[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[Senate]
[Pages S8163-S8222]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

      THE PERSONAL RESPONSIBILITY, WORK OPPORTUNITY, AND MEDICAID 
                       RESTRUCTURING ACT OF 1996

                                 ______
                                 

                        LOTT AMENDMENT NO. 4894

  Mr. LOTT proposed an amendment to the bill (S. 1956) to provide for 
reconciliation pursuant to section 202(a) of the concurrent resolution 
on the budget for fiscal year 1997; as follows:

       On page 663, strike line 9, through page 1027, line 20.
                                 ______
                                 

               ABRAHAM (AND LIEBERMAN) AMENDMENT NO. 4895

  (Ordered to lie on the table.)
  Mr. ABRAHAM (for himself and Mr. Lieberman) submitted an amendment 
intended to be proposed by them to the bill, S. 1956, supra; as 
follows:

       At the appropriate place, insert:
              TITLE ____--ENVIRONMENTAL REMEDIATION COSTS

     SEC.   00. AMENDMENT OF 1986 CODE.

       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 Internal Revenue Code of 1986.
                         Subtitle A--In General

     SEC. ____01. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Part II of subchapter V of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 1395. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       ``(a) Treatment as Expense.--A taxpayer may elect to treat 
     any environmental remediation cost as an expense which is not 
     chargeable to capital account. Any cost so treated shall be 
     allowable as a deduction for the taxable year in which the 
     cost is paid or incurred.
       ``(b) Environmental Remediation Cost.--For purposes of this 
     section--
       ``(1) In general.--The term `environmental remediation 
     cost' means any cost which--
       ``(A) is chargeable to capital account,
       ``(B) is paid or incurred in connection with the abatement 
     or control of environmental contaminants at a site located 
     within an empowerment zone or enterprise community, and
       ``(C) is certified by the applicable Federal or State 
     authority as being required by, and in compliance with, 
     applicable Federal and State laws governing abatement and 
     control of environmental contaminants.
       ``(2) Exceptions.--Such term shall not include any amount 
     paid or incurred--
       ``(A) for equipment which is used in the environmental 
     remediation and which is of a character subject to an 
     allowance for depreciation or amortization, or
       ``(B) in connection with a site which is on the national 
     priorities list under section 105(a)(8)(B) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9605(a)(8)(B).
       ``(c) Special Rules.--For purposes of this section--
       ``(1) Limitation based on income from trade or business.--
     The amount allowed as a deduction under subsection (a) for 
     any taxable year shall not exceed the aggregate amount of 
     taxable income of the taxpayer for such taxable year which is 
     derived from the active conduct by the taxpayer of any trade 
     or business during such taxable year. For purposes of this 
     paragraph, rules similar to the rules of subparagraphs (B) 
     and (C) of section 179(b)(3) shall apply. In the case of a 
     partnership, S corporation, trust or other pass thru entity, 
     this paragraph shall be applied at both the entity and owner 
     levels.
       ``(2) Recapture rules.--
       ``(A) Property not used in trade or business.--The 
     Secretary shall, by regulations, provide for recapturing the 
     benefit of any deduction allowable under subsection (a) with 
     respect to any property not used predominantly in a trade or 
     business at any time.
       ``(B) Treatment of gain as ordinary income.--For purposes 
     of section 1245--
       ``(i) the deduction allowable under subsection (a) shall be 
     treated as a deduction allowable to the taxpayer for 
     depreciation or amortization; and
       ``(ii) property (other than section 1245 property) to which 
     the deduction would otherwise have been chargeable shall be 
     treated as section 1245 property solely for purposes of 
     applying section 1245 to such deduction.''
       (b) Conforming Amendments.--The table of sections for part 
     II of subchapter U of chapter 1 of such Code is amended--
       (1) by striking ``TAX-EXEMPT FACILITY BONDS'' in the 
     heading for part II and inserting ``TAX-INCENTIVES'', and
       (2) by adding at the end the following new item:

``Sec. 1395. Expensing of environmental remediation costs.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
          Subtitle B--Treatment of Individuals Who Expatriate

     SEC. ____31. REVISION OF TAX RULES ON EXPATRIATION.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsection 
     (f), all property of a covered expatriate to which this 
     section applies shall be treated as sold on the expatriation 
     date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale unless such gain is excluded 
     from gross income under part III of subchapter B, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply (and section 1092 shall apply) to any such 
     loss.
       ``(3) Exclusion for certain gain.--The amount which would 
     (but for this paragraph) be includible in the gross income of 
     any individual by reason of this section shall be reduced 
     (but not below zero) by $600,000. For purposes of this 
     paragraph, allocable expatriation gain taken into account 
     under subsection (f)(2) shall be treated in the same manner 
     as an amount required to be includible in gross income.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If an expatriate elects the application 
     of this paragraph--
       ``(i) this section (other than this paragraph) shall not 
     apply to the expatriate, but
       ``(ii) the expatriate shall be subject to tax under this 
     title, with respect to property to which this section would 
     apply but for such election, in the same manner as if the 
     individual were a United States citizen.
       ``(B) Limitation on amount of estate, gift, and generation-
     skipping transfer taxes.--The aggregate amount of taxes 
     imposed under subtitle B with respect to any transfer of 
     property by reason of an election under subparagraph (A) 
     shall not exceed the amount of income tax which would be due 
     if the property were sold for its fair market value 
     immediately before the time of the

[[Page S8164]]

     transfer or death (taking into account the rules of paragraph 
     (2)).
       ``(C) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(D) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property--
       ``(A) no amount shall be required to be included in gross 
     income under subsection (a)(1) with respect to the gain from 
     such property for the taxable year of the sale, but
       ``(B) the taxpayer's tax for the taxable year in which such 
     property is disposed of shall be increased by the deferred 
     tax amount with respect to the property.

     Except to the extent provided in regulations, subparagraph 
     (B) shall apply to a disposition whether or not gain or loss 
     is recognized in whole or in part on the disposition.
       ``(2) Deferred tax amount.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `deferred tax amount' means, with respect to any property, an 
     amount equal to the sum of--
       ``(i) the difference between the amount of tax paid for the 
     taxable year described in paragraph (1)(A) and the amount 
     which would have been paid for such taxable year if the 
     election under paragraph (1) had not applied to such 
     property, plus
       ``(ii) an amount of interest on the amount described in 
     clause (i) determined for the period--

       ``(I) beginning on the 91st day after the expatriation 
     date, and
       ``(II) ending on the due date for the taxable year 
     described in paragraph (1)(B),

     by using the rates and method applicable under section 6621 
     for underpayments of tax for such period.

     For purposes of clause (ii), the due date is the date 
     prescribed by law (determined without regard to extension) 
     for filing the return of the tax imposed by this chapter for 
     the taxable year.
       ``(B) Allocation of losses.--For purposes of subparagraph 
     (A), any losses described in subsection (a)(2)(B) shall be 
     allocated ratably among the gains described in subsection 
     (a)(2)(A).
       ``(3) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2)(A) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(4) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(5) Dispositions.--For purposes of this subsection, a 
     taxpayer making an election under this subsection with 
     respect to any property shall be treated as having disposed 
     of such property--
       ``(A) immediately before death if such property is held at 
     such time, and
       ``(B) at any time the security provided with respect to the 
     property fails to meet the requirements of paragraph (3) and 
     the taxpayer does not correct such failure within the time 
     specified by the Secretary.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be under paragraph (1) 
     with respect to an interest in a trust with respect to which 
     gain is required to be recognized under subsection (f)(1).
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--The term `covered expatriate' means an 
     expatriate--
       ``(A) whose average annual net income tax (as defined in 
     section 38(c)(1)) for the period of 5 taxable years ending 
     before the expatriation date is greater than $100,000, or
       ``(B) whose net worth as of such date is $500,000 or more.

     If the expatriation date is after 1996, such $100,000 and 
     $500,000 amounts shall be increased by an amount equal to 
     such dollar amount multiplied by the cost-of-living 
     adjustment determined under section 1(f)(3) for such calendar 
     year by substituting `1995' for `1992' in subparagraph (B) 
     thereof. Any increase under the preceding sentence shall be 
     rounded to the nearest multiple of $1,000.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has been a resident of the United States (as defined 
     in section 7701(b)(1)(A)(ii)) for not more than 8 taxable 
     years during the 15-taxable year period ending with the 
     taxable year during which the expatriation date occurs, or
       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Property to Which Section Applies.--For purposes of 
     this section--
       ``(1) In general.--Except as otherwise provided by the 
     Secretary, this section shall apply to--
       ``(A) any interest in property held by a covered expatriate 
     on the expatriation date the gain from which would be 
     includible in the gross income of the expatriate if such 
     interest had been sold for its fair market value on such date 
     in a transaction in which gain is recognized in whole or in 
     part, and
       ``(B) any other interest in a trust to which subsection (f) 
     applies.
       ``(2) Exceptions.--This section shall not apply to the 
     following property:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the expatriation date, 
     meet the requirements of section 897(c)(2).
       ``(B) Interest in certain retirement plans.--
       ``(i) In general.--Any interest in a qualified retirement 
     plan (as defined in section 4974(c)), other than any interest 
     attributable to contributions which are in excess of any 
     limitation or which violate any condition for tax-favored 
     treatment.
       ``(ii) Foreign pension plans.--

       ``(I) In general.--Under regulations prescribed by the 
     Secretary, interests in foreign pension plans or similar 
     retirement arrangements or programs.
       ``(II) Limitation.--The value of property which is treated 
     as not sold by reason of this subparagraph shall not exceed 
     $500,000.

       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes his 
     citizenship, or
       ``(B) any long-term resident of the United States who--
       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing his United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces his United States 
     nationality before a diplomatic or consular officer of the 
     United States pursuant to paragraph (5) of section 349(a) of 
     the Immigration and Nationality Act (8 U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.

     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--
       ``(A) In general.--The term `long-term resident' means any 
     individual (other than a citizen of the United States) who is 
     a lawful permanent resident of the United States in at least 
     8 taxable years during the period of 15 taxable years ending 
     with the taxable year during which the expatriation date 
     occurs. For purposes of the preceding sentence, an individual 
     shall not be treated as a lawful permanent resident for any 
     taxable year if such individual is treated as a resident of a 
     foreign country for the taxable year under the provisions of 
     a tax treaty between the United States and the foreign 
     country and does not waive the benefits of such treaty 
     applicable to residents of the foreign country.

[[Page S8165]]

       ``(B) Special rule.--For purposes of subparagraph (A), 
     there shall not be taken into account--
       ``(i) any taxable year during which any prior sale is 
     treated under subsection (a)(1) as occurring, or
       ``(ii) any taxable year prior to the taxable year referred 
     to in clause (i).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets immediately before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.

     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii).
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year in which the expatriation date occurs, 
     multiplied by the amount of the distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the 
     expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.

     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.
       ``(G) Definitions and special rule.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust--

       ``(I) which is organized under, and governed by, the laws 
     of the United States or a State, and
       ``(II) with respect to which the trust instrument requires 
     that at least 1 trustee of the trust be an individual citizen 
     of the United States or a domestic corporation.

       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the expatriation date, is vested in 
     the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument and any letter of wishes or 
     similar document, historical patterns of trust distributions, 
     and the existence of and functions performed by a trust 
     protector or any similar advisor.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, Etc.--On the date any 
     property held by an individual is treated as sold under 
     subsection (a), notwithstanding any other provision of this 
     title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply and the unpaid portion of such tax shall be due and 
     payable at the time and in the manner prescribed by the 
     Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.
       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.
       ``(i) Coordination With Estate and Gift Taxes.--If 
     subsection (a) applies to property held by an individual for 
     any taxable year and--
       ``(1) such property is includible in the gross estate of 
     such individual solely by reason of section 2107, or
       ``(2) section 2501 applies to a transfer of such property 
     by such individual solely by reason of section 2501(a)(3),

     then there shall be allowed as a credit against the 
     additional tax imposed by section 2101 or 2501, whichever is 
     applicable, solely by reason of section 2107 or 2501(a)(3) an 
     amount equal to the increase in the tax imposed by this 
     chapter for such taxable year by reason of this section.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section, including regulations--
       ``(1) to prevent double taxation by ensuring that--
       ``(A) appropriate adjustments are made to basis to reflect 
     gain recognized by reason of subsection (a) and the exclusion 
     provided by subsection (a)(3), and
       ``(B) any gain by reason of a deemed sale under subsection 
     (a) of an interest in a corporation, partnership, trust, or 
     estate is reduced to reflect that portion of such gain which 
     is attributable to an interest in a

[[Page S8166]]

     trust which a shareholder, partner, or beneficiary is treated 
     as holding directly under subsection (f)(3)(B)(i), and
       ``(2) which provide for the proper allocation of the 
     exclusion under subsection (a)(3) to property to which this 
     section applies.
       ``(k) Cross Reference.--

  ``For income tax treatment of individuals who terminate United States 
citizenship, see section 7701(a)(47).''.

       (b) Inclusion in Income of Gifts and Inheritances From 
     Covered Expatriates.--Section 102 (relating to gifts, etc. 
     not included in gross income) is amended by adding at the end 
     the following new subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
     Subsection (a) shall not exclude from gross income the value 
     of any property acquired by gift, bequest, devise, or 
     inheritance from a covered expatriate after the expatriation 
     date. For purposes of this subsection, any term used in this 
     subsection which is also used in section 877A shall have the 
     same meaning as when used in section 877A.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(47) Termination of united states citizenship.--An 
     individual shall not cease to be treated as a United States 
     citizen before the date on which the individual's citizenship 
     is treated as relinquished under section 877A(e)(3).''.
       (d) Comparable Estate and Gift Tax Treatment.--
       (1) Estate tax.--
       (A) In general.--Subsection (a) of section 2107 is amended 
     to read as follows:
       ``(a) Treatment of Expatriates.--
       ``(1) Rate of tax.--A tax computed in accordance with the 
     table contained in section 2001 is hereby imposed on the 
     transfer of the taxable estate, determined as provided in 
     section 2106, of every decedent nonresident who is an 
     expatriate if the expatriation date of the decedent is within 
     the 10-year period ending with the date of death, unless such 
     expatriation did not have for 1 of its principal purposes the 
     avoidance of taxes under this subtitle or subtitle A.
       ``(2) Certain individuals treated as having tax avoidance 
     purpose.--For purposes of paragraph (1), an individual shall 
     be treated as having a principal purpose to avoid such taxes 
     if such individual is a covered expatriate.
       ``(3) Definitions.--For purposes of this subsection, the 
     terms `expatriate', `expatriation date', and `covered 
     expatriate' have the meanings given such terms by section 
     877A.''.
       (B) Credit for foreign death taxes.--Subsection (c) of 
     section 2107 is amended by redesignating paragraph (2) as 
     paragraph (3) and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Credit for foreign death taxes.--
       ``(A) In general.--The tax imposed by subsection (a) shall 
     be credited with the amount of any estate, inheritance, 
     legacy, or succession taxes actually paid to any foreign 
     country in respect of any property which is included in the 
     gross estate solely by reason of subsection (b).
       ``(B) Limitations on credit.--The credit allowed by 
     subparagraph (A) for such taxes paid to a foreign country 
     shall not exceed the lesser of--
       ``(i) the amount which bears the same ratio to the amount 
     of such taxes actually paid to such foreign country in 
     respect of property included in the gross estate as the value 
     of the property included in the gross estate solely by reason 
     of subsection (b) bears to the value of all property 
     subjected to such taxes by such foreign country, or
       ``(ii) such property's proportionate share of the excess 
     of--

       ``(I) the tax imposed by subsection (a), over
       ``(II) the tax which would be imposed by section 2101 but 
     for this section.

     The amount applicable under clause (i) or (ii) shall be 
     reduced by the amount of any credit allowed under section 
     877A(i).
       ``(C) Proportionate share.--For purposes of subparagraph 
     (B), a property's proportionate share is the percentage of 
     the value of the property which is included in the gross 
     estate solely by reason of subsection (b) bears to the total 
     value of the gross estate.''.
       (C) Expansion of inclusion in gross estate of stock of 
     foreign corporations.--Paragraph (2) of section 2107(b) is 
     amended by striking ``more than 50 percent of'' and all that 
     follows and inserting ``more than 50 percent of--
       ``(A) the total combined voting power of all classes of 
     stock entitled to vote of such corporation, or
       ``(B) the total value of the stock of such corporation,''.
       (2) Gift tax.--
       (A) In general.--Paragraph (3) of section 2501(a) is 
     amended to read as follows:
       ``(3) Exception.--
       ``(A) Certain individuals.--Paragraph (2) shall not apply 
     in the case of a donor who is an expatriate if the 
     expatriation date of the donor is within the 10-year period 
     ending with the date of transfer, unless such expatriation 
     did not have for 1 of its principal purposes the avoidance of 
     taxes under this subtitle or subtitle A.
       ``(B) Certain individuals treated as having tax avoidance 
     purpose.--For purposes of subparagraph (A), an individual 
     shall be treated as having a principal purpose to avoid such 
     taxes if such individual is a covered expatriate.
       ``(C) Credit for foreign gift taxes.--The tax imposed by 
     this section solely by reason of this paragraph shall be 
     credited with the amount of any gift tax actually paid to any 
     foreign country in respect of any gift which is taxable under 
     this section solely by reason of this paragraph. The amount 
     of such credit shall be reduced by the amount of the credit 
     allowed under section 877A(i).
       ``(D) Definitions.--For purposes of this paragraph, the 
     term `expatriate', `expatriation date', and `covered 
     expatriate' have the meanings given such terms by section 
     877A.''.
       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     individual who relinquishes (within the meaning of section 
     877A(e)(3)) United States citizenship on or after February 6, 
     1995.''.
       (2) Section 2107(c) is amended by adding at the end the 
     following new paragraph:
       ``(3) Cross reference.--For credit against the tax imposed 
     by subsection (a) for expatriation tax, see section 
     877A(i).''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new flush sentence:
     ``For credit against the tax imposed under this section by 
     reason of this paragraph, see section 877A(i).''.
       (4) Paragraph (10) of section 7701(b) is amended by adding 
     at the end the following new sentence: ``This paragraph shall 
     not apply to any long-term resident of the United States who 
     is an expatriate (as defined in section 877A(e)(1)).''.
       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after February 
     6, 1995.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to amounts received from expatriates (as so defined) whose 
     expatriation date (as so defined) occurs on and after 
     February 6, 1995.
       (3) Special rules relating to certain acts occurring before 
     february 6, 1995.--In the case of an individual who took an 
     act of expatriation specified in paragraph (1), (2), (3), or 
     (4) of section 349(a) of the Immigration and Nationality Act 
     (8 U.S.C. 1481(a) (1)-(4)) before February 6, 1995, but whose 
     expatriation date (as so defined) occurs after February 6, 
     1995--
       (A) the amendment made by subsection (c) shall not apply,
       (B) the amendment made by subsection (e)(1) shall not apply 
     for any period prior to the expatriation date, and
       (C) the other amendments made by this section shall apply 
     as of the expatriation date.
       (4) Due date for tentative tax.--The due date under section 
     877A(h)(2) of such Code shall in no event occur before the 
     90th day after the date of the enactment of this Act.

     SEC. ____32. INFORMATION ON INDIVIDUALS EXPATRIATING.

       (a) In General.--Subpart A of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6039E the 
     following new section:

     ``SEC. 6039F. INFORMATION ON INDIVIDUALS EXPATRIATING.

       ``(a) Requirement.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, any expatriate (within the meaning of section 
     877A(e)(1)) shall provide a statement which includes the 
     information described in subsection (b).
       ``(2) Timing.--
       ``(A) Citizens.--In the case of an expatriate described in 
     section 877(e)(1)(A), such statement shall be--
       ``(i) provided not later than the expatriation date (within 
     the meaning of section 877A(e)(2)), and
       ``(ii) provided to the person or court referred to in 
     section 877A(e)(3).
       ``(B) Noncitizens.--In the case of an expatriate described 
     in section 877A(e)(1)(B), such statement shall be provided to 
     the Secretary with the return of tax imposed by chapter 1 for 
     the taxable year during which the event described in such 
     section occurs.
       ``(b) Information To Be Provided.--Information required 
     under subsection (a) shall include--
       ``(1) the taxpayer's TIN,
       ``(2) the mailing address of such individual's principal 
     foreign residence,
       ``(3) the foreign country in which such individual is 
     residing,
       ``(4) the foreign country of which such individual is a 
     citizen,
       ``(5) in the case of an individual having a net worth of at 
     least the dollar amount applicable under section 
     877A(c)(1)(B), information detailing the assets and 
     liabilities of such individual, and
       ``(6) such other information as the Secretary may 
     prescribe.
       ``(c) Penalty.--Any individual failing to provide a 
     statement required under subsection (a) shall be subject to a 
     penalty for each year during any portion of which such 
     failure continues in an amount equal to the greater of--

[[Page S8167]]

       ``(1) 5 percent of the additional tax required to be paid 
     under section 877A for such year, or
       ``(2) $1,000,

     unless it is shown that such failure is due to reasonable 
     cause and not to willful neglect.
       ``(d) Information To Be Provided to Secretary.--
     Notwithstanding any other provision of law--
       ``(1) any Federal agency or court which collects (or is 
     required to collect) the statement under subsection (a) shall 
     provide to the Secretary--
       ``(A) a copy of any such statement, and
       ``(B) the name (and any other identifying information) of 
     any individual refusing to comply with the provisions of 
     subsection (a),
       ``(2) the Secretary of State shall provide to the Secretary 
     a copy of each certificate as to the loss of American 
     nationality under section 358 of the Immigration and 
     Nationality Act which is approved by the Secretary of State, 
     and
       ``(3) the Federal agency primarily responsible for 
     administering the immigration laws shall provide to the 
     Secretary the name of each lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)) 
     whose status as such has been revoked or has been 
     administratively or judicially determined to have been 
     abandoned.

     Notwithstanding any other provision of law, not later than 30 
     days after the close of each calendar quarter, the Secretary 
     shall publish in the Federal Register the name of each 
     individual relinquishing United States citizenship (within 
     the meaning of section 877A(e)(3)) with respect to whom the 
     Secretary receives information under the preceding sentence 
     during such quarter.
       ``(e) Exemption.--The Secretary may by regulations exempt 
     any class of individuals from the requirements of this 
     section if the Secretary determines that applying this 
     section to such individuals is not necessary to carry out the 
     purposes of this section.''.
       (b) Clerical Amendment.--The table of sections for such 
     subpart A is amended by inserting after the item relating to 
     section 6039E the following new item:

``Sec. 6039F. Information on individuals expatriating.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to individuals to whom section 877A of the 
     Internal Revenue Code of 1986 applies and whose expatriation 
     date (as defined in section 877A(e)(2)) occurs on or after 
     February 6, 1995, except that no statement shall be required 
     by such amendments before the 90th day after the date of the 
     enactment of this Act.
                                 ______
                                 

                HELMS (AND FAIRCLOTH) AMENDMENT NO. 4896

  (Ordered to lie on the table.)
  Mr. HELMS (for himself and Mr. Faircloth) submitted an amendment 
intended to be proposed by them to the bill S. 1956, supra; as follows:

       Strike section 1134 and insert the following:

     SEC. 1134. WORK REQUIREMENT.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as 
     amended by section 1133, is amended by adding at the end 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 subsection (d)(4), other than a job 
     search program or a job search training program.
       ``(2) Work requirement.--Subject to paragraph (3), no 
     individual shall be eligible to participate in the food stamp 
     program as a member of any household if the individual did 
     not--
       ``(A) work 20 hours or more per week, averaged monthly;
       ``(B) participate in and comply with the requirements of a 
     work program for at least 20 hours or more per week, as 
     determine by the State agency; or
       ``(C) participate in and comply with the requirements of a 
     program under section 20 or a comparable program established 
     by a State or political subdivision of a State.
       ``(3) Exemptions.--Paragraph (1) shall not apply to an 
     individual if the individual is--
       ``(A) a parent resident with a dependent child under 18 
     years of age;
       ``(B) mentally or physically unfit;
       ``(C) under 18 years of age;
       ``(D) 50 years of age or older; or
       ``(E) a pregnant woman.''.
                                 ______
                                 

                       McCAIN AMENDMENT NO. 4898

  (Ordered to lie on the table.)
  Mr. McCAIN submitted an amendment intended to be proposed by him to 
the bill, S. 1956, supra; as follows:

       On page 411, between lines 2 and 3, insert the following:
       ``(4) Families under certain agreements.--In the case of a 
     family receiving assistance from an Indian tribe, distribute 
     the amount so collected pursuant to an agreement entered into 
     pursuant to a State plan under section 454(33).
       On page 411, line 3, strike ``(3)'' and insert ``(4)''.
       On page 554, between lines 7 and 8, insert the following:

     SEC. 2375. CHILD SUPPORT ENFORCEMENT FOR INDIAN TRIBES.

       (a) Child Support Enforcement Agreement.--Section 454 (42 
     U.S.C. 654), as amended by sections 2301(b), 2303(a), 
     2312(b), 2313(a), 2333, 2343(b), 2370(a)(2), and 2371(b) of 
     this Act is amended--
       (1) by striking ``and'' at the end of paragraph (31);
       (2) by striking the period at the end of paragraph (32) and 
     inserting ``; and'';
       (3) by adding after paragraph (32) the following new 
     paragraph:
       ``(33) provide that a State that receives funding pursuant 
     to section 428 and that has within its borders Indian country 
     (as defined in section 1151 of title 18, United States Code) 
     may enter into cooperative agreements with an Indian tribe or 
     tribal organization (as defined in subsections (e) and (l) of 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)), if the Indian tribe or 
     tribal organization demonstrates that such tribe or 
     organization has an established tribal court system or a 
     Court of Indian Offenses with the authority to establish 
     paternity, establish, modify, and enforce support orders, and 
     to enter support orders in accordance with child support 
     guidelines established by such tribe or organization, under 
     which the State and tribe or organization shall provide for 
     the cooperative delivery of child support enforcement 
     services in Indian country and for the forwarding of all 
     funding collected pursuant to the functions performed by the 
     tribe or organization to the State agency, or conversely, by 
     the State agency to the tribe or organization, which shall 
     distribute such funding in accordance with such agreement; 
     and
       (4) by adding at the end the following new sentence: 
     ``Nothing in paragraph (33) shall void any provision of any 
     cooperative agreement entered into before the date of the 
     enactment of such paragraph, nor shall such paragraph deprive 
     any State of jurisdiction over Indian country (as so defined) 
     that is lawfully exercised under section 402 of the Act 
     entitled `An Act to prescribe penalties for certain acts of 
     violence or intimidation, and for other purposes', approved 
     April 11, 1968 (25 U.S.C. 1322).''.
       (b) Direct Federal Funding to Indian Tribes and Tribal 
     Organizations.--Section 455 (42 U.S.C. 655) is amended by 
     adding at the end the following new subsection:
       ``(b) The Secretary may, in appropriate cases, make direct 
     payments under this part to an Indian tribe or tribal 
     organization which has an approved child support enforcement 
     plan under this title. In determining whether such payments 
     are appropriate, the Secretary shall, at a minimum, consider 
     whether services are being provided to eligible Indian 
     recipients by the State agency through an agreement entered 
     into pursuant to section 454(33).''.
       (c) Cooperative Enforcement Agreements.--Paragraph (7) of 
     section 454 (42 U.S.C. 654) is amended by inserting ``and 
     Indian tribes or tribal organizations (as defined in 
     subsections (e) and (l) of section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b))'' after ``law enforcement officials''.
       (d) Conforming Amendments.--Subsection (c) of section 428 
     (42 U.S.C. 628) is amended to read as follows:
       ``(c) For purposes of this section, the terms `Indian 
     tribe' and `tribal organization' shall have the meanings 
     given such terms by subsections (e) and (l) of section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b)), respectively.''.
                                 ______
                                 

                DASCHLE (AND OTHERS) AMENDMENT NO. 4897

  Mr. DASCHLE (for himself, Mr. Breaux, Ms. Mikulski, Mr. Ford, Mr. 
Rockefeller, Mr. Reid, Mr. Kerrey, and Mr. Harkin) proposed an 
amendment to the bill, S. 1956, supra; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Work First Act of 1996''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

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

                TITLE I--TEMPORARY EMPLOYMENT ASSISTANCE

Sec. 101. State plan.

              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

Sec. 201. Work first employment block grant.
Sec. 202. Consolidation and streamlining of services.
Sec. 203. Job creation.
Sec. 204. Community Steering Committees Demonstration Projects.

                       TITLE III--SUPPORTING WORK

Sec. 301. Eligibility for medicaid benefits.
Sec. 302. Consolidated child care development block grant.

       TITLE IV--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

Sec. 401. Supervised living arrangements for minors.

[[Page S8168]]

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

            TITLE V--INTERSTATE CHILD SUPPORT RESPONSIBILITY

     Subtitle A--Eligibility for Services; Distribution of Payments

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

                  Subtitle B--Locate and Case Tracking

Sec. 511. State case registry.
Sec. 512. Collection and disbursement of support payments.
Sec. 513. State directory of new hires.
Sec. 514. Amendments concerning income withholding.
Sec. 515. Locator information from interstate networks.
Sec. 516. Expansion of the Federal parent locator service.
Sec. 517. Collection and use of social security numbers for use in 
              child support enforcement.

         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 521. Adoption of uniform State laws.
Sec. 522. Improvements to full faith and credit for child support 
              orders.
Sec. 523. Administrative enforcement in interstate cases.
Sec. 524. Use of forms in interstate enforcement.
Sec. 525. State laws providing expedited procedures.

                  Subtitle D--Paternity Establishment

Sec. 531. State laws concerning paternity establishment.
Sec. 532. Outreach for voluntary paternity establishment.
Sec. 533. Cooperation by applicants for and recipients of part A 
              assistance.

             Subtitle E--Program Administration and Funding

Sec. 541. Performance-based incentives and penalties.
Sec. 542. Federal and State reviews and audits.
Sec. 543. Required reporting procedures.
Sec. 544. Automated data processing requirements.
Sec. 545. Technical assistance.
Sec. 546. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 551. Simplified process for review and adjustment of child support 
              orders.
Sec. 552. Furnishing consumer reports for certain purposes relating to 
              child support.
Sec. 553. Nonliability for financial institutions providing financial 
              records to State child support enforcement agencies in 
              child support cases.

               Subtitle G--Enforcement of Support Orders

Sec. 561. Internal Revenue Service collection of arrearages.
Sec. 562. Authority to collect support from Federal employees.
Sec. 563. Enforcement of child support obligations of members of the 
              armed forces.
Sec. 564. Voiding of fraudulent transfers.
Sec. 565. Work requirement for persons owing past-due child support.
Sec. 566. Definition of support order.
Sec. 567. Reporting arrearages to credit bureaus.
Sec. 568. Liens.
Sec. 569. State law authorizing suspension of licenses.
Sec. 570. Denial of passports for nonpayment of child support.
Sec. 571. International support enforcement.
Sec. 572. Financial institution data matches.
Sec. 573. Enforcement of orders against paternal or maternal 
              grandparents in cases of minor parents.
Sec. 574. Nondischargeability in bankruptcy of certain debts for the 
              support of a child.

                      Subtitle H--Medical Support

Sec. 581. Correction to ERISA definition of medical child support 
              order.
Sec. 582. Enforcement of orders for health care coverage.

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

Sec. 591. Grants to States for access and visitation programs.

         Subtitle J--Effective Dates and Conforming Amendments

Sec. 595. Effective dates and conforming amendments.

             TITLE VI--SUPPLEMENTAL SECURITY INCOME REFORM

                  Subtitle A--Eligibility Restrictions

Sec. 601. 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. 602. Denial of SSI benefits for fugitive felons and probation and 
              parole violators.
Sec. 603. Treatment of prisoners.
Sec. 604. Effective date of application for benefits.

               Subtitle B--Benefits for Disabled Children

Sec. 611. Definition and eligibility rules.
Sec. 612. Continuing disability reviews.
Sec. 613. Additional accountability requirements.
Sec. 614. Reduction in cash benefits payable to institutionalized 
              children whose medical costs are covered by private 
              insurance.
Sec. 615. Modification respecting parental income deemed to disabled 
              children.

                   Subtitle C--Enforcement Provisions

Sec. 621. Installment payment of large past-due supplemental security 
              income benefits.

         Subtitle D--Study of Disability Determination Process

Sec. 631. Annual report on the supplemental security income program.
Sec. 632. Improvements to disability evaluation.
Sec. 633. Study of disability determination process.
Sec. 634. Study by general accounting office.

      Subtitle E--National Commission on the Future of Disability

Sec. 641. Establishment.
Sec. 642. Duties of the commission.
Sec. 643. Membership.
Sec. 644. Staff and support services.
Sec. 645. Powers of commission.
Sec. 646. Reports.
Sec. 647. Termination.

     TITLE VII--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

Sec. 700. Statements of national policy concerning welfare and 
              immigration.

              Subtitle A--Eligibility for Federal Benefits

Sec. 701. Aliens who are not qualified aliens ineligible for Federal 
              public benefits.
Sec. 702. Limited eligibility of certain qualified aliens for SSI 
              benefits.
Sec. 703. Five-year limited eligibility of qualified aliens for Federal 
              means-tested public benefit.
Sec. 704. Notification and information reporting.

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

Sec. 711. Aliens who are not qualified aliens or nonimmigrants 
              ineligible for State and local public benefits.

      Subtitle C--Attribution of Income and Affidavits of Support

Sec. 721. Federal attribution of sponsor's income and resources to 
              alien for purposes of medicaid, food stamps, and TEA 
              eligibility.
Sec. 722. Authority for States to provide for attribution of sponsor's 
              income and resources to the alien with respect to State 
              programs.
Sec. 723. Requirements for sponsor's affidavit of support.
Sec. 724. Cosignature of alien student loans.

                     Subtitle D--General Provisions

Sec. 731. Definitions.
Sec. 732. Statutory construction.
Sec. 733. Title inapplicable to programs specified by attorney general.
Sec. 734. Title inapplicable to programs of nonprofit charitable 
              organizations.

                   Subtitle E--Conforming Amendments

Sec. 741. Conforming amendments relating to assisted housing.

                      TITLE VIII--FOOD ASSISTANCE

                     Subtitle A--Food Stamp Program

Sec. 801. Definition of certification period.
Sec. 802. Definition of coupon.
Sec. 803. Treatment of children living at home.
Sec. 804. Adjustment of the thrifty food plan.
Sec. 805. Definition of homeless individual.
Sec. 806. State option for eligibility standards.
Sec. 807. Earnings of students.
Sec. 808. Energy assistance.
Sec. 809. Reduction in the standard deduction.
Sec. 810. Mandatory use of a standard utility allowance.
Sec. 811. Vehicle asset limitation.
Sec. 812. Vendor payments for transitional housing counted as income.
Sec. 813. Doubled penalties for violating food stamp program 
              requirements.
Sec. 814. Disqualification of convicted individuals.
Sec. 815. Disqualification.
Sec. 816. Employment and training.
Sec. 817. Comparable treatment for disqualification.
Sec. 818. Disqualification of fleeing felons.
Sec. 819. Cooperation with child support agencies.
Sec. 820. Work requirement.
Sec. 821. Encourage electronic benefit transfer systems.
Sec. 822. Minimum benefit adjustments.
Sec. 823. Prorated benefits on recertification.
Sec. 824. Optional combined allotment for expedited households.
Sec. 825. Failure to comply with other welfare or public assistance 
              programs.
Sec. 826. Allotments for households residing in centers.

[[Page S8169]]

Sec. 827. Income, eligibility, and immigration status verification 
              systems.
Sec. 828. Exchange of law enforcement information.
Sec. 829. Expedited coupon service.
Sec. 830. Withdrawing fair hearing requests.
Sec. 831. Collection of overissuances.
Sec. 832. Response to waivers.
Sec. 833. Simplified food stamp program.
Sec. 834. Authority to establish authorized periods.
Sec. 835. Specific period for prohibiting participation of stores based 
              on lack of business integrity.
Sec. 836. Information for verifying eligibility for authorization.
Sec. 837. Waiting period for stores that initially fail to meet 
              authorization criteria.
Sec. 838. Mandatory claims collection methods.
Sec. 839. Bases for suspensions and disqualifications.
Sec. 840. Disqualification of stores pending judicial and 
              administrative review.
Sec. 841. Disqualification of retailers who are disqualified under the 
              wic program.
Sec. 842. Permanent debarment of retailers who intentionally submit 
              falsified applications.
Sec. 843. Criminal forfeiture.
Sec. 844. Effective date.

                  Subtitle B--Child Nutrition Programs

Sec. 851. Reimbursement rate adjustments.
Sec. 852. Direct Federal expenditures.
Sec. 853. Improved targeting of day care home reimbursements.
Sec. 854. Elimination of startup and expansion grants.
Sec. 855. Authorization of appropriations.

TITLE IX--SOCIAL SERVICES BLOCK GRANT; EITC; CHILD ABUSE PREVENTION AND 
                               TREATMENT

  Subtitle A--Reduction in Block Grants to States for Social Services

Sec. 901. Reduction in block grants to States for social services.

               Subtitle B--Reform of Earned Income Credit

Sec. 911. Earned income credit and other tax benefits denied to 
              individuals failing to provide taxpayer identification 
              numbers.
Sec. 912. Rules relating to denial of earned income credit on basis of 
              disqualified income.
Sec. 913. Modification of adjusted gross income definition for earned 
              income credit.

            Subtitle C--Child Abuse Prevention and Treatment

Sec. 921. Short title.
Sec. 922. Reference.
Sec. 923. Findings.
Sec. 924. Office of Child Abuse and Neglect.
Sec. 925. Advisory Board on Child Abuse and Neglect.
Sec. 926. Repeal of interagency task force.
Sec. 927. National clearinghouse for information relating to child 
              abuse.
Sec. 928. Research, evaluation and assistance activities.
Sec. 929. Grants for demonstration programs.
Sec. 930. State grants for prevention and treatment programs.
Sec. 931. Repeal.
Sec. 932. Miscellaneous requirements.
Sec. 933. Definitions.
Sec. 934. Authorization of appropriations.
Sec. 935. Rule of construction.
Sec. 936. Technical amendment.

 Subtitle D--Community-Based Child Abuse and Neglect Prevention Grants

Sec. 941. Establishment of program.
Sec. 942. Repeals.

          Subtitle E--Family Violence Prevention and Services

Sec. 951. Reference.
Sec. 952. State demonstration grants.
Sec. 953. Allotments.
Sec. 954. Authorization of appropriations.

                   Subtitle F--Adoption Opportunities

Sec. 961. Reference.
Sec. 962. Findings and purpose.
Sec. 963. Information and services.
Sec. 964. Authorization of appropriations.

          Subtitle G--Abandoned Infants Assistance Act of 1986

Sec. 971. Reauthorization.

            Subtitle H--Reauthorization of Various Programs

Sec. 981. Missing Children's Assistance Act.
Sec. 982. Victims of Child Abuse Act of 1990.

           TITLE X--EFFECTIVE DATE; MISCELLANEOUS PROVISIONS

Sec. 1001. Effective date.
Sec. 1002. Treatment of existing waivers.
Sec. 1003. Expedited waiver process.
Sec. 1004. County welfare demonstration project.
Sec. 1005. Work requirements for State of Hawaii.
Sec. 1006. Requirement that data relating to the incidence of poverty 
              in the United States be published at least every 2 years.
Sec. 1007. Study by the Census Bureau.
Sec. 1008. Secretarial submission of legislative proposal for technical 
              and conforming amendments.

     SEC. 3. AMENDMENT OF THE SOCIAL SECURITY ACT.

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

     SEC. 101. STATE PLAN.

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

               ``PART A--TEMPORARY EMPLOYMENT ASSISTANCE

     ``SEC. 400. APPROPRIATION.

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

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

     ``SEC. 401. ELEMENTS OF STATE PLANS.

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

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

       ``(a) In General.--The State plan shall provide that any 
     family--
       ``(1) with 1 or more children (or any expectant family, at 
     the option of the State), defined as needy by the State; and
       ``(2) which fulfills the conditions set forth in subsection 
     (b),

     shall be eligible for cash assistance under the plan, except 
     as otherwise provided under this part.
       ``(b) Parent Empowerment Contract.--The State plan shall 
     provide that not later than 10 days after the approval of the 
     application for temporary employment assistance, a parent 
     qualifying for assistance shall execute a parent empowerment 
     contract as described in section 403. If a child otherwise 
     eligible for assistance under this part is residing with a 
     relative other than a parent, the State plan may require the 
     relative to execute such an empowerment contract as a 
     condition of the family receiving such assistance.
       ``(c) Limitations on Eligibility.--
       ``(1) No assistance for more than 5 years.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), the State plan shall provide that the family of an 
     individual who has received assistance under the plan for the 
     lesser of--
       ``(i) the period of time established at the option of the 
     State; or
       ``(ii) 60 months (whether or not consecutive),

     shall no longer be eligible for cash assistance under the 
     plan.
       ``(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 plan, 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 20 percent of the 
     average monthly number of families to which assistance is 
     provided under the State plan.
       ``(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, including threats, intimidation, acts 
     designed to induce terror, or restraints of liberty; or
       ``(VII) neglect or deprivation of medical care.

       ``(2) Effects of denial of cash assistance.--
       ``(A) Provision of safety net assistance.--In the event 
     that a family is denied cash assistance because of a time 
     limit imposed under paragraph (1), a State shall provide 
     safety net assistance for any child in the family, in 
     accordance with subparagraph (C).
       ``(B) Other assistance.--The--

[[Page S8170]]

       ``(i) eligibility of a family that receives safety net 
     assistance under subparagraph (A) for any other Federal or 
     federally assisted program based on need, shall be determined 
     without regard to such assistance; and
       ``(ii) such a family shall be considered to be receiving 
     cash assistance in the amount of the safety net assistance 
     provided for purposes of determining the amount of any 
     assistance provided to the family under any other such 
     program.
       ``(C) Safety net assistance requirements.--Safety net 
     assistance provided for a child in a family under 
     subparagraph (A) shall be based on a State's assessment of 
     the needs of such child and shall be provided through a 
     voucher that is--
       ``(i) with respect to the amount of the voucher, determined 
     on the same basis as the State would provide assistance under 
     the State plan to such a family with 1 less individual;
       ``(ii) designed appropriately to pay third parties for 
     shelter, goods, and services received by the child; and
       ``(iii) payable directly to such third parties.
       ``(3) Treatment of interstate migrants.--The State plan may 
     apply to a category of families the rules for such category 
     under a plan of another State approved under this part, if a 
     family in such category has moved to the State from the other 
     State and has resided in the State for less than 12 months.
       ``(4) Individuals on old-age assistance or ssi ineligible 
     for temporary employment assistance.--The State plan shall 
     provide that no assistance shall be furnished any individual 
     under the plan with respect to any period with respect to 
     which such individual is receiving old-age assistance under 
     the State plan approved under section 102 of title I or 
     supplemental security income under title XVI, and such 
     individual's assistance or income shall be disregarded in 
     determining the eligibility of the family of such individual 
     for temporary employment assistance.
       ``(5) Children for whom federal, state, or local foster 
     care maintenance or adoption assistance payments are made.--A 
     child with respect to whom foster care maintenance payments 
     or adoption assistance payments are made under part E or 
     under State or local law shall not, for the period for which 
     such payments are made, be regarded as a needy child under 
     this part, and such child's income and resources shall be 
     disregarded in determining the eligibility of the family of 
     such child for temporary employment assistance.
       ``(6) Denial of assistance for 10 years to a person found 
     to have fraudulently misrepresented residence in order to 
     obtain assistance in 2 or more states.--The State plan shall 
     provide that no assistance will be furnished any individual 
     under the plan during the 10-year period that begins on the 
     date the individual is convicted in Federal or State court of 
     having made, a fraudulent statement or representation with 
     respect to the place of residence of the individual in order 
     to receive benefits or services simultaneously from 2 or more 
     States under programs that are funded under this part, title 
     XIX, or the Food Stamp Act of 1977, or benefits in 2 or more 
     States under the supplemental security income program under 
     title XVI.
       ``(7) Denial of assistance for fugitive felons and 
     probation and parole violators.--
       ``(A) In general.--The State plan shall provide that no 
     assistance will be furnished any individual under the plan 
     for any period if during such period such individual 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.--Notwithstanding any other provision of law, the 
     State plan shall provide that the State shall furnish any 
     Federal, State, or local law enforcement officer, upon the 
     request of the officer, with the current address of any 
     recipient of assistance under the plan, if the officer 
     furnishes the agency with the name of the recipient and 
     notifies the agency that--
       ``(i) such recipient--

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

       ``(ii) the location or apprehension of the recipient is 
     within such officer's official duties.
       ``(d) Determination of Eligibility.--
       ``(1) Determination of need.--The State plan shall provide 
     that the State agency take into consideration any income and 
     resources of any individual the State determines should be 
     considered in determining the need of the child or relative 
     claiming temporary employment assistance.
       ``(2) Resource and income determination.--In determining 
     the total resources and income of the family of any needy 
     child, the State plan shall provide the following:
       ``(A) Resources.--The State's resource limit, including a 
     description of the policy determined by the State regarding 
     any exclusion allowed for vehicles owned by family members, 
     resources set aside for future needs of a child, individual 
     development accounts, or other policies established by the 
     State to encourage savings.
       ``(B) Family income.--The extent to which earned or 
     unearned income is disregarded in determining eligibility 
     for, and amount of, assistance.
       ``(C) Child support.--The State's policy, if any, for 
     determining the extent to which child support received in 
     excess of $50 per month on behalf of a member of the family 
     is disregarded in determining eligibility for, and the amount 
     of, assistance.
       ``(D) Child's earnings.--The treatment of earnings of a 
     child living in the home.
       ``(E) Earned income tax credit.--The State agency shall 
     disregard any refund of Federal income taxes made to a family 
     receiving temporary employment assistance by reason of 
     section 32 of the Internal Revenue Code of 1986 (relating to 
     earned income tax credit) and any payment made to such a 
     family by an employer under section 3507 of such Code 
     (relating to advance payment of earned income credit).
       ``(F) Attribution of sponsor's income and resources for 
     alien recipients.--The State agency shall determine the 
     eligibility of an alien in accordance with the provisions of 
     section 721 of the Work First Act of 1996.
       ``(3) Verification System.--The State plan shall provide 
     that information is requested and exchanged for purposes of 
     income and eligibility verification in accordance with a 
     State system which meets the requirements of section 1137.
       ``(e) Provisions Relating to Victims of Domestic 
     Violence.--The State plan shall--
       ``(1) provide that the State has in effect provisions for 
     victims of domestic violence receiving temporary employment 
     assistance; and
       ``(2) provide that the State agency administering the plan 
     approved under this part shall be responsible for assuring 
     that--
       ``(A) adequate mechanisms are in place for screening and 
     identifying recipients of such assistance who have been 
     victims of domestic violence;
       ``(B) procedures are in place to refer such recipients to 
     legal counseling and supportive services;
       ``(C) the time limit for receipt of such assistance imposed 
     under subsection (c)(1) is tolled for recipients of such 
     assistance who are seriously affected by domestic violence; 
     and
       ``(D) other requirements imposed under the State plan such 
     as residency requirements and child support cooperation 
     requirements will be waived in any case where imposing such 
     requirements would make it more difficult for a recipient of 
     temporary employment assistance to escape domestic violence 
     or would unfairly sanction a recipient victimized by, or at 
     risk of, domestic violence.

     ``SEC. 403. PARENT EMPOWERMENT CONTRACT.

       ``(a) Assessment.--The State plan shall provide that the 
     State agency, through a case manager, shall make an initial 
     assessment of the skills, prior work experience, and 
     employability of each parent who is applying for temporary 
     employment assistance under the plan, along with an 
     assessment of the history of domestic violence (if any) of 
     such parent.
       ``(b) Parent Empowerment Contracts.--On the basis of the 
     assessment made under subsection (a) with respect to each 
     parent, the case manager, in consultation with the parent or 
     parents of a family (hereafter in this title referred to as 
     the `client'), shall develop a parent empowerment contract 
     for the client, which meets the following requirements:
       ``(1) Sets forth the obligations of the client, including 1 
     or more of the following:
       ``(A) Search for a job.
       ``(B) Engage in work-related activities to help the client 
     become and remain employed in the private sector.
       ``(C) Attend school, if necessary, and maintain certain 
     grades and attendance.
       ``(D) Participate in counseling, safety-related, and legal 
     activities, and supportive services related to the client's 
     experience of domestic violence.
       ``(E) Keep school age children of the client in school.
       ``(F) Immunize children of the client.
       ``(G) Attend parenting and money management classes.
       ``(H) Any other appropriate activity, at the option of the 
     State.
       ``(2) To the greatest extent possible, is designed to move 
     the client as quickly as possible into whatever type and 
     amount of work as the client is capable of handling, and to 
     increase the responsibility and amount of work over time 
     until the client is able to work full-time.
       ``(3) Provides for participation by the client in job 
     search activities for the first 2 months after the 
     application for temporary employment assistance under the 
     State plan, unless the client is already working at least 20 
     hours per week.
       ``(4) If necessary to provide the client with support and 
     skills necessary to obtain and keep employment in the private 
     sector, provides for job counseling or other services, and, 
     if additionally necessary, education or training through the 
     Work First program under part F.  
       ``(5) Provides that the client shall accept any bona fide 
     offer of unsubsidized full-time employment, unless the client 
     has good cause for not doing so.

[[Page S8171]]

       ``(6) At the option of the State, provides that the client 
     undergo   appropriate substance abuse treatment.
       ``(7) Provides that the client--
       ``(A) assign to the State any rights to support from any 
     other person the client may have in such client's own behalf 
     or in behalf of any other family member for whom the client 
     is applying for or receiving assistance; and
       ``(B) cooperate with the State--
       ``(i) in establishing the paternity of a child born out of 
     wedlock with respect to whom assistance is claimed, and
       ``(ii) in obtaining support payments for such client and 
     for a child with respect to whom such assistance is claimed, 
     or in obtaining any other payments or property due such 
     client or such child, unless (in either case) such client is 
     found to have good cause for refusing to cooperate as 
     determined by the State agency in accordance with standards 
     prescribed by the Secretary. Such standards shall take into 
     consideration the best interests of the child on whose behalf 
     assistance is claimed, and shall provide that good cause 
     shall include the reasonable fear of a recipient for her own 
     safety or the safety of a family member where the putative 
     child support obligee has committed domestic violence against 
     the recipient or a family member in the past.
       ``(c) Penalties for Noncompliance With Parent Empowerment 
     Contract.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     following penalties shall apply:
       ``(A) Progressive reductions in assistance for 1st and 2nd 
     acts of noncompliance.--
       ``(i) In general.--The State plan shall provide that the 
     amount of temporary employment assistance otherwise payable 
     under the plan to a family that includes a client who, with 
     respect to a parent empowerment contract signed by the 
     client, commits an act of noncompliance without good cause, 
     shall be reduced by--

       ``(I) 33 percent for the 1st such act of noncompliance; or
       ``(II) 66 percent for the 2nd such act of noncompliance.

       ``(ii) Good cause.--Good cause for noncompliance of a 
     parent empowerment contract shall include a determination 
     that a recipient fears for her own safety or the safety of a 
     family member where the recipient or family member has been 
     the victim of domestic violence and reasonably believes that 
     acceptance of employment would put her or her family at 
     future risk, and is temporarily unable to fulfill her 
     employment obligations due to legal and court obligations 
     associated with seeking remedies for domestic violence.
       ``(B) Denial of assistance for 3rd and subsequent acts of 
     noncompliance.--The State plan shall provide that in the case 
     of the 3rd or subsequent such act of noncompliance, the 
     family of which the client is a member shall not thereafter 
     be eligible for temporary employment assistance under the 
     State plan.
       ``(C) Length of penalties.--The penalty for an act of 
     noncompliance shall not exceed the greater of--
       ``(i) in the case of--

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

       ``(ii) the period ending with the cessation of such act of 
     noncompliance.
       ``(D) Denial of temporary employment assistance to adults 
     refusing to accept a bona fide offer of employment.--The 
     State plan shall provide that if an unemployed individual who 
     has attained 18 years of age refuses to accept a bona fide 
     offer of employment without good cause, such act of 
     noncompliance shall be considered a 3rd or subsequent act of 
     noncompliance.
       ``(2) Exception.--Notwithstanding paragraph (1), a State 
     may not reduce or terminate assistance under the State plan 
     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.
       ``(3) State flexibility.--The State plan may provide for 
     different penalties than those specified in paragraph (1).

     ``SEC. 404. PAYMENT OF ASSISTANCE.

       ``(a) Standards of Assistance.--The State plan shall 
     specify standards of assistance, including--
       ``(1) the composition of the unit for which assistance will 
     be provided;
       ``(2) a standard, expressed in money amounts, to be used in 
     determining the need of applicants and recipients;
       ``(3) a standard, expressed in money amounts, to be used in 
     determining the amount of the assistance payment; and
       ``(4) the methodology to be used in determining the payment 
     amount received by assistance units.
       ``(b) Level of Assistance.--The State plan shall provide 
     that the determination of need and the amount of assistance 
     for all applicants and recipients shall be made on an 
     objective and equitable basis.
       ``(c) State Option To Deny Additional Cash Assistance for 
     Children Born to Families Receiving Assistance.--
       ``(1) General rule.--At the option of a State, the State 
     plan may provide that no additional cash assistance be 
     provided for a minor child who is born to--
       ``(A) a recipient of temporary employment assistance under 
     the plan; or
       ``(B) an individual who received such assistance at any 
     time during the 10-month period ending with the birth of the 
     child.
       ``(2) Exception for vouchers.--If a State exercises the 
     option under paragraph (1), the State may provide vouchers, 
     in lieu of the cash assistance not provided, to be used only 
     to pay for particular goods and services specified by the 
     State as suitable for the care of the child involved.
       ``(3) Exception for rape or incest.--Paragraph (1) shall 
     not apply with respect to a child who is born as a result of 
     rape or incest.
       ``(d) Correction of Payments.--The State plan shall provide 
     that the State agency will promptly take all necessary steps 
     to correct any overpayment or underpayment of assistance 
     under such plan, including the request for Federal tax refund 
     intercepts as provided under section 417.

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

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

     ``SEC. 406. OTHER PROGRAMS.

       ``(a) Work First.--The State plan shall provide that the 
     State has in effect and operation a Work First program that 
     meets the requirements of part F.
       ``(b) State Child Support Agency.--The State plan shall--
       ``(1) provide that the State has in effect a plan approved 
     under part D and operates a child support program in 
     substantial compliance with such plan;
       ``(2) provide that the State agency administering the plan 
     approved under this part shall be responsible for assuring 
     that--
       ``(A) the benefits and services provided under plans 
     approved under this part and part D are furnished in an 
     integrated manner, including coordination of intake 
     procedures with the agency administering the plan approved 
     under part D;
       ``(B) all applicants for, and recipients of, temporary 
     employment assistance are encouraged, assisted, and required 
     (as provided under section 403(b)(7)(B)) to cooperate in the 
     establishment and enforcement of paternity and child support 
     obligations and are notified about the services available 
     under the State plan approved under part D (consistent with 
     the good cause exception for noncooperation under such 
     section in a case involving a recipient with a reasonable 
     fear of domestic violence); and
       ``(C) procedures require referral of paternity and child 
     support enforcement cases to the agency administering the 
     plan approved under part D not later than 10 days after the 
     application for temporary employment assistance; and
       ``(3) provide for prompt notice (including the transmittal 
     of all relevant information) to the State child support 
     collection agency established pursuant to part D of the 
     furnishing of temporary employment assistance with respect to 
     a child who has been deserted or abandoned by a parent 
     (including a child born out-of-wedlock without regard to 
     whether the paternity of such child has been established).
       ``(c) Child Welfare Services and Foster Care and Adoption 
     Assistance.--The State plan shall provide that the State has 
     in effect--
       ``(1) a State plan for child welfare services approved 
     under part B; and
       ``(2) a State plan for foster care and adoption assistance 
     approved under part E,

     and operates such plans in substantial compliance with the 
     requirements of such parts.
       ``(d) Report of Child Abuse, etc.--The State plan shall 
     provide that the State agency will--
       ``(1) report to an appropriate agency or official, known or 
     suspected instances of physical or mental injury, sexual 
     abuse or exploitation, or negligent treatment or maltreatment 
     of a child receiving assistance under the State plan under 
     circumstances which indicate that the child's health or 
     welfare is threatened thereby; and
       ``(2) provide such information with respect to a situation 
     described in paragraph (1) as the State agency may have.
       ``(e) Out-of-Wedlock and Teen Pregnancy Programs.--The 
     State plan shall provide for the development of a program--

[[Page S8172]]

       ``(1) to reduce the incidence of out-of-wedlock 
     pregnancies, which may include providing unmarried mothers 
     and unmarried fathers with services which will help them--
       ``(A) avoid subsequent pregnancies, and
       ``(B) provide adequate care to their children; and
       ``(2) to reduce teenage pregnancy, which may include, at 
     the option of the State, providing education and counseling 
     to male and female teenagers.
       ``(f) Availability of Assistance in Rural Areas of State.--
     The State plan shall consider and address the needs of rural 
     areas in the State to ensure that families in such areas 
     receive assistance to become self-sufficient.
       ``(g) Family Preservation.--
       ``(1) In general.--The State plan shall describe the 
     efforts by the State to promote family preservation and 
     stability, including efforts--
       ``(A) to encourage fathers to stay home and be a part of 
     the family;
       ``(B) to keep families together to the extent possible; and
       ``(C) except to the extent provided in paragraph (2), to 
     treat 2-parent families and 1-parent families equally with 
     respect to eligibility for assistance.
       ``(2) Maintenance of treatment.--The State may impose 
     eligibility limitations relating specifically to 2-parent 
     families to the extent such limitations are no more 
     restrictive than such limitations in effect in the State plan 
     in fiscal year 1995.

     ``SEC. 407. ADMINISTRATIVE REQUIREMENTS FOR STATE PLAN.

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

                 ``Subpart 2--Administrative Provisions

     ``SEC. 411. APPROVAL OF PLAN.

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

     ``SEC. 412. COMPLIANCE.

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

     ``SEC. 413. PAYMENTS TO STATES.

       ``(a) Computation of Amount.--Subject to section 412, from 
     the sums appropriated therefor, the Secretary of the Treasury 
     shall pay to each State which has an approved plan for 
     temporary employment assistance, for each quarter, beginning 
     with the quarter commencing October 1, 1996, an amount equal 
     to the Federal medical assistance percentage (as defined in 
     section 1905(b)) of the expenditures by the State under such 
     plan.
       ``(b) Method of Computation and Payment.--The method of 
     computing and paying such amounts shall be as follows:
       ``(1) The Secretary shall, prior to the beginning of each 
     quarter, estimate the amount to be paid to the State for such 
     quarter under the provisions of subsection (a), such estimate 
     to be based on--
       ``(A) a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter in accordance 
     with the provisions of such subsection and stating the amount 
     appropriated or made available by the State and its political 
     subdivisions for such expenditures in such quarter, and if 
     such amount is less than the State's proportionate share of 
     the total sum of such estimated expenditures, the source or 
     sources from which the difference is expected to be derived;
       ``(B) records showing the number of needy children in the 
     State; and
       ``(C) such other information as the Secretary may find 
     necessary.
       ``(2) The Secretary of Health and Human Services shall then 
     certify to the Secretary of the Treasury the amount so 
     estimated by the Secretary of Health and Human Services--
       ``(A) reduced or increased, as the case may be, by any sum 
     by which the Secretary of Health and Human Services finds 
     that the estimate for any prior quarter was greater or less 
     than the amount which should have been paid to the State for 
     such quarter;
       ``(B) reduced by a sum equivalent to the pro rata share to 
     which the Federal Government is equitably entitled, as 
     determined by the Secretary of Health and Human Services, of 
     the net amount recovered during any prior quarter by the 
     State or any political subdivision thereof with respect to 
     temporary employment assistance furnished under the State 
     plan; and
       ``(C) reduced by such amount as is necessary to provide the 
     appropriate reimbursement to the Federal Government that the 
     State is required to make under section 457 out of that 
     portion of child support collections retained by the State 
     pursuant to such section,

     except that such increases or reductions shall not be made to 
     the extent that such sums have been applied to make the 
     amount certified for any prior quarter greater or less than 
     the amount estimated by the Secretary of Health and Human 
     Services for such prior quarter.
       ``(c) Method of Payment.--The Secretary of the Treasury 
     shall thereupon, through the Fiscal Service of the Department 
     of the Treasury and prior to audit or settlement by the 
     General Accounting Office, pay to the State, at the time or 
     times fixed by the Secretary of Health and Human Services, 
     the amount so certified.

     ``SEC. 414. QUALITY ASSURANCE, DATA COLLECTION, AND REPORTING 
                   SYSTEM.

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

[[Page S8173]]

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

     ``SEC. 415. COMPILATION AND REPORTING OF DATA.

       ``(a) Current Programs.--The Secretary shall, on the basis 
     of the Secretary's review of the reports received from the 
     States under section 414, compile such data as the Secretary 
     believes necessary, and from time to time, publish the 
     findings as to the effectiveness of the programs developed 
     and administered by the States under this part. The Secretary 
     shall annually report to the Congress on the programs 
     developed and administered by each State under this part.
       ``(b) Research, Demonstration and Evaluation.--Of the 
     amount specified under section 413(a), an amount equal to .25 
     percent is authorized to be expended by the Secretary to 
     support the following types of research, demonstrations, and 
     evaluations:
       ``(1) State-initiated research.--States may apply for 
     grants to cover 90 percent of the costs of self-evaluations 
     of programs under State plans approved under this part.
       ``(2) Demonstrations.--
       ``(A) In general.--The Secretary may implement and evaluate 
     demonstrations of innovative and promising strategies to--
       ``(i) improve child well-being through reductions in 
     illegitimacy, teen pregnancy, welfare dependency, 
     homelessness, and poverty;
       ``(ii) test promising strategies by nonprofit and for-
     profit institutions to increase employment, earning, child 
     support payments, and self-sufficiency with respect to 
     temporary employment assistance clients under State plans; 
     and
       ``(iii) foster the development of child care.
       ``(B) Additional parameters.--Demonstrations implemented 
     under this paragraph--
       ``(i) may provide one-time capital funds to establish, 
     expand, or replicate programs;
       ``(ii) may test performance-based grant to loan financing 
     in which programs meeting performance targets receive grants 
     while programs not meeting such targets repay funding on a 
     pro-rated basis; and
       ``(iii) should test strategies in multiple States and types 
     of communities.
       ``(3) Federal evaluations.--
       ``(A) In general.--The Secretary shall conduct research on 
     the effects, benefits, and costs of different approaches to 
     operating welfare programs, including an implementation study 
     based on a representative sample of States and localities, 
     documenting what policies were adopted, how such policies 
     were implemented, the types and mix of services provided, and 
     other such factors as the Secretary deems appropriate.
       ``(B) Research on related issues.--The Secretary shall also 
     conduct research on issues related to the purposes of this 
     part, such as strategies for moving welfare recipients into 
     the workforce quickly, reducing teen pregnancies and out-of-
     wedlock births, and providing adequate child care.
       ``(C) State reimbursement.--The Secretary may reimburse a 
     State for any research-related costs incurred pursuant to 
     research conducted under this paragraph.
       ``(D) Use of random assignment.--Evaluations authorized 
     under this paragraph should use random assignment to the 
     maximum extent feasible and appropriate.
       ``(4) Regional information centers.--
       ``(A) In general.--The Secretary shall establish not less 
     than 5, nor more than 7 regional information centers located 
     at major research universities or consortiums of universities 
     to ensure the effective implementation of welfare reform and 
     the efficient dissemination of information about innovations, 
     evaluation outcomes, and training initiatives.
       ``(B) Center responsibilities.--The Centers shall have the 
     following functions:
       ``(i) Disseminate information about effective income 
     support and related programs, along with suggestions for the 
     replication of such programs.
       ``(ii) Research the factors that cause and sustain welfare 
     dependency and poverty in the regions served by the 
     respective centers.
       ``(iii) Assist the States in the region formulate and 
     implement innovative programs and improvements in existing 
     programs that help clients move off welfare and become 
     productive citizens.
       ``(iv) Provide training as appropriate to staff of State 
     agencies to enhance the ability of the agencies to 
     successfully place Work First clients in productive 
     employment or self-employment.
       ``(C) Center eligibility to perform evaluations.--The 
     Centers may compete for demonstration and evaluation 
     contracts developed under this section.

     ``SEC. 416. COLLECTION OF OVERPAYMENTS FROM FEDERAL TAX 
                   REFUNDS.

       ``(a) In General.--Upon receiving notice from a State 
     agency administering a plan approved under this part that a 
     named individual has been overpaid under the State plan 
     approved under this part, the Secretary of the Treasury shall 
     determine whether any

[[Page S8174]]

     amounts as refunds of Federal taxes paid are payable to such 
     individual, regardless of whether such individual filed a tax 
     return as a married or unmarried individual. If the Secretary 
     of the Treasury finds that any such amount is payable, the 
     Secretary shall withhold from such refunds an amount equal to 
     the overpayment sought to be collected by the State and pay 
     such amount to the State agency.
       ``(b) Regulations.--The Secretary of the Treasury shall 
     issue regulations, approved by the Secretary of Health and 
     Human Services, that provide--
       ``(1) that a State may only submit under subsection (a) 
     requests for collection of overpayments with respect to 
     individuals--
       ``(A) who are no longer receiving temporary employment 
     assistance under the State plan approved under this part,
       ``(B) with respect to whom the State has already taken 
     appropriate action under State law against the income or 
     resources of the individuals or families involved; and
       ``(C) to whom the State agency has given notice of its 
     intent to request withholding by the Secretary of the 
     Treasury from the income tax refunds of such individuals;
       ``(2) that the Secretary of the Treasury will give a timely 
     and appropriate notice to any other person filing a joint 
     return with the individual whose refund is subject to 
     withholding under subsection (a); and
       ``(3) the procedures that the State and the Secretary of 
     the Treasury will follow in carrying out this section which, 
     to the maximum extent feasible and consistent with the 
     specific provisions of this section, will be the same as 
     those issued pursuant to section 464(b) applicable to 
     collection of past-due child support.''.
       (b) Payments to Puerto Rico.--Section 1108(a)(1) (42 U.S.C. 
     1308(a)(1)) is amended--
       (1) in subparagraph (F), by striking ``or''; and
       (2) by striking subparagraph (G) and inserting the 
     following:
       ``(G) $82,000,000 with respect to each of fiscal years 1989 
     through 1995, or
       ``(H) $102,500,000 with respect to the fiscal year 1996 and 
     each fiscal year thereafter;''.
       (c) Conforming Amendments Relating To Collection of 
     Overpayments.--
       (1) Section 6402 of the Internal Revenue Code of 1986 
     (relating to authority to make credits or refunds), as 
     amended by section 561(a), is amended--
       (A) in subsection (a), by striking ``(c) and (d)'' and 
     inserting ``(c), (d), and (e)'';
       (B) by redesignating subsections (e) through (i) as 
     subsections (f) through (j), respectively; and
       (C) by inserting after subsection (d) the following:
       ``(g) Collection of Overpayments Under Title IV-A of the 
     Social Security Act.--The amount of any overpayment to be 
     refunded to the person making the overpayment shall be 
     reduced (after reductions pursuant to subsections (c) and 
     (d), but before a credit against future liability for an 
     internal revenue tax) in accordance with section 417 of the 
     Social Security Act (concerning recovery of overpayments to 
     individuals under State plans approved under part A of title 
     IV of such Act).''.
       (2) Section 552a(a)(8)(B)(iv)(III) of title 5, United 
     States Code, is amended by striking ``section 464 or 1137 of 
     the Social Security Act'' and inserting ``section 417, 464, 
     or 1137 of the Social Security Act.''
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall be effective with 
     respect to calendar quarters beginning on or after October 1, 
     1996.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the requirements imposed by the 
     amendment made by subsection (a), the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendment before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
       (3) Limitation on obligation authority under old program.--
     The Secretary of Health and Human Services is not authorized 
     to enter into any obligation with any State under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
     (as in effect on the day before the date of the enactment of 
     this Act) for expenses incurred under such a State plan under 
     such part (as so in effect) on or after October 1, 1996.
              TITLE II--WORK FIRST EMPLOYMENT BLOCK GRANT

     SEC. 201. WORK FIRST EMPLOYMENT BLOCK GRANT.

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

          ``Part F--Work First Employment Block Grant Program

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

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

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

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

       ``(a) In General.--Except as provided in subsection (b), 
     the State may place in the Work First program--
       ``(1) clients of temporary employment assistance pursuant 
     to the State plan approved under part A who have signed a 
     parent empowerment contract as described in section 403(b); 
     and
       ``(2) absent parents who are unemployed, on the condition 
     that, once employed, such parents meet their child support 
     obligations.
       ``(b) Exception.--A State may, at its option, not require 
     an individual who is a single, custodial parent caring for a 
     child under age 1 to engage in work.
       ``(c) Nondisplacement.--
       ``(1) In general.--No funds provided under this Act shall 
     be used in a manner that would result in--
       ``(A) the displacement of any currently employed worker 
     (including partial displacement, such as a reduction in 
     wages, hours of nonovertime work, or employment benefits), or 
     the impairment of existing contracts for services or 
     collective bargaining agreements; or
       ``(B) the employment or assignment of a client to fill a 
     position when--
       ``(i) any other person is on layoff from the same or a 
     substantially equivalent position; or
       ``(ii) the employer has terminated the employment of any 
     other employee or otherwise reduced the employer's workforce 
     in order to fill the vacancy so created with a client.
       ``(2) Enforcing anti-displacement protections.--
       ``(A) Grievance procedure.--The State shall establish and 
     maintain (pursuant to regulations issued by the Secretary of 
     Labor) a grievance procedure for resolving complaints 
     alleging violations of any of the prohibitions or 
     requirements of paragraph (1). Such procedure shall include 
     an opportunity for a hearing and shall be completed not later 
     than 90 days from the date of the complaint, by which time 
     the complainant shall be provided a written decision by the 
     State. A decision of the State under such procedure, or a 
     failure of a State to issue a decision not later than 90 days 
     from such date, may be appealed to the Secretary of Labor, 
     who shall investigate the allegations contained in the 
     complaint and make a determination not later than 60 days 
     from the date of the appeal as to whether a violation of such 
     prohibitions or requirements has occurred. Remedies shall 
     include termination or suspension of payments, prohibition of 
     the placement of the client, reinstatement of an employee, 
     and other relief to make an aggrieved employee whole.
       ``(B) Other laws or contracts.--Nothing in subparagraph (A) 
     shall be construed to prohibit a complainant from pursuing a 
     remedy authorized under another Federal, State, or local law 
     or a contract or collective bargaining agreement for a 
     violation of any of the prohibitions or requirements of 
     paragraph (1).

                    ``Subpart 2--Program Performance

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

       ``(a) Work Performance Rates.--
       ``(1) Requirement.--A State that operates a program under 
     this part shall achieve a work performance rate for the 
     following fiscal years of not less than the following 
     percentages:
       ``(A) 20 percent for fiscal year 1997.
       ``(B) 25 percent for fiscal year 1998.
       ``(C) 30 percent for fiscal year 1999.
       ``(D) 35 percent for fiscal year 2000.
       ``(E) 40 percent for fiscal year 2001.
       ``(F) 50 percent for fiscal year 2002 or thereafter.
       ``(2) Work performance rate defined.--
       ``(A) In general.--As used in this subsection, the term 
     `work performance rate' means, with respect to a State and a 
     fiscal year, an amount equal to--

[[Page S8175]]

       ``(i) the sum of the average monthly number of individuals 
     eligible for temporary employment assistance under the State 
     plan approved under part A who, during the fiscal year--

       ``(I) obtain employment in an unsubsidized job and cease to 
     receive such temporary employment assistance to the extent 
     allowed under subparagraph (B);
       ``(II) work 20 or more hours per week (or 30 hours, at the 
     option of the State) in an unsubsidized job while still 
     receiving such temporary employment assistance;
       ``(III) work 20 or more hours per week (or 30 hours, at the 
     option of the State) in a subsidized job through the Work 
     First program (other than through workfare or community 
     service under section 493); or
       ``(IV) are parents under the age of 18 years (or 19 years, 
     at the option of the State) in school and regularly attending 
     classes obtaining the basic skills needed for work; divided 
     by

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

       ``(I) with an unemployment rate exceeding 8 percent; or
       ``(II) with other circumstances deemed sufficient by the 
     Secretary.

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

                    ``Subpart 3--Program Components

     ``SEC. 486. PROGRAM COMPONENTS.

       ``(a) In General.--Under the Work First program the State 
     shall have the option to provide a wide variety of work-
     related activities to clients in the temporary employment 
     assistance program under the State plan approved under part 
     A, including job placement services (including vouchers for 
     job placement services), work supplementation programs, 
     temporary subsidized job creation, assistance in establishing 
     microenterprises, and job counseling services described in 
     this subpart.
       ``(b) Job Search Activities.--Each client, who is not 
     exempt from work requirements, shall begin Work First by 
     participating in job search activities designed by the State 
     for 2 months.
       ``(c) Workfare.--If, after 2 years, a client (who is not 
     exempt from work requirements) who has signed a parent 
     empowerment contract is not working at least 20 hours a week 
     (within the meaning of section 485(a)(2)), or engaged in 
     community service, then the State shall offer that client a 
     workfare position, with minimum hours per week and tasks to 
     be determined by the State.
       ``(d) Community Service.--Not later than 2 years after the 
     date of the enactment of the Work First Act of 1996, each 
     State should (and not later than 7 years after such date, 
     each State shall) require a client who, after receiving 
     assistance for 3 months--
       ``(1) is not exempt from work requirements; and
       ``(2) is not either--
       ``(A) working at least 20 hours a week (within the meaning 
     of section 485(a)(2)); nor
       ``(B) engaged in an education or training program;

     to participate in community service, with minimum hours per 
     week and tasks to be determined by the State.

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

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

[[Page S8176]]

     that the State is not achieving an adequate rate of success 
     for such State.

     ``SEC. 488. REVAMPED JOBS PROGRAM.

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

     ``SEC. 489. TEMPORARY SUBSIDIZED JOB CREATION.

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

     ``SEC. 490. FAMILY INVESTMENT PROGRAM.

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

     ``SEC. 491. MICROENTERPRISE.

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

     ``SEC. 492. WORK SUPPLEMENTATION PROGRAM.

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

     ``SEC. 493. WORKFARE AND COMMUNITY SERVICE.

       ``(a) In General.--A State through the Work First program 
     may establish and carry out--
       ``(1) a workfare program in accordance with section 486(c); 
     and
       ``(2) a community service program in accordance with 
     section 486(d),

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

                          ``Subpart 4--Funding

     ``SEC. 495. FUNDING.

       ``(a) Funding for Work First.--
       ``(1) In general.--Each State that is operating a program 
     in accordance with this part shall be entitled to payments 
     under subsection (b) for any fiscal year in an amount equal 
     to the sum of the applicable percentages (specified in such 
     subsection) of its expenditures to carry out such program 
     (subject to limitations prescribed by or pursuant to this 
     part or this section on expenditures that may be included for 
     purposes of determining payments under subsection (b)), but 
     such payments for any fiscal year in the case of any State 
     may not exceed the limitation determined under paragraph (2) 
     with respect to the State.
       ``(2) Limitation.--The limitation determined under this 
     paragraph with respect to a State for any fiscal year is the 
     amount that bears the same ratio to the amount specified in 
     paragraph (3) for such fiscal year as the average monthly 
     number of adult recipients (as defined in paragraph (6)) in 
     the State in the preceding fiscal year bears to the average 
     monthly number of such recipients in all the States for such 
     preceding year.
       ``(3) Amount specified.--Subject to paragraphs (4) and (5), 
     the amount specified in this paragraph is--
       ``(A) $1,010,000,000 for fiscal year 1997;
       ``(B) $1,100,000,000 for fiscal year 1998;
       ``(C) $1,330,000,000 for fiscal year 1999;
       ``(D) $1,520,000,000 for fiscal year 2000;
       ``(E) $1,870,000,000 for fiscal year 2001; and
       ``(F) $2,720,000,000 for fiscal year 2002.
       ``(4) Indian tribal governments.--
       ``(A) Application.--
       ``(i) In general.--An Indian tribe or Alaska Native 
     organization may apply at any time to the Secretary (in such 
     manner as the Secretary prescribes) to conduct a Work First 
     program.
       ``(ii) Participation.--If a tribe or organization chooses 
     to apply and the application is approved, such tribe or 
     organization shall be entitled to a direct payment in the 
     amount determined in accordance with the provisions of 
     subparagraph (B) for each fiscal year beginning after such 
     approval.
       ``(iii) No participation.--If a tribe or organization 
     chooses not to apply, the amount that would otherwise be 
     available to such tribe or organization for the fiscal year 
     shall be payable to the State in which that tribe or 
     organization is located. Such amount shall be used by that 
     State to provide Work First program services to the 
     recipients living within that tribe or organization's 
     jurisdiction.
       ``(iv) No match required.--Indian tribes and Alaska Native 
     organizations shall not be required to submit a monetary 
     match to receive a payment under this paragraph.
       ``(B) Payment amount.--
       ``(i) In general.--The Secretary shall pay directly to each 
     Indian tribe or Alaska Native organization conducting a Work 
     First program for a fiscal year an amount which bears the 
     same ratio to 3 percent of the amount specified under 
     paragraph (3) for such fiscal year as the adult Indian or 
     Alaska Native population receiving temporary employment 
     assistance residing within the area to be served by the tribe 
     or organization bears to the total of such adults receiving 
     such assistance residing within all areas which any such 
     tribe or organization could serve.
       ``(ii) Adjustments.--The Secretary shall from time to time 
     review the components of the ratios established in clause (i) 
     to determine whether the individual payments under this 
     paragraph continue to reflect accurately the distribution of 
     population among the grantees, and shall make adjustments 
     necessary to maintain the correct distribution of funding.
       ``(C) Use in succeeding fiscal year.--A grantee under this 
     paragraph may use not to exceed 20 percent of the amount for 
     the fiscal year under subparagraph (B) to carry out the Work 
     First program in the succeeding fiscal year.
       ``(D) Voluntary termination.--An Indian tribe or Alaska 
     Native organization may voluntarily terminate its Work First 
     program. The amount under subparagraph (B) with respect to 
     such program for the fiscal year shall be payable to the 
     State in which that tribe or organization is located. Such 
     amount shall be used by that State to provide Work First 
     program services to the recipients living within that tribe 
     or organization's jurisdiction. If a voluntary termination of 
     a Work First program occurs under this subparagraph, the 
     tribe or organization shall not be eligible to submit an 
     application under this paragraph before the 6th year 
     following such termination.
       ``(E) Joint programs.--An Indian tribe or Alaska Native 
     organization may also apply to the Secretary jointly with 1 
     or more such tribes or organizations to administer a Work 
     First program as a consortium. The Secretary shall establish 
     such terms and conditions for such consortium as are 
     necessary.

[[Page S8177]]

       ``(5) Job creation.--Of the amount specified under 
     paragraph (3), 5 percent shall be set aside by the Secretary 
     for the program described in section 203(b) of the Work First 
     Act of 1996.
       ``(6) Definition.--For purposes of this subsection, the 
     term `adult recipient' in the case of any State means an 
     individual other than a needy child (unless such child is the 
     custodial parent of another needy child) whose needs are met 
     (in whole or in part) with payments of temporary employment 
     assistance.
       ``(b) State Allocations.--
       ``(1) In general.--The Secretary shall pay to each State 
     that is operating a program in accordance with part F, with 
     respect to expenditures by the State to carry out such 
     program (including expenditures for child care under section 
     405(b), but only with respect to a State to which section 
     1108 applies), an amount equal to--
       ``(A) with respect to so much of such expenditures in a 
     fiscal year as do not exceed the State's expenditures in the 
     fiscal year 1987 with respect to which payments were made to 
     such State from its allotment for such fiscal year pursuant 
     to part C of this title as then in effect, 90 percent; and
       ``(B) with respect to so much of such expenditures in a 
     fiscal year as exceed the amount described in subparagraph 
     (A)--
       ``(i) 50 percent, in the case of expenditures for 
     administrative costs (including costs of emergency 
     assistance) made by a State in operating such program for 
     such fiscal year (other than the costs of transportation and 
     the personnel costs for case management staff employed full-
     time in the operation of such program); and
       ``(ii) the Federal medical assistance percentage (as 
     defined in section 1905(b)), in the case of expenditures made 
     by a State in operating such program for such fiscal year 
     (other than for costs described in clause (i)).
       ``(2) Form of payment.--With respect to the amount for 
     which payment is made to a State under paragraph (1)(A), the 
     State's expenditures for the costs of operating such program 
     may be in cash or in kind, fairly evaluated.
       ``(3) Use of funds.--A State may use amounts allocated 
     under this subsection for all costs deemed necessary to 
     assist program clients obtain and retain jobs, including 
     emergency day care assistance or sick day care assistance, 
     uniforms, eyeglasses, transportation, wage subsidies, and 
     other employment-related special needs, as defined by the 
     State. Such assistance may be provided through contract with 
     community-based family resource programs under title II of 
     the Child Abuse Prevention and Treatment Act (42 U.S.C. 5116 
     et seq.).''.
       (b) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by subsection (a) shall be 
     effective with respect to calendar quarters beginning on or 
     after October 1, 1996.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the requirements imposed by the 
     amendment made by subsection (a), the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendment before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
       (3) State option to accelerate applicability.--If a State 
     formally notifies the Secretary of Health and Human Services 
     that the State desires to accelerate the applicability to the 
     State of the amendment made by subsection (a), the amendment 
     shall apply to the State on and after such earlier date as 
     the State may select.
       (4) Authority of the secretary of health and human services 
     to delay applicability to a state.--Subject to the funding 
     limitation described in paragraph (5), if a State formally 
     notifies the Secretary of Health and Human Services that the 
     State desires to delay the applicability to the State of the 
     amendment made by subsection (a), the amendment (other than 
     section 495 of such amendment) shall apply to the State on 
     and after any later date agreed upon by the Secretary and the 
     State.
       (5) Limitation on obligation authority under old program.--
     The Secretary of Health and Human Services is not authorized 
     to enter into any obligation with any State under part F of 
     title IV of the Social Security Act (42 U.S.C. 681 et seq.) 
     (as in effect on the day before the date of the enactment of 
     this Act) for expenses incurred under such a State plan under 
     such part (as so in effect) on or after October 1, 1996.

     SEC. 202. CONSOLIDATION AND STREAMLINING OF SERVICES.

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

     SEC. 203. JOB CREATION.

       (a) Grants to Community-Based Organizations.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') may make 
     grants in accordance with this subsection using funds 
     described in paragraph (2), and, to the extent allowed by the 
     States, Work First funds under part F of title IV of the 
     Social Security Act, to community-based organizations that 
     move clients of temporary employment assistance under a State 
     plan approved under part A of title IV of the Social Security 
     Act or under other public assistance programs into private 
     sector work.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for fiscal year 1996 and $50,000,000 for fiscal years 1997, 
     1998, 1999, 2000, 2001, and 2002.
       (3) Eligible organizations.--The Secretary shall award 
     grants to community-based organizations that--
       (A) may receive at least 5 percent of their funding from 
     local government sources; and
       (B) move clients referred to in paragraph (1) in the 
     direction of unsubsidized private employment by integrating 
     and co-locating at least 5 of the following services--
       (i) case management;
       (ii) job training;
       (iii) child care;
       (iv) housing;
       (v) health care services;
       (vi) nutrition programs;
       (vii) life skills training; and
       (viii) parenting skills.
       (4) Awarding of grants.--
       (A) In general.--The Secretary shall award grants based on 
     the quality of applications, subject to subparagraphs (B) and 
     (C).
       (B) Preference in awarding grants.--In awarding grants 
     under this subsection, the

[[Page S8178]]

     Secretary shall give preference to organizations which 
     receive more than 50 percent of their funding from State 
     government, local government or private sources.
       (C) Distribution of grant.--The Secretary shall award at 
     least 1 grant to each State from which the Secretary received 
     an application.
       (D) Limitation on size of grant.--The Secretary shall not 
     award any grants under this subsection of more than 
     $1,000,000.
       (5) Issuance of regulations.--Not less than 6 months after 
     the date of the enactment of this subsection, the Secretary 
     shall prescribe such regulations as may be necessary to 
     implement this subsection.
       (b) Grants To Expand the Number of Job Opportunities 
     Available to Certain Low-Income Individuals.--
       (1) In general.--The Secretary shall enter into agreements 
     with nonprofit organizations (including community development 
     corporations) submitting applications under this subsection 
     for the purpose of conducting projects in accordance with 
     paragraph (2) and funded under section 495(a)(5) to create 
     employment opportunities for certain low-income individuals.
       (2) Nature of project.--
       (A) In general.--Each nonprofit organization conducting a 
     project under this subsection shall provide technical and 
     financial assistance to private employers in the community to 
     assist such employers in creating employment and business 
     opportunities for those individuals eligible to participate 
     in the projects as described in this paragraph.
       (B) Nonprofit organizations.--For purposes of this 
     subsection, a nonprofit organization is any organization 
     (including a community development corporation) exempt from 
     taxation under section 501(a) of the Internal Revenue Code of 
     1986 by reason of paragraph (3) or (4) of section 501(c) of 
     such Code.
       (C) Eligible low-income individuals.--For purposes of this 
     subsection, a low-income individual eligible to participate 
     in a project conducted under this subsection is any 
     individual eligible to receive temporary employment 
     assistance under part A of title IV of the Social Security 
     Act (as added by section 101 of this Act) and any other 
     individual whose income level does not exceed 100 percent of 
     the poverty line (as such term is defined in section 673(2) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)), including any revision required by such section).
       (3) Content of applications; selection priority.--
       (A) Content of applications.--Each nonprofit organization 
     submitting an application under this subsection shall, as 
     part of such application, describe--
       (i) the technical and financial assistance that will be 
     made available under the project conducted under this 
     subsection;
       (ii) the geographic area to be served by the project;
       (iii) the percentage of low-income individuals (as 
     described in paragraph (2)(C)) and individuals receiving 
     temporary employment assistance under title IV of the Social 
     Security Act (as so added) in the area to be served by the 
     project; and
       (iv) unemployment rates in the geographic areas to be 
     served and (to the extent practicable) the jobs available and 
     skills necessary to fill those vacancies in such areas.
       (B) Selection priority.--In approving applications under 
     this subsection, the Secretary shall give priority to 
     applications proposing to serve those areas containing the 
     highest percentage of individuals receiving temporary 
     employment assistance under title IV of such Act (as so 
     added).
       (4) Administration.--Each nonprofit organization 
     participating in a project conducted under this subsection 
     shall provide assurances in its agreement with the Secretary 
     that the organization has or will have a cooperative 
     relationship with the agency responsible for administering 
     the Work First program (as provided for under part F of title 
     IV of the Social Security Act, as added by section 201 of 
     this Act) in the area served by the project.

     SEC. 204. COMMUNITY STEERING COMMITTEES DEMONSTRATION 
                   PROJECTS.

       (a) In General.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     enter into agreements with not more than 5 States that submit 
     an application under this section, in such form and such 
     manner as the Secretary may specify, for the purpose of 
     conducting a demonstration project described in subsection 
     (b).
       (b) Description of Project.--
       (1) Community steering committees.--
       (A) Establishment.--A demonstration project conducted under 
     this section shall establish within a State in each 
     participating county a Community Steering Committee that 
     shall be designed to help recipients of temporary employment 
     assistance who are parents move into the non-subsidized 
     workforce and to develop a holistic approach to the 
     development needs of such recipient's family.
       (B) Membership.--A Community Steering Committee shall 
     consist of local educators, business representatives, and 
     social service providers.
       (C) Goals and duties.--
       (i) Goals.--The goals of a Community Steering Committee 
     are--

       (I) to ensure that recipients of temporary employment 
     assistance who are parents obtain and retain unsubsidized 
     employment; and
       (II) to reduce the incidence of intergenerational receipt 
     of welfare assistance by addressing the needs of children of 
     recipients of temporary employment assistance.

       (ii) Duties.--A Community Steering Committee shall--

       (I) identify and create unsubsidized employment positions 
     for recipients of temporary employment assistance;
       (II) propose and implement solutions to barriers to 
     unsubsidized employment of recipients of temporary employment 
     assistance;
       (III) assess the needs of children of recipients of 
     temporary employment assistance; and
       (IV) provide services that are designed to ensure that 
     children of recipients of temporary employment assistance 
     enter school ready to learn and that, once enrolled, such 
     children stay in school.

       (iii) Primary responsibility.--A primary responsibility of 
     a Community Steering Committee shall be to work on an ongoing 
     basis with parents who are recipients of temporary employment 
     assistance and who have obtained nonsubsidized employment in 
     order to ensure that such recipients retain their employment. 
     Activities to carry out this responsibility may include--

       (I) counseling;
       (II) emergency day care;
       (III) sick day care;
       (IV) transportation;
       (V) provision of clothing;
       (VI) housing assistance; or
       (VII) any other assistance that may be necessary on an 
     emergency and temporary basis to ensure that such parents can 
     manage the responsibility of being employed and the demands 
     of having a family.

       (iv) Follow-up services for children.--A Community Steering 
     Committee may provide special follow-up services for children 
     of recipients of temporary employment assistance that are 
     designed to ensure that the children reach their fullest 
     potential and do not, as they mature, receive welfare 
     assistance as the head of their own household.
       (2) Funding.--Notwithstanding the provisions of section 
     495(b)(1)(B)(i), a State county that has a Community Steering 
     Committee shall receive reimbursement under such section for 
     expenditures of the Committee in an amount equal to the 
     Federal medical assistance percentage (as defined in section 
     1905(b)) for such State, plus 10 percentage points.
       (c) Report.--Not later than October 1, 2001, the Secretary 
     shall submit a report to the Congress on the results of the 
     demonstration projects conducted under this section.
                       TITLE III--SUPPORTING WORK

     SEC. 301. ELIGIBILITY FOR MEDICAID BENEFITS.

       (a) Transitional Eligibility for Certain Children.--
       (1) In general.--Part A of title IV, as added by section 
     101(a) is amended by adding at the end the following new 
     section:

     ``SEC. 417. TRANSITIONAL ELIGIBILITY FOR MEDICAID.

       ``Each needy child, and each relative with whom such a 
     child is living (including the spouse of such relative), who 
     becomes ineligible for temporary employment assistance as a 
     result (wholly or partly) of the collection or increased 
     collection of child or spousal support under part D of this 
     title, and who has received such assistance in at least 3 of 
     the 6 months immediately preceding the month in which such 
     ineligibility begins, shall be deemed to be a recipient of 
     temporary employment assistance for purposes of title XIX for 
     an additional 4 calendar months beginning with the month in 
     which such ineligibility begins.''.
       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendment made by this section shall apply to calendar 
     quarters beginning on or after October 1, 1996, without 
     regard to whether final regulations to carry out such 
     amendments have been promulgated by such date.
       (B) When state legislation is required.--In the case of a 
     State plan for medical assistance under title XIX of the 
     Social Security Act which the Secretary of Health and Human 
     Services determines requires State legislation (other than 
     legislation appropriating funds) in order for the plan to 
     meet the additional requirements imposed by the amendments 
     made by this section, the State plan shall not be regarded as 
     failing to comply with the requirements of such title solely 
     on the basis of its failure to meet these additional 
     requirements before the first day of the first calendar 
     quarter beginning after the close of the first regular 
     session of the State legislature that begins after the date 
     of the enactment of this Act. For purposes of the previous 
     sentence, in the case of a State that has a 2-year 
     legislative session, each year of such session shall be 
     deemed to be a separate regular session of the State 
     legislature.
       (b) Continued Application of Current Standards Under the 
     Medicaid Program.--
       (1) In general.--Title XIX of the Social Security Act is 
     amended--
       (A) by redesignating section 1931 as section 1932; and
       (B) by inserting after section 1930 the following new 
     section:


      ``continued application of certain methodology and standards

       ``Sec. 1931. (a) Application to this Title.--

[[Page S8179]]

       ``(1) In general.--For purposes of applying this title on 
     and after October 1, 1996, notwithstanding any other 
     provision of this Act but subject to subsection (b), with 
     respect to a State--
       ``(A) except as provided in subparagraphs (B) and (C), any 
     reference in this title (or any other provision of law in 
     relation to the operation of this title) to a provision of 
     part A of title IV, or a State plan under such part, shall be 
     considered a reference to such provision or plan as in effect 
     as of May 1, 1996;
       ``(B) individuals shall be deemed to be receiving aid or 
     assistance under a State plan approved under part A of title 
     IV if they meet--
       ``(i) the income and resource standards, and the 
     methodology for determining eligibility for assistance 
     applicable under such plan, as of May 1, 1996; and
       ``(ii) the eligibility requirements of such State plan that 
     correspond to the requirements of subsections (a), (b), and 
     (c) of section 406, section 402(a)(42), and section 407 of 
     part A of title IV, as such sections were in effect as of May 
     1, 1996; and
       ``(C) any reference in section 1902(a)(5) or 1925 to a 
     State plan approved under part A of title IV shall be deemed 
     to be a reference to a State program funded under such part, 
     as in effect on and after October 1, 1996.
       ``(2) State option for lower standards.--In applying clause 
     (i) of paragraph (1)(B), a State may lower the income and 
     resource standards applicable under the State plan under part 
     A of title IV so long as such standards are not less than the 
     standards in effect under the State plan under such part of 
     such title on May 1, 1988. A State may elect to use less 
     restrictive income and resource standards or methodologies 
     under such State plan.
       ``(3) State option regarding separate medicaid application 
     for tea recipients.--In the case of an individual who is 
     determined to be eligible for temporary employment assistance 
     under a State plan under part A of title IV, as in effect on 
     and after October 1, 1996, a State may, at its option, use 
     such individual's application for temporary employment 
     assistance to determine such individual's eligibility for 
     medical assistance under the State plan under this title.
       ``(b) Application to Waivers.--In the case of a waiver of a 
     provision of part A of title IV in effect with respect to a 
     State as of May 1, 1996, if the waiver affects eligibility of 
     individuals for medical assistance under this title, such 
     waiver may (but need not) continue to be applied, at the 
     option of the State, in relation to this title after the date 
     the waiver would otherwise expire. If a State elects not to 
     continue to apply such a waiver, then, after the date of the 
     expiration of the waiver, subsection (a) shall be applied as 
     if any provisions so waived had not been waived.''.
       (2) Plan amendment.--Section 1902(a) of such Act (42 U.S.C. 
     1396a(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (61),
       (B) by striking the period at the end of paragraph (62) and 
     inserting ``; and'', and
       (C) by inserting after paragraph (62) the following new 
     paragraph:
       ``(63) provide for administration and determinations of 
     eligibility with respect to individuals who are (or seek to 
     be) eligible for medical assistance based on the application 
     of section 1931.''.
       (c) Repeal of Sunset on Transitional Work Provisions.--
     Subsection (f) of section 1925 of such Act (42 U.S.C. 1396r-
     6(f)) is repealed.
       (d) Effective Date.--The amendments made by this section 
     shall apply to medical assistance furnished for calendar 
     quarters beginning on or after October 1, 1996.

     SEC. 302. CONSOLIDATED CHILD CARE DEVELOPMENT BLOCK GRANT.

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

     ``SEC. 658B. APPROPRIATION.

       ``(a) Authorization of Appropriations of Block Grant 
     Funds.--For the purpose of providing child care services for 
     eligible children through the awarding of grants to States 
     under this subchapter (other than the grants awarded under 
     subsection (b)) by the Secretary, there are authorized to be 
     appropriated, $1,000,000,000 for each of the fiscal years 
     1996 through 2002.
       ``(b) Appropriations of Federal Matching Funds.--For the 
     purpose of providing child care services for eligible 
     children through the awarding of matching grants to States 
     under section 658J(d) by the Secretary, there are authorized 
     to be appropriated and are hereby appropriated, 
     $2,000,000,000 for fiscal year 1997, $2,250,000,000 for 
     fiscal year 1998, $2,500,000,000 for fiscal year 1999, 
     $2,800,000,000 for fiscal year 2000, $3,150,000,000 for 
     fiscal year 2001, and $3,300,000,000 for fiscal year 2002.''.
       (2) Use of funds.--Section 658E(c)(3)(B) of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(3)(B)) is amended--
       (A) in clause (i), by striking ``with very low family 
     incomes (taking into consideration family size)'' and 
     inserting ``described in clause (ii) (in the order so 
     described)'';
       (B) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and realigning the margins 
     accordingly;
       (C) by striking ``Subject'' and inserting the following:
       ``(i) In general.--Subject''; and
       (D) by adding at the end the following new clause:
       ``(ii) Families described.--The families described in this 
     clause are the following:

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

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

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

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

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

       (3) Set-asides for quality and expansion.--Section 
     658E(c)(3) of the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858c(c)(3))--
       (A) in subparagraph (C), by striking ``25 percent'' and 
     inserting ``10 percent''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) Expansion of child care.--The State shall reserve not 
     less than 10 percent of the amount provided to the State and 
     available for providing services under this subchapter, to 
     provide for the expansion of child care facilities available 
     to support working families residing in the State.''.
       (4) Sliding fee scale.--Section 658E(c)(5) of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(5)) is amended by inserting ``described in 
     subclauses (II) and (III) of paragraph (3)(B)(ii)'' after 
     ``families''.
       (5) Matching requirement for new funds.--
       (A) In general.--Section 658J of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858h) is 
     amended by adding at the end the following new subsections:
       ``(d) Matching Requirement for Certain New Funds.--
       ``(1) Amount of federal payment.--Subject to paragraph (2), 
     the Secretary shall make quarterly payments to each State 
     that has an application approved under section 658E(d) in an 
     amount equal to the Federal medical assistance percentage (as 
     defined in section 1905(b)) of the total amount expended 
     during the quarter under the State plan in excess of the 
     State's quarterly allotment under section 658O.
       ``(2) Limitation.--
       ``(A) In general.--Payments under this subsection to a 
     State for any fiscal year may not exceed the limitation 
     determined under subparagraph (B) with respect to the State.
       ``(B) Limitation determined.--The limitation determined 
     under this subparagraph with respect to a State for any 
     fiscal year is the amount that bears the same ratio to the 
     amount specified in subparagraph (C) as the amount allotted 
     to the State under 658O bears to the amount allotted to all 
     States (after reserving the amount for Indian tribes required 
     under section 658O(a)(2)).
       ``(C) Amount specified.--The amount specified in this 
     subparagraph is the amount appropriated for such fiscal year 
     under section 658B(b) reduced by the amount reserved for 
     Indian tribes under subsection (e).
       ``(D) Limitation raised.--If the limitation determined 
     under subparagraph (A) with respect to a State for a fiscal 
     year exceeds the amount paid to the State under this 
     subsection for the fiscal year, the limitation determined 
     under this paragraph with respect to the State for the 
     immediately succeeding fiscal year shall be increased by the 
     amount of such excess.
       ``(3) Form of payment.--With respect to the amount for 
     which payment is made to a State under paragraph (1), the 
     State's expenditures for the costs of operating such programs 
     may be in cash or in kind, fairly evaluated.

[[Page S8180]]

       ``(4) Method of computation and payment.--The method of 
     computing and paying amounts under paragraph (1) shall be as 
     follows:
       ``(A) Amount based on estimate.--The Secretary shall, prior 
     to the beginning of each quarter, estimate the amount to be 
     paid to the State for such quarter under paragraph (1), such 
     estimate to be based on--
       ``(i) a report filed by the State containing its estimate 
     of the total sum to be expended in such quarter in accordance 
     with the provisions of such paragraph and stating the amount 
     appropriated or made available by the State and its political 
     subdivisions for such expenditures in such quarter, and if 
     such amount is less than the State's proportionate share of 
     the total sum of such estimated expenditures, the source or 
     sources from which the difference is expected to be derived; 
     and
       ``(ii) such other information as the Secretary may find 
     necessary.
       ``(B) Reduction or increase.--The Secretary shall reduce or 
     increase the amount to be paid, as the case may be, by any 
     sum by which the Secretary finds that the estimate for any 
     prior quarter was greater or less than the amount which 
     should have been paid to the State for such quarter, except 
     that such increases or reductions shall not be made to the 
     extent that such sums have been applied to make the amount 
     certified for any prior quarter greater or less than the 
     amount estimated by the Secretary for such prior quarter.
       ``(e) Amounts Reserved for Indian Tribes.--The Secretary 
     shall reserve not more than 3 percent of the amount 
     appropriated under section 658B(b) in each fiscal year for 
     payments to Indian tribes and tribal organizations with 
     applications approved under section 658O(c). The amounts 
     reserved under the prior sentence shall be available to make 
     grants to or enter into contracts with Indian tribes or 
     tribal organizations consistent with section 658O(c) without 
     a requirement of matching funds by the Indian tribes or 
     tribal organizations.
       ``(f) Same Treatment as Allotments.--Amounts paid to a 
     State or Indian tribe under subsections (d) and (e) shall be 
     subject to the same requirements under this subchapter as 
     amounts paid from the allotment under section 658O.''.
       (B) Conforming amendments.--Section 658O of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (i) in subsection (a)--

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

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

     SEC. 401. SUPERVISED LIVING ARRANGEMENTS FOR MINORS.

       Section 402(c), as added by section 101(a), is amended by 
     adding at the end the following new paragraph:
       ``(8) Supervised living arrangements for minors.--The State 
     plan shall provide that--
       ``(A) except as provided in subparagraph (B), in the case 
     of any individual who is under age 18 and has never married, 
     and who has a needy child in his or her care (or is pregnant 
     and is eligible for temporary employment assistance under the 
     State plan)--
       ``(i) such individual may receive such assistance for the 
     individual and such child (or for herself in the case of a 
     pregnant woman) only if such individual and child (or such 
     pregnant woman) reside in a place of residence maintained by 
     a parent, legal guardian, or other adult relative of such 
     individual as such parent's, guardian's, or adult relative's 
     own home; and
       ``(ii) such assistance (where possible) shall be provided 
     to the parent, legal guardian, or other adult relative on 
     behalf of such individual and child; and
       ``(B)(i) in the case of an individual described in clause 
     (ii)--
       ``(I) the State agency shall assist such individual in 
     locating an appropriate adult-supervised supportive living 
     arrangement taking into consideration the needs and concerns 
     of the individual, unless the State agency determines that 
     the individual's current living arrangement is appropriate, 
     and thereafter shall require that the individual (and child, 
     if any) reside in such living arrangement as a condition of 
     the continued receipt of assistance under the plan (or in an 
     alternative appropriate arrangement, should circumstances 
     change and the current arrangement cease to be appropriate), 
     or
       ``(II) if the State agency is unable, after making diligent 
     efforts, to locate any such appropriate living arrangement, 
     the State agency shall provide for comprehensive case 
     management, monitoring, and other social services consistent 
     with the best interests of the individual (and child) while 
     living independently (as determined by the State agency); and
       ``(ii) for purposes of clause (i), an individual is 
     described in this clause if--
       ``(I) such individual has no parent or legal guardian of 
     his or her own who is living and whose whereabouts are known;
       ``(II) no living parent or legal guardian of such 
     individual allows the individual to live in the home of such 
     parent or guardian;
       ``(III) the State agency determines that the physical or 
     emotional health of such individual or any needy child of the 
     individual would be jeopardized if such individual and such 
     needy child lived in the same residence with such 
     individual's own parent or legal guardian; or
       ``(IV) the State agency otherwise determines (in accordance 
     with regulations issued by the Secretary) that it is in the 
     best interest of the needy child to waive the requirement of 
     subparagraph (A) with respect to such individual.''.

     SEC. 402. REINFORCING FAMILIES.

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

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

       ``(a) Entitlement.--
       ``(1) In general.--In addition to any payment under 
     sections 2002 and 2007, beginning with fiscal year 1996, each 
     State shall be entitled to funds under this section for each 
     fiscal year for the establishment, operation, and support of 
     adult-supervised group homes for custodial parents under age 
     18 (or age 19, at the option of the State) and their 
     children.
       ``(2) Payment to states.--
       ``(A) In general.--Each State shall be entitled to payment 
     under this section for each fiscal year in an amount equal to 
     its allotment (determined in accordance with subsection (b)) 
     for such fiscal year, to be used by such State for the 
     purposes set forth in paragraph (1).
       ``(B) Transfers of funds.--The Secretary shall make 
     payments in accordance with section 6503 of title 31, United 
     States Code, to each State from its allotment for use under 
     this title.
       ``(C) Use.--Payments to a State from its allotment for any 
     fiscal year must be expended by the State in such fiscal year 
     or in the succeeding fiscal year.
       ``(D) Technical assistance.--A State may use a portion of 
     the amounts described in subparagraph (A) for the purpose of 
     purchasing technical assistance from public or private 
     entities if the State determines that such assistance is 
     required in developing, implementing, or administering the 
     program funded under this section.
       ``(3) Adult-supervised group home.--For purposes of this 
     section, the term `adult-supervised group home' means an 
     entity that provides custodial parents under age 18 (or age 
     19, at the option of the State) and their children with a 
     supportive and supervised living arrangement in which such 
     parents are required to learn parenting skills, including 
     child development, family budgeting,

[[Page S8181]]

     health and nutrition, and other skills to promote their long-
     term economic independence and the well-being of their 
     children. An adult-supervised group home may also serve as a 
     network center for other supportive services that are 
     available in the community.
       ``(b) Allotment.--
       ``(1) Certain jurisdictions.--The allotment for any fiscal 
     year to each of the jurisdictions of Puerto Rico, Guam, the 
     Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to the 
     amount specified under paragraph (3) as the allotment that 
     the jurisdiction receives under section 2003(a) for the 
     fiscal year bears to the total amount specified for such 
     fiscal year under section 2003(c).
       ``(2) Other states.--The allotment for any fiscal year for 
     each State other than the jurisdictions of Puerto Rico, Guam, 
     the Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to--
       ``(A) the amount specified under paragraph (3), reduced by
       ``(B) the total amount allotted to those jurisdictions for 
     that fiscal year under paragraph (1),

     as the allotment that the State receives under section 
     2003(b) for the fiscal year bears to the total amount 
     specified for such fiscal year under section 2003(c).
       ``(3) Amount specified.--The amount specified for purposes 
     of paragraphs (1) and (2) shall be $30,000,000 for fiscal 
     year 1997 and each subsequent fiscal year.
       ``(c) Local Involvement.--Each State shall seek local 
     involvement from the community in any area in which an adult-
     supervised group home receiving funds pursuant to this 
     section is to be established. In determining criteria for 
     targeting funds received under this section, each State shall 
     evaluate the community's commitment to the establishment and 
     planning of the home.
       ``(d) Limitations on the Use of Funds.--
       ``(1) Construction.--Except as provided in paragraph (2), 
     funds made available under this section may not be used by 
     the State, or any other person with which the State makes 
     arrangements to carry out the purposes of this section, for 
     the purchase or improvement of land, or the purchase, 
     construction, or permanent improvement (other than minor 
     remodeling) of any building or other facility.
       ``(2) Waiver.--The Secretary may waive the limitation 
     contained in paragraph (1) upon the State's request for such 
     a waiver if the Secretary finds that the request describes 
     extraordinary circumstances to justify the waiver and that 
     permitting the waiver will contribute to the State's ability 
     to carry out the purposes of this section.
       ``(e) Treatment of Indian Tribes.--
       ``(1) In general.--An Indian tribe may apply to the 
     Secretary to establish, operate, and support adult-supervised 
     group homes for custodial parents under age 18 (or age 19, at 
     the option of the State) and their children in accordance 
     with an application procedure to be determined by the 
     Secretary. Except as otherwise provided in this subsection, 
     the provisions of this section shall apply to Indian tribes 
     receiving funds under this subsection in the same manner and 
     to the same extent as the other provisions of this section 
     apply to States.
       ``(2) Allotment.--If the Secretary approves an Indian 
     tribe's application, the Secretary shall allot to such tribe 
     for a fiscal year an amount which the Secretary determines is 
     the Indian tribe's fair and equitable share of the amount 
     specified under paragraph (3) for all Indian tribes with 
     applications approved under this subsection (based on 
     allotment factors to be determined by the Secretary). The 
     Secretary shall determine a minimum allotment amount for all 
     Indian tribes with applications approved under this 
     subsection. Each Indian tribe with an application approved 
     under this subsection shall be entitled to such minimum 
     allotment.
       ``(3) Amount specified.--The amount specified under this 
     paragraph for all Indian tribes with applications approved 
     under this subsection is $3,000,000 for fiscal year 1997 and 
     each subsequent fiscal year.
       ``(4) Indian tribe defined.--For purposes of this section, 
     the term `Indian tribe' means any Indian tribe, band, nation, 
     pueblo, or other organized group or community, including any 
     Alaska Native entity which is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indian tribes because of their status as Indians.''.
       (b) Receipt of Payments by Adult-Supervised Group Homes.--
     Section 402(c)(8)(A)(ii), as added by section 401(a), is 
     amended by striking ``or other adult relative'' and inserting 
     ``other adult relative, or adult-supervised group home 
     receiving funds under section 2008''.
       (c) Recommendations on Use of Government Surplus 
     Property.--Not later than 6 months after the date of the 
     enactment of this Act, after consultation with the Secretary 
     of Defense, the Secretary of Housing and Urban Development, 
     and the Administrator of the General Services Administration, 
     the Secretary of Health and Human Services shall submit 
     recommendations to the Congress on the extent to which 
     surplus properties of the United States Government may be 
     used for the establishment of adult-supervised group homes 
     receiving funds under section 2008 of the Social Security 
     Act, as added by this section.

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

       (a) In General.--Section 403(b)(4), as added by section 
     101(a), is amended--
       (1) by inserting ``(A)'' after ``(4)''; and
       (2) by inserting at the end the following new subparagraph:
       ``(B) In the case of a client who is a custodial parent who 
     is under age 18 (or age 19, at the option of the State), has 
     not successfully completed a high-school education (or its 
     equivalent), and is required to participate in the Work First 
     program (including an individual who would otherwise be 
     exempt from participation in the program), provides that--
       ``(i) such parent participate in--
       ``(I) educational activities directed toward the attainment 
     of a high school diploma or its equivalent on a full-time (as 
     defined by the educational provider) basis; or
       ``(II) an alternative educational or training program on a 
     full-time (as defined by the provider) basis; and
       ``(ii) child care be provided in accordance with section 
     405(b) with respect to the family.''.
       (b) State Option To Provide Additional Incentives and 
     Penalties to Encourage Teen Parents to Complete High School 
     and Participate in Parenting Activities.--
       (1) State plan.--Section 403(b)(4), as amended by 
     subsection (a), is amended by inserting after subparagraph 
     (B) the following new subparagraph:
       ``(C) At the option of the State, provides that the client 
     who is a custodial parent or pregnant woman who is under age 
     19 (or age 21, at the option of the State) participate in a 
     program of monetary incentives and penalties which--
       ``(i) may, at the option of the State, require full-time 
     participation by such custodial parent or pregnant woman in 
     secondary school or equivalent educational activities, or 
     participation in a course or program leading to a skills 
     certificate found appropriate by the State agency or 
     parenting education activities (or any combination of such 
     activities and secondary education);
       ``(ii) shall require that the needs of such custodial 
     parent or pregnant woman be reviewed and the program assure 
     that, either in the initial development or revision of such 
     individual's parent empowerment contract, there will be 
     included a description of the services that will be provided 
     to the client and the way in which the program and service 
     providers will coordinate with the educational or skills 
     training activities in which the client is participating;
       ``(iii) shall provide monetary incentives (to be treated as 
     assistance under the State plan) for more than minimally 
     acceptable performance of required educational activities;
       ``(iv) shall provide penalties (which may be those required 
     by subsection (c) or, with the approval of the Secretary, 
     other monetary penalties that the State finds will better 
     achieve the objectives of the program) for less than 
     minimally acceptable performance of required activities;
       ``(v) shall provide that when a monetary incentive is 
     payable because of the more than minimally acceptable 
     performance of required educational activities by a custodial 
     parent, the incentive be paid directly to such parent, 
     regardless of whether the State agency makes payment of 
     assistance under the State plan directly to such parent; and
       ``(vi) for purposes of any other Federal or federally-
     assisted program based on need, shall not consider any 
     monetary incentive paid under this subsection as income in 
     determining a family's eligibility for or amount of benefits 
     under such program, and if assistance is reduced by reason of 
     a penalty under this subparagraph, such other program shall 
     treat the family involved as if no such penalty has been 
     applied.''.

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

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

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

       (a) In General.--Section 406(e), as added by section 
     101(a), is amended to read as follows:
       ``(e) Out-of-Wedlock and Teen Pregnancy Programs.--
       ``(1) Out-of-wedlock pregnancies.--The State plan shall 
     provide for the development of a program to reduce the 
     incidence of out-of-wedlock pregnancies, which may include 
     providing unmarried mothers and unmarried fathers with 
     services which will help them--
       ``(A) avoid subsequent pregnancies, and
       ``(B) provide adequate care to their children.
       ``(2) Teen pregnancies.--
       ``(A) In general.--The State plan shall provide that the 
     State agency may, to the extent it determines resources are 
     available, provide for the operation of projects to reduce 
     teenage pregnancy. Such projects shall be operated by 
     eligible entities that have

[[Page S8182]]

     submitted applications described in subparagraph (C) that 
     have been approved in accordance with subparagraph (D).
       ``(B) Eligible entities.--For purposes of this paragraph, 
     the term `eligible entity' includes State agencies, local 
     agencies, publicly supported organizations, private nonprofit 
     organizations, and consortia of such entities.
       ``(C) Applications.--An application described in this 
     subparagraph shall--
       ``(i) describe the project;
       ``(ii) include an endorsement of the project by the chief 
     elected official of the jurisdiction in which the project is 
     to be located;
       ``(iii) demonstrate strong local commitment and local 
     involvement in the planning and implementation of the 
     project; and
       ``(iv) be submitted in such manner and containing such 
     information as the Secretary may require.
       ``(D) Approval.--
       ``(i) In general.--Subject to clause (ii), the chief 
     executive officer of a State may approve an application under 
     this subparagraph based on selection criteria (to be 
     determined by the chief executive officer).
       ``(ii) Preferences.--Preference in approving a project 
     shall be accorded to be projects that target--

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

       ``(E) Indian tribes.--
       ``(i) In general.--An Indian tribe may apply to the 
     Secretary to provide for the operation of projects to reduce 
     teenage pregnancy in accordance with an application procedure 
     to be determined by the Secretary. Except as otherwise 
     provided in this subparagraph, the provisions of this 
     paragraph shall apply to Indian tribes receiving funds under 
     this paragraph in the same manner and to the same extent as 
     the other provisions of this paragraph apply to States.
       ``(ii) Limitation.--The Secretary shall limit the number of 
     applications approved under this subparagraph to ensure that 
     payments under section 413(d) to Indian tribes with approved 
     applications would not result in payments of less than a 
     minimum payment amount (to be determined by the Secretary).
       ``(iii) Indian tribe defined.--For purposes of this 
     subparagraph, the term `Indian tribe' means any Indian tribe, 
     band, nation, pueblo, or other organized group or community, 
     including any Alaska Native entity which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indian tribes because of their status as 
     Indians.
       ``(F) Project length.--A project conducted under this 
     paragraph shall be conducted for not less than 3 years.
       ``(G) Study.--
       ``(i) In general.--The Secretary shall conduct a study in 
     accordance with clause (ii) to determine the relative 
     effectiveness of the different approaches for preventing 
     teenage pregnancy utilized in the projects conducted under 
     this paragraph.
       ``(ii) Requirements.--The study required under clause (i) 
     shall--

       ``(I) be based on data gathered from projects conducted in 
     5 States chosen by the Secretary from among the States in 
     which projects under this paragraph are operated;
       ``(II) use specific outcome measures (determined by the 
     Secretary) to test the effectiveness of the projects;
       ``(III) use experimental and control groups (to the extent 
     possible) that are composed of a random sample of 
     participants in the projects; and
       ``(IV) be conducted in accordance with an experimental 
     design determined by the Secretary to result in a comparable 
     design among all projects.

       ``(iii) Interim data.--Each eligible entity conducting a 
     project under this paragraph shall provide to the Secretary 
     in such form and with such frequency as the Secretary 
     requires interim data from the projects conducted under this 
     paragraph. The Secretary shall report to the Congress 
     annually on the progress of such projects and shall, not 
     later than January 1, 2003, submit to the Congress a final 
     report on the study required under clause (i).
       ``(iv) Authorization.--There are authorized to be 
     appropriated $500,000 for each of fiscal years 1997 through 
     2002 for the purpose of conducting the study required under 
     clause (i).''.
       (b) Payment.--Section 413, as added by section 101(a), is 
     amended by adding at the end the following new subsection:
       ``(d) Funding for Teen Pregnancy Projects.--
       ``(1) In general.--In addition to any payment under 
     subsection (a), each State shall be entitled to payment from 
     the Secretary for each of fiscal years 1996 through 2002 of 
     an amount equal to the lesser of--
       ``(A) 75 percent of the expenditures by the State in 
     providing for the operation of the projects under section 
     406(e)(2), and in administering the projects under such 
     section; or
       ``(B) the limitation determined under paragraph (2) with 
     respect to the State for the fiscal year.
       ``(2) Limitation.--
       ``(A) In general.--The limitation determined under this 
     paragraph with respect to a State for any fiscal year is the 
     amount that bears the same ratio to $30,000,000 as the 
     population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by such section) in the State in the second 
     preceding fiscal year bears to such population residing in 
     the United States in the second preceding fiscal year.
       ``(B) Adjustment.--If the limitation determined under 
     subparagraph (A) with respect to a State for a fiscal year 
     exceeds the amount paid to the State under this subsection 
     for the fiscal year, the limitation determined under this 
     paragraph with respect to the State for the immediately 
     succeeding fiscal year shall be increased by the amount of 
     such excess.
       ``(3) Indian tribes.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, for purposes of this subsection, an Indian tribe 
     with an application approved under section 406(e)(2)(E) shall 
     be entitled to payment from the Secretary for each of fiscal 
     years 1997 through 2002 of an amount equal to the lesser of--
       ``(i) 75 percent of the expenditures by the Indian tribe in 
     providing for the operation of the projects under section 
     406(e)(2)(E), and in administering the projects under such 
     section; or
       ``(ii) the limitation determined under subparagraph (B) 
     with respect to the Indian tribe for the fiscal year.
       ``(B) Limitation.--
       ``(i) In general.--The limitation determined under this 
     subparagraph with respect to an Indian tribe for any fiscal 
     year is the amount that bears the same ratio to $2,000,000 as 
     the population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by such section) in the Indian tribe in the second 
     preceding fiscal year bears to such population of all Indian 
     tribes with applications approved under section 406(e)(2)(E) 
     in the second preceding fiscal year.
       ``(ii) Adjustment.--If the limitation determined under 
     clause (i) with respect to an Indian tribe for a fiscal year 
     exceeds the amount paid to the Indian tribe under this 
     paragraph for the fiscal year, the limitation determined 
     under this subparagraph with respect to the Indian tribe for 
     the immediately succeeding fiscal year shall be increased by 
     the amount of such excess.
       ``(4) Use of appropriations.--Amounts appropriated for a 
     fiscal year to carry out this part shall be made available 
     for payments under this subsection for such fiscal year.''.

     SEC. 406. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

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

     SEC. 407. EFFECTIVE DATES.

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

[[Page S8183]]

            TITLE V--INTERSTATE CHILD SUPPORT RESPONSIBILITY

     SECTION 500. SHORT TITLE.

       This title may be cited as the ``Child Support Improvement 
     Act of 1996''.
     Subtitle A--Eligibility for Services; Distribution of Payments

     SEC. 501. 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 are provided 
     under the State program funded under part E of this title, or 
     (III) medical assistance is provided under the State plan 
     approved under title XIX, unless, in accordance with 
     paragraph (29), good cause and other exceptions exist;
       ``(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. 502. 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.--Subject to subsection (e), an amount 
     collected on behalf of a family as support by a State 
     pursuant to a plan approved under this part shall be 
     distributed as follows:
       ``(1) Families receiving assistance.--In the case of a 
     family receiving assistance from the State, the State shall--
       ``(A) pay to the Federal Government the Federal share of 
     the amount so collected; and
       ``(B) retain, or distribute to the family, the State share 
     of the amount so collected.
       ``(2) Families that formerly received assistance.--In the 
     case of a family that formerly received assistance from the 
     State:
       ``(A) Current support payments.--To the extent that the 
     amount so collected does not exceed the amount required to be 
     paid to the family for the month in which collected, the 
     State shall distribute the amount so collected to the family.
       ``(B) Payments of arrearages.--To the extent that the 
     amount so collected exceeds the amount required to be paid to 
     the family for the month in which collected, the State shall 
     distribute the amount so collected as follows:
       ``(i) Distribution of arrearages that accrued after the 
     family ceased to receive assistance.--

       ``(I) Pre-october 1997.--Except as provided in subclause 
     (II), 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 502 of the Child Support 
     Improvement Act of 1996 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 to 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)) 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.--Except as provided in subclause 
     (II), 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 502 of the Child Support 
     Improvement Act of 1996 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 
     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 past-due support has been 
     assigned to the State as a condition of receiving assistance 
     from the State, up to the amount necessary to reimburse the 
     State for 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, unless an earlier effective date is 
     required by this section, effective October 1, 2000, 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.
       ``(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

[[Page S8184]]

     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 Child Support Improvement Act of 1996 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 Child Support Improvement Act of 1996, 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 Child Support Improvement Act of 1996); 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 Child Support Improvement Act of 1996).
       ``(2) Federal share.--The term `Federal share' means that 
     portion of the amount collected resulting from the 
     application of the Federal medical assistance 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 Child Support 
     Improvement Act of 1996), the State share for the fiscal year 
     shall be an amount equal to the State share in fiscal year 
     1995.
       ``(e) Gap Payments not Subject to Distribution Under This 
     Section.--This section shall not apply to any amount 
     collected on behalf of a family as support by a State 
     pursuant to a plan approved under this part if such amount 
     would have been distributed to the family by the State under 
     section 402(a)(28), as in effect and applied on the day 
     before the date of the enactment of section 522 of the Child 
     Support Improvement Act of 1996.''.
       (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 July 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 title.

     SEC. 503. PRIVACY SAFEGUARDS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by section 501(b) of this title, 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. 504. RIGHTS TO NOTIFICATION OF HEARINGS.

       (a) In General.--Section 454 (42 U.S.C. 654), as amended by 
     section 502(b)(2) of this title, 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. 511. STATE CASE REGISTRY.

       Section 454A, as added by section 544(a)(2) of this title, 
     is amended by adding at the end the following new 
     subsections:
       ``(e) State Case Registry.--
       ``(1) Contents.--The automated system required by this 
     section shall include a registry (which shall be known as the 
     `State case registry') that contains records with respect 
     to--
       ``(A) each case in which services are being provided by the 
     State agency under the State plan approved under this part; 
     and
       ``(B) each support order established or modified in the 
     State on or after October 1, 1998.
       ``(2) Linking of local registries.--The State case registry 
     may be established by linking local case registries of 
     support orders through an automated information network, 
     subject to this section.
       ``(3) Use of standardized data elements.--Such records 
     shall use standardized data elements for both parents (such 
     as names, social security numbers and other uniform 
     identification numbers, dates of birth, and case 
     identification numbers), and contain such other information 
     (such as on case status) as the Secretary may require.
       ``(4) Payment records.--Each case record in the State case 
     registry with respect to which services are being provided 
     under the State plan approved under this part and with 
     respect to which a support order has been established shall 
     include a record of--
       ``(A) the amount of monthly (or other periodic) support 
     owed under the order, and other amounts (including 
     arrearages, interest or late payment penalties, and fees) due 
     or overdue under the order;
       ``(B) any amount described in subparagraph (A) that has 
     been collected;
       ``(C) the distribution of such collected amounts;
       ``(D) the birth date of any child for whom the order 
     requires the provision of support; and
       ``(E) the amount of any lien imposed with respect to the 
     order pursuant to section 466(a)(4).
       ``(5) Updating and monitoring.--The State agency operating 
     the automated system required by this section shall promptly 
     establish and update, 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

[[Page S8185]]

     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 approved 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. 512. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 501(b) and 503(a) of this title, 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 544(a)(2) 
     of this title, 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 noncustodial 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 544(a)(2) and as amended by section 511 of this 
     title, 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 of notice of, 
     and the income source subject to, such withholding from a 
     court, another State, an employer, the Federal Parent Locator 
     Service, or another source recognized by the State; 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 Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall become effective on 
     October 1, 1998.
       (2) Limited exception to unit handling payments.--
     Notwithstanding section 454B(b)(1) of the Social Security 
     Act, as added by this section, any State which, as of the 
     date of the enactment of this title, processes the receipt of 
     child support payments through local courts, and, as of March 
     21, 1996, such courts were not funded under part D of title 
     IV of the Social Security Act, may, at the option of the 
     State, continue to process through September 30, 1999, such 
     payments through such courts as processed such payments on or 
     before such date of enactment.

     SEC. 513. STATE DIRECTORY OF NEW HIRES.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 501(b), 503(a) and 512(a) of this 
     title, is amended--
       (1) by striking ``and'' at the end of paragraph (26);
       (2) by striking the period at the end of paragraph (27) and 
     inserting ``; and''; and
       (3) by adding after paragraph (27) the following new 
     paragraph:
       ``(28) provide that, on and after October 1, 1997, the 
     State will operate a State Directory of New Hires in 
     accordance with section 453A.''.
       (b) State Directory of New Hires.--Part D of title IV (42 
     U.S.C. 651-669) is amended by inserting after section 453 the 
     following new section:

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

       ``(a) Establishment.--
       ``(1) In general.--
       ``(A) Requirement for states that have no directory.--
     Except as provided in subparagraph (B), not later than 
     October 1, 1997, each State shall establish an automated 
     directory (to be known as the `State Directory of New Hires') 
     which shall contain information supplied in accordance with 
     subsection (b) by employers on each newly hired employee.
       ``(B) States with new hire reporting in existence.--A State 
     which has a new hire reporting law in existence on the date 
     of the enactment of this section may continue to operate 
     under the State law, but the State must meet the requirements 
     of subsection (g)(2) not later than October 1, 1997, and the 
     requirements of this section (other than subsection (g)(2)) 
     not later than October 1, 1998.
       ``(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 1986 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.

[[Page S8186]]

       ``(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 
     and address 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. 514. 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 5 business days after the date the 
     amount would (but for this subsection) have been paid or 
     credited to the employee, for distribution in accordance with 
     this part. The employer shall comply with the procedural 
     rules relating to income withholding of the State in which 
     the employee works, regardless of the State where the notice 
     originates.''.
       (ii) in clause (ii), by inserting ``be in a standard format 
     prescribed by the Secretary, and'' after ``shall''; and
       (iii) by adding at the end the following new clause:
       ``(iii) As used in this subparagraph, the term `business 
     day' means a day on which State offices are open for regular 
     business.''.
       (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is 
     amended by striking ``any employer'' and all that follows and 
     inserting ``any employer who--
       ``(i) discharges from employment, refuses to employ, or 
     takes disciplinary action against any noncustodial parent 
     subject to wage withholding required by this subsection 
     because of the existence of such withholding and the 
     obligations or additional obligations which it imposes upon 
     the employer; or
       ``(ii) fails to withhold support from wages or to pay such 
     amounts to the State disbursement unit in accordance with 
     this subsection.''.
       (F) Section 466(b) (42 U.S.C. 666(b)) is amended by adding 
     at the end the following new paragraph:
       ``(11) Procedures under which the agency administering the 
     State plan approved under this part may execute a withholding 
     order without advance notice to the obligor, including 
     issuing the withholding order through electronic means.''.
       (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 
     666(c)) is repealed.

     SEC. 515. 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.''.

[[Page S8187]]

     SEC. 516. 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, 1997, 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 business 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.
       ``(5) Research.--The Secretary may provide access to 
     information reported by employers pursuant to section 453A(b) 
     for research purposes found by the Secretary to be likely to 
     contribute to achieving the purposes of part A or this part, 
     but without personal identifiers.
       ``(k) Fees.--
       ``(1) For ssa verification.--The Secretary shall reimburse 
     the Commissioner of Social Security, at a rate negotiated 
     between the Secretary and the Commissioner, for the costs 
     incurred by the Commissioner in performing the verification 
     services described in subsection (j).
       ``(2) For information from state directories of new 
     hires.--The Secretary shall reimburse costs incurred by State 
     directories of new hires in furnishing information as 
     required by subsection (j)(3), at rates which the Secretary 
     determines to be reasonable (which rates shall not include 
     payment for the costs of obtaining, compiling, or maintaining 
     such information).
       ``(3) For information furnished to state and federal 
     agencies.--A State or Federal agency that receives 
     information from the Secretary pursuant to this section shall 
     reimburse the Secretary for costs incurred by the Secretary 
     in furnishing the information, at rates which the Secretary 
     determines to be reasonable (which rates shall include 
     payment for the costs of obtaining, verifying, maintaining, 
     and comparing the information).
       ``(l) Restriction on Disclosure and Use.--Information in 
     the Federal Parent Locator Service, and information resulting 
     from comparisons using such information, shall not be used or 
     disclosed except as expressly provided in this section, 
     subject to section 6103 of the Internal Revenue Code of 1986.

[[Page S8188]]

       ``(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)''.
       (h) Requirement for Cooperation.--The Secretary of Labor 
     and the Secretary of Health and Human Services shall work 
     jointly to develop cost-effective and efficient methods of 
     accessing the information in the various State directories of 
     new hires and the National Directory of New Hires as 
     established pursuant to the amendments made by this title. In 
     developing these methods the Secretaries shall take into 
     account the impact, including costs, on the States, and shall 
     also consider the need to insure the proper and authorized 
     use of wage record information.

     SEC. 517. 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 515 of this title, 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 
     acknowledgment in the records relating to the matter, for the 
     purpose of responding to requests for information from an 
     agency operating pursuant to part D of title IV.''.

[[Page S8189]]

         Subtitle C--Streamlining and Uniformity of Procedures

     SEC. 521. ADOPTION OF UNIFORM STATE LAWS.

       Section 466 (42 U.S.C. 666) is amended by adding at the end 
     the following new subsection:
       ``(f) Uniform Interstate Family Support Act.--
       ``(1) Enactment and use.--In order to satisfy section 
     454(20)(A), on and after January 1, 1998, each State must 
     have in effect the Uniform Interstate Family Support Act, as 
     approved by the American Bar Association on February 9, 1993, 
     together with any amendments officially adopted before 
     January 1, 1998, by the National Conference of Commissioners 
     on Uniform State Laws.
       ``(2) Employers to follow procedural rules of state where 
     employee works.--The State law enacted pursuant to paragraph 
     (1) shall provide that an employer that receives an income 
     withholding order or notice pursuant to section 501 of the 
     Uniform Interstate Family Support Act follow the procedural 
     rules that apply with respect to such order or notice under 
     the laws of the State in which the obligor works.

     SEC. 522. 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 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. 523. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     515 and 517(a) of this title, 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. 524. 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 October 1, 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) not later than March 1, 1997, 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. 525. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
     as amended by section 514 of this title, is amended--
       (1) in subsection (a)(2), by striking the first sentence 
     and inserting the following: ``Expedited administrative and 
     judicial procedures (including the procedures specified in 
     subsection (c)) for establishing paternity and for 
     establishing, modifying, and enforcing support 
     obligations.''; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Expedited Procedures.--The procedures specified in 
     this subsection are the following:
       ``(1) Administrative action by state agency.--Procedures 
     which give the State agency the authority to take the 
     following actions relating to establishment of paternity or 
     to establishment, modification, 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--

[[Page S8190]]

       ``(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 with 
     respect to individuals who owe or are owed support (or 
     against or with respect to whom a support obligation is 
     sought), consisting of--

       ``(I) the names and addresses of such individuals and the 
     names and addresses of the employers of such individuals, as 
     appearing in customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on such individuals held by financial 
     institutions,

     subject to the nonliability of such entities arising from 
     affording such access under this subparagraph.
       ``(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 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 544(a)(2) and as amended by sections 511 and 
     512(c) of this title, 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. 531. 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 
     and other exceptions 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, unless good 
     cause and other exceptions exist which--

       ``(I) shall be defined, taking into account the best 
     interests of the child, and
       ``(II) shall be applied in each case,

     by, at the option of the State, the State agency 
     administering the State program under part A, this part, or 
     title XIX.
       ``(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

[[Page S8191]]

     of the affidavit specified by the Secretary under section 
     452(a)(7) for the voluntary acknowledgment of paternity, and 
     to give full faith and credit to such an affidavit signed in 
     any other State according to its procedures.
       ``(D) Status of signed paternity acknowledgment.--
       ``(i) Inclusion in birth records.--Procedures under which 
     the name of the father shall be included on the record of 
     birth of the child of unmarried parents only if--

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

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

       ``(I) 60 days; or

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

       ``(iii) Contest.--Procedures under which, after the 60-day 
     period referred to in clause (ii), a signed voluntary 
     acknowledgment of paternity may be challenged in court only 
     on the basis of fraud, duress, or material mistake of fact, 
     with the burden of proof upon the challenger, and under which 
     the legal responsibilities (including child support 
     obligations) of any signatory arising from the acknowledgment 
     may not be suspended during the challenge, except for good 
     cause shown.
       ``(E) Bar on acknowledgment ratification proceedings.--
     Procedures under which judicial or administrative proceedings 
     are not required or permitted to ratify an unchallenged 
     acknowledgment of paternity.
       ``(F) Admissibility of genetic testing results.--
     Procedures--
       ``(i) requiring the admission into evidence, for purposes 
     of establishing paternity, of the results of any genetic test 
     that is--

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

       ``(ii) requiring an objection to genetic testing results to 
     be made in writing not later than a specified number of days 
     before any hearing at which the results may be introduced 
     into evidence (or, at State option, not later than a 
     specified number of days after receipt of the results); and
       ``(iii) making the test results admissible as evidence of 
     paternity without the need for foundation testimony or other 
     proof of authenticity or accuracy, unless objection is made.
       ``(G) Presumption of paternity in certain cases.--
     Procedures which create a rebuttable or, at the option of the 
     State, conclusive presumption of paternity upon genetic 
     testing results indicating a threshold probability that the 
     alleged father is the father of the child.
       ``(H) Default orders.--Procedures requiring a default order 
     to be entered in a paternity case upon a showing of service 
     of process on the defendant and any additional showing 
     required by State law.
       ``(I) No right to jury trial.--Procedures providing that 
     the parties to an action to establish paternity are not 
     entitled to a trial by jury.
       ``(J) Temporary support order based on probable paternity 
     in contested cases.--Procedures which require that a 
     temporary order be issued, upon motion by a party, requiring 
     the provision of child support pending an administrative or 
     judicial determination of parentage, if there is clear and 
     convincing evidence of paternity (on the basis of genetic 
     tests or other evidence).
       ``(K) Proof of certain support and paternity establishment 
     costs.--Procedures under which bills for pregnancy, 
     childbirth, and genetic testing are admissible as evidence 
     without requiring third-party foundation testimony, and shall 
     constitute prima facie evidence of amounts incurred for such 
     services or for testing on behalf of the child.
       ``(L) Standing of putative fathers.--Procedures ensuring 
     that the putative father has a reasonable opportunity to 
     initiate a paternity action.
       ``(M) Filing of acknowledgments and adjudications in state 
     registry of birth records.--Procedures under which voluntary 
     acknowledgments and adjudications of paternity by judicial or 
     administrative processes are filed with the State registry of 
     birth records for comparison with information in the State 
     case registry.''.
       (b) National Paternity Acknowledgment Affidavit.--Section 
     452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, 
     and specify the minimum requirements of 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. 532. 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. 533. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF 
                   PART A ASSISTANCE.

       Section 454 (42 U.S.C. 654), as amended by sections 501(b), 
     503(a), 512(a), and 513(a) of this title, 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 
     good cause and other exceptions which--
       ``(i) shall be defined, taking into account the best 
     interests of the child, and
       ``(ii) shall be applied in each case,
     by, at the option of the State, the State agency 
     administering the State program under part A, this part, or 
     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. 541. 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 November 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 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--
       (A) 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;''; and

[[Page S8192]]

       (B) by adding at the end the following new flush sentence:

     ``In determining compliance under this section, a State may 
     use as its paternity establishment percentage either the 
     State's IV-D paternity establishment percentage (as defined 
     in paragraph (2)(A)) or the State's statewide paternity 
     establishment percentage (as defined in paragraph (2)(B)).''.
       (3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i)--

       (I) by striking ``paternity establishment percentage'' and 
     inserting ``IV-D paternity establishment percentage''; and
       (II) by striking ``(or all States, as the case may be)'';

       (ii) by striking ``and'' at the end thereof;
       (B) by redesignating subparagraph (B) as subparagraph (C) 
     and by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) the term `statewide paternity establishment 
     percentage' means, with respect to a State for a fiscal year, 
     the ratio (expressed as a percentage) that the total number 
     of minor children--
       ``(i) who have been born out of wedlock, and
       ``(ii) the paternity of whom has been established or 
     acknowledged during the fiscal year,

     bears to the total number of children born out of wedlock 
     during the preceding fiscal year; and''; and
       (iii) in the matter following subparagraph (C) (as so 
     redesignated), by striking ``to have good cause for refusing 
     to cooperate'' and inserting ``to qualify for a good cause or 
     other exception to cooperation''.
       (4) 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; and
       (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''.
       (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 
     title.

     SEC. 542. FEDERAL AND STATE REVIEWS AND AUDITS.

       (a) State Agency Activities.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) in paragraph (14), by striking ``(14)'' and inserting 
     ``(14)(A)'';
       (2) by redesignating paragraph (15) as subparagraph (B) of 
     paragraph (14); and
       (3) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) provide for--
       ``(A) a process for annual reviews of and reports to the 
     Secretary on the State program operated under the State plan 
     approved under this part, including such information as may 
     be necessary to measure State compliance with Federal 
     requirements for expedited procedures, using such standards 
     and procedures as are required by the Secretary, under which 
     the State agency will determine the extent to which the 
     program is operated in compliance with this part; and
       ``(B) a process of extracting from the automated data 
     processing system required by paragraph (16) and transmitting 
     to the Secretary data and calculations concerning the levels 
     of accomplishment (and rates of improvement) with respect to 
     applicable performance indicators (including 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 title.

     SEC. 543. 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 501(b), 503(a), 512(a), 513(a), and 
     533 of this title, 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. 544. 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 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.

[[Page S8193]]

       ``(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 title.
       (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
     654(24)), as amended by section 503(a)(1) of this title, 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 Child Support Improvement Act of 1996, 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 544(a)(3) of the Child Support Improvement Act of 
     1996;''.
       (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 September 30, 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. 545. TECHNICAL ASSISTANCE.

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

     The amount appropriated under this subsection shall remain 
     available until expended.''.
       (b) Operation of Federal Parent Locator Service.--Section 
     453 (42 U.S.C. 653), as amended by section 516 of this title, 
     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. 546. 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 1997 and 
     succeeding fiscal years.
      Subtitle F--Establishment and Modification of Support Orders

     SEC. 551. 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 may review and 
     adjust each support order being enforced under this part if 
     there is an assignment under part A, or shall review and 
     adjust each support order being enforced under this part upon 
     the request of either parent. 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

[[Page S8194]]

       ``(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. 552. 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. 553. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING 
                   FINANCIAL RECORDS TO STATE CHILD SUPPORT 
                   ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

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

     ``SEC. 469A. 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--

       ``(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(u));
       ``(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).''.
               Subtitle G--Enforcement of Support Orders

     SEC. 561. 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. 562. 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

[[Page S8195]]

     the notice or service (together with a copy of the notice or 
     service) to the individual at the duty station or last-known 
     home address of the individual;
       ``(B) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after receipt of a notice 
     pursuant to such State procedures, comply with all applicable 
     provisions of section 466; and
       ``(C) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after effective service 
     of any other such order, process, or interrogatory, respond 
     to the order, process, or interrogatory.
       ``(d) Priority of Claims.--If a governmental entity 
     specified in subsection (a) receives notice or is served with 
     process, as provided in this section, concerning amounts owed 
     by an individual to more than 1 person--
       ``(1) support collection under section 466(b) must be given 
     priority over any other process, as provided in section 
     466(b)(7);
       ``(2) allocation of moneys due or payable to an individual 
     among claimants under section 466(b) shall be governed by 
     section 466(b) and the regulations prescribed under such 
     section; and
       ``(3) such moneys as remain after compliance with 
     paragraphs (1) and (2) shall be available to satisfy any 
     other such processes on a first-come, first-served basis, 
     with any such process being satisfied out of such moneys as 
     remain after the satisfaction of all such processes which 
     have been previously served.
       ``(e) No Requirement To Vary Pay Cycles.--A governmental 
     entity that is affected by legal process served for the 
     enforcement of an individual's child support or alimony 
     payment obligations shall not be required to vary its normal 
     pay and disbursement cycle in order to comply with the legal 
     process.
       ``(f) Relief From Liability.--
       ``(1) Neither the United States, nor the government of the 
     District of Columbia, nor any disbursing officer shall be 
     liable with respect to any payment made from moneys due or 
     payable from the United States to any individual pursuant to 
     legal process regular on its face, if the payment is made in 
     accordance with this section and the regulations issued to 
     carry out this section.
       ``(2) No Federal employee whose duties include taking 
     actions necessary to comply with the requirements of 
     subsection (a) with regard to any individual shall be subject 
     under any law to any disciplinary action or civil or criminal 
     liability or penalty for, or on account of, any disclosure of 
     information made by the employee in connection with the 
     carrying out of such actions.
       ``(g) Regulations.--Authority to promulgate regulations for 
     the implementation of this section shall, insofar as this 
     section applies to moneys due from (or payable by)--
       ``(1) the United States (other than the legislative or 
     judicial branches of the Federal Government) or the 
     government of the District of Columbia, be vested in the 
     President (or the designee of the President);
       ``(2) the legislative branch of the Federal Government, be 
     vested jointly in the President pro tempore of the Senate and 
     the Speaker of the House of Representatives (or their 
     designees), and
       ``(3) the judicial branch of the Federal Government, be 
     vested in the Chief Justice of the United States (or the 
     designee of the Chief Justice).
       ``(h) Moneys Subject to Process.--
       ``(1) In general.--Subject to paragraph (2), moneys paid or 
     payable to an individual which are considered to be based 
     upon remuneration for employment, for purposes of this 
     section--
       ``(A) consist of--
       ``(i) compensation paid or payable for personal services of 
     the individual, whether the compensation is denominated as 
     wages, salary, commission, bonus, pay, allowances, or 
     otherwise (including severance pay, sick pay, and incentive 
     pay);
       ``(ii) periodic benefits (including a periodic benefit as 
     defined in section 228(h)(3)) or other payments--

       ``(I) under the insurance system established by title II;
       ``(II) under any other system or fund established by the 
     United States which provides for the payment of pensions, 
     retirement or retired pay, annuities, dependents' or 
     survivors' benefits, or similar amounts payable on account of 
     personal services performed by the individual or any other 
     individual;
       ``(III) as compensation for death under any Federal 
     program;
       ``(IV) under any Federal program established to provide 
     `black lung' benefits; or

       ``(V) by the Secretary of Veterans Affairs as compensation 
     for a service-connected disability paid by the Secretary to a 
     former member of the Armed Forces who is in receipt of 
     retired or retainer pay if the former member has waived a 
     portion of the retired or retainer pay in order to receive 
     such compensation; and

       ``(iii) worker's compensation benefits paid under Federal 
     or State law but
       ``(B) do not include any payment--
       ``(i) by way of reimbursement or otherwise, to defray 
     expenses incurred by the individual in carrying out duties 
     associated with the employment of the individual; or
       ``(ii) as allowances for members of the uniformed services 
     payable pursuant to chapter 7 of title 37, United States 
     Code, as prescribed by the Secretaries concerned (defined by 
     section 101(5) of such title) as necessary for the efficient 
     performance of duty.
       ``(2) Certain amounts excluded.--In determining the amount 
     of any moneys due from, or payable by, the United States to 
     any individual, there shall be excluded amounts which--
       ``(A) are owed by the individual to the United States;
       ``(B) are required by law to be, and are, deducted from the 
     remuneration or other payment involved, including Federal 
     employment taxes, and fines and forfeitures ordered by court-
     martial;
       ``(C) are properly withheld for Federal, State, or local 
     income tax purposes, if the withholding of the amounts is 
     authorized or required by law and if amounts withheld are not 
     greater than would be the case if the individual claimed all 
     dependents to which he was entitled (the withholding of 
     additional amounts pursuant to section 3402(i) of the 
     Internal Revenue Code of 1986 may be permitted only when the 
     individual presents evidence of a tax obligation which 
     supports the additional withholding);
       ``(D) are deducted as health insurance premiums;
       ``(E) are deducted as normal retirement contributions (not 
     including amounts deducted for supplementary coverage); or
       ``(F) are deducted as normal life insurance premiums from 
     salary or other remuneration for employment (not including 
     amounts deducted for supplementary coverage).
       ``(i) Definitions.--For purposes of this section--
       ``(1) United states.--The term `United States' includes any 
     department, agency, or instrumentality of the legislative, 
     judicial, or executive branch of the Federal Government, the 
     United States Postal Service, the Postal Rate Commission, any 
     Federal corporation created by an Act of Congress that is 
     wholly owned by the Federal Government, and the governments 
     of the territories and possessions of the United States.
       ``(2) Child support.--The term `child support', when used 
     in reference to the legal obligations of an individual to 
     provide such support, means amounts required to be paid under 
     a judgment, decree, or order, whether temporary, final, or 
     subject to modification, issued by a court or an 
     administrative agency of competent jurisdiction, for the 
     support and maintenance of a child, including a child who has 
     attained the age of majority under the law of the issuing 
     State, or a child and the parent with whom the child is 
     living, which provides for monetary support, health care, 
     arrearages or reimbursement, and which may include other 
     related costs and fees, interest and penalties, income 
     withholding, attorney's fees, and other relief.
       ``(3) Alimony.--
       ``(A) In general.--The term `alimony', when used in 
     reference to the legal obligations of an individual to 
     provide the same, means periodic payments of funds for the 
     support and maintenance of the spouse (or former spouse) of 
     the individual, and (subject to and in accordance with State 
     law) includes separate maintenance, alimony pendente lite, 
     maintenance, and spousal support, and includes attorney's 
     fees, interest, and court costs when and to the extent that 
     the same are expressly made recoverable as such pursuant to a 
     decree, order, or judgment issued in accordance with 
     applicable State law by a court of competent jurisdiction.
       ``(B) Exceptions.--Such term does not include--
       ``(i) any child support; or
       ``(ii) any payment or transfer of property or its value by 
     an individual to the spouse or a former spouse of the 
     individual in compliance with any community property 
     settlement, equitable distribution of property, or other 
     division of property between spouses or former spouses.
       ``(4) Private person.--The term `private person' means a 
     person who does not have sovereign or other special immunity 
     or privilege which causes the person not to be subject to 
     legal process.
       ``(5) Legal process.--The term `legal process' means any 
     writ, order, summons, or other similar process in the nature 
     of garnishment--
       ``(A) which is issued by--
       ``(i) a court or an administrative agency of competent 
     jurisdiction in any State, territory, or possession of the 
     United States;
       ``(ii) a court or an administrative agency of competent 
     jurisdiction in any foreign country with which the United 
     States has entered into an agreement which requires the 
     United States to honor the process; or
       ``(iii) an authorized official pursuant to an order of such 
     a court or an administrative agency of competent jurisdiction 
     or pursuant to State or local law; and
       ``(B) which is directed to, and the purpose of which is to 
     compel, a governmental entity which holds moneys which are 
     otherwise payable to an individual to make a payment from the 
     moneys to another party in order 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--

[[Page S8196]]

       (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. 659(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. 659(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 title.

     SEC. 563. 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 562(c)(4) 
     of this title, is amended--
       (A) by redesignating subsections (i) and (j) as subsections 
     (j) and (k), respectively; and
       (B) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Certification Date.--It is not necessary that the 
     date of a certification of the authenticity or completeness 
     of a copy of a court order for child support received by the 
     Secretary concerned for the purposes of this section be 
     recent in relation to the date of receipt by the 
     Secretary.''.
       (2) Payments consistent with assignments of rights to 
     states.--Section 1408(d)(1) of such title is amended by 
     inserting after the 1st sentence the following new sentence: 
     ``In the case of a spouse or former spouse who, pursuant to 
     section 408(a)(4) of the Social Security Act (42 U.S.C. 
     608(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. 564. VOIDING OF FRAUDULENT TRANSFERS.

       Section 466 (42 U.S.C. 666), as amended by section 521 of 
     this title, 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. 565. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD 
                   SUPPORT.

       (a) In General.--Section 466(a) (42 U.S.C. 666(a)), as 
     amended by sections 515, 517(a), and 523 of this title, 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 issue an order or to 
     request that a court or an administrative process established 
     pursuant to State law issue an 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

[[Page S8197]]

     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. 566. DEFINITION OF SUPPORT ORDER.

       Section 453 (42 U.S.C. 653) as amended by sections 516 and 
     515(b) of this title, 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. 567. 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. 568. 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, when 
     the State agency, party, or other entity seeking to enforce 
     such a lien complies with the procedural rules relating to 
     recording or serving liens that arise within the State, 
     except that such rules may not require judicial notice or 
     hearing prior to the enforcement of such a lien.''.

     SEC. 569. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     515, 517(a), 523, and 565 of this title, 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. 570. 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 545 of this title, 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 paragraph (2).
       ``(2) The Secretary of State shall, upon certification by 
     the Secretary transmitted under paragraph (1), refuse to 
     issue a passport to such individual, and may revoke, 
     restrict, or limit a passport issued previously to such 
     individual.
       ``(3) The Secretary and 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.''.
       (2) State agency responsibility.--Section 454 (42 U.S.C. 
     654), as amended by sections 501(b), 503(a), 512(b), 513(a), 
     533, and 543(b) of this title, 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) Effective Date.--This section and the amendments made 
     by this section shall become effective October 1, 1997.

     SEC. 571. INTERNATIONAL SUPPORT ENFORCEMENT.

       (a) Authority for International Agreements.--Part D of 
     title IV, as amended by section 562(a) of this title, is 
     amended by adding after section 459 the following new 
     section:

     ``SEC. 459A. INTERNATIONAL 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 country 
     regarding the establishment and enforcement of duties of 
     support have been so changed, or the foreign country's 
     implementation of such procedures is so unsatisfactory, that 
     such procedures do not meet the criteria for such a 
     declaration; or
       ``(B) continued operation of the declaration is not 
     consistent with the purposes of this part.
       ``(3) Form of declaration.--A declaration under paragraph 
     (1) may be made in the form of an international agreement, in 
     connection with an international agreement or corresponding 
     foreign declaration, or on a unilateral basis.
       ``(b) Standards for Foreign Support Enforcement 
     Procedures.--
       ``(1) Mandatory elements.--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 child 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 support enforcement in cases involving 
     residents of the foreign country 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 support enforcement in cases 
     involving residents of the United States and residents of 
     foreign countries 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 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 501(b), 503(a), 512(b), 513(a), 533, 
     543(b), and 570(a)(2) of this title, 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

[[Page S8198]]

     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. 572. FINANCIAL INSTITUTION DATA MATCHES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     515, 517(a), 523, 565, and 569 of this title, 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' has the meaning given to such term by section 
     469A(d)(1).
       ``(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. 573. 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 
     515, 517(a), 523, 565, 569, and 572 of this title, 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 parent 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 parent of such child.''.

     SEC. 574. 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) owed under State law to a State or municipality that 
     is--
       ``(A) in the nature of support, and
       ``(B) enforceable under part D of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.).'', and
       (3) in paragraph (5), by striking ``section 402(a)(26)'' 
     and inserting ``section 408(a)(4)''.
       (b) Amendment to the Social Security Act.--Section 456(b) 
     (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) owed under State 
     law to a State (as defined in such section) or municipality 
     (as defined in such section) that is in the nature of support 
     and that is enforceable under this part is not released by a 
     discharge in bankruptcy under title 11 of the United States 
     Code.''.
       (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 date of 
     the enactment of this title.
                      Subtitle H--Medical Support

     SEC. 581. 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 title.
       (2) Plan amendments not required until january 1, 1997.--
     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, 1997, if--
       (A) during the period after the date before the date of the 
     enactment of this title 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. 582. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     515, 517(a), 523, 565, 569, 572, and 573 of this title, is 
     amended by adding at the end the following new paragraph:
       ``(19) Health care coverage.--Procedures under which all 
     child support orders enforced pursuant to this part shall 
     include a provision for the health care coverage of the 
     child, and in the case in which a noncustodial parent 
     provides such coverage and changes employment, and the new 
     employer provides health care coverage, the State agency 
     shall transfer notice of the provision to the employer, which 
     notice shall operate to enroll the child in the noncustodial 
     parent's health plan, unless the noncustodial parent contests 
     the notice.''.
     Subtitle I--Enhancing Responsibility and Opportunity for Non-
                          Residential Parents

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

       Part D of title IV (42 U.S.C. 651-669), as amended by 
     section 553, is amended by adding at the end the following 
     new section:

     ``SEC. 469B. 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 1997 or 1998; 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--Effective Dates and Conforming Amendments

     SEC. 595. EFFECTIVE DATES AND CONFORMING AMENDMENTS.

       (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,

[[Page S8199]]

     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.
       (d) Conforming Amendments.--
       (1) The following provisions are amended by striking 
     ``absent'' each place it appears and inserting 
     ``noncustodial'':
       (A) Section 451 (42 U.S.C. 651).
       (B) Subsections (a)(1), (a)(8), (a)(10)(E), (a)(10)(F), 
     (f), and (h) of section 452 (42 U.S.C. 652).
       (C) Subsections (a) and (f) of section 453 (42 U.S.C. 653).
       (D) Paragraphs (8), (13), and (21)(A) of section 454 (42 
     U.S.C. 654).
       (E) Section 455(e)(1) (42 U.S.C. 655(e)(1)).
       (F) Section 458(a) (42 U.S.C. 658(a)).
       (G) Subsections (a), (b), and (c) of section 463 (42 U.S.C. 
     663).
       (H) Subsections (a)(3)(A), (a)(3)(C), (a)(6), and 
     (a)(8)(B)(ii), the last sentence of subsection (a), and 
     subsections (b)(1), (b)(3)(B), (b)(3)(B)(i), (b)(6)(A)(i), 
     (b)(8), (b)(9), and (e) of section 466 (42 U.S.C. 666).
       (2) The following provisions are amended by striking ``an 
     absent'' each place it appears and inserting ``a 
     noncustodial'':
       (A) Paragraphs (2) and (3) of section 453(c) (42 U.S.C. 
     653(c)).
       (B) Subparagraphs (B) and (C) of section 454(9) (42 U.S.C. 
     654(9)).
       (C) Section 456(a)(3) (42 U.S.C. 656(a)(3)).
       (D) Subsections (a)(3)(A), (a)(6), (a)(8)(B)(i), (b)(3)(A), 
     and (b)(3)(B) of section 466 (42 U.S.C. 666).
       (E) Paragraphs (2) and (4) of section 469 (42 U.S.C. 669).
             TITLE VI--SUPPLEMENTAL SECURITY INCOME REFORM
                  Subtitle A--Eligibility Restrictions

     SEC. 601. 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:
       ``(5) An individual shall not be considered an eligible 
     individual for purposes of this title during the 10-year 
     period beginning on the date the individual is convicted in 
     Federal or State court of having made a fraudulent statement 
     or representation with respect to the place of residence of 
     the individual in order to receive benefits simultaneously 
     from 2 or more States under programs that are funded under 
     part A of title IV, title XIX, or the Food Stamp Act of 1977, 
     or benefits in 2 or more States under the supplemental 
     security income program under title XVI.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 602. 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 (2) the following new 
     paragraph:
       ``(3) A person shall not be an eligible individual or 
     eligible spouse for purposes of this title with respect to 
     any month if during such month the person is--
       ``(A) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(B) violating a condition of probation or parole imposed 
     under Federal or State law.''.
       (b) Exchange of Information with Law Enforcement 
     Agencies.--Section 1631(e) (42 U.S.C. 1383(e)) is amended by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) Notwithstanding any other provision of law, the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the request of the officer, with 
     the current address, social security number, and photograph 
     (if applicable) of any recipient of benefits under this 
     title, if the officer furnishes the agency with the name of 
     the recipient and notifies the agency that--
       ``(A) the recipient--
       ``(i) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State;
       ``(ii) is violating a condition of probation or parole 
     imposed under Federal or State law; or
       ``(iii) has information that is necessary for the officer 
     to conduct the officer's official duties; and
       ``(B) the location or apprehension of the recipient is 
     within the officer's official duties.''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective on and after the date of the enactment of 
     this Act.

     SEC. 603. TREATMENT OF PRISONERS.

       (a) Implementation of Prohibition Against Payment of 
     Benefits to Prisoners.--Section 1611(e)(1) (42 U.S.C. 
     1382(e)(1)) is amended by adding at the end the following new 
     subparagraph:
       ``(I)(i) The Commissioner shall enter into a contract, with 
     any interested State or local institution referred to in 
     subparagraph (A), under which--
       ``(I) the institution shall provide to the Commissioner, on 
     a monthly basis, the names, social security account numbers, 
     dates of birth, and such other identifying information 
     concerning the inmates of the institution as the Commissioner 
     may require for the purpose of carrying out paragraph (1); 
     and
       ``(II) the Commissioner shall pay to any such institution, 
     with respect to each inmate of the institution who is 
     eligible for a benefit under this title for the month 
     preceding the first month throughout which such inmate is in 
     such institution and becomes ineligible for such benefit (or 
     becomes eligible only for a benefit payable at a reduced 
     rate) as a result of the application of this paragraph, an 
     amount not to exceed $400 if the institution furnishes the 
     information described in subclause (I) to the Commissioner 
     within 30 days after such individual becomes an inmate of 
     such institution, or an amount not to exceed $200 if the 
     institution furnishes such information after 30 days after 
     such date but within 90 days after such date.
       ``(ii) The provisions of section 552a of title 5, United 
     States Code, shall not apply to any contract entered into 
     under clause (i) or to information exchanged pursuant to such 
     contract.
       ``(iii) Payments to institutions required by clause (i)(II) 
     shall be made from funds otherwise available for the payment 
     of benefits under this title and shall be treated as direct 
     spending for purposes of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.''.
       (b) Denial of SSI Benefits for 10 Years to a Person Found 
     To Have Fraudulently Obtained SSI Benefits While in Prison.--
       (1) In general.--Section 1611(e)(1) (42 U.S.C. 1382(e)(1)), 
     as amended by subsection (a)(1), is amended by adding at the 
     end the following new subparagraph:
       ``(J) In any case in which the Commissioner of Social 
     Security finds that a person has made a fraudulent statement 
     or representation in order to obtain or to continue to 
     receive benefits under this title while being an inmate in a 
     penal institution, such person shall not be considered an 
     eligible individual or eligible spouse for any month ending 
     during the 10-year period beginning on the date on which such 
     person ceases being such an inmate.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to statements or representations 
     made on or after the date of the enactment of this Act.
       (d) Study of Other Potential Improvements in the Collection 
     of Information Respecting Public Inmates.--
       (1) Study.--The Commissioner of Social Security shall 
     conduct a study of the desirability, feasibility, and cost 
     of--
       (A) establishing a system under which Federal, State, and 
     local courts would furnish to the Commissioner such 
     information respecting court orders by which individuals are 
     confined in jails, prisons, or other public penal, 
     correctional, or medical facilities as the Commissioner may 
     require for the purpose of carrying out sections 202(x) and 
     1611(e)(1) of the Social Security Act; and
       (B) requiring that State and local jails, prisons, and 
     other institutions that enter into contracts with the 
     Commissioner under section 202(x)(3)(B) or 1611(e)(1)(I) of 
     the Social Security Act furnish the information required by 
     such contracts to the Commissioner by means of an electronic 
     or other sophisticated data exchange system.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall submit a report on the results of the study conducted 
     pursuant to this subsection to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives.

     SEC. 604. EFFECTIVE DATE OF APPLICATION FOR BENEFITS.

       (a) In General.--Subparagraphs (A) and (B) of section 
     1611(c)(7) (42 U.S.C. 1382(c)(7)) are amended to read as 
     follows:
       ``(A) the first day of the month following the date such 
     application is filed, or
       ``(B) the first day of the month following the date such 
     individual becomes eligible for

[[Page S8200]]

     such benefits with respect to such application.''.
       (b) Conforming Amendments.--
       (1) Section 1614(b) (42 U.S.C. 1382c(b)) is amended by 
     striking ``at the time the application or request is filed'' 
     and inserting ``on the first day of the month following the 
     date the application or request is filed''.
       (2) Section 1631(g)(3) (42 U.S.C. 1382j(g)(3)) is amended 
     by inserting ``following the month'' after ``beginning with 
     the month''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to applications for benefits under title XVI of the 
     Social Security Act filed on or after the date of the 
     enactment of this Act, without regard to whether regulations 
     have been issued to implement such amendments.
       (2) 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.
               Subtitle B--Benefits for Disabled Children

     SEC. 611. DEFINITION AND ELIGIBILITY RULES.

       (a) Definition of Childhood Disability.--Section 1614(a)(3) 
     (42 U.S.C. 1382c(a)(3)) is amended--
       (1) in subparagraph (A), by striking ``An individual'' and 
     inserting ``Except as provided in subparagraph (C), an 
     individual'';
       (2) in subparagraph (A), by striking ``(or, in the case of 
     an individual under the age of 18, if he suffers from any 
     medically determinable physical or mental impairment of 
     comparable severity)'';
       (3) by redesignating subparagraphs (C) through (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.''; and
       (5) in subparagraph (F), as redesignated by paragraph (3), 
     by striking ``(D)'' and inserting ``(E)''.
       (b) Changes to Childhood SSI Regulations.--
       (1) Modification to medical criteria for evaluation of 
     mental and emotional disorders.--The Commissioner of Social 
     Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
     of appendix 1 to subpart P of part 404 of title 20, Code of 
     Federal Regulations, to eliminate references to maladaptive 
     behavior in the domain of personal/behavorial function.
       (2) Discontinuance of individualized functional 
     assessment.--The Commissioner of Social Security shall 
     discontinue the individualized functional assessment for 
     children set forth in sections 416.924d and 416.924e of title 
     20, Code of Federal Regulations.
       (c) Effective Date; Miscellaneous Provisions.--
       (1) In general.--The provisions of, and amendments made by, 
     subsections (a) and (b) shall apply to applicants for 
     benefits for months beginning on or after the date of the 
     enactment of this Act, without regard to whether regulations 
     have been issued to implement such provisions and amendments.
       (2) Regulations.--The Commissioner of Social Security shall 
     issue such regulations as the Commissioner determines to be 
     necessary to implement the provisions of, and amendments made 
     by, subsections (a) and (b) not later than 60 days after the 
     date of the enactment of this Act.
       (3) Application to current recipients.--
       (A) Eligibility determinations.--During the period 
     beginning on January 1, 1997, and ending not later than 
     December 31, 1997, the Commissioner of Social Security shall 
     redetermine the eligibility of any individual under age 18 
     who is receiving supplemental security income benefits based 
     on a disability under title XVI of the Social Security Act as 
     of the date of the enactment of this Act and whose 
     eligibility for such benefits may terminate by reason of the 
     provisions of, and amendments made by, subsection (a) or (b). 
     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 amendments made by 
     subsections (a) and (b), and the redetermination under 
     subparagraph (A), shall only apply with respect to the 
     benefits of an individual described in subparagraph (A) for 
     months beginning on or after January 1, 1998.
       (C) Notice.--Not later than January 1, 1997, the 
     Commissioner of Social Security shall notify an individual 
     described in subparagraph (A) of the provisions of this 
     paragraph.
       (4) 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.
       (5) 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. 612. ELIGIBILITY REDETERMINATIONS AND CONTINUING 
                   DISABILITY REVIEWS.

       (a) Continuing Disability Reviews Relating to Certain 
     Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), 
     as redesignated by section 611(a)(3), is amended--
       (1) by inserting ``(i)'' after ``(H)''; and
       (2) by adding at the end the following new clause:
       ``(ii)(I) Not less frequently than once every 3 years, the 
     Commissioner shall review in accordance with paragraph (4) 
     the continued eligibility for benefits under this title of 
     each individual who has not attained 18 years of age and is 
     eligible for such benefits by reason of an impairment (or 
     combination of impairments) which may improve (or, which is 
     unlikely to improve, at the option of the Commissioner).
       ``(II) A parent or guardian of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.''.
       (b) Disability Eligibility Redeterminations Required for 
     SSI Recipients Who Attain 18 Years of Age.--
       (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsection (a), is amended by 
     adding at the end the following new clause:
       ``(iii) If an individual is eligible for benefits under 
     this title by reason of disability for the month preceding 
     the month in which the individual attains the age of 18 
     years, the Commissioner shall redetermine such eligibility--
       ``(I) during the 1-year period beginning on the 
     individual's 18th birthday; and
       ``(II) by applying the criteria used in determining the 
     initial eligibility for applicants who have attained the age 
     of 18 years.

     With respect to a redetermination under this clause, 
     paragraph (4) shall not apply and such redetermination shall 
     be considered a substitute for a review or redetermination 
     otherwise required under any other provision of this 
     subparagraph during that 1-year period.''.
       (2) Conforming repeal.--Section 207 of the Social Security 
     Independence and Program Improvements Act of 1994 (42 U.S.C. 
     1382 note; 108 Stat. 1516) is hereby repealed.
       (c) Continuing Disability Review Required for Low Birth 
     Weight Babies.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsections (a) and (b), is 
     amended by adding at the end the following new clause:
       ``(iv)(I) Not later than 12 months after the birth of an 
     individual, the Commissioner shall review in accordance with 
     paragraph (4) the continuing eligibility for benefits under 
     this title by reason of disability of such individual whose 
     low birth weight is a contributing factor material to the 
     Commissioner's determination that the individual is disabled.
       ``(II) A review under subclause (I) shall be considered a 
     substitute for a review otherwise required under any other 
     provision of this subparagraph during that 12-month period.
       ``(III) A parent or guardian of a recipient whose case is 
     reviewed under this clause shall present, at the time of 
     review, evidence demonstrating that the recipient is, and has 
     been, receiving treatment, to the extent considered medically 
     necessary and available, of the condition which was the basis 
     for providing benefits under this title.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.

     SEC. 613. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

       (a) Tightening of Representative Payee Requirements.--
       (1) Clarification of role.--Section 1631(a)(2)(B)(ii) (42 
     U.S.C. 1383(a)(2)(B)(ii)) is amended by striking ``and'' at 
     the end of subclause (II), by striking the period at the end 
     of subclause (IV) and inserting ``; and'', and

[[Page S8201]]

     by adding after subclause (IV) the following new subclause:
       ``(V) advise such person through the notice of award of 
     benefits, and at such other times as the Commissioner of 
     Social Security deems appropriate, of specific examples of 
     appropriate expenditures of benefits under this title and the 
     proper role of a representative payee.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to benefits paid after the date of the enactment 
     of this Act.
       (b) Dedicated Savings Accounts.--
       (1) In general.--Section 1631(a)(2)(B) (42 U.S.C. 
     1383(a)(2)(B)) is amended by adding at the end the following 
     new clause:
       ``(xiv)(I) Notwithstanding clause (x), the Commissioner of 
     Social Security may, at the request of the representative 
     payee, pay any lump sum payment for the benefit of a child 
     into a dedicated savings account that could only be used to 
     purchase for such child--
       ``(aa) education and job skills training;
       ``(bb) special equipment or housing modifications or both 
     specifically related to, and required by the nature of, the 
     child's disability; and
       ``(cc) appropriate therapy and rehabilitation.
       ``(II) The knowing and willful misuse of funds from an 
     account established under subclause (I) by a representative 
     payee for any purpose not authorized by subclause (I) shall 
     constitute fraud and shall be subject to penalties under 
     section 1632.''.
       (2) Disregard of trust funds.--Section 1613(a) (42 U.S.C. 
     1382b) is amended--
       (A) by striking ``and'' at the end of paragraph (9),
       (B) by striking the period at the end of paragraph (10) the 
     first place it appears and inserting a semicolon,
       (C) by redesignating paragraph (10) the second place it 
     appears as paragraph (11) and striking the period at the end 
     of such paragraph and inserting ``; and'', and
       (D) by inserting after paragraph (11), as so redesignated, 
     the following new paragraph:
       ``(12) all amounts deposited in, or interest credited to, a 
     dedicated savings account described in section 
     1631(a)(2)(B)(xiv).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to payments made after the date of the enactment 
     of this Act.

     SEC. 614. REDUCTION IN CASH BENEFITS PAYABLE TO 
                   INSTITUTIONALIZED CHILDREN 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 ``or'' after ``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 amendments made by this section 
     shall apply to benefits for months beginning 90 days after 
     the date of the enactment of this Act, without regard to 
     whether regulations have been issued to implement such 
     amendments.

     SEC. 615. MODIFICATION RESPECTING PARENTAL INCOME DEEMED TO 
                   DISABLED CHILDREN.

       (a) In General.--Section 1614(f)(2) (42 U.S.C. 1382c(f)(2)) 
     is amended--
       (1) by adding at the end of subparagraph (A) the following: 
     ``For purposes of the preceding sentence, the income of such 
     parent or spouse of such parent shall be reduced by--
       ``(A) the allocation for basic needs described in 
     subparagraph (C)(i); and
       ``(B) the earned income disregard described in subparagraph 
     (C)(ii).''; and
       (2) by adding at the end the following:
       ``(C)(i) The allocation for basic needs described by this 
     clause is--
       ``(I) in the case of an individual who does not have a 
     spouse, an amount equal to 50 percent of the maximum monthly 
     benefit payable under this title to an eligible individual 
     who does not have an eligible spouse; or
       ``(II) in the case of an individual who has a spouse, an 
     amount equal to 50 percent of the maximum monthly benefit 
     payable under this title to an eligible individual who has an 
     eligible spouse.
       ``(ii) The earned income disregard described by this clause 
     is an amount determined by deducting the first $780 per year 
     (or proportionally smaller amounts for shorter periods) plus 
     64 percent of the remainder from the earned income 
     (determined in accordance with section 1612(a)(1)) of the 
     parent (and spouse, if any).''.
       (b) Preservation of Medicaid Eligibility.--Section 1634 (42 
     U.S.C. 1383c) is amended by adding at the end the following:
       ``(f) Any child who has not attained 18 years of age and 
     who would be eligible for a payment under this title but for 
     the amendment made by section 615(a) of the Work First Act of 
     1996 shall be deemed to be receiving such payment for 
     purposes of eligibility of the child for medical assistance 
     under a State plan approved under title XIX of this Act.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months after 1996.
                   Subtitle C--Enforcement Provisions

     SEC. 621. INSTALLMENT PAYMENT OF LARGE PAST-DUE SUPPLEMENTAL 
                   SECURITY INCOME BENEFITS.

       (a) In General.--Section 1631(a) (42 U.S.C. 1383) is 
     amended by adding at the end the following new paragraph:
       ``(10)(A) If an individual is eligible for past-due monthly 
     benefits under this title in an amount that (after any 
     withholding for reimbursement to a State for interim 
     assistance under subsection (g)) equals or exceeds the 
     product of--
       ``(i) 12, and
       ``(ii) the maximum monthly benefit payable under this title 
     to an eligible individual (or, if appropriate, to an eligible 
     individual and eligible spouse),

     then the payment of such past-due benefits (after any such 
     reimbursement to a State) shall be made in installments as 
     provided in subparagraph (B).
       ``(B)(i) The payment of past-due benefits subject to this 
     subparagraph shall be made in not to exceed 3 installments 
     that are made at 6-month intervals.
       ``(ii) Except as provided in clause (iii), the amount of 
     each of the first and second installments may not exceed an 
     amount equal to the product of clauses (i) and (ii) of 
     subparagraph (A).
       ``(iii) In the case of an individual who has--
       ``(I) outstanding debt attributable to--
       ``(aa) food,
       ``(bb) clothing,
       ``(cc) shelter, or
       ``(dd) medically necessary services, supplies or equipment, 
     or medicine; or
       ``(II) current expenses or expenses anticipated in the near 
     term attributable to--
       ``(aa) medically necessary services, supplies or equipment, 
     or medicine, or
       ``(bb) the purchase of a home, and

     such debt or expenses are not subject to reimbursement by a 
     public assistance program, the Secretary under title XVIII, a 
     State plan approved under title XIX, or any private entity 
     legally liable to provide payment pursuant to an insurance 
     policy, pre-paid plan, or other arrangement, the limitation 
     specified in clause (ii) may be exceeded by an amount equal 
     to the total of such debt and expenses.
       ``(C) This paragraph shall not apply to any individual who, 
     at the time of the Commissioner's determination that such 
     individual is eligible for the payment of past-due monthly 
     benefits under this title--
       ``(i) is afflicted with a medically determinable impairment 
     that is expected to result in death within 12 months; or
       ``(ii) is ineligible for benefits under this title and the 
     Commissioner determines that such individual is likely to 
     remain ineligible for the next 12 months.
       ``(D) For purposes of this paragraph, 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.''.
       (b) Conforming Amendment.--Section 1631(a)(1) (42 U.S.C. 
     1383(a)(1)) is amended by inserting ``(subject to paragraph 
     (10))'' immediately before ``in such installments''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section are 
     effective with respect to past-due benefits payable under 
     title XVI of the Social Security Act after the third month 
     following the month in which this Act is enacted.
       (2) Benefits payable under title xvi.--For purposes of this 
     subsection, the term ``benefits payable 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.
   Subtitle D--Studies Regarding Supplemental Security Income Program

     SEC. 631. ANNUAL REPORT ON THE SUPPLEMENTAL SECURITY INCOME 
                   PROGRAM.

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

     ``SEC. 1636. ANNUAL REPORT ON PROGRAM.

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

[[Page S8202]]

     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. 632. IMPROVEMENTS TO DISABILITY EVALUATION.

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

     SEC. 633. 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. 634. STUDY BY GENERAL ACCOUNTING OFFICE.

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

     SEC. 641. ESTABLISHMENT.

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

     SEC. 642. 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. 643. MEMBERSHIP.

       (a) Number and Appointment.--
       (1) In general.--The Commission shall be composed of 15 
     members, of whom--
       (A) five shall be appointed by the President, of whom not 
     more than 3 shall be of the same major political party;
       (B) three shall be appointed by the Majority Leader of the 
     Senate;
       (C) two shall be appointed by the Minority Leader of the 
     Senate;
       (D) three shall be appointed by the Speaker of the House of 
     Representatives; and
       (E) two shall be appointed by the Minority Leader of the 
     House of Representatives.
       (2) Representation.--The Commission members shall be chosen 
     based on their education, training, or experience. In 
     appointing individuals as members of the Commission, the 
     President and the Majority and Minority Leaders of the Senate 
     and the Speaker and Minority Leader of the House of 
     Representatives shall seek to ensure that the membership of 
     the Commission reflects the diversity of individuals with 
     disabilities in the United States.
       (b) Comptroller General.--The Comptroller General shall 
     serve on the Commission as an ex officio member of the 
     Commission to advise and oversee the methodology and approach 
     of the study of the Commission.
       (c) Prohibition Against Officer or Employee.--No officer or 
     employee of any government shall be appointed under 
     subsection (a).
       (d) Deadline for Appointment; Term of Appointment.--Members 
     of the Commission shall be appointed not later than 60 days 
     after the date of the enactment of this Act. The members 
     shall serve on the Commission for the life of the Commission.
       (e) Meetings.--The Commission shall locate its headquarters 
     in the District of Columbia, and shall meet at the call of 
     the Chairperson, but not less than 4 times each year during 
     the life of the Commission.
       (f) Quorum.--Ten members of the Commission shall constitute 
     a quorum, but a lesser number may hold hearings.
       (g) Chairperson and Vice Chairperson.--Not later than 15 
     days after the members of the Commission are appointed, such 
     members shall designate a Chairperson and Vice Chairperson 
     from among the members of the Commission.
       (h) Continuation of Membership.--If a member of the 
     Commission becomes an officer or employee of any government 
     after appointment to the Commission, the individual may 
     continue as a member until a successor member is appointed.
       (i) Vacancies.--A vacancy on the Commission shall be filled 
     in the manner in which the original appointment was made not 
     later than 30 days after the Commission is given notice of 
     the vacancy.
       (j) Compensation.--Members of the Commission shall receive 
     no additional pay, allowances, or benefits by reason of their 
     service on the Commission.
       (k) Travel Expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.

     SEC. 644. STAFF AND SUPPORT SERVICES.

       (a) Director.--
       (1) Appointment.--Upon consultation with the members of the 
     Commission, the Chairperson shall appoint a Director of the 
     Commission.
       (2) Compensation.--The Director shall be paid the rate of 
     basic pay for level V of the Executive Schedule.
       (b) Staff.--With the approval of the Commission, the 
     Director may appoint such personnel as the Director considers 
     appropriate.
       (c) Applicability of Civil Service Laws.--The staff of the 
     Commission shall be appointed without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and shall be paid 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of such title relating to classification 
     and General Schedule pay rates.
       (d) Experts and Consultants.--With the approval of the 
     Commission, the Director may procure temporary and 
     intermittent

[[Page S8203]]

     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. 645. POWERS OF COMMISSION.

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

     SEC. 646. REPORTS.

       (a) Interim Report.--Not later than 1 year prior to the 
     date on which the Commission terminates pursuant to section 
     647, 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. 647. TERMINATION.

       The Commission shall terminate on the date that is 2 years 
     after the date on which the members of the Commission have 
     met and designated a Chairperson and Vice Chairperson.
     TITLE VII--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

     SEC. 700. 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 ensuring 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 
     ensure 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 ensuring that aliens be self-reliant in accordance with 
     national immigration policy.
              Subtitle A--Eligibility for Federal Benefits

     SEC. 701. 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 in section 731(b)) is not 
     eligible for any Federal public benefit (as defined in 
     subsection (c)).
       (b) Exceptions.--
       (1) Certain federal public benefits.--Subsection (a) shall 
     not apply with respect to the following Federal public 
     benefits:
       (A) Care and services for the treatment of an emergency 
     medical condition, as defined in section 1903(v)(3) of the 
     Social Security Act, provided under a State plan approved 
     under title XIX of such Act.
       (B) Short-term, non-cash, in-kind emergency relief.
       (C)(i) Public health assistance for immunizations.
       (ii) Public health assistance for testing and treatment of 
     symptoms of communicable diseases, whether or not such 
     symptoms are actually caused by a communicable disease, and 
     assistance for treatment of communicable diseases.
       (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, safety, or 
     public health.
       (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.
       (F) Assistance or benefits under--
       (i) the National School Lunch Act (42 U.S.C. 1751 et seq.);
       (ii) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.);
       (iii) section 4 of the Agriculture and Consumer Protection 
     Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note);
       (iv) the Emergency Food Assistance Act of 1983 (Public Law 
     98-8; 7 U.S.C. 612c note);
       (v) section 110 of the Hunger Prevention Act of 1988 
     (Public Law 100-435; 7 U.S.C. 612c note); or
       (vi) the food distribution program on Indian reservations 
     established under section 4(b) of Public Law 88-525 (7 U.S.C. 
     2013(b)).
       (G) The provision of any services or benefits directly 
     related to--
       (i) assisting the victims of domestic violence; or
       (ii) protecting or assisting abused or neglected children.
       (H) Services provided under the Head Start Act (42 U.S.C. 
     9831 et seq.).
       (I) Services provided by a--
       (i) migrant or community health center under section 329 or 
     330 of the Public Health Service Act; or
       (ii) school-based health clinic.
       (J) Payments for foster care and adoption assistance under 
     part E of title IV of the Social Security Act.
       (K) Programs of student assistance under titles IV, V, IX, 
     and X of the Higher Education Act of 1965 and programs under 
     titles III, VII, and VIII of the Public Health Service Act.
       (L) Means-tested programs under the Elementary and 
     Secondary Education Act of 1965.
       (2) Battered or abused individuals.--Subsection (a) shall 
     not apply--
       (A) for up to 48 months if the alien can demonstrate--
       (i) that--

       (I) the alien has been battered or subject to extreme 
     cruelty in the United States by a spouse, parent, or child, 
     or by a member of the spouse's, parent's, or child's family 
     residing in the same household as the alien and the spouse, 
     parent, or child consented or acquiesced to such battery or 
     cruelty; or
       (II) the alien's child has been battered or subject to 
     extreme cruelty in the United States by a spouse or parent of 
     the alien (without the active participation of the alien in 
     the battery or extreme cruelty), or by a member of the spouse 
     or parent's family residing in the same household as the 
     alien when the spouse or parent consented or acquiesced to 
     and the alien did not actively participate in such battery or 
     cruelty; and

[[Page S8204]]

       (ii) that the need for the public benefits applied for has 
     a substantial connection to the battery or cruelty described 
     in subclause (I) or (II) of clause (i); and
       (B) for more than 48 months if the alien can demonstrate 
     that any battery or cruelty under subparagraph (A) is 
     ongoing, has led to the issuance of an order of a judge or an 
     administrative law judge or a prior determination of the 
     Service, and that the need for such benefits has a 
     substantial connection to such battery or cruelty.
       (c) Federal Public Benefit Defined.--
       (1) In general.--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) Exceptions.--The term ``Federal public benefit'' 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. 702. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED ALIENS FOR 
                   SSI BENEFITS.

       (a) Limited Eligibility for SSI Benefits.--Notwithstanding 
     any other provision of law and except as provided in 
     subsection (b), an alien who is a qualified alien (as defined 
     in section 731(b)) is not eligible for the supplemental 
     security income program under title XVI of the Social 
     Security Act, including 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.
       (b) Exceptions.--
       (1) Exception for refugees and asylees.--Subsection (a) 
     shall not apply to--
       (A) an alien who has been admitted to the United States as 
     a refugee under section 207 of the Immigration and 
     Nationality Act;
       (B) an alien who has been granted asylum under section 208 
     of such Act; or
       (C) an alien whose deportation has been withheld under 
     section 243(h) of such Act.
       (2) Certain permanent resident aliens.--Subsection (a) 
     shall not apply to an alien--
       (A) who is lawfully admitted to the United States for 
     permanent residence under the Immigration and Nationality 
     Act; and
       (B)(i) has had paid with respect to the self-employment 
     income or employment of the alien, or of a parent or spouse 
     of the alien, taxes under chapter 2 or chapter 21 of the 
     Internal Revenue Code of 1986 in each of 40 different 
     calendar quarters, and (ii) did not receive any Federal 
     means-tested public benefit (as defined in section 703(c)) 
     during any such quarter.
       (3) Veteran and active duty exception.--Subsection (a) 
     shall not apply to 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) Exception for battered individuals and children.--
     Subsection (a) shall not apply in the case of an exception 
     described in section 701(b)(2).
       (5) Disability exception.--Subparagraph (a) shall not apply 
     to an alien who has been lawfully admitted to the United 
     States for permanent residence, and who since the date of 
     such lawful admission, has become blind or disabled, as those 
     terms are defined in section 1614 of the Social Security Act 
     (42 U.S.C. 1382c).
       (c) Transition for Aliens Currently Receiving Benefits.--
       (1) Application after January 1, 1998.--Subsection (a) 
     shall apply to the eligibility of an alien for the benefits 
     described in such subsection for months beginning on or after 
     January 1, 1998, if, on the date of the enactment of this 
     Act, the alien is lawfully residing in any State and is 
     receiving such benefits on the date of the enactment of this 
     Act.
       (2) Redetermination of benefits.--During the period 
     beginning on the date of the enactment of this Act and ending 
     on the date which is 1 year after such date, the Commissioner 
     of Social Security shall redetermine the eligibility of any 
     individual who is receiving benefits under the supplemental 
     security income program under title XVI of the Social 
     Security Act, including 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, as of 
     the date of the enactment of this Act and whose eligibility 
     for such benefits may terminate by reason of the provisions 
     of this section.
       (3) Redetermination criteria.-- With respect to any 
     redetermination under paragraph (2), the Commissioner of 
     Social Security shall apply the eligibility criteria for new 
     applicants for benefits under the program and agreements 
     described in such paragraph.
       (4) Notice.--Not later than January 1, 1997, the 
     Commissioner of Social Security shall notify an individual 
     described in paragraph (2) of the provisions of this section.

     SEC. 703. 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 731(b)) 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 5 
     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 any alien described in section 702(b).
       (c) Federal Means-Tested Public Benefit Defined.--
       (1) In general.--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) Exception.--Such term does not include any Federal 
     public benefit described in section 701(b)(1).

     SEC. 704. NOTIFICATION AND INFORMATION REPORTING.

       Each Federal agency that administers a program to which 
     section 701, 702, or 703 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.
  Subtitle B--Eligibility for State and Local Public Benefits Programs

     SEC. 711. 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 described under one of the following paragraphs of 
     this subsection is not eligible for any State or local public 
     benefit (as defined in subsection (c)):
       (1) A qualified alien (as defined in section 731(b)).
       (2) A nonimmigrant, as determined under the Immigration and 
     Nationality Act.
       (3) An alien who is paroled into the United States under 
     section 212(d)(5) of such Act for less than one year.
       (4) An alien described in section 701(b)(2).
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following State or local public benefits:
       (1) Care and services for the treatment of an emergency 
     medical condition, as defined in section 1903(v)(3) of the 
     Social Security Act.
       (2) Short-term, noncash, in-kind emergency relief.
       (3)(A) Public health assistance for immunizations.
       (B) Public health assistance for testing and treatment of 
     symptoms of communicable diseases, whether or not such 
     symptoms are actually caused by a communicable disease, and 
     assistance for treatment of communicable diseases.
       (4) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the appropriate State official 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, safety, or 
     public health.
       (5) Family violence services.
       (6) Benefits or services to protect abused or neglected 
     children.
       (7) School meals and child nutrition services.
       (8) Prenatal health care services.
       (c) State or Local Public Benefit Defined.--
       (1) In general.--Except as provided in paragraph (2), for 
     purposes of this section 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

[[Page S8205]]

       (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) Exceptions.--The term ``State or local public benefit'' 
     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 the provisions of subsection (a).
       (e) Rule of Construction.--Nothing in this section shall be 
     construed to limit the option of a State to provide 
     preventative health care to an alien who would otherwise be 
     ineligible for such health care under the provisions of this 
     section.
      Subtitle C--Attribution of Income and Affidavits of Support

     SEC. 721. FEDERAL ATTRIBUTION OF SPONSOR'S INCOME AND 
                   RESOURCES TO ALIEN FOR PURPOSES OF MEDICAID, 
                   FOOD STAMPS, AND TEA ELIGIBILITY.

       (a) Attribution of Sponsor's Income and Resources.--
       (1) In General.--Notwithstanding any other provision of 
     law, in determining the eligibility and the amount of 
     benefits of an alien for the program of medical assistance 
     under title XIX of the Social Security Act, the Food stamp 
     program, as defined in section 3(h) of the Food Stamp Act of 
     1977, and the temporary employment assistance program funded 
     under part A of title IV of the Social Security Act, the 
     income and resources of the alien shall be deemed to include 
     the following:
       (A) 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 723) on 
     behalf of such alien.
       (B) The income and resources of the spouse (if any) of such 
     affiant.
       (2) Determination of income and resources.--
       (A) Income.--For each program referred to in paragraph (1), 
     the amount of income which shall be deemed to an alien under 
     this section shall be determined by calculating the countable 
     yearly income received by the sponsor and the sponsor's 
     spouse according to the regulations for determining income 
     eligibility applicable to the program involved, and deducting 
     therefrom an amount equal to the poverty line, as defined in 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2), (including any revision required by such 
     section) applicable to a family of the same size as such 
     sponsor's and such spouse's family.
       (B) Resources.--For each program referred to in paragraph 
     (1), the amount of resources which shall be deemed to be the 
     resources of an alien under this section shall be determined 
     by calculating the total value of countable resources owned 
     by and available to the sponsor and the sponsor's spouse. 
     Such amount shall not include the sponsor's personal 
     property, primary place of residence, property used to 
     generate income, or such other resources as are designated by 
     the agency charged with administering the affected program.
       (b) Application.--
       (1) In general.--Subsection (a) shall apply with respect to 
     an alien until such time as the alien--
       (A) achieves United States citizenship through 
     naturalization pursuant to the Immigration and Nationality 
     Act; or
       (B)(i) pays, or has paid, with respect to the self-
     employment income or employment of the alien, or of a parent 
     or spouse of the alien, taxes under chapter 2 or chapter 21 
     of the Internal Revenue Code of 1986 in each of 40 different 
     calendar quarters, and (ii) did not receive any Federal 
     means-tested public benefit (as defined in section 703(c)) 
     during any such quarter.
       (2) Credit for spouses and children.--An alien not meeting 
     the requirements of paragraph (1)(B)(i) shall be treated as 
     meeting such requirements if--
       (A) the spouse of such alien has met such requirements and 
     the alien and spouse filed a joint income tax returns 
     covering the 40 calendar quarters referred to in such 
     paragraph; or
       (B) the individual who claimed such alien as a dependent on 
     an income tax return covering such quarters met such 
     requirements for such quarters.
       (3) Exceptions.--Subsection (a) shall not apply to--
       (A) any alien described in--
       (i) section 701(b)(2); or
       (ii) section 702(b); or
       (B) any alien woman who is pregnant.
       (c) Review of Income and Resources of Alien Upon 
     Reapplication.--Whenever an alien is required to reapply for 
     benefits under any of the programs described in section 
     721(a)(1), the State agency administering such plan shall 
     review the income and resources attributed to the alien under 
     subsection (a).
       (d) Other Members of the Alien's Household.--The deemed 
     income and resources of a sponsored alien shall not affect 
     the eligibility or amount of benefits of any other 
     individuals who are members of such alien's family or 
     household.

     SEC. 722. AUTHORITY FOR STATES TO PROVIDE FOR ATTRIBUTION OF 
                   SPONSOR'S INCOME AND RESOURCES TO THE ALIEN 
                   WITH RESPECT TO STATE PROGRAMS.

       (a) Optional Application to State Programs.--
       (1) In general.--Except as provided in subsection (b), in 
     determining the eligibility and the amount of benefits of an 
     alien for any State or local public benefits (as defined in 
     section 712(c)) that are means-tested, the State or political 
     subdivision that offers the benefits may provide that the 
     income and resources of the alien shall be deemed to 
     include--
       (A) 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 723) on 
     behalf of such alien; and
       (B) the income and resources of the spouse (if any) of the 
     affiant.
       (2) Determination of income and resources.--The maximum 
     amount of a sponsor's income and resources that a State may 
     attribute to an alien applying for State public benefits (as 
     defined in section 712(c)) that are means-tested under this 
     section shall be determined in accordance with the provisions 
     of section 721(a)(2).
       (b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following State public benefits:
       (1) Emergency medical services.
       (2) Short-term, noncash, in-kind emergency 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 
     symptoms of communicable diseases, whether or not such 
     symptoms are actually caused by a communicable disease, and 
     assistance for treatment of communicable diseases.
       (6) Payments for foster care and adoption assistance.
       (7) Programs, services, or assistance (such as soup 
     kitchens, crisis counseling and intervention, and short-term 
     shelter) specified by the appropriate State official 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, safety, or 
     public health.
       (8) Prenatal health care services.
       (9) Services and benefits provided to an alien who is 
     described in section 702(b)(5).

     SEC. 723. 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) In general.--No affidavit of support may be accepted 
     by the Attorney General or by any consular officer to 
     establish that an alien is not excludable 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) Enforcement period.--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 sections 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,

[[Page S8206]]

     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) Procedure for reimbursement.--
       ``(A) Request from sponsor.--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) Regulations.--The Attorney General, in consultation 
     with the Secretary of Health and Human Services, shall 
     prescribe such regulations as may be necessary to carry out 
     subparagraph (A).
       ``(2) Causes of action.--
       ``(A) In general.--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.
       ``(B) Upon failure to abide by terms of repayment.--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.
       ``(3) Limitation.--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.
       ``(4) Authority to contract.--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) has attained the age of 18 years; and
       ``(C) is domiciled in the United States or in any territory 
     or possession thereof.
       ``(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 not be 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 section 213A of such Act (as so inserted).
       (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--
       (1) any alien described in--
       (A) section 701(b)(2); or
       (B) section 702(b);
       (2) any alien woman who is pregnant; or
       (3) any of the following benefits:
       (A) Care and services for the treatment of an emergency 
     medical condition, as defined in section 1903(v)(3) of the 
     Social Security Act, provided under a State plan approved 
     under title XIX of such Act, and prenatal services provided 
     under a State plan approved under such title.
       (B) Short-term, noncash, in-kind emergency 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 
     symptoms of communicable diseases, whether or not such 
     symptoms are actually caused by a communicable disease, and 
     assistance for treatment of communicable diseases.
       (F) Payments for foster care and adoption assistance under 
     part E of title IV of the Social Security Act for a child.
       (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, safety, or 
     public health.
       (H) Programs of student assistance under titles IV, V, IX, 
     and X of the Higher Education Act of 1965 and programs under 
     titles III, VII, and VIII of the Public Health Service Act.
       (I) Benefits or services provided by a migrant or community 
     health center under section 329 or 330 of the Public Health 
     Service Act.
       (J) Family violence services.
                     Subtitle D--General Provisions

     SEC. 731. 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.--
       (1) In general.--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 lawfully present in the United States.
       (2) Regulations.--The determination of whether an alien is 
     lawfully present in the United States shall be made in 
     accordance with regulations of the Attorney General. An alien 
     shall not be considered to be lawfully present in the United 
     States for the purposes of this title merely because the 
     alien may be considered to be permanently residing in the 
     United States under color of law for purposes of any 
     particular program.

     SEC. 732. STATUTORY CONSTRUCTION.

       (a) Limitation.--
       (1) In general.--Nothing in this title shall be construed 
     as an entitlement or as 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) No effect on eligibility for education.--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. 733. TITLE INAPPLICABLE TO PROGRAMS SPECIFIED BY 
                   ATTORNEY GENERAL.

        Notwithstanding any other provision of this title, this 
     title or any provision of this title shall not apply to 
     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--
       (1) deliver services at the community level, including 
     through public or private nonprofit agencies;
       (2) 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
       (3) are necessary for the protection of life, safety or the 
     public health.

     SEC. 734. TITLE INAPPLICABLE TO PROGRAMS OF NONPROFIT 
                   CHARITABLE ORGANIZATIONS.

       (a) In General.--Nothing in this Act shall be construed as 
     requiring a nonprofit charitable organization operating any 
     program of assistance provided or funded, in whole or in 
     part, by the Federal Government or by the

[[Page S8207]]

     government of any State or political subdivision of a State 
     to--
       (1) determine, verify, or otherwise require proof of the 
     eligibility, as determined under this title, of any applicant 
     for benefits or assistance under such program; or
       (2) deem that the income or assets of any applicant for 
     benefits or assistance under such program include the income 
     or assets of an individual described in subparagraph (A) or 
     (B) of section 721(a)(1).
       (b) No Effect On Federal Authority To Determine 
     Compliance.--Nothing in this section shall be construed as 
     prohibiting the Federal Government from determining the 
     eligibility of any individual for any Federal public benefit 
     as defined section 701(c)), or for any State or local public 
     benefits (as defined in section 711(c)).
                   Subtitle E--Conforming Amendments

     SEC. 741. 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 VIII--FOOD ASSISTANCE
                     Subtitle A--Food Stamp Program

     SEC. 801. 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. 802. 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 access device, 
     including an electronic benefit transfer card or personal 
     identification number,''.

     SEC. 803. 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. 804. ADJUSTMENT OF THE 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 ``and (11) on'' and inserting ``(11) on'';
       (2) in paragraph (11), by inserting after ``October 1 
     thereafter'' the following: ``through the last day of the 
     first month following the month of enactment of the Work 
     First Act of 1996''; and
       (3) by striking the period at the end and inserting the 
     following: ``, and (12) on the first day of the second month 
     following the month of enactment of the Work First Act of 
     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 the first day of the 
     second month after the month of enactment of the Work First 
     Act of 1996, the Secretary may not reduce the cost of the 
     diet in effect on September 30, 1995.''.

     SEC. 805. 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. 806. 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. 807. 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 ``is 21 years of age or 
     younger'' and inserting ``has not reached the age of 18''.

     SEC. 808. ENERGY ASSISTANCE.

       (a) Counting Governmental Energy Assistance as Income.--
     Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) 
     is amended--
       (1) by striking paragraph (11); and
       (2) by redesignating paragraphs (12) through (16) as 
     paragraphs (11) through (15), respectively.
       (b) Standard Utility Allowance.--Section 5(e) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended by striking 
     ``If a State agency elects'' and all that follows through 
     ``season for which it was provided.''.
       (c) Conforming Amendments.--
       (1) Section 5(k) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(k)) is amended--
       (A) in paragraph (1)(B), by striking ``, not including 
     energy or utility-cost assistance,'';
       (B) in paragraph (2)--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraphs (D) through (H) as 
     subparagraphs (C) through (G), respectively; 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), 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 any other 
     provision of law'' and inserting ``(f) Notwithstanding any 
     other provision of law except the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.),'';
       (B) in paragraph (1), by striking ``food stamps,''; and
       (C) by striking paragraph (2).

     SEC. 809. REDUCTION IN THE STANDARD DEDUCTION.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking ``(e) In computing'' and all 
     that follows through ``June 30. All households'' and 
     inserting the following:
       ``(1) Standard deduction.--
       ``(A) In general.--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--
       ``(i) for fiscal year 1996, $130, $222, $183, $260, and 
     $114, respectively; and
       ``(ii) for fiscal years 1997 through 2000, $122, $208, 
     $171, $244, and $106, respectively.
       ``(B) Adjustment for inflation.--On October 1, 2000, and 
     each October 1 thereafter, the Secretary shall adjust the 
     standard deduction to the nearest lower dollar increment to 
     reflect changes in the Consumer Price Index for all urban 
     consumers published by the Bureau of Labor Statistics, for 
     items other than food, for the 12-month period ending the 
     preceding June 30.
       ``(2) Other deductions.--All households''.

     SEC. 810. MANDATORY USE OF A STANDARD UTILITY ALLOWANCE.

       Section 5(e)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(2)) (as amended by section 809) is amended by 
     inserting after ``only for excess utility costs.'' the 
     following: ``A State agency may make the use of a standard 
     utility allowance mandatory for all households with 
     qualifying utility costs if 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 the Secretary finds that the 
     standards will not result in increased program costs.''.

     SEC. 811. VEHICLE ASSET LIMITATION.

       The first sentence of section 5(g)(2) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking 
     ``through September 30, 1995'' and all that follows through 
     ``such date and on'' and inserting ``and shall be adjusted on 
     October 1, 1996, and''.

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

       Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(k)(2)) (as amended by section 808(c)(1)) is amended--
       (1) by striking subparagraph (E); and
       (2) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively.

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

       Section 6(b)(1) 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. 814. 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;

[[Page S8208]]

       (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. 815. DISQUALIFICATION.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 816. 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''; and
       (B) by inserting ``work,'' after ``skills, training,'';
       (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 the 
     payment or reimbursement shall not 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 Food Stamp Act of 1977 
     (7 U.S.C. 2025(h)) is amended by striking ``(h)(1)(A) The 
     Secretary'' and

[[Page S8209]]

     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, $75,000,000;
       ``(ii) for fiscal year 1997, $85,000,000;
       ``(iii) for fiscal year 1998, $95,000,000; and
       ``(iv) for fiscal years 1999 through 2002, $100,000,000.
       ``(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).
       ``(C) Reallocation.--
       ``(i) Notification.--A State agency shall promptly notify 
     the Secretary if the State agency determines that the State 
     agency will not expend all of the funds allocated to the 
     State agency under subparagraph (B).
       ``(ii) Reallocation.--On notification under clause (i), the 
     Secretary shall reallocate the funds that the State agency 
     will not expend as the Secretary considers appropriate and 
     equitable.
       ``(D) Minimum allocation.--Notwithstanding subparagraphs 
     (A) through (C), the Secretary shall ensure that each State 
     agency operating an employment and training program shall 
     receive not less than $50,000 in each fiscal year.''.
       (c) Additional Matching Funds.--Section 16(h)(2) of the 
     Food Stamp Act of 1977 (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 Food Stamp Act of 1977 
     (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. 817. COMPARABLE TREATMENT FOR DISQUALIFICATION.

       (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 
     U.S.C. 2015) is amended by adding at the end 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. 818. DISQUALIFICATION OF FLEEING FELONS.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 817) is amended by adding at the end the 
     following:
       ``(j) 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. 819. COOPERATION WITH CHILD SUPPORT AGENCIES.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 818) is amended by adding at the end the 
     following:
       ``(k) 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.
       ``(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.).
       ``(l) Noncustodial Parent's Cooperation With Child Support 
     Agencies.--At the option of a State agency, no individual who 
     fails to make legally obligated child support payments shall 
     be eligible to participate in the food stamp program unless 
     the individual is unemployed or establishes that the child 
     support award is inconsistent with applicable guidelines.''.

     SEC. 820. WORK REQUIREMENT.

       Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as 
     amended by section 819) is amended by adding at the end the 
     following:
       ``(m) 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).
       ``(2) Work requirement.--No individual shall be eligible to 
     participate in the food stamp program as a member of any 
     household if, during the preceding 12-month period, the 
     individual received food stamp benefits for not less than 6 
     months during which the individual did not--
       ``(A) work 20 hours or more per week, averaged monthly; or
       ``(B) participate in and comply with a workfare program 
     under section 20 or a comparable State or local workfare 
     program;
       ``(C) participate in and comply with the requirements of an 
     approved employment and training program under subsection 
     (d)(4); or
       ``(D) participate in and comply with the requirements of a 
     work program for 20 hours or more per week, as determined by 
     the State agency.
       ``(3) Exception.--Paragraph (2) shall not apply to an 
     individual if the individual is--
       ``(A) under 18 or over 50 years of age;
       ``(B) medically certified as physically or mentally unfit 
     for employment;
       ``(C) a parent or other member of a household with a 
     dependent child under 18 years of age;
       ``(D) a pregnant woman;
       ``(E) unable to participate in an employment and training 
     program because the State in which the individual resides 
     does not provide sufficient opportunities for participation 
     in such a program; or
       ``(F) otherwise exempt under section 6(d)(2).
       ``(4) Waiver.--
       ``(A) In general.--The Secretary may waive the 
     applicability of paragraph (2) to any group of individuals in 
     the State if the Secretary makes a determination that the 
     area in which the individuals reside--
       ``(i) has an unemployment rate of over 8 percent; or
       ``(ii) does not have a sufficient number of jobs to provide 
     employment for the individuals.
       ``(B) Report.--The Secretary shall report the basis for a 
     waiver under subparagraph (A) to the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate.''.

     SEC. 821. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

       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.--Not later than October 1, 2002, each 
     State agency shall implement an electronic benefit transfer 
     system under which household benefits determined under 
     section 8(a) are issued from and stored in a central 
     databank, unless the Secretary provides a waiver for a State 
     agency that faces unusual barriers to implementing an 
     electronic benefit transfer system.
       ``(B) 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.
       ``(C) 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

[[Page S8210]]

       ``(iii) the need to permit monitoring and investigations by 
     authorized law enforcement agencies.''; and
       (2) by adding at the end the following:
       ``(7) 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.
       ``(8) 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.''.

     SEC. 822. MINIMUM BENEFIT ADJUSTMENTS.

       The proviso of 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. 823. PRORATED 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. 824. 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. 825. FAILURE TO COMPLY WITH OTHER WELFARE OR 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) Failure To Comply With Other Welfare or Public 
     Assistance Programs.--If the benefits of a household are 
     reduced under a Federal, State, or local law relating to a 
     welfare or public assistance program because of a penalty or 
     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, the household may not receive an increased 
     allotment as a result of a decrease in the income of the 
     household to the extent that the decrease is the result of 
     the reduction.''.

     SEC. 826. 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. 827. 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)--
       (A) in paragraph (3)--
       (i) by striking ``agency shall--'' and all that follows 
     through ``(E) process applications'' and inserting ``agency 
     shall process applications''; and
       (ii) by striking ``verified under this Act,'' and all that 
     follows through ``and that the State'' and inserting 
     ``verified under this Act, and that the State''; and
       (B) in paragraph (19)--
       (i) by striking ``that information is'' and inserting ``at 
     the option of the State agency, that information may be''; 
     and
       (ii) 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. 828. 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 (17);''.

     SEC. 829. 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. 830. 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. 831. 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; or
       ``(B) any other means of collection.
       ``(2) Alternative means of repayment.--At the option of a 
     State agency, a household may be given notice permitting the 
     household to elect another means of repayment and giving the 
     household 10 days to make the election before the State 
     agency commences action to reduce the household's monthly 
     allotment.
       ``(3) Maximum reduction.--A State agency may 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) Hardship.--A State agency may waive the use of an 
     allotment reduction under paragraph (1)(A) as a means of 
     collecting a claim arising from an error of the State agency 
     if the collection would cause a hardship (as defined by the 
     State agency) on the household. The State agency shall 
     continue to pursue all other lawful means of collection under 
     paragraph (1)(B).''; and
       (2) in subsection (d), 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 Amendment.--Section 11(e)(8)(C) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)), as amended by 
     section 828, is amended by inserting after ``Code'' 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 Food Stamp Act of 
     1977 (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 
     ``25 percent of the overissuances collected by the State 
     agency under section 13, except those overissuances arising 
     from an error of the State agency''.
       (d) State Agency Collection of Federal Tax Refunds.--
     Section 6402(d) of the Internal Revenue Code of 1986 is 
     amended--
       (1) in paragraph (1), by inserting after ``any Federal 
     agency'' the following: ``(or any State agency that has the 
     responsibility for the administration of the food stamp 
     program operated under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.))''; and
       (2) in the second sentence of paragraph (2), by inserting 
     after ``a Federal agency'' the

[[Page S8211]]

     following: ``(or a State agency that has the responsibility 
     for the administration of the food stamp program operated 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.))''.

     SEC. 832. RESPONSE TO WAIVERS.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended by adding at the end the following:
       ``(C) 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. 833. 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. 26. 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; 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.
       ``(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) simplifies administration of State programs while 
     furthering the goal of allowing low-income households to 
     obtain a more nutritious diet;
       ``(B) complies with this section;
       ``(C) contains sufficient documentation that the plan will 
     not increase Federal costs for any fiscal year; and
       ``(D) will not substantially alter, as determined by the 
     Secretary, the appropriate distribution of benefits according 
     to household need.
       ``(e) Increased Federal Costs.--
       ``(1) Determination.--During each fiscal year and not later 
     than 90 days after the end of each fiscal year, the Secretary 
     shall determine whether a Program being carried out by a 
     State agency is increasing Federal costs under this Act above 
     the Federal costs incurred under the food stamp program in 
     operation in the State or political subdivision of the State 
     for the fiscal year prior to the implementation of the 
     Program, adjusted for any changes in--
       ``(A) participation;
       ``(B) the income of participants in the food stamp program 
     that is not attributable to public assistance; and
       ``(C) the thrifty food plan under section 3(o).
       ``(2) Notification.--If the Secretary determines that the 
     Program has increased Federal costs under this Act for any 
     fiscal year or any portion of any fiscal year, the Secretary 
     shall notify the State not later than 30 days after the 
     Secretary makes the determination under paragraph (1).
       ``(3) Enforcement.--
       ``(A) Corrective action.--Not later than 90 days after the 
     date of a notification under paragraph (2), the State shall 
     submit a plan for approval by the Secretary for prompt 
     corrective action that is designed to prevent the Program 
     from increasing Federal costs under this Act.
       ``(B) Termination.--If the State does not submit a plan 
     under subparagraph (A) or carry out a plan approved by the 
     Secretary, the Secretary shall terminate the approval of the 
     State agency operating the Program and the State agency shall 
     be ineligible to operate a future Program.
       ``(f) Rules and Procedures.--
       ``(1) In general.--In operating a Program, a State or 
     political subdivision of a State may follow the rules and 
     procedures established by the State or political subdivision 
     under a State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) or under the food 
     stamp program.
       ``(2) 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), (9), (15), (17), (19), (23), and (24) 
     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)) is amended by adding at the end the 
     following:
       ``(26) if a State elects to carry out a Simplified Food 
     Stamp Program under section 26, 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; and
       ``(B) 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 827) is 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. 834. 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 is authorized 
     to issue regulations establishing specific time periods 
     during which authorization to accept and redeem coupons under 
     the food stamp program shall be valid.''.

     SEC. 835. SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF 
                   STORES BASED ON LACK OF BUSINESS INTEGRITY.

       Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(a)), as amended by section 834, is amended by adding at 
     the end the following:
       ``(4) Periods for participation of stores and concerns.--
     The Secretary may issue regulations establishing specific 
     time periods during which a retail food store or wholesale 
     food concern that has an application for approval to accept 
     and redeem coupons denied or that has an approval withdrawn 
     on the basis of business integrity and reputation cannot 
     submit a new application for approval. The periods shall 
     reflect the severity of business integrity infractions that 
     are the basis of the denials or withdrawals.''.

     SEC. 836. 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. 837. WAITING PERIOD FOR STORES THAT INITIALLY FAIL TO 
                   MEET AUTHORIZATION CRITERIA.

       Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(d)) is amended by adding at the end the following: ``A 
     retail food store or wholesale food concern that has an 
     application for approval to accept and redeem coupons denied 
     because the store or concern does not meet criteria for 
     approval established by the Secretary by regulation may not 
     submit a new application for 6 months from the date of the 
     denial.''.

     SEC. 838. MANDATORY CLAIMS COLLECTION METHODS.

       Section 13(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2022(d)) is amended--
       (1) by striking ``may be recovered'' and inserting ``shall 
     be recovered''; and

[[Page S8212]]

       (2) by inserting before the period at the end the 
     following: ``or a refund of Federal taxes under section 3720A 
     of title 31, United States Code.''.

     SEC. 839. BASES FOR SUSPENSIONS AND DISQUALIFICATIONS.

       Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2021(a)) is amended by adding at the end the following: 
     ``Regulations issued pursuant to this Act shall provide 
     criteria for the finding of a violation, and the suspension 
     or disqualification of a retail food store or wholesale food 
     concern, on the basis of evidence that may include facts 
     established through on-site investigations, inconsistent 
     redemption data, or evidence obtained through transaction 
     reports under electronic benefits transfer systems.''.

     SEC. 840. DISQUALIFICATION OF STORES PENDING JUDICIAL AND 
                   ADMINISTRATIVE REVIEW.

       (a) Authority.--Section 12(a) of the Food Stamp Act of 1977 
     (7 U.S.C. 2021(a)), as amended by section 839, is amended by 
     adding at the end the following: ``The regulations may 
     establish criteria under which the authorization of a retail 
     food store or wholesale food concern to accept and redeem 
     coupons may be suspended at the time the store or concern is 
     initially found to have committed a violation of a 
     requirement of the food stamp program. The suspension may 
     coincide with the period of a review under section 14. The 
     Secretary shall not be liable for the value of any sales lost 
     during a suspension or disqualification period.''.
       (b) Review.--Section 14(a) of the Act (7 U.S.C. 2023(a)) is 
     amended--
       (1) in the first sentence, by striking ``disqualified or 
     subjected'' and inserting ``suspended, disqualified, or 
     subjected'';
       (2) in the fifth sentence, by inserting before the period 
     at the end the following: ``, except that, in the case of the 
     suspension of a retail food store or wholesale food concern 
     under section 12(a), the suspension shall remain in effect 
     pending any judicial or administrative review of the proposed 
     disqualification action, and the period of suspension shall 
     be considered a part of any period of disqualification that 
     is imposed''; and
       (3) by striking the last sentence.

     SEC. 841. 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)(1) The Secretary shall issue regulations providing 
     criteria for the disqualification of an approved retail food 
     store and a wholesale food concern that is disqualified from 
     accepting benefits under the special supplemental nutrition 
     program for women, infants, and children established under 
     section 17 of the Child Nutrition Act of 1966 (7 U.S.C. 
     1786).
       ``(2) A disqualification under paragraph (1)--
       ``(A) shall be for the same period as the disqualification 
     from the program referred to in paragraph (1);
       ``(B) may begin at a later date than the disqualification 
     from the program referred to in paragraph (1); and
       ``(C) notwithstanding section 14, shall not be subject to 
     judicial or administrative review.''.

     SEC. 842. PERMANENT DEBARMENT OF RETAILERS WHO INTENTIONALLY 
                   SUBMIT FALSIFIED APPLICATIONS.

       Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021), 
     as amended by section 841, is amended by adding at the end 
     the following:
       ``(h)(1) The Secretary shall issue regulations providing 
     for the permanent disqualification of a retail food store, or 
     wholesale food concern, that knowingly submits an application 
     for approval to accept and redeem coupons that contains false 
     information about a substantive matter that was a basis for 
     approving the application.
       ``(2) A disqualification under paragraph (1) shall be 
     subject to judicial and administrative review under section 
     14, except that the disqualification shall remain in effect 
     pending the review.''.

     SEC. 843. CRIMINAL FORFEITURE.

       Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 2024) is 
     amended by adding at the end the following:
       ``(h)(1) Any person convicted of violating subsection (b) 
     or (c) involving food stamp benefits having an aggregate 
     value of not less than $5,000, shall forfeit to the United 
     States--
       ``(A) any food stamp benefits and any property 
     constituting, or derived from, or traceable to any proceeds 
     the person obtained directly or indirectly as a result of the 
     violation; and
       ``(B) any food stamp benefits and any property of the 
     person used, or intended to be used, in any manner or part, 
     to commit, or to facilitate the commission of the violation.
       ``(2) In imposing a sentence on a person under paragraph 
     (1), a court shall order that the person forfeit to the 
     United States all property described in this subsection.
       ``(3) Any food stamp benefits or property subject to 
     forfeiture under this subsection, any seizure or disposition 
     of the benefits or property, and any administrative or 
     judicial proceeding relating to the benefits or property, 
     shall be governed by subsections (b), (c), (e), and (g) 
     through (p) of section 413 of the Comprehensive Drug Abuse 
     Prevention and Control Act of 1970 (21 U.S.C. 853), if not 
     inconsistent with this subsection.
       ``(4) This subsection shall not apply to property referred 
     to in subsection (g).''.

     SEC. 844. EFFECTIVE DATE.

       Except as otherwise provided in this subtitle, this 
     subtitle and the amendments made by this subtitle shall 
     become effective on the first day of the second month 
     following the month of the enactment of this Act.
                  Subtitle B--Child Nutrition Programs

     SEC. 851. REIMBURSEMENT RATE ADJUSTMENTS.

       (a) In General.--
       (1) Commodity rate.--Section 6(e)(1)(B) of the National 
     School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by 
     striking ``\1/4\ cent'' and inserting ``lower cent 
     increment''.
       (2) Lunch, breakfast, and supplement rates.--The last 
     sentence of section 11(a)(3)(B) of the National School Lunch 
     Act (42 U.S.C. 1759a(a)(3)(B)) is amended by striking ``one-
     fourth cent'' and inserting ``lower cent increment''.
       (3) Summer program rates.--The first proviso of section 
     13(b)(1) of the National School Lunch Act (42 U.S.C. 
     1761(b)(1)) is amended by striking ``one-fourth cent'' and 
     inserting ``lower cent increment''.
       (4) Family day care rates.--The last sentence of section 
     17(f)(3)(A) of the National School Lunch Act (42 U.S.C. 
     1766(f)(3)(A)) is amended by striking ``one-fourth cent'' and 
     inserting ``lower cent increment''.
       (5) Special milk program rates.--Section 3(a)(8) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1772(a)(8)) is amended 
     by striking ``one-fourth cent'' and inserting ``lower cent 
     increment''.
       (6) Severe need rates.--Section 4(b)(2)(B)(ii) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773(b)(2)(B)(ii) is amended 
     by striking ``one-fourth cent'' and inserting ``lower cent 
     increment''.
       (b) Effective Dates.--The amendments made by subsection (a) 
     shall become effective on July 1, 1996.

     SEC. 852. DIRECT FEDERAL EXPENDITURES.

       Section 6(g)(1) of the National School Lunch Act (42 U.S.C. 
     1755(g)(1)) is amended by striking ``12 percent'' and 
     inserting ``8 percent''.

     SEC. 853. IMPROVED TARGETING OF DAY CARE HOME REIMBURSEMENTS.

       (a) Restructured Day Care Home Reimbursements.--Section 
     17(f)(3) of the National School Lunch Act (42 U.S.C. 
     1766(f)(3)) 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 eligibility requirements 
     for free or reduced price meals under section 9 and whose 
     eligibility 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 eligibility 
     requirements 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 October 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

[[Page S8213]]

     the criteria set forth in clause (ii)(I), the reimbursement 
     factors shall be $1 for lunches and suppers, 30 cents for 
     breakfasts, and 15 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 
     eligibility requirements 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 meet the eligibility requirements 
     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 do 
     not meet the eligibility requirements for free or reduced 
     priced meals under section 9, 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 eligibility information, 
     as determined by the Secretary, from any parent or other 
     caretaker to make the determinations specified in subclause 
     (II) and shall make the determinations in accordance with 
     rules prescribed by the Secretary.
       ``(bb) Categorical eligibility.--In making a determination 
     under item (aa), a family or group day care home sponsoring 
     organization may consider a child participating in or 
     subsidized under, or a child with a parent participating in 
     or subsidized under, a federally or State supported child 
     care or other benefit program with an income eligibility 
     limit that does not exceed the income eligibility guidelines 
     for free or reduced price meals under section 9 to be a child 
     who is eligible for free or reduced price meals 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 eligibility information collected 
     from parents or other caretakers.''.
       (b) Grants to States To Provide Assistance to Family or 
     Group Day Care Homes.--Section 17(f)(3) of the National 
     School Lunch Act (42 U.S.C. 1766(f)(3)) 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.--The Secretary shall reserve $5,000,000 
     of the amount made available to carry out this section for 
     fiscal year 1996.
       ``(II) Purpose.--The Secretary shall use the funds reserved 
     under subclause (I) to provide grants to States for the 
     purpose of providing assistance, including grants, to family 
     or group 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.

       ``(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 or group day care homes participating in the 
     program in a State during fiscal year 1994 as a percentage of 
     the number of all family or group 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).''.
       (c) Provision of Data.--Section 17(f)(3) of the National 
     School Lunch Act (42 U.S.C. 1766(f)(3)) (as amended by 
     subsection (b)) is amended by adding at the end the 
     following:
       ``(E) Provision of data to family or group day care home 
     sponsoring organizations.--
       ``(i) Census data.--The Secretary shall provide to each 
     State agency administering a child and adult care food 
     program under this section data from the most recent 
     decennial census survey or other appropriate census survey 
     for which the data are available showing which areas in the 
     State meet the requirements of subparagraph (A)(ii)(I)(aa). 
     The State agency shall provide the data to family or group 
     day care home sponsoring organizations located in the State.
       ``(ii) School data.--

       ``(I) In general.--A State agency administering the 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 data for each elementary school in the 
     State, or shall direct each school within the State to 
     provide data for the school, to approved family or group day 
     care home sponsoring organizations that request the data, on 
     the percentage of enrolled children who are certified 
     eligible for free or reduced price meals.
       ``(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.''.
       (d) Conforming Amendment.--Section 17(c) of the National 
     School Lunch Act (42 U.S.C. 1766(c)) 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).
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall become effective on the 
     date of enactment of this section.
       (2) Improved targeting of day care home reimbursements.--
     The amendments made by subsections (a), (c), and (d) shall 
     become effective on August 1, 1996.

     SEC. 854. ELIMINATION OF STARTUP AND EXPANSION GRANTS.

       (a) In General.--Section 4 of the Child Nutrition Act of 
     1966 (42 U.S.C. 1773) is amended by striking subsection (g).
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on October 1, 1996.

     SEC. 855. AUTHORIZATION OF APPROPRIATIONS.

       Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1788(i)) 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 in the State, except that no State shall receive 
     an amount that is less than $75,000 per fiscal year.
       ``(ii) Insufficient funds.--If an 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.''.
TITLE IX--SOCIAL SERVICES BLOCK GRANT; EITC; CHILD ABUSE PREVENTION AND 
                               TREATMENT
  Subtitle A--Reduction in Block Grants to States for Social Services

     SEC. 901. 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.''.
               Subtitle B--Reform of Earned Income Credit

     SEC. 911. EARNED INCOME CREDIT AND OTHER TAX BENEFITS DENIED 
                   TO INDIVIDUALS FAILING TO PROVIDE TAXPAYER 
                   IDENTIFICATION NUMBERS.

       (a) Earned Income Credit.--
       (1) In general.--Section 32(c)(1) of the Internal Revenue 
     Code of 1986 (relating to individuals eligible to claim the 
     earned income credit) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Identification number requirement.--The term 
     `eligible individual' does

[[Page S8214]]

     not include any individual who does not include on the return 
     of tax for the taxable year--
       ``(i) such individual's taxpayer identification number, and
       ``(ii) if the individual is married (within the meaning of 
     section 7703), the taxpayer identification number of such 
     individual's spouse.''
       (2) Special identification number.--Section 32 of such Code 
     is amended by adding at the end the following new subsection:
       ``(l) Identification Numbers.--Solely for purposes of 
     subsections (c)(1)(F) and (c)(3)(D), a taxpayer 
     identification number means a social security number issued 
     to an individual by the Social Security Administration (other 
     than a social security number issued pursuant to clause (II) 
     (or that portion of clause (III) that relates to clause (II)) 
     of section 205(c)(2)(B)(i) of the Social Security Act).''
       (b) Personal Exemption.--
       (1) In general.--Section 151 of such Code (relating to 
     allowance of deductions for personal exemptions) is amended 
     by adding at the end the following new subsection:
       ``(e) Identifying Information Required.--No exemption shall 
     be allowed under this section with respect to any individual 
     unless the TIN of such individual is included on the return 
     claiming the exemption.''
       (2) Conforming amendments.--
       (A) Subsection (e) of section 6109 of such Code is 
     repealed.
       (B) Section 6724(d)(3) of such Code is amended by adding 
     ``and'' at the end of subparagraph (C), by striking 
     subparagraph (D), and by redesignating subparagraph (E) as 
     subparagraph (D).
       (c) Dependent Care Credit.--Subsection (e) of section 21 of 
     such Code (relating to expenses for household and dependent 
     care services necessary for gainful employment) is amended by 
     adding at the end the following new paragraph:
       ``(10) Identifying information required with respect to 
     qualifying individuals.--No credit shall be allowed under 
     this section with respect to any qualifying individual unless 
     the TIN of such individual is included on the return claiming 
     the credit.''
       (d) Extension of Procedures Applicable to Mathematical or 
     Clerical Errors.--Section 6213(g)(2) of such Code (relating 
     to the definition of mathematical or clerical errors) is 
     amended by striking ``and'' at the end of subparagraph (D), 
     by striking the period at the end of subparagraph (E) and 
     inserting a comma, and by adding after subparagraph (E) the 
     following new subparagraphs:
       ``(F) an omission of a correct TIN required under section 
     21 (relating to expenses for household and dependent care 
     services necessary for gainful employment), section 32 
     (relating to the earned income credit), or section 151 
     (relating to allowance of deductions for personal exemptions) 
     to be included on a return, and
       ``(G) an entry on a return claiming the credit under 
     section 32 with respect to net earnings from self-employment 
     described in section 32(c)(2)(A) to the extent the tax 
     imposed by section 1401 (relating to self-employment tax) on 
     such net earnings has not been paid.''
       (e) Effective Date.--The amendments made by this section 
     shall apply with respect to returns the due date for which 
     (without regard to extensions) is more than 30 days after the 
     date of the enactment of this Act.

     SEC. 912. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON 
                   BASIS OF DISQUALIFIED INCOME.

       (a) Reduction in Disqualified Income Threshold.--
       (1) In general.--Section 32(i)(1) of the Internal Revenue 
     Code of 1986 (relating to denial of credit for individuals 
     having excessive investment income) is amended by striking 
     ``$2,350'' and inserting ``$2,200''.
       (2) Adjustment for inflation.--Section 32(j) of such Code 
     is amended to read as follows:
       ``(j) Inflation Adjustments.--
       ``(1) In general.--In the case of any taxable year 
     beginning after the applicable calendar year, each dollar 
     amount referred to in paragraph (2)(B) shall be increased by 
     an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, except that subparagraph (B) thereof shall be 
     applied by reference to the CPI for the calendar year 
     preceding the applicable calendar year rather than the CPI 
     for calendar year 1992.
       ``(2) Definitions, etc.--For purposes of paragraph (1)--
       ``(A) Applicable calendar year.--The term `applicable 
     calendar year' means--
       ``(i) 1994 in the case of the dollar amounts referred to in 
     clause (i) of subparagraph (B), and
       ``(ii) 1996 in the case of the dollar amount referred to in 
     clause (ii) of subparagraph (B).
       ``(B) Dollar amounts.--The dollar amounts referred to in 
     this subparagraph are--
       ``(i) the dollar amounts contained in subsection (b)(2)(A), 
     and
       ``(ii) the dollar amount contained in subsection (i)(1).
       ``(3) Rounding.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if any dollar amount after being increased under paragraph 
     (1) is not a multiple of $10, such dollar amount shall be 
     rounded to the nearest multiple of $10 (or, if such dollar 
     amount is a multiple of $5, such dollar amount shall be 
     increased to the next higher multiple of $10).
       ``(B) Disqualified income threshold amount.--If the dollar 
     amount referred to in paragraph (2)(B)(ii) after being 
     increased under paragraph (1) is not a multiple of $50, such 
     amount shall be rounded to the next lowest multiple of $50.''
       (b) Definition of Disqualified Income.--Paragraph (2) of 
     section 32(i) of such Code (defining disqualified income) is 
     amended by striking ``and'' at the end of subparagraph (B), 
     by striking the period at the end of subparagraph (C), and by 
     adding at the end the following new subparagraphs:
       ``(D) the capital gain net income (as defined in section 
     1222) of the taxpayer for such taxable year, and
       ``(E) the excess (if any) of--
       ``(i) the aggregate income from all passive activities for 
     the taxable year (determined without regard to any amount 
     included in earned income under subsection (c)(2) or 
     described in a preceding subparagraph), over
       ``(ii) the aggregate losses from all passive activities for 
     the taxable year (as so determined).

     For purposes of subparagraph (E), the term `passive activity' 
     has the meaning given such term by section 469.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.

     SEC. 913. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION 
                   FOR EARNED INCOME CREDIT.

       (a) In General.--Subsections (a)(2), (c)(1)(C), and 
     (f)(2)(B) of section 32 of the Internal Revenue Code of 1986 
     are each amended by striking ``adjusted gross income'' and 
     inserting ``modified adjusted gross income''.
       (b) Modified Adjusted Gross Income Defined.--Section 32(c) 
     of such Code (relating to definitions and special rules) is 
     amended by adding at the end the following new paragraph:
       ``(5) Modified adjusted gross income.--
       ``(A) In general.--The term `modified adjusted gross 
     income' means adjusted gross income determined without regard 
     to the amounts described in subparagraph (B).
       ``(B) Certain amounts disregarded.--An amount is described 
     in this subparagraph if it is--
       ``(i) the amount of losses from sales or exchanges of 
     capital assets in excess of gains from such sales or 
     exchanges to the extent such amount does not exceed the 
     amount under section 1211(b)(1),
       ``(ii) the net loss from estates and trusts,
       ``(iii) the excess (if any) of amounts described in 
     subsection (i)(2)(C)(ii) over the amounts described in 
     subsection (i)(2)(C)(i) (relating to nonbusiness rents and 
     royalties), and
       ``(iv) 50 percent of the net loss from the carrying on of 
     trades or businesses, computed separately with respect to--

       ``(I) trades or businesses (other than farming) conducted 
     as sole proprietorships,
       ``(II) trades or businesses of farming conducted as sole 
     proprietorships, and
       ``(III) other trades or businesses.

     For purposes of clause (iv), there shall not be taken into 
     account items which are attributable to a trade or business 
     which consists of the performance of services by the taxpayer 
     as an employee.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.
            Subtitle C--Child Abuse Prevention and Treatment

     SEC. 921. SHORT TITLE.

       This subtitle may be cited as the ``Child Abuse Prevention 
     and Treatment Act Amendments of 1996''.

     SEC. 922. REFERENCE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Child Abuse Prevention and Treatment 
     Act (42 U.S.C. 5101 et seq.).

     SEC. 923. FINDINGS.

       Section 2 (42 U.S.C. 5101 note) is amended--
       (1) in paragraph (1), the read as follows:
       ``(1) each year, close to 1,000,000 American children are 
     victims of abuse and neglect;'';
       (2) in paragraph (3)(C), by inserting ``assessment,'' after 
     ``prevention,'';
       (3) in paragraph (4)--
       (A) by striking ``tens of''; and
       (B) by striking ``direct'' and all that follows through the 
     semicolon and inserting ``tangible expenditures, as well as 
     significant intangible costs;'';
       (4) in paragraph (7), by striking ``remedy the causes of'' 
     and inserting ``prevent'';
       (5) in paragraph (8), by inserting ``safety,'' after 
     ``fosters the health,'';
       (6) in paragraph (10)--
       (A) by striking ``ensure that every community in the United 
     States has'' and inserting ``assist States and communities 
     with''; and
       (B) by inserting ``and family'' after ``comprehensive 
     child''; and
       (7) in paragraph (11)--
       (A) by striking ``child protection'' each place that such 
     appears and inserting ``child and family protection''; and
       (B) in subparagraph (D), by striking ``sufficient''.

     SEC. 924. OFFICE OF CHILD ABUSE AND NEGLECT.

       Section 101 (42 U.S.C.5101) is amended to read as follows:

[[Page S8215]]

     ``SEC. 101. OFFICE OF CHILD ABUSE AND NEGLECT.

       ``(a) Establishment.--The Secretary of Health and Human 
     Services may establish an office to be known as the Office on 
     Child Abuse and Neglect.
       ``(b) Purpose.--The purpose of the Office established under 
     subsection (a) shall be to execute and coordinate the 
     functions and activities of this Act. In the event that such 
     functions and activities are performed by another entity or 
     entities within the Department of Health and Human Services, 
     the Secretary shall ensure that such functions and activities 
     are executed with the necessary expertise and in a fully 
     coordinated manner involving regular intradepartmental and 
     interdepartmental consultation with all agencies involved in 
     child abuse and neglect activities.''.

     SEC. 925. ADVISORY BOARD ON CHILD ABUSE AND NEGLECT.

       Section 102 (42 U.S.C.5102) is amended to read as follows:

     ``SEC. 102. ADVISORY BOARD ON CHILD ABUSE AND NEGLECT.

       ``(a) Appointment.--The Secretary may appoint an advisory 
     board to make recommendations to the Secretary and to the 
     appropriate committees of Congress concerning specific issues 
     relating to child abuse and neglect.
       ``(b) Solicitation of Nominations.--The Secretary shall 
     publish a notice in the Federal Register soliciting 
     nominations for the appointment of members of the advisory 
     board under subsection (a).
       ``(c) Composition.--In establishing the board under 
     subsection (a), the Secretary shall appoint members from the 
     general public who are individuals knowledgeable in child 
     abuse and neglect prevention, intervention, treatment, or 
     research, and with due consideration to representation of 
     ethnic or racial minorities and diverse geographic areas, and 
     who represent--
       ``(1) law (including the judiciary);
       ``(2) psychology (including child development);
       ``(3) social services (including child protective 
     services);
       ``(4) medicine (including pediatrics);
       ``(5) State and local government;
       ``(6) organizations providing services to disabled persons;
       ``(7) organizations providing services to adolescents;
       ``(8) teachers;
       ``(9) parent self-help organizations;
       ``(10) parents' groups;
       ``(11) voluntary groups;
       ``(12) family rights groups; and
       ``(13) children's rights advocates.
       ``(d) Vacancies.--Any vacancy in the membership of the 
     board shall be filled in the same manner in which the 
     original appointment was made.
       ``(e) Election of Officers.--The board shall elect a 
     chairperson and vice-chairperson at its first meeting from 
     among the members of the board.
       ``(f) Duties.--Not later than 1 year after the 
     establishment of the board under subsection (a), the board 
     shall submit to the Secretary and the appropriate committees 
     of Congress a report, or interim report, containing--
       ``(1) recommendations on coordinating Federal, State, and 
     local child abuse and neglect activities with similar 
     activities at the Federal, State, and local level pertaining 
     to family violence prevention;
       ``(2) specific modifications needed in Federal and 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
       ``(3) recommendations for modifications needed to 
     facilitate coordinated national data collection with respect 
     to child protection and child welfare.''.

     SEC. 926. REPEAL OF INTERAGENCY TASK FORCE.

       Section 103 (42 U.S.C.5103) is repealed.

     SEC. 927. NATIONAL CLEARINGHOUSE FOR INFORMATION RELATING TO 
                   CHILD ABUSE.

       Section 104 (42 U.S.C.5104) is amended--
       (1) in subsection (a), to read as follows:
       ``(a) Establishment.--The Secretary shall through the 
     Department, or by one or more contracts of not less than 3 
     years duration let through a competition, establish a 
     national clearinghouse for information relating to child 
     abuse.'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Director'' and inserting ``Secretary'';
       (B) in paragraph (1)--
       (i) by inserting ``assessment,'' after ``prevention,''; and
       (ii) by striking ``, including'' and all that follows 
     through ``105(b)'' and inserting ``and'';
       (C) in paragraph (2)--
       (i) in subparagraph (A), by striking ``general population'' 
     and inserting ``United States'';
       (ii) in subparagraph (B), by adding ``and'' at the end 
     thereof;
       (iii) in subparagraph (C), by striking ``; and'' at the end 
     thereof and inserting a period; and
       (iv) by striking subparagraph (D); and
       (D) by striking paragraph (3); and
       (3) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Director'' and inserting ``Secretary'';
       (B) in paragraph (2), by striking ``that is represented on 
     the task force'' and inserting ``involved with child abuse 
     and neglect and mechanisms for the sharing of such 
     information among other Federal agencies and 
     clearinghouses'';
       (C) in paragraph (3), by striking ``State, regional'' and 
     all that follows and inserting the following: ``Federal, 
     State, regional, and local child welfare data systems which 
     shall include:
       ``(A) standardized data on false, unfounded, 
     unsubstantiated, and substantiated reports; and
       ``(B) information on the number of deaths due to child 
     abuse and neglect;'';
       (D) by redesignating paragraph (4) as paragraph (6); and
       (E) by inserting after paragraph (3), the following new 
     paragraphs:
       ``(4) through a national data collection and analysis 
     program and in consultation with appropriate State and local 
     agencies and experts in the field, collect, compile, and make 
     available State child abuse and neglect reporting information 
     which, to the extent practical, shall be universal and case 
     specific, and integrated with other case-based foster care 
     and adoption data collected by the Secretary;
       ``(5) compile, analyze, and publish a summary of the 
     research conducted under section 105(a); and''.

     SEC. 928. RESEARCH, EVALUATION AND ASSISTANCE ACTIVITIES.

       (a) Research.--Section 105(a) (42 (42 U.S.C. 5105(a)) is 
     amended--
       (1) in the section heading, by striking ``OF THE NATIONAL 
     CENTER ON CHILD ABUSE AND NEGLECT'';
       (2) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``, through the Center, conduct research on'' and inserting 
     ``, in consultation with other Federal agencies and 
     recognized experts in the field, carry out a continuing 
     interdisciplinary program of research that is designed to 
     provide information needed 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 such research 
     being field initiated. Such research program may focus on'';
       (B) by redesignating subparagraphs (A) through (C) as 
     subparagraph (B) through (D), respectively;
       (C) by inserting before subparagraph (B) (as so 
     redesignated) the following new subparagraph:
       ``(A) the nature and scope of child abuse and neglect;'';
       (D) in subparagraph (B) (as so redesignated), to read as 
     follows:
       ``(B) causes, prevention, assessment, identification, 
     treatment, cultural and socio-economic distinctions, and the 
     consequences of child abuse and neglect;'';
       (E) in subparagraph (D) (as so redesignated)--
       (i) by striking clause (ii); and
       (ii) in clause (iii), to read as follows:
       ``(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; and
       ``(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
       (3) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking ``and demonstrations''; and
       (ii) by striking ``paragraph (1)(A) and activities under 
     section 106'' and inserting ``paragraph (1)''; and
       (B) in subparagraph (B), by striking ``and demonstration''.
       (b) Repeal.--Subsection (b) of section 105 (42 U.S.C. 
     5105(b)) is repealed.
       (c) Technical Assistance.--Section 105(c) (42 U.S.C. 
     5105(c)) is amended--
       (1) by striking ``The Secretary'' and inserting:
       ``(1) In general.--The Secretary'';
       (2) by striking ``, through the Center,'';
       (3) by inserting ``State and local'' before ``public and 
     nonprofit'';
       (4) by inserting ``assessment,'' before ``identification''; 
     and
       (5) by adding at the end thereof the following new 
     paragraphs:
       ``(2) Evaluation.--Such technical assistance may include an 
     evaluation or identification of--

[[Page S8216]]

       ``(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 
     titles I and II.
       ``(3) Dissemination.--The Secretary may provide for and 
     disseminate information relating to various training 
     resources available at the State and local level to--
       ``(A) individuals who are engaged, or who intend to engage, 
     in the prevention, identification, and treatment of child 
     abuse and neglect; and
       ``(B) appropriate State and local officials 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.''.
       (d) Grants and Contracts.--Section 105(d)(2) (42 U.S.C. 
     5105(d)(2)) is amended by striking the second sentence.
       (e) Peer Review.--Section 105(e) (42 U.S.C. 5105(e)) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)--
       (i) by striking ``establish a formal'' and inserting ``, in 
     consultation with experts in the field and other federal 
     agencies, establish a formal, rigorous, and meritorious'';
       (ii) by striking ``and contracts''; and
       (iii) by adding at the end thereof the following new 
     sentence: ``The purpose of this process is to enhance the 
     quality and usefulness of research in the field of child 
     abuse and neglect.''; and
       (B) in subparagraph (B)--
       (i) by striking ``Office of Human Development'' and 
     inserting ``Administration for Children and Families''; and
       (ii) by adding at the end thereof the following new 
     sentence: ``The Secretary shall ensure that the peer review 
     panel utilizes scientifically valid review criteria and 
     scoring guidelines for review committees.''; and
       (2) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``, contract, or other financial assistance''; and
       (B) by adding at the end thereof the following flush 
     sentence:

     ``The Secretary shall award grants under this section on the 
     basis of competitive review.''.

     SEC. 929. GRANTS FOR DEMONSTRATION PROGRAMS.

       Section 106 (42 U.S.C. 5106) is amended--
       (1) in the section heading, by striking ``OR SERVICE'';
       (2) in subsection (a), to read as follows:
       ``(a) Demonstration Programs and Projects.--The Secretary 
     may make grants to, and enter into contracts with, public 
     agencies or nonprofit private agencies or organizations (or 
     combinations of such agencies or organizations) for time 
     limited, demonstration programs and projects for the 
     following purposes:
       ``(1) Training programs.--The Secretary may award grants to 
     public or private non-profit organizations under this 
     section--
       ``(A) for the training of professional and paraprofessional 
     personnel in the fields of medicine, law, education, 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;
       ``(B) 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;
       ``(C) 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; and
       ``(D) for the establishment of resource centers for the 
     purpose of providing information and training to 
     professionals working in the field of child abuse and 
     neglect.
       ``(2) Mutual support programs.--The Secretary may award 
     grants to private non-profit organizations (such as Parents 
     Anonymous) to establish or maintain a national network of 
     mutual support and self-help programs as a means of 
     strengthening families in partnership with their communities.
       ``(3) Other innovative programs and projects.--
       ``(A) In general.--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--
       ``(i) 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;
       ``(ii) provides, either directly or through referral, a 
     variety of community-linked services to assist families in 
     preventing child abuse and neglect; and
       ``(iii) provides further investigation and intensive 
     intervention where the child's safety is in jeopardy.
       ``(B) Kinship care.--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 or where 
     such relatives comply with the State child protection 
     standards.
       ``(C) Visitation centers.--The Secretary may award grants 
     to public or private nonprofit entities to assist such 
     entities in the establishment or operation of supervised 
     visitation centers where there is documented, highly 
     suspected, or elevated risk of child sexual, physical, or 
     emotional abuse where, due to domestic violence, there is an 
     ongoing risk of harm to a parent or child.'';
       (3) in subsection (c), by striking paragraphs (1) and (2); 
     and
       (4) by adding at the end thereof the following new 
     subsection:
       ``(d) 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. 930. STATE GRANTS FOR PREVENTION AND TREATMENT PROGRAMS.

       Section 107 (42 U.S.C. 5106a) is amended to read as 
     follows:

     ``SEC. 107. GRANTS TO STATES FOR CHILD ABUSE AND NEGLECT 
                   PREVENTION AND TREATMENT PROGRAMS.

       ``(a)  Development and Operation Grants.--The Secretary 
     shall make grants to the States, based on the population of 
     children under the age of 18 in each State that applies for a 
     grant under this section, for purposes of assisting the 
     States in improving the child protective service system of 
     each such State in--
       ``(1) the intake, assessment, screening, and investigation 
     of reports of abuse and neglect;
       ``(2)(A) creating and improving the use of 
     multidisciplinary teams and interagency protocols to enhance 
     investigations; and
       ``(B) improving legal preparation and representation, 
     including--
       ``(i) procedures for appealing and responding to appeals of 
     substantiated reports of abuse and neglect; and
       ``(ii) provisions for the appointment of a guardian ad 
     litem.
       ``(3) case management and delivery of services provided to 
     children and their families;
       ``(4) enhancing the general child protective system by 
     improving risk and safety assessment tools and protocols, 
     automation systems that support the program and track reports 
     of child abuse and neglect from intake through final 
     disposition and information referral systems;
       ``(5) developing, strengthening, and facilitating training 
     opportunities and requirements for individuals overseeing and 
     providing services to children and their families through the 
     child protection system;
       ``(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--
       ``(A) information and education programs or training 
     programs designed to improve the provision of services to 
     disabled infants with life-threatening conditions for--
       ``(i) professional and paraprofessional personnel concerned 
     with the welfare of disabled infants with life-threatening 
     conditions, including personnel employed in child protective 
     services programs and health-care facilities; and
       ``(ii) the parents of such infants; and
       ``(B) programs to assist in obtaining or coordinating 
     necessary services for families of disabled infants with 
     life-threatening conditions, including--
       ``(i) existing social and health services;
       ``(ii) financial assistance; and
       ``(iii) services necessary to facilitate adoptive placement 
     of any such infants who have been relinquished for adoption; 
     or
       ``(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.
       ``(b) Eligibility Requirements.--In order for a State to 
     qualify for a grant under subsection (a), such State shall 
     provide an assurance or certification, signed by the chief 
     executive officer of the State, that the State--
       ``(1) has in effect and operation a State law or Statewide 
     program relating to child abuse and neglect which ensures--
       ``(A) provisions or procedures for the reporting of known 
     and suspected instances of child abuse and neglect;
       ``(B) procedures for the immediate screening, safety 
     assessment, and prompt investigation of such reports;
       ``(C) procedures for immediate steps to be taken to ensure 
     and protect the safety of the

[[Page S8217]]

     abused or neglected child and of any other child under the 
     same care who may also be in danger of abuse or neglect;
       ``(D) provisions for 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;
       ``(E) methods to preserve the confidentiality of all 
     records in order to protect the rights of the child and of 
     the child's parents or guardians, including methods to ensure 
     that disclosure (and redisclosure) of information concerning 
     child abuse or neglect involving specific individuals is made 
     only to persons or entities that the State determines have a 
     need for such information directly related to the purposes of 
     this Act;
       ``(F) requirements for the prompt disclosure of all 
     relevant information to any Federal, State, or local 
     governmental entity, or any agent of such entity, with a need 
     for such information in order to carry out its 
     responsibilities under law to protect children from abuse and 
     neglect;
       ``(G) the cooperation of State law enforcement officials, 
     court of competent jurisdiction, and appropriate State 
     agencies providing human services;
       ``(H) provisions requiring, and procedures in place that 
     facilitate 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, except that nothing in this 
     section shall prevent State child protective service agencies 
     from keeping information on unsubstantiated reports in their 
     casework files to assist in future risk and safety 
     assessment; and
       ``(I) provisions and procedures requiring that in every 
     case involving an abused or neglected child which results in 
     a judicial proceeding, a guardian ad litem shall be appointed 
     to represent the child in such proceedings; and
       ``(2) has in place procedures for responding to the 
     reporting of medical neglect (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 system 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.
       ``(c) Additional Requirement.--Not later than 2 years after 
     the date of enactment of this section, the State shall 
     provide an assurance or certification that the State has in 
     place provisions, procedures, and mechanisms by which 
     individuals who disagree with an official finding of abuse or 
     neglect can appeal such finding.
       ``(d) State Program Plan.--To be eligible to receive a 
     grant under this section, a State shall submit every 5 years 
     a plan to the Secretary that specifies the child protective 
     service system area or areas described in subsection (a) that 
     the State intends to address with funds received under the 
     grant. Such plan shall, to the maximum extent practicable, be 
     coordinated with the plan of the State for child welfare 
     services and family preservation and family support services 
     under part B of title IV of the Social Security Act and shall 
     contain an outline of the activities that the State intends 
     to carry out using amounts provided under the grant to 
     achieve the purposes of this Act, including the procedures to 
     be used for--
       ``(1) receiving and assessing reports of child abuse or 
     neglect;
       ``(2) investigating such reports;
       ``(3) protecting children by removing them from dangerous 
     settings and ensuring their placement in a safe environment;
       ``(4) providing services or referral for services for 
     families and children where the child is not in danger of 
     harm;
       ``(5) providing services to individuals, families, or 
     communities, either directly or through referral, aimed at 
     preventing the occurrence of child abuse and neglect;
       ``(6) providing training to support direct line and 
     supervisory personnel in report-taking, screening, 
     assessment, decision-making, and referral for investigation; 
     and
       ``(7) providing training for individuals mandated to report 
     suspected cases of child abuse or neglect.
       ``(e) Restrictions Relating to Child Welfare Services.--
     Programs or projects relating to child abuse and neglect 
     assisted under part B of title IV of the Social Security Act 
     shall comply with the requirements set forth in paragraphs 
     (1) (A) and (B), and (2) of subsection (b).
       ``(f) Annual State Data Reports.--Each State to which a 
     grant is made under this part shall annually work with the 
     Secretary to provide, to the maximum extent practicable, a 
     report that includes the following:
       ``(1) The number of children who were reported to the State 
     during the year as abused or neglected.
       ``(2) Of the number of children described in paragraph (1), 
     the number with respect to whom such reports were--
       ``(A) substantiated;
       ``(B) unsubstantiated; and
       ``(C) determined to be false.
       ``(3) Of the number of children described in paragraph 
     (2)--
       ``(A) the number that did not receive services during the 
     year under the State program funded under this part or an 
     equivalent State program;
       ``(B) the number that received services during the year 
     under the State program funded under this part or an 
     equivalent State program; and
       ``(C) the number that were removed from their families 
     during the year by disposition of the case.
       ``(4) The number of families that received preventive 
     services from the State during the year.
       ``(5) The number of deaths in the State during the year 
     resulting from child abuse or neglect.
       ``(6) Of the number of children described in paragraph (5), 
     the number of such children who were in foster care.
       ``(7) The number of child protective service workers 
     responsible for the intake and screening of reports filed in 
     the previous year.
       ``(8) The agency response time with respect to each such 
     report with respect to initial investigation of reports of 
     child abuse or neglect.
       ``(9) The response time with respect to the provision of 
     services to families and children where an allegation of 
     abuse or neglect has been made.
       ``(10) The number of child protective service workers 
     responsible for intake, assessment, and investigation of 
     child abuse and neglect reports relative to the number of 
     reports investigated in the previous year.
       ``(g) Annual Report by the Secretary.--Within 6 months 
     after receiving the State reports under subsection (f), the 
     Secretary shall prepare a report based on information 
     provided by the States for the fiscal year under such 
     subsection and shall make the report and such information 
     available to the Congress and the national clearinghouse for 
     information relating to child abuse.''.

     SEC. 931. REPEAL.

       Section 108 (42 U.S.C. 5106b) is repealed.

     SEC. 932. MISCELLANEOUS REQUIREMENTS.

       Section 110 (42 U.S.C. 5106d) is amended by striking 
     subsection (c).

     SEC. 933. DEFINITIONS.

       Section 113 (42 U.S.C. 5106h) is amended--
       (1) by striking paragraphs (1) and (2);
       (2) by redesignating paragraphs (3) through (10) as 
     paragraphs (1) through (8), respectively; and
       (3) in paragraph (2) (as so redesignated), to read as 
     follows:
       ``(2) 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;''.

     SEC. 934. AUTHORIZATION OF APPROPRIATIONS.

       Section 114(a) (42 U.S.C. 5106h(a)) is amended to read as 
     follows:
       ``(a) In General.--
       ``(1) General authorization.--There are authorized to be 
     appropriated to carry out this title, $100,000,000 for fiscal 
     year 1996, and such sums as may be necessary for each of the 
     fiscal years 1997 through 2000.
       ``(2) Discretionary activities.--
       ``(A) In general.--Of the amounts appropriated for a fiscal 
     year under paragraph (1), the Secretary shall make available 
     33\1/3\ percent of such amounts to fund discretionary 
     activities under this title.
       ``(B) Demonstration projects.--Of the amounts made 
     available for a fiscal year under subparagraph (A), the 
     Secretary make available not more than 40 percent of such 
     amounts to carry out section 106.''.

     SEC. 935. RULE OF CONSTRUCTION.

       Title I (42 U.S.C. 5101 et seq.) is amended by adding at 
     the end thereof the following new section:

     ``SEC. 115. RULE OF CONSTRUCTION.

       ``(a) In General.--Nothing in this 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, at a minimum, 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. Case by case 
     determinations concerning the exercise of the authority of 
     this subsection shall be within the sole discretion of the 
     State.''.

[[Page S8218]]

     SEC. 936. TECHNICAL AMENDMENT.

       Section 1404A of the Victims of Crime Act of 1984 (42 
     U.S.C. 10603a) is amended--
       (1) by striking ``1402(d)(2)(D) and (d)(3)'' and inserting 
     ``1402(d)(2)''; and
       (2) by striking ``section 4(d)'' and inserting ``section 
     109''.
 Subtitle D--Community-Based Child Abuse and Neglect Prevention Grants

     SEC. 941. ESTABLISHMENT OF PROGRAM.

       Title II of the Child Abuse Prevention and Treatment Act 
     (42 U.S.C. 5116 et seq) is amended to read as follows:
     ``TITLE II--COMMUNITY-BASED FAMILY RESOURCE AND SUPPORT GRANTS

     ``SEC. 201. PURPOSE AND AUTHORITY.

       ``(a) Purpose.--It is the purpose of this Act 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.
       ``(b) Authority.--The Secretary shall make grants under 
     this title on a formula basis to the entity designated by the 
     State as the lead entity (hereafter referred to in this title 
     as the `lead entity') for the purpose of--
       ``(1) developing, operating, expanding and enhancing 
     Statewide networks of community-based, prevention-focused, 
     family resource and support programs that--
       ``(A) offer sustained assistance to families;
       ``(B) provide early, comprehensive, and holistic support 
     for all parents;
       ``(C) promote the development of parental competencies and 
     capacities, especially in young parents and parents with very 
     young children;
       ``(D) increase family stability;
       ``(E) improve family access to other formal and informal 
     resources and opportunities for assistance available within 
     communities;
       ``(F) support the additional needs of families with 
     children with disabilities; and
       ``(G) decrease the risk of homelessness;
       ``(2) fostering the development of a continuum of 
     preventive services for children and families through State 
     and community-based collaborations and partnerships both 
     public and private;
       ``(3) financing the start-up, maintenance, expansion, or 
     redesign of specific family resource and support program 
     services (such as respite services, child abuse and neglect 
     prevention activities, disability services, mental health 
     services, housing services, transportation, adult education, 
     home visiting and other similar services) identified by the 
     inventory and description of current services required under 
     section 205(a)(3) as an unmet need, and integrated with the 
     network of community-based family resource and support 
     program to the extent practicable given funding levels and 
     community priorities;
       ``(4) maximizing funding for the financing, planning, 
     community mobilization, collaboration, assessment, 
     information and referral, startup, 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 program; and
       ``(5) financing public information activities that focus on 
     the healthy and positive development of parents and children 
     and the promotion of child abuse and neglect prevention 
     activities.

     ``SEC. 202. ELIGIBILITY.

       ``A State shall be eligible for a grant under this title 
     for a fiscal year if--
       ``(1)(A) the chief executive officer of the State has 
     designated an entity to administer funds under this title for 
     the purposes identified under the authority of this title, 
     including to develop, implement, operate, enhance or expand a 
     Statewide network of community-based, prevention-focused, 
     family resource and support programs, child abuse and neglect 
     prevention activities and access to respite services 
     integrated with the Statewide network;
       ``(B) in determining which entity to designate under 
     subparagraph (A), the chief executive officer should give 
     priority consideration to the trust fund advisory board of 
     the State or an existing entity that leverages Federal, 
     State, and private funds for a broad range of child abuse and 
     neglect prevention activities and family resource programs, 
     and that is directed by an interdisciplinary, public-private 
     structure, including participants from communities; and
       ``(C) such lead entity is an existing public, quasi-public, 
     or nonprofit private entity with a demonstrated ability to 
     work with other State and community-based agencies to provide 
     training and technical assistance, and that has the capacity 
     and commitment to ensure the meaningful involvement of 
     parents who are consumers and who can provide leadership in 
     the planning, implementation, and evaluation of programs and 
     policy decisions of the applicant agency in accomplishing the 
     desired outcomes for such efforts;
       ``(2) the chief executive officer of the State provides 
     assurances that the lead entity will provide or will be 
     responsible for providing--
       ``(A) a network of community-based family resource and 
     support programs composed of local, collaborative, public-
     private partnerships directed by interdisciplinary structures 
     with balanced representation from private and public sector 
     members, parents, and public and private nonprofit service 
     providers and individuals and organizations experienced in 
     working in partnership with families with children with 
     disabilities;
       ``(B) direction to the network through an 
     interdisciplinary, collaborative, public-private structure 
     with balanced representation from private and public sector 
     members, parents, and public sector and private nonprofit 
     sector service providers; and
       ``(C) direction and oversight to the network through 
     identified goals and objectives, clear lines of communication 
     and accountability, the provision of leveraged or combined 
     funding from Federal, State and private sources, centralized 
     assessment and planning activities, the provision of training 
     and technical assistance, and reporting and evaluation 
     functions; and
       ``(3) the chief executive officer of the State provides 
     assurances that the lead entity--
       ``(A) has a demonstrated commitment to parental 
     participation in the development, operation, and oversight of 
     the Statewide network of community-based, prevention-focused, 
     family resource and support programs;
       ``(B) has a demonstrated ability to work with State and 
     community-based public and private nonprofit organizations to 
     develop a continuum of preventive, family centered, holistic 
     services for children and families through the Statewide 
     network of community-based, prevention-focused, family 
     resource and support programs;
       ``(C) has the capacity to provide operational support (both 
     financial and programmatic) and training and technical 
     assistance, to the Statewide network of community-based, 
     prevention-focused, family resource and support programs, 
     through innovative, interagency funding and interdisciplinary 
     service delivery mechanisms; and
       ``(D) will integrate its efforts with individuals and 
     organizations experienced in working in partnership with 
     families with children with disabilities and with the child 
     abuse and neglect prevention activities of the State, and 
     demonstrate a financial commitment to those activities.

     ``SEC. 203. AMOUNT OF GRANT.

       ``(a) Reservation.--The Secretary shall reserve 1 percent 
     of the amount appropriated under section 210 for a fiscal 
     year to make allotments to Indian tribes and tribal 
     organizations and migrant programs.
       ``(b) Allotment.--
       ``(1) In general.--Of the amounts appropriated for a fiscal 
     year under section 210 and remaining after the reservation 
     under subsection (a), the Secretary shall allot to each State 
     lead entity an amount equal to--
       ``(A) the State minor child amount for such State as 
     determined under paragraph (2); and
       ``(B) the State matchable amount for such State as 
     determined under paragraph (3).
       ``(2) State minor child amount.--The amount determined 
     under this paragraph for a fiscal year for a State shall be 
     equal to an amount that bears the same relationship to 50 
     percent of the amounts appropriated and remaining under 
     paragraph (1) for such fiscal year as the number of children 
     under 18 residing in the State bears to the total number of 
     children under 18 residing in all States, except that no 
     State shall receive less than $250,000.
       ``(3) State matchable amount.--The amount determined under 
     this paragraph for a fiscal year for a State shall be equal 
     to--
       ``(A)(i) 50 percent of the amounts appropriated and 
     remaining under paragraph (1) for such fiscal year; divided 
     by
       ``(ii) 50 percent of the total amount that all States have 
     directed through the respective lead agencies to the purposes 
     identified under the authority of this title for the fiscal 
     year, including foundation, corporate, and other private 
     funding, State revenues, and Federal funds, as determined by 
     the Secretary; multiplied by
       ``(B) 50 percent of the total amount that the State has 
     directed through the lead agency to the purposes identified 
     under the authority of this title for such fiscal year, 
     including foundation, corporate, and other private funding, 
     State revenues, and Federal funds.
       ``(c) Allocation.--Funds allotted to a State under this 
     section shall be awarded on a formula basis for a 3-year 
     period. Payment under such allotments shall be made by the 
     Secretary annually on the basis described in subsection (a).

     ``SEC. 204. EXISTING AND CONTINUATION GRANTS.

       ``(a) Existing Grants.--Notwithstanding the enactment of 
     this title, a State or entity that has a grant, contract, or 
     cooperative agreement in effect, on the date of enactment of 
     this title, under the Family Resource and Support Program, 
     the Community-Based Family Resource Program, the Family 
     Support Center Program, the Emergency Child Abuse Prevention 
     Grant Program, or the Temporary Child Care for Children with 
     Disabilities and Crisis Nurseries Programs shall continue to 
     receive funds under such programs, subject to the original 
     terms under which such funds were granted, through the end of 
     the applicable grant cycle.
       ``(b) Continuation Grants.--The Secretary may continue 
     grants for Family Resource

[[Page S8219]]

     and Support Program grantees, and those programs otherwise 
     funded under this Act, on a noncompetitive basis, subject to 
     the availability of appropriations, satisfactory performance 
     by the grantee, and receipt of reports required under this 
     Act, until such time as the grantee no longer meets the 
     original purposes of this Act.

     ``SEC. 205. APPLICATION.

       ``(a) In General.--A grant may not be made to a State under 
     this title unless an application therefore is submitted by 
     the State to the Secretary and such application contains the 
     types of information specified by the Secretary as essential 
     to carrying out the provisions of section 202, including--
       ``(1) a description of the lead entity that will be 
     responsible for the administration of funds provided under 
     this title and the oversight of programs funded through the 
     Statewide network of community-based, prevention-focused, 
     family resource and support programs which meets the 
     requirements of section 202;
       ``(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 provided 
     by public and private, nonprofit organizations, including 
     those funded by programs consolidated under this Act, will be 
     integrated into a developing continuum of family centered, 
     holistic, 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 services 
     operating in the State, and a description of current unmet 
     needs, will be provided;
       ``(4) a budget for the development, operation and expansion 
     of the State's network of community-based, prevention-
     focused, family resource and support programs that verifies 
     that the State will expend an amount equal to not less than 
     20 percent of the amount received under this title (in cash, 
     not in-kind) for activities under this title;
       ``(5) an assurance that funds received under this title 
     will supplement, not supplant, other State and local public 
     funds designated for the Statewide network of community-
     based, prevention-focused, family resource and support 
     programs;
       ``(6) an assurance that the State network of community-
     based, prevention-focused, 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 the meaningful involvement of parents who are 
     consumers and who can provide leadership in the planning, 
     implementation, and evaluation of the programs and policy 
     decisions of the applicant agency in accomplishing the 
     desired outcomes for such efforts;
       ``(8) a description of the criteria that the entity will 
     use to develop, or select and fund, individual community-
     based, prevention-focused, family resource and support 
     programs as part of network development, expansion or 
     enhancement;
       ``(9) a description of outreach activities that the entity 
     and the community-based, prevention-focused, family resource 
     and support programs will undertake 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 underserved or underrepresented groups;
       ``(10) a plan for providing operational support, training 
     and technical assistance to community-based, prevention-
     focused, family resource and support programs for 
     development, operation, expansion and enhancement activities;
       ``(11) a description of how the applicant entity's 
     activities and those of the network and its members will be 
     evaluated;
       ``(12) a description of that actions that the applicant 
     entity will take to advocate changes in State policies, 
     practices, procedures and regulations to improve the delivery 
     of prevention-focused, family resource and support program 
     services to all children and families; and
       ``(13) an assurance that the applicant entity will provide 
     the Secretary with reports at such time and containing such 
     information as the Secretary may require.

     ``SEC. 206. LOCAL PROGRAM REQUIREMENTS.

       ``(a) In General.--Grants made under this title shall be 
     used to develop, implement, operate, expand and enhance 
     community-based, prevention-focused, family resource and 
     support programs that--
       ``(1) assess community assets and needs through a planning 
     process that involves parents and local public agencies, 
     local nonprofit organizations, and private sector 
     representatives;
       ``(2) develop a strategy to provide, over time, a continuum 
     of preventive, holistic, family centered services to children 
     and families, especially to young parents and parents with 
     young children, through public-private partnerships;
       ``(3) provide--
       ``(A) core family resource and support services such as--
       ``(i) parent education, mutual support and self help, and 
     leadership services;
       ``(ii) early developmental screening of children;
       ``(iii) outreach services;
       ``(iv) community and social service referrals; and
       ``(v) follow-up services;
       ``(B) other core services, which must be provided or 
     arranged for through contracts or agreements with other local 
     agencies, including all forms of respite services to the 
     extent practicable; and
       ``(C) access to optional services, including--
       ``(i) child care, early childhood development and 
     intervention services;
       ``(ii) services and supports to meet the additional needs 
     of families with children with disabilities;
       ``(iii) job readiness services;
       ``(iv) educational services, such as scholastic tutoring, 
     literacy training, and General Educational Degree services;
       ``(v) self-sufficiency and life management skills training;
       ``(vi) community referral services; and
       ``(vii) peer counseling;
       ``(4) develop leadership roles for the meaningful 
     involvement of parents in the development, operation, 
     evaluation, and oversight of the programs and services;
       ``(5) provide leadership in mobilizing local public and 
     private resources to support the provision of needed family 
     resource and support program services; and
       ``(6) participate with other community-based, prevention-
     focused, family resource and support program grantees in the 
     development, operation and expansion of the Statewide 
     network.
       ``(b) Priority.--In awarding local grants under this title, 
     a lead entity shall give priority to community-based programs 
     serving low income communities and those serving young 
     parents or parents with young children, and to community-
     based family resource and support programs previously funded 
     under the programs consolidated under the Child Abuse 
     Prevention and Treatment Act Amendments of 1996, so long as 
     such programs meet local program requirements.

     ``SEC. 207. PERFORMANCE MEASURES.

       ``A State receiving a grant under this title, through 
     reports provided to the Secretary, shall--
       ``(1) demonstrate the effective development, operation and 
     expansion of a Statewide network of community-based, 
     prevention-focused, family resource and support programs that 
     meets the requirements of this title;
       ``(2) supply an inventory and description of the services 
     provided to families by local programs that meet identified 
     community needs, including core and optional services as 
     described in section 202;
       ``(3) demonstrate the establishment of new respite and 
     other specific new family resources services, and the 
     expansion of existing services, to address unmet needs 
     identified by the inventory and description of current 
     services required under section 205(a)(3);
       ``(4) describe the number of families served, including 
     families with children with disabilities, and the involvement 
     of a diverse representation of families in the design, 
     operation, and evaluation of the Statewide network of 
     community-based, prevention-focused, family resource and 
     support programs, and in the design, operation and evaluation 
     of the individual community-based family resource and support 
     programs that are part of the Statewide network funded under 
     this title;
       ``(5) demonstrate a high level of satisfaction among 
     families who have used the services of the community-based, 
     prevention-focused, family resource and support programs;
       ``(6) demonstrate the establishment or maintenance of 
     innovative funding mechanisms, at the State or community 
     level, that blend Federal, State, local and private funds, 
     and innovative, interdisciplinary service delivery 
     mechanisms, for the development, operation, expansion and 
     enhancement of the Statewide network of community-based, 
     prevention-focused, family resource and support programs;
       ``(7) describe the results of a peer review process 
     conducted under the State program; and
       ``(8) demonstrate an implementation plan to ensure the 
     continued leadership of parents in the on-going planning, 
     implementation, and evaluation of such community based, 
     prevention-focused, family resource and support programs.

     ``SEC. 208. NATIONAL NETWORK FOR COMMUNITY-BASED FAMILY 
                   RESOURCE PROGRAMS.

       ``The Secretary may allocate such sums as may be necessary 
     from the amount provided under the State allotment to support 
     the activities of the lead entity in the State--
       ``(1) to create, operate and maintain a peer review 
     process;
       ``(2) to create, operate and maintain an information 
     clearinghouse;
       ``(3) to fund a yearly symposium on State system change 
     efforts that result from the operation of the Statewide 
     networks of community-based, prevention-focused, family 
     resource and support programs;
       ``(4) to create, operate and maintain a computerized 
     communication system between lead entities; and
       ``(5) to fund State-to-State technical assistance through 
     bi-annual conferences.

     ``SEC. 209. DEFINITIONS.

         ``For purposes of this title:
       ``(1) Children with disabilities.--The term `children with 
     disabilities' has the same meaning given such term in section

[[Page S8220]]

     602(a)(2) of the Individuals with Disabilities Education Act.
       ``(2) Community referral services.--The term `community 
     referral services' means services provided under contract or 
     through interagency agreements to assist families in 
     obtaining needed information, mutual support and community 
     resources, including respite services, health and mental 
     health services, employability development and job training, 
     and other social services through help lines or other 
     methods.
       ``(3) Culturally competent.--The term `culturally 
     competent' means services, support, or other assistance that 
     is conducted or provided in a manner that--
       ``(A) is responsive to the beliefs, interpersonal styles, 
     attitudes, languages, and behaviors of those individuals and 
     families receiving services; and
       ``(B) has the greatest likelihood of ensuring maximum 
     participation of such individuals and families.
       ``(4) Family resource and support program.--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 title, 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, including all forms of respite services; 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.
       ``(5) National network for Community-Based Family Resource 
     Programs.--The term `network for community-based family 
     resource program' means the organization of State designated 
     entities who receive grants under this title, and includes 
     the entire membership of the Children's Trust Fund Alliance 
     and the National Respite Network.
       ``(6) Outreach services.--The term `outreach services' 
     means services provided to assist consumers, through 
     voluntary home visits or other methods, in accessing and 
     participating in family resource and support program 
     activities.
       ``(7) Respite services.--The term `respite services' means 
     short term care services provided in the temporary absence of 
     the regular caregiver (parent, other relative, foster parent, 
     adoptive parent, or guardian) to children who--
       ``(A) are in danger of abuse or neglect;
       ``(B) have experienced abuse or neglect; or
       ``(C) have disabilities, chronic, or terminal illnesses.

     Such services shall be provided within or outside the home of 
     the child, be short-term care (ranging from a few hours to a 
     few weeks of time, per year), and be intended to enable the 
     family to stay together and to keep the child living in the 
     home and community of the child.

     ``SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title, $108,000,000 for each of the fiscal years 1996 through 
     2000.''.

     SEC. 942. REPEALS.

       (a) Temporary Child Care for Children with Disabilities and 
     Crisis Nurseries Act.--The Temporary Child Care for Children 
     with Disabilities and Crisis Nurseries Act of 1986 (42 U.S.C. 
     5117 et seq.) is repealed.
       (b) Family Support Centers.--Subtitle F of title VII of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11481 
     et seq.) is repealed.
          Subtitle E--Family Violence Prevention and Services

     SEC. 951. REFERENCE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Family Violence Prevention and 
     Services Act (42 U.S.C. 10401 et seq.).

     SEC. 952. STATE DEMONSTRATION GRANTS.

       Section 303(e) (42 U.S.C. 10420(e)) is amended--
       (1) by striking ``following local share'' and inserting 
     ``following non-Federal matching local share''; and
       (2) by striking ``20 percent'' and all that follows through 
     ``private sources.'' and inserting ``with respect to an 
     entity operating an existing program under this title, not 
     less than 20 percent, and with respect to an entity intending 
     to operate a new program under this title, not less than 35 
     percent.''.

     SEC. 953. ALLOTMENTS.

       Section 304(a)(1) (42 U.S.C. 10403(a)(1)) is amended by 
     striking ``$200,000'' and inserting ``$400,000''.

     SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

       Section 310 (42 U.S.C. 10409) is amended--
       (1) in subsection (b), by striking ``80'' and inserting 
     ``70''; and
       (2) by adding at the end thereof the following new 
     subsections:
       ``(d) Grants for State Coalitions.--Of the amounts 
     appropriated under subsection (a) for each fiscal year, not 
     less than 10 percent of such amounts shall be used by the 
     Secretary for making grants under section 311.
       ``(e) Non-Supplanting Requirement.--Federal funds made 
     available to a State under this title shall be used to 
     supplement and not supplant other Federal, State, and local 
     public funds expended to provide services and activities that 
     promote the purposes of this title.''.
                   Subtitle F--Adoption Opportunities

     SEC. 961. REFERENCE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Child Abuse Prevention and Treatment 
     and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.).

     SEC. 962. FINDINGS AND PURPOSE.

       Section 201 (42 U.S.C. 5111) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``50 percent between 1985 and 1990'' and 
     inserting ``61 percent between 1986 and 1994''; and
       (ii) by striking ``400,000 children at the end of June, 
     1990'' and inserting ``452,000 as of June, 1994''; and
       (B) in paragraph (5), by striking ``local'' and inserting 
     ``legal''; and
       (C) in paragraph (7), to read as follows:
       ``(7)(A) currently, 40,000 children are free for adoption 
     and awaiting placement;
       ``(B) such children are typically school aged, in sibling 
     groups, have experienced neglect or abuse, or have a 
     physical, mental, or emotional disability; and
       ``(C) while the children are of all races, children of 
     color and older children (over the age of 10) are over 
     represented in such group;''; and
       (2) in subsection (b)--
       (A) by striking ``conditions, by--'' and all that follows 
     through ``providing a mechanism'' and inserting ``conditions, 
     by providing a mechanism''; and
       (B) by redesignating subparagraphs (A) through (C), as 
     paragraphs (1) through (3), respectively and by realigning 
     the margins of such paragraphs accordingly.

     SEC. 963. INFORMATION AND SERVICES.

       Section 203 (42 U.S.C. 5113) is amended--
       (1) in subsection (a), by striking the last sentence;
       (2) in subsection (b)--
       (A) in paragraph (6), to read as follows:
       ``(6) study the nature, scope, and effects of the placement 
     of children in kinship care arrangements, pre-adoptive, or 
     adoptive homes;'';
       (B) by redesignating paragraphs (7) through (9) as 
     paragraphs (8) through (10), respectively; and
       (C) by inserting after paragraph (6), the following new 
     paragraph:
       ``(7) study the efficacy of States contracting with public 
     or private nonprofit agencies (including community-based and 
     other organizations), or sectarian institutions for the 
     recruitment of potential adoptive and foster families and to 
     provide assistance in the placement of children for 
     adoption;''; and
       (3) in subsection (d)--
       (A) in paragraph (2)--
       (i) by striking ``Each'' and inserting ``(A) Each'';
       (ii) by striking ``for each fiscal year'' and inserting 
     ``that describes the manner in which the State will use funds 
     during the 3-fiscal years subsequent to the date of the 
     application to accomplish the purposes of this section. Such 
     application shall be''; and
       (iii) by adding at the end thereof the following new 
     subparagraph:
       ``(B) The Secretary shall provide, directly or by grant to 
     or contract with public or private nonprofit agencies or 
     organizations--
       ``(i) 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

[[Page S8221]]

     services, including post-legal adoption services; and
       ``(ii) other assistance to help State and local governments 
     replicate successful adoption-related projects from other 
     areas in the United States.''.

     SEC. 964. AUTHORIZATION OF APPROPRIATIONS.

       Section 205 (42 U.S.C. 5115) is amended--
       (1) in subsection (a), by striking ``$10,000,000,'' and all 
     that follows through ``203(c)(1)'' and inserting 
     ``$20,000,000 for fiscal year 1996, and such sums as may be 
     necessary for each of the fiscal years 1997 through 2000 to 
     carry out programs and activities authorized'';
       (2) by striking subsection (b); and
       (3) by redesignating subsection (c) as subsection (b).
          Subtitle G--Abandoned Infants Assistance Act of 1986

     SEC. 971. REAUTHORIZATION.

       Section 104(a)(1) of the Abandoned Infants Assistance Act 
     of 1988 (42 U.S.C. 670 note) is amended by striking 
     ``$20,000,000'' and all that follows through the end thereof 
     and inserting ``$35,000,000 for each of the fiscal years 1996 
     and 1997, and such sums as may be necessary for each of the 
     fiscal years 1998 through 2000''.
            Subtitle H--Reauthorization of Various Programs

     SEC. 981. 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.''.

     SEC. 982. 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''.
           TITLE X--EFFECTIVE DATE; MISCELLANEOUS PROVISIONS

     SEC. 1001. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act shall take 
     effect on October 1, 1996.
       (b) One Year Extension of JOBS Program.--The authorization 
     for the JOBS program under part F of title IV of the Social 
     Security Act, as in effect on the date of the enactment of 
     this Act shall be extended through fiscal year 1997 for 
     $1,000,000,000 and allocated to the States in the same manner 
     as under section 495 of the Social Security Act, as added by 
     section 201 of this Act, except that the participation rate 
     under clause (vi) of section 403(l)(3)(A) of such Act, as so 
     in effect, shall be applied by substituting ``25 percent'' 
     for ``20 percent''.

     SEC. 1002. TREATMENT OF EXISTING WAIVERS.

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

     SEC. 1003. EXPEDITED WAIVER PROCESS.

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

     SEC. 1004. COUNTY WELFARE DEMONSTRATION PROJECT.

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

     SEC. 1005. WORK REQUIREMENTS FOR STATE OF HAWAII.

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

     SEC. 1006. REQUIREMENT THAT DATA RELATING TO THE INCIDENCE OF 
                   POVERTY IN THE UNITED STATES BE PUBLISHED AT 
                   LEAST EVERY 2 YEARS.

       (a) In General.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall, to 
     the extent feasible, produce and publish for each State, 
     county, and local unit of general purpose government for 
     which data have been compiled in the most recent census of 
     population under section 141(a) of title 13, United States 
     Code, and for each school district, data relating to the 
     incidence of poverty. Such data may be produced by means of 
     sampling, estimation, or any other method that the Secretary 
     determines will produce current, comprehensive, and reliable 
     data.
       (b) Content; Frequency.--Data under this section--
       (1) shall include--
       (A) for each school district, the number of children age 5 
     to 17, inclusive, in families below the poverty level; and
       (B) for each State and county referred to in subsection 
     (a), the number of individuals age 65 or older below the 
     poverty level; and
       (2) shall be published--
       (A) for each State, county, and local unit of general 
     purpose government referred to in subsection (a), in 1997 and 
     at least every 2nd year thereafter; and
       (B) for each school district, in 1999 and at least every 
     2nd year thereafter.
       (c) Authority To Aggregate.--
       (1) In general.--If reliable data could not otherwise be 
     produced, the Secretary may, for purposes of subsection 
     (b)(1)(A), aggregate school districts, but only to the extent 
     necessary to achieve reliability.
       (2) Information relating to use of authority.--Any data 
     produced under this subsection shall be appropriately 
     identified and shall be accompanied by a detailed explanation 
     as to how and why aggregation was used (including the 
     measures taken to minimize any such aggregation).
       (d) Report To Be Submitted Whenever Data Is Not Timely 
     Published.--If the Secretary is unable to produce and publish 
     the data required under this section for any State, county, 
     local unit of general purpose government, or school district 
     in any year specified in subsection (b)(2), a report shall be 
     submitted by the Secretary to the President of the Senate and 
     the Speaker of the House of Representatives, not later than 
     90 days before the start of the following year, enumerating 
     each government or school district excluded and giving the 
     reasons for the exclusion.
       (e) Criteria Relating to Poverty.--In carrying out this 
     section, the Secretary shall use the same criteria relating 
     to poverty as were used in the most recent census of 
     population under section 141(a) of title 13, United States 
     Code (subject to such periodic adjustments as may be 
     necessary to compensate for inflation and other similar 
     factors).
       (f) Consultation.--The Secretary shall consult with the 
     Secretary of Education in carrying out the requirements of 
     this section relating to school districts.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $1,500,000 for 
     each of fiscal years 1997 through 2001.

[[Page S8222]]

     SEC. 1007. STUDY BY THE CENSUS BUREAU.

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

     SEC. 1008. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
                   TECHNICAL AND CONFORMING AMENDMENTS.

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

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