through 2000 to purchase, process, and distribute 
     commodities to States for distribution to eligible recipient 
     agencies, which include charitable institutions and CSFP 
     agencies, as well as TEFAP agencies.
     Senate amendment
       Extends funding authority for commodity purchases at $220 
     million annually through FY 2002.
     Conference agreement
       See Item #1 above.

                       B. Administrative Funding

     Present law
       Authorizes $50 million for FY 1991-95 for the Secretary to 
     make available to States for State and local payments of 
     costs associated with the distribution of commodities by 
     eligible recipient agencies. Requires Secretary to allocate 
     funds to States on advance basis in the same proportion as 
     the proportion each State receives of allocated commodities, 
     and requires the Secretary to reallocate funds not able to be 
     used by a State to other States in an appropriate and 
     equitable manner. Permits States to use funds for costs 
     associated with the distribution of additional commodities 
     purchased for the program and for soup kitchens and food 
     banks. [See 204(a)(1)]
     House bill
       Authorizes $40 million annually for each of fiscal years 
     1996 through 2000 for payments to States and local agencies 
     (except for the CSFP) for the costs associated with 
     transporting storing, and handling commodities other than 
     those distributed to CSFP agencies. Same as current law with 
     respect to allocations and reallocations, and advanced 
     funding. No specific reference to soup kitchens and food 
     banks, which are included as eligible recipient agencies.
     Senate amendment
       Extends authority for administrative funding at $50 million 
     annually through FY 2002.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment providing that administrative funds may be used 

[[Page H15483]]
     for processing, transporting, or distributing commodities other than 
     TEFAP commodities.


                   18. Local Administrative Payments

     Present law
       Requires each State to make available not less than 40% of 
     the funds it receives for administrative costs in each fiscal 
     year to pay for, or provide advance payments to eligible 
     recipient agencies, for allowable expenses incurred by such 
     agencies in distributing commodities to needy persons. 
     Defines ``allowable expenses'' to include the costs of 
     transporting, storing, handling, repackaging and distributing 
     commodities after receipt by the eligible recipient agency; 
     costs associated with eligibility, verification, and 
     documentation of eligibility; costs of providing information 
     to commodity recipients on appropriate storage and 
     preparation of commodities; and costs of recordkeeping, 
     auditing, and other required administrative procedures. [Sec. 
     204(a)(2), EFAA]
     House bill
       Same as current law except also applies to non-TEFAP 
     agencies.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                   19. state coverage of local costs

     Present law
       Requires that amounts of funding that States use to cover 
     the allowable expenses of eligible recipient agencies be 
     counted toward the amount a State must make available from 
     administrative funding provided under this Act for eligible 
     recipient agencies. [Sec. 204(a)(2), EFAA]
     House bill
       Same as present law except that it references the CSFP, 
     which is excluded from this rule.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                         20. financial reports

     Present law
       Requires States receiving funds to submit financial reports 
     on a regular basis to the Secretary on the use of such funds 
     and prohibits any such funds from being used by States for 
     costs other than those used to the distribution of 
     commodities by eligible recipient agencies. [Sec. 204(a)(3), 
     EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                     21. non-federal matching funds

     Present law
       Requires that each State receiving administrative funds 
     under this subsection provide cash or in-kind contributions 
     from non-Federal sources in an amount equal to the amount of 
     Federal administrative funds it receives that are not 
     distributed to eligible recipient agencies or used to cover 
     the expenses of such agencies. Permits States to receive 
     administrative funding prior to satisfying the matching 
     requirement, based on their estimated contribution, and 
     requires the Secretary to periodically reconcile estimated 
     and actual contributions to correct for overpayments and 
     underpayments. [Sec. 204(a)(4), EFAA]
     House bill
       Same as present law, except excludes administrative funds 
     distributed for the CSFP from the non-Federal matching 
     requirements and rules.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                          22. federal charges

     Present law
       Prohibits any charge against the appropriations authorized 
     by this section for the value of commodities donated for the 
     purposes of this Act, or for the funds used by the CCC for 
     the costs of initial processing, packaging, and delivery of 
     program commodities to the States. [Sec. 204(b), EFAA]
     House bill
       Similar to present law except it applies the prohibition to 
     bonus donations of Section 32 and CCC commodities, as well as 
     those bought for the program.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


                           23. State Charges

     Present law
       Prohibits States from charging for commodities made 
     available to eligible recipient agencies and from passing 
     along the cost of matching requirements. [Sec. 204(a)(5), 
     EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item #1 above.


        24. Mandatory Funding for Nutrition Program Commodities

     Present law
       For each of fiscal years 1994-1996, requires $230,000 of 
     Treasury funds not otherwise appropriated to be provided to 
     the Secretary to purchase, process and distribute commodities 
     that are low in saturated fats, sodium, and sugar, and a good 
     source of calcium, protein, and other nutrients to 2 States, 
     selected by the Secretary, to carry out a three year project 
     to improve the health of low-income participants of TEFAP. 
     Requires that commodities be easy for low-income families to 
     store, use, and handle, and include low-sodium peanut butter, 
     low-fat and low sodium cheese and canned meats, fruits, and 
     vegetables. Also requires that $5000 of the amount provided 
     be given to each of the participating States to help with 
     administrative costs. [Sec. 13962 of OBRA, 1993]
     House bill
       No provision.
      Senate amendment
        Extends this requirement through FY2002.
     Conference agreement
       The Conference agreement follows the House bill.


     25. Commodity Supplemental Food Program (CSFP)--Authorization

     Present law
        For each of fiscal years 1991-1995, authorizes the 
     Secretary to purchase and distribute sufficient agricultural 
     commodities with appropriated funds to maintain the 
     traditional level of assistance for food programs including 
     the supplemental food programs for women, infants, children, 
     and the elderly. [Sec. 4(a), Agriculture and Consumer 
     Protection Act of 1973]
     House bill
       Requires that $94.5 million of the amount appropriated for 
     programs under this subtitle for the period FY 1996-2000 be 
     used each fiscal year to purchase and distribute commodities 
     to supplemental feeding programs for women, infants, and 
     children, or elderly individuals participating in the 
     commodity supplemental food program.
     Senate amendment
       Extends present law authority through FY2002.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                    26. CSFP Administrative Funding

     Present law
       Requires the Secretary to provide administrative funds to 
     State and local agencies administering the CSFP for each of 
     fiscal years 1991-1995. Authorizes appropriations in an 
     amount equal to not more than 20% of the value of commodities 
     purchased for the program. [Sec. 5(a) Agriculture and 
     Consumer Protection Act of 1973]
       Defines administrative costs to include expenses for 
     information and referral, operation, monitoring, nutrition 
     education, start-up costs, and general administration 
     (including staff, warehouse, and transportation personnel, 
     insurance and administration of the State or local office. 
     [Sec. 5(c), Agriculture and Consumer Protection Act of 1973]
     House bill
       Requires that not more than 20% of the funds made available 
     for commodity purchase and distribution for the CSFP be made 
     available to States for the State and local payments of costs 
     associated with the distribution of commodities by CSFP 
     agencies.
     Senate amendment
       Extends present law authority through FY2002.
     Conference agreement
       The Conference agreement follows the Senate amendment.


           27. CSFP--Commodity Purchases and Advance Warning

     Present law
       Permits the Secretary to determine the types, varieties, 
     and amounts of commodities purchased for the CSFP, but 
     requires the Secretary to report to the House and Senate 
     Agriculture Committees plans for significant changes from 
     commodities available or planned at the beginning of the 
     fiscal year before implementing such changes.
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                     28. Cheese and Nonfat Dry Milk

     Present law
       In each of fiscal years 1991-1995, the CCC is required to 
     provide at least 9 million pounds of cheese and 4 million 
     pounds of nonfat dry milk (to the extent inventory levels 
     permit), for the Secretary to use, before the end of each 
     fiscal year, to carry out the CSFP. [Sec. 5(d)(2), 
     Agriculture and Consumer Protection Act of 1973]
     House bill
       Implements this present law provision for fiscal years 
     1996-2000, otherwise it is exactly the same as present law.
     Senate amendment
       Extends present law provision through FY2002.
     Conference agreement
       The Conference agreement follows the Senate amendment.
     
[[Page H15484]]



                       29. Additional CSFP Sites

     Present law
       Requires the Secretary to approve additional sites each 
     fiscal year, including sites serving the elderly, in areas 
     where the program does not operate to the full extent that 
     applications can be approved within the funding available, 
     and without reducing participation levels (including the 
     elderly) in areas where the program is in effect. [Sec. 5(f), 
     Agriculture and Consumer Protection Act of 1973]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                       30. Additional Recipients

     Present law
       Permits a local agency to serve low-income elderly persons, 
     with the approval of the Secretary, if it determines that the 
     amount of assistance it receives is more than is needed to 
     provide assistance to women, infants and children. [Sec. 
     5(g), Agriculture and Consumer Protection Act of 1973]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                     31. commodity price increases

     Present law
       Requires the Secretary to determine the decline in the 
     number of persons able to be served by the CSFP if the price 
     of one or more commodities purchased for the program is 
     significantly higher than expected; to promptly notify State 
     agencies operating programs of the decline; and ensure that 
     State agencies notify local agencies of the decline. [Sec. 
     5(j)(1) and (2), Agriculture and Consumer Protection Act of 
     1973]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


       32. affect of csfp commodities on other recipient agencies

     Present law
       No provision.
     House bill
       Stipulates that commodities distributed to CSFP agencies 
     under this section not be considered when determining 
     commodity allocations to States for other eligible recipient 
     agencies receiving commodities under this Act, or in 
     following the priority for distribution of commodities to 
     such agencies.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                       33. commodities not income

     Present law
       Specifies that commodities distributed under this Act not 
     be considered income or resources for any purposes under 
     Federal, State, or local law. [Sec. 206, EFAA]
     House bill
       Similar to present law, but narrower. Specifies that 
     receipt of commodities cannot be considered in ``determining 
     eligibility for any Federal, State, or local ``means-tested 
     program,'' instead of the broader ``any purposes'' outlined 
     in present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                    34. prohibition on state charges

     Present law
       Prohibits States from charging eligible recipient agencies 
     any amount that exceeds the difference between the State's 
     direct costs of storing and transporting commodities to 
     recipient agencies and the amount of funds provided for this 
     purpose by the Secretary. [Sec. 208, EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                            35. Definitions

            A. Average Monthly Number of Unemployed Persons

     Present law
       The average monthly number of unemployed persons within a 
     State in the most recent fiscal year for which information is 
     available, as determined by the Bureau of Labor Statistics of 
     the Department of Labor. [Sec. 2143(b), EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the House bill with an 
     amendment providing that all definitions included in the 
     TEFAP and soup kitchen/food bank program will be included in 
     the revised TEFAP.

                           B. Elderly Persons

     Present law
       No provision.
     House bill
       Defines ``elderly persons'' to mean persons 60 years or 
     older.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

    C. Eligible Recipient Agencies; Emergency Feeding Organizations

     Present law
       Combines definition of ``eligible recipient agencies'' and 
     ``emergency feeding organizations, as follows: ``Eligible 
     recipient agency'' means public or non-profit organizations 
     that administer activities or projects providing nutrition 
     assistance to relieve situations of emergency and distress 
     through the provision of food to needy persons (including 
     those in charitable institutions, food banks, hunger centers, 
     soup kitchens, and similar non-profit recipient agencies 
     (hereinafter referred to as ``emergency feeding 
     organizations''); and school lunch, summer camps, and child 
     nutrition meal service, elderly feeding programs, CSFP, 
     charitable institutions for the needy, and disaster relief. 
     [Sec. 201A, EFAA]
     House bill
       Similar to present law, but separates into two separate 
     definitions, as follows: Defines ``eligible recipient 
     agency'' to mean a public or non-profit organization that 
     administers:
       An institution operating a CSFP;
       An emergency feeding organization (EFO);
       A charitable institution (including a hospital and a 
     retirement home, but excluding a penal institution) serving 
     need persons;
       A summer camp for children or a child nutrition food 
     service program;
       An elderly feeding program; or
       A disaster relief program.
       Defines ``emergency feeding organization'' to mean public 
     or private organizations that administer activities and 
     projects (including charitable institutions, food banks and 
     pantries, hunger relief centers, soup kitchens, or similar 
     non-profit eligible agencies) providing nutrition assistance 
     to relieve situations of emergency and distress by providing 
     food to needy persons, including low-income and unemployed 
     persons.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

                              D. Food Bank

     Present law
       The term ``food bank'' means a public and charitable 
     institution that maintains an established operation providing 
     food to food pantries, soup kitchens, hunger relief centers, 
     or other feeding centers that provide meals or food to feed 
     needy persons on a regular basis as an integral part of their 
     normal activity. [Sec. 110, Hunger Prevention Act of 1988]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

                             E. Food Pantry

     Present law
       Defines ``food pantry'' to mean a public or private 
     nonprofit organization distributing food (including other 
     than USDA food) to low-income and unemployed households to 
     relieve situations of emergency and distress. [Sec. 110, 
     Hunger Prevention Act of 1988]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

                            F. Needy Persons

     Present law
       No provision.
     House bill
       Defines ``needy persons'' to mean individuals who have low 
     incomes or are unemployed as determined by the State, as long 
     as this is not higher than 185% of the poverty line; 
     households certified as food stamp participants or 
     individuals participating in other Federally-supported means-
     tested programs.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

                            G. Poverty Line

     Present law
       The term ``poverty line'' is the same as the term used in 
     Section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2)). [Sec. 110, Hunger Prevention Act]
     House bill
       Same as present law.
     
[[Page H15485]]

     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.

                            H. Soup Kitchen

     Present law
       The term ``soup kitchen'' means a public and charitable 
     institution that, as an integral part of its normal 
     activities, maintains an established feeding operation for 
     needy homeless persons on a regular basis. [Sec. 110, Hunger 
     Prevention Act]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       See Item 35A above.


                            36. Regulations

     Present law
       Requires the Secretary to issue regulations within 30 days 
     to implement this subtitle; to minimize to the extent 
     practicable the regulatory, recordkeeping and paperwork 
     requirements imposed on eligible recipient agencies, to 
     publish in the Federal Register as early as feasible, but not 
     later than the beginning of each fiscal year, an estimate of 
     the types and quantitites of commodities anticipated to be 
     available; and to include in regulations provisions that set 
     standards relating to liability for commodity losses when 
     there is no evidence of negligence or fraud, and establish 
     conditions for payment to cover such losses, taking into 
     account the special needs and circumstances of the recipient 
     agencies. [Sec. 210, EFAA]
     House bill
       Similar to present law except provides 120 days for 
     Secretary to issue regulations and includes reference to 
     ``non-binding'' nature of Secretary's estimates of donations.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                     37. Finality of Determinations

     Present law
       Specifies that determinations made by the Secretary 
     concerning the types and quantities of commodities donated 
     under this subtitle, when in conformance with applicable 
     regulations, be final and conclusive and not reviewable by 
     any other officer or agency of the Government. [Sec. 211, 
     EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                 38. Prohibition on Sale of Commodities

     Present law
       Prohibits the sale or disposal of commodities in commercial 
     channels in any form, except as permitted under Section 517 
     for in-kind payment of initial processing costs by the CCC. 
     [Sec. 205(b), EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                        39. Settlement of Claims

     Present law
       Gives the Secretary or designee authority to determine the 
     amount of, settle and adjust any claim arising under this 
     subtitle, and waive any claim when the Secretary determines 
     it will serve the purposes of this Act. Specifies that 
     nothing in this Act diminishes the authority of the Attorney 
     General to conduct litigation on behalf of the United States. 
     [Sec. 215, EFAA]
     House bill
       Same as present law.
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment.


                      40. Repealers and Amendments

     Present law
       No provision.
     House bill
       Repeals the Emergency Food Assistance Act of 1983.
       In the Hunger Prevention Act of 1988, strikes Section 110 
     (soup kitchens and food banks); Subtitle C of Title II (Food 
     processing and distribution); and Section 502 (food bank 
     demonstration project).
       Stikes Section 4 of the Commodity Distribution Reform Act 
     of 1987 (Food bank demonstration).
       Strikes Section 3 of the Charitable Assistance and Food 
     Bank Act of 1987.
       Amends the Food Security Act of 1985 by striking Section 
     1571, and striking Section 4 of the Agriculture and Consumer 
     Protection Act (CSFP) and inserting Section 110 of the 
     Commodity Distribution Act of 1995.
       In the Agriculture and Consumer Protection Act of 1973: In 
     Section 4(a) strikes ``institutions (including hospitals and 
     facilities caring for needy infants and children) 
     supplemental feeding programs serving women, infants, and 
     children, and elderly, or both, wherever located, disaster 
     areas, summer camps for children'' and inserting ``disaster 
     areas;'' In subsection 4(c) strikes ``the Emergency Food 
     Assistance Act of 1983'' and inserts ``The Commodity 
     Distribution Act of 1995''; and strikes Section 5.
       In the Food Agriculture, Conservation, and Trade Act of 
     1990, strikes Section 1773(f).
     Senate amendment
       No provision.
     Conference agreement
       The Conference agreement follows the Senate amendment with 
     an amendment repealing section 110 (soup kitchens and food 
     banks), subtitle C of title III (food processing and 
     distribution), and section 502 (food bank demonstration 
     project) of the Hunger Prevention Act of 1988, and section 3 
     (food bank demonstration) of the Charitable Institution and 
     Food Bank Act of 1987.

                        Title XI. Miscellaneous


1. expenditure of federal funds in accordance with laws and procedures 
  applicable to expenditure of states funds (subtitle a--section 1101)

     Present law
       According to the National Conference of State Legislatures, 
     there currently are six States in which Federal funds go to 
     the Governor rather than the State legislature. Those States 
     are Arizona, Colorado, Connecticut, Delaware, New Mexico, and 
     Oklahoma.
     House bill
       No provision.
     Senate amendment
       Stipulates that funds from certain Federal block grants to 
     the States are to be expended in accordance with the laws and 
     procedures applicable to the expenditure of the State's own 
     resources, (i.e., appropriated through the State legislature 
     in all States). This provision applies to the following block 
     grants: temporary assistance to needy families block grant 
     under title I, the optional State food assistance block grant 
     under title III, and the child care block grant under title 
     VI of the Senate amendment. Thus, in the States in which the 
     Governor previously had control over Federal funds, the State 
     legislatures now would share control according to State laws 
     regarding State expenditures.
     Conference agreement
       The conference agreement follows the Senate amendment.


 2. elimination of housing assistance with respect to fugitive felons 
     and probation and parole violators (subtitle a--section 1102)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Ends eligibility for public housing and Section 8 housing 
     assistance of a person who is fleeing to avoid prosecution 
     after conviction for a crime, or attempt to commit a crime, 
     that is a felony where committed (or, in the case of New 
     Jersey, is a high misdemeanor), or who is violating a 
     condition of probation or parole. The amendment states that 
     the person's flight shall be cause for immediate termination 
     of their housing aid.
       Requires specified public housing agencies to furnish any 
     Federal, State, or local law enforcement officer, upon the 
     request of the officer, with the current address, social 
     security number, and photograph (if applicable) of any SSI 
     recipient, if the officer furnishes the public housing agency 
     with the person's name and notifies the agency that the 
     recipient is a fugitive felon (or in the case of New Jersey a 
     person fleeing because of a high misdemeanor) or a probation 
     or parole violator or that the person has information that is 
     necessary for the officer to conduct his official duties, and 
     the location or apprehension of the recipient is within the 
     officer's official duties.
     Conference agreement
       The conference agreement follows the Senate amendment.


3. sense of the senate regarding enterprise zones (subtitle a--section 
                                 1103)

     Present law
       No specific provision. However, as stated, the provisions 
     outlined in the Sense of the Senate language already can be 
     done under present law.
     House bill
       No provision.
     Senate amendment
       Outlines findings related to urban centers and empowerment 
     zones and includes sense of the Senate language that urges 
     the 104th Congress to pass an enterprise zone bill that 
     provides Federal tax incentives to increase the formation and 
     expansion of small businesses and to promote commercial 
     revitalization; allows localities to request waivers to 
     accomplish the objectives of the enterprise zones; encourages 
     resident management of public housing and home ownership of 
     public housing; and authorizes pilot projects in designated 
     enterprise zones to expand the educational opportunities for 
     elementary and secondary school children.
     Conference agreement
       The conference agreement follows the senate amendment.
     
[[Page H15486]]



  4. sense of the senate regarding the inability of the non-custodial 
         parent to pay child support (subtitle a--section 1104)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       It is the sense of the Senate that States should pursue 
     child support payments under all circumstances even if the 
     noncustodial parent is unemployed or his or her whereabouts 
     are unknown; and that States are encouraged to pursue pilot 
     programs in which the parent of a minor non-custodial parent 
     who refuses or is unable to pay child support contribute to 
     the child support owed.
     Conference agreement
       The conference agreement follows the Senate amendment.


          5. food stamp eligibility (subtitle a--section 1105)

     Present law
       For purposes of determining eligibility and benefits under 
     the Food Stamp program, the income--less a pro rata share--
     and financial resources of an ineligible alien are included 
     in the income and resources of the household of which the 
     alien is a member. [Sec. 6(f) of the Food Stamp Act]
     House bill
       No provision.
     Senate amendment
       Permits States to include all of an ineligible alien's 
     income and resource in the income and resources of the 
     household of which the alien is a member. (Note: This 
     provision applies only to those aliens made ineligible under 
     present food stamp law, not to those who might be made 
     ineligible for food stamps under new provisions in Senate 
     amendment.)
     Conference agreement
       The conference agreement follows the Senate amendment.


   6. sense of the senate on legislative accountability for unfunded 
                 mandates in welfare reform legislation

     Present law
       P.L. 104-4, the Unfunded Mandates Reform Act of 1995, 
     enacted March 22, 1995, responds to the concern of many State 
     and local officials regarding costs placed upon them by 
     ``unfunded mandates.'' The Act addresses this issue by 
     requiring the Congressional Budget Office (CBO) to estimate 
     the costs to State, local, and tribal governments and the 
     private sector of unfunded intergovernmental mandates that 
     exceed a specified amount and to make the information 
     available to the Congress before a final vote on a given 
     piece of legislation is taken.
     House bill
       No provision.
     Senate amendment
       Includes the ``purposes'' section of P.L. 104-4 as findings 
     and states that it is the Sense of the Senate that before the 
     Senate acts on the conference agreement on H.R. 4 (or any 
     other welfare reform legislation), CBO include in its 7-year 
     estimates the costs to States of meeting all work 
     requirements (and other requirements) in the conference 
     agreement, including those for single-parent families, two-
     parent families, and those who have received cash assistance 
     for 2 years; the resources available to the State to meet 
     these work requirements and what States are projected to 
     spend under current welfare law; and the amount of additional 
     revenue needed by the States to meet the work requirements. 
     In addition, the Senate would like CBO to estimate how many 
     States would pay a penalty rather than raise the additional 
     revenue needed to comply with the specified work 
     requirements.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


7. sense of the senate regarding competitive bidding for infant formula

     Present law
       Under the Special Supplemental Nutrition Program for Women, 
     Infants, and Children (WIC), States must carry out cost 
     containment measures in procuring infant formula (and, where 
     practicable, other foods). Cost containment must be by 
     competitive bidding or another method that yields equal or 
     greater savings. Any cost savings may be used by the State 
     for WIC program purposes. [Sec. 17(b) and (h) of the Child 
     Nutrition Act]
     House bill
       With respect to assistance provided to women, infants, and 
     young children under the Family Nutrition Block Grant, States 
     are required to establish and carry out a cost containment 
     system for procuring infant formula. States must use cost 
     containment savings for any of the activities supported under 
     the Family Nutrition Block Grant and must report on their 
     system and the estimated cost savings compared to the 
     previous year.
     Senate amendment
       Includes findings on the success of the WIC program in: 
     improving the health status of women, infants, and children, 
     saving Medicaid expenditures, and establishing the importance 
     of infant formula manufacture rebates in helping to fund the 
     WIC program. The amendment states that it is the sense of the 
     Senate that any legislation enacted by Congress must not 
     eliminate or in any way weaken present competitive bidding 
     requirements for the purchase of infant formula supported 
     with Federal funds.
     Cjonference agreement
       The conference agreement is to drop the provision on 
     competitive bidding for infant formula.


8. establishing national goals to prevent teenage pregnancies (subtitle 
                            a--section 1106)

                                A. Goals

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the Secretary of HHS to establish and implement by 
     January 1, 1997, a strategy for:
       (1) preventing an additional 2 percent of out-of-wedlock 
     teenage pregnancies a year; and
       (2) assuring that at least 25 percent of U.S. communities 
     have teenage pregnancy programs in place.
       HHS is required to report to Congress by June 30, 1998, on 
     progress made toward meeting these 2 goals.
     Conference agreement
       The conference agreement follows the Senate amendment, but 
     eliminates the reference to ``an additional 2 percent'' in 
     (1).

                         B. Prevention Programs

     Present law
       The Social Services block grant (SSBG) (sec. 2002 of SSA, 
     42 USC 1397a) entitles States to an allotment for services 
     not limited to, but including: child day care; protective 
     services for children and adults; services for children and 
     adults in foster care; home management services; adult day 
     care; transportation; family planning services; training and 
     related services; employment services; information, referral 
     and counseling; meal preparation and delivery; health support 
     services; and, combinations of services to meet the special 
     needs of children, the aged, the mentally retarded, the 
     blind, the emotionally disturbed, the physically handicapped, 
     alcoholics, and drug addicts. Also, Title XX of the Public 
     Health Service Act establishes the Adolescent Family Life 
     (AFL) program to encourage adolescents to delay sexual 
     activity and to provide services to alleviate the problems 
     surrounding adolescent parenthood. One-third of all funding 
     for AFL program services go to projects that provide 
     ``prevention services.'' The purpose of the prevention 
     component is to find effective means within the context of 
     the family of reaching adolescents, both male and female, 
     before they become sexually active to maximize the guidance 
     and support of parents and other family members in promoting 
     abstinence from adolescent premarital sexual relations. (The 
     FY 1995 appropriation for AFL was $6.7 million.)
     House bill
       No provision.
     Senate amendment
       Amends the Social Services block grant (SSBG) (sec. 2002 of 
     the Social Security Act) to require the Secretary to conduct 
     a study of the relative effectiveness of different State 
     programs to prevent out-of-wedlock and teenage pregnancies 
     and to require States conducting programs under this 
     provision to provide data required by the Secretary to 
     evaluate these programs.
     Conference agreement
       The conference agreement follows the House bill (no 
     provision).


  9. sense of the senate regarding enforcement of statutory rape laws 
                       (subtitle a--section 1107)

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Includes Sense of the Senate that States and local 
     jurisdictions should aggressively enforce statutory rape 
     laws.
     Conference agreement
       The conference agreement follows the Senate amendment.


    10. Sanctioning for Testing Positive for Controlled Substances 
                       (Subtitle A--Section 1108)

     Present law
       Eligibility and benefit status for most of the Federal 
     welfare programs are not affected by a recipient's use of 
     illegal drugs. Even under the SSI program, as long as a 
     recipient who is classified as a drug addict or alcoholic 
     participates in an approved treatment plan when so directed 
     and allows his or her treatment to be monitored, he or she is 
     in compliance with the SSI rules, and in most cases the SSI 
     benefit would continue without interruption.
     House bill
       No provision.
     Senate amendment
       Stipulates that States shall not be prohibited by the 
     Federal Government from sanctioning welfare recipients who 
     test positive for use of controlled substances.
     Conference agreement
       The conference agreement follows the Senate amendment.
     
[[Page H15487]]



          11. Abstinence Education (Subtitle A--Section 1109)

     Present law
       The Maternal and Child Health (MCH) block grants (title V 
     of the SSA, 42 U.S.C. 701) provides grants to States and 
     insular areas to fund a broad range of preventive health and 
     primary care activities to improve the health status of 
     mothers and children, with a special emphasis on those with 
     low income or with limited availability of health services. 
     Sec. 502 includes a set-aside program for projects of 
     national or regional significance. (The FY 1995 appropriation 
     for MCH was $684 million.) See also: Title XX of the Public 
     Health Service Act establishes the Adolescent Family Life 
     (AFL) program to encourage adolescents to delay sexual 
     activity and to provide services to alleviate the problems 
     surrounding adolescent parenthood. One-third of all funding 
     for AFL program services goes to projects that provide 
     ``prevention services.'' The purpose of the prevention 
     component is to find effective means within the context of 
     the family of reaching adolescents, both male and female, 
     before they become sexually active to maximize the guidance 
     and support of parents and other family members in promoting 
     abstinence from adolescent premarital sexual relations. (The 
     FY 1995 appropriation for AFL was $6.7 million.)
     House bill
       No provision.
     Senate amendment
       Amends the Maternal and Child Health (MCH) block grants 
     (title V of the SSA) to set aside $75 million to provide 
     abstinence education--defined as an educational or 
     motivational program that has abstaining from sexual activity 
     as its exclusive purpose--and to provide at the option of the 
     State mentoring, counseling and adult supervision to promote 
     abstinence with a focus on those groups most likely to bear 
     children out-of-wedlock. Also increases the authorization 
     level of MCH to $761 million.
     Conference agreement
       The conference agreement follows the Senate amendment.


    12. Provisions to Encourage Electronic Benefit Transfer Systems 
                       (Subtitle A--Section 1110)

     Present law
       In 1978, Congress passed the Electronic Fund Transfer Act 
     to provide a basic framework establishing the rights, 
     liabilities, and responsibilities of participants in 
     electronic fund transfer systems and required the Federal 
     Reserve Board to develop implementing regulations, which 
     generally are referred to as Regulation E.
     House bill
       The House bill exempts from Regulation E requirements any 
     electronic benefit transfer program (distributing needs-
     tested benefits) established under State or local law or 
     administered by a State or local government.
     Senate amendment
       See Sec. 320 in Senate amendment, which exempts from 
     Regulation E any food stamp electronic benefit transfers.
     Conference agreement
       The conference agreement follows the House bill.


       13. Social Services Block Grant (Subtitle A--Section 1111)

     Present law
       The Social Services Block Grant (Title XX) provides funds 
     to States in order to provide a wide variety of social 
     services, including:
       (1) Child care;
       (2) Family planning;
       (3) Protective services for children and adults;
       (4) Services for children and adults on foster care; and
       (5) Employment services.
       States have wide discretion over how they use Social 
     Services Block Grant funds. States set their own eligibility 
     requirements and are allowed to transfer up to 10 percent of 
     their allotment to certain Federal health block grants, and 
     for low-income home energy assistance (LIHEAP).
       States can also use their block grant funds for staff 
     training in the field of social services. This includes 
     training at workshops, conferences, seminars, and educational 
     institutions.
       Funding for the Social Services Block Grant is capped at 
     $2.8 billion a year. Funds are allocated among States 
     according to the State's share of its total population. No 
     State matching funds are required to receive Social services 
     Block Grant money.
     House bill
       No provision.
     Senate amendment
       Beginning in FY 1997, the Social Services Block Grant will 
     be reduced by 20 percent.
     Conference agreement
       The House recedes to the Senate amendment, with the 
     modification that the Social Services Block Grant will be 
     reduced by only 10 percent.
     Bill Archer,
     Bill Goodling,
     Pat Roberts,
     E. Clay Shaw, Jr.,
     James Talent,
     Jim Nussle,
     Tim Hutchinson,
     Jim McCrery,
     Lamar Smith,
     Nancy L. Johnson,
     Dave Camp,
     Gary A. Franks,
     As an additional conferee:
     Bill Emerson,
     As an additional conferee:
     Randy ``Duke'' Cunningham,
                                Managers on the Part of the House.

     William V. Roth, Jr.,
     Bob Dole,
     John H. Chafee,
     Charles Grassley,
     Orrin Hatch,
     From the Committee on Labor and Human Resources:
     Nancy Landon Kassebaum,
     Jim Jeffords,
     Dan Coats,
     Judd Gregg,
     From the Committee on Agriculture, Nutrition, and Forestry:
     Jesse Helms,
     Managers on the Part of the Senate.

                          ____________________